LETTERS TO SHAREHOLDERS
|
3
|
||
EXPENSE EXAMPLES
|
5
|
||
INVESTMENT HIGHLIGHTS
|
7
|
||
SCHEDULES OF INVESTMENTS
|
12
|
||
SCHEDULE OF WRITTEN OPTIONS
|
15
|
||
STATEMENTS OF ASSETS AND LIABILITIES
|
21
|
||
STATEMENTS OF OPERATIONS
|
22
|
||
STATEMENTS OF CHANGES IN NET ASSETS
|
23
|
||
FINANCIAL HIGHLIGHTS
|
25
|
||
NOTES TO FINANCIAL STATEMENTS
|
28
|
||
BASIS FOR TRUSTEES’ APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
|
39
|
||
NOTICE OF PRIVACY POLICY & PRACTICES
|
45
|
||
ADDITIONAL INFORMATION
|
46
|
Beginning
|
Ending
|
Expenses Paid
|
|
Account Value
|
Account Value
|
During Period(1)(2)
|
|
Institutional Class
|
|||
Actual
|
$1,000.00
|
$1,066.00
|
$3.87
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,021.25
|
$3.79
|
Investor Class
|
|||
Actual
|
$1,000.00
|
$1,065.50
|
$5.16
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,020.00
|
$5.05
|
(1)
|
The period is June 1, 2019 – November 30, 2019.
|
(2)
|
Expenses for the Institutional Class and Investor Class are equal to the annualized expense ratio of 0.75% and 1.00%, respectively, multiplied by the average account value over the period, multiplied by
183/366.
|
Beginning
|
Ending
|
Expenses Paid
|
|
Account Value
|
Account Value
|
During Period(1)(2)
|
|
Institutional Class
|
|||
Actual
|
$1,000.00
|
$1,016.20
|
$2.77
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.25
|
$2.78
|
(1)
|
The period is June 1, 2019 – November 30, 2019.
|
(2)
|
Expenses for the Institutional Class are equal to the annualized expense ratio of 0.55%, multiplied by the average account value over the period, multiplied by 183/366.
|
*
|
Written Options (6.62)%
|
Annualized
|
|||||
Since
|
|||||
Six
|
One
|
Three
|
Five
|
Inception
|
|
Months
|
Year
|
Year
|
Year
|
(6/28/13)
|
|
M.D. Sass Equity Income Plus Fund –
|
|||||
Institutional Class
|
6.60%
|
8.56%
|
4.79%
|
2.65%
|
4.71%
|
CBOE S&P 500 BuyWrite Index
|
9.21%
|
5.77%
|
7.29%
|
7.05%
|
7.44%
|
S&P 500 Index
|
15.26%
|
16.11%
|
14.88%
|
10.98%
|
13.31%
|
|
Growth of $1,000,000 Investment |
|
|
*
|
Inception Date
|
Annualized
|
|||||
Since
|
|||||
Six
|
One
|
Three
|
Five
|
Inception
|
|
Months
|
Year
|
Year
|
Year
|
(6/28/13)
|
|
M.D. Sass Equity Income Plus Fund – Investor Class
|
6.55%
|
8.27%
|
4.50%
|
2.33%
|
4.41%
|
CBOE S&P 500 BuyWrite Index
|
9.21%
|
5.77%
|
7.29%
|
7.05%
|
7.44%
|
S&P 500 Index
|
15.26%
|
16.11%
|
14.88%
|
10.98%
|
13.31%
|
|
Growth of $10,000 Investment |
|
|
*
|
Inception Date
|
Annualized
|
|||||
Since
|
|||||
Six
|
One
|
Three
|
Five
|
Inception
|
|
Months
|
Year
|
Year
|
Year
|
(6/30/11)
|
|
M.D. Sass Short Term U.S. Government
|
|||||
Agency Income Fund
|
1.62%
|
4.09%
|
2.24%
|
1.44%
|
1.39%
|
BofA Merrill Lynch 1-3 Year U.S. Treasury Index
|
1.40%
|
4.15%
|
1.78%
|
1.30%
|
1.05%
|
|
Growth of $10,000 Investment |
|
|
*
|
Inception Date
|
Schedule of Investments
|
Shares
|
Value
|
|||||||
COMMON STOCKS* – 85.86%
|
||||||||
Aerospace & Defense – 3.25%
|
||||||||
Raytheon Co.
|
4,400
|
$
|
956,648
|
|||||
Banks – 4.60%
|
||||||||
Webster Financial Corp.
|
27,800
|
1,353,582
|
||||||
Building Products – 0.15%
|
||||||||
Fortune Brands Home & Security, Inc.
|
700
|
44,282
|
||||||
Capital Markets – 5.34%
|
||||||||
Apollo Global Management, Inc.
|
400
|
17,520
|
||||||
Northern Trust Corp.
|
14,500
|
1,554,980
|
||||||
1,572,500
|
||||||||
Chemicals – 4.09%
|
||||||||
Air Products & Chemicals, Inc.
|
5,100
|
1,205,283
|
||||||
Construction Materials – 2.60%
|
||||||||
Vulcan Materials Co.
|
5,400
|
766,098
|
||||||
Containers & Packaging – 3.48%
|
||||||||
Ball Corp.
|
15,500
|
1,023,930
|
||||||
Electrical Equipment – 3.55%
|
||||||||
Acuity Brands, Inc.
|
8,000
|
1,046,240
|
||||||
Entertainment – 3.76%
|
||||||||
Walt Disney Co.
|
7,300
|
1,106,534
|
||||||
Health Care Providers & Services – 2.93%
|
||||||||
Quest Diagnostics, Inc.
|
8,100
|
863,055
|
||||||
Hotels, Restaurants & Leisure – 6.85%
|
||||||||
Carnival Corp. (a)
|
19,200
|
865,536
|
||||||
Royal Caribbean Cruises Ltd. (a)
|
9,600
|
1,152,192
|
||||||
2,017,728
|
||||||||
Household Durables – 3.34%
|
||||||||
Lennar Corp.
|
16,500
|
984,225
|
||||||
Independent Power and Renewable Electricity Producers – 3.16%
|
||||||||
NRG Energy, Inc.
|
23,400
|
929,682
|
||||||
Insurance – 7.84%
|
||||||||
Chubb Ltd. (a)
|
6,400
|
969,472
|
||||||
MetLife, Inc.
|
26,800
|
1,337,588
|
||||||
2,307,060
|
||||||||
IT Services – 4.49%
|
||||||||
Sabre Corp.
|
58,900
|
1,321,127
|
Schedule of Investments (Continued)
|
Shares
|
Value
|
|||||||
COMMON STOCKS* – 85.86% (Continued)
|
||||||||
Media – 3.90%
|
||||||||
Comcast Corp.
|
26,000
|
$
|
1,147,900
|
|||||
Multiline Retail – 5.14%
|
||||||||
Target Corp.
|
12,100
|
1,512,621
|
||||||
Pharmaceuticals – 4.03%
|
||||||||
Pfizer, Inc.
|
30,800
|
1,186,416
|
||||||
Semiconductors & Semiconductor Equipment – 2.87%
|
||||||||
NXP Semiconductors NV (a)
|
7,300
|
843,734
|
||||||
Software – 4.47%
|
||||||||
Microsoft Corp.
|
8,700
|
1,317,006
|
||||||
Textiles, Apparel & Luxury Goods – 2.47%
|
||||||||
Gildan Activewear, Inc. (a)
|
25,000
|
727,750
|
||||||
Tobacco – 3.55%
|
||||||||
Altria Group, Inc.
|
21,000
|
1,043,700
|
||||||
TOTAL COMMON STOCKS (Cost $22,365,105)
|
25,277,101
|
|||||||
MASTER LIMITED PARTNERSHIPS* – 2.48%
|
||||||||
Oil, Gas & Consumable Fuels – 2.48%
|
||||||||
EQM Midstream Partners LP
|
31,500
|
729,855
|
||||||
TOTAL MASTER LIMITED PARTNERSHIPS (Cost $1,777,894)
|
729,855
|
|||||||
REAL ESTATE INVESTMENT TRUSTS* – 4.02%
|
||||||||
VICI Properties, Inc.
|
47,900
|
1,184,567
|
||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $989,580)
|
1,184,567
|
Notional
|
|||||||||||
Contracts
|
Value
|
||||||||||
PURCHASED OPTIONS – 0.01%
|
|||||||||||
EXCHANGE TRADED OR CENTRALLY CLEARED PUT OPTIONS
|
|||||||||||
SPDR S&P 500 ETF Trust
|
|||||||||||
Expiration: December 2019, Exercise Price: $283.00
|
150
|
$
|
4,714,650
|
3,450
|
|||||||
TOTAL PURCHASED OPTIONS (Cost $74,785)
|
3,450
|
Schedule of Investments (Continued)
|
Shares
|
Value
|
|||||||
SHORT-TERM INVESTMENTS – 13.24%
|
||||||||
First American Government Obligations Fund, Class X, 1.559% (b)
|
3,898,470
|
$
|
3,898,470
|
|||||
TOTAL SHORT-TERM INVESTMENTS (Cost $3,898,470)
|
3,898,470
|
|||||||
Total Investments (Cost $29,105,834) – 105.61%
|
31,093,443
|
|||||||
Liabilities in Excess of Other Assets – (5.61)%
|
(1,652,142
|
)
|
||||||
TOTAL NET ASSETS – 100.00%
|
$
|
29,441,301
|
*
|
All or a portion of these securities may be subject to call options written.
|
(a)
|
Foreign issued security.
|
(b)
|
Seven day yield as of November 30, 2019.
|
Schedule of Written Options
|
Notional
|
||||||||||||
Contracts
|
Amount
|
Value
|
||||||||||
EXCHANGE TRADED OR CENTRALLY CLEARED CALL OPTIONS
|
||||||||||||
Acuity Brands, Inc.
|
||||||||||||
Expiration: December 2019, Exercise Price: $120.00
|
(80
|
)
|
$
|
(1,046,240
|
)
|
$
|
(96,800
|
)
|
||||
Air Products & Chemicals, Inc.
|
||||||||||||
Expiration: December 2019, Exercise Price: $220.00
|
(51
|
)
|
(1,205,283
|
)
|
(87,720
|
)
|
||||||
Altria Group, Inc.
|
||||||||||||
Expiration: January 2020, Exercise Price: $50.00
|
(210
|
)
|
(1,043,700
|
)
|
(22,890
|
)
|
||||||
Apollo Global Management, Inc.
|
||||||||||||
Expiration: December 2019, Exercise Price: $40.00
|
(4
|
)
|
(17,520
|
)
|
(1,580
|
)
|
||||||
Ball Corp.
|
||||||||||||
Expiration: January 2020, Exercise Price: $62.50
|
(155
|
)
|
(1,023,930
|
)
|
(71,300
|
)
|
||||||
Carnival Corp. (a)
|
||||||||||||
Expiration: January 2020, Exercise Price: $47.50
|
(192
|
)
|
(865,536
|
)
|
(15,360
|
)
|
||||||
Chubb Ltd. (a)
|
||||||||||||
Expiration: January 2020, Exercise Price: $145.00
|
(64
|
)
|
(969,472
|
)
|
(48,320
|
)
|
||||||
Comcast Corp.
|
||||||||||||
Expiration: December 2019, Exercise Price: $47.50
|
(260
|
)
|
(1,147,900
|
)
|
(520
|
)
|
||||||
EQM Midstream Partners LP
|
||||||||||||
Expiration: April 2020, Exercise Price: $30.00
|
(315
|
)
|
(729,855
|
)
|
(14,175
|
)
|
||||||
Fortune Brands Home & Security, Inc.
|
||||||||||||
Expiration: December 2019, Exercise Price: $55.00
|
(7
|
)
|
(44,282
|
)
|
(5,950
|
)
|
||||||
Gildan Activewear, Inc. (a)
|
||||||||||||
Expiration: December 2019, Exercise Price: $35.00
|
(250
|
)
|
(727,750
|
)
|
(500
|
)
|
||||||
Lennar Corp.
|
||||||||||||
Expiration: January 2020, Exercise Price: $55.00
|
(165
|
)
|
(984,225
|
)
|
(95,040
|
)
|
||||||
MetLife, Inc.
|
||||||||||||
Expiration: January 2020, Exercise Price: $47.50
|
(268
|
)
|
(1,337,588
|
)
|
(83,080
|
)
|
||||||
Microsoft Corp.
|
||||||||||||
Expiration: December 2019, Exercise Price: $140.00
|
(87
|
)
|
(1,317,006
|
)
|
(104,487
|
)
|
||||||
Northern Trust Corp.
|
||||||||||||
Expiration: January 2020, Exercise Price: $100.00
|
(145
|
)
|
(1,554,980
|
)
|
(115,275
|
)
|
||||||
NRG Energy, Inc.
|
||||||||||||
Expiration: December 2019, Exercise Price: $40.00
|
(234
|
)
|
(929,682
|
)
|
(17,550
|
)
|
||||||
NXP Semiconductors NV (a)
|
||||||||||||
Expiration: January 2020, Exercise Price: $105.00
|
(73
|
)
|
(843,734
|
)
|
(88,148
|
)
|
||||||
Pfizer, Inc.
|
||||||||||||
Expiration: December 2019, Exercise Price: $40.00
|
(308
|
)
|
(1,186,416
|
)
|
(4,004
|
)
|
||||||
Quest Diagnostics, Inc.
|
||||||||||||
Expiration: January 2020, Exercise Price: $95.00
|
(81
|
)
|
(863,055
|
)
|
(90,720
|
)
|
||||||
Raytheon Co.
|
||||||||||||
Expiration: January 2020, Exercise Price: $180.00
|
(44
|
)
|
(956,648
|
)
|
(166,760
|
)
|
||||||
Royal Caribbean Cruises Ltd. (a)
|
||||||||||||
Expiration: December 2019, Exercise Price: $105.00
|
(96
|
)
|
(1,152,192
|
)
|
(147,360
|
)
|
||||||
Sabre Corp.
|
||||||||||||
Expiration: January 2020, Exercise Price: $20.00
|
(589
|
)
|
(1,321,127
|
)
|
(159,030
|
)
|
||||||
Target Corp.
|
||||||||||||
Expiration: January 2020, Exercise Price: $105.00
|
(121
|
)
|
(1,512,621
|
)
|
(250,470
|
)
|
||||||
VICI Properties, Inc.
|
||||||||||||
Expiration: December 2019, Exercise Price: $22.50
|
(479
|
)
|
(1,184,567
|
)
|
(107,775
|
)
|
||||||
Schedule of Written Options (Continued)
|
Notional
|
||||||||||||
Contracts
|
Amount
|
Value
|
||||||||||
EXCHANGE TRADED OR CENTRALLY CLEARED CALL OPTIONS (Continued)
|
||||||||||||
Vulcan Materials Co.
|
||||||||||||
Expiration: January 2020, Exercise Price: $130.00
|
(54
|
)
|
$
|
(766,098
|
)
|
$
|
(70,470
|
)
|
||||
Walt Disney Co.
|
||||||||||||
Expiration: December 2019, Exercise Price: $130.00
|
(73
|
)
|
(1,106,534
|
)
|
(160,381
|
)
|
||||||
Webster Financial Corp.
|
||||||||||||
Expiration: January 2020, Exercise Price: $50.00
|
(278
|
)
|
(1,353,582
|
)
|
(34,055
|
)
|
||||||
TOTAL WRITTEN OPTIONS (Premiums received $1,582,318)
|
$ | (2,059,720 | ) |
(a)
|
Foreign issued security.
|
Schedule of Investments
|
Principal
|
||||||||
Amount
|
Value
|
|||||||
MORTGAGE BACKED SECURITIES – 88.92%
|
||||||||
Fannie Mae Pool
|
||||||||
890156, 5.000%, 05/01/2023
|
$
|
4,818
|
$
|
4,987
|
||||
995865, 4.500%, 07/01/2024
|
72,722
|
75,937
|
||||||
AL9541, 3.500%, 12/01/2026
|
177,913
|
184,378
|
||||||
47935, 4.844% (11th District Cost of Funds Index + 1.250%), 05/01/2027 (a)
|
1,209
|
1,239
|
||||||
AL8046, 3.500%, 01/01/2028
|
706,763
|
732,409
|
||||||
AL6206, 3.500%, 06/01/2028
|
355,419
|
370,657
|
||||||
252284, 6.500%, 01/01/2029
|
71,161
|
80,561
|
||||||
323591, 6.500%, 03/01/2029
|
16,949
|
18,880
|
||||||
AL5259, 3.500%, 05/01/2029
|
265,261
|
276,045
|
||||||
BM4202, 3.500%, 12/01/2029
|
173,610
|
180,634
|
||||||
AL9858, 3.000%, 03/01/2030
|
286,024
|
294,237
|
||||||
BM1231, 3.500%, 11/01/2031
|
421,053
|
436,441
|
||||||
MA0949, 3.500%, 01/01/2032
|
110,657
|
115,540
|
||||||
555326, 5.500%, 04/01/2033
|
153,133
|
172,651
|
||||||
555531, 5.500%, 06/01/2033
|
135,310
|
151,175
|
||||||
555592, 5.500%, 07/01/2033
|
36,789
|
41,284
|
||||||
748375, 3.789% (12 Month LIBOR USD + 1.117%), 08/01/2033 (a)
|
1,542
|
1,621
|
||||||
888073, 5.500%, 02/01/2035
|
26,397
|
29,496
|
||||||
745751, 5.500%, 09/01/2035
|
33,839
|
38,145
|
||||||
FM1487, 4.000%, 09/01/2039
|
88,499
|
92,656
|
||||||
MA3027, 4.000%, 06/01/2047
|
468,882
|
492,022
|
||||||
Fannie Mae REMICS
|
||||||||
2005-62, 4.750%, 07/25/2035
|
3,782
|
3,833
|
||||||
Fannie Mae-Aces
|
||||||||
2013-M13, 2.447%, 09/25/2020 (b)
|
437,791
|
437,563
|
||||||
2011-M4, 3.726%, 06/25/2021
|
237,088
|
241,645
|
||||||
2011-M8, 2.922%, 08/25/2021
|
222,942
|
225,147
|
||||||
FHLMC-GNMA
|
||||||||
G023, 2.158% (1 Month LIBOR USD + 0.450%), 11/25/2023 (a)
|
62,830
|
63,136
|
||||||
Freddie Mac Gold Pool
|
||||||||
G1-3272, 4.500%, 08/01/2020
|
316
|
327
|
||||||
G1-1838, 6.000%, 08/01/2020
|
187
|
187
|
||||||
G1-4904, 4.500%, 12/01/2021
|
3,789
|
3,917
|
||||||
G1-3007, 5.000%, 03/01/2023
|
28,431
|
29,565
|
||||||
G1-3390, 6.000%, 01/01/2024
|
21,557
|
22,327
|
||||||
G1-4160, 6.000%, 01/01/2024
|
1,031
|
1,038
|
||||||
G1-3610, 5.500%, 02/01/2024
|
19,648
|
20,428
|
||||||
G1-3692, 5.500%, 02/01/2024
|
10,719
|
11,108
|
||||||
J1-2635, 4.000%, 07/01/2025
|
48,907
|
51,063
|
||||||
G3-0289, 7.000%, 09/01/2025
|
73,193
|
75,742
|
||||||
J1-3273, 3.500%, 10/01/2025
|
78,399
|
81,288
|
||||||
G1-4350, 4.000%, 12/01/2026
|
78,165
|
81,825
|
||||||
G1-4441, 4.000%, 03/01/2027
|
184,664
|
194,482
|
Schedule of Investments (Continued)
|
Principal
|
||||||||
Amount
|
Value
|
|||||||
MORTGAGE BACKED SECURITIES – 88.92% (Continued)
|
||||||||
Freddie Mac Gold Pool (Continued)
|
||||||||
G1-6406, 3.000%, 01/01/2028
|
$
|
195,500
|
$
|
201,259
|
||||
G1-8601, 3.000%, 05/01/2031
|
458,744
|
472,237
|
||||||
G1-8702, 3.500%, 08/01/2033
|
157,251
|
163,259
|
||||||
G0-1584, 5.000%, 08/01/2033
|
66,146
|
73,119
|
||||||
G0-4913, 5.000%, 03/01/2038
|
60,564
|
66,960
|
||||||
H0-9207, 6.500%, 08/01/2038
|
23,099
|
26,167
|
||||||
Freddie Mac Multifamily Structured Pass Through Certificates
|
||||||||
K-714, 0.793%, 10/25/2020 (b)(c)
|
10,708,586
|
29,514
|
||||||
Q-001, 1.701%, 04/25/2021
|
260,035
|
259,118
|
||||||
K-J18, 2.455%, 03/25/2022
|
156,839
|
157,989
|
||||||
K-720, 0.640%, 06/25/2022 (b)(c)
|
9,156,901
|
98,473
|
||||||
K-023, 1.368%, 08/25/2022 (b)(c)
|
4,439,012
|
128,881
|
||||||
KI01, 1.945% (1 Month LIBOR USD + 0.160%), 09/25/2022 (a)
|
102,038
|
101,901
|
||||||
K-724, 0.382%, 11/25/2023 (b)(c)
|
4,972,991
|
47,517
|
||||||
K-J27, 2.092%, 07/25/2024
|
150,000
|
149,871
|
||||||
K-057, 1.325%, 07/25/2026 (b)(c)
|
2,669,612
|
172,902
|
||||||
Q-004, 2.957%, 01/25/2046 (b)
|
726,995
|
732,270
|
||||||
Q-007, 2.984%, 10/25/2047 (b)
|
178,041
|
181,667
|
||||||
Freddie Mac Pool
|
||||||||
ZS-8598, 3.000%, 02/01/2031
|
190,038
|
195,525
|
||||||
ZS-8686, 3.000%, 02/01/2033
|
336,332
|
345,442
|
||||||
RB-5012, 3.500%, 10/01/2039
|
99,362
|
102,998
|
||||||
Freddie Mac REMICS
|
||||||||
3414, 4.000%, 12/15/2019
|
0
|
0
|
||||||
3033, 4.500%, 09/15/2020
|
993
|
996
|
||||||
2649, 3.500%, 07/15/2023
|
6,696
|
6,714
|
||||||
2824, 5.000%, 07/15/2024
|
3,365
|
3,525
|
||||||
3784, 4.000%, 01/15/2026
|
21,770
|
22,428
|
||||||
2344, 6.500%, 08/15/2031
|
18,581
|
21,878
|
||||||
Freddie Mac Structured Pass-Through Certificates
|
||||||||
2017-SR01, 2.750%, 11/25/2022
|
250,000
|
254,012
|
||||||
FRESB Mortgage Trust
|
||||||||
2015-SB2, 2.086% (1 Month LIBOR USD + 2.086%), 07/25/2035 (a)
|
422,202
|
421,651
|
||||||
2015-SB7, 2.370% (1 Month LIBOR USD + 2.370%), 09/25/2035 (a)
|
502,463
|
502,673
|
||||||
2016-SB13, 2.060% (1 Month LIBOR USD + 2.060%), 01/25/2036 (a)
|
359,238
|
359,275
|
||||||
2016-SB16, 2.130% (1 Month LIBOR USD + 2.130%), 05/25/2036 (a)
|
372,631
|
373,243
|
||||||
2019-SB60, 3.070% (1 Month LIBOR USD + 3.070%), 01/25/2039 (b)
|
498,789
|
510,788
|
||||||
2015-SB3, 2.012% (1 Month LIBOR USD + 2.012%), 08/25/2042 (a)
|
36,236
|
36,199
|
||||||
Ginnie Mae I Pool
|
||||||||
782618X, 4.500%, 04/15/2024
|
179,959
|
185,607
|
||||||
741854X, 4.000%, 05/15/2025
|
96,052
|
100,086
|
Schedule of Investments (Continued)
|
Principal
|
||||||||
Amount
|
Value
|
|||||||
MORTGAGE BACKED SECURITIES – 88.92% (Continued)
|
||||||||
Government National Mortgage Association
|
||||||||
2013-101, 0.514%, 05/16/2035
|
$
|
208,387
|
$
|
206,081
|
||||
2013-55, 1.579%, 12/16/2042
|
363,040
|
358,931
|
||||||
2015-97, 2.400%, 04/16/2043
|
516,075
|
516,186
|
||||||
2011-6, 3.474%, 10/16/2044 (b)
|
30,850
|
30,832
|
||||||
2013-107, 0.422%, 11/16/2047 (b)(c)
|
4,144,043
|
66,559
|
||||||
2013-15, 0.584%, 08/16/2051 (b)(c)
|
5,204,610
|
204,221
|
||||||
2013-07, 0.351%, 05/16/2053 (b)(c)
|
7,267,035
|
160,273
|
||||||
2013-01, 0.656%, 02/16/2054 (b)(c)
|
4,577,938
|
148,756
|
||||||
2013-105, 0.454%, 06/16/2054 (b)(c)
|
3,435,897
|
53,915
|
||||||
2013-17, 0.750%, 06/16/2054 (b)(c)
|
6,197,043
|
177,920
|
||||||
2013-40, 0.764%, 06/16/2054 (b)(c)
|
4,141,692
|
150,211
|
||||||
2013-101, 0.541%, 10/16/2054 (b)(c)
|
4,782,144
|
130,990
|
||||||
2013-156, 0.707%, 06/16/2055 (b)(c)
|
5,202,149
|
158,131
|
||||||
2014-155, 1.123%, 08/16/2055 (b)(c)
|
1,501,850
|
81,588
|
||||||
2014-01, 0.349%, 09/16/2055 (b)(c)
|
6,463,868
|
140,576
|
||||||
2014-54, 0.435%, 09/16/2055 (b)(c)
|
5,327,742
|
146,294
|
||||||
2014-73, 0.610%, 04/16/2056 (b)(c)
|
5,495,168
|
170,492
|
||||||
2014-120, 0.690%, 04/16/2056 (b)(c)
|
2,322,967
|
80,731
|
||||||
2014-138, 0.741%, 04/16/2056 (b)(c)
|
1,870,202
|
89,357
|
||||||
2015-130, 0.863%, 07/16/2057 (b)(c)
|
2,788,466
|
127,728
|
||||||
Seasoned Credit Risk Transfer Trust Series
|
||||||||
2018-3, 3.500%, 08/27/2057
|
126,700
|
131,747
|
||||||
TOTAL MORTGAGE BACKED SECURITIES (Cost $17,337,586)
|
15,173,279
|
|||||||
U.S. GOVERNMENT NOTES/BONDS – 9.00%
|
||||||||
United States Treasury Inflation Indexed Bonds
|
||||||||
0.125%, 04/15/2020
|
361,815
|
360,803
|
||||||
0.625%, 04/15/2023
|
1,064,701
|
1,075,166
|
||||||
United States Treasury Notes/Bonds
|
||||||||
2.000%, 01/31/2020
|
100,000
|
100,054
|
||||||
TOTAL U.S. GOVERNMENT NOTES/BONDS (Cost $1,534,894)
|
1,536,023
|
Schedule of Investments (Continued)
|
Shares
|
Value
|
|||||||
SHORT-TERM INVESTMENTS – 2.31%
|
||||||||
First American U.S. Treasury Money Market Fund, Class Z, 1.494% (d)
|
394,672
|
$
|
394,672
|
|||||
TOTAL SHORT-TERM INVESTMENTS (Cost $394,672)
|
394,672
|
|||||||
Total Investments (Cost $19,267,152) – 100.23%
|
17,103,974
|
|||||||
Liabilities in Excess of Other Assets – (0.23)%
|
(38,926
|
)
|
||||||
TOTAL NET ASSETS – 100.00%
|
$
|
17,065,048
|
(a)
|
Variable rate security; the rate shown represents the rate at November 30, 2019.
|
(b)
|
Variable rate security; the rate shown represents the rate at November 30, 2019. The coupon is based on an underlying pool of loans.
|
(c)
|
Represents an interest-only security that entitles holders to receive only interest payments on underlying mortgages.
|
(d)
|
Seven day yield as of November 30, 2019.
|
Statements of Assets and Liabilities
|
Short Term
|
||||||||
Equity
|
U.S. Government
|
|||||||
Income
|
Agency
|
|||||||
Plus Fund
|
Income Fund
|
|||||||
ASSETS
|
||||||||
Investments, at value (cost $29,105,834 and $19,267,152, respectively)
|
$
|
31,093,443
|
$
|
17,103,974
|
||||
Cash
|
1,326,774
|
—
|
||||||
Dividend receivable
|
54,354
|
—
|
||||||
Interest receivable
|
3,167
|
89,826
|
||||||
Receivable for fund shares sold
|
112,498
|
—
|
||||||
Receivable from Adviser
|
3,298
|
7,919
|
||||||
Other assets
|
17,140
|
12,816
|
||||||
TOTAL ASSETS
|
32,610,674
|
17,214,535
|
||||||
LIABILITIES
|
||||||||
Written options, at value (premiums received of $1,582,318 and $—, respectively)
|
2,059,720
|
—
|
||||||
Payable for investments purchased
|
1,044,643
|
100,741
|
||||||
Payable to affiliates
|
39,951
|
30,150
|
||||||
Payable for distribution (Rule 12b-1) fees
|
1,334
|
—
|
||||||
Payable for shareholder servicing fees
|
2,054
|
—
|
||||||
Accrued expenses and other liabilities
|
21,671
|
18,596
|
||||||
TOTAL LIABILITIES
|
3,169,373
|
149,487
|
||||||
NET ASSETS
|
$
|
29,441,301
|
$
|
17,065,048
|
||||
Net Assets Consist Of:
|
||||||||
Paid-in capital
|
$
|
35,482,403
|
$
|
24,007,459
|
||||
Accumulated deficit
|
(6,041,102
|
)
|
(6,942,411
|
)
|
||||
Net Assets
|
$
|
29,441,301
|
$
|
17,065,048
|
||||
Institutional Class Shares
|
||||||||
Net assets
|
29,297,525
|
17,065,048
|
||||||
Shares of beneficial interest outstanding
|
||||||||
(unlimited number of shares authorized, $0.001 par value)
|
2,588,284
|
1,843,804
|
||||||
Net asset value, offering price and redemption price per share
|
$
|
11.32
|
$
|
9.26
|
||||
Investor Class Shares
|
||||||||
Net assets
|
143,776
|
N/A
|
||||||
Shares of beneficial interest outstanding
|
||||||||
(unlimited number of shares authorized, $0.001 par value)
|
12,733
|
N/A
|
||||||
Net asset value, offering price and redemption price per share
|
$
|
11.29
|
$
|
N/A
|
Statements of Operations
|
Short Term
|
||||||||
Equity
|
U.S. Government
|
|||||||
Income
|
Agency
|
|||||||
Plus Fund
|
Income Fund
|
|||||||
INVESTMENT INCOME
|
||||||||
Dividend income
|
$
|
296,414
|
(1)
|
$
|
—
|
|||
Interest income (net of amortization and paydown gains and losses)
|
12,507
|
373,693
|
||||||
TOTAL INVESTMENT INCOME
|
308,921
|
373,693
|
||||||
EXPENSES
|
||||||||
Management fees
|
118,152
|
25,749
|
||||||
Administration and accounting fees
|
48,217
|
27,459
|
||||||
Transfer agent fees and expenses
|
24,971
|
10,756
|
||||||
Federal and state registration fees
|
16,120
|
10,349
|
||||||
Audit and tax fees
|
10,056
|
9,239
|
||||||
Legal fees
|
8,498
|
8,498
|
||||||
Chief Compliance Officer fees
|
6,039
|
6,039
|
||||||
Custody fees
|
4,525
|
4,312
|
||||||
Trustees’ fees
|
4,430
|
4,430
|
||||||
Reports to shareholders
|
2,867
|
967
|
||||||
Pricing expenses
|
1,201
|
7,123
|
||||||
Distribution (Rule 12b-1) fees – Investor Class
|
256
|
—
|
||||||
Other expenses
|
3,589
|
3,152
|
||||||
TOTAL EXPENSES
|
248,921
|
118,073
|
||||||
Less waivers and reimbursement by Adviser (Note 4)
|
(130,513
|
)
|
(70,866
|
)
|
||||
NET EXPENSES
|
118,408
|
47,207
|
||||||
NET INVESTMENT INCOME
|
190,513
|
326,486
|
||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
|
||||||||
Net realized gain (loss) from:
|
||||||||
Investments and purchased options
|
1,709,023
|
(14,759
|
)
|
|||||
Written options
|
(93,270
|
)
|
—
|
|||||
Change in net unrealized appreciation (depreciation) on:
|
||||||||
Investments and purchased options
|
1,349,283
|
(46,148
|
)
|
|||||
Written options
|
(1,067,945
|
)
|
—
|
|||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
|
1,897,091
|
(60,907
|
)
|
|||||
NET INCREASE IN NET ASSETS FROM OPERATIONS
|
$
|
2,087,604
|
$
|
265,579
|
(1)
|
Net of $1,416 in foreign withholding tax.
|
Statements of Changes in Net Assets
|
Six Months Ended
|
||||||||
November 30, 2019
|
Year Ended
|
|||||||
(Unaudited)
|
May 31, 2019
|
|||||||
FROM OPERATIONS
|
||||||||
Net investment income
|
$
|
190,513
|
$
|
764,079
|
||||
Net realized gain (loss) from:
|
||||||||
Investments and purchased options
|
1,709,023
|
858,614
|
||||||
Written options
|
(93,270
|
)
|
111,402
|
|||||
Change in net unrealized appreciation (depreciation) on:
|
||||||||
Investments and purchased options
|
1,349,283
|
(789,831
|
)
|
|||||
Written options
|
(1,067,945
|
)
|
62,456
|
|||||
Net increase in net assets from operations
|
2,087,604
|
1,006,720
|
||||||
FROM DISTRIBUTIONS
|
||||||||
Net dividends and distributions – Institutional Class
|
(361,014
|
)
|
(1,036,314
|
)
|
||||
Net dividends and distributions – Investor Class
|
(2,787
|
)
|
(8,297
|
)
|
||||
Net decrease in net assets resulting from dividends and distributions paid
|
(363,801
|
)
|
(1,044,611
|
)
|
||||
FROM CAPITAL SHARE TRANSACTIONS
|
||||||||
Proceeds from shares sold – Institutional Class
|
778,734
|
2,928,349
|
||||||
Proceeds from shares sold – Investor Class
|
—
|
400
|
||||||
Shares issued in reinvestment of distributions – Institutional Class
|
357,545
|
977,399
|
||||||
Shares issued in reinvestment of distributions – Investor Class
|
2,582
|
8,060
|
||||||
Payments for shares redeemed – Institutional Class
|
(7,841,566
|
)
|
(24,759,105
|
)
|
||||
Payments for shares redeemed – Investor Class
|
(148,315
|
)
|
(560,581
|
)
|
||||
Net decrease in net assets from capital share transactions
|
(6,851,020
|
)
|
(21,405,478
|
)
|
||||
TOTAL DECREASE IN NET ASSETS
|
(5,127,217
|
)
|
(21,443,369
|
)
|
||||
NET ASSETS:
|
||||||||
Beginning of period
|
34,568,518
|
56,011,887
|
||||||
End of period
|
$
|
29,441,301
|
$
|
34,568,518
|
Statements of Changes in Net Assets
|
Six Months Ended
|
||||||||
November 30, 2019
|
Year Ended
|
|||||||
(Unaudited)
|
May 31, 2019
|
|||||||
FROM OPERATIONS
|
||||||||
Net investment income
|
$
|
326,486
|
$
|
606,470
|
||||
Net realized gain (loss) from investments
|
(14,759
|
)
|
5,547
|
|||||
Change in net unrealized depreciation on investments
|
(46,148
|
)
|
(123,497
|
)
|
||||
Net increase in net assets from operations
|
265,579
|
488,520
|
||||||
FROM DISTRIBUTIONS
|
||||||||
Net dividends and distributions
|
(344,191
|
)
|
(646,655
|
)
|
||||
Net decrease in net assets resulting from dividends and distributions paid
|
(344,191
|
)
|
(646,655
|
)
|
||||
FROM CAPITAL SHARE TRANSACTIONS
|
||||||||
Proceeds from shares sold
|
2,083,556
|
403,802
|
||||||
Shares issued in reinvestment of distributions
|
330,931
|
581,346
|
||||||
Payments for shares redeemed
|
(2,688,469
|
)
|
(6,838,074
|
)
|
||||
Net decrease in net assets from capital share transactions
|
(273,982
|
)
|
(5,852,926
|
)
|
||||
TOTAL DECREASE IN NET ASSETS
|
(352,594
|
)
|
(6,011,061
|
)
|
||||
NET ASSETS:
|
||||||||
Beginning of period
|
17,417,642
|
23,428,703
|
||||||
End of period
|
$
|
17,065,048
|
$
|
17,417,642
|
Financial Highlights
|
Six Months
|
||||||||||||||||||||||||
Ended
|
||||||||||||||||||||||||
November 30,
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
|||||||||||||||||||
2019
|
May 31,
|
May 31,
|
May 31,
|
May 31,
|
May 31,
|
|||||||||||||||||||
(Unaudited)
|
2019
|
2018
|
2017
|
2016
|
2015
|
|||||||||||||||||||
Net Asset Value,
|
||||||||||||||||||||||||
Beginning of Year/Period
|
$
|
10.73
|
$
|
10.70
|
$
|
10.72
|
$
|
10.45
|
$
|
11.54
|
$
|
11.15
|
||||||||||||
Income (loss) from
|
||||||||||||||||||||||||
investment operations:
|
||||||||||||||||||||||||
Net investment income(1)(2)
|
0.07
|
0.18
|
0.11
|
0.14
|
0.16
|
0.22
|
||||||||||||||||||
Net realized and unrealized
|
||||||||||||||||||||||||
gain (loss) on investments(6)
|
0.64
|
0.09
|
(0.01
|
)
|
0.31
|
(0.58
|
)
|
0.48
|
||||||||||||||||
Total from investment operations
|
0.71
|
0.27
|
0.10
|
0.45
|
(0.42
|
)
|
0.70
|
|||||||||||||||||
Less distributions paid:
|
||||||||||||||||||||||||
From net investment income
|
(0.12
|
)
|
(0.24
|
)
|
(0.12
|
)
|
(0.18
|
)
|
(0.22
|
)
|
(0.22
|
)
|
||||||||||||
From realized gain
|
—
|
—
|
—
|
—
|
(0.45
|
)
|
(0.09
|
)
|
||||||||||||||||
Total distributions paid
|
(0.12
|
)
|
(0.24
|
)
|
(0.12
|
)
|
(0.18
|
)
|
(0.67
|
)
|
(0.31
|
)
|
||||||||||||
Net Asset Value, End of Year/Period
|
$
|
11.32
|
$
|
10.73
|
$
|
10.70
|
$
|
10.72
|
$
|
10.45
|
$
|
11.54
|
||||||||||||
Total Return(3)(5)
|
6.60
|
%
|
2.55
|
%
|
0.95
|
%
|
4.29
|
%
|
-3.52
|
%
|
6.37
|
%
|
||||||||||||
Supplemental Data and Ratios:
|
||||||||||||||||||||||||
Net assets at end of year/period (000’s)
|
$
|
29,297
|
$
|
34,289
|
$
|
55,188
|
$
|
64,908
|
$
|
132,523
|
$
|
159,725
|
||||||||||||
Ratio of expenses to average net assets(4)
|
||||||||||||||||||||||||
Before waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
1.58
|
%
|
1.35
|
%
|
1.17
|
%
|
1.09
|
%
|
1.03
|
%
|
1.05
|
%
|
||||||||||||
After waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
0.75
|
%
|
0.75
|
%
|
0.75
|
%
|
0.75
|
%
|
0.75
|
%
|
0.75
|
%
|
||||||||||||
Ratio of net investment income
|
||||||||||||||||||||||||
to average net assets(4)
|
||||||||||||||||||||||||
Before waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
0.38
|
%
|
1.11
|
%
|
0.57
|
%
|
0.95
|
%
|
1.95
|
%
|
1.61
|
%
|
||||||||||||
After waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
1.21
|
%
|
1.71
|
%
|
0.99
|
%
|
1.29
|
%
|
2.23
|
%
|
1.91
|
%
|
||||||||||||
Portfolio turnover rate(3)
|
17.72
|
%
|
71.47
|
%
|
93.98
|
%
|
77.33
|
%
|
63.55
|
%
|
87.20
|
%
|
(1)
|
Per share net investment income has been calculated using the daily average shares outstanding method.
|
(2)
|
Net investment income per share is calculated using the ending balances prior to consideration or adjustment for permanent book to tax differences.
|
(3)
|
Not annualized for periods less than one year.
|
(4)
|
Annualized for periods less than one year.
|
(5)
|
Total return in the table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
|
(6)
|
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 Statements of Operations due to share transactions for the period.
|
Financial Highlights
|
Six Months
|
||||||||||||||||||||||||
Ended
|
||||||||||||||||||||||||
November 30,
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
|||||||||||||||||||
2019
|
May 31,
|
May 31,
|
May 31,
|
May 31,
|
May 31,
|
|||||||||||||||||||
(Unaudited)
|
2019
|
2018
|
2017
|
2016
|
2015
|
|||||||||||||||||||
Net Asset Value,
|
||||||||||||||||||||||||
Beginning of Year/Period
|
$
|
10.71
|
$
|
10.68
|
$
|
10.69
|
$
|
10.43
|
$
|
11.53
|
$
|
11.14
|
||||||||||||
Income (loss) from
|
||||||||||||||||||||||||
investment operations:
|
||||||||||||||||||||||||
Net investment income(1)(2)
|
0.05
|
0.15
|
0.08
|
0.11
|
0.12
|
0.18
|
||||||||||||||||||
Net realized and unrealized
|
||||||||||||||||||||||||
gain (loss) on investments(8)
|
0.64
|
0.09
|
(0.00
|
)(6)
|
0.30
|
(0.58
|
)
|
0.49
|
||||||||||||||||
Total from investment operations
|
0.69
|
0.23
|
0.08
|
0.41
|
(0.46
|
)
|
0.67
|
|||||||||||||||||
Less distributions paid:
|
||||||||||||||||||||||||
From net investment income
|
(0.11
|
)
|
(0.21
|
)
|
(0.09
|
)
|
(0.15
|
)
|
(0.19
|
)
|
(0.19
|
)
|
||||||||||||
From realized gain
|
—
|
—
|
—
|
—
|
(0.45
|
)
|
(0.09
|
)
|
||||||||||||||||
Total distributions paid
|
(0.11
|
)
|
(0.21
|
)
|
(0.09
|
)
|
(0.15
|
)
|
(0.64
|
)
|
(0.28
|
)
|
||||||||||||
Net Asset Value, End of Year/Period
|
$
|
11.29
|
$
|
10.71
|
$
|
10.68
|
$
|
10.69
|
$
|
10.43
|
$
|
11.53
|
||||||||||||
Total Return(3)(5)
|
6.55
|
%
|
2.15
|
%
|
0.71
|
%
|
3.92
|
%
|
-3.88
|
%
|
6.09
|
%
|
||||||||||||
Supplemental Data and Ratios:
|
||||||||||||||||||||||||
Net assets at end of year/period (000’s)
|
$
|
144
|
$
|
280
|
$
|
824
|
$
|
1,114
|
$
|
2,348
|
$
|
2,330
|
||||||||||||
Ratio of expenses to average net assets(4)
|
||||||||||||||||||||||||
Before waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
1.81
|
%
|
1.59
|
%
|
1.42
|
%
|
1.44
|
%
|
1.38
|
%
|
1.40
|
%
|
||||||||||||
After waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
1.00
|
%(7)
|
1.00
|
%(7)
|
1.00
|
%(7)
|
1.10
|
%
|
1.10
|
%
|
1.10
|
%
|
||||||||||||
Ratio of net investment income
|
||||||||||||||||||||||||
to average net assets(4)
|
||||||||||||||||||||||||
Before waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
0.14
|
%
|
0.84
|
%
|
0.33
|
%
|
0.69
|
%
|
1.60
|
%
|
1.31
|
%
|
||||||||||||
After waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
0.95
|
%
|
1.43
|
%
|
0.75
|
%
|
1.03
|
%
|
1.88
|
%
|
1.61
|
%
|
||||||||||||
Portfolio turnover rate(3)
|
17.72
|
%
|
71.47
|
%
|
93.98
|
%
|
77.33
|
%
|
63.55
|
%
|
87.20
|
%
|
(1)
|
Per share net investment income has been calculated using the daily average shares outstanding method.
|
(2)
|
Net investment income per share is calculated using the ending balances prior to consideration or adjustment for permanent book to tax differences.
|
(3)
|
Not annualized for periods less than one year.
|
(4)
|
Annualized for periods less than one year.
|
(5)
|
Total return in the table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends. Excludes the effect of applicable sales charges.
|
(6)
|
Less than 0.05 cents per share.
|
(7)
|
Reflects expense cap of 0.75% plus Rule 12b-1 fees of 0.25%. The Fund did not accrue 0.10% allowable under the shareholder servicing plan for the years ended May 31, 2018 or May 31, 2019 or the six months ended
November 30, 2019.
|
(8)
|
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 Statements of Operations due to share transactions for the period.
|
Financial Highlights
|
Six Months
|
||||||||||||||||||||||||
Ended
|
||||||||||||||||||||||||
November 30,
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
|||||||||||||||||||
2019
|
May 31,
|
May 31,
|
May 31,
|
May 31,
|
May 31,
|
|||||||||||||||||||
(Unaudited)
|
2019
|
2018
|
2017
|
2016
|
2015
|
|||||||||||||||||||
Net Asset Value,
|
||||||||||||||||||||||||
Beginning of Year/Period
|
$
|
9.30
|
$
|
9.36
|
$
|
9.51
|
$
|
9.75
|
$
|
9.91
|
$
|
10.06
|
||||||||||||
Income (loss) from
|
||||||||||||||||||||||||
investment operations:
|
||||||||||||||||||||||||
Net investment income(1)(2)
|
0.18
|
0.29
|
0.26
|
0.25
|
0.15
|
0.15
|
||||||||||||||||||
Net realized and unrealized
|
||||||||||||||||||||||||
loss on investments
|
(0.03
|
)
|
(0.05
|
)
|
(0.11
|
)
|
(0.19
|
)
|
(0.11
|
)
|
(0.08
|
)
|
||||||||||||
Total from investment operations
|
0.15
|
0.24
|
0.15
|
0.06
|
0.04
|
0.07
|
||||||||||||||||||
Less distributions paid:
|
||||||||||||||||||||||||
From net investment income
|
(0.19
|
)
|
(0.30
|
)
|
(0.30
|
)
|
(0.30
|
)
|
(0.20
|
)
|
(0.22
|
)
|
||||||||||||
Total distributions paid
|
(0.19
|
)
|
(0.30
|
)
|
(0.30
|
)
|
(0.30
|
)
|
(0.20
|
)
|
(0.22
|
)
|
||||||||||||
Net Asset Value, End of Year/Period
|
$
|
9.26
|
$
|
9.30
|
$
|
9.36
|
$
|
9.51
|
$
|
9.75
|
$
|
9.91
|
||||||||||||
Total Return(3)(4)
|
1.62
|
%
|
2.66
|
%
|
1.60
|
%
|
0.64
|
%
|
0.35
|
%
|
0.75
|
%
|
||||||||||||
Supplemental Data and Ratios:
|
||||||||||||||||||||||||
Net assets at end of year/period (000’s)
|
$
|
17,065
|
$
|
17,418
|
$
|
23,429
|
$
|
36,394
|
$
|
97,164
|
$
|
83,678
|
||||||||||||
Ratio of expenses to average net assets(5)
|
||||||||||||||||||||||||
Before waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
1.38
|
%
|
1.24
|
%
|
0.90
|
%
|
0.64
|
%
|
0.59
|
%
|
0.65
|
%
|
||||||||||||
After waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
0.55
|
%
|
0.55
|
%
|
0.55
|
%
|
0.55
|
%
|
0.58
|
%
|
0.66
|
%
|
||||||||||||
Ratio of net investment income
|
||||||||||||||||||||||||
to average net assets(5)
|
||||||||||||||||||||||||
Before waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
2.98
|
%
|
2.42
|
%
|
2.36
|
%
|
2.50
|
%
|
1.50
|
%
|
1.52
|
%
|
||||||||||||
After waivers and
|
||||||||||||||||||||||||
reimbursements of expenses
|
3.81
|
%
|
3.11
|
%
|
2.71
|
%
|
2.59
|
%
|
1.51
|
%
|
1.51
|
%
|
||||||||||||
Portfolio turnover rate(4)
|
20.84
|
%
|
15.24
|
%
|
98.95
|
%
|
164.31
|
%
|
182.08
|
%
|
99.63
|
%
|
(1)
|
Per share net investment income has been calculated using the daily average shares outstanding method.
|
(2)
|
Net investment income per share is calculated using the ending balances prior to consideration or adjustment for permanent book to tax differences.
|
(3)
|
Total return in the table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
|
(4)
|
Not annualized for periods less than one year.
|
(5)
|
Annualized for periods less than one year.
|
(1)
|
Organization
|
Trust for Professional Managers (the “Trust”) was organized as a Delaware statutory trust under a Declaration of Trust dated May 29, 2001. The Trust is registered under the Investment Company Act of 1940, as
amended (the “1940 Act”), as an open-end management investment company. The M.D. Sass Funds (the “Funds”) each represent a distinct diversified series with their own investment objectives and policies within the Trust. The investment
objective of the M.D. Sass Short Term U.S. Government Agency Income Fund (the “Short Term U.S. Government Agency Income Fund”) is to achieve a high and stable rate of total return, when and as opportunities are available in the context of
preserving capital in adverse markets. The investment objective of the M.D. Sass Equity Income Plus Fund (the “Equity Income Plus Fund”) is to generate income as well as capital appreciation, while emphasizing downside protection. The Trust
may issue an unlimited number of shares of beneficial interest at $0.001 par value. The assets of the Funds are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Short Term U.S. Government Agency
Income Fund currently offers one class of shares, the Institutional Class. Effective February 20, 2014, the Short Term U.S. Government Agency Income Fund ceased offering its StoneCastle Treasurer Class. Effective September 1, 2015, the
Short Term U.S. Government Agency Income Fund converted its Retail Class shares to Institutional Class shares and ceased offering its Retail Class. The Equity Income Plus Fund currently offers two classes of shares, the Institutional Class
and the Investor Class. Effective February 29, 2016, the Equity Income Plus Fund converted its Class C shares to Retail Class shares and ceased offering its Class C shares, and the Retail Class was renamed to the Investor Class. The Investor
Class shares are subject to a 0.25% distribution (Rule 12b-1) fee and a shareholder servicing fee not to exceed 0.10%. Each class of shares in both Funds have identical rights and privileges except with respect to the Rule 12b-1 and
shareholder servicing fees and voting rights on matters affecting a single class of shares. The Short Term U.S. Government Agency Income Fund’s registration statement became effective on June 22, 2011. The Institutional Class shares
commenced operations on June 30, 2011. The Equity Income Plus Fund’s registration statement became effective on June 28, 2013 at which time the Institutional and Investor Classes commenced operations. Costs incurred by the Funds in
connection with the organization, registration and the initial public offering of shares were paid by M.D. Sass Investors Services, Inc. and M.D. Sass, LLC (the “Advisers”), investment advisers to the Short Term U.S. Government Agency Income
Fund and Equity Income Plus Fund, respectively. The Funds are each an investment company and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard
Codification Topic 946 “Financial Services — Investment Companies”.
|
|
(2)
|
Significant Accounting Policies
|
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. These policies are in conformity with generally accepted
accounting principles in the United States of America (“GAAP”).
|
(a)
|
Investment Valuation
|
Each security owned by the Funds that is listed on a securities exchange is valued at its last sale price on that exchange on the date as of which assets are valued. When the security is listed on more than
one exchange, the Funds will use the price of the exchange that the Funds generally consider to be the principal exchange on which the security is traded.
|
|
Fund securities listed on the NASDAQ Stock Market, LLC (“NASDAQ”) will be valued at the NASDAQ Official Closing Price (“NOCP”), which may not necessarily represent the last sale price. If the NOCP is not
available, such securities shall be valued at the last sale price on the day of valuation. If there has been no sale on such exchange or on NASDAQ on such day, the security is valued at the mean between the bid and asked prices on such day
or will be valued at the later sale price on the composite market (defined as a consolidation of the trade information provided by national securities and foreign exchanges and over-the-counter markets as published by a pricing service).
When market quotations are not readily available, any security or other asset is valued at its fair value as determined under procedures approved by the Trust’s Board of Trustees. These fair value procedures will also be used to price a
|
security when corporate events, events in the securities market and/or world events cause the Advisers to believe that a security’s last sale price may not reflect its actual fair value. The intended effect of
using fair value pricing procedures is to ensure that the Funds are accurately priced.
|
|
Debt securities, including U.S. Government and Agency Securities, corporate securities, municipal securities, mortgage- and asset-backed securities, commercial paper, banker’s acceptances, certificates of
deposit, time deposits and U.S. Treasury Bills, including short-term debt instruments having a maturity of 60 days or less, are valued at the mean by pricing service providers. Pricing services may use various valuation methodologies such as
broker-dealer quotations or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows and market-based yield spreads for each tranche,
current market data and incorporate deal collateral performance, as available. Pricing Services generally value debt securities assuming orderly transactions of an institutional round lot size, but such securities may be held or transactions
may be conducted in such securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. If a price is not available from a pricing service, the most recent quotation obtained from one or more
brokers known to follow the issue will be obtained. Quotations will be valued at the mean between the bid and the offer. Debt securities that use similar valuation techniques and inputs as described above are typically categorized as Level 2
of the fair value hierarchy. Debt securities purchased on a delayed delivery basis are typically marked to market daily until settlement at the forward settlement date. Any discount or premium is accreted or amortized using the constant
yield method until maturity.
|
|
Exchange-traded options are valued at the composite price, using the National Best Bid and Offer quotes (“NBBO”). NBBO consists of the highest bid price and lowest ask price across any of the exchanges on which
an option is quoted, thus providing a view across the entire U.S. options marketplace. Specifically, composite pricing looks at the last trades on the exchanges where the options are traded. If there are no trades for the option on a given
business day, composite option pricing calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is traded and the option will generally be classified as Level 2.
|
|
Money market funds, demand notes and repurchase agreements are valued at cost. If cost does not represent current market value the securities will be priced at fair value.
|
|
Redeemable securities issued by open-end, registered investment companies are valued at the net asset value (“NAV”) of such companies for purchase and/or redemption orders placed on that day.
|
|
FASB Accounting Standards Codification, “Fair Value Measurements and Disclosures” Topic 820 (“ASC 820”), establishes an authoritative definition of fair value and sets out a hierarchy for measuring fair value.
ASC 820 requires an entity to evaluate certain factors to determine whether there has been a significant decrease in volume and level of activity for the security such that recent transactions and quoted prices may not be determinative of
fair value and further analysis and adjustment may be necessary to estimate fair value. ASC 820 also requires enhanced disclosures regarding the inputs and valuation techniques used to measure fair value in those instances as well as
expanded disclosure of valuation levels for each class of investments. These inputs are summarized in the three broad levels listed below:
|
Level 1—
|
Quoted prices in active markets for identical securities.
|
|
Level 2—
|
Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
|
|
Level 3—
|
Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).
|
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the
Funds’ investments carried at fair value as of November 30, 2019:
|
Equity Income Plus Fund
|
|||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||
Assets:
|
|||||||||||||||||
Common Stocks(1)
|
$
|
25,277,101
|
$
|
—
|
$
|
—
|
$
|
25,277,101
|
|||||||||
Master Limited Partnerships
|
729,855
|
—
|
—
|
729,855
|
|||||||||||||
Real Estate Investment Trusts
|
1,184,567
|
—
|
—
|
1,184,567
|
|||||||||||||
Purchased Options
|
3,450
|
—
|
—
|
3,450
|
|||||||||||||
Total Assets
|
$
|
27,194,973
|
$
|
—
|
$
|
—
|
$
|
27,194,973
|
|||||||||
Short-Term Investments
|
$
|
3,898,470
|
$
|
—
|
$
|
—
|
$
|
3,898,470
|
|||||||||
Total Investments in Securities
|
$
|
31,093,443
|
$
|
—
|
$
|
—
|
$
|
31,093,443
|
|||||||||
Liabilities:
|
|||||||||||||||||
Written Options
|
$
|
(671,202
|
)
|
$
|
(1,388,518
|
)
|
$
|
—
|
$
|
(2,059,720
|
)
|
||||||
Total Liabilities
|
$
|
(671,202
|
)
|
$
|
(1,388,518
|
)
|
$
|
—
|
$
|
(2,059,720
|
)
|
(1) See the Schedule of Investments for industry classifications.
|
|||||||||||||||||
Short Term U.S. Government Agency Income Fund
|
|||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||
Fixed Income:
|
|||||||||||||||||
Mortgage Backed Securities
|
$
|
—
|
$
|
15,173,279
|
$
|
—
|
$
|
15,173,279
|
|||||||||
U.S. Government Notes/Bonds
|
—
|
1,536,023
|
—
|
1,536,023
|
|||||||||||||
Total Fixed Income
|
$
|
—
|
$
|
16,709,302
|
$
|
—
|
$
|
16,709,302
|
|||||||||
Short-Term Investments
|
$
|
394,672
|
$
|
—
|
$
|
—
|
$
|
394,672
|
|||||||||
Total Investments in Securities
|
$
|
394,672
|
$
|
16,709,302
|
$
|
—
|
$
|
17,103,974
|
The Funds measure Level 3 activity as of the end of the period. For the six months ended November 30, 2019, the Funds did not have any significant unobservable inputs (Level 3 securities) used in determining
fair value. Therefore, a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value is not applicable.
|
(b)
|
Derivative Instruments
|
The Short Term U.S. Government Agency Income Fund did not hold any financial derivative instruments during the six months ended November 30, 2019.
|
|
The Equity Income Plus Fund invested in derivative instruments, such as purchased and written options, during the six months ended November 30, 2019.
|
|
The following sets forth the fair value of derivative instruments as reported for the Equity Income Plus Fund within the Statements of Assets and Liabilities as of November 30, 2019:
|
Asset Derivatives
|
Liability Derivatives
|
||||||||||
Derivatives not
|
|||||||||||
accounted for as
|
Statements of Assets &
|
Statements of Assets &
|
|||||||||
hedging instruments
|
Liabilities Location
|
Value
|
Liabilities Location
|
Value
|
|||||||
Equity Contracts –
|
Investments,
|
Written Options,
|
|||||||||
Options
|
at value
|
$
|
3,450
|
at value
|
$
|
2,059,720
|
|||||
Total
|
$
|
3,450
|
$
|
2,059,720
|
The effect of derivative instruments for the Equity Income Plus Fund on the Statements of Operations for the six months ended November 30, 2019:
|
Amount of Net Realized Loss on Derivatives Recognized in Income
|
|||||||||||||
Derivatives not accounted for
|
Purchased
|
Written
|
|||||||||||
as hedging instruments
|
Options(1)
|
Options
|
Total
|
||||||||||
Equity Contracts
|
$
|
(113,635
|
)
|
$
|
(93,270
|
)
|
$
|
(206,905
|
)
|
||||
Total
|
$
|
(113,635
|
)
|
$
|
(93,270
|
)
|
$
|
(206,905
|
)
|
||||
Change in Net Unrealized Depreciation on Derivatives Recognized in Income
|
|||||||||||||
Derivatives not accounted for
|
Purchased
|
Written
|
|||||||||||
as hedging instruments
|
Options(1)
|
Options
|
Total
|
||||||||||
Equity Contracts
|
$
|
(75,696
|
)
|
$
|
(1,067,945
|
)
|
$
|
(1,143,641
|
)
|
||||
Total
|
$
|
(75,696
|
)
|
$
|
(1,067,945
|
)
|
$
|
(1,143,641
|
)
|
(1) Reflected within investments and purchased options on the Statements of Operations.
|
As of November 30, 2019, the fair value of long positions which served as collateral for call options written was $27,191,523.
|
|
The average monthly notional amount outstanding for purchased and written options during the six months ended November 30, 2019 were $7,193,608 and $(30,745,216), respectively.
|
|
Accounting Standards Update (ASU) 2011-11 “Disclosures about Offsetting Assets and Liabilities” deals with offsetting assets and liabilities on the Statements of Assets and Liabilities with respect to
derivative instruments. The Equity Income Plus Fund is not subject to any Master Netting Arrangements, therefore the Equity Income Plus Fund was not required to offset any assets or liabilities.
|
|
Options
|
|
GAAP requires enhanced disclosures about the Equity Income Plus Fund’s derivative activities, including how such activities are accounted for and their effect on the Equity Income Plus Fund’s financial position
and results of operations.
|
|
The Equity Income Plus Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Equity Income Plus Fund enters into written call options to reduce volatility of the
portfolio and/or earn premium income. Additionally, for hedging purposes, the Equity Income Plus Fund will periodically buy put options on equity securities indices. The Equity Income Plus Fund’s option component of its overall investment
strategy is often referred to as a “buy-write” strategy (also called a “covered call” strategy), in which the Adviser writes (sells) a call option contract while at the same time owning an equivalent number of shares of the underlying stock
to generate moderate current income. The writing of call options is intended to reduce the volatility of the portfolio and to earn premium income. Written call options expose the Equity Income Plus Fund to minimal counterparty credit risk
since they are exchange traded and the exchange’s clearing house guarantees the options against default.
|
|
The Equity Income Plus Fund may purchase put options on indices and enter into related closing transactions. As a holder of a put option, the Equity Income Plus Fund has the right, but not the obligation, to
sell a security at the exercise price during the exercise period.
|
|
When the Equity Income Plus Fund writes an option, an amount equal to the premium received by the Equity Income Plus Fund is recorded as a liability and is subsequently adjusted to the current fair value of the
option written. Premiums received from writing options that expire unexercised are treated by the Equity Income Plus Fund on the expiration date as realized gains from options written. The difference between the premium and the amount paid
on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the underlying security or currency in
|
determining whether the Equity Income Plus Fund has realized a gain or a loss. If a put option is exercised, the premium is deducted from the cost basis of the security purchased. The Equity Income Plus Fund,
as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option.
|
|
When purchasing options, the Equity Income Plus Fund will recognize a realized loss equal to the premium paid to purchase the option, if the option expires unexercised. The difference between the proceeds
received on effecting a closing sale transaction and the premium paid will be recognized as a realized gain or loss. If a put option is exercised, the premium paid is deducted from the proceeds on the sale of the underlying security in
determining whether the Equity Income Plus Fund has a realized gain or loss.
|
(c)
|
Federal Income Taxes
|
The Funds comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, necessary to qualify as regulated investment companies and make the requisite distributions of income and
capital gains to their shareholders sufficient to relieve them from all or substantially all federal income taxes. Therefore, no federal income tax provision has been provided.
|
|
As of and during the year ended May 31, 2019, the Funds did not have a liability for any unrecognized tax benefits. 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 ended May 31, 2019, the Funds did not incur any interest or penalties. The Funds are not subject to examination by U.S. taxing authorities for tax periods prior to the year
ended May 31, 2016.
|
(d)
|
Distributions to Shareholders
|
The Funds will distribute any net investment income and any net realized long- or short-term capital gains at least annually. Distributions from net realized gains for book purposes may include short-term
capital gains. All short-term capital gains are included in ordinary income for tax purposes. Distributions to shareholders are recorded on the ex-dividend date. The Funds may also pay a special distribution at the end of the calendar year
to comply with federal tax requirements. Income and capital gains distributions may differ from GAAP, primarily due to timing differences in the recognition of income, gains and losses by the Funds. To the extent that these differences are
attributable to permanent book and tax accounting differences, the components of net assets have been adjusted.
|
(e)
|
Use of Estimates
|
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
|
(f)
|
Share Valuation
|
The NAV per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the
total number of shares outstanding for each Fund, rounded to the nearest cent. The Funds’ shares will not be priced on the days on which the New York Stock Exchange is closed for trading.
|
(g)
|
Allocation of Income, Expenses and Gains/Losses
|
Income, expenses (other than those deemed attributable to a specific share class), and gains and losses of the Funds are allocated daily to each class of shares based upon the ratio of net assets represented by
each class as a percentage of the net assets of the Fund. Expenses deemed directly attributable to a class of shares are recorded by the specific class. Most Fund expenses are allocated by class based on relative net assets. Rule 12b-1 fees
are expensed at 0.25% of average daily net assets of the Investor Class shares of the Equity Income Plus Fund. Shareholder servicing fees are expensed at an amount not to exceed 0.10% of average daily net assets of the Investor Class shares
of the Equity Income Plus Fund. Expenses associated with a specific fund in the Trust are charged to that fund. Common Trust expenses are typically allocated evenly between the funds of the Trust or by other equitable means.
|
(h)
|
Other
|
Investment transactions are recorded on the trade date. The Funds determine the gain or loss from investment transactions using the first in-first out (FIFO) method by comparing the original cost of the
security lot sold with the net sale proceeds. Dividend income and expense, less foreign withholding tax, is recognized on the ex-dividend date and interest income and expense are recognized on an accrual basis. Withholding taxes on foreign
dividends and interest, net of any reclaims, have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Non-cash dividends are recorded at fair market value of the securities
received. Return of capital distributions received from the Funds’ investments in master limited partnerships (“MLPs”) and real estate investment trusts (“REITs”) are recorded as an adjustment to the cost of the security and thus may impact
unrealized or realized gains or losses on the security. Discounts, premiums and interest only strips are accreted or amortized over the expected life of the respective securities using the constant yield method. Gains and losses on
principal payments of mortgage-backed securities (paydowns gains and losses) are included as an adjustment to interest income in the Statements of Operations.
|
(3)
|
Federal Tax Matters
|
The tax character of distributions paid during the years ended May 31, 2019 and May 31, 2018 were as follows:
|
Equity Income Plus Fund
|
|||||||||
May 31, 2019
|
May 31, 2018
|
||||||||
Ordinary Income
|
$
|
1,044,611
|
$
|
689,176
|
|||||
Long-Term Capital Gain
|
—
|
—
|
|||||||
Short Term U.S. Government Agency Income Fund
|
|||||||||
May 31, 2019
|
May 31, 2018
|
||||||||
Ordinary Income
|
$
|
646,655
|
$
|
1,021,525
|
|||||
Long-Term Capital Gain
|
—
|
—
|
As of May 31, 2019, the components of accumulated earnings (losses) on a tax basis were as follows:
|
|
Short Term
|
||||||||
Equity
|
U.S. Government
|
||||||||
Income
|
Agency
|
||||||||
Plus Fund
|
Income Fund
|
||||||||
Cost basis of investments for federal income tax purposes
|
$
|
33,533,941
|
$
|
19,973,449
|
|||||
Gross tax unrealized appreciation
|
3,692,282
|
434,751
|
|||||||
Gross tax unrealized depreciation
|
(2,615,168
|
)
|
(2,551,781
|
)
|
|||||
Net tax unrealized appreciation (depreciation)
|
1,077,114
|
(2,117,030
|
)
|
||||||
Undistributed ordinary income
|
179,422
|
1,119
|
|||||||
Undistributed long-term capital gain
|
—
|
—
|
|||||||
Total distributable earnings
|
179,422
|
1,119
|
|||||||
Other accumulated losses
|
(9,021,441
|
)
|
(4,747,888
|
)
|
|||||
Total accumulated losses
|
$
|
(7,764,905
|
)
|
$
|
(6,863,799
|
)
|
The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to basis adjustments related to investments in partnerships and the deferral of losses on wash sales and
straddle adjustments.
|
|
At May 31, 2019, the Equity Income Plus Fund had short-term capital loss carryovers of $8,657,510. At May 31, 2019, the Short Term U.S. Government Agency Income Fund had short-term capital loss carryovers of
$3,934,738 and had long-term capital loss carryovers of $813,150. These losses will be carried forward indefinitely to offset future realized capital gains. To the extent the Funds’ realize future net capital gains, taxable distributions to
their shareholders will be offset by any unused capital loss carryovers.
|
GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value
per share. For the year ended May 31, 2019, the following reclassifications were made for permanent tax differences on the Statements of Assets and Liabilities:
|
Equity Income Plus Fund
|
|||||
Undistributed Net Investment Income/(Loss)
|
$
|
98,227
|
|||
Accumulated Net Realized Gain/(Loss)
|
$
|
(98,227
|
)
|
||
Short Term U.S. Government Agency Income Fund
|
|||||
Undistributed Net Investment Income/(Loss)
|
$
|
38,485
|
|||
Accumulated Net Realized Gain/(Loss)
|
$
|
(38,485
|
)
|
The permanent adjustments for the Equity Income Plus Fund and Short Term U.S. Government Agency Income Fund relate to partnership and paydowns adjustments, respectively.
|
|
(4)
|
Investment Advisers
|
The Trust has Investment Advisory Agreements (collectively, the “Agreement”) with the Advisers to furnish investment advisory services to the Funds. Under the terms of the Agreement, the Funds compensate the
Advisers for their management services at the annual rate of 0.30% and 0.75% of the Funds’ average daily net assets for the Short Term U.S. Government Agency Income Fund and Equity Income Plus Fund, respectively.
|
|
The Advisers have contractually agreed to waive their management fee and/or reimburse the Funds’ other expenses at least through the expiration dates listed below, to the extent necessary to ensure that the
Funds’ operating expenses (excluding any front end or contingent deferred load, Rule 12b-1 plan fees, shareholder servicing plan fees, taxes, leverage, interest, brokerage commissions, expenses incurred in connection with any merger or
reorganization, dividends or interest expense on short positions, acquired fund fees and expenses or extraordinary expenses) do not exceed the expense limitation caps listed below of each Fund’s average daily net assets.
|
Expiration Date
|
Expense Limitation Cap
|
||
Equity Income Plus Fund
|
September 28, 2020
|
0.75%
|
|
Short Term U.S. Government Agency Income Fund
|
September 28, 2020
|
0.55%
|
Any such waiver or reimbursement is subject to later adjustment to allow the Adviser to recoup amounts waived or reimbursed to the extent actual fees and expenses for a fiscal period do not exceed the lesser
of: (1) the Expense Limitation Cap in place at the time of the waiver or reimbursement or (2) the Expense Limitation Cap in place at the time of recoupment; provided, however, that the Adviser shall only be entitled to recoup such amounts
over the following three year period from the date of the waiver or reimbursement. The following table details the remaining waived or reimbursed expenses subject to potential recovery expiring during the fiscal period ending:
|
November 30, 2022
|
May 31, 2022
|
May 31, 2021
|
May 31, 2020
|
||||||||||||||
Equity Income Plus Fund
|
|||||||||||||||||
Institutional Class
|
$
|
129,675
|
$
|
265,883
|
$
|
253,672
|
$
|
113,141
|
|||||||||
Investor Class
|
838
|
2,430
|
3,672
|
2,227
|
|||||||||||||
Short Term U.S. Government
|
|||||||||||||||||
Agency Income Fund
|
|||||||||||||||||
Institutional Class
|
70,866
|
134,752
|
118,383
|
45,381
|
(5)
|
Distribution Plan and Shareholder Servicing Plan
|
The Trust has adopted a plan pursuant to Rule 12b-1 (the “12b-1 Plan”), on behalf of the Equity Income Plus Fund, which authorizes the payment to Quasar Distributors, LLC (the “Distributor”) of a distribution
(Rule 12b-1) fee of 0.25% of the Fund’s average daily net assets of Investor Class shares for services to prospective Fund shareholders and distribution. During the six months ended November 30, 2019, the Fund accrued fees of $256 pursuant to
the 12b-1 Plan. As of November 30, 2019, the Fund owed the Distributor $1,334 in fees.
|
|
The Trust has adopted a shareholder servicing plan, on behalf of the Equity Income Plus Fund, which authorizes payment of a shareholder servicing fee not to exceed 0.10% of the average daily net assets of the
Investor Class shares for the Equity Income Plus Fund. During the six months ended November 30, 2019, the Equity Income Plus Fund did not accrue shareholder servicing fees, but was able to pay shareholder servicing fees incurred of $126
through November 30, 2019 from prior year balances.
|
|
(6)
|
Related Party Transactions
|
U.S. Bancorp Fund Services, LLC (“Fund Services,” or the “Administrator”), doing business as U.S. Bank Global Fund Services, acts as the Funds’ Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for the Funds; prepares reports and materials to be supplied to the Trustees; monitors the activities of the Funds’ custodian, transfer agent and accountants;
coordinates the preparation and payment of the Funds’ expenses and reviews the Funds’ expense accruals. Fees incurred for the six months ended November 30, 2019, and owed as of November 30, 2019, are as follows:
|
Incurred
|
Owed
|
||||||||
Equity Income Plus Fund
|
$
|
48,217
|
$
|
22,211
|
|||||
Short Term U.S. Government Agency Income Fund
|
27,459
|
16,244
|
Fund Services also serves as the fund accountant and transfer agent to the Funds. U.S. Bank, N.A. (“U.S. Bank”), an affiliate of Fund Services, serves as each Funds’ custodian. Fees incurred for the six months
ended November 30, 2019, and owed as of November 30, 2019, are as follows:
|
Pricing Expenses
|
Incurred
|
Owed
|
|||||||
Equity Income Plus Fund
|
$
|
1,201
|
$
|
529
|
|||||
Short Term U.S. Government Agency Income Fund
|
7,123
|
3,870
|
|||||||
Transfer Agency
|
Incurred
|
Owed
|
|||||||
Equity Income Plus Fund
|
$
|
24,971
|
$
|
12,607
|
|||||
Short Term U.S. Government Agency Income Fund
|
10,756
|
4,885
|
|||||||
Custody
|
Incurred
|
Owed
|
|||||||
Equity Income Plus Fund
|
$
|
4,525
|
$
|
1,565
|
|||||
Short Term U.S. Government Agency Income Fund
|
4,312
|
2,115
|
Each Fund has a line of credit with U.S. Bank (see Note 10).
|
|
The Distributor acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. The Distributor is an affiliate of Fund Services and U.S. Bank.
|
|
Certain officers of the Funds are also employees of Fund Services. A Trustee of the Trust is affiliated with Fund Services and U.S. Bank. This same Trustee is a board member and an interested person of the
Distributor.
|
|
The Trust’s Chief Compliance Officer is also an employee of Fund Services. Each Fund’s allocation of the Trust’s Chief Compliance Officer fee incurred for the six months ended November 30, 2019, and owed as of
November 30, 2019, are as follows:
|
Incurred
|
Owed
|
||||||||
Equity Income Plus Fund
|
$
|
6,039
|
$
|
3,039
|
|||||
Short Term U.S. Government Agency Income Fund
|
6,039
|
3,036
|
(7)
|
Capital Share Transactions
|
Transactions in shares of the Equity Income Plus Fund were as follows:
|
Institutional Class
|
|||||||||
Six Months Ended
|
Year Ended
|
||||||||
November 30, 2019
|
May 31, 2019
|
||||||||
Shares sold
|
70,426
|
276,037
|
|||||||
Shares reinvested
|
32,652
|
92,269
|
|||||||
Shares redeemed
|
(711,043
|
)
|
(2,327,819
|
)
|
|||||
Net decrease
|
(607,965
|
)
|
(1,959,513
|
)
|
|||||
Investor Class
|
|||||||||
Six Months Ended
|
Year Ended
|
||||||||
November 30, 2019
|
May 31, 2019
|
||||||||
Shares sold
|
—
|
37
|
|||||||
Shares reinvested
|
236
|
762
|
|||||||
Shares redeemed
|
(13,631
|
)
|
(51,880
|
)
|
|||||
Net decrease
|
(13,395
|
)
|
(51,081
|
)
|
Transactions in shares of the Short Term U.S. Government Agency Income Fund were as follows:
|
|
Institutional Class
|
Six Months Ended
|
Year Ended
|
||||||||
November 30, 2019
|
May 31, 2019
|
||||||||
Shares sold
|
224,255
|
43,403
|
|||||||
Shares reinvested
|
35,665
|
62,710
|
|||||||
Shares redeemed
|
(289,015
|
)
|
(736,789
|
)
|
|||||
Net decrease
|
(29,095
|
)
|
(630,676
|
)
|
(8)
|
Investment Transactions
|
Purchases and sales of investment securities (excluding short-term investments) for the Funds for the six months ended November 30, 2019 are summarized below:
|
Short Term
|
|||||||||
Equity
|
U.S. Government
|
||||||||
Income
|
Agency
|
||||||||
Plus Fund
|
Income Fund
|
||||||||
Purchases:
|
|||||||||
U.S. Government
|
$
|
—
|
$
|
4,412,512
|
|||||
Other
|
5,536,035
|
—
|
|||||||
Sales:
|
|||||||||
U.S. Government
|
$
|
—
|
$
|
3,323,288
|
|||||
Other
|
15,279,984
|
—
|
(9)
|
Beneficial Ownership
|
The benefical ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the 1940 Act. At November 30,
2019, the following shareholders held over 25% of a Fund’s shares outstanding:
|
Equity Income Plus Fund
|
|||||
Institutional Class
|
|||||
National Financial Services, LLC
|
44.93
|
%
|
|||
Short Term U.S. Government Agency Income Fund
|
|||||
Institutional Class
|
|||||
National Financial Services, LLC
|
34.61
|
%
|
|||
Marc Brownstein
|
32.24
|
%
|
(10)
|
Line of Credit
|
At November 30, 2019, the Equity Income Plus Fund had a line of credit with a maximum amount of borrowing for the lessor of $5,000,000 or 33.33% of the market value of unencumbered assets and the Short Term
U.S. Government Agency Income Fund had a line of credit with a maximum amount of borrowing for the lessor of $2,500,000, 20% of the gross market value of the Fund, or 33.33% of the market value of unencumbered assets of the Fund which mature
August 8, 2020. These unsecured lines of credit are intended to provide short-term financing, if necessary, subject to certain restrictions, in connection with shareholder redemptions. The credit facility is with the Funds’ custodian, U.S.
Bank. For the six months ended November 30, 2019, the interest rate under the lines of credit was 5.50% from June 1, 2019 through July 31, 2019, 5.25% from August 1, 2019 through September 18, 2019, 5.00% from September 19, 2019 through
October 30, 2019, and 4.75% thereafter. The Funds did not borrow on the line of credit during the six months ended November 30, 2019.
|
|
(11)
|
Results of Shareholder Meeting
|
A Joint Special Meeting of Shareholders of the Funds was held November 15, 2019 at the offices of U.S. Bancorp Fund Services, LLC, 615 East Michigan Avenue, Milwaukee, Wisconsin, pursuant to notice given to all
shareholders of record of the Funds at the close of business on September 6, 2019. At the Special Meeting, shareholders were asked to approve the following:
|
|
To approve the Agreement and Plan of Reorganization providing for (i) the transfer of all the assets of M.D. Sass Equity Income Plus Fund, a series of Trust for Professional Managers (the “Target Fund”) to
Integrity Dividend Harvest Fund, a series of The Integrity Funds (the “Acquiring Fund”) in exchange solely for shares of the Acquiring Fund and the assumption by the Acquiring Fund of the liabilities of the Target Fund; and (ii) the pro rata
distribution to the Target Fund’s shareholders of such Acquiring Fund shares.
|
|
The tabulation of the shareholder votes rendered the following results:
|
Votes For
|
Votes Against
|
Abstained
|
||
1,877,921
|
0
|
734
|
To approve the Agreement and Plan of Reorganization providing for (i) the transfer of all the assets of M.D. Sass Short Term U.S. Government Agency Income Fund, a series of Trust for Professional Managers (the
“Target Fund”) to Integrity Short Term Government Fund, a series of The Integrity Funds (the “Acquiring Fund”) in exchange solely for shares of the Acquiring Fund and the assumption by the Acquiring Fund of the liabilities of the Target Fund;
and (ii) the pro rata distribution to the Target Fund’s shareholders of such Acquiring Fund shares.
|
|
The tabulation of the shareholder votes rendered the following results:
|
Votes For
|
Votes Against
|
Abstained
|
||
1,101,736
|
0
|
3,103
|
(12)
|
Subsequent Events
|
On December 30, 2019, the Equity Income Plus Fund declared and paid a distribution from ordinary income of $34,587 to the shareholders of record on December 27, 2019 of the Institutional Class.
|
|
On December 30, 2019, the Short Term U.S. Government Agency Income Fund declared and paid a distribution from ordinary income of $48,000 to the shareholders of record on December 27, 2019.
|
|
On January 13, 2020, the Equity Income Plus Fund declared and paid a distribution from ordinary income of $5,414 and $18 to the shareholders of record on January 10, 2020 of the Institutional Class and Investor
Class, respectively.
|
|
As a result of the Joint Special Meeting of Shareholders on November 15, 2019, the Funds reorganized into The Integrity Funds effective the close of business January 17, 2020.
|
|
(13)
|
Regulatory Updates
|
In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten
the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to
maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management does not expect an impact based upon the current amortization methodology.
|
1.
|
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED TO THE FUND
|
2.
|
INVESTMENT PERFORMANCE OF THE FUND AND THE ADVISER
|
3.
|
COSTS OF SERVICES PROVIDED AND PROFITS REALIZED BY THE ADVISER
|
4.
|
EXTENT OF ECONOMIES OF SCALE AS THE FUND GROWS
|
5.
|
BENEFITS DERIVED FROM THE RELATIONSHIP WITH THE FUND
|
1.
|
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED TO THE FUND
|
2.
|
INVESTMENT PERFORMANCE OF THE FUND AND THE ADVISER
|
3.
|
COSTS OF SERVICES PROVIDED AND PROFITS REALIZED BY THE ADVISER
|
4.
|
EXTENT OF ECONOMIES OF SCALE AS THE FUND GROWS
|
5.
|
BENEFITS DERIVED FROM THE RELATIONSHIP WITH THE FUND
|
•
|
information we receive about you on applications or other forms;
|
•
|
information you give us orally; and
|
•
|
information about your transactions with us or others.
|
Number of
|
|||||
Term of
|
Portfolios
|
Other Directorships
|
|||
Position(s)
|
Office and
|
in Trust
|
Held by Trustee
|
||
Name, Address
|
Held with
|
Length of
|
Overseen
|
Principal Occupation(s)
|
During the
|
and Year of Birth
|
the Trust
|
Time Served
|
by Trustee
|
During the Past Five Years
|
Past Five Years
|
Independent Trustees
|
|||||
Michael D. Akers, Ph.D.
|
Trustee
|
Indefinite
|
26
|
Professor Emeritus of
|
Independent Trustee,
|
615 E. Michigan St.
|
Term; Since
|
Accounting, Marquette
|
USA MUTUALS (an
|
||
Milwaukee, WI 53202
|
August 22,
|
University (June 2019-
|
open-end investment
|
||
Year of Birth: 1955
|
2001
|
present); Professor,
|
company with two
|
||
Department of Accounting,
|
portfolios).
|
||||
Marquette University
|
|||||
(2004-May 2019);
|
|||||
Chair, Department of
|
|||||
Accounting, Marquette
|
|||||
University (2004-2017).
|
|||||
Gary A. Drska
|
Trustee
|
Indefinite
|
26
|
Pilot, Frontier/Midwest Airlines,
|
Independent Trustee,
|
615 E. Michigan St.
|
Term; Since
|
Inc. (airline company)
|
USA MUTUALS (an
|
||
Milwaukee, WI 53202
|
August 22,
|
(1986-present).
|
open-end investment
|
||
Year of Birth: 1956
|
2001
|
company with two
|
|||
portfolios).
|
|||||
Jonas B. Siegel
|
Trustee
|
Indefinite
|
26
|
Retired (2011-present);
|
Independent Trustee,
|
615 E. Michigan St.
|
Term; Since
|
Managing Director, Chief
|
Gottex Trust (an open-end
|
||
Milwaukee, WI 53202
|
October 23,
|
Administrative Officer (“CAO”)
|
investment company)
|
||
Year of Birth: 1943
|
2009
|
and Chief Compliance Officer
|
(2010-2016); Independent
|
||
(“CCO”), Granite Capital
|
Manager, Ramius IDF
|
||||
International Group, L.P.
|
fund complex (two
|
||||
(an investment management
|
closed-end investment
|
||||
firm) (1994-2011).
|
companies) (2010-2015);
|
||||
Independent Trustee,
|
|||||
Gottex Multi-Asset
|
|||||
Endowment fund complex
|
|||||
(three closed-end
|
|||||
investment companies)
|
|||||
(2010-2015); Independent
|
|||||
Trustee, Gottex Multi-
|
|||||
Alternatives fund complex
|
|||||
(three closed-end
|
|||||
investment companies)
|
|||||
(2010-2015).
|
Number of
|
|||||
Term of
|
Portfolios
|
Other Directorships
|
|||
Position(s)
|
Office and
|
in Trust
|
Held by Trustee
|
||
Name, Address
|
Held with
|
Length of
|
Overseen
|
Principal Occupation(s)
|
During the
|
and Year of Birth
|
the Trust
|
Time Served
|
by Trustee
|
During the Past Five Years
|
Past Five Years
|
Interested Trustee and Officers
|
|||||
Joseph C. Neuberger*
|
Chairperson
|
Indefinite
|
26
|
President (2017-present),
|
Trustee; USA MUTUALS
|
615 E. Michigan St.
|
and
|
Term; Since
|
Chief Operating Officer
|
(an open-end investment
|
|
Milwaukee, WI 53202
|
Trustee
|
August 22,
|
(2016-present), Executive
|
company) (2001-2018);
|
|
Year of Birth: 1962
|
2001
|
Vice President (1994-2017),
|
Trustee, Buffalo
|
||
U.S. Bancorp Fund
|
Funds (an open-end
|
||||
Services, LLC.
|
investment company)
|
||||
|
(2003-2017).
|
||||
John P. Buckel
|
President
|
Indefinite
|
N/A
|
Vice President, U.S. Bancorp Fund
|
N/A
|
615 E. Michigan St.
|
and
|
Term; Since
|
Services, LLC (2004-present).
|
||
Milwaukee, WI 53202
|
Principal
|
January 24,
|
|||
Year of Birth: 1957
|
Executive
|
2013
|
|||
Officer
|
|||||
Jennifer A. Lima
|
Vice
|
Indefinite
|
N/A
|
Vice President, U.S. Bancorp Fund
|
N/A
|
615 E. Michigan St.
|
President,
|
Term; Since
|
Services, LLC (2002-present).
|
||
Milwaukee, WI 53202
|
Treasurer
|
January 24,
|
|||
Year of Birth: 1974
|
and
|
2013
|
|||
Principal
|
|||||
Financial and
|
|||||
Accounting
|
|||||
Officer
|
|||||
Elizabeth B. Scalf
|
Chief
|
Indefinite
|
N/A
|
Senior Vice President, U.S.
|
N/A
|
615 E. Michigan St.
|
Compliance
|
Term; Since
|
Bancorp Fund Services, LLC
|
||
Milwaukee, WI 53202
|
Officer,
|
July 1,
|
(February 2017-present);
|
||
Year of Birth: 1985
|
Vice
|
2017
|
Vice President and Assistant
|
||
President and
|
CCO, Heartland Advisors, Inc.
|
||||
Anti-Money
|
(December 2016-January 2017);
|
||||
Laundering
|
Vice President and CCO,
|
||||
Officer
|
Heartland Group, Inc.
|
||||
(May 2016-November 2016);
|
|||||
Vice President, CCO and
|
|||||
Senior Legal Counsel
|
|||||
(May 2016-November 2016),
|
|||||
Assistant CCO and Senior Legal
|
|||||
Counsel (January 2016-April 2016),
|
|||||
Senior Legal and Compliance
|
|||||
Counsel (2013-2015), Heartland
|
|||||
Advisors, Inc.
|
|||||
Jay S. Fitton
|
Secretary
|
Indefinite
|
N/A
|
Assistant Vice President,
|
N/A
|
615 E. Michigan St.
|
Term; Since
|
U.S. Bancorp Fund Services,
|
|||
Milwaukee, WI 53202
|
July 22,
|
LLC (2019-present); Partner,
|
|||
Year of Birth: 1970
|
2019
|
Practus, LLP (2018-2019);
|
|||
Counsel, Drinker Biddle &
|
|||||
Reath (2016-2018); Counsel,
|
|||||
Huntington Bancshares Inc.
|
|||||
(2011-2015).
|
*
|
Mr. Neuberger is an “interested person” of the Trust as defined by the 1940 Act by virtue of the fact that he is a board member and an interested person of Quasar Distributors, LLC (the “Distributor”), the
Funds’ principal underwriter.
|
Number of
|
|||||
Term of
|
Portfolios
|
Other Directorships
|
|||
Position(s)
|
Office and
|
in Trust
|
Held by Trustee
|
||
Name, Address
|
Held with
|
Length of
|
Overseen
|
Principal Occupation(s)
|
During the
|
and Year of Birth
|
the Trust
|
Time Served
|
by Trustee
|
During the Past Five Years
|
Past Five Years
|
Kelly A. Burns
|
Assistant
|
Indefinite
|
N/A
|
Assistant Vice President, U.S.
|
N/A
|
615 E. Michigan St.
|
Treasurer
|
Term; Since
|
Bancorp Fund Services, LLC
|
||
Milwaukee, WI 53202
|
April 23,
|
(2011-present).
|
|||
Year of Birth: 1987
|
2015
|
||||
Melissa Aguinaga
|
Assistant
|
Indefinite
|
N/A
|
Assistant Vice President, U.S.
|
N/A
|
615 E. Michigan St.
|
Treasurer
|
Term; Since
|
Bancorp Fund Services, LLC
|
||
Milwaukee, WI 53202
|
July 1,
|
(2010-present).
|
|||
Year of Birth: 1987
|
2015
|
||||
Laura A. Carroll
|
Assistant
|
Indefinite
|
N/A
|
Assistant Vice President, U.S.
|
N/A
|
615 E. Michigan St.
|
Treasurer
|
Term; Since
|
Bancorp Fund Services, LLC
|
||
Milwaukee, WI 53202
|
August 20,
|
(2007-present).
|
|||
Year of Birth: 1985
|
2018
|
M.D. Sass Equity Income Plus Fund |
100.00%
|
|
M.D. Sass Equity Income Plus Fund |
97.98%
|
|
Investment Advisers
|
Equity Income Plus Fund
|
M.D. Sass, LLC
|
|
55 West 46th Street, 28th Floor
|
|
New York, New York 10036
|
|
Short Term U.S. Government Agency Income Fund
|
|
M.D. Sass Investors Services, Inc.
|
|
55 West 46th Street, 28th Floor
|
|
New York, New York 10036
|
|
Legal Counsel
|
Godfrey & Kahn, S.C.
|
833 East Michigan Street, Suite 1800
|
|
Milwaukee, Wisconsin 53202
|
|
Independent Registered Public
|
Cohen & Company, Ltd.
|
Accounting Firm
|
1350 Euclid Avenue
|
Suite 800
|
|
Cleveland, Ohio 44115
|
|
Transfer Agent, Fund Accountant and
|
U.S. Bancorp Fund Services, LLC
|
Fund Administrator
|
615 East Michigan Street
|
Milwaukee, Wisconsin 53202
|
|
Custodian
|
U.S. Bank, N.A.
|
Custody Operations
|
|
1555 North RiverCenter Drive
|
|
Milwaukee, Wisconsin 53212
|
|
Distributor
|
Quasar Distributors, LLC
|
777 East Wisconsin Avenue, 6th Floor
|
|
Milwaukee, Wisconsin 53202
|
(a)
|
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
|
(b)
|
Not Applicable.
|
(a)
|
The Registrant’s President and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of
this report, as 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. Based on their review, such officers have concluded that the disclosure controls and procedures are
effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.
|
(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 last fiscal half-year covered by this report that has materially affected, or is
reasonably likely to materially affect, the Registrant's internal control over financial reporting.
|
(a)
|
(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an
exhibit. Not Applicable.
|
(b)
|
Certifications pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002. Furnished herewith.
|
1.
|
I have reviewed this report on Form N-CSR of Trust for Professional Managers;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the last fiscal half-year
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date: 1/29/2020
|
/s/ John Buckel
John Buckel President |
1.
|
I have reviewed this report on Form N-CSR of Trust for Professional Managers;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the last fiscal half-year
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date: 1/29/2020
|
/s/ Jennifer Lima
Jennifer Lima Treasurer |
/s/ John Buckel
John Buckel
President, Trust for Professional Managers
|
/s/ Jennifer Lima
Jennifer Lima
Treasurer, Trust for Professional Managers
|
Dated: 1/29/2020
|
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