Convergence
Long/Short Equity ETF
Core Financial
Statements
May
31, 2024
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-10401
(Exact name of registrant as specified in charter)
615 East Michigan Street
Milwaukee, WI 53202
(Address of principal
executive offices) (Zip code)
Jay S. Fitton
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
(Name and address of
agent for service)
(513) 520-5925
Registrant's telephone number, including area code
Date of fiscal year end: November 30, 2024
Date of reporting period:
Item 1. Reports to Stockholders.
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Semi-Annual Shareholder Report |
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WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
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Fund Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment
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Convergence Long/Short Equity ETF
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$
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KEY FUND STATISTICS (as of May 31, 2024)
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Net Assets
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$
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Number of Holdings
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Portfolio Turnover
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Visit https://investcip.com/etfstrategies.html for more recent performance information.
WHAT DID THE FUND INVEST IN? (% of net assets as of May 31, 2024)
Sector Breakdown
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Top 10 Issuers
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Alphabet, Inc.
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NVIDIA Corp.
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Microsoft Corp.
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Amazon.com, Inc.
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QUALCOMM, Inc.
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Micron Technology, Inc.
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Applied Materials, Inc.
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AppLovin Corp.
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Meta Platforms, Inc.
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Arista Networks, Inc.
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Security Breakdown
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://investcip.com/etfstrategies.html
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Convergence Investment Partners, LLC documents not be householded, please contact Convergence Investment Partners, LLC at 1-877-677-9414, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Convergence Investment Partners, LLC or your financial intermediary.
| Convergence Long/Short Equity ETF | PAGE 1 | TSR_SAR_89834G760 |
| (b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Investments.
| (a) | Schedule of Investments is included as part of the report to shareholders filed under Item 7(a) of this Form. |
| (b) | Not Applicable. |
Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.
| (a) |
TABLE OF
CONTENTS
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Convergence
Long/Short Equity ETF
Schedule
of Investments
As
of May 31, 2024 (Unaudited)
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Shares |
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Value |
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COMMON
STOCKS — 112.3% |
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Accommodation
— 0.1% |
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MGM
Resorts International(a)(b) |
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3,147 |
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$ 126,415
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Administrative
and Support Services — 3.7% |
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Booking
Holdings, Inc.(b) |
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97 |
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366,306
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Coinbase
Global, Inc. - Class A(a)(b) |
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6,131 |
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1,385,115
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ManpowerGroup,
Inc.(b) |
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3,034 |
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226,397
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NU
Holdings Ltd./Cayman Islands - Class A(a)(b) |
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49,160 |
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584,021
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PayPal
Holdings, Inc.(a)(b) |
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14,230 |
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896,348
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Uber
Technologies, Inc.(a)(b) |
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7,096 |
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458,118
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3,916,305
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Air
Transportation — 0.6% |
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SkyWest,
Inc.(a)(b) |
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8,428 |
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629,319
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Ambulatory
Health Care Services — 0.8% |
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DaVita,
Inc.(a)(b) |
|
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4,240 |
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623,789
|
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Natera,
Inc.(a) |
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2,008 |
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213,912
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837,701
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Apparel
Manufacturing — 0.3% |
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Deckers
Outdoor Corp.(a)(b) |
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251 |
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274,574
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Beverage
and Tobacco Product Manufacturing — 0.8% |
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Altria
Group, Inc.(b) |
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17,719 |
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819,504
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Broadcasting
and Content Providers — 1.0% |
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Spotify
Technology SA(a)(b) |
|
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3,562 |
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1,057,130
|
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Building
Material and Garden Equipment and Supplies Dealers — 1.0% |
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Home
Depot, Inc.(b) |
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3,091 |
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1,035,083
|
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Chemical
Manufacturing — 7.2% |
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AbbVie,
Inc.(b) |
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5,650 |
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911,006
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Amgen,
Inc.(b) |
|
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2,748 |
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840,476
|
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Eli
Lilly & Co.(b) |
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1,105 |
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906,476
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Halozyme
Therapeutics, Inc.(a)(b) |
|
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18,957 |
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839,606
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Lantheus
Holdings, Inc.(a)(b) |
|
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8,674 |
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709,793
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Merck
& Co., Inc.(b) |
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6,527 |
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819,400
|
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NewMarket
Corp.(b) |
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164 |
|
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87,751
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Organon
& Co.(b) |
|
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43,840 |
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935,107
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Pfizer,
Inc.(b) |
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12,934 |
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370,688
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Procter
& Gamble Co.(b) |
|
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4,608 |
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758,200
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Viatris,
Inc.(b) |
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47,715 |
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505,779
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7,684,282
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Clothing,
Clothing Accessories, Shoe and Jewelry Retailers — 0.3% |
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Abercrombie
& Fitch Co. - Class A(a)(b) |
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1,867 |
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322,748
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The
accompanying notes are an integral part of these financial statements.
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1 |
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Back to Back to Table of Contents
Convergence
Long/Short Equity ETF
Schedule
of Investments
As
of May 31, 2024 (Unaudited)
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Shares |
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Value |
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COMMON
STOCKS (Continued) |
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Computer
and Electronic Product Manufacturing — 17.9% |
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Apple,
Inc. |
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5,636 |
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$1,083,521
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Arista
Networks, Inc.(a)(b) |
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6,805 |
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2,025,508
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International
Business Machines Corp.(b) |
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8,100 |
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1,351,485
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Itron,
Inc.(a)(b) |
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5,200 |
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559,260
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Micron
Technology, Inc.(b) |
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19,047 |
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2,380,875
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NetApp,
Inc.(b) |
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16,748 |
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2,016,962
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NVIDIA
Corp.(b) |
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4,446 |
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4,874,283
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Pure
Storage, Inc. - Class A(a)(b) |
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6,211 |
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374,461
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QUALCOMM,
Inc.(b) |
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13,718 |
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2,799,158
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Super
Micro Computer, Inc.(a)(b) |
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395 |
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309,881
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Vertiv
Holdings Co. - Class A(b) |
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8,523 |
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835,851
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Western
Digital Corp.(a)(b) |
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4,981 |
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375,020
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18,986,265
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Couriers
and Messengers — 0.3% |
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FedEx
Corp.(b) |
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1,169 |
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296,879
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Credit
Intermediation and Related Activities — 4.6% |
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Bank
of America Corp.(b) |
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21,049 |
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841,750
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Fifth
Third Bancorp(b) |
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17,953 |
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671,801
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JPMorgan
Chase & Co.(b) |
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4,736 |
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959,656
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Synchrony
Financial(b) |
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22,518 |
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986,288
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UMB
Financial Corp.(b) |
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7,739 |
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638,003
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Wells
Fargo & Co.(b) |
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12,276 |
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735,578
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4,833,076
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Data
Processing, Hosting & Related Services — 1.0% |
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Kyndryl
Holdings, Inc.(a) |
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11,358 |
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302,236
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Pagseguro
Digital Ltd. - Class A(a)(b) |
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66,306 |
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812,249
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1,114,485
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Educational
Services — 0.7% |
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Grand
Canyon Education, Inc.(a)(b) |
|
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3,901 |
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555,737
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Stride,
Inc.(a)(b) |
|
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3,052 |
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209,550
|
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765,287
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Electrical
Equipment, Appliance, and Component Manufacturing — 0.9% |
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Powell
Industries, Inc.(b) |
|
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2,448 |
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440,297
|
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Resideo
Technologies, Inc.(a)(b) |
|
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24,095 |
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520,452
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960,749
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Fabricated
Metal Product Manufacturing — 1.3% |
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Griffon
Corp.(b) |
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10,367 |
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700,187
|
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Mueller
Industries, Inc.(b) |
|
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11,780 |
|
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693,960
|
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1,394,147
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Food
and Beverage Stores — 0.3% |
|
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Kroger
Co.(b) |
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5,441 |
|
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284,945
|
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The
accompanying notes are an integral part of these financial statements.
|
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|
2 |
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|
Convergence
Long/Short Equity ETF
Schedule
of Investments
As
of May 31, 2024 (Unaudited)
|
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Shares |
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Value |
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COMMON
STOCKS (Continued) |
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Food
Manufacturing — 2.9% |
|
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BellRing
Brands, Inc.(a)(b) |
|
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14,210 |
|
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$ 826,596
|
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Bunge
Global SA(b) |
|
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7,267 |
|
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781,856
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Pilgrim’s
Pride Corp.(a)(b) |
|
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21,174 |
|
|
760,782
|
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|
Tyson
Foods, Inc. - Class A(b) |
|
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12,658 |
|
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724,670
|
|
|
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|
3,093,904
|
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Funds,
Trusts, and Other Financial Vehicles — 0.5% |
|
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Garmin
Ltd.(b) |
|
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2,355 |
|
|
385,866
|
|
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Incyte
Corp.(a)(b) |
|
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1,844 |
|
|
106,565
|
|
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|
492,431
|
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General
Merchandise Retailers — 1.3% |
|
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Walmart,
Inc.(b) |
|
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20,305 |
|
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1,335,257
|
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Heavy
and Civil Engineering Construction — 0.6% |
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|
Sterling
Infrastructure, Inc.(a)(b) |
|
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5,571 |
|
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684,509
|
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|
Hospitals
— 1.2% |
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Tenet
Healthcare Corp.(a)(b) |
|
|
5,374 |
|
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726,672
|
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Universal
Health Services, Inc. - Class B(b) |
|
|
2,910 |
|
|
552,318
|
|
|
|
|
|
|
1,278,990
|
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Insurance
Carriers and Related Activities — 6.0% |
|
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Allstate
Corp.(b) |
|
|
3,253 |
|
|
544,943
|
|
|
Centene
Corp.(a)(b) |
|
|
8,527 |
|
|
610,448
|
|
|
CNA
Financial Corp.(b) |
|
|
10,695 |
|
|
491,328
|
|
|
Corebridge
Financial, Inc.(b) |
|
|
32,250 |
|
|
940,733
|
|
|
F&G
Annuities & Life, Inc.(b) |
|
|
3,647 |
|
|
147,375
|
|
|
Frontdoor,
Inc.(a)(b) |
|
|
17,945 |
|
|
634,715
|
|
|
HealthEquity,
Inc.(a)(b) |
|
|
6,563 |
|
|
536,066
|
|
|
MGIC
Investment Corp.(b) |
|
|
42,622 |
|
|
895,062
|
|
|
Progressive
Corp.(b) |
|
|
1,622 |
|
|
342,534
|
|
|
Prudential
Financial, Inc.(b) |
|
|
6,021 |
|
|
724,627
|
|
|
Reinsurance
Group of America, Inc.(b) |
|
|
2,524 |
|
|
529,535
|
|
|
|
|
|
|
6,397,366
|
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Machinery
Manufacturing — 2.7% |
|
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| ||
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Applied
Materials, Inc.(b) |
|
|
10,787 |
|
|
2,320,068
|
|
|
Caterpillar,
Inc.(b) |
|
|
1,468 |
|
|
496,947
|
|
|
|
|
|
|
2,817,015
|
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Merchant
Wholesalers, Durable Goods — 2.8% |
|
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Core
& Main, Inc. - Class A(a)(b) |
|
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9,148 |
|
|
526,559
|
|
|
GMS,
Inc.(a)(b) |
|
|
4,934 |
|
|
463,598
|
|
|
TD
SYNNEX Corp.(b) |
|
|
15,170 |
|
|
1,984,843
|
|
|
|
|
|
|
2,975,000
|
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|
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|
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The
accompanying notes are an integral part of these financial statements.
|
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|
3 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Investments
As
of May 31, 2024 (Unaudited)
|
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|
Shares |
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Value |
| |
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COMMON
STOCKS (Continued) |
| ||||||
|
Merchant
Wholesalers, Nondurable Goods — 2.2% |
|
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|
|
| ||
|
Amneal
Pharmaceuticals, Inc.(a)(b) |
|
|
86,847 |
|
|
$ 580,138
|
|
|
Cencora,
Inc.(b) |
|
|
2,397 |
|
|
543,088
|
|
|
Domino’s
Pizza, Inc.(b) |
|
|
882 |
|
|
448,568
|
|
|
McKesson
Corp.(b) |
|
|
1,356 |
|
|
772,364
|
|
|
|
|
|
|
2,344,158
|
| ||
|
Mining
(except Oil and Gas) — 1.8% |
|
|
|
|
| ||
|
Alpha
Metallurgical Resources, Inc.(b) |
|
|
1,056 |
|
|
333,073
|
|
|
Freeport-McMoRan,
Inc.(b) |
|
|
9,457 |
|
|
498,668
|
|
|
Knife
River Corp.(a)(b) |
|
|
8,081 |
|
|
571,407
|
|
|
Newmont
Corp.(b) |
|
|
10,967 |
|
|
459,956
|
|
|
|
|
|
|
1,863,104
|
| ||
|
Miscellaneous
Manufacturing — 0.8% |
|
|
|
|
| ||
|
Johnson
& Johnson(b) |
|
|
5,987 |
|
|
878,113
|
|
|
Motor
Vehicle and Parts Dealers — 1.6% |
|
|
|
|
| ||
|
Carvana
Co.(a)(b) |
|
|
8,560 |
|
|
855,829
|
|
|
Murphy
USA, Inc.(b) |
|
|
2,002 |
|
|
878,377
|
|
|
|
|
|
|
1,734,206
|
| ||
|
Nonmetallic
Mineral Product Manufacturing — 0.5% |
|
|
|
|
| ||
|
Corning,
Inc. |
|
|
4,004 |
|
|
149,189
|
|
|
Eagle
Materials, Inc.(b) |
|
|
1,671 |
|
|
388,324
|
|
|
|
|
|
|
537,513
|
| ||
|
Nonstore
Retailers — 3.4% |
|
|
|
|
| ||
|
Amazon.com,
Inc.(a)(b) |
|
|
18,855 |
|
|
3,326,776
|
|
|
eBay,
Inc.(b) |
|
|
4,770 |
|
|
258,630
|
|
|
|
|
|
|
3,585,406
|
| ||
|
Oil
and Gas Extraction — 1.5% |
|
|
|
|
| ||
|
Marathon
Oil Corp.(b) |
|
|
27,529 |
|
|
797,240
|
|
|
SM
Energy Co.(b) |
|
|
15,666 |
|
|
790,036
|
|
|
|
|
|
|
1,587,276
|
| ||
|
Other
Information Services — 2.1% |
|
|
|
|
| ||
|
Meta
Platforms, Inc. - Class A(b) |
|
|
4,465 |
|
|
2,084,396
|
|
|
Pinterest,
Inc. - Class A(a)(b) |
|
|
2,381 |
|
|
98,788
|
|
|
|
|
|
|
2,183,184
|
| ||
|
Paper
Manufacturing — 1.0% |
|
|
|
|
| ||
|
Boise
Cascade Co.(b) |
|
|
4,388 |
|
|
602,429
|
|
|
Sylvamo
Corp.(b) |
|
|
7,179 |
|
|
512,006
|
|
|
|
|
|
|
1,114,435
|
| ||
|
Petroleum
and Coal Products Manufacturing — 3.0% |
|
|
|
|
| ||
|
Exxon
Mobil Corp. |
|
|
6,619 |
|
|
776,144
|
|
|
Marathon
Petroleum Corp.(b) |
|
|
4,981 |
|
|
879,694
|
|
|
PBF
Energy, Inc. - Class A |
|
|
17,390 |
|
|
805,679
|
|
|
Valero
Energy Corp.(b) |
|
|
4,712 |
|
|
740,444
|
|
|
|
|
|
|
3,201,961
|
| ||
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
4 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Investments
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value |
| |
|
COMMON
STOCKS (Continued) |
| ||||||
|
Primary
Metal Manufacturing — 0.4% |
|
|
|
|
| ||
|
Steel
Dynamics, Inc.(b) |
|
|
3,110 |
|
|
$ 416,336
|
|
|
Professional,
Scientific, and Technical Services — 12.0% |
|
|
|
|
| ||
|
Alphabet,
Inc. - Class A(a)(b) |
|
|
17,144 |
|
|
2,957,340
|
|
|
Alphabet,
Inc. - Class C(a)(b) |
|
|
14,429 |
|
|
2,510,069
|
|
|
AppLovin
Corp. - Class A(a)(b) |
|
|
27,119 |
|
|
2,209,656
|
|
|
Booz
Allen Hamilton Holding Corp.(b) |
|
|
2,200 |
|
|
334,862
|
|
|
GoDaddy,
Inc. - Class A(a)(b) |
|
|
10,399 |
|
|
1,452,012
|
|
|
H&R
Block, Inc.(b) |
|
|
4,048 |
|
|
200,943
|
|
|
ICON
PLC(a)(b) |
|
|
2,615 |
|
|
849,404
|
|
|
Leidos
Holdings, Inc. |
|
|
3,616 |
|
|
531,733
|
|
|
Nutanix,
Inc. - Class A(a)(b) |
|
|
23,711 |
|
|
1,311,574
|
|
|
Science
Applications International Corp.(b) |
|
|
2,910 |
|
|
391,832
|
|
|
|
|
|
|
12,749,425
|
| ||
|
Publishing
Industries — 6.9% |
|
|
|
|
| ||
|
ACI
Worldwide, Inc.(a)(b) |
|
|
15,527 |
|
|
559,127
|
|
|
Appfolio,
Inc. - Class A(a)(b) |
|
|
931 |
|
|
212,566
|
|
|
Block,
Inc.(a) |
|
|
5,580 |
|
|
357,566
|
|
|
CommVault
Systems, Inc.(a)(b) |
|
|
4,699 |
|
|
505,542
|
|
|
Crowdstrike
Holdings, Inc. - Class A(a)(b) |
|
|
3,984 |
|
|
1,249,661
|
|
|
DocuSign,
Inc.(a)(b) |
|
|
17,455 |
|
|
955,487
|
|
|
Microsoft
Corp. |
|
|
8,523 |
|
|
3,538,153
|
|
|
|
|
|
|
7,378,102
|
| ||
|
Rail
Transportation — 0.5% |
|
|
|
|
| ||
|
Union
Pacific Corp.(b) |
|
|
2,367 |
|
|
551,085
|
|
|
Rental
and Leasing Services — 1.0% |
|
|
|
|
| ||
|
Netflix,
Inc.(a)(b) |
|
|
1,667 |
|
|
1,069,580
|
|
|
Securities,
Commodity Contracts, and Other Financial Investments and Related Activities — 3.8% |
|
|
|
|
| ||
|
Affiliated
Managers Group, Inc.(b) |
|
|
6,096 |
|
|
991,210
|
|
|
Hims
& Hers Health, Inc.(a)(b) |
|
|
36,280 |
|
|
704,558
|
|
|
Janus
Henderson Group PLC(b) |
|
|
10,694 |
|
|
358,249
|
|
|
Robinhood
Markets, Inc. - Class A(a)(b) |
|
|
14,705 |
|
|
307,334
|
|
|
SEI
Investments Co.(b) |
|
|
11,678 |
|
|
790,717
|
|
|
Tradeweb
Markets, Inc. - Class A(b) |
|
|
6,957 |
|
|
758,383
|
|
|
Victory
Capital Holdings, Inc. - Class A(b) |
|
|
1,909 |
|
|
99,325
|
|
|
|
|
|
|
4,009,776
|
| ||
|
Specialty
Trade Contractors — 2.1% |
|
|
|
|
| ||
|
EMCOR
Group, Inc.(b) |
|
|
2,163 |
|
|
840,672
|
|
|
IES
Holdings, Inc.(a)(b) |
|
|
4,684 |
|
|
714,076
|
|
|
Installed
Building Products, Inc.(b) |
|
|
1,453 |
|
|
307,803
|
|
|
TopBuild
Corp.(a)(b) |
|
|
885 |
|
|
369,886
|
|
|
|
|
|
|
2,232,437
|
| ||
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
5 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Investments
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value |
| |
|
COMMON
STOCKS (Continued) |
| ||||||
|
Support
Activities for Transportation — 0.4% |
|
|
|
|
| ||
|
Brink’s
Co.(b) |
|
|
4,549 |
|
|
$469,639
|
|
|
Telecommunications
— 1.5% |
|
|
|
|
| ||
|
AT&T,
Inc.(b) |
|
|
53,921 |
|
|
982,441
|
|
|
Doximity,
Inc. - Class A(a)(b) |
|
|
21,843 |
|
|
605,706
|
|
|
|
|
|
|
1,588,147
|
| ||
|
Transportation
Equipment Manufacturing — 1.4% |
|
|
|
|
| ||
|
Ford
Motor Co.(b) |
|
|
57,286 |
|
|
694,879
|
|
|
General
Motors Co.(b) |
|
|
15,803 |
|
|
710,977
|
|
|
Modine
Manufacturing Co.(a)(b) |
|
|
1,052 |
|
|
106,168
|
|
|
|
|
|
|
1,512,024
|
| ||
|
Utilities
— 2.7% |
|
|
|
|
| ||
|
Avista
Corp.(b) |
|
|
8,966 |
|
|
331,563
|
|
|
Exelon
Corp.(b) |
|
|
11,300 |
|
|
424,315
|
|
|
NextEra
Energy, Inc.(b) |
|
|
7,444 |
|
|
595,669
|
|
|
NRG
Energy, Inc.(b) |
|
|
4,152 |
|
|
336,312
|
|
|
Pinnacle
West Capital Corp.(b) |
|
|
6,532 |
|
|
515,114
|
|
|
Vistra
Corp.(b) |
|
|
7,056 |
|
|
699,108
|
|
|
|
|
|
|
2,902,081
|
| ||
|
Wood
Product Manufacturing — 0.9% |
|
|
|
|
| ||
|
Builders
FirstSource, Inc.(a)(b) |
|
|
1,443 |
|
|
232,020
|
|
|
Owens
Corning(b) |
|
|
3,761 |
|
|
681,004
|
|
|
|
|
|
|
913,024
|
| ||
|
TOTAL
COMMON STOCKS
(Cost
$107,396,381) |
|
|
|
|
119,234,378
|
| |
|
REAL
ESTATE INVESTMENT TRUSTS — 2.2% |
|
|
|
|
| ||
|
Real
Estate — 1.7% |
|
|
|
|
| ||
|
Gaming
and Leisure Properties, Inc.(b) |
|
|
8,954 |
|
|
402,035
|
|
|
National
Storage Affiliates Trust(b) |
|
|
10,701 |
|
|
391,442
|
|
|
Simon
Property Group, Inc.(b) |
|
|
2,522 |
|
|
381,604
|
|
|
STAG
Industrial, Inc.(b) |
|
|
10,482 |
|
|
367,499
|
|
|
Tanger,
Inc.(b) |
|
|
8,827 |
|
|
244,949
|
|
|
|
|
|
|
1,787,529
|
| ||
|
Securities,
Commodity Contracts, and Other Financial Investments
and
Related Activities — 0.5% |
| ||||||
|
Innovative
Industrial Properties, Inc.(b) |
|
|
5,062 |
|
|
545,583
|
|
|
TOTAL
REAL ESTATE INVESTMENT TRUSTS
(Cost
$2,245,688) |
|
|
|
|
2,333,112
|
| |
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
6 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Investments
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value |
| |
|
SHORT-TERM
INVESTMENTS — 0.1% |
|
|
|
|
| ||
|
Money
Market Funds — 0.1% |
|
|
|
|
| ||
|
First
American Government Obligations Fund -
Class X,
5.23%(c) |
|
|
80,064 |
|
|
$80,064
|
|
|
TOTAL
SHORT-TERM INVESTMENTS
(Cost
$80,064) |
|
|
|
|
80,064
|
| |
|
TOTAL
INVESTMENTS — 114.6%
(Cost
$109,722,133) |
|
|
|
|
121,647,554
|
| |
|
Liabilities
in Excess of Other Assets — (14.6)% |
|
|
|
|
(15,505,814)
|
| |
|
TOTAL
NET ASSETS — 100.0% |
|
|
|
|
$106,141,740 |
| |
|
|
|
|
|
|
|
|
|
Percentages
are stated as a percent of net assets.
PLC
- Public Limited Company
SA
- Sociedad Anónima
|
(a) |
Non-income producing
security. |
|
(b) |
All or a portion of
security has been pledged as collateral. The total value of assets committed as collateral as of May 31, 2024 is $103,610,384. |
|
(c) |
The rate shown represents
the 7-day effective yield as of May 31, 2024. |
The
accompanying notes are an integral part of these financial statements.
|
|
|
7 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Securities Sold Short
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
| |
|
COMMON
STOCKS — (47.4)% |
| ||||||
|
Accommodation
— (0.3)% |
|
|
|
|
| ||
|
Penn
Entertainment, Inc. |
|
|
(5,701) |
|
|
$ (99,767)
|
|
|
Vail
Resorts, Inc. |
|
|
(1,062) |
|
|
(200,421)
|
|
|
|
|
|
|
(300,188)
|
| ||
|
Administrative
and Support Services — (2.1)% |
|
|
|
|
| ||
|
ACV
Auctions, Inc. - Class A |
|
|
(6,851) |
|
|
(122,290)
|
|
|
Carlyle
Group, Inc. |
|
|
(5,655) |
|
|
(242,939)
|
|
|
Concentrix
Corp. |
|
|
(2,804) |
|
|
(171,969)
|
|
|
Fair
Isaac Corp. |
|
|
(348) |
|
|
(448,896)
|
|
|
Live
Nation Entertainment, Inc. |
|
|
(4,424) |
|
|
(414,706)
|
|
|
R1
RCM, Inc. |
|
|
(27,563) |
|
|
(354,460)
|
|
|
RB
Global, Inc. |
|
|
(2,885) |
|
|
(209,682)
|
|
|
Shift4
Payments, Inc. - Class A |
|
|
(4,489) |
|
|
(302,020)
|
|
|
|
|
|
|
(2,266,962)
|
| ||
|
Ambulatory
Health Care Services — (0.1)% |
|
|
|
|
| ||
|
agilon
health, Inc. |
|
|
(23,228) |
|
|
(146,336)
|
|
|
Amusement,
Gambling, and Recreation Industries — (0.1)% |
|
|
|
|
| ||
|
Planet
Fitness, Inc. - Class A |
|
|
(1,995) |
|
|
(126,962)
|
|
|
Apparel
Manufacturing — (0.1)% |
|
|
|
|
| ||
|
VF
Corp. |
|
|
(11,404) |
|
|
(151,445)
|
|
|
Beverage
and Tobacco Product Manufacturing — (0.3)% |
|
|
|
|
| ||
|
Brown-Forman
Corp. - Class B |
|
|
(5,922) |
|
|
(271,583)
|
|
|
Broadcasting
and Content Providers — (1.4)% |
|
|
|
|
| ||
|
Liberty
Broadband Corp. - Class C |
|
|
(7,478) |
|
|
(404,485)
|
|
|
Nexstar
Media Group, Inc. - Class A |
|
|
(1,917) |
|
|
(317,628)
|
|
|
Paramount
Global - Class B |
|
|
(35,620) |
|
|
(424,234)
|
|
|
Warner
Bros Discovery, Inc. |
|
|
(46,123) |
|
|
(380,053)
|
|
|
|
|
|
|
(1,526,400)
|
| ||
|
Chemical
Manufacturing — (3.4)% |
|
|
|
|
| ||
|
10X
Genomics, Inc. - Class A |
|
|
(7,843) |
|
|
(175,840)
|
|
|
Air
Products and Chemicals, Inc. |
|
|
(879) |
|
|
(234,429)
|
|
|
Albemarle
Corp. |
|
|
(2,502) |
|
|
(306,720)
|
|
|
Arrowhead
Pharmaceuticals, Inc. |
|
|
(6,357) |
|
|
(145,893)
|
|
|
Bio-Techne
Corp. |
|
|
(6,628) |
|
|
(511,615)
|
|
|
Bridgebio
Pharma, Inc. |
|
|
(8,191) |
|
|
(229,430)
|
|
|
Estee
Lauder Cos., Inc. - Class A |
|
|
(1,831) |
|
|
(225,872)
|
|
|
FMC
Corp. |
|
|
(2,866) |
|
|
(174,683)
|
|
|
Intellia
Therapeutics, Inc. |
|
|
(6,341) |
|
|
(135,571)
|
|
|
Inter
Parfums, Inc. |
|
|
(1,789) |
|
|
(214,287)
|
|
|
Kenvue,
Inc. |
|
|
(9,471) |
|
|
(182,790)
|
|
|
QuidelOrtho
Corp. |
|
|
(5,674) |
|
|
(250,734)
|
|
|
Rogers
Corp. |
|
|
(1,772) |
|
|
(209,096)
|
|
|
Zoetis,
Inc. |
|
|
(3,808) |
|
|
(645,685)
|
|
|
|
|
|
|
(3,642,645)
|
| ||
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
8 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Securities Sold Short
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
| |
|
COMMON
STOCKS (Continued) |
| ||||||
|
Clothing,
Clothing Accessories, Shoe and Jewelry Retailers — (0.7)% |
|
|
|
|
| ||
|
Boot
Barn Holdings, Inc. |
|
|
(4,180) |
|
|
$(497,128)
|
|
|
Foot
Locker, Inc. |
|
|
(8,455) |
|
|
(234,457)
|
|
|
|
|
|
|
(731,585)
|
| ||
|
Computer
and Electronic Product Manufacturing — (9.3)% |
|
|
|
|
| ||
|
Advanced
Energy Industries, Inc. |
|
|
(1,848) |
|
|
(198,531)
|
|
|
Allegro
MicroSystems, Inc. |
|
|
(13,625) |
|
|
(410,657)
|
|
|
Bio-Rad
Laboratories, Inc. - Class A |
|
|
(921) |
|
|
(264,198)
|
|
|
Bloom
Energy Corp. - Class A |
|
|
(12,912) |
|
|
(210,724)
|
|
|
Cognex
Corp. |
|
|
(7,981) |
|
|
(363,295)
|
|
|
Danaher
Corp. |
|
|
(803) |
|
|
(206,210)
|
|
|
EchoStar
Corp. - Class A |
|
|
(30,148) |
|
|
(578,842)
|
|
|
Enphase
Energy, Inc. |
|
|
(612) |
|
|
(78,275)
|
|
|
First
Solar, Inc. |
|
|
(1,727) |
|
|
(469,329)
|
|
|
GLOBALFOUNDRIES,
Inc. |
|
|
(14,734) |
|
|
(721,966)
|
|
|
Intel
Corp. |
|
|
(29,408) |
|
|
(907,237)
|
|
|
Kulicke
& Soffa Industries, Inc. |
|
|
(15,698) |
|
|
(716,928)
|
|
|
Lumentum
Holdings, Inc. |
|
|
(14,192) |
|
|
(617,352)
|
|
|
Masimo
Corp. |
|
|
(1,396) |
|
|
(173,802)
|
|
|
Microchip
Technology, Inc. |
|
|
(8,585) |
|
|
(834,720)
|
|
|
Palo
Alto Networks, Inc. |
|
|
(1,634) |
|
|
(481,883)
|
|
|
Revvity,
Inc. |
|
|
(4,419) |
|
|
(482,820)
|
|
|
Texas
Instruments, Inc. |
|
|
(2,424) |
|
|
(472,704)
|
|
|
Viasat,
Inc. |
|
|
(21,513) |
|
|
(363,355)
|
|
|
Vishay
Intertechnology, Inc. |
|
|
(11,788) |
|
|
(278,550)
|
|
|
Wolfspeed,
Inc. |
|
|
(19,329) |
|
|
(496,755)
|
|
|
Zebra
Technologies Corp. - Class A |
|
|
(1,752) |
|
|
(547,220)
|
|
|
|
|
|
|
(9,875,353)
|
| ||
|
Construction
of Buildings — (0.1)% |
|
|
|
|
| ||
|
LGI
Homes, Inc. |
|
|
(1,448) |
|
|
(139,008)
|
|
|
Credit
Intermediation and Related Activities — (2.5)% |
|
|
|
|
| ||
|
Ally
Financial, Inc. |
|
|
(4,839) |
|
|
(188,576)
|
|
|
Banc
of California, Inc. |
|
|
(17,105) |
|
|
(237,075)
|
|
|
Credit
Acceptance Corp. |
|
|
(418) |
|
|
(205,167)
|
|
|
First
Citizens BancShares, Inc./NC - Class A |
|
|
(159) |
|
|
(270,051)
|
|
|
FNB
Corp./PA |
|
|
(15,686) |
|
|
(215,996)
|
|
|
Pacific
Premier Bancorp, Inc. |
|
|
(9,387) |
|
|
(208,767)
|
|
|
PennyMac
Financial Services, Inc. |
|
|
(3,034) |
|
|
(275,032)
|
|
|
Seacoast
Banking Corp. of Florida |
|
|
(8,810) |
|
|
(208,533)
|
|
|
Truist
Financial Corp. |
|
|
(6,967) |
|
|
(263,004)
|
|
|
United
Community Banks, Inc./GA |
|
|
(6,642) |
|
|
(170,434)
|
|
|
WaFd,
Inc. |
|
|
(5,682) |
|
|
(159,153)
|
|
|
Western
Alliance Bancorp |
|
|
(3,312) |
|
|
(208,755)
|
|
|
|
|
|
|
(2,610,543)
|
| ||
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
9 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Securities Sold Short
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
| |
|
COMMON
STOCKS (Continued) |
| ||||||
|
Data
Processing, Hosting & Related Services — (0.8)% |
|
|
|
|
| ||
|
Five9,
Inc. |
|
|
(7,652) |
|
|
$(357,808)
|
|
|
Riot
Platforms, Inc. |
|
|
(46,425) |
|
|
(452,179)
|
|
|
|
|
|
|
(809,987)
|
| ||
|
Electrical
Equipment, Appliance, and Component Manufacturing — (0.4)% |
|
|
|
|
| ||
|
Fluence
Energy, Inc. |
|
|
(8,350) |
|
|
(209,835)
|
|
|
Novanta,
Inc. |
|
|
(1,392) |
|
|
(225,727)
|
|
|
|
|
|
|
(435,562)
|
| ||
|
Fabricated
Metal Product Manufacturing — (0.4)% |
|
|
|
|
| ||
|
Chart
Industries, Inc. |
|
|
(1,692) |
|
|
(265,695)
|
|
|
Emerson
Electric Co. |
|
|
(1,690) |
|
|
(189,550)
|
|
|
|
|
|
|
(455,245)
|
| ||
|
Food
and Beverage Stores — (0.2)% |
|
|
|
|
| ||
|
Grocery
Outlet Holding Corp. |
|
|
(10,066) |
|
|
(221,351)
|
|
|
Food
Manufacturing — (1.1)% |
|
|
|
|
| ||
|
Darling
Ingredients, Inc. |
|
|
(8,859) |
|
|
(357,903)
|
|
|
Hershey
Co. |
|
|
(1,330) |
|
|
(263,114)
|
|
|
J
M Smucker Co. |
|
|
(2,084) |
|
|
(232,658)
|
|
|
Lamb
Weston Holdings, Inc. |
|
|
(3,089) |
|
|
(272,728)
|
|
|
|
|
|
|
(1,126,403)
|
| ||
|
Food
Services and Drinking Places — (0.4)% |
|
|
|
|
| ||
|
Starbucks
Corp. |
|
|
(4,747) |
|
|
(380,804)
|
|
|
Furniture,
Home Furnishings, Electronics, and Appliance Retailers — (1.0)% |
|
|
|
|
| ||
|
Floor
& Decor Holdings, Inc. - Class A |
|
|
(4,309) |
|
|
(503,550)
|
|
|
RH |
|
|
(1,902) |
|
|
(517,211)
|
|
|
|
|
|
|
(1,020,761)
|
| ||
|
General
Merchandise Retailers — (0.7)% |
|
|
|
|
| ||
|
Dollar
General Corp. |
|
|
(1,410) |
|
|
(193,043)
|
|
|
Dollar
Tree, Inc. |
|
|
(1,959) |
|
|
(231,064)
|
|
|
Five
Below, Inc. |
|
|
(2,045) |
|
|
(282,476)
|
|
|
|
|
|
|
(706,583)
|
| ||
|
Heavy
and Civil Engineering Construction — (0.1)% |
|
|
|
|
| ||
|
Howard
Hughes Holdings, Inc. |
|
|
(1,085) |
|
|
(71,936)
|
|
|
Insurance
Carriers and Related Activities — (1.0)% |
|
|
|
|
| ||
|
Arthur
J Gallagher & Co. |
|
|
(691) |
|
|
(175,051)
|
|
|
Kinsale
Capital Group, Inc. |
|
|
(403) |
|
|
(154,599)
|
|
|
Lincoln
National Corp. |
|
|
(6,668) |
|
|
(219,977)
|
|
|
RenaissanceRe
Holdings Ltd. |
|
|
(1,188) |
|
|
(270,698)
|
|
|
Ryan
Specialty Holdings, Inc. |
|
|
(1,123) |
|
|
(62,360)
|
|
|
Willis
Towers Watson PLC |
|
|
(668) |
|
|
(170,534)
|
|
|
|
|
|
|
(1,053,219)
|
| ||
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
10 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Securities Sold Short
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
| |
|
COMMON
STOCKS (Continued) |
| ||||||
|
Leather
and Allied Product Manufacturing — (0.2)% |
|
|
|
|
| ||
|
Crocs,
Inc. |
|
|
(694) |
|
|
$(108,014)
|
|
|
Tapestry,
Inc. |
|
|
(1,865) |
|
|
(81,109)
|
|
|
|
|
|
|
(189,123)
|
| ||
|
Lessors
of Nonfinancial Intangible Assets (except Copyrighted
Works)
— (0.3)% |
|
|
|
|
| ||
|
Marathon
Digital Holdings, Inc. |
|
|
(16,989) |
|
|
(331,625)
|
|
|
Machinery
Manufacturing — (1.7)% |
|
|
|
|
| ||
|
Carrier
Global Corp. |
|
|
(4,149) |
|
|
(262,175)
|
|
|
Coherent
Corp. |
|
|
(11,007) |
|
|
(628,060)
|
|
|
General
Electric Co. |
|
|
(2,123) |
|
|
(350,592)
|
|
|
Hayward
Holdings, Inc. |
|
|
(10,998) |
|
|
(159,361)
|
|
|
Hillenbrand,
Inc. |
|
|
(5,641) |
|
|
(262,250)
|
|
|
Xylem,
Inc./NY |
|
|
(1,244) |
|
|
(175,429)
|
|
|
|
|
|
|
(1,837,867)
|
| ||
|
Management
of Companies and Enterprises — (0.5)% |
|
|
|
|
| ||
|
Rivian
Automotive, Inc. - Class A |
|
|
(21,669) |
|
|
(236,626)
|
|
|
U-Haul
Holding Co. |
|
|
(2,690) |
|
|
(163,525)
|
|
|
White
Mountains Insurance Group Ltd. |
|
|
(83) |
|
|
(149,981)
|
|
|
|
|
|
|
(550,132)
|
| ||
|
Merchant
Wholesalers, Durable Goods — (0.2)% |
|
|
|
|
| ||
|
NEXTracker,
Inc. - Class A |
|
|
(3,331) |
|
|
(183,771)
|
|
|
Mining
(except Oil and Gas) — (0.6)% |
|
|
|
|
| ||
|
Summit
Materials, Inc. - Class A |
|
|
(6,895) |
|
|
(266,423)
|
|
|
Uranium
Energy Corp. |
|
|
(30,358) |
|
|
(216,756)
|
|
|
Vulcan
Materials Co. |
|
|
(730) |
|
|
(186,712)
|
|
|
|
|
|
|
(669,891)
|
| ||
|
Miscellaneous
Manufacturing — (1.7)% |
|
|
|
|
| ||
|
Globus
Medical, Inc. - Class A |
|
|
(3,407) |
|
|
(228,644)
|
|
|
Inari
Medical, Inc. |
|
|
(3,877) |
|
|
(193,850)
|
|
|
Inspire
Medical Systems, Inc. |
|
|
(2,146) |
|
|
(340,763)
|
|
|
iRhythm
Technologies, Inc. |
|
|
(2,001) |
|
|
(176,508)
|
|
|
Neogen
Corp. |
|
|
(21,912) |
|
|
(288,143)
|
|
|
Penumbra,
Inc. |
|
|
(1,384) |
|
|
(262,226)
|
|
|
PROCEPT
BioRobotics Corp. |
|
|
(3,323) |
|
|
(220,647)
|
|
|
Topgolf
Callaway Brands Corp. |
|
|
(6,804) |
|
|
(106,483)
|
|
|
|
|
|
|
(1,817,264)
|
| ||
|
Motion
Picture and Sound Recording Industries — (0.4)% |
|
|
|
|
| ||
|
Take-Two
Interactive Software, Inc. |
|
|
(2,680) |
|
|
(429,765)
|
|
|
Motor
Vehicle and Parts Dealers — (0.8)% |
|
|
|
|
| ||
|
Advance
Auto Parts, Inc. |
|
|
(2,562) |
|
|
(180,980)
|
|
|
CarMax,
Inc. |
|
|
(4,621) |
|
|
(324,671)
|
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
11 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Securities Sold Short
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
| |
|
COMMON
STOCKS (Continued) |
| ||||||
|
Motor
Vehicle and Parts Dealers (Continued) |
| ||||||
|
Lithia
Motors, Inc. |
|
|
(1,235) |
|
|
$(312,628)
|
|
|
Sensata
Technologies Holding PLC |
|
|
(1,595) |
|
|
(65,905)
|
|
|
|
|
|
|
(884,184)
|
| ||
|
Oil
and Gas Extraction — (1.0)% |
|
|
|
|
| ||
|
Chesapeake
Energy Corp. |
|
|
(1,755) |
|
|
(159,582)
|
|
|
Dominion
Energy, Inc. |
|
|
(5,185) |
|
|
(279,575)
|
|
|
EQT
Corp. |
|
|
(6,931) |
|
|
(284,795)
|
|
|
Northern
Oil & Gas, Inc. |
|
|
(6,798) |
|
|
(278,242)
|
|
|
Range
Resources Corp. |
|
|
(2,692) |
|
|
(99,362)
|
|
|
|
|
|
|
(1,101,556)
|
| ||
|
Performing
Arts, Spectator Sports, and Related Industries — (0.9)% |
|
|
|
|
| ||
|
Caesars
Entertainment, Inc. |
|
|
(4,555) |
|
|
(161,976)
|
|
|
Churchill
Downs, Inc. |
|
|
(607) |
|
|
(78,606)
|
|
|
Madison
Square Garden Sports Corp. |
|
|
(1,905) |
|
|
(351,758)
|
|
|
TEGNA,
Inc. |
|
|
(24,870) |
|
|
(370,812)
|
|
|
|
|
|
|
(963,152)
|
| ||
|
Pipeline
Transportation — (0.1)% |
|
|
|
|
| ||
|
PNM
Resources, Inc. |
|
|
(2,636) |
|
|
(101,064)
|
|
|
Primary
Metal Manufacturing — (0.2)% |
|
|
|
|
| ||
|
Carpenter
Technology Corp. |
|
|
(1,382) |
|
|
(153,222)
|
|
|
Printing
and Related Support Activities — (0.1)% |
|
|
|
|
| ||
|
Permian
Resources Corp. |
|
|
(8,701) |
|
|
(142,609)
|
|
|
Professional,
Scientific, and Technical Services — (2.6)% |
|
|
|
|
| ||
|
Asana,
Inc. - Class A |
|
|
(29,596) |
|
|
(386,228)
|
|
|
Aspen
Technology, Inc. |
|
|
(2,622) |
|
|
(552,324)
|
|
|
Charles
River Laboratories International, Inc. |
|
|
(1,205) |
|
|
(251,170)
|
|
|
Gen
Digital, Inc. |
|
|
(11,551) |
|
|
(286,811)
|
|
|
REVOLUTION
Medicines, Inc. |
|
|
(7,480) |
|
|
(286,709)
|
|
|
Sotera
Health Co. |
|
|
(18,416) |
|
|
(205,891)
|
|
|
Ubiquiti,
Inc. |
|
|
(2,841) |
|
|
(406,718)
|
|
|
Unity
Software, Inc. |
|
|
(19,826) |
|
|
(362,221)
|
|
|
|
|
|
|
(2,738,072)
|
| ||
|
Publishing
Industries — (1.7)% |
|
|
|
|
| ||
|
Confluent,
Inc. - Class A |
|
|
(14,490) |
|
|
(376,306)
|
|
|
Dayforce,
Inc. |
|
|
(1,909) |
|
|
(94,419)
|
|
|
MicroStrategy,
Inc. - Class A |
|
|
(233) |
|
|
(355,206)
|
|
|
Paycor
HCM, Inc. |
|
|
(9,222) |
|
|
(114,076)
|
|
|
Synopsys,
Inc. |
|
|
(849) |
|
|
(476,119)
|
|
|
ZoomInfo
Technologies, Inc. |
|
|
(30,975) |
|
|
(380,373)
|
|
|
|
|
|
|
(1,796,499)
|
| ||
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
12 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Securities Sold Short
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
| |
|
COMMON
STOCKS (Continued) |
| ||||||
|
Real
Estate — (0.1)% |
|
|
|
|
| ||
|
Marriott
Vacations Worldwide Corp. |
|
|
(1,329) |
|
|
$(119,969)
|
|
|
Rental
and Leasing Services — (0.3)% |
|
|
|
|
| ||
|
Avis
Budget Group, Inc. |
|
|
(1,243) |
|
|
(141,366)
|
|
|
FTAI
Aviation Ltd. |
|
|
(2,003) |
|
|
(168,893)
|
|
|
|
|
|
|
(310,259)
|
| ||
|
Repair
and Maintenance — (0.3)% |
|
|
|
|
| ||
|
Mister
Car Wash, Inc. |
|
|
(12,892) |
|
|
(90,631)
|
|
|
Valvoline,
Inc. |
|
|
(5,579) |
|
|
(226,507)
|
|
|
|
|
|
|
(317,138)
|
| ||
|
Securities,
Commodity Contracts, and Other Financial Investments and Related Activities — (2.6)% |
|
|
|
|
| ||
|
Blackstone,
Inc. |
|
|
(2,701) |
|
|
(325,470)
|
|
|
Evercore,
Inc. - Class A |
|
|
(1,187) |
|
|
(240,890)
|
|
|
Goldman
Sachs Group, Inc. |
|
|
(676) |
|
|
(308,608)
|
|
|
Invesco
Ltd. |
|
|
(5,747) |
|
|
(90,285)
|
|
|
MarketAxess
Holdings, Inc. |
|
|
(1,505) |
|
|
(299,390)
|
|
|
Moelis
& Co. - Class A |
|
|
(5,487) |
|
|
(310,619)
|
|
|
Morgan
Stanley |
|
|
(3,043) |
|
|
(297,727)
|
|
|
Nasdaq,
Inc. |
|
|
(3,823) |
|
|
(225,672)
|
|
|
New
Fortress Energy, Inc. |
|
|
(9,392) |
|
|
(238,087)
|
|
|
Roivant
Sciences Ltd. |
|
|
(16,640) |
|
|
(172,390)
|
|
|
XP,
Inc. - Class A |
|
|
(11,528) |
|
|
(218,917)
|
|
|
|
|
|
|
(2,728,055)
|
| ||
|
Social
Assistance — (0.3)% |
|
|
|
|
| ||
|
IAC,
Inc. |
|
|
(6,898) |
|
|
(343,451)
|
|
|
Specialty
Trade Contractors — (0.2)% |
|
|
|
|
| ||
|
Sunrun,
Inc. |
|
|
(13,700) |
|
|
(198,102)
|
|
|
Support
Activities for Mining — (0.5)% |
|
|
|
|
| ||
|
Gulfport
Energy Corp. |
|
|
(1,693) |
|
|
(273,944)
|
|
|
Noble
Corp. PLC |
|
|
(4,877) |
|
|
(226,586)
|
|
|
|
|
|
|
(500,530)
|
| ||
|
Support
Activities for Transportation — (0.4)% |
|
|
|
|
| ||
|
GATX
Corp. |
|
|
(1,393) |
|
|
(192,178)
|
|
|
JB
Hunt Transport Services, Inc. |
|
|
(682) |
|
|
(109,632)
|
|
|
Norfolk
Southern Corp. |
|
|
(524) |
|
|
(117,795)
|
|
|
|
|
|
|
(419,605)
|
| ||
|
Telecommunications
— (0.3)% |
|
|
|
|
| ||
|
Cogent
Communications Holdings, Inc. |
|
|
(5,997) |
|
|
(355,142)
|
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
13 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Securities Sold Short
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
| |
|
COMMON
STOCKS (Continued) |
| ||||||
|
Transportation
Equipment Manufacturing — (1.2)% |
|
|
|
|
| ||
|
Boeing
Co. |
|
|
(3,149) |
|
|
$(559,294)
|
|
|
Fox
Factory Holding Corp. |
|
|
(3,568) |
|
|
(166,340)
|
|
|
Joby
Aviation, Inc. |
|
|
(12,910) |
|
|
(62,872)
|
|
|
Spirit
AeroSystems Holdings, Inc. - Class A |
|
|
(7,148) |
|
|
(216,727)
|
|
|
Tesla,
Inc. |
|
|
(1,340) |
|
|
(238,627)
|
|
|
|
|
|
|
(1,243,860)
|
| ||
|
Truck
Transportation — (0.3)% |
|
|
|
|
| ||
|
Knight-Swift
Transportation Holdings, Inc. |
|
|
(2,944) |
|
|
(142,048)
|
|
|
Maplebear,
Inc. |
|
|
(6,120) |
|
|
(186,538)
|
|
|
|
|
|
|
(328,586)
|
| ||
|
Utilities
— (1.1)% |
|
|
|
|
| ||
|
AES
Corp. |
|
|
(4,819) |
|
|
(104,042)
|
|
|
American
States Water Co. |
|
|
(1,281) |
|
|
(94,269)
|
|
|
Atmos
Energy Corp. |
|
|
(1,681) |
|
|
(194,862)
|
|
|
ONEOK,
Inc. |
|
|
(3,271) |
|
|
(264,951)
|
|
|
Sempra |
|
|
(6,734) |
|
|
(518,720)
|
|
|
|
|
|
|
(1,176,844)
|
| ||
|
Waste
Management and Remediation Services — (0.1)% |
|
|
|
|
| ||
|
Casella
Waste Systems, Inc. - Class A |
|
|
(1,192) |
|
|
(119,903)
|
|
|
Water
Transportation — (0.1)% |
|
|
|
|
| ||
|
Golden
Ocean Group Ltd. |
|
|
(8,609) |
|
|
(123,884)
|
|
|
Wood
Product Manufacturing — (0.1)% |
|
|
|
|
| ||
|
Louisiana-Pacific
Corp. |
|
|
(1,060) |
|
|
(97,181)
|
|
|
TOTAL
COMMON STOCKS
(Proceeds
$51,503,055) |
|
|
|
|
(50,343,166)
|
| |
|
REAL
ESTATE INVESTMENT TRUSTS — (1.9)% |
|
|
|
|
| ||
|
Credit
Intermediation and Related Activities — (0.3)% |
|
|
|
|
| ||
|
Hannon
Armstrong Sustainable Infrastructure Capital, Inc. |
|
|
(8,045) |
|
|
(267,818)
|
|
|
Forestry
and Logging — (0.1)% |
|
|
|
|
| ||
|
PotlatchDeltic
Corp. |
|
|
(2,543) |
|
|
(108,662)
|
|
|
Real
Estate — (1.3)% |
|
|
|
|
| ||
|
Annaly
Capital Management, Inc. |
|
|
(18,936) |
|
|
(373,039)
|
|
|
Healthcare
Realty Trust, Inc. |
|
|
(8,838) |
|
|
(143,441)
|
|
|
Healthpeak
Properties, Inc. |
|
|
(5,432) |
|
|
(108,097)
|
|
|
Independence
Realty Trust, Inc. |
|
|
(10,696) |
|
|
(178,623)
|
|
|
Realty
Income Corp. |
|
|
(3,335) |
|
|
(176,955)
|
|
|
SITE
Centers Corp. |
|
|
(10,426) |
|
|
(150,343)
|
|
|
Sun
Communities, Inc. |
|
|
(1,012) |
|
|
(119,406)
|
|
|
Ventas,
Inc. |
|
|
(1,604) |
|
|
(80,617)
|
|
|
|
|
|
|
(1,330,521)
|
| ||
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
14 |
|
|
Convergence
Long/Short Equity ETF
Schedule
of Securities Sold Short
As
of May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value
|
| |
|
REAL
ESTATE INVESTMENT TRUSTS (Continued) |
| ||||||
|
Securities,
Commodity Contracts, and Other Financial Investments and Related Activities — (0.1)% |
|
|
|
|
| ||
|
Americold
Realty Trust, Inc. |
|
|
(4,008) |
|
|
$(106,893)
|
|
|
Warehousing
and Storage — (0.1)% |
|
|
|
|
| ||
|
Extra
Space Storage, Inc. |
|
|
(946) |
|
|
(136,953)
|
|
|
TOTAL
REAL ESTATE INVESTMENT TRUSTS
(Proceeds
$1,867,391) |
|
|
|
|
(1,950,847)
|
| |
|
EXCHANGE
TRADED FUNDS — (0.0)%(a) |
|
|
|
|
| ||
|
iShares
Core S&P 500 ETF |
|
|
(1) |
|
|
(530)
|
|
|
Invesco
QQQ Trust Series 1 |
|
|
(1) |
|
|
(451)
|
|
|
TOTAL
EXCHANGE TRADED FUNDS
(Proceeds
$968) |
|
|
|
|
(981)
|
| |
|
TOTAL
SECURITIES SOLD SHORT — (49.3)%
(Proceeds
$53,371,414) |
|
|
|
|
$(52,294,994) |
| |
|
|
|
|
|
|
|
|
|
Percentages
are stated as a percent of net assets.
|
(a) |
Represents less than
0.05% of net assets. |
The
accompanying notes are an integral part of these financial statements.
|
|
|
15 |
|
|
Convergence
Long/Short Equity ETF
Statement
of Assets and Liabilities
May 31,
2024 (Unaudited)
|
|
| |||
|
| ||||
|
Assets |
|
|
| |
|
Investments,
at value (cost $109,722,133) |
|
|
$121,647,554
|
|
|
Receivable
for investments sold |
|
|
6,108,152
|
|
|
Deposit
for short sales at broker |
|
|
33,574,611
|
|
|
Dividends
and interest receivable |
|
|
191,440
|
|
|
Receivable
for Fund shares sold |
|
|
8,345,680
|
|
|
Total
assets |
|
|
169,867,437
|
|
|
Liabilities |
|
|
| |
|
Securities
sold short, at value (proceeds $53,371,414) |
|
|
52,294,994
|
|
|
Payable
for investments purchased |
|
|
11,325,322
|
|
|
Dividends
payable on short positions |
|
|
33,617
|
|
|
Payable
to Adviser |
|
|
71,764
|
|
|
Total
liabilities |
|
|
63,725,697
|
|
|
Net
Assets |
|
|
$106,141,740
|
|
|
Net
Assets Consist of: |
|
|
| |
|
Paid-in
capital |
|
|
92,138,012
|
|
|
Total
distributable earnings |
|
|
14,003,728
|
|
|
Net
Assets |
|
|
$106,141,740
|
|
|
Shares
of beneficial interest outstanding (unlimited number of shares authorized,
$0.001
par value) |
|
|
5,087,329
|
|
|
Net
asset value, redemption price and offering price per share |
|
|
$20.86 |
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
16 |
|
|
Convergence
Long/Short Equity ETF
Statement
of Operations
For
the Six Months Ended May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
Investment
Income |
|
|
| |
|
Dividend
income |
|
|
$486,728
|
|
|
Prime
broker interest income |
|
|
410,080
|
|
|
Interest
Income |
|
|
10,142
|
|
|
Total
Investment Income |
|
|
906,950
|
|
|
Expenses |
|
|
| |
|
Management
fees |
|
|
278,626
|
|
|
Dividends
on short positions |
|
|
176,943
|
|
|
Other
expenses |
|
|
500
|
|
|
Total
Expenses |
|
|
456,069
|
|
|
Net
Investment Income |
|
|
450,881
|
|
|
Realized
and Unrealized Gain (Loss) on Investments |
|
|
| |
|
Net
realized gain (loss) from: |
|
|
| |
|
Investments |
|
|
1,603,694
|
|
|
In-kind
redemptions |
|
|
3,516,032
|
|
|
Short
transactions |
|
|
(2,635,498)
|
|
|
Change
in net unrealized appreciation (depreciation) on: |
|
|
| |
|
Investments |
|
|
7,945,574
|
|
|
Short
transactions |
|
|
84,408
|
|
|
Realized
and unrealized gain on investments |
|
|
10,514,210
|
|
|
Net
Increase in Net Assets from Operations |
|
|
$10,965,091 |
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
17 |
|
|
Statements
of Changes in Net Assets
|
|
|
|
|
| |||
|
|
|
Convergence
Long/Short Equity ETF |
| ||||
|
|
|
Six Months
Ended
May 31,
2024
(Unaudited) |
|
|
Year Ended
November 30,
2023 |
| |
|
From
Operations |
|
|
|
|
| ||
|
Net
investment income |
|
|
$450,881 |
|
|
$372,285
|
|
|
Net
realized gain (loss) from: |
|
|
|
|
| ||
|
Investments |
|
|
1,603,694 |
|
|
(1,792,565)
|
|
|
In-kind
redemptions |
|
|
3,516,032 |
|
|
4,103,411
|
|
|
Short
transactions |
|
|
(2,635,498) |
|
|
1,128,853
|
|
|
Change
in net unrealized appreciation (depreciation) on: |
|
|
|
|
| ||
|
Investments |
|
|
7,945,574 |
|
|
565,669
|
|
|
Short
transactions |
|
|
84,408 |
|
|
(1,480,089)
|
|
|
Net
increase in net assets from operations |
|
|
10,965,091 |
|
|
2,897,564
|
|
|
From
Distributions |
|
|
|
|
| ||
|
Net
dividend and distributions |
|
|
(389,482) |
|
|
(194,639)
|
|
|
Net
decrease in net assets resulting from distributions
paid |
|
|
(389,482) |
|
|
(194,639)
|
|
|
From
Capital Share Transactions |
|
|
|
|
| ||
|
Proceeds
from shares sold |
|
|
77,013,636 |
|
|
23,548,901
|
|
|
Net
asset value of shares issued in reinvestment of distributions to shareholders |
|
|
— |
|
|
—
|
|
|
Payments
for shares redeemed |
|
|
(13,289,473) |
|
|
(18,785,490)
|
|
|
Payments
for transaction fees (Note 8) |
|
|
798 |
|
|
46
|
|
|
Net
increase in net assets from capital share transactions |
|
|
63,724,961 |
|
|
4,763,457
|
|
|
Total
Increase In Net Assets |
|
|
74,300,570 |
|
|
7,466,382
|
|
|
Net
Assets |
|
|
|
|
| ||
|
Beginning
of period |
|
|
31,841,170 |
|
|
24,374,788
|
|
|
End
of period |
|
|
$106,141,740 |
|
|
$31,841,170 |
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
18 |
|
|
Convergence
Long/Short Equity ETF
Statement
of Cash Flows
For
the Six Months Ended May 31, 2024 (Unaudited)
|
|
|
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
| |
|
Net
decrease in net assets resulting from operations |
|
|
$10,965,091
|
|
|
Adjustments
to reconcile net increase in net assets from operations to net cash used in operating activities: |
|
|
| |
|
Purchases
of investments |
|
|
(177,751,169)
|
|
|
Purchases
of short-term investments, net |
|
|
464,364
|
|
|
Proceeds
from sales of long-term investments |
|
|
106,160,783
|
|
|
Return
of capital distributions received from underlying investments |
|
|
57,737
|
|
|
Increase
in dividends and interest receivable |
|
|
(131,505)
|
|
|
Increase
in receivable for investment securities sold |
|
|
(5,453,072)
|
|
|
Proceeds
from securities sold short |
|
|
88,216,738
|
|
|
Purchases
to cover securities sold short |
|
|
(53,625,782)
|
|
|
Increase
in payable for investment securities purchased |
|
|
10,290,657
|
|
|
Increase
in dividends payable on short positions |
|
|
13,438
|
|
|
Increase
in payable to Adviser |
|
|
49,323
|
|
|
Unrealized
depreciation on investments |
|
|
(7,945,574)
|
|
|
Unrealized
depreciation on short transactions |
|
|
(84,408)
|
|
|
Net
realized gain on investments |
|
|
(5,119,726)
|
|
|
Net
realized gain on short transactions |
|
|
2,635,498
|
|
|
Net
cash provided by operating activities |
|
|
(31,257,607)
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
| |
|
Proceeds
from shares sold |
|
|
69,008,992
|
|
|
Payment
on shares redeemed |
|
|
(13,289,473)
|
|
|
Proceeds
from transaction fees |
|
|
798
|
|
|
Cash
distributions paid to shareholders |
|
|
(389,482)
|
|
|
Net
cash used in financing activities |
|
|
55,330,835
|
|
|
Net
change in cash |
|
|
24,073,228
|
|
|
CASH: |
|
|
| |
|
Beginning
balance |
|
|
9,501,383
|
|
|
Ending
balance |
|
|
$33,574,611
|
|
|
SUPPLEMENTAL
DISCLOSURES: |
|
|
| |
|
Cash
paid for interest |
|
|
297,457
|
|
|
Non-cash
operating activities - purchases of investment securities in-kind |
|
|
(13,216,772)
|
|
|
Non-cash
operating activities - sales of investment securities in-kind |
|
|
82,453,948
|
|
|
Non-cash
financing activities - proceeds from shares sold in-kind |
|
|
(13,216,772)
|
|
|
Non-cash
financing activities - payment on shares redeemed in-kind |
|
|
82,453,948
|
|
|
RESTRICTED
AND UNRESTRICTED CASH |
|
|
| |
|
Beginning
balances |
|
|
| |
|
Cash |
|
|
—
|
|
|
Deposit
with brokers short sale proceeds |
|
|
9,501,383
|
|
|
Ending
balances |
|
|
| |
|
Cash |
|
|
—
|
|
|
Deposit
with brokers short sale proceeds |
|
|
33,574,611 |
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
|
19 |
|
|
Convergence
Long/Short Equity ETF
Financial
Highlights
Per
Share Data for a Share Outstanding Throughout Each Year/Period
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
Six months
ended
May 31,
2024
(Unaudited) |
|
|
Year ended
November 30, |
| |||||||||||||
|
|
|
2023 |
|
|
2022(6)
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
| ||||
|
Net
asset value, beginning of year/period |
|
|
$17.05 |
|
|
$15.45 |
|
|
$17.94 |
|
|
$14.03 |
|
|
$19.76 |
|
|
$19.83
|
|
|
Income
from investment operations: |
| ||||||||||||||||||
|
Net
investment income (loss)(1) |
|
|
0.15 |
|
|
0.23 |
|
|
0.07 |
|
|
(0.03) |
|
|
0.01 |
|
|
0.14
|
|
|
Net
realized and unrealized gain (loss) on investments |
|
|
3.86 |
|
|
1.49 |
|
|
0.31 |
|
|
3.98 |
|
|
(1.11) |
|
|
0.65
|
|
|
Total
from investment operations |
|
|
4.01 |
|
|
1.72 |
|
|
0.38 |
|
|
3.95 |
|
|
(1.10) |
|
|
0.79
|
|
|
Less
distributions paid: |
| ||||||||||||||||||
|
From
net investment income |
|
|
(0.20) |
|
|
(0.12) |
|
|
— |
|
|
(0.04) |
|
|
(0.13) |
|
|
(0.07)
|
|
|
From
net realized gains |
|
|
— |
|
|
— |
|
|
(2.87) |
|
|
— |
|
|
(4.50) |
|
|
(0.79)
|
|
|
Total
distributions paid |
|
|
(0.20) |
|
|
(0.12) |
|
|
(2.87) |
|
|
(0.04) |
|
|
(4.63) |
|
|
(0.86)
|
|
|
Net
asset value, end of
year/period |
|
|
$20.86 |
|
|
$17.05 |
|
|
$15.45 |
|
|
$17.94 |
|
|
$14.03 |
|
|
$19.76
|
|
|
Market
price, end of year/period |
|
|
$20.91 |
|
|
$17.04 |
|
|
$15.43 |
|
|
$— |
|
|
$— |
|
|
$—
|
|
|
Total
return on NAV(2)(7) |
|
|
23.85% |
|
|
11.28% |
|
|
2.39% |
|
|
28.26% |
|
|
(7.68)% |
|
|
4.72%
|
|
|
Total
return on market price(4)(7) |
|
|
24.19% |
|
|
11.40% |
|
|
2.20% |
|
|
—% |
|
|
—% |
|
|
—%
|
|
|
Supplemental
Data and Ratios: |
| ||||||||||||||||||
|
Net
assets at end of year/period (000’s) |
|
|
$106,142 |
|
|
$31,841 |
|
|
$24,375 |
|
|
$ 29,313 |
|
|
$ 22,537 |
|
|
$ 67,741
|
|
|
Ratio
of expenses to average net assets: |
| ||||||||||||||||||
|
Before
waiver, expense reimbursement and recoupments(3)(8) |
|
|
1.56% |
|
|
1.55% |
|
|
1.58% |
|
|
2.56% |
|
|
2.58% |
|
|
2.18%
|
|
|
After
waiver, expense reimbursement and recoupments(3)(8) |
|
|
1.56% |
|
|
1.55% |
|
|
1.38% |
|
|
2.11% |
|
|
2.39% |
|
|
2.18%
|
|
|
Ratio
of net investment income (loss) to average net assets: |
| ||||||||||||||||||
|
Before
waiver, expense reimbursement and recoupments(8) |
|
|
1.56% |
|
|
1.50% |
|
|
0.26% |
|
|
(0.63)% |
|
|
(0.13)% |
|
|
0.76%
|
|
|
After
waiver, expense reimbursement and recoupments(8) |
|
|
1.56% |
|
|
1.50% |
|
|
0.46% |
|
|
(0.18)% |
|
|
0.06% |
|
|
0.76%
|
|
|
Portfolio
turnover rate |
|
|
132.50%
(5)(7) |
|
|
283.70%
(5) |
|
|
244.44%
(5) |
|
|
303.76% |
|
|
251.72% |
|
|
239.08% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Per share net investment
income was calculated using the daily average shares outstanding method. |
|
(2) |
Total return on net
asset value (NAV) represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment
of dividends. |
|
(3) |
The ratio of expenses
to average net assets includes dividends on short positions, interest and broker expenses. The annualized before waiver, expense reimbursement
and recoupments and after waiver, expense reimbursement and recoupments ratios excluding dividends on short positions, interest and broker
expenses were 0.95% and 0.95%, 0.95% and 0.95%, 1.28% and 1.08%, 1.95% and 1.50%, 1.69% and 1.50%, 1.32% and 1.32%, for the years/periods
ended May 31, 2024, November 30, 2023, November 30, 2022, November 30, 2021, November 30, 2020, November 30,
2019, respectively. |
The
accompanying notes are an integral part of these financial statements.
|
|
|
20 |
|
|
|
(4) |
Total return on market
price is calculated assuming an initial investment made at the market price on the first day of the period, reinvestment of dividends
and distributions at market price during the period and redemption at market price on the last day of the period. |
|
(5) |
Excludes the impact
of in-kind transactions. |
|
(6) |
The Fund converted
from a mutual fund to an ETF pursuant to an Agreement and Plan of Reorganization on February 18, 2022. See Note 1 in the Notes
to Financial Statements for additional information about the Reorganization. |
|
(7) |
Not annualized for
periods less than a full year. |
|
(8) |
Annualized for periods
less than a full year. |
The
accompanying notes are an integral part of these financial statements.
|
|
|
21 |
|
|
CONVERGENCE
LONG/SHORT EQUITY ETF
Notes
to Financial Statements
May 31,
2024 (Unaudited)
(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 Convergence Long/Short Equity ETF (the “Fund”) represents a distinct diversified series with its own
investment objective, and policies within the Trust. The investment objective of the Fund is to seek long-term capital growth. The Fund
is an actively managed exchange-traded fund (“ETF”). The Trust may issue an unlimited number of shares of beneficial interest
at $0.001 par value.
Effective
February 18, 2022, the Fund converted from a mutual fund to an ETF, pursuant to an Agreement and Plan of Reorganization. The reorganization
was accomplished by a tax-free exchange of shares (with an exception for fractional mutual fund shares). The costs of the reorganization
were borne by the Fund’s investment adviser, Convergence Investment Partners, LLC (the “Adviser”). The reorganization
did not result in a material change to the investment portfolio. The mutual fund offered Institutional Class shares and commenced
operations on December 29, 2009. The following table illustrates the specifics of the reorganization of the mutual fund into the
ETF:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convergence
Long/Short
Equity Fund
Net Assets* |
|
|
Shares Issued
to Shareholders
of Convergence
Long/Short
Equity Fund |
|
|
Convergence
Long/Short
Equity ETF
Net Assets |
|
|
Combined
Net Assets |
|
|
Tax Status
of Transfer
|
|
|
|
$26,419,556 |
|
|
1,707,329 |
|
|
$
— |
|
|
$26,419,556
|
|
|
Non-Taxable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Includes accumulated net investment losses, accumulated
realized gains and unrealized appreciation in the amounts of $(86,871), $2,453,571, and $8,049,316, respectively. |
The
Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification Topic 946 “Financial Services – Investment Companies.”
(2)
Significant Accounting Policies
The
following is a summary of significant accounting policies consistently followed by the Fund 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 Fund, including long and short positions of common stock and real estate investment trusts, that is listed
on a securities exchange, except those listed on the NASDAQ Stock Market LLC (“NASDAQ”), 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 Fund will use the
price of the exchange that the Fund generally considers to be the principal exchange on which the stock is traded. |
Fund
securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price.
If there has been no sale on such exchange or on NASDAQ on such day, the security shall be valued at, (i) the mean between the most recent
quoted bid and asked prices at the close of the exchange on such day or (ii) the last sales price on the Composite Market for the
day such security is being valued. “Composite Market” means a consolidation of the trade information provided by national
securities and foreign exchanges and over-the-counter markets, as published by an approved independent pricing service (“Pricing
Service”).
Debt
securities, including short-term debt instruments having a maturity of 60 days or less, are valued at the mean in accordance with prices
supplied by a Pricing Service. Pricing Services may use various valuation methodologies such as the mean between the bid and
|
|
|
22 |
|
|
CONVERGENCE
LONG/SHORT EQUITY ETF
Notes
to Financial Statements
May
31, 2024 (Unaudited)(Continued)
the
asked prices, matrix pricing and other analytical pricing models as well as market transactions and dealer quotations. If a price is not
available from a Pricing Service, the most recent quotation obtained from one or more broker-dealers known to follow the issue will be
obtained. Quotations will be valued at the mean between the bid and the offer. In the absence of available quotations, the securities
will be priced at fair value, as described below. Any discount or premium is accreted or amortized using the constant yield method until
maturity.
Redeemable
securities issued by open-end, registered investment companies, including money market mutual funds are valued at the net asset value
(“NAV”) of such companies for purchase and/or redemption orders placed on that day. If, on a particular day, a share of an
investment company is not listed on NASDAQ, such security’s fair value will be determined as described below.
When
market quotations are not readily available, any security or other asset is valued at its fair value in accordance with Rule 2a-5
of the 1940 Act as determined under the Adviser’s fair value pricing procedures, subject to oversight 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
or world events cause the Adviser to believe that a security’s last sale price may not reflect its actual fair market value. The
intended effect of using fair value pricing procedures is to ensure that the Fund is accurately priced.
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 a Fund’s 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 Fund’s investments carried at fair value as of May 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
| |
|
Assets(1): |
|
|
|
|
|
|
|
|
| ||||
|
Common
Stock |
|
|
$119,234,378 |
|
|
$ — |
|
|
$ — |
|
|
$ 119,234,378
|
|
|
Real
Estate Investment Trusts |
|
|
2,333,112 |
|
|
— |
|
|
— |
|
|
2,333,112
|
|
|
Short-Term
Investments |
|
|
80,064 |
|
|
— |
|
|
— |
|
|
80,064
|
|
|
Total
Assets |
|
|
$
121,647,554 |
|
|
$— |
|
|
$— |
|
|
$
121,647,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23 |
|
|
CONVERGENCE
LONG/SHORT EQUITY ETF
Notes
to Financial Statements
May
31, 2024 (Unaudited)(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
| |
|
Liabilities: |
|
|
|
|
|
|
|
|
| ||||
|
Securities
Sold Short |
|
|
|
|
|
|
|
|
| ||||
|
Common
Stocks |
|
|
$(50,343,166) |
|
|
$— |
|
|
$— |
|
|
$(50,343,166)
|
|
|
Exchange
Traded Funds |
|
|
(1,950,847) |
|
|
— |
|
|
— |
|
|
(1,950,847)
|
|
|
Real
Estate Investment Trusts |
|
|
(981) |
|
|
— |
|
|
— |
|
|
(981)
|
|
|
Total
Securities Sold Short |
|
|
(52,294,994) |
|
|
— |
|
|
— |
|
|
(52,294,994)
|
|
|
Total
Liabilities |
|
|
$(52,294,994) |
|
|
$ — |
|
|
$ — |
|
|
$(52,294,994) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
See the Schedule of
Investments for industry classifications. |
The
Fund did not hold any Level 3 securities during the six months ended May 31, 2024.
Except
for securities sold short, the Fund did not engage in any derivative securities or engage in hedging activities during the six months
ended May 31, 2024.
|
(b) |
Short Positions.
The Fund may sell a security it does not own in anticipation of a decline in the fair value of that security. When the Fund sells a security
short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. A gain, limited
to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of a short
sale. For financial statement purposes, an amount equal to the settlement amount is included in the Statement of Assets and Liabilities
as a liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the short positions. Subsequent
fluctuations in the market prices of the securities sold, but not yet purchased, may require purchasing the securities at prices which
could differ from the amount reflected in the Statement of Assets and Liabilities. The Fund is liable for any dividends or interest payable
on securities while those securities are in a short position. Such amounts are recorded on the ex-dividend date as a dividend expense,
and interest expense is accrued daily. As collateral for its short positions, the Fund is required to maintain segregated assets consisting
of cash, cash equivalents or liquid securities. The segregated assets are valued consistent with Note 2a above. The amount of segregated
assets is required to be adjusted daily to the extent additional collateral is required based on the change in fair value of the securities
sold short. The Fund’s securities sold short and deposits for short sales are held with one major securities broker-dealer. The
Fund does not require this broker-dealer to maintain collateral in support of the receivable for proceeds on securities sold short. |
In
accordance with the terms of its prime brokerage agreements with broker-dealers, the Fund may receive rebate income or be charged a fee
for borrowed securities. Such income or fee is calculated on a daily basis based upon the market value of each borrowed security and a
variable rate that is dependent upon the availability of such security. The Fund records these prime broker charges on a net basis as
interest income or interest expense. During the current fiscal period the Fund has net income of $410,080 on borrowed securities which
is reflected in prime broker interest income on the Statement of Operations.
Rule 18f-4
imposes limits on the amount of derivatives a fund can enter into, eliminates the asset segregation framework currently used by funds
to comply with Section 18 of the 1940 Act, treats derivatives as senior securities and requires funds whose use of derivatives is
more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint
a derivatives risk manager. Effective August 19, 2022, the Fund has adopted a Full Derivatives Fund Program and the Adviser has nominated
a Derivatives Risk Manager.
|
|
|
24 |
|
|
CONVERGENCE
LONG/SHORT EQUITY ETF
Notes
to Financial Statements
May
31, 2024 (Unaudited)(Continued)
|
(c) |
Federal Income
Taxes. The Fund complies with the requirements of Subchapter M of the Internal Revenue Code, as amended, necessary to qualify as
a regulated investment company and makes 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 November 30, 2023, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes
interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the
year ended November 30, 2023, the Fund did not incur any interest or penalties. The Fund’s tax returns for the prior three
tax years remain subject to examinations by the Fund’s major tax jurisdictions, which include the Untied States of America and the
state of Delaware.
|
(d) |
Distributions
to Shareholders. The Fund will distribute any net investment income and any net 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 Fund may also pay a special distribution
at the end of the calendar year to comply with federal tax requirements. |
|
(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 the Fund is calculated by dividing the sum of the fair value of the securities held by the Fund, plus cash or other
assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for the Fund, rounded to
the nearest cent. The Fund’s shares will not be priced on the days on which the New York Stock Exchange is closed for trading. The
Fund does not charge a redemption fee, and therefore the offering and redemption price per share are equal to the Fund’s NAV per
share. |
|
(g) |
Allocation of
Income, Expenses and Gains/Losses. 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 Fund determines the gain or loss from investment transactions on the identified
cost basis by comparing original cost of the security lot sold with the net sale proceeds. Dividend income and expense is recognized on
the ex-dividend date and interest income and expense is recognized on an accrual basis. Dividend income from real estate investment trusts
(“REITs”) is recognized on the ex-date and included in dividend income. The calendar year-end classification of distributions
received from REITs during the fiscal year are reported subsequent to year end; accordingly, the Fund estimates the character of REIT
distributions based on the most recent information available and adjusts for actual classifications in the calendar year the information
is reported. |
Withholding
taxes on foreign dividends, net of any reclaims, have been provided for in accordance with the Fund’s understanding of the applicable
country’s tax rules and rates.
|
|
|
25 |
|
|
CONVERGENCE
LONG/SHORT EQUITY ETF
Notes
to Financial Statements
May
31, 2024 (Unaudited)(Continued)
(3)
Federal Tax Matters
The
tax character of distributions paid by the Fund during the fiscal years ended November 30, 2023 and November 30, 2022 was as
follows:
|
|
|
|
|
| |||
|
|
|
November 30,
|
| ||||
|
|
2023 |
|
|
2022 |
| ||
|
Ordinary
Income |
|
|
$194,639 |
|
|
$2,017,958
|
|
|
Long-Term
Capital Gain |
|
|
$— |
|
|
$2,701,201 |
|
|
|
|
|
|
|
|
|
|
As
of November 30, 2023, the components of distributable earnings on a tax basis were as follows:
|
|
|
|
|
|
|
Cost
basis of investments for federal income tax purposes(1) |
|
|
$17,769,691
|
|
|
Gross
tax unrealized appreciation |
|
|
$5,974,707
|
|
|
Gross
tax unrealized depreciation |
|
|
(1,383,377)
|
|
|
Net
tax unrealized appreciation |
|
|
4,591,330
|
|
|
Undistributed
ordinary income |
|
|
316,173
|
|
|
Undistributed
long-term capital gain |
|
|
—
|
|
|
Total
distributable earnings |
|
|
316,173
|
|
|
Other
accumulated losses |
|
|
(1,479,384)
|
|
|
Total
distributable earnings |
|
|
$3,428,119 |
|
|
|
|
|
|
|
|
(1) |
Includes securities
sold short. |
The
tax basis of distributable earnings for tax and financial reporting purposes differs principally due to the deferral of losses on wash
sales.
At
November 30, 2023, the Fund had short-term capital loss carryovers of $1,454,394.
Income
and capital gains distributions may differ from GAAP, primarily due to timing differences in the recognition of income, gains and losses,
and tax equalization by the Fund. To the extent that these differences are attributable to permanent book and tax accounting differences,
the components of net assets have been adjusted. Additionally, GAAP requires that certain components of net assets relating to permanent
differences be reclassified between financial and tax reporting. These reclassifications are due to redemptions in-kind and excise tax
expense have no effect on net assets or NAV per share. For the year ended November 30, 2023, the following table shows the reclassifications
made:
|
|
|
|
|
|
|
Paid-in
capital |
|
|
$3,957,678
|
|
|
Total
distributable earnings |
|
|
$(3,957,678) |
|
|
|
|
|
|
|
(4)
Investment Adviser
The
Trust has an Investment Advisory Agreement (the “Agreement”) with the Adviser to furnish investment advisory services to the
Fund. For the six months ended May 31, 2024, under the terms of the Agreement, the Fund compensated the Adviser for its management
services at the annual rate of 0.95% of the Fund’s average daily net assets.
|
|
|
26 |
|
|
CONVERGENCE
LONG/SHORT EQUITY ETF
Notes
to Financial Statements
May
31, 2024 (Unaudited)(Continued)
(5)
Related Party Transactions
U.S.
Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services” or the “Administrator”),
acts as the Fund’s administrator under an Administration Agreement. The Administrator prepares various federal and state regulatory
filings, reports and returns for the Fund; prepares reports and materials to be supplied to the Trustees; monitors the activities of the
Fund’s custodian, transfer agent and accountants; coordinates the preparation and payment of the Fund’s expenses and reviews
the Fund’s expense accruals. Fund Services also serves as the fund accountant and transfer agent to the Fund. U.S. Bank National
Association (“U.S. Bank”), an affiliate of Fund Services, serves as the Fund’s custodian. The Trust’s Chief Compliance
Officer is also an employee of Fund Services. Fees incurred for these services are paid by the Adviser.
Certain
officers of the Fund are also employees of Fund Services. A Trustee of the Trust is affiliated with Fund Services and U.S. Bank.
(6)
Capital Share Transactions
Transactions
in the Fund were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
May 31,
2024 |
|
|
Year Ended
November 30,
2023 |
| |
|
Shares
sold |
|
|
3,920,000 |
|
|
1,520,000
|
|
|
Shares
reinvested |
|
|
— |
|
|
—
|
|
|
Shares
redeemed |
|
|
(700,000) |
|
|
(1,230,000)
|
|
|
Net
increase |
|
|
3,220,000 |
|
|
290,000 |
|
|
|
|
|
|
|
|
|
|
(7)
Investment Transactions
The
aggregate purchases and sales of securities (excluding short-term investments and securities sold short), creations in-kind and redemptions
in-kind for the Fund for the six months ended May 31, 2024 is summarized below. There were no purchases or sales of U.S. government
securities for the Fund.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases |
|
|
Sales |
|
|
Creations
In-Kind |
|
|
Redemptions
In-Kind |
|
|
|
$95,297,222 |
|
|
$92,944,012 |
|
|
$82,453,948 |
|
|
$13,216,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
Creation and Redemption Transactions
Shares
of the Fund are listed and traded on the Cboe BZX Exchange, Inc. (the “Exchange”). The Fund issues and redeems shares on a
continuous basis at NAV only in large blocks of shares called “Creation Units.” A Creation Unit generally consists of 10,000
shares. Creation Units are to be issued and redeemed principally in kind for a basket of securities and a balancing cash amount. Shares
generally will trade in the secondary market in amounts less than a Creation Unit at market prices that change throughout the day. Market
prices for the shares may be different from their NAV. The NAV is determined as of the close of trading (generally, 4:00 p.m. Eastern
Time) on each day the NYSE is open for trading. The NAV of the shares of the Fund will be equal to the Fund’s total assets minus
the Fund’s total liabilities divided by the total number of shares outstanding. The NAV that is published will be rounded to the
nearest cent; however, for purposes of determining the price of Creation Units, the NAV will be calculated to five decimal places.
Only
“Authorized Participants” may purchase or redeem shares directly from the Fund. An Authorized Participant is either (i) a
broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of National Securities Clearing
Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail
investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units.
|
|
|
27 |
|
|
CONVERGENCE
LONG/SHORT EQUITY ETF
Notes
to Financial Statements
May
31, 2024 (Unaudited)(Continued)
Therefore,
they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the
secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees. Securities received or
delivered in connection with in-kind creates and redeems are valued as of the close of business on the effective date of the creation
or redemption.
Creation
Unit Transaction Fee
Authorized
Participants will be required to pay to the Custodian a fixed transaction fee (the “Creation Transaction Fee”) in connection
with the issuance of Creation Units. The standard Creation Transaction Fee will be the same regardless of the number of Creation Units
purchased by an investor on the applicable Business Day. The Creation Transaction Fee for the Fund is $300.
An
additional variable fee of up to a maximum of 2% of the value of the Creation Units subject to the transaction may be imposed for cash
purchases, non-standard orders, or partial purchase of Creation Units. The variable charge is primarily designed to cover additional costs
(e.g., brokerage, taxes) involved with buying the securities with cash. The Fund may determine to not charge a variable fee on certain
orders when the Adviser has determined that doing so is in the best interests of Fund shareholders.
A
creation unit will generally not be issued until the transfer of good title of the deposit securities to the Fund and the payment of any
cash amounts have been completed. To the extent contemplated by the applicable participant agreement, Creation Units of the Fund will
be issued to such authorized participant notwithstanding the fact that the Fund’s deposits have not been received in part or in
whole, in reliance on the undertaking of the authorized participant to deliver the missing deposit securities as soon as possible. If
the Fund or its agents do not receive all of the deposit securities, or the required cash amounts, by such time, then the order may be
deemed rejected and the authorized participant shall be liable to the Fund for losses, if any.
(9)
Recent Market Events
U.S.
and international markets have experienced and may continue to experience significant periods of volatility in recent years and months
due to a number of economic, political and global macro factors including uncertainty regarding inflation and central banks’ interest
rate increases, the possibility of a national or global recession, trade tensions, political events, the war between Russia and Ukraine,
significant conflict between Israel and Hamas in the Middle East, and the impact of the coronavirus (COVID-19) global pandemic. The impact
of COVID-19 may last for an extended period of time. As a result of continuing political tensions and armed conflicts, including the war
between Ukraine and Russia, the U.S. and the European Union imposed sanctions on certain Russian individuals and companies, including
certain financial institutions, and have limited certain exports and imports to and from Russia. The war has contributed to recent market
volatility and may continue to do so. These developments, as well as other events, could result in further market volatility and negatively
affect financial asset prices, the liquidity of certain securities and the normal operations of securities exchanges and other markets,
despite government efforts to address market disruptions. Continuing market volatility as a result of recent market conditions or other
events may have adverse effects on your account.
(10)
Subsequent Events
Management
has evaluated the Fund’s related events and transactions that occurred subsequent to May 31, 2024, through the date of issuance
of the Fund’s financial statements. Management has determined that there were no subsequent events requiring recognition or disclosure
in the financial statements.
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28 |
|
|
CONVERGENCE
LONG/SHORT EQUITY ETF
Additional
Information (Unaudited)
Tax
Information
For
the year ended November 30, 2023, the Fund designated 98.40% of its ordinary income distribution as qualified dividend income under
the Jobs and Growth Tax Relief Reconciliation Act of 2003.
For
the year ended November 30, 2023, 98.32% of dividends paid from net ordinary income for the Fund qualified for the dividends received
deduction available to corporate shareholders.
For
the fiscal year ended November 30, 2023, the Fund designated 0% of its taxable ordinary income distributions as short-term capital
gain distributions under Internal Revenue Code Section 871(k)(2)(c).
Indemnifications
Under
the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance
of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts that provide general indemnifications
to other parties. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be
made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and
expect the risk of loss to be remote.
|
|
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29 |
|
|
CONVERGENCE
LONG/SHORT EQUITY ETF
|
|
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|
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|
|
Investment
Adviser |
|
|
Convergence
Investment Partners, LLC
3801
PGA Boulevard
Suite
1001
Palm
Beach Gardens, Florida 33410 |
|
|
Legal
Counsel |
|
|
Godfrey
& Kahn, S.C.
833
East Michigan Street
Suite
1800
Milwaukee,
Wisconsin 53202 |
|
|
Independent
Registered Public Accounting Firm |
|
|
Cohen
& Company, Ltd.
342
North Water Street
Suite
830
Milwaukee,
Wisconsin 53202 |
|
|
Transfer
Agent, Fund Accountant and Fund Administrator |
|
|
U.S.
Bancorp Fund Services, LLC
615
East Michigan Street
Milwaukee,
Wisconsin 53202 |
|
|
Custodian |
|
|
U.S.
Bank National Association
Custody
Operations
1555
North River Center Drive
Milwaukee,
Wisconsin 53212 |
|
|
Distributor |
|
|
Foreside
Fund Services
Three
Canal Plaza
Suite
100
Portland,
Maine 04101 |
|
|
|
|
|
|
|
This
report is intended for shareholders of the Fund and may not be used as sales literature unless preceded or accompanied by a current prospectus.
|
|
|
30 |
|
|
| (b) | Financial Highlights are included within the financial statements filed under Item 7(a) of this Form. |
Item 8. Changes in and Disagreements with Accountants for Open-End Investment Companies.
There were no changes in or disagreements with accountants during the period covered by this report.
Item 9. Proxy Disclosure for Open-End Investment Companies
There were no matters submitted to a vote of shareholders during the period covered by this report.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Investment Companies.
This information is included within the financial statements filed under Item 7(a) of this Form.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 14. Purchases of Equity Securities by Closed–End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 15. 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 trustees.
Item 16. Controls and Procedures.
| (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 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 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable to open-end investment companies.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable
Item 19. Exhibits.
| (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. |
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) | Trust for Professional Managers |
| By (Signature and Title)* | /s/ John Buckel | ||
| John Buckel, Principal Executive |
| Date | 8/1/2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title)* | /s/ John Buckel | ||
| John Buckel, Principal Executive |
| Date | 8/1/2024 |
| By (Signature and Title)* | /s/ Jennifer Lima | ||
| Jennifer Lima, Principal Financial Officer |
| Date | 8/1/2024 |
* Print the name and title of each signing officer under his or her signature.