UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
| Investment Company Act file number: | 811-21335 |
| Exact name of registrant as specified in charter: | Optimum Fund Trust |
| Address of principal executive offices: |
610 Market Street |
| Name and address of agent for service: |
Anthony G. Ciavarelli, Esq. |
| Registrant’s telephone number, including area code: | (800) 523-1918 |
| Date of fiscal year end: | March 31 |
| Date of reporting period: | March 31, 2023 |
Item 1. Reports to Stockholders
Annual report
Optimum Fixed Income Fund
Optimum International Fund
Optimum Large Cap Growth Fund
Optimum Large Cap Value Fund
Optimum Small-Mid Cap Growth Fund
Optimum Small-Mid Cap Value Fund
March 31, 2023
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and, if available, their summary prospectuses, which may be obtained by visiting optimummutualfunds.com/ literature or calling 800 914-0278. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
The Funds are governed by US laws and regulations.
This annual report is for the information of Optimum Fund Trust shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Optimum Fund Trust and the fact sheet for the most recently completed calendar quarter. The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the investment company. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the investment company will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.
Unless otherwise noted, views expressed herein are current as of March 31, 2023, and subject to change for events occurring after such date.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested. Macquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is a full-service asset manager offering a diverse range of products across public and private markets including fixed income, equities, multi-asset solutions, private credit, infrastructure, renewables, natural assets, real estate, and asset finance. The Public Investments business is a part of MAM which includes investment products and advisory services distributed and offered by and referred through affiliates which include Delaware Distributors, L.P., a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA), and Macquarie Investment Management Business Trust (MIMBT), a Securities and Exchange Commission (SEC)-registered investment advisor. Investment advisory services are provided by a series of MIMBT. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
| All third-party marks cited are the property of their respective owners. | © 2023 Macquarie Management Holdings, Inc. |
| Optimum Fixed Income Fund | March 31, 2023 (Unaudited) |
Performance review (for the year ended March 31, 2023)
| Optimum Fixed Income Fund (Institutional Class shares)* | 1-year return | -6.01% |
| Optimum Fixed Income Fund (Class A shares)* | 1-year return | -6.21% |
| Bloomberg US Aggregate Index (benchmark) | 1-year return | -4.78% |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum Fixed Income Fund, please see the table on page 19.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 21 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
*Total returns for the report period presented in the table differs from the return in “Financial highlights.” The total returns presented in the above table are calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total returns presented in “Financial highlights” are calculated in the same manner, but also takes into account certain adjustments that are necessary under US generally accepted accounting principles (US GAAP) required in the annual report.
Fund objective
The Fund seeks a high level of income and may also seek growth of capital.
Advisor
Delaware Management Company (DMC)
Sub-advisor
Pacific Investment Management Company LLC (PIMCO)
Market review
Early 2022 started with concerns over the Omicron COVID-19 variant, together with a focus on inflation and monetary policy tightening. Central bank policy and persistent inflation remained key themes, which, along with geopolitical tumult, a strong US dollar, and COVID-related shutdowns in China, led to significant financial market volatility and the worst bond bear market in many years. The Russian invasion of Ukraine had a major impact on commodities, particularly the energy and agricultural markets, with prices soaring and supplies tightening. This, in addition to COVID-related shutdowns in China, affected the broader inflation picture with the headline US Consumer Price Index (CPI) hitting its highest levels in 40 years.
Throughout 2022, central banks prioritized controlling inflation over the risk of prompting an economic recession. The US Federal Reserve led monetary policy tightening with the upper end of the federal funds target range moving from 0.25% to 4.50%, the highest level since 2007. After pushing back against aggressive policy tightening in early 2022, the European Central Bank hiked its deposit rate from -0.50% to 2.00%.
In developed sovereign bonds, yields rose sharply on persistent inflation and tighter monetary policy. In fact, 2022 saw the largest-ever year-to-date drawdown in the history of the Bloomberg Global Aggregate Index, with a -13.6% trough in October. There was a positive monthly total return in only two months of 2022, and a negative return in every month of the first half of 2022.
The yield moves were led by the front end, as the US 2-year to 10-year Treasury curve inverted, which is historically associated with an increased risk of recession over the following 12-24 months. Risk assets broadly suffered from the combination of hawkish monetary policy, persistent inflation, poor growth expectations, and geopolitical events. Credit spreads widened across corporate, securitized, and emerging market bonds.
At the start of 2023, developed market equities rallied, gaining 7.1% in January. Disinflationary signals and expectations that central banks would slow the pace of interest rate hikes in 2023 drove performance. Renewed hope of a soft landing sparked growth-oriented sectors of the market to rally. In February, persistently high inflation resurfaced as a major headwind to equity performance as central bankers emphasized the need for a prolonged period of tighter financial conditions. Strong US economic data and stickier-than-expected inflation signaled a stronger case for additional interest rate hikes.
After a strong start to March, fallout from the collapse of two US banks – Silicon Valley Bank and Signature Bank – and the takeover of Credit Suisse sent shockwaves through equity markets and fueled fears of a widespread bank run. Equities recovered on the back of a wide-ranging response to stabilize midsize banks in the US and actions of central banks to reinstate confidence in the health of the global banking system.
On the brighter side, higher yields were viewed as an opportunity for many fixed income investors and may have provided important technical support as central banks across most of the developed world raised short-term rates. Indeed, despite the Silicon Valley Bank and Signature Bank defaults and banking sector concerns, credit premiums have yet to match the highs seen during other stress periods. Looking forward, the silver lining for fixed income investors is
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Portfolio management review
Optimum Fixed Income Fund
manifest in the higher yields that offer an income buffer against further price volatility.
Source: Bloomberg, unless otherwise noted.
Fund performance
For the fiscal year ended March 31, 2023, Optimum Fixed Income Fund declined, underperforming its benchmark index, the Bloomberg US Aggregate Index, which also declined. The following remarks describe factors that affected relative performance within these respective portions.
DMC
For the fiscal year ended March 31, 2023, DMC’s portion of Optimum Fixed Income Fund underperformed its benchmark, the Bloomberg US Aggregate Index.
In March 2022, the Fed began to raise rates and continued through March 2023 when the federal funds target rate reached a 4.75%-5.00% range. As rates rose, investors gradually shifted focus from inflation risk to recession risk and any unexpected consequences of the rapid liquidity withdrawal.
In managing its portion of the Fund, DMC seeks to be a provider rather than a taker of liquidity. Liquidity, in DMC’s view, enables it to take advantage of periods of uncertainty and provides the investment flexibility to take advantage of market opportunities as they arise. Throughout the most volatile period of the fiscal year, DMC increased its allocation to dislocated sectors, such as investment grade corporate bonds and mortgage-backed securities (MBS) when risk premiums increased amid investor fears. Conversely, DMC reduced allocations to credit-related securities, such as investment grade, high yield, and emerging market debt when liquidity improved, and risk premiums tightened excessively relative to expectations of higher recession risk.
The bank sector tremors in March 2023 detracted from performance as DMC held a modest overweight to certain regional banks. In particular, exposure to Silicon Valley Bank (SVB), which suffered a sudden depositor run and was quickly taken under conservatorship by the Federal Deposit Insurance Corporation (FDIC), was the key detractor from performance in DMC’s portion of the Fund. DMC has retained exposure to SVB securities, as it expects to have a more beneficial recovery outcome post-bankruptcy than the loss that would be incurred from selling securities at distressed market prices. We believe the high-quality assets available to SVB's holding company offer multiple paths to stronger-than-priced recovery scenarios. In addition, holdings in certain other banks that were caught in the headlines detracted from DMC’s performance. DMC’s exposure to senior securities of Citizens Bank N.A., a regional bank, and Credit Suisse AG, eventually taken over by UBS, detracted from performance. DMC reduced its exposure to both issuers but continues to hold positions in its portion of the Fund.
The heightened volatility in risk assets during the 12-month period resulted in indiscriminate underperformance for higher-quality securitized issues. As a result, DMC’s overweight to commercial mortgage-backed securities (CMBS) detracted from performance in its portion of the Fund. The focus on senior structures with ample subordination and fundamentally sound collateral is likely to benefit from an eventual stabilization in volatility, and DMC continues to hold the overweight with an expectation of opportunistically increasing exposure if weakness persists.
Lastly, while DMC reduced its allocation to plus sectors, such as emerging markets and high yield debt, its through-cycle exposure to these sectors modestly detracted from performance in its portion of the Fund in a spread-widening environment. Larger issuers, such as Bausch Health Companies Inc. within high yield corporates, underperformed amid higher volatility. DMC continues to hold exposure.
To manage interest rate risk, DMC positioned its portion of the Fund with a short duration position for most of the fiscal year before shifting to a neutral and long position once 10-year Treasury rates reached 4%. This risk management approach was advantageous to performance, along with positioning exposure to maturities that benefited from yield curve flattening.
In addition, DMC’s disciplined increase of its position in agency MBS to slim its underweight versus the benchmark when valuations became more attractive contributed to performance, as did its preference for higher yielding more-recent securities within the sector.
Within credit securities, DMC’s portion of the Fund benefited from exposure to bank loans such as Viasat Inc., a mobile satellite service provider that profited from new technology and an acquisition. DMC continues to hold the security in its portion of the Fund.
During the fiscal year, DMC used a variety of derivatives, including Treasury futures, options, and credit default swaps. Treasury futures and options were primarily used to manage interest rate risk. Credit default swaps and currency hedges were used to manage credit and foreign exchange risk. The use of derivatives materially contributed to performance for DMC’s portion of the Fund for the fiscal year.
PIMCO
PIMCO’s portion of the Fund underperformed its benchmark, the Bloomberg US Aggregate Index, for the 12 months ended March 31, 2023.
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Interest rate strategies contributed to relative performance in PIMCO’s portion of the Fund. An overall underweight to US duration added to performance as US Treasury yields rose during the 12-month period. US yield curve positioning, with a focus on the intermediate portion of the curve, helped performance as short-end rates rose more than intermediate rates. Overall non-US interest rate strategies detracted from performance in PIMCO’s portion of the Fund, including exposure to Italian and Canadian duration as yields rose in these regions. This was partially offset by contributions from short exposure to UK interest rates as gilt yields also rose over the fiscal period. Lastly, emerging market interest rate strategies, including an allocation to Brazilian and Mexican local rates, detracted from PIMCO’s performance.
Spread sector strategies weighed on performance for PIMCO. Mortgage strategies modestly detracted from performance in PIMCO’s portion of the Fund. An overall underweight to agency MBS added to performance as the sector underperformed like-duration Treasurys while holdings of select non-agency MBS detracted from returns as non-agency mortgage spreads widened. Credit strategies detracted from performance for PIMCO’s portion of the Fund, including an allocation to high yield corporate credit, as high yield corporate credit spreads widened. Within investment grade corporate credit, contributions from an underweight to the sector were offset by security selection within financial names. Lastly, an allocation to US Treasury inflation-protected securities (TIPS) contributed to performance in PIMCO’s portion of the Fund, as inflation expectations rose.
Currency strategies were negative for PIMCO’s relative performance, including exposure to the Japanese yen and a basket of emerging market currencies that depreciated relative to the US dollar during the fiscal year.
At the end of the Fund’s fiscal year, PIMCO was modestly underweight duration, favoring US duration along with hedges in select regions such as the UK. PIMCO also held some diversifying rate exposure in Latin America, namely in higher-rated countries with what it viewed as compelling yield levels, benign inflation, and credible central banks.
Regarding spread strategies, PIMCO’s portion of the Fund was opportunistic in corporate credit while maintaining an underweight to generic investment grade corporate credit. PIMCO maintained diversified credit exposures and had a bias toward shorter-maturity and high-quality names while de-emphasizing generic corporate credit exposure. PIMCO actively sought compelling name and sector exposure given dispersion within the credit market. Within agency MBS, PIMCO favors higher coupons that it believes will be less likely to be affected by the Fed’s balance sheet unwind. PIMCO also continues to favor senior positions in mortgage credit given the inherent fundamental strength and the deleveraging nature of the asset.
PIMCO remains tactical with currency positioning and expects to find more individual currency opportunities over time. It will continue to seek opportunities from overshoots and undershoots that provide what PIMCO considers to be attractive risk-reward profiles and the ability to diversify sources of return.
PIMCO used credit default swaps, forwards, futures, interest rate swaps, options, and swaptions during the fiscal year, but these derivatives did not have a material impact on performance within its portion of the Fund during the fiscal year.
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Portfolio management review
| Optimum International Fund | March 31, 2023 (Unaudited) |
| Performance review (for the year ended March 31, 2023) | ||
| Optimum International Fund (Institutional Class shares) | 1-year return | -7.24% |
| Optimum International Fund (Class A shares) | 1-year return | -7.49% |
| MSCI ACWI (All Country World Index) ex USA Index (net) (benchmark) | 1-year return | -5.07% |
| MSCI ACWI (All Country World Index) ex USA Index (gross) | 1-year return | -4.57% |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum International Fund, please see the table on page 22.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 23 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Investment objective
The Fund seeks long-term growth of capital and may also seek income.
Advisor
Delaware Management Company (DMC)
Sub-advisors
Acadian Asset Management LLC (Acadian)
Baillie Gifford
Overseas Limited (Baillie Gifford)
Market review
Global equity markets, as measured by the MSCI World Index (net) were down 7.02% for the fiscal year ended March 31, 2023, marking a highly challenging year for investors. In the second quarter of 2022, global equities had fallen 16.2%, the eighth-largest quarterly decline for global stocks in 50 years. Notably, both developed and emerging markets lagged as historically high levels of inflation, exacerbated by the Russia-Ukraine war and its effect on global food and energy prices, rattled world markets. Markets rebounded somewhat in the final half of the Fund's fiscal year.
Investors were concerned with inflation and the seismic shift in monetary policy that characterized the effort to control it throughout the fiscal year. Growth stocks suffered as the US Federal Reserve initiated a series of aggressive rate hikes that soared from near zero at the beginning of the 12-month period to a range of 4.75% to 5.0% at the end.
The Fed was joined by major central banks around the world, all raising interest rates to curb inflation despite concern that these actions could tip the global economy into a recession. After markets rallied in July, world stocks lost $9 trillion in value during a selloff that followed in August and September.
A milder-than-expected winter and timely investment in energy storage mitigated the effect of the Russia-Ukraine war on energy supplies and prices. Particularly in Europe, bottlenecks eased, and gas and electricity prices declined. At the same time, in the lead-up to the Chinese New Year, the Chinese Communist Party terminated its zero-COVID policy, boosting domestic demand for goods and services while providing relief to global supply-chain issues.
In the final month of the Fund’s fiscal year, the collapse of Silicon Valley Bank and Signature Bank in the US and Credit Suisse in Europe raised immediate concerns about the health of the financial system. As the fiscal period ended, those concerns eased somewhat as it appeared that the banking system was generally sound.
Source: Bloomberg, unless otherwise noted.
Fund performance
For the fiscal year ended March 31, 2023, Optimum International Fund declined, underperforming its benchmark, the MSCI ACWI ex USA Index (net), which also declined. Both Acadian’s and Baillie Gifford’s portions of the Fund underperformed the benchmark. Stock selection was a key detractor from performance in both Acadian’s and Baillie Gifford’s portions of the Fund. An allocation to China benefited both Acadian’s and Baillie Gifford’s portions of the Fund, as the lifting of COVID-19 restrictions enabled the economy to rebound while easing global supply-chain disruptions.
Acadian
Acadian focuses on its disciplined, value-focused, multi-factor approach and seeks to manage the Fund with consistency, objectivity, and appropriate risk controls. While the fiscal year was extremely challenging, as long-term investors, Acadian recognizes the inevitability of such episodes. Acadian’s approach to these extremes is to maintain a calm and measured perspective, removing emotion. Acadian believes it is counterproductive to overreact to exceptional conditions by making wholesale changes to its
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quantitative model that has proven to be robust over the long term. Acadian remains confident in the resiliency and long-term efficacy of its process.
A combination of stock selection and an overweight position in the energy sector, along with advantageous stock selection in the communication services sector, contributed to relative performance in Acadian’s portion of the Fund. Energy was a significant concern for investors throughout the 12-month period, as tight supplies and rising demand fueled high energy prices. Acadian believes that concern is expected to continue as energy supply is likely to remain constrained due to disruptions stemming from the Russia-Ukraine war and years of low investment in production.
Meanwhile, the relentless pressure of inflation weighed on consumer confidence during the year and ultimately detracted from performance in the materials and consumer staples sectors as well as in Acadian’s portion of the Fund overall. Acadian’s exposure to the financials sector also detracted from performance in its portion of the Fund during the fiscal period.
Whitehaven Coal Ltd. and Novo Nordisk AS were leading contributors to relative performance in Acadian’s portion of the Fund for the fiscal year. Shares of Australian coal mining company Whitehaven surged as coal prices benefited from the global energy supply constraints the war in Ukraine created. At the end of the fiscal year, Acadian’s alpha forecast for Whitehaven was positive, driven by what it viewed as attractive quality and value measures. (Alpha is a measure of risk-adjusted performance.)
A holding in the Danish pharmaceutical giant Novo Nordisk proved successful for the fiscal period for Acadian’s portion of the Fund, as the company benefited from major market interest in semaglutide, a prescription drug that is a key component in diabetes and weight-loss medications. At the end of the fiscal year, Acadian’s alpha forecast for Novo Nordisk was favorable, owing to what it considered to be a combination of attractive technical, quality, and growth signals.
JBS SA and Sonova Holding AG were two leading detractors from performance in Acadian’s portion of the Fund for the fiscal year.
A position in Brazilian meat-processing company JBS detracted from relative returns for Acadian’s portion of the Fund, as consumer concern over the ethical and environmental effect of the cattle ranching industry, particularly in the Amazon, dampened the share price. At the end of the fiscal year, Acadian’s alpha forecast for JBS was slightly negative, owing mainly to an unfavorable outlook from Acadian’s top-down model, which looks at broad economic factors. Acadian continues to hold a small weighting in JBS in its portion of the Fund.
A position in Swiss hearing-aid company Sonova proved costly for Acadian’s portion of the Fund. Soaring costs and subdued demand from consumers hit hard by inflation weighed on the company. As a participant in the higher-priced hearing-aid market and distribution channel, Sonova also faced new competition from lower-priced hearing aids that can now be sold over the counter. At period end Acadian’s alpha forecast for Sonova was modestly positive, due largely to what it viewed as a favorable quality outlook.
At the end of the fiscal year, the largest country overweights in Acadian's portion of the Fund were Australia, China, and Israel. The largest underweight positions were in Japan, Switzerland, and the UK. In terms of sector positioning, Acadian’s focus for its portion of the Fund was on industrials, energy, and materials. Its largest underweight positions were in financials, consumer staples, and utilities.
Baillie Gifford
Baillie Gifford maintains its investment philosophy and process through changing market environments. Baillie Gifford fundamentally believes in long-term investing, and that share prices ultimately follow earnings growth. Baillie Gifford is focused on finding companies whose ability to generate earnings growth is independent of a particular market environment.
Although the Fund’s fiscal year was a difficult investment environment, Baillie Gifford remained focused on assessing each individual portfolio holding according to its merits. The volatility during the 12-month period gave Baillie Gifford, as a bottom-up (stock-by-stock) investor, the opportunity to add what it viewed as attractive companies at valuations not seen since the start of 2020.
From a sector perspective, industrials detracted the most from relative performance within Baillie Gifford’s portion of the Fund. Baillie Gifford’s exposure to industrials included a company specializing in innovative carbon capture, an auctioneer, and companies engaged in industrial automation. Baillie Gifford views its exposure to this sector as a mix of high-quality companies driven by idiosyncratic growth that it believes could play out in the long term.
While the lack of exposure to the energy sector also detracted from Baillie Gifford’s portion of the Fund, Baillie Gifford thinks these companies are reliant on increasing energy prices that are ultimately out of their control.
Two contributing sectors to performance within Baillie Gifford’s portion of the Fund were information technology (IT) and materials. Its holdings were comprised of several IT platforms across different regions and industries, including ecommerce, financial technology, wealth management, and real estate. These are businesses that Baillie Gifford believes can grow rapidly and improve inefficiencies in
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Portfolio management review
Optimum International Fund
their respective marketplaces. An underweight position in materials also aided performance within Baillie Gifford’s portion of the Fund for the fiscal year.
MercadoLibre Inc. and CRH PLC were leading individual contributors to relative performance in Baillie Gifford’s portion of the Fund. The share price of MercadoLibre, Latin America’s leading ecommerce and online payments business, recovered strongly during the period. One of its main competitors, Americanas SA, recently filed for bankruptcy. MercadoLibre also reported strong recent quarterly results. The business continues to execute well, and Baillie Gifford added to its position.
Irish building materials business CRH also executed well and was rewarded by investors. Baillie Gifford thinks the company may benefit from stimulus measures in the US. Additionally, the company’s shift from being a pure building materials provider to offering higher-value solutions is driving margins upwards. CRH has put cash aside and is prepared to make value-accretive acquisitions, growing dividends and share buybacks.
Kingspan Group PLC and MonotaRo Co. Ltd. were two leading detractors from relative performance in Baillie Gifford’s portion of the Fund. Although both businesses met expectations from an operational perspective, they suffered from share-price weakness on the back of general sentiment and concern about a deteriorating economic outlook. Baillie Gifford continues to hold both companies, as it believes that their long-term growth opportunities remain strong.
Kingspan, an Irish insulation materials business, recently reported strong results that were in line with company guidance. Baillie Gifford found it encouraging that the company was able to raise prices to offset cost increases. Management also demonstrated a prudent approach to balance-sheet management and the discipline to acquire assets at sensible valuations.
MonotaRo, a Japanese maintenance, repair, and organization business, endured a difficult period in share-price terms despite strong execution. In its most recent results, the business reported 19% year-over-year revenue growth, exceeding management’s forecasts. The company’s progress in developing its digital offering is also encouraging. Although the market worries about the challenges presented by a weaker economic environment and rising input costs, Baillie Gifford remains optimistic, noting the company’s long runway of structural growth ahead and strong record of execution.
Overall, Optimum International Fund used derivatives, including foreign currency exchange contracts, during the fiscal year. However, these had a minimal effect on performance.
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Portfolio management review
| Optimum Large Cap Growth Fund | March 31, 2023 (Unaudited) |
| Performance review (for the year ended March 31, 2023) | ||
| Optimum Large Cap Growth Fund (Institutional Class shares) | 1-year return | -14.59% |
| Optimum Large Cap Growth Fund (Class A shares) | 1-year return | -14.76% |
| Russell 1000® Growth Index (benchmark) | 1-year return | -10.90% |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum Large Cap Growth Fund, please see the table on page 25.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 26 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Fund objective
The Fund seeks long-term growth of capital.
Advisor
Delaware Management Company (DMC)
Sub-advisors
Los Angeles Capital Management
LLC (Los Angeles Capital)
American Century Investment Management Inc. (American Century)
Significant Fund events
Effective July 22, 2022, American Century Investment Management, Inc. (American Century) replaced T. Rowe Price Associates, Inc. (T. Rowe Price) as one of the Fund's sub-advisors. American Century will manage the Fund along with Los Angeles Capital Management, LLC, the Fund's other sub-advisor.
Effective January 17, 2023, Los Angeles Capital replaced ClearBridge Investments, LLC (ClearBridge) as one of the Fund’s sub-advisors. Los Angeles Capital will manage the Fund along with American Century, the Fund’s other sub-advisor.
Market overview
The Fund's fiscal year ended March 31, 2023, was most notable for the most pervasive bout of inflation seen in 40 years and the US Federal Reserve’s rapid and aggressive effort to bring it under control. Beginning just a month prior to the start of the fiscal period, the Fed began raising interest rates, from near zero in March 2022 to a range of 4.75% to 5.00% by period end.
Inflationary pressures seemed not to respond at first, as the core inflation rate (excluding food and energy) rose to 6.6% in September before showing signs of easing. At the end of the fiscal year, however, inflation had dropped to 5.5%, still well above the Fed’s 2.0% target, but which investors took as a sign that the Fed was nearing the end of its rate-hike campaign.
While large-cap growth equities declined 10.9% overall in the fiscal year, as measured by the Russell 1000 Growth Index, the period ended on an up note as the asset class gained 14.4% in the final three months of the period, overcoming the threat of a banking collapse spawned by the failures of Silicon Valley Bank and Signature Bank in early March 2023. The sustained rise of interest rates throughout the period pressured the banks’ balance sheets to the point of collapse. Financial markets initially declined, as investors feared the problem might be widespread. The Fed quickly intervened, however, both guaranteeing all deposits and assuring investors that the banking system was sound. Nonetheless, there was a noticeable flight of deposits from banks in the last weeks of the period, foreshadowing a credit crunch that may portend economic weakness in the months ahead.
Source. Bloomberg, unless otherwise noted.
Fund performance
Optimum Large Cap Growth Fund posted a negative return that underperformed its benchmark, the Russell 1000 Growth Index, which also declined for the Fund’s fiscal year ended March 31, 2023. Both the T. Rowe Price and the Los Angeles Capital portions of the Fund underperformed relative to the benchmark during their respective management periods, while the American Century portion of the Fund performed generally in line with the benchmark and the ClearBridge portion of the Fund outperformed during their respective management periods.
While performance in individual sectors varied among the four managers depending on specific stock selection, one trend was clear: early in the fiscal year, the high-growth companies in the Fund suffered as higher yields pressured share prices. As the economic and market environments improved late in the fiscal period, high-growth companies rallied, finding increased favor with investors who had earlier been enamored with value stocks.
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Portfolio management review
Optimum Large Cap Growth Fund
ClearBridge
ClearBridge normally invests in equity securities (or other instruments with similar economic characteristics) of US companies with large market capitalizations. ClearBridge’s core holdings are large-cap companies that it believes to be dominant in their industries due to product, distribution, or service strength.
During the time that ClearBridge managed its portion of the Fund it transitioned its portfolio into companies that possessed what it believed were the most attractive growth profiles over the next three to five years.
The consumer staples and consumer discretionary sectors were the primary contributors to performance in the ClearBridge portion of the Fund while information technology (IT) was the primary detractor from performance. Higher yields pressured valuations of long-duration growth companies, many of which reside in the IT sector and whose profits are discounted well into the future.
W.W. Grainger Inc., in the industrials sector, is a global distributor of maintenance, repair, and operating products and services. The company was a leading contributor for the ClearBridge portion of the Fund. The shares were supported by earnings that handily beat consensus expectations.
Monster Beverage Corp. also contributed significantly for ClearBridge’s portion of the Fund. In the consumer staples sector, Monster Beverage is a marketer and distributor of carbonated and non-carbonated energy drinks, shakes, and teas. In addition to its defensive characteristics that were in favor throughout 2022’s volatility, robust sales growth and declining prices for aluminum, a key input cost, have boosted Monster Beverage's stock.
Amazon.com Inc. was a leading detractor from performance for ClearBridge. The consumer discretionary company operates the leading ecommerce and hybrid cloud services platforms and has a burgeoning advertising business. A weaker-than-expected revenue forecast that indicated slowing demand in Amazon’s retail and cloud businesses negatively affected the stock.
Meta Platforms Inc. also detracted from performance in ClearBridge’s portion of the Fund. In the communication services sector, the company is a leading social media and digital advertising platform that operates the Facebook and Instagram social networks. A cyclical slowdown in digital advertising spending in its latest quarterly results pressured Meta shares.
T. Rowe Price
T. Rowe Price normally invests in stocks of large-capitalization companies with one or more of the following characteristics: strong cash flow and an above-average rate of earnings growth; the ability to sustain earnings momentum during economic downturns; and occupation of a lucrative niche in the economy and ability to expand even during times of slow economic growth. T. Rowe Price seeks to invest in high-quality businesses that can either provide defense in down markets or have the potential to outperform once inflation concerns are in the rear view.
Although security selection was the main driver for its relative underperformance, sector allocation also had a negative effect during the time that T. Rowe Price managed its portion of the Fund.
Consumer discretionary was the leading relative detractor in the T. Rowe Price portion of the Fund, primarily owing to stock selection. Within the sector, shares of online travel agency Expedia Group Inc. tumbled, reflecting the geopolitical tensions and inflationary pressures the global economy faced. Following the setback from the pandemic, travel in Europe was further affected by Russia’s invasion of Ukraine. This hurt Expedia’s retail segment, a major contributor to its revenues. Amazon.com Inc. also was a significant detractor in the T. Rowe Price portion of the Fund.
Stock choices and an overweight allocation in communication services likewise hindered relative returns in the T. Rowe Price portion of the Fund. Shares of Snap Inc. sold off sharply after management signaled a significant drop in advertising demand with macro headwinds putting downward pressure on advertiser budgets. Snap markets mobile-camera social media and technology-based applications to send and receive photos. The company’s gaming arm suffered due to a ban in the high-growth market of India coupled with the reopening of the global economy.
In contrast, stock selection in industrials and business services contributed to relative results in the T. Rowe Price portion of the Fund. Shares of FedEx Corp. advanced on forward guidance that exceeded consensus expectations with an emphasis on margin improvement in all business segments.
American Century
American Century seeks to invest in innovative, well-run companies that are reimagining their markets or creating entirely new ones. American Century takes a long-term view across the corporate life cycle, looking for companies in the early stages of growth and holds those companies over time, allowing them to potentially compound value for shareholders. Even during volatile, trying times, American
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Century does not capitulate or change its approach, instead committing even stronger to fundamental research, risk controls, and diversification.
During the time that American Century managed its portion of the Fund, stock selection in the healthcare and financials sectors contributed the most to performance relative to the benchmark in the American Century portion of the Fund. Positioning in the industrials and IT sectors detracted from relative performance for American Century.
The leading individual contributor to relative performance in the American Century portion of the Fund was healthcare company Regeneron Pharmaceuticals Inc. The company reported better-than-expected revenue and earnings and announced strong trial results for Eylea, its drug for wet age-related macular degeneration. The results appear to be best in class and extend patent protection.
Another contributor to relative results in the American Century portion of the Fund was fast-casual restaurant chain Wingstop Inc. The company enjoyed strong unit growth and same-store sales growth. Its digital strategy is a key driver of transaction growth. During the reporting period, Wingstop reported strong results. New menu items and delivery platforms helped Wingstop achieve revenue and earnings that were much better than expected.
At the other end of the spectrum, Tesla Inc. was the leading detractor from relative performance in the American Century portion of the Fund. The electric vehicle maker’s stock struggled amid last year’s growth stock selloff and questions about CEO Elon Musk’s focus on Twitter. Tesla also faced concerns about softening demand amid a challenging macroeconomic environment. American Century retains high conviction in the stock and continues to hold the stock in its portion of the Fund. Given the company’s potential to transform industries, such as electric vehicles, self-driving cars, and power storage, American Century believes it’s short-sighted to react to every headline. American Century thinks short-term overreactions fail to take a holistic view of the company and its potential long-term business opportunities.
Advanced Drainage Systems Inc. was another notable detractor from relative results for the American Century portion of the Fund. The company is the leading provider of plastic-based solutions for stormwater and septic applications. The stock fell when the company lowered its revenue outlook but maintained earnings expectations. American Century added to the position on weakness, as its thesis around margin improvement and free cash flow generation remains intact.
Los Angeles Capital
Los Angeles Capital addresses the need for a forward-looking systematic approach to equity management, that allows for breadth of coverage, while seeking to avoid historical biases that can dictate traditional quantitative approaches. With an investment philosophy underpinned by Investor Preference Theory®, and an implementation process driven by a proprietary, dynamic model, Los Angeles Capital constructs portfolios that are designed to adapt and evolve to today's economic environment.
Los Angeles Capital’s investment process regularly surveys the market to understand what characteristics are driving investor preferences today. Rising uncertainty in the banking sector and ongoing inflationary and recessionary concerns have contributed to a more measured view among investors for valuation and risk.
During the time Los Angeles Capital managed its portion of the Fund, the financial and transportation sectors contributed to performance relative to the Russell 1000 Growth Index, while the technology and consumer cyclical sectors detracted from performance. Stock selection within the financial sector was particularly beneficial, whereas the Los Angeles Capital portion of the Fund benefited from both stock selection and an average underweight to the transportation group.
Technology and consumer cyclicals were beneficiaries of the market environment in 2023 as investors sought secular growth opportunities and the Los Angeles Capital portion of the Fund profited from its average overweight to those sectors. However, stock selection within each category held performance back.
Broadcom Inc. and Monolithic Power Systems Inc. were two notable contributors to relative returns for Los Angeles Capital in the technology sector during the management period. Both companies exhibited positive analyst sentiment and management quality relative to the broader US large-cap equity universe. Investors rewarded these two fundamental attributes during the reporting period.
NVIDIA Corp. and Microsoft Corp. were two notable detractors from relative performance for the Los Angeles Capital portion of the Fund during the reporting period. Because the stocks saw strong performance in 2023, the portfolio’s underweight allocations weighed down relative returns. Fundamental momentum has improved for these two firms, and should it persist, Los Angeles Capital believes the portfolio allocations should grow as market participants seek higher-quality growth opportunities in a weaker economic environment.
Neither American Century nor Los Angeles Capital utilized derivatives within the Fund during the fiscal year.
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Portfolio management review
| Optimum Large Cap Value Fund | March 31, 2023 (Unaudited) |
| Performance review (for the year ended March 31, 2023) | ||
| Optimum Large Cap Value Fund (Institutional Class shares) | 1-year return | -5.40% |
| Optimum Large Cap Value Fund (Class A shares) | 1-year return | -5.61% |
| Russell 1000® Value Index (benchmark) | 1-year return | -5.91% |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum Large Cap Value Fund, please see the table on page 28.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 29 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Fund objective
The Fund seeks long-term growth of capital and may also seek income.
Advisor
Delaware Management Company (DMC)
Sub-advisors
Massachusetts Financial Services
Company (MFS)
Great Lakes Advisors, LLC (Great Lakes) (formerly, Rothschild & Co)
Significant Fund event
Rothschild & Co Asset Management US (“Rothschild & Co”), the prior sub-advisor on the Fund, recently informed the Fund that Wintrust Financial Corporation (“Wintrust”) entered into an agreement to acquire Rothschild & Co (the “Transaction”). As part of the Transaction, Wintrust merged Rothschild & Co into Great Lakes Advisors, LLC (“Great Lakes”), an investment advisor wholly owned by Wintrust, as of the closing of the Transaction. The Transaction closed on April 3, 2023.
Market review
The most persistent and rapid bout of inflation in 40 years characterized the Fund's fiscal year ended March 31, 2023. The primary fuel for inflation was the unprecedented amount of fiscal and monetary stimulus provided during the pandemic. It was ignited by the boundless consumer demand that followed the lifting of economic restrictions, a breakdown in the global supply chain, and the disruption of energy supplies after the outbreak of war in Ukraine. The result was runaway prices throughout the global economy.
Within equity markets, value stocks outperformed growth stocks for much of the fiscal year, before reversing course toward the end of the period.
When the fiscal year began, the US Federal Reserve had just initiated a series of rate hikes to dampen inflation and was soon joined by other global central banks. Interest rates rose substantially throughout the 12-month period and, as the end of the fiscal year approached, it appeared that inflation was beginning to ease. The full effect of tighter monetary policy may not be felt for some time, however, given that monetary policy works with long and variable lags.
In the final month of the Fund’s fiscal year, higher rates caused visible stress for some small and regional US banks, culminating in the failures of Silicon Valley Bank and Signature Bank. Both banks lost depositors as customers sought higher yields on their savings. Given the importance of small- and mid-sized lenders to the provision of credit in the US, investors grew concerned that credit availability could shrink, leading to slower economic growth. On a more upbeat note, China’s abandonment of its zero-COVID policy unleashed pent-up demand in the world’s second-largest economy and led to improvements in the global supply chain.
Against an environment of still-tight labor markets, tighter global financial conditions, and volatile materials prices, investors grew concerned over the possibility that corporate profit margins may be past their peak in this cycle. That said, signs that supply chains have generally normalized, the lifting of COVID-19 restrictions in China, low levels of unemployment across developed markets, and hope that inflation levels may have peaked were supportive factors for the macroeconomic backdrop.
Source: Bloomberg, unless otherwise noted.
Fund performance
Optimum Large Cap Value Fund posted negative returns but outperformed its benchmark, the Russell 1000 Value Index, which also declined, for the Fund’s fiscal year ended March 31, 2023. Both the MFS and Great Lakes portions of the Fund outperformed the benchmark return.
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The MFS portion of the Fund benefited from stock selection in the financials and information technology (IT) sectors, overcoming underperformance attributable to both stock selection and an underweight in the energy sector. Stock selection in the communication services sector also detracted from performance in the MFS portion of the Fund. In contrast, in Great Lakes’ portion of the Fund, outperformance was supported largely by favorable sector allocation which overcame modest underperformance attributable to stock selection. Overweight positioning in manufacturing, energy, and technology stocks contributed to performance in the Great Lakes portion of the Fund and was supported by favorable stock selection in those sectors. Great Lakes also maintained a position in cash throughout the fiscal year, which was beneficial in a down market.
MFS
MFS has maintained a consistent investment approach since this strategy’s inception. For its portion of the Fund, MFS uses a long-term time horizon in making investment decisions. MFS maintains a disciplined investment philosophy and process that is always focused on investing in high-quality companies trading at what it views as inexpensive valuations. As was the case last year, MFS assessed the impact of significant changes in the global economic outlook. During the fiscal year, these included rising inflation, interest rates, uncertain monetary policy, slowing growth, and the war in Ukraine.
An overweight position in The Progressive Corp., an insurance holding company, was a leading contributor to relative performance versus the benchmark in the MFS portion of the Fund. During the fiscal year, the company continued its impressive run of outperforming the market. The MFS allocation to the financials sector also benefited from a lack of investment in Bank of America Corp., which performed poorly during the fiscal year.
KLA Corp., a manufacturer and marketer of process-control equipment for the semiconductor industry, was an out-of-benchmark IT sector investment and a leading contributor to relative performance in the MFS portion of the Fund. MFS believes the company has been and will continue to be well positioned to benefit from the increasing complexity of semiconductor-wafer manufacturing.
Contributing to relative performance for the MFS portion of the Fund were overweight positions in industrial products and equipment manufacturer Illinois Tool Works Inc.; global security company Northrop Grumman Corp.; pharmaceutical company Merck & Co. Inc.; and health services company McKesson Corp. Additionally, a lack of investment in poorly performing diversified entertainment provider The Walt Disney Co. contributed to relative results versus the benchmark in the MFS portion of the Fund.
The energy sector performed well throughout much of the fiscal year as prices rose, resulting from both a post-recession boost in demand and the curtailment in supply following Russia’s invasion of Ukraine. The MFS portion of the Fund lacked an investment in integrated oil and gas company ExxonMobil Corp., which detracted from relative performance.
In the communications sector, an overweight investment in cable services provider Charter Communications Inc. detracted from performance in the MFS portion of the Fund, as the company significantly missed earnings in the fourth quarter of 2022. A lack of investment in Meta Platforms Inc., operator of Facebook and other social-media services, and in Netflix Inc., a provider of internet TV and movie-subscription services, also detracted from relative returns in the MFS portion of the Fund.
Stocks in other sectors that detracted from relative performance included MFS’s overweight positions in railroad and freight transportation services provider Union Pacific Corp., energy products and services supplier Dominion Energy Inc., consulting and IT services provider Accenture PLC, diversified financial services firm The PNC Financial Services Group Inc., and power and hand tools manufacturer Stanley Black & Decker Inc.
MFS exited its position in Stanley Black & Decker during the fiscal year. MFS continued to hold the other named detractors. Union Pacific is among potential beneficiaries of the long-term secular tailwind provided by the growth of ecommerce and enjoys embedded barriers to entry through its physical rail network. Dominion Energy is a regulated utility that stands to benefit as the power grid transitions to more renewable energy sources. IT consulting firm Accenture has long-range opportunities in helping its customers navigate the accelerated digitization of business taking place across industries. MFS continued to view PNC Financial Services Group as well positioned among regional bank peers given the strength of its balance sheet, funding sources, and capital levels.
Avoiding strong-performing biotech firm Gilead Sciences Inc. also detracted from relative performance in the MFS portion of the Fund.
Great Lakes
Great Lakes, formerly Rothschild & Co., employs an integrated approach that balances quantitative analysis, fundamental research, and risk management guidelines to identify stocks of companies it believes possess attractive relative valuation and an ability to exceed market expectations. Great Lakes’ investment process has been stable through many market cycles, maintaining a consistent approach even as economic and market environments fluctuate. Great Lakes believes that the market environment experienced during the most recent fiscal period was unprecedented, reflecting the Russia-Ukraine war, global central bank monetary tightening, and
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Portfolio management review
Optimum Large Cap Value Fund
the failure of several banks. Great Lakes believes environments such as this, characterized by volatility, can unearth opportunities as pricing inefficiencies develop at the stock level, which is where Great Lakes focuses its attention.
Technology company ON Semiconductor Corp. was a leading contributor to relative performance in the Great Lakes portion of the Fund, even as the IT sector as a whole underperformed. The company is a leading supplier of semiconductors to broad end markets, including the automotive and industrial segments. ON Semiconductor has executed well in expanding margins and diversifying away from commoditized products. The next leg of its growth strategy is in silicon carbide relationships with major automotive companies. Two other IT companies that contributed to performance in Great Lakes’ portion of the Fund were Broadcom Inc. and Motorola Solutions Inc.
Manufacturing company Quanta Services Inc. was another leading contributor to performance for Great Lakes as the entire manufacturing sector outperformed. Quanta Services is an engineering and construction firm servicing utilities and telecommunications companies. Quanta Services benefited from strong secular spending trends by the utilities in transitioning to renewable energy and upgrading electric grids. Other contributors in the manufacturing sector included diversified manufacturer Parker-Hannifin Corp. and heavy equipment manufacturer Caterpillar Inc.
Telecommunications services provider Alphabet Inc. was a leading detractor from performance in the Great Lakes portion of the Fund.
The global provider of technology and related services, and best known for its Google search engine, was weak as Fed tightening resulted in a rotation from growth-oriented stocks that afflicted the technology sector generally. The company also confronted adverse company-specific news, including regulatory headwinds, slowing end-market trends, and increased competition. Great Lakes continues to hold the shares due to the stock’s attractive relative cash flow valuation metrics, the company’s dominance in important end markets, and optionality to expense-reduction efforts.
Real estate investment trust Boston Properties Inc. also detracted from performance for Great Lakes during the fiscal year. The company is a large owner of Class A office buildings in major cities. Its fundamentals have weakened against the backdrop of work-from-home trends and high office vacancies, which are pressuring results. Broader industry concerns, including higher interest rates, have weighed on the shares of the major owners of office properties. Great Lakes exited the position in its portion of the Fund during the fiscal year.
Other notable detractors from performance in the Great Lakes portion of the Fund included medical device manufacturer Baxter International Inc., online payments company PayPal Holdings Inc., consumer banking giant Bank of America Corp., and financial services provider The Charles Schwab Corp.
Neither Great Lakes nor MFS utilized derivatives within the Fund during the fiscal year.
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Portfolio management review
| Optimum Small-Mid Cap Growth Fund | March 31, 2023 (Unaudited) |
| Performance review (for the year ended March 31, 2023) | ||
| Optimum Small-Mid Cap Growth Fund (Institutional Class shares) | 1-year return | -12.86% |
| Optimum Small-Mid Cap Growth Fund (Class A shares) | 1-year return | -13.08% |
| Russell 2500™ Growth Index (benchmark) | 1-year return | -10.35% |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum Small-Mid Cap Growth Fund, please see the table on page 30.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 31 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Fund objective
The Fund seeks long-term growth of capital.
Advisor
Delaware Management Company (DMC)
Sub-advisors
Principal Dynamic Growth (PDG)
Peregrine Capital Management,
LLC (PCM)
Market review
Throughout the Fund’s fiscal year ended March 31, 2023, equity markets were turbulent and challenging, characterized by a series of sharp declines interspersed with rebounds and reversals. The early months of the 12-month period featured double-digit market declines and was an especially challenging period for growth stocks. Small- to mid-cap stocks also significantly lagged their larger-cap peers. This reflected a sharp tightening of monetary conditions, rising bond yields, and the shock of Russia’s invasion of Ukraine, all of which were especially detrimental to longer-duration growth stocks. Energy stocks advanced by double digits in tandem with the spikes in oil and gas prices, although this was of little benefit to the small- to mid-cap growth universe.
Markets then staged a spirited rebound rally in June and early July, only to reverse course once again and slump through October, reaching new lows, driven by hawkish US Federal Reserve rhetoric and further interest rate hikes. Thanks to weaker-than-predicted inflation readings, markets rebounded sharply again in November and rallied through February 2023. More selling pressure ensued in March, as regional banking strains were ignited by the abrupt deposit runs at Silicon Valley Bank and Signature Bank. Encouragingly, prompt actions by the Federal Deposit Insurance Corporation (FDIC), the US Treasury, and the Fed appeared to avert further contagion, allowing market volatility to subside.
While the level of investor anxieties remained high at the end of the Fund’s fiscal year, these levels abated when the potential for a broader banking contagion seemed contained. The focus now for many investors is on the effect of the crisis on the availability of credit and the potential impact that tightening financial conditions could have on economic growth and market returns.
Source: Bloomberg, unless otherwise noted.
Fund performance
Optimum Small-Mid Cap Growth Fund underperformed its benchmark, the Russell 2500 Growth Index, for the fiscal year. PDG’s portion of the Fund trailed the benchmark as relatively cheap stocks outperformed the secular growth stocks that PDG favors. PCM’s portion of the Fund outperformed the benchmark, driven by stock selection in the consumer staples and consumer discretionary sectors.
PDG
Amid the chaotic market backdrop, sector and style leadership swung wildly throughout the period, with value stocks dramatically outperforming for much of the Fund’s fiscal year, followed by a sharp rebound in favor of growth over the final five months. Within the small- to mid-cap universe, results for growth and value finished the period neck in neck, masking the inter-period swings. However, both absolute and benchmark relative returns proved disappointing for PDG’s portion of the Fund.
The shortfall in relative portfolio results was concentrated primarily in the final quarter of calendar 2022, especially November amid the sharp rebound that was marked by outperformance among relatively cheap stocks at the expense of secular growth stocks, which PDG believes have strong fundamentals. It is these stocks that are typical of PDG’s investment discipline. Most notably, stocks in the highest quartile of sales growth lagged those in the lowest quartile by one of the widest margins in years.
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Portfolio management review
Optimum Small-Mid Cap Growth Fund
There were no changes to PDG’s philosophy and process during the fiscal year. Reflecting the significant tightening of monetary conditions, rising bond yields, and increased risks of recession during the 12-month period, PDG consciously sought to reduce exposure to macroeconomic cyclicality, while opportunistically adding to durable structural growth beneficiaries that had been disfavored and derated during the fiscal year.
During the fiscal year, healthcare was the most challenging sector for PDG’s portion of the Fund. Its shortfalls reflected both derating of certain secular growth stocks it held as well as strong performance among stocks not held in PDG’s portion of the Fund. Industrials also detracted from performance as supply-chain challenges hurt certain holdings during the 12-month period.
Plug Power Inc. was among the largest individual detractors. Plug Power, a leading provider of hydrogen fuel cells and electrolyzers, was purchased when it appeared that demand for electrolyzers was set to accelerate following passage of the Inflation Reduction Act of 2022. This Act provided substantial tax credits for clean hydrogen producers in the US for several years to come. The stock subsequently underperformed, however, due to supply chain constraints squeezing its near-term profit margin and revenue performance. PDG sold the position from its portion of the Fund, given uncertainty over the timing of potentially improved revenue and earnings.
Shares of Qualtrics International Inc., a cloud-based software provider that is focused on innovative customer surveys and customer experience management, declined for the fiscal year. PDG owned Qualtrics in its portion of the Fund for secular penetration of its customer solutions and for cross-selling synergies related to acquisition of Clarabridge and its unstructured data software. Shares underperformed as part of a broad downturn of high-valuation software stocks in the face of rising interest rates and stagflation concerns. PDG sold the position from its portion of the Fund.
During the fiscal year, consumer discretionary and consumer staples were the largest contributors to relative performance for PDG’s portion of the Fund. Strong stock selection due to the secular and company-specific nature of the holdings in those sectors drove PDG’s performance. A favorable consumer backdrop that included continued strong employment, wage growth, and spending of excess savings also contributed to performance in PDG’s portion of the Fund.
e.l.f. Beauty Inc., a manufacturer of beauty and skincare products, was among the largest individual contributors to PDG’s portion of the Fund. The company benefited from market share gains, increased distribution at national retailers, and expansion into international markets. Its value proposition, innovation pipeline, and a highly engaged consumer base helped e.l.f. gain incremental shelf space planned for spring 2023, which we think should lead to continued robust results. PDG continues to hold the stock in its portion of the Fund.
Signify Health Inc., a healthcare provider that uses analytics, technology, and nationwide provider networks to support value-based programs, performed well for PDG’s portion of the Fund. PDG bought the stock for its accelerating revenue growth and improving margins as management refocused the business toward the higher-growth, home-based care segment, while announcing plans to exit the money-losing episodes of care business. While PDG’s view was initially validated by better-than-expected quarterly results and a raised outlook in the home health business, the stock rose further after initial takeover rumors were realized with CVS Health’s acquisition of the company. PDG exited the position in its portion of the Fund before the acquisition was completed.
PDG’s portion of the Fund continues to be most overweight to the consumer discretionary and consumer staples sectors, where it holds several companies tied to robust long-term trends in consumer services, brands, retailers taking market share, and housing-related holdings that could potentially benefit from stabilizing interest rates. Conversely, PDG’s portion of the Fund is most underweight the healthcare sector, which include service companies exposed to elevated labor costs, biotechnology owing to the binary nature, and the risk of small- to-mid-cap biotech names. PDG’s portion of the Fund also remains underweight the materials sector owing to a lack of what it views as compelling secular growth stories.
PCM
Despite the economic uncertainty, PCM’s high growth yet valuation sensitive approach generated relative outperformance for the fiscal year.
During the fiscal year, the consumer staples and consumer discretionary sectors were the largest contributors to performance for PCM’s portion of the Fund. PCM’s exposure to consumer staples benefited from stronger-than-predicted earnings results as well as the sector’s perceived safety in a volatile environment. In consumer discretionary, specialty and broadline retail drove outsized returns, particularly in discount-oriented segments. Discounters benefited from consumers trading down owing to rising inflation and economic uncertainty.
Healthcare and financials detracted the most from performance for PCM’s portion of the Fund. An industry overweight and stock selection in life science tools and services also hurt returns as a weaker biotech funding environment caused concern that companies exposed to biopharmaceutical research and development activity could be negatively affected. Additionally, in calendar years 2020 and 2021, many companies took advantage of COVID-related benefits
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from both testing and drug development, which resulted in difficult comparisons and a slowdown in growth during the fiscal period.
The leading individual contributor to PCM’s portion of the Fund for the fiscal year was e.l.f. Beauty Inc. The firm sells high-end cosmetic products at affordable prices and is exposed to the attractive secular trend of demand for beauty and skin care products. The company has been successful in applying a fast fashion approach to product development and employing a digital-centric marketing strategy to retain and attract the Gen-Z cosmetic customer. As industry-wide COVID-related headwinds have lifted, e.l.f. has leveraged its strong marketing and product development strategies to gain meaningful market share. Additionally, it has benefited recently from a higher degree of trade down as economic prospects have weakened. This topline strength continues to benefit profit margins even as e.l.f. continues to invest in new products and marketing, resulting in strong fundamentals and stock performance.
Another strong contributor to PCM’s portion of the Fund was Lamb Weston Holdings Inc., one of the world’s largest producers of frozen potato products, supplying both foodservice and retail customers. French fries continue to be an area of growth for the company as they are a high-margin, low-cost menu item and consumer demand has been strong. Additionally, a historically poor potato harvest enabled Lamb Weston to renegotiate customer contract terms, giving it more favorable pricing and less price-to-cost (P/C) ratio mismatch. This, along with strong volume, contributed to both revenues and earnings throughout the fiscal year and drove the stock’s strong outperformance.
The leading detractor from performance in PCM’s portion of the Fund was Syneos Health Inc. Syneos is a contract research organization (CRO) that outsources clinical trial design and management for the biopharmaceutical industry. This is an industry with attractive industry tailwinds, in PCM’s view, as clinical trials are increasing in complexity and CROs offer expertise that many biopharmaceutical customers cannot replicate on their own. Although Syneos traded well below its peer group due to inconsistent execution, PCM believed it would continue to make progress and ultimately close this gap with its peers. However, this was not the case and in the third quarter of 2022, earnings results were well below consensus expectations. Weakness from small- and mid-sized customers, as well as limited visibility into potential future growth rates, caused the stock to underperform. PCM no longer holds Syneos in its portion of the Fund.
Omnicell Inc. also detracted from performance in PCM’s portion of the Fund. The company provides equipment used to automate medication dispensing by hospitals and pharmacies. Reducing costs and improving outcomes are at the forefront of healthcare providers’ minds. Omnicell’s products help improve efficiency for pharmacists, reduce theft, and integrate seamlessly with electronic health records. While significantly beneficial to hospitals, it is considered a capital sale. Accordingly, it can likely fall victim to timing surrounding budget and implementation cycles. Omnicell saw a pronounced change in customer behavior toward the end of 2022, which led to the deferral of some order deliveries. Much of this was labor related, as staffing shortages at hospitals have had wide-reaching effects. While no customers were lost and the backlog remained intact, Omnicell underperformed because of reduced visibility into the rate at which future revenue and bookings would be recognized. PCM continues to hold this position in its portion of the Fund because PCM believes the issues are transitory.
PCM’s process focuses on rapidly growing small-cap companies trading at valuations that do not yet reflect that strong growth. PCM’s portion of the Fund is currently most overweight the healthcare and industrials sectors. Conversely, it is most underweight the energy and consumer discretionary sectors.
Neither PDG nor PCM utilized derivatives within the Fund during the fiscal year.
15
Portfolio management review
| Optimum Small-Mid Cap Value Fund | March 31, 2023 (Unaudited) |
| Performance review (for the year ended March 31, 2023) | ||
| Optimum Small-Mid Cap Value Fund (Institutional Class shares) | 1-year return | -12.19% |
| Optimum Small-Mid Cap Value Fund (Class A shares) | 1-year return | -12.44% |
| Russell 2500™ Value Index (benchmark) | 1-year return | -10.53% |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum Small-Mid Cap Value Fund, please see the table on page 32.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. The performance of both Institutional Class shares and Class A shares reflects the reinvestment of all distributions.
Please see page 33 for a description of the index. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Fund objective
The Fund seeks long-term growth of capital.
Advisor
Delaware Management Company (DMC)
Sub-advisors
LSV Asset Management (LSV)
Cardinal Capital Management LLC (Cardinal)
Market review
Small- and mid-cap value equities in the US fell during the Fund’s fiscal year ended March 31, 2023. Macroeconomic concerns dominated the stock and bond markets during the period and created a particularly challenging investment environment.
Persistent high inflation, significantly more restrictive monetary policy, the economic fallout from Russia’s invasion of Ukraine, and regional bank failures were the key issues. While inflation may have peaked, the US Federal Reserve's decision to continue aggressively raising short-term interest rates increased the likelihood of a recession in 2023.
Although economic growth in 2022 was tepid, the labor market remained quite healthy, even with increasing corporate layoffs. In fact, consumer spending has been resilient because the savings accumulated during the pandemic and prior strong wage gains have broadly offset higher prices and borrowing costs.
However, real estate and mergers-and-acquisitions activity decreased significantly during the fiscal year, as valuations adjusted to higher interest rates. A materially higher US dollar created another headwind for the profitability of many multinational companies. The Chinese government's abrupt decision to drop its zero-COVID policy also created more global economic challenges as China dealt with the impact of a surge in new COVID-19 cases. Corporate earnings began to reflect weaker economic conditions and higher input and interest costs. Considering these challenges, company guidance was generally more cautious during the 12-month period.
Within the US, value stocks broadly held up well relative to growth stocks during the fiscal period. Representing US small- to mid-cap stocks, the Russell 2500™ Index fell 10.39%, the Russell 2500 Value Index fell 10.53%, and the Russell 2500™ Growth Index fell 10.35%. US large-cap stocks held up more robustly than small-cap stocks for the fiscal year as the Russell 1000® Index fell 8.39, but the large cap index had trailed its smaller peers until the regional bank failures in March weighed down the smaller-cap indices. Similarly, value indices had outperformed their growth counterparts until the bank failures.
Within the Russell 2500 Value Index, energy was the only sector to generate a positive return while the communications, financials, and healthcare sectors suffered the steepest declines.
Source: Bloomberg, unless otherwise noted.
Fund performance
Optimum Small-Mid Cap Value Fund underperformed its benchmark, the Russell 2500 Value Index, for the fiscal year. LSV’s portion of the Fund outperformed the benchmark for the fiscal year, benefiting from strong stock selection in a variety of sectors. Cardinal’s portion of the Fund trailed the benchmark for the fiscal year, primarily because of stock selection in the consumer discretionary and financials sectors.
LSV
LSV’s portion of the Fund held up strongly relative to the benchmarks during the fiscal year. Stock selection was strong across sectors, particularly in the consumer discretionary, industrials, technology, materials, and healthcare sectors.
LSV’s portion of the Fund is broadly diversified with more than 200 stocks as of the end of the fiscal year, so any one position should typically not have a significant impact on relative performance. The two largest contributors to relative performance in LSV’s portion
16
of the Fund were Atkore Inc., a leading provider of electrical, safety, and infrastructure solutions, and Jabil Inc., an electronics manufacturer. Both stocks benefited from the continued favorable economic environment for high-quality companies that generate cash and pay dividends. LSV still views both stocks as attractively valued and continues to hold them in the Fund.
The two largest detractors from the performance in LSV’s portion of the Fund were regional banks Zion Bancorp N.A. and Customers Bancorp, which declined significantly in March 2023 following the collapse of Silicon Valley Bank and Signature Bank. Both stocks continue to be highly ranked in LSV’s model despite the uncertainty surrounding the banking sector. LSV did not have a position in Silicon Valley Bank or Signature Bank.
LSV’s portion of the Fund continues to own what it views as attractive investment opportunities across countries, sectors, and industries. The companies are fundamentally sound, generating strong cash flows and paying solid dividends. LSV’s portion of the Fund continues to trade at historically low valuations and the overall quality profile is higher now than before the pandemic. As of March 31, 2023, the growth rates and profitability ratios of LSV’s portion of the Fund were higher than both the Russell 2500 Value Index and the Russell 2500 Index.
Cardinal
Cardinal's portion of the Fund lagged the benchmark for the Fund's fiscal year. Although Cardinal was disappointed, relative performance has been similar at economic inflection points in the past. During these periods, investors generally exhibit a higher risk aversion, shorten their time horizons, and rely less on valuations owing to decreased confidence in earnings. The amount by which its portion of the Fund lagged was, nonetheless, greater than anticipated because there has not been a period of both economic weakness and rising interest rates since the early 1980s, which may have added to investors’ risk aversion.
This environment hurt business valuations and brought the mergers-and-acquisitions market to a crawl since, as interest costs rise, allowable leverage levels decline, and business forecasts become less reliable. The Biden administration’s more aggressive anti-trust enforcement has also decreased the likelihood that deals will get accomplished. As a result, the prices at which a typical buyer would find an acquisition of a company compelling due to its strong cash generation declined. This was also the case during the global financial crisis.
Cardinal employs a cash-flow-oriented investment process to manage its portion of the Fund's assets. Cardinal believes that a company's stock price is ultimately determined by its ability to generate excess cash flow and redeploy that cash to enhance shareholder value. The investment process involves making detailed five-year projections based on an analysis of the company's business and financials, as well as discussions with the company's management and knowledgeable third parties. Cardinal seeks companies with significant free cash flow, stable and predictable business models, and a motivated and competent management team.
Despite the fiscal year’s challenges, as long-term investors, Cardinal is optimistic about the Fund’s prospects because of the fundamental soundness of the portfolio companies’ businesses, their substantial free cash flow generation, ability to repurchase stock at very depressed prices, and compelling absolute valuation.
From a sector perspective, the leading detractors within Cardinal’s portion of the Fund during the fiscal year were stock selection in consumer discretionary, financials, and healthcare. In contrast, stock selection in materials and the higher weighting in energy contributed to performance in Cardinal’s portion of the Fund.
Consumer discretionary was the weakest sector for Cardinal’s portion of the Fund relative to the benchmark. Specifically, the stock price of pool supply retailer Leslie’s Inc. lagged its peers as a result of disappointing earnings owing to inventory shortages caused by supply-chain bottlenecks amid a spike in demand. Leslie’s also provided weaker-than-expected guidance based on poor consumer spending and higher interest expense. Cardinal’s portion of the Fund retained its shares of Leslie’s Inc. since it believes that management’s actions to proactively manage its supply-chain logistics and decrease its reliance on just-in-time inventory well before the upcoming pool season should result in better financial performance.
In the financials sector, stock selection within the banking industry was the primary reason for underperformance in Cardinal’s portion of the Fund. In the healthcare sector, the stock price of Syneos Health Inc. fell after the contract research provider reported weak third-quarter results and booking numbers. Cardinal sold its position in Syneos because of fundamental deterioration and management's lack of clarity on key metrics.
For the fiscal year, the strongest sector for Cardinal’s portion of the Fund was materials, where stock selection and lower weighting contributed to performance. The most significant contributor in the sector was consumer products packager Silgan Holdings Inc., as its shares rose on solid results when the company passed through most input- and labor-related costs to its customers. Investors also perceive Silgan to be relatively recession-proof, given the less cyclical nature of its customers’ products. At the end of the fiscal year, Cardinal continued to hold Silgan in its portion of the Fund in anticipation of further potential appreciation.
17
Portfolio management review
Optimum Small-Mid Cap Value Fund
Another notable contributor to relative performance for Cardinal’s portion of the Fund was Gaming and Leisure Properties Inc. The real estate investment trust (REIT) rose and significantly outpaced other REITs as the company increased its acquisition activity to diversify its customer base further. Cardinal retained its shares of Gaming and Leisure Properties in its portion of the Fund at the end of the fiscal year, in anticipation of further potential appreciation.
Neither LSV nor Cardinal utilized derivatives within the Fund during the fiscal year.
18
| Optimum Fixed Income Fund | March 31, 2023 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our website at optimummutualfunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through March 31, 2023 | ||
| 1 year | 5 year | 10 year | |
| Class A (Est. August 1, 2003) | |||
| Excluding sales charge | -6.21%* | +0.42% | +0.80% |
| Including sales charge | -10.46% | -0.50% | +0.34% |
| Class C (Est. August 1, 2003) | |||
| Excluding sales charge | -7.04%* | -0.35% | +0.05% |
| Including sales charge | -7.97% | -0.35% | +0.05% |
| Institutional Class (Est. August 1, 2003) | |||
| Excluding sales charge | -6.01%* | +0.67% | +1.05% |
| Including sales charge | -6.01% | +0.67% | +1.05% |
| Bloomberg US Aggregate Index | -4.78% | +0.91% | +1.36% |
*Total returns for the report period presented in the table differs from the return in “Financial highlights.” The total returns presented in the above table are calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total returns presented in “Financial highlights” are calculated in the same manner, but also takes into account certain adjustments that are necessary under US generally accepted accounting principles required in the annual report.
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed in the “Fund expense ratios” table on page 20. Performance would have been lower had expense limitations not been in effect.
Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual distribution and service (12b-1) fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to a 12b-1 fee of up to 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no 12b-1 fee.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
(continues)
19
Performance summaries
Optimum Fixed Income Fund
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| Fund expense ratios | Class A | Class C | Institutional Class |
| Total annual operating expenses (without fee waivers) | 1.05% | 1.80% | 0.80% |
| Net expenses (including fee waivers, if any) | 1.05% | 1.80% | 0.80% |
| Type of waiver | Contractual | Contractual | Contractual |
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult to obtain precise valuations of the high yield securities.
Securities in the lowest of the rating categories considered to be investment grade (that is, Baa or BBB) have some speculative characteristics.
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.
Diversification may not protect against market risk.
If and when the Fund invests in forward foreign currency contracts or uses other investments to hedge against currency risks, the Fund will be subject to special risks, including counterparty risk.
The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.
Portfolio turnover is a measure of how frequently the managers buy and sell assets within a fund over a particular period. It is usually reported for a 12-month time period.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
20
Performance of a $10,000 investment1
For the period March 31, 2013 through March 31, 2023
| Starting value | Ending value | ||
 |
Bloomberg US Aggregate Index | $10,000 | $11,451 |
 |
Optimum Fixed Income Fund – Institutional Class shares | $10,000 | $11,106 |
 |
Optimum Fixed Income Fund – Class A shares | $ 9,550 | $10,345 |
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2013, and includes the effect of a 4.50% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 20. Please note additional details on pages 19 through 21.
The graph also assumes $10,000 invested in the Bloomberg US Aggregate Index as of March 31, 2013. The Bloomberg US Aggregate Index is a broad-based benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.
The Bloomberg Global Aggregate Index, mentioned on page 1, provides a broad-based measure of the global investment grade fixed-rate debt markets.
The US Consumer Price Index (CPI), mentioned on page 1, is a measure of inflation that is calculated by the US Department of Labor, representing changes in prices of all goods and services purchased for consumption by urban households.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
Performance of other Fund classes will vary due to different charges and expenses.
Stock symbols and CUSIP numbers
| Nasdaq symbols |
CUSIPs | |
| Class A | OAFIX | 246118681 |
| Class C | OCFIX | 246118665 |
| Institutional Class | OIFIX | 246118657 |
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21
Performance summaries
| Optimum International Fund | March 31, 2023 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our website at optimummutualfunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through March 31, 2023 | ||
| 1 year | 5 year | 10 year | |
| Class A (Est. August 1, 2003) | |||
| Excluding sales charge | -7.49% | +0.54% | +3.59% |
| Including sales charge | -12.79% | -0.64% | +2.98% |
| Class C (Est. August 1, 2003) | |||
| Excluding sales charge | -8.19% | -0.21% | +2.82% |
| Including sales charge | -9.11% | -0.21% | +2.82% |
| Institutional Class (Est. August 1, 2003) | |||
| Excluding sales charge | -7.24% | +0.80% | +3.86% |
| Including sales charge | -7.24% | +0.80% | +3.86% |
| MSCI ACWI ex USA Index (net) | -5.07% | +2.47% | +4.17% |
| MSCI ACWI ex USA Index (gross) | -4.57% | +2.97% | +4.65% |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. The current expenses for each class are listed in the “Fund expense ratios” table below. Performance would have been lower had expense limitations not been in effect.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (12b-1) fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to a 12b-1 fee of up to 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no 12b-1 fee.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| Fund expense ratios | Class A | Class C | Institutional Class |
| Total annual operating expenses (without fee waivers) | 1.36% | 2.11% | 1.11% |
| Net expenses (including fee waivers, if any) | 1.29% | 2.04% | 1.04% |
| Type of waiver | Contractual | Contractual | Contractual |
22
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.
The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.
There is no guarantee that dividend-paying stocks will continue to pay dividends.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
Performance of a $10,000 investment1
For the period March 31, 2013 through March 31, 2023
| Starting value | Ending value | ||
 |
MSCI ACWI ex USA Index (gross) | $10,000 | $15,759 |
| |
MSCI ACWI ex USA Index (net) | $10,000 | $15,040 |
| |
Optimum International Fund – Institutional Class shares | $10,000 | $14,611 |
| |
Optimum International Fund – Class A shares | $ 9,425 | $13,410 |
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2013, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 22. Please note additional details on pages 22 through 24.
The graph also assumes $10,000 invested in the MSCI ACWI (All Country World) ex USA Index as of March 31, 2013. The MSCI ACWI ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance across developed and emerging markets worldwide, excluding the United States. Index “gross” return approximates the maximum possible dividend reinvestment. Index “net” return approximates the minimum possible dividend reinvestment, after deduction of withholding tax at the highest possible rate.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
Performance of other Fund classes will vary due to different charges and expenses.
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23
Performance summaries
Optimum International Fund
Stock symbols and CUSIP numbers
| Nasdaq | ||
| symbols | CUSIPs | |
| Class A | OAIEX | 246118731 |
| Class C | OCIEX | 246118715 |
| Institutional Class | OOIIX | 246118699 |
24
Performance summaries
| Optimum Large Cap Growth Fund | March 31, 2023 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our website at optimummutualfunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through March 31, 2023 | |||
| 1 year | 5 year | 10 year | ||
| Class A (Est. August 1, 2003) | ||||
| Excluding sales charge | -14.76% | +8.10% | +11.69% | |
| Including sales charge | -19.65% | +6.82% | +11.03% | |
| Class C (Est. August 1, 2003) | ||||
| Excluding sales charge | -15.41% | +7.29% | +10.86% | |
| Including sales charge | -16.20% | +7.29% | +10.86% | |
| Institutional Class (Est. August 1, 2003) | ||||
| Excluding sales charge | -14.59% | +8.35% | +11.97% | |
| Including sales charge | -14.59% | +8.35% | +11.97% | |
| Russell 1000 Growth Index | -10.90% | +13.66% | +14.59% | |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed in the “Fund expense ratios” table below. Performance would have been lower had expense limitations not been in effect.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (12b-1) fee of up 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to a 12b-1 fee of up to 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no 12b-1 fee.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| Fund expense ratios | Class A | Class C | Institutional Class |
| Total annual operating expenses (without fee waivers) | 1.22% | 1.97% | 0.97% |
| Net expenses (including fee waivers, if any) | 1.14% | 1.89% | 0.89% |
| Type of waiver | Contractual | Contractual | Contractual |
(continues)
25
Performance summaries
Optimum Large Cap Growth Fund
Real estate investment trust (REIT) investments are subject to many of the risks associated with direct real estate ownership, including change in economic conditions, credit risk, and interest rate fluctuations. A REIT fund’s tax status as a regulated investment company could be jeopardized if it holds real estate directly, as a result of defaults or receive rental income from real estate holdings.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
Performance of a $10,000 investment1
For the period March 31, 2013 through March 31, 2023
| Starting value | Ending value | ||
|
Russell 1000 Growth Index | $10,000 | $39,043 |
| |
Optimum Large Cap Growth Fund – Institutional Class shares | $10,000 | $30,984 |
| |
Optimum Large Cap Growth Fund – Class A shares | $ 9,425 | $28,474 |
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2013, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 25. Please note additional details on pages 25 through 27.
The graph also assumes $10,000 invested in the Russell 1000 Growth Index as of March 31, 2013. The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the US equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
Performance of other Fund classes will vary due to different charges and expenses.
26
Stock symbols and CUSIP numbers
| Nasdaq | ||
| symbols | CUSIPs | |
| Class A | OALGX | 246118707 |
| Class C | OCLGX | 246118889 |
| Institutional Class | OILGX | 246118871 |
(continues)
27
Performance summaries
| Optimum Large Cap Value Fund | March 31, 2023 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our website at optimummutualfunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through March 31, 2023 | |||
| 1 year | 5 year | 10 year | ||
| Class A (Est. August 1, 2003) | ||||
| Excluding sales charge | -5.61% | +7.38% | +7.97% | |
| Including sales charge | -11.03% | +6.11% | +7.33% | |
| Class C (Est. August 1, 2003) | ||||
| Excluding sales charge | -6.37% | +6.57% | +7.16% | |
| Including sales charge | -7.26% | +6.57% | +7.16% | |
| Institutional Class (Est. August 1, 2003) | ||||
| Excluding sales charge | -5.40% | +7.65% | +8.24% | |
| Including sales charge | -5.40% | +7.65% | +8.24% | |
| Russell 1000 Value Index | -5.91% | +7.50% | +9.13% | |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed in the “Fund expense ratios” table below. Performance would have been lower had expense limitations not been in effect.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (12b-1) fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to a 12b-1 fee of up to 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no 12b-1 fee.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| Fund expense ratios | Class A | Class C | Institutional Class |
| Total annual operating expenses (without fee waivers) | 1.18% | 1.93% | 0.93% |
| Net expenses (including fee waivers, if any) | 1.17% | 1.92% | 0.92% |
| Type of waiver | Contractual | Contractual | Contractual |
28
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
Performance of a $10,000 investment1
For the period March 31, 2013 through March 31, 2023
| Starting value | Ending value | ||
| |
Russell 1000 Value Index | $10,000 | $23,952 |
| |
Optimum Large Cap Value Fund - Institutional Class shares | $10,000 | $22,071 |
| |
Optimum Large Cap Value Fund - Class A shares | $ 9,425 | $20,278 |
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2013, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 28. Please note additional details on pages 28 through 29.
The graph also assumes $10,000 invested in the Russell 1000 Value Index as of March 31, 2013. The Russell 1000 Value Index measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
Performance of other Fund classes will vary due to different charges and expenses.
Stock symbols and CUSIP numbers
| Nasdaq symbols |
CUSIPs | |
| Class A | OALVX | 246118863 |
| Class C | OCLVX | 246118848 |
| Institutional Class | OILVX | 246118830 |
(continues)
29
Performance summaries
| Optimum Small-Mid Cap Growth Fund | March 31, 2023 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our website at optimummutualfunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through March 31, 2023 | ||
| 1 year | 5 year | 10 year | |
| Class A (Est. August 1, 2003) | |||
| Excluding sales charge | -13.08% | +9.32% | +9.81% |
| Including sales charge | -18.08% | +8.02% | +9.17% |
| Class C (Est. August 1, 2003) | |||
| Excluding sales charge | -13.76% | +8.47% | +8.99% |
| Including sales charge | -14.49% | +8.47% | +8.99% |
| Institutional Class (Est. August 1, 2003) | |||
| Excluding sales charge | -12.86% | +9.58% | +10.09% |
| Including sales charge | -12.86% | +9.58% | +10.09% |
| Russell 2500 Growth Index | -10.35% | +6.82% | +10.05% |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed in the “Fund expense ratios” table below. Performance would have been lower had expense limitations not been in effect.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (12b-1) fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to a 12b-1 fee of up to 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no 12b-1 fee.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| Fund expense ratios | Class A | Class C | Institutional Class |
| Total annual operating expenses (without fee waivers) | 1.57% | 2.32% | 1.32% |
| Net expenses (including fee waivers, if any) | 1.54% | 2.29% | 1.29% |
| Type of waiver | Contractual | Contractual | Contractual |
30
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
Performance of a $10,000 investment1
For the period March 31, 2013 through March 31, 2023
| Starting value | Ending value | ||
| |
Optimum Small-Mid Cap Growth Fund - Institutional Class shares | $10,000 | $26,152 |
| |
Russell 2500 Growth Index | $10,000 | $26,048 |
| |
Optimum Small-Mid Cap Growth Fund - Class A shares | $ 9,425 | $24,037 |
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2013, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 30. Please note additional details on pages 30 through 31.
The graph also assumes $10,000 invested in the Russell 2500 Growth Index as of March 31, 2013. The Russell 2500 Growth Index measures the performance of the small- to mid-cap growth segment of the US equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
Performance of other Fund classes will vary due to different charges and expenses.
Stock symbols and CUSIP numbers
| Nasdaq
symbols |
CUSIPs | |
| Class A | OASGX | 246118822 |
| Class C | OCSGX | 246118798 |
| Institutional Class | OISGX | 246118780 |
(continues)
31
Performance summaries
| Optimum Small-Mid Cap Value Fund | March 31, 2023 (Unaudited) |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our website at optimummutualfunds.com/performance.
| Fund and benchmark performance1,2 | Average annual total returns through March 31, 2023 | ||
| 1 year | 5 year | 10 year | |
| Class A (Est. August 1, 2003) | |||
| Excluding sales charge | -12.44% | +3.42% | +4.68% |
| Including sales charge | -17.48% | +2.21% | +4.06% |
| Class C (Est. August 1, 2003) | |||
| Excluding sales charge | -13.13% | +2.65% | +3.91% |
| Including sales charge | -13.92% | +2.65% | +3.91% |
| Institutional Class (Est. August 1, 2003) | |||
| Excluding sales charge | -12.19% | +3.68% | +4.96% |
| Including sales charge | -12.19% | +3.68% | +4.96% |
| Russell 2500 Value Index | -10.53% | +5.61% | +7.72% |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” table. Expenses for each class are listed in the “Fund expense ratios” table below. Performance would have been lower had expense limitations not been in effect.
Class A shares are sold with a maximum front-end sales charge of 5.75%, and have an annual distribution and service (12b-1) fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge (CDSC) of 1.00% if redeemed during the first 12 months. They are also subject to a 12b-1 fee of up to 1.00% of average daily net assets. Performance for Class C shares, excluding sales charges, assumes either that CDSCs did not apply or that the investment was not redeemed.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no 12b-1 fee.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. The expense ratios below may differ from the expense ratios in the “Financial highlights” since they are based on different time periods and the expense ratios in the prospectus include acquired fund fees and expenses, if any. See Note 2 in “Notes to financial statements” for additional details. Please see the “Financial highlights” section in this report for the most recent expense ratios.
| Fund expense ratios | Class A | Class C | Institutional Class |
| Total annual operating expenses (without fee waivers) | 1.46% | 2.21% | 1.21% |
| Net expenses (including fee waivers, if any) | 1.43% | 2.18% | 1.18% |
| Type of waiver | Contractual | Contractual | Contractual |
32
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective and the value of the Fund’s investments.
Performance of a $10,000 investment1
For the period March 31, 2013 through March 31, 2023
| Starting value | Ending value | ||
| |
Russell 2500 Value Index | $10,000 | $21,042 |
| |
Optimum Small-Mid Cap Value Fund - Institutional Class shares | $10,000 | $16,221 |
| |
Optimum Small-Mid Cap Value Fund - Class A shares | $ 9,425 | $14,892 |
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2013, and includes the effect of a 5.75% front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 32. Please note additional details on pages 32 through 34.
The graph also assumes $10,000 invested in the Russell 2500 Value Index as of March 31, 2013. The Russell 2500 Value Index measures the performance of the small- to mid-cap value segment of the US equity universe. It includes those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 2500 Index, mentioned on page 16, measures the performance of the small- to mid-cap segment of the US equity universe. The Russell 2500 Index is a subset of the Russell 3000® Index, representing approximately 2,500 of the smallest securities based on a combination of their market cap and current index membership.
The Russell 2500 Growth Index, mentioned on page 16, measures the performance of the small- to mid-cap growth segment of the US equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000 Index, mentioned on page 16, measures the performance of the large-cap segment of the US equity universe.
Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
Performance of other Fund classes will vary due to different charges and expenses.
(continues)
33
Performance summaries
Optimum Small-Mid Cap Value Fund
Stock symbols and CUSIP numbers
| Nasdaq symbols |
CUSIPs | |
| Class A | OASVX | 246118772 |
| Class C | OCSVX | 246118756 |
| Institutional Class | OISVX | 246118749 |
34
For the six-month period from October 1, 2022 to March 31, 2023 (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from October 1, 2022 to March 31, 2023.
Actual Expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Funds’ expenses shown in the tables reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
Optimum Fixed Income Fund
Expense analysis of an investment of $1,000
| Beginning
Account Value 10/1/22 |
Ending
Account Value 3/31/23 |
Annualized
Expense Ratio |
Expenses
Paid During Period 10/1/22 to 3/31/23* | |
| Actual Fund return† | ||||
| Class A | $1,000.00 | $1,049.20 | 1.06% | $5.42 |
| Class C | 1,000.00 | 1,043.60 | 1.81% | 9.22 |
| Institutional Class | 1,000.00 | 1,050.30 | 0.81% | 4.14 |
| Hypothetical 5% return (5% return before expenses) | ||||
| Class A | $1,000.00 | $1,019.65 | 1.06% | $5.34 |
| Class C | 1,000.00 | 1,015.91 | 1.81% | 9.10 |
| Institutional Class | 1,000.00 | 1,020.89 | 0.81% | 4.08 |
Optimum International Fund
Expense analysis of an investment of $1,000
| Beginning
Account Value 10/1/22 |
Ending
Account Value 3/31/23 |
Annualized Expense Ratio |
Expenses
Paid During Period 10/1/22 to 3/31/23* |
|
| Actual Fund return† | ||||
| Class A | $1,000.00 | $1,241.20 | 1.30% | $ 7.26 |
| Class C | 1,000.00 | 1,236.50 | 2.05% | 11.43 |
| Institutional Class | 1,000.00 | 1,242.10 | 1.05% | 5.87 |
| Hypothetical 5% return (5% return before expenses) | ||||
| Class A | $1,000.00 | $1,018.45 | 1.30% | $ 6.54 |
| Class C | 1,000.00 | 1,014.71 | 2.05% | 10.30 |
| Institutional Class | 1,000.00 | 1,019.70 | 1.05% | 5.29 |
(continues)
35
Disclosure of Fund expenses
Optimum Large Cap Growth Fund
Expense analysis of an investment of $1,000
| Beginning
Account Value 10/1/22 |
Ending
Account Value 3/31/23 |
Annualized
Expense Ratio |
Expenses
Paid During Period 10/1/22 to 3/31/23* | |
| Actual Fund return† | ||||
| Class A | $1,000.00 | $1,174.30 | 1.15% | $ 6.23 |
| Class C | 1,000.00 | 1,169.80 | 1.90% | 10.28 |
| Institutional Class | 1,000.00 | 1,175.70 | 0.90% | 4.88 |
| Hypothetical 5% return (5% return before expenses) | ||||
| Class A | $1,000.00 | $1,019.20 | 1.15% | $ 5.79 |
| Class C | 1,000.00 | 1,015.46 | 1.90% | 9.55 |
| Institutional Class | 1,000.00 | 1,020.44 | 0.90% | 4.53 |
Optimum Large Cap Value Fund
Expense analysis of an investment of $1,000
| Beginning
Account Value 10/1/22 |
Ending
Account Value 3/31/23 |
Annualized
Expense Ratio |
Expenses
Paid During Period 10/1/22 to 3/31/23* | |
| Actual Fund return† | ||||
| Class A | $1,000.00 | $1,120.70 | 1.17% | $ 6.19 |
| Class C | 1,000.00 | 1,115.50 | 1.92% | 10.13 |
| Institutional Class | 1,000.00 | 1,122.00 | 0.92% | 4.87 |
| Hypothetical 5% return (5% return before expenses) | ||||
| Class A | $1,000.00 | $1,019.10 | 1.17% | $ 5.89 |
| Class C | 1,000.00 | 1,015.36 | 1.92% | 9.65 |
| Institutional Class | 1,000.00 | 1,020.34 | 0.92% | 4.63 |
Optimum Small-Mid Cap Growth Fund
Expense analysis of an investment of $1,000
| Beginning Account Value 10/1/22 |
Ending
Account Value 3/31/23 |
Annualized
Expense Ratio |
Expenses Paid During Period 10/1/22 to 3/31/23* | |
| Actual Fund return† | ||||
| Class A | $1,000.00 | $1,075.80 | 1.54% | $ 7.97 |
| Class C | 1,000.00 | 1,071.20 | 2.29% | 11.83 |
| Institutional Class | 1,000.00 | 1,076.90 | 1.29% | 6.68 |
| Hypothetical 5% return (5% return before expenses) | ||||
| Class A | $1,000.00 | $1,017.25 | 1.54% | $ 7.75 |
| Class C | 1,000.00 | 1,013.51 | 2.29% | 11.50 |
| Institutional Class | 1,000.00 | 1,018.50 | 1.29% | 6.49 |
Optimum Small-Mid Cap Value Fund
Expense analysis of an investment of $1,000
| Beginning
Account Value 10/1/22 |
Ending
Account Value 3/31/23 |
Annualized
Expense Ratio |
Expenses
Paid During Period 10/1/22 to 3/31/23* | |
| Actual Fund return† | ||||
| Class A | $1,000.00 | $1,116.00 | 1.44% | $ 7.60 |
| Class C | 1,000.00 | 1,111.80 | 2.19% | 11.53 |
| Institutional Class | 1,000.00 | 1,118.10 | 1.19% | 6.28 |
| Hypothetical 5% return (5% return before expenses) | ||||
| Class A | $1,000.00 | $1,017.75 | 1.44% | $ 7.24 |
| Class C | 1,000.00 | 1,014.01 | 2.19% | 11.00 |
| Institutional Class | 1,000.00 | 1,019.00 | 1.19% | 5.99 |
*“Expenses Paid During Period” are equal to the relevant Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
†Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns.
In addition to the Funds' expenses reflected above and on the previous page, each Fund also indirectly bears its portion of the fees and expenses of any investment companies (Underlying Funds), including exchange-traded funds, in which it invests. The tables above and on the previous page do not reflect the expenses of any Underlying Funds.
36
Security type / sector allocations
| Optimum Fixed Income Fund | As of March 31, 2023 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager or sub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different from another fund's sector designations.
| Security type / sector | Percentage of net assets | |||
| Agency Asset-Backed Security | 0.02 | % | ||
| Agency Collateralized Mortgage Obligations | 2.52 | % | ||
| Agency Commercial Mortgage-Backed Securities | 0.06 | % | ||
| Agency Mortgage-Backed Securities | 29.13 | % | ||
| Collateralized Debt Obligations | 6.38 | % | ||
| Convertible Bonds | 0.16 | % | ||
| Corporate Bonds | 31.48 | % | ||
| Banking | 8.80 | % | ||
| Basic Industry | 1.14 | % | ||
| Brokerage | 0.20 | % | ||
| Capital Goods | 0.98 | % | ||
| Communications | 3.03 | % | ||
| Consumer Cyclical | 1.46 | % | ||
| Consumer Non-Cyclical | 3.28 | % | ||
| Energy | 2.75 | % | ||
| Finance Companies | 1.87 | % | ||
| Industrials | 0.27 | % | ||
| Insurance | 0.89 | % | ||
| Real Estate Investment Trusts | 0.82 | % | ||
| Technology | 1.38 | % | ||
| Transportation | 1.35 | % | ||
| Utilities | 3.26 | % | ||
| Municipal Bonds | 0.86 | % | ||
| Non-Agency Asset-Backed Securities | 2.06 | % | ||
| Non-Agency Collateralized Mortgage Obligations | 1.51 | % | ||
| Non-Agency Commercial Mortgage-Backed Securities | 4.69 | % | ||
| Loan Agreements | 2.21 | % | ||
| Sovereign Bonds | 4.78 | % | ||
| Supranational Banks | 0.01 | % | ||
| US Treasury Obligations | 15.20 | % | ||
| Common Stock | 0.02 | % | ||
| Options Purchased | 0.22 | % | ||
| Short-Term Investments | 26.95 | % | ||
| Total Value of Securities Before Options Written | 128.26 | % | ||
| Options Written | (0.31 | )% | ||
| Liabilities Net of Receivables and Other Assets | (27.95 | )% | ||
| Total Net Assets | 100.00 | % | ||
(continues)
37
Security type / sector and country allocations
| Optimum International Fund | As of March 31, 2023 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager or sub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different from another fund's sector designations.
| Security type / country | Percentage of net assets | |||
| Common Stocks by Country | 97.93 | % | ||
| Australia | 5.68 | % | ||
| Austria | 0.42 | % | ||
| Belgium | 0.18 | % | ||
| Brazil | 3.41 | % | ||
| Canada | 4.00 | % | ||
| China/Hong Kong | 12.18 | % | ||
| Denmark | 4.81 | % | ||
| Egypt | 0.00 | % | ||
| Finland | 0.78 | % | ||
| France | 6.67 | % | ||
| Germany | 6.28 | % | ||
| Greece | 0.07 | % | ||
| Hong Kong | 0.01 | % | ||
| Hungary | 0.37 | % | ||
| India | 2.78 | % | ||
| Indonesia | 1.07 | % | ||
| Iraq | 0.00 | % | ||
| Ireland | 3.71 | % | ||
| Israel | 1.68 | % | ||
| Italy | 1.11 | % | ||
| Japan | 11.15 | % | ||
| Malaysia | 0.07 | % | ||
| Mexico | 0.15 | % | ||
| Netherlands | 5.24 | % | ||
| New Zealand | 0.00 | % | ||
| Norway | 1.11 | % | ||
| Panama | 0.56 | % | ||
| Philippines | 0.03 | % | ||
| Poland | 0.19 | % | ||
| Portugal | 0.00 | % | ||
| Republic of Korea | 2.56 | % | ||
| Russia | 0.00 | % | ||
| Singapore | 0.75 | % | ||
| South Africa | 1.37 | % | ||
| Spain | 1.87 | % | ||
| Sweden | 2.45 | % | ||
| Switzerland | 3.83 | % | ||
| Taiwan | 4.84 | % | ||
| Thailand | 1.22 | % | ||
| Turkey | 0.07 | % | ||
| Ukraine | 0.17 | % | ||
| United Arab Emirates | 0.66 | % | ||
| United Kingdom | 2.58 | % | ||
| United States | 1.85 | % | ||
| Preferred Stocks | 0.46 | % | ||
| Exchange-Traded Funds | 0.38 | % | ||
| Short-Term Investments | 0.58 | % | ||
| Total Value of Securities | 99.35 | % | ||
| Receivables and Other Assets Net of Liabilities | 0.65 | % | ||
| Total Net Assets | 100.00 | % | ||
| Common stocks and preferred stocks by sector | Percentage of net assets | |||
| Communication Services | 6.57 | % | ||
| Consumer Discretionary | 15.05 | % | ||
| Consumer Staples | 4.42 | % | ||
| Energy | 4.51 | % | ||
| Financials | 15.86 | % | ||
| Healthcare | 5.40 | % | ||
| Industrials | 21.08 | % | ||
| Information Technology | 15.27 | % | ||
| Materials | 9.30 | % | ||
| Real Estate | 0.59 | % | ||
| Utilities | 0.34 | % | ||
| Total | 98.39 | % | ||
38
Security type / sector allocations and top 10 equity holdings
| Optimum Large Cap Growth Fund | As of March 31, 2023 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager or sub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different from another fund's sector designations.
| Percentage | |
| Security type / sector | of net assets |
| Common Stocks | 99.12% |
| Communication Services | 6.93% |
| Consumer Discretionary | 15.53% |
| Consumer Staples | 5.01% |
| Energy | 1.05% |
| Financials | 9.61% |
| Healthcare | 12.31% |
| Industrials | 7.10% |
| Information Technology* | 40.68% |
| Materials | 0.68% |
| Real Estate | 0.22% |
| Exchange-Traded Fund | 0.16% |
| Rights | 0.00% |
| Short-Term Investments | 0.12% |
| Total Value of Securities | 99.40% |
| Receivables and Other Assets Net of Liabilities | 0.60% |
| Total Net Assets | 100.00% |
*To monitor compliance with the Fund’s concentration guidelines as described in the Fund’s Prospectus and Statement of Additional Information, the Information Technology sector (as disclosed herein for financial reporting purposes) is subdivided into a variety of “industries” (in accordance with the requirements of the Investment Company Act of 1940, as amended). The Information Technology sector consisted of Commercial Services, Computers, Electrical Components & Equipment, Electronics, Internet, Machinery-Diversified, Semiconductors, Software, and Telecommunications. As of March 31, 2023, such amounts, as a percentage of total net assets were 0.03%, 14.16%, 0.21%, 0.10%, 0.81%, 0.50%, 10.70%, 13.79%, and 0.37% respectively. The percentage in any such single industry will comply with the Fund’s concentration policy even if the percentage in the Information Technology sector for financial reporting purposes may exceed 25%.
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | |
| Top 10 equity holdings | of net assets |
| Apple | 12.55% |
| Microsoft | 7.47% |
| Amazon.com | 4.53% |
| NVIDIA | 4.24% |
| Mastercard Class A | 3.10% |
| Visa Class A | 3.07% |
| Tesla | 2.88% |
| Alphabet Class A | 2.64% |
| Alphabet Class C | 2.62% |
| UnitedHealth Group | 2.50% |
(continues)
39
Security type / sector allocations and top 10 equity holdings
| Optimum Large Cap Value Fund | As of March 31, 2023 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager or sub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different from another fund's sector designations.
| Percentage | |
| Security type / sector | of net assets |
| Common Stocks | 98.43% |
| Communication Services | 6.58% |
| Consumer Discretionary | 3.32% |
| Consumer Staples | 6.31% |
| Energy | 6.83% |
| Financials | 21.91% |
| Healthcare | 18.08% |
| Industrials | 15.03% |
| Information Technology | 8.23% |
| Materials | 3.80% |
| Real Estate | 2.63% |
| Utilities | 5.71% |
| Short-Term Investments | 1.54% |
| Total Value of Securities | 99.97% |
| Receivables and Other Assets Net of Liabilities | 0.03% |
| Total Net Assets | 100.00% |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | |
| Top 10 equity holdings | of net assets |
| JPMorgan Chase & Co. | 3.30% |
| Johnson & Johnson | 2.07% |
| Thermo Fisher Scientific | 2.01% |
| Merck & Co. | 1.93% |
| ConocoPhillips | 1.87% |
| Duke Energy | 1.85% |
| Exxon Mobil | 1.76% |
| Abbott Laboratories | 1.72% |
| Comcast Class A | 1.71% |
| Boston Scientific | 1.62% |
40
Security type / sector allocations and top 10 equity holdings
| Optimum Small-Mid Cap Growth Fund | As of March 31, 2023 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager or sub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different from another fund's sector designations.
| Percentage | |
| Security type / sector | of net assets |
| Common Stocks | 97.05% |
| Communication Services | 0.18% |
| Consumer Discretionary | 16.36% |
| Consumer Staples | 6.79% |
| Energy | 2.73% |
| Financials | 7.83% |
| Healthcare | 18.95% |
| Industrials | 19.21% |
| Information Technology | 22.14% |
| Materials | 1.94% |
| Real Estate | 0.92% |
| Convertible Preferred Stock | 0.01% |
| Warrant | 0.00% |
| Short-Term Investments | 3.28% |
| Total Value of Securities | 100.34% |
| Liabilities Net of Receivables and Other Assets | (0.34)% |
| Total Net Assets | 100.00% |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | |
| Top 10 equity holdings | of net assets |
| Lamb Weston Holdings | 1.79% |
| Academy Sports & Outdoors | 1.68% |
| Quanta Services | 1.64% |
| Five Below | 1.52% |
| DoubleVerify Holdings | 1.48% |
| Exact Sciences | 1.46% |
| elf Beauty | 1.33% |
| Matador Resources | 1.30% |
| Inspire Medical Systems | 1.27% |
| HubSpot | 1.25% |
(continues)
41
Security type / sector allocations and top 10 equity holdings
| Optimum Small-Mid Cap Value Fund | As of March 31, 2023 (Unaudited) |
Sector designations may be different from the sector designations presented in other Fund materials. The sector designations may represent the investment manager or sub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different from another fund's sector designations.
| Percentage | |
| Security type / sector | of net assets |
| Common Stocks | 97.13% |
| Communication Services | 5.86% |
| Consumer Discretionary | 11.63% |
| Consumer Staples | 4.73% |
| Energy | 5.70% |
| Financials | 17.90% |
| Healthcare | 5.20% |
| Industrials | 15.82% |
| Information Technology | 8.73% |
| Materials | 12.00% |
| Real Estate | 8.04% |
| Utilities | 1.52% |
| Short-Term Investments | 2.65% |
| Total Value of Securities | 99.78% |
| Receivables and Other Assets Net of Liabilities | 0.22% |
| Total Net Assets | 100.00% |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| Percentage | |
| Top 10 equity holdings | of net assets |
| Silgan Holdings | 3.08% |
| Nexstar Media Group | 2.64% |
| Gaming and Leisure Properties | 2.18% |
| Ziff Davis | 1.68% |
| BWX Technologies | 1.61% |
| Axalta Coating Systems | 1.56% |
| Ashland | 1.49% |
| DT Midstream | 1.48% |
| FMC | 1.47% |
| Verint Systems | 1.47% |
42
| Optimum Fixed Income Fund | March 31, 2023 |
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Agency Asset-Backed Security — 0.02% | ||||||||
| SLM Student Loan Trust Series 2008-9 A 6.318% (LIBOR03M + 1.50%) 4/25/23 • | 467,563 | $ | 465,880 | |||||
| Total Agency Asset-Backed Security (cost $467,568) | 465,880 | |||||||
| Agency Collateralized Mortgage Obligations — 2.52% | ||||||||
| Fannie Mae Grantor Trust | ||||||||
| Series 1999-T2 A1 7.50% 1/19/39 • | 2,938 | 2,957 | ||||||
| Series 2004-T1 1A2 6.50% 1/25/44 | 2,902 | 3,003 | ||||||
| Fannie Mae REMIC Trust | ||||||||
| Series 2004-W11 1A2 6.50% 5/25/44 | 21,591 | 22,321 | ||||||
| Series 2004-W15 1A1 6.00% 8/25/44 | 14,597 | 14,824 | ||||||
| Fannie Mae REMICs | ||||||||
| Series 1999-19 PH 6.00% 5/25/29 | 23,195 | 23,614 | ||||||
| Series 2001-14 Z 6.00% 5/25/31 | 1,511 | 1,524 | ||||||
| Series 2007-30 OE 1.784% 4/25/37 W, ^ | 1,230,871 | 925,283 | ||||||
| Series 2008-24 ZA 5.00% 4/25/38 | 4,011,354 | 4,057,832 | ||||||
| Series 2009-2 AS 0.855% (5.70% minus LIBOR01M, Cap 5.70%) 2/25/39 å, • | 238,779 | 16,171 | ||||||
| Series 2009-68 SA 1.905% (6.75% minus LIBOR01M, Cap 6.75%) 9/25/39 å, • | 88,574 | 10,593 | ||||||
| Series 2011-118 DC 4.00% 11/25/41 | 258,632 | 247,046 | ||||||
| Series 2017-40 GZ 3.50% 5/25/47 | 407,035 | 372,670 | ||||||
| Series 2017-95 FA 3.834% (LIBOR01M + 0.35%, Floor 0.35%) 11/25/47 • | 225,406 | 218,565 | ||||||
| Freddie Mac REMICs | ||||||||
| Series 2165 PE 6.00% 6/15/29 | 22,750 | 23,238 | ||||||
| Series 3143 BC 5.50% 2/15/36 | 668,516 | 688,552 | ||||||
| Freddie Mac REMICs | ||||||||
| Series 3289 SA 2.066% (6.75% minus LIBOR01M, Cap 6.75%) 3/15/37 å, • | 277,867 | 28,301 | ||||||
| Series 4676 KZ 2.50% 7/15/45 | 378,152 | 333,727 | ||||||
| Freddie Mac Structured Agency Credit Risk REMIC Trust | ||||||||
| Series 2019-DNA4 M2 144A 6.795% (LIBOR01M + 1.95%) 10/25/49 #, • | 80,544 | 80,344 | ||||||
| Series 2019-HQA4 M2 144A 6.895% (LIBOR01M + 2.05%) 11/25/49 #, • | 32,543 | 32,543 | ||||||
| Series 2020-DNA2 M2 144A 6.695% (LIBOR01M + 1.85%) 2/25/50 #, • | 202,886 | 201,620 | ||||||
| Series 2020-DNA6 M2 144A 6.56% (SOFR + 2.00%) 12/25/50 #, • | 2,995,269 | 2,997,193 | ||||||
| Series 2021-DNA1 M2 144A 6.36% (SOFR + 1.80%) 1/25/51 #, • | 5,592,355 | 5,515,590 | ||||||
| Series 2021-DNA3 M2 144A 6.66% (SOFR + 2.10%) 10/25/33 #, • | 2,500,000 | 2,415,703 | ||||||
| Series 2021-HQA1 M2 144A 6.81% (SOFR + 2.25%) 8/25/33 #, • | 7,000,000 | 6,738,369 | ||||||
| Series 2021-HQA2 M2 144A 6.61% (SOFR + 2.05%) 12/25/33 #, • | 5,000,000 | 4,731,437 | ||||||
| Series 2022-DNA1 M2 144A 7.06% (SOFR + 2.50%) 1/25/42 #, • | 3,000,000 | 2,767,500 | ||||||
| Series 2022-DNA2 M2 144A 8.31% (SOFR + 3.75%) 2/25/42 #, • | 1,000,000 | 962,527 | ||||||
| Freddie Mac Structured Agency Credit Risk REMICs Trust | ||||||||
| Series 2021-DNA5 M2 144A 6.21% (SOFR + 1.65%) 1/25/34 #, • | 2,740,781 | 2,689,645 | ||||||
43
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Agency Collateralized Mortgage Obligations (continued) | ||||||||
| Freddie Mac Structured Pass Through Certificates | ||||||||
| Series T-54 2A 6.50% 2/25/43 t | 9,539 | $ | 10,125 | |||||
| Series T-58 2A 6.50% 9/25/43 t | 3,289 | 3,358 | ||||||
| GNMA | ||||||||
| Series 2008-65 SB 1.239% (6.00% minus LIBOR01M, Cap 6.00%) 8/20/38 å, • | 234,381 | 9,443 | ||||||
| Series 2009-2 SE 1.059% (5.82% minus LIBOR01M, Cap 5.82%) 1/20/39 å, • | 772,673 | 44,352 | ||||||
| Series 2011-H21 FT 5.39% (H15T1Y + 0.70%, Cap 15.25%, Floor 0.70%) 10/20/61 • | 2,887,801 | 2,882,086 | ||||||
| Series 2011-H23 FA 5.266% (LIBOR01M + 0.70%, Cap 11.00%, Floor 0.70%) 10/20/61 • | 2,021,215 | 2,016,424 | ||||||
| Series 2012-H08 FB 5.166% (LIBOR01M + 0.60%, Cap 11.00%, Floor 0.60%) 3/20/62 • | 225,664 | 224,845 | ||||||
| Series 2012-H18 NA 5.086% (LIBOR01M + 0.52%, Cap 10.50%, Floor 0.52%) 8/20/62 • | 141,594 | 140,794 | ||||||
| Series 2012-H29 SA 5.081% (LIBOR01M + 0.515%, Cap 12.00%, Floor 0.515%) 10/20/62 • | 2,754,521 | 2,738,168 | ||||||
| Series 2013-113 LY 3.00% 5/20/43 | 173,000 | 158,086 | ||||||
| Series 2015-H10 FA 5.166% (LIBOR01M + 0.60%, Cap 7.50%) 4/20/65 • | 7,754,314 | 7,675,397 | ||||||
| Series 2015-H11 FC 5.116% (LIBOR01M + 0.55%, Cap 7.50%, Floor 0.55%) 5/20/65 • | 895,104 | 885,755 | ||||||
| GNMA | ||||||||
| Series 2015-H12 FB 5.166% (LIBOR01M + 0.60%, Cap 7.50%, Floor 0.60%) 5/20/65 • | 3,917,999 | 3,882,405 | ||||||
| Series 2015-H20 FB 5.166% (LIBOR01M + 0.60%, Cap 7.50%, Floor 0.60%) 8/20/65 • | 1,046,030 | 1,033,931 | ||||||
| Series 2015-H30 FD 5.166% (LIBOR01M + 0.60%, Cap 11.00%, Floor 0.60%) 10/20/65 • | 53,162 | 52,942 | ||||||
| Series 2016-H06 FD 5.486% (LIBOR01M + 0.92%, Cap 7.50%, Floor 0.92%) 7/20/65 • | 1,037,495 | 1,032,738 | ||||||
| Series 2017-163 ZK 3.50% 11/20/47 | 2,638,900 | 2,491,435 | ||||||
| Total Agency Collateralized Mortgage Obligations (cost $63,138,572) | 61,404,976 | |||||||
| Agency Commercial Mortgage-Backed Securities — 0.06% | ||||||||
| Freddie Mac Multifamily Structured Pass Through Certificates | ||||||||
| Series X3FX A2FX 3.00% 6/25/27 t | 1,070,000 | 1,020,923 | ||||||
| FREMF Mortgage Trust | ||||||||
| Series 2017-K71 B 144A 3.752% 11/25/50 #, • | 470,000 | 440,562 | ||||||
| Total Agency Commercial Mortgage-Backed Securities (cost $1,519,988) | 1,461,485 | |||||||
| Agency Mortgage-Backed Securities — 29.13% | ||||||||
| Fannie Mae | ||||||||
| 5.50% 3/1/37 | 4,642 | 4,678 | ||||||
| Fannie Mae S.F. 15 yr | ||||||||
| 2.00% 3/1/36 | 3,101,874 | 2,800,486 | ||||||
| 2.50% 7/1/36 | 5,765,304 | 5,357,154 | ||||||
| Fannie Mae S.F. 20 yr | ||||||||
| 2.00% 3/1/41 | 2,872,586 | 2,483,226 | ||||||
| 2.00% 5/1/41 | 2,635,842 | 2,278,738 | ||||||
| 3.00% 9/1/37 | 1,287,304 | 1,209,859 | ||||||
| Fannie Mae S.F. 30 yr | ||||||||
| 2.00% 12/1/50 | 7,742,476 | 6,425,730 | ||||||
44
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Agency Mortgage-Backed Securities (continued) | ||||||||
| Fannie Mae S.F. 30 yr | ||||||||
| 2.00% 1/1/51 | 971,497 | $ | 813,197 | |||||
| 2.00% 2/1/51 | 3,663,872 | 3,052,619 | ||||||
| 2.00% 4/1/51 | 4,824,279 | 3,999,348 | ||||||
| 2.00% 8/1/51 | 1,357,466 | 1,126,087 | ||||||
| 2.00% 1/1/52 | 3,806,430 | 3,175,039 | ||||||
| 2.50% 10/1/50 | 1,384,381 | 1,196,276 | ||||||
| 2.50% 1/1/51 | 2,823,951 | 2,450,509 | ||||||
| 2.50% 4/1/51 | 2,314,372 | 1,995,260 | ||||||
| 2.50% 7/1/51 | 1,245,830 | 1,080,503 | ||||||
| 2.50% 8/1/51 | 7,073,632 | 6,149,185 | ||||||
| 2.50% 2/1/52 | 5,710,850 | 4,946,048 | ||||||
| 2.50% 4/1/52 | 63,922 | 55,275 | ||||||
| 3.00% 10/1/42 | 1,206,095 | 1,112,356 | ||||||
| 3.00% 4/1/43 | 408,370 | 376,861 | ||||||
| 3.00% 1/1/47 | 1,618,309 | 1,492,593 | ||||||
| 3.00% 11/1/48 | 636,121 | 582,376 | ||||||
| 3.00% 12/1/49 | 3,524,172 | 3,197,372 | ||||||
| 3.00% 3/1/50 | 1,586,003 | 1,435,504 | ||||||
| 3.00% 7/1/50 | 752,642 | 679,813 | ||||||
| 3.00% 5/1/51 | 533,780 | 484,958 | ||||||
| 3.00% 7/1/51 | 4,373,023 | 3,954,161 | ||||||
| 3.00% 8/1/51 | 1,636,938 | 1,474,718 | ||||||
| 3.00% 12/1/51 | 495,914 | 448,763 | ||||||
| 3.00% 2/1/52 | 3,071,121 | 2,767,249 | ||||||
| 3.50% 2/1/47 | 2,193,029 | 2,091,667 | ||||||
| 3.50% 7/1/47 | 1,759,811 | 1,678,867 | ||||||
| 3.50% 1/1/48 | 846,099 | 798,878 | ||||||
| 3.50% 2/1/48 | 1,540,312 | 1,452,560 | ||||||
| 3.50% 11/1/48 | 958,656 | 904,040 | ||||||
| 3.50% 1/1/50 | 1,253,491 | 1,175,343 | ||||||
| 3.50% 3/1/50 | 567,942 | 536,455 | ||||||
| 3.50% 8/1/50 | 6,443,216 | 6,069,891 | ||||||
| 3.50% 1/1/52 | 956,204 | 888,612 | ||||||
| 3.50% 3/1/52 | 3,346,352 | 3,140,083 | ||||||
| 3.50% 4/1/52 | 2,332,346 | 2,188,082 | ||||||
| 3.50% 5/1/52 | 3,235,566 | 3,031,934 | ||||||
| 3.50% 6/1/52 | 16,375,983 | 15,217,597 | ||||||
| 4.00% 10/1/40 | 8,814 | 8,626 | ||||||
| 4.00% 11/1/40 | 35,258 | 34,333 | ||||||
| 4.00% 3/1/46 | 53,960 | 52,626 | ||||||
| 4.00% 3/1/47 | 2,985,643 | 2,910,942 | ||||||
| 4.00% 4/1/47 | 453,862 | 444,097 | ||||||
| 4.00% 6/1/48 | 2,182,567 | 2,124,256 | ||||||
| 4.00% 9/1/48 | 2,610,951 | 2,535,843 | ||||||
| 4.00% 10/1/48 | 2,345,676 | 2,302,823 | ||||||
| 4.00% 1/1/49 | 41,721 | 40,521 | ||||||
| 4.00% 3/1/49 | 118,365 | 114,960 | ||||||
| 4.00% 6/1/49 | 540,478 | 528,087 | ||||||
| 4.00% 5/1/51 | 2,903,029 | 2,808,824 | ||||||
| 4.50% 5/1/35 | 26,354 | 26,373 | ||||||
| 4.50% 8/1/35 | 43,549 | 43,586 | ||||||
| 4.50% 9/1/35 | 51,653 | 51,818 | ||||||
| 4.50% 5/1/39 | 169,907 | 170,871 | ||||||
| 4.50% 6/1/40 | 123,695 | 124,397 | ||||||
| 4.50% 7/1/40 | 159,798 | 156,094 | ||||||
| 4.50% 4/1/41 | 12,693 | 12,682 | ||||||
| 4.50% 1/1/42 | 1,761,529 | 1,762,530 | ||||||
| 4.50% 5/1/46 | 115,332 | 115,987 | ||||||
| 4.50% 4/1/48 | 651,686 | 658,195 | ||||||
| 4.50% 7/1/48 | 128,974 | 128,532 | ||||||
| 4.50% 8/1/48 | 91,335 | 90,640 | ||||||
| 4.50% 9/1/48 | 224,958 | 223,359 | ||||||
| 4.50% 12/1/48 | 177,951 | 177,101 | ||||||
| 4.50% 1/1/49 | 5,162,813 | 5,155,878 | ||||||
| 4.50% 1/1/50 | 1,894,672 | 1,897,314 | ||||||
| 4.50% 9/1/52 | 626,208 | 613,524 | ||||||
| 4.50% 10/1/52 | 18,829,593 | 18,453,725 | ||||||
| 5.00% 3/1/34 | 814 | 831 | ||||||
| 5.00% 4/1/34 | 4,098 | 4,185 | ||||||
| 5.00% 8/1/34 | 7,496 | 7,656 | ||||||
| 5.00% 4/1/35 | 1,654 | 1,676 | ||||||
| 5.00% 12/1/37 | 684 | 693 | ||||||
| 5.00% 3/1/38 | 41,919 | 42,590 | ||||||
| 5.00% 6/1/38 | 860 | 866 | ||||||
| 5.00% 5/1/40 | 64,849 | 66,231 | ||||||
| 5.00% 7/1/47 | 327,263 | 334,218 | ||||||
| 5.00% 1/1/51 | 3,549,272 | 3,587,838 | ||||||
| 5.00% 7/1/52 | 3,566,672 | 3,567,849 | ||||||
| 5.00% 10/1/52 | 10,369,439 | 10,401,992 | ||||||
| 5.50% 12/1/33 | 7,547 | 7,640 | ||||||
| 5.50% 2/1/35 | 126,702 | 131,700 | ||||||
| 5.50% 5/1/44 | 4,329,642 | 4,478,753 | ||||||
| 5.50% 10/1/52 | 8,777,297 | 8,906,079 | ||||||
| 5.50% 11/1/52 | 4,696,568 | 4,787,741 | ||||||
| 5.50% 12/1/52 | 794,924 | 802,917 | ||||||
| 5.50% 3/1/53 | 12,474,022 | 12,599,447 | ||||||
| 6.00% 9/1/36 | 6,206 | 6,337 | ||||||
| 6.00% 8/1/38 | 12,615 | 12,877 | ||||||
| 6.00% 12/1/38 | 2,681 | 2,799 | ||||||
| 6.00% 6/1/41 | 896,281 | 931,923 | ||||||
| 6.00% 7/1/41 | 3,059,993 | 3,197,067 | ||||||
| 6.00% 1/1/42 | 760,895 | 794,903 | ||||||
| 6.00% 12/1/52 | 3,254,764 | 3,325,265 | ||||||
| 6.50% 11/1/33 | 1,537 | 1,586 | ||||||
| 6.50% 2/1/36 | 25,327 | 26,662 | ||||||
| 6.50% 3/1/36 | 45,742 | 47,251 | ||||||
| 6.50% 6/1/36 | 33,280 | 34,735 | ||||||
| 6.50% 2/1/38 | 9,516 | 9,908 | ||||||
| 6.50% 11/1/38 | 1,961 | 2,057 | ||||||
45
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Agency Mortgage-Backed Securities (continued) | ||||||||
| Fannie Mae S.F. 30 yr TBA | ||||||||
| 2.00% 5/15/53 | 50,200,000 | $ | 41,537,158 | |||||
| 2.50% 5/15/53 | 41,200,000 | 35,547,875 | ||||||
| 3.00% 5/15/52 | 173,000,000 | 155,388,098 | ||||||
| 3.50% 5/15/53 | 72,100,000 | 67,038,919 | ||||||
| 4.00% 4/1/53 | 56,500,000 | 54,037,171 | ||||||
| 4.50% 4/1/53 | 18,100,000 | 17,734,304 | ||||||
| 5.00% 4/1/53 | 4,400,000 | 4,388,313 | ||||||
| Freddie Mac ARM | ||||||||
| 3.555% (LIBOR12M + 2.18%, Cap 10.528%, Floor 2.18%) 5/1/37 • | 38,513 | 37,799 | ||||||
| 4.00% (LIBOR12M + 1.625%, Cap 10.50%, Floor 1.625%) 2/1/38 • | 12,042 | 11,788 | ||||||
| Freddie Mac S.F. 15 yr | ||||||||
| 2.00% 12/1/35 | 2,300,045 | 2,086,472 | ||||||
| 3.00% 3/1/35 | 6,817,123 | 6,463,470 | ||||||
| Freddie Mac S.F. 20 yr | ||||||||
| 2.00% 3/1/41 | 3,280,606 | 2,835,907 | ||||||
| 2.50% 6/1/41 | 5,881,834 | 5,246,826 | ||||||
| 3.00% 4/1/42 | 1,725,360 | 1,578,578 | ||||||
| 5.00% 11/1/42 | 3,260,023 | 3,283,307 | ||||||
| 5.50% 10/1/23 | 684 | 691 | ||||||
| 5.50% 8/1/24 | 895 | 905 | ||||||
| Freddie Mac S.F. 30 yr | ||||||||
| 2.00% 9/1/51 | 4,777,557 | 3,965,311 | ||||||
| 2.00% 3/1/52 | 1,925,093 | 1,592,403 | ||||||
| 2.50% 10/1/50 | 2,433,724 | 2,127,363 | ||||||
| 2.50% 11/1/50 | 2,250,049 | 1,939,353 | ||||||
| 2.50% 2/1/51 | 4,177,494 | 3,651,420 | ||||||
| 2.50% 10/1/51 | 6,526,957 | 5,668,930 | ||||||
| 3.00% 11/1/46 | 2,242,969 | 2,057,230 | ||||||
| 3.00% 1/1/47 | 1,651,887 | 1,511,622 | ||||||
| 3.00% 11/1/49 | 2,218,568 | 2,008,377 | ||||||
| 3.00% 1/1/50 | 584,265 | 531,198 | ||||||
| 3.00% 7/1/50 | 901,886 | 821,654 | ||||||
| 3.00% 12/1/50 | 169,113 | 153,754 | ||||||
| 3.00% 5/1/51 | 5,482,972 | 5,010,443 | ||||||
| 3.00% 8/1/51 | 1,473,084 | 1,329,614 | ||||||
| 3.00% 1/1/52 | 562,051 | 505,030 | ||||||
| 3.00% 8/1/52 | 4,159,660 | 3,764,309 | ||||||
| 3.50% 8/1/48 | 17,989 | 16,959 | ||||||
| 3.50% 9/1/48 | 1,576,969 | 1,486,984 | ||||||
| 3.50% 11/1/48 | 4,371,000 | 4,132,465 | ||||||
| 3.50% 4/1/52 | 2,022,494 | 1,888,632 | ||||||
| 4.00% 12/1/45 | 422,087 | 414,485 | ||||||
| 4.00% 7/1/47 | 136,905 | 133,422 | ||||||
| 4.00% 10/1/47 | 1,322,027 | 1,276,229 | ||||||
| 4.00% 9/1/52 | 11,733,489 | 11,263,141 | ||||||
| 4.50% 8/1/48 | 770,880 | 769,105 | ||||||
| 4.50% 1/1/49 | 2,738,709 | 2,724,828 | ||||||
| 4.50% 3/1/49 | 164,373 | 163,721 | ||||||
| 4.50% 4/1/49 | 684,161 | 682,660 | ||||||
| 4.50% 8/1/49 | 1,477,633 | 1,478,030 | ||||||
| 5.00% 7/1/52 | 6,015,121 | 6,024,521 | ||||||
| 5.50% 9/1/41 | 1,238,593 | 1,287,259 | ||||||
| 5.50% 9/1/52 | 5,262,649 | 5,362,381 | ||||||
| 5.50% 11/1/52 | 3,465,803 | 3,515,335 | ||||||
| 5.50% 3/1/53 | 4,974,000 | 5,088,197 | ||||||
| 6.50% 11/1/33 | 13,424 | 13,951 | ||||||
| 6.50% 1/1/35 | 39,964 | 42,472 | ||||||
| 7.00% 1/1/38 | 4,974 | 4,958 | ||||||
| GNMA I S.F. 30 yr | ||||||||
| 3.00% 8/15/45 | 4,602,529 | 4,261,865 | ||||||
| 3.00% 3/15/50 | 367,057 | 336,665 | ||||||
| 5.50% 10/15/42 | 2,098,585 | 2,196,945 | ||||||
| GNMA II S.F. 30 yr | ||||||||
| 3.00% 8/20/50 | 687,618 | 638,584 | ||||||
| 5.00% 9/20/52 | 1,675,872 | 1,678,906 | ||||||
| 5.50% 5/20/37 | 50,624 | 52,944 | ||||||
| 5.50% 6/20/49 | 3,417,500 | 3,502,613 | ||||||
| 6.00% 4/20/34 | 1,434 | 1,435 | ||||||
| GNMA II S.F. 30 yr TBA | ||||||||
| 4.00% 4/20/53 | 6,000,000 | 5,776,429 | ||||||
| Total Agency Mortgage-Backed
Securities (cost $730,661,866) |
709,744,479 | |||||||
| Collateralized Debt Obligations — 6.38% | ||||||||
| 522 Funding CLO | ||||||||
| Series 2018-3A AR 144A 5.848% (LIBOR03M + 1.04%, Floor 1.04%) 10/20/31 #, • | 1,200,000 | 1,176,235 | ||||||
| Adagio V CLO DAC | ||||||||
| Series V-A ARR 144A 3.008% (EUR003M + 0.72%, Floor 0.72%) 10/15/31 #, • | EUR | 1,100,000 | 1,160,874 | |||||
| AMMC CLO 16 | ||||||||
| Series 2015-16A AR2 144A 5.772% (LIBOR03M + 0.98%, Floor 0.98%) 4/14/29 #, • | 378,676 | 376,975 | ||||||
46
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Collateralized Debt Obligations (continued) | ||||||||
| Anchorage Capital CLO 9 | ||||||||
| Series 2016-9A AR2 144A 5.932% (LIBOR03M + 1.14%, Floor 1.14%) 7/15/32 #, • | 1,800,000 | $ | 1,769,062 | |||||
| Anchorage Capital CLO 11 | ||||||||
| Series 2019-11A AR 144A 5.955% (LIBOR03M + 1.14%, Floor 1.14%) 7/22/32 #, • | 1,200,000 | 1,174,903 | ||||||
| Apex Credit CLO | ||||||||
| Series 2018-1A A2 144A 5.848% (LIBOR03M + 1.03%) 4/25/31 #, • | 2,400,000 | 2,347,142 | ||||||
| Apidos CLO XXIV | ||||||||
| Series 2016-24A A1AL 144A 5.758% (LIBOR03M + 0.95%, Floor 0.95%) 10/20/30 #, • | 1,350,000 | 1,328,279 | ||||||
| Aqueduct European CLO DAC | ||||||||
| Series 2017-1A AR 144A 2.982% (EUR003M + 0.64%, Floor 0.64%) 7/20/30 #, • | EUR | 1,646,623 | 1,750,245 | |||||
| Ares European CLO | ||||||||
| Series 7A A1RR 144A 2.948% (EUR003M + 0.66%, Floor 0.66%) 10/15/30 #, • | EUR | 1,293,268 | 1,372,375 | |||||
| Ares European CLO X DAC | ||||||||
| Series 10A AR 144A 3.068% (EUR003M + 0.78%, Floor 0.78%) 10/15/31 #, • | EUR | 2,700,000 | 2,844,174 | |||||
| Ares European CLO XII DAC | ||||||||
| Series 12A AR 144A 3.192% (EUR003M + 0.85%, Floor 0.85%) 4/20/32 #, • | EUR | 300,000 | 317,369 | |||||
| Ares European CLO XIV DAC | ||||||||
| Series 14A A 144A3.513% (EUR003M + 1.12%, Floor 1.12%) 10/21/33 #, • | EUR | 3,750,000 | 3,991,292 | |||||
| Ares XL CLO | ||||||||
| Series 2016-40A A1RR 144A 5.662% (LIBOR03M + 0.87%, Floor 0.87%) 1/15/29 #, • | 1,681,360 | 1,667,228 | ||||||
| Ares XXXIX CLO | ||||||||
| Series 2016-39A A1R2 144A 5.845% (LIBOR03M + 1.05%, Floor 1.05%) 4/18/31 #, • | 1,500,000 | 1,477,804 | ||||||
| Atrium XII | ||||||||
| Series 12A AR 144A 5.645% (LIBOR03M + 0.83%) 4/22/27 #, • | 1,473,316 | 1,459,842 | ||||||
| Aurium CLO IV DAC | ||||||||
| Series 4A AR 144A 3.018% (EUR003M + 0.73%, Floor 0.73%) 1/16/31 #, • | EUR | 2,997,215 | 3,168,909 | |||||
| Bain Capital Euro CLO DAC | ||||||||
| Series 2018-2A AR 144A 3.082% (EUR003M + 0.74%, Floor 0.74%) 1/20/32 #, • | EUR | 1,300,000 | 1,377,756 | |||||
| Benefit Street Partners CLO XII | ||||||||
| Series 2017-12A A1R 144A 5.742% (LIBOR03M + 0.95%, Floor 0.95%) 10/15/30 #, • | 494,228 | 488,522 | ||||||
| Benefit Street Partners CLO XVII | ||||||||
| Series 2019-17A AR 144A 5.872% (LIBOR03M + 1.08%, Floor 1.08%) 7/15/32 #, • | 700,000 | 689,209 | ||||||
| Black Diamond CLO DAC | ||||||||
| Series 2019-1A A1R 144A 3.634% (EUR003M + 0.98%, Floor 0.98%) 5/15/32 #, • | EUR | 300,000 | 318,275 | |||||
47
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Collateralized Debt Obligations (continued) | ||||||||
| Blackrock European CLO VII DAC | ||||||||
| Series 7A AR 144A 2.908% (EUR003M + 0.62%, Floor 0.62%) 10/15/31 #, • | EUR | 2,200,000 | $ | 2,312,336 | ||||
| BlueMountain Fuji EUR CLO III DAC | ||||||||
| Series 3A A1R 144A 3.008% (EUR003M + 0.72%, Floor 0.72%) 1/15/31 #, • | EUR | 1,398,714 | 1,467,473 | |||||
| BNPP AM Euro CLO DAC | ||||||||
| Series 2018-1A AR 144A 2.888% (EUR003M + 0.60%, Floor 0.60%) 4/15/31 #, • | EUR | 250,000 | 264,696 | |||||
| Series 2019-1A AR 144A 3.213% (EUR003M + 0.82%, Floor 0.82%) 7/22/32 #, • | EUR | 1,000,000 | 1,054,352 | |||||
| Cairn CLO IV DAC | ||||||||
| Series 2014-4A ARRR 144A 3.068% (EUR003M + 0.60%, Floor 0.60%) 4/30/31 #, • | EUR | 1,577,970 | 1,664,294 | |||||
| Cairn CLO X DAC | ||||||||
| Series 2018-10A AR 144A 3.068% (EUR003M + 0.78%, Floor 0.78%) 10/15/31 #, • | EUR | 1,400,000 | 1,473,920 | |||||
| Carlyle Euro CLO DAC | ||||||||
| Series 2017-3A A1R 144A 2.988% (EUR003M + 0.70%, Floor 0.70%) 1/15/31 #, • | EUR | 1,898,243 | 1,988,796 | |||||
| Series 2019-2A A1R 144A 3.544% (EUR003M + 0.89%, Floor 0.89%) 8/15/32 #, • | EUR | 600,000 | 630,568 | |||||
| Carlyle Global Market Strategies CLO | ||||||||
| Series 2013-1A A1RR 144A 5.819% (LIBOR03M + 0.95%, Floor 0.95%) 8/14/30 #, • | 2,400,654 | 2,368,799 | ||||||
| Carlyle Global Market Strategies Euro CLO | ||||||||
| Series 2014-2A AR1 144A 3.404% (EUR003M + 0.75%, Floor 0.75%) 11/15/31 #, • | EUR | 1,500,000 | 1,588,835 | |||||
| CARLYLE US CLO | ||||||||
| Series 2017-1A A1R 144A 5.808% (LIBOR03M + 1.00%, Floor 1.00%) 4/20/31 #, • | 1,500,000 | 1,472,132 | ||||||
| CVC Cordatus Loan Fund VII DAC | ||||||||
| Series 7A ARR 144A 3.587% (EUR003M + 0.63%, Floor 0.63%) 9/15/31 #, • | EUR | 1,200,000 | 1,264,801 | |||||
| Dryden 27 R Euro CLO DAC | ||||||||
| Series 2017-27A AR 144A 2.948% (EUR003M + 0.66%, Floor 0.66%) 4/15/33 #, • | EUR | 2,200,000 | 2,318,448 | |||||
| Dryden 36 Senior Loan Fund | ||||||||
| Series 2014-36A AR3 144A 5.812% (LIBOR03M + 1.02%, Floor 1.02%) 4/15/29 #, • | 3,063,822 | 3,041,891 | ||||||
| Dryden 52 Euro CLO DAC | ||||||||
| Series 2017-52A AR 144A 3.514% (EUR003M + 0.86%, Floor 0.86%) 5/15/34 #, • | EUR | 2,200,000 | 2,321,595 | |||||
| Euro-Galaxy III CLO DAC | ||||||||
| Series 2013-3A ARRR 144A 3.037% (EUR003M + 0.62%, Floor 0.62%) 4/24/34 #, • | EUR | 4,000,000 | 4,181,307 | |||||
| FS Rialto | ||||||||
| Series 2022-FL4 A 144A 6.459% (SOFR + 1.90%, Floor 1.90%) 1/19/39 #, • | 3,500,000 | 3,459,704 | ||||||
48
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Collateralized Debt Obligations (continued) | ||||||||
| Galaxy XXI CLO | ||||||||
| Series 2015-21A AR 144A 5.828% (LIBOR03M + 1.02%) 4/20/31 #, • | 1,650,000 | $ | 1,620,209 | |||||
| GoldenTree Loan Management EUR CLO DAC | ||||||||
| Series 3A AR 144A 3.242% (EUR003M + 0.90%, Floor 0.90%) 1/20/32 #, • | EUR | 300,000 | 316,483 | |||||
| Goldentree Loan Management US CLO 2 | ||||||||
| Series 2017-2A AR 144A 5.718% (LIBOR03M + 0.91%, Floor 0.91%) 11/20/30 #, • | 3,300,000 | 3,265,637 | ||||||
| Harvest CLO XI DAC | ||||||||
| Series 11A ARR 144A 3.64% (EUR003M + 0.65%, Floor 0.65%) 6/26/30 #, • | EUR | 1,616,163 | 1,702,800 | |||||
| Harvest CLO XVI DAC | ||||||||
| Series 16A ARR 144A 2.928% (EUR003M + 0.64%, Floor 0.64%) 10/15/31 #, • | EUR | 2,000,000 | 2,107,611 | |||||
| Harvest CLO XXI DAC | ||||||||
| Series 21A A2R 144A 1.04% 7/15/31 # | EUR | 250,000 | 246,239 | |||||
| HGI CRE CLO | ||||||||
| Series 2022-FL3 A 144A 6.258% (SOFR + 1.70%, Floor 1.70%) 4/20/37 #, • | 3,000,000 | 2,960,844 | ||||||
| Invesco Euro CLO I DAC | ||||||||
| Series 1A A1R 144A 2.938% (EUR003M + 0.65%, Floor 0.65%) 7/15/31 #, • | EUR | 250,000 | 262,952 | |||||
| Jubilee CLO DAC | ||||||||
| Series 2014-11A ARR 144A 2.898% (EUR003M + 0.61%, Floor 0.61%) 4/15/30 #, • | EUR | 1,700,000 | 1,796,781 | |||||
| Series 2014-12A ARRR 144A 2.888% (EUR003M + 0.60%, Floor 0.60%) 4/15/30 #, • | EUR | 600,000 | 636,005 | |||||
| Series 2016-17A A1RR 144A 2.938% (EUR003M + 0.65%, Floor 0.65%) 4/15/31 #, • | EUR | 1,400,000 | 1,466,854 | |||||
| Series 2016-17A A2RR 144A 2.938% (EUR003M + 0.65%, Floor 0.65%) 4/15/31 #, • | EUR | 500,000 | 528,737 | |||||
| KKR CLO 18 | ||||||||
| Series 18 AR 144A 5.735% (LIBOR03M + 0.94%, Floor 0.94%) 7/18/30 #, • | 447,690 | 441,751 | ||||||
| Laurelin DAC | ||||||||
| Series 2016-1A ARR 144A 3.062% (EUR003M + 0.72%, Floor 0.72%) 10/20/31 #, • | EUR | 2,100,000 | 2,222,493 | |||||
| LCM XIII | ||||||||
| Series 13A AR3 144A 5.668% (LIBOR03M + 0.87%, Floor 0.87%) 7/19/27 #, • | 2,723,019 | 2,693,120 | ||||||
| LCM XV | ||||||||
| Series 15A AR2 144A 5.808% (LIBOR03M + 1.00%, Floor 1.00%) 7/20/30 #, • | 3,035,607 | 2,998,864 | ||||||
| Man GLG Euro CLO III DAC | ||||||||
| Series 3A AR 144A 2.968% (EUR003M + 0.68%, Floor 0.68%) 10/15/30 #, • | EUR | 930,463 | 983,298 | |||||
| Man GLG Euro CLO V DAC | ||||||||
| Series 5A A1R 144A 3.647% (EUR003M + 0.69%, Floor 0.69%) 12/15/31 #, • | EUR | 1,898,932 | 2,011,221 | |||||
| Man GLG US CLO | ||||||||
| Series 2018-1A A1R 144A 5.948% (LIBOR03M + 1.14%) 4/22/30 #, • | 3,000,000 | 2,939,934 | ||||||
49
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Collateralized Debt Obligations (continued) | ||||||||
| Marathon CLO | ||||||||
| Series 2021-16A A1A 144A 5.992% (LIBOR03M + 1.20%, Floor 1.20%) 4/15/34 #, • | 1,250,000 | $ | 1,219,660 | |||||
| Mountain View CLO X | ||||||||
| Series 2015-10A AR 144A 5.635% (LIBOR03M + 0.82%, Floor 0.82%) 10/13/27 #, • | 360,348 | 359,776 | ||||||
| Oak Hill European Credit Partners IV DAC | ||||||||
| Series 2015-4A A1RE 144A 3.072% (EUR003M + 0.73%, Floor 0.73%) 1/20/32 #, • | EUR | 279,005 | 294,470 | |||||
| Oaktree CLO | ||||||||
| Series 2019-4A A1R 144A 5.928% (LIBOR03M + 1.12%, Floor 1.12%) 10/20/32 #, • | 500,000 | 489,102 | ||||||
| OCP Euro CLO DAC | ||||||||
| Series 2020-4A AR 144A 3.273% (EUR003M + 0.88%, Floor 0.88%) 9/22/34 #, • | EUR | 1,900,000 | 1,994,792 | |||||
| OZLM IX | ||||||||
| Series 2014-9A A1A3 144A 5.908% (LIBOR03M + 1.10%, Floor 1.10%) 10/20/31 #, • | 500,000 | 492,330 | ||||||
| OZLM XVI | ||||||||
| Series 2017-16A A1R 144A 5.902% (LIBOR03M + 1.03%, Floor 1.03%) 5/16/30 #, • | 2,262,878 | 2,238,231 | ||||||
| OZLM XXIV | ||||||||
| Series 2019-24A A1AR 144A 5.968% (LIBOR03M + 1.16%, Floor 1.16%) 7/20/32 #, • | 2,100,000 | 2,058,903 | ||||||
| Palmer Square European Loan Funding DAC | ||||||||
| Series 2021-1A A 144A 3.068% (EUR003M + 0.78%, Floor 0.78%) 4/15/31 #, • | EUR | 1,751,603 | 1,852,720 | |||||
| Palmer Square Loan Funding | ||||||||
| Series 2021-3A A1 144A 5.608% (LIBOR03M + 0.80%, Floor 0.80%) 7/20/29 #, • | 500,690 | 493,878 | ||||||
| Series 2021-4A A1 144A 5.592% (LIBOR03M + 0.80%, Floor 0.80%) 10/15/29 #, • | 2,019,065 | 1,994,616 | ||||||
| Sculptor European CLO V DAC | ||||||||
| Series 5A AR 144A 3.078% (EUR003M + 0.79%, Floor 0.79%) 1/14/32 #, • | EUR | 3,300,000 | 3,483,563 | |||||
| Segovia European CLO DAC | ||||||||
| Series 2019-6A AR 144A 3.222% (EUR003M + 0.88%, Floor 0.88%) 7/20/32 #, • | EUR | 1,600,000 | 1,682,164 | |||||
| Signal Peak CLO 5 | ||||||||
| Series 2018-5A A 144A 5.928% (LIBOR03M + 1.11%, Floor 1.11%) 4/25/31 #, • | 1,800,000 | 1,778,279 | ||||||
| Sound Point CLO IX | ||||||||
| Series 2015-2A ARRR 144A 6.018% (LIBOR03M + 1.21%, Floor 1.21%) 7/20/32 #, • | 2,600,000 | 2,545,499 | ||||||
50
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Collateralized Debt Obligations (continued) | ||||||||
| Sound Point CLO XIV | ||||||||
| Series 2016-3A AR2 144A 5.805% (LIBOR03M + 0.99%, Floor 0.99%) 1/23/29 #, • | 1,982,790 | $ | 1,976,830 | |||||
| Sound Point CLO XVI | ||||||||
| Series 2017-2A AR 144A 5.798% (LIBOR03M + 0.98%) 7/25/30 #, • | 4,133,655 | 4,082,571 | ||||||
| Stratus CLO | ||||||||
| Series 2021-3A A 144A 5.758% (LIBOR03M + 0.95%, Floor 0.95%) 12/29/29 #, • | 1,720,326 | 1,702,631 | ||||||
| Symphony Static CLO I | ||||||||
| Series 2021-1A A 144A 5.648% (LIBOR03M + 0.83%, Floor 0.83%) 10/25/29 #, • | 429,675 | 423,619 | ||||||
| TCI-Symphony CLO | ||||||||
| Series 2017-1A AR 144A 5.722% (LIBOR03M + 0.93%, Floor 0.93%) 7/15/30 #, • | 970,668 | 955,195 | ||||||
| THL Credit Wind River CLO | ||||||||
| Series 2019-3A AR 144A 5.872% (LIBOR03M + 1.08%, Floor 1.08%) 4/15/31 #, • | 3,100,000 | 3,044,386 | ||||||
| Tikehau CLO DAC | ||||||||
| Series 2015-1A ARR 144A 3.41% (EUR003M + 0.87%, Floor 0.87%) 8/4/34 #, • | EUR | 2,000,000 | 2,097,961 | |||||
| Toro European CLO 6 DAC | ||||||||
| Series 6A AR 144A 3.204% (EUR003M + 0.92%, Floor 0.92%) 1/12/32 #, • | EUR | 300,000 | 315,478 | |||||
| Toro European CLO 7 DAC | ||||||||
| Series 7A ARE 144A 3.464% (EUR003M + 0.81%, Floor 0.81%) 2/15/34 #, • | EUR | 1,900,000 | 2,026,227 | |||||
| Venture 32 CLO | ||||||||
| Series 2018-32A A1 144A 5.895% (LIBOR03M + 1.10%, Floor 1.10%) 7/18/31 #, • | 500,000 | 488,302 | ||||||
| Venture 34 CLO | ||||||||
| Series 2018-34A A 144A 6.022% (LIBOR03M + 1.23%, Floor 1.23%) 10/15/31 #, • | 2,500,000 | 2,463,847 | ||||||
| Venture 38 CLO | ||||||||
| Series 2019-38A A1R 144A 5.962% (LIBOR03M + 1.16%, Floor 1.16%) 7/30/32 #, • | 2,900,000 | 2,829,547 | ||||||
| Venture 42 CLO | ||||||||
| Series 2021-42A A1A 144A 5.922% (LIBOR03M + 1.13%, Floor 1.13%) 4/15/34 #, • | 1,300,000 | 1,261,837 | ||||||
| Venture XVII CLO | ||||||||
| Series 2014-17A ARR 144A 5.672% (LIBOR03M + 0.88%) 4/15/27 #, • | 231,078 | 229,373 | ||||||
| Venture XXIV CLO | ||||||||
| Series 2016-24A ARR 144A 5.708% (LIBOR03M + 0.90%, Floor 0.90%) 10/20/28 #, • | 371,839 | 368,065 | ||||||
| Venture XXVI CLO | ||||||||
| Series 2017-26A AR 144A 5.908% (LIBOR03M + 1.10%, Floor 1.10%) 1/20/29 #, • | 3,209,858 | 3,168,011 | ||||||
| Vibrant CLO IV | ||||||||
| Series 2016-4A A1RR 144A 5.928% (LIBOR03M + 1.12%, Floor 1.12%) 7/20/32 #, • | 1,300,000 | 1,278,970 | ||||||
| Vibrant CLO VI | ||||||||
| Series 2017-6A AR 144A 5.913% (LIBOR03M + 0.95%) 6/20/29 #, • | 1,531,266 | 1,513,918 | ||||||
51
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Collateralized Debt Obligations (continued) | ||||||||
| Vibrant CLO VII | ||||||||
| Series 2017-7A A1R 144A 5.848% (LIBOR03M + 1.04%, Floor 1.04%) 9/15/30 #, • | 4,168,563 | $ | 4,119,424 | |||||
| Vibrant CLO XI | ||||||||
| Series 2019-11A A1R1 144A 5.928% (LIBOR03M + 1.12%, Floor 1.12%) 7/20/32 #, • | 1,500,000 | 1,478,109 | ||||||
| Voya | ||||||||
| Series 2012-4A A1R3 144A 5.792% (LIBOR03M + 1.00%) 10/15/30 #, • | 1,360,025 | 1,343,143 | ||||||
| Voya CLO | ||||||||
| Series 2014-4A A1RA 144A 5.892% (LIBOR03M + 1.10%) 7/14/31 #, • | 842,321 | 830,784 | ||||||
| Total Collateralized Debt Obligations (cost $165,392,838) |
155,308,461 | |||||||
| Convertible Bonds — 0.16% | ||||||||
| Kaman 3.25% exercise price $65.26, maturity date 5/1/24 | 2,540,000 | 2,407,920 | ||||||
| Spirit Airlines 1.00% exercise price $42.88, maturity date 5/15/26 | 1,906,000 | 1,544,813 | ||||||
| Total Convertible Bonds (cost $4,280,584) |
3,952,733 | |||||||
| Corporate Bonds — 31.48% | ||||||||
| Banking — 8.80% | ||||||||
| Access Bank 144A 6.125% 9/21/26 # | 500,000 | 401,200 | ||||||
| Akbank TAS 144A 6.80% 2/6/26 # | 370,000 | 358,863 | ||||||
| Banco Bilbao Vizcaya Argentaria 5.875% 9/24/23 μ, y | EUR | 800,000 | 831,180 | |||||
| Banco Continental 144A 2.75% 12/10/25 # | 600,000 | 533,178 | ||||||
| Banco de Credito e Inversiones 144A 3.50% 10/12/27 # | 435,000 | 396,611 | ||||||
| Banco GNB Sudameris 144A 7.50% 4/16/31 #, μ | 570,000 | 426,810 | ||||||
| Banco Industrial 144A 4.875% 1/29/31 #, μ | 320,000 | 295,869 | ||||||
| Banco Mercantil del Norte 144A 8.375% 10/14/30 #, μ, y | 275,000 | 255,544 | ||||||
| Banco Nacional de Panama 144A 2.50% 8/11/30 # | 200,000 | 155,346 | ||||||
| Banco Santander | ||||||||
| 2.958% 3/25/31 | 1,000,000 | 823,561 | ||||||
| 3.496% 3/24/25 | 1,000,000 | 962,673 | ||||||
| 3.892% 5/24/24 | 1,400,000 | 1,369,646 | ||||||
| 4.175% 3/24/28 μ | 1,200,000 | 1,127,644 | ||||||
| Bancolombia 6.909% 10/18/27 μ | 315,000 | 288,461 | ||||||
| Bangkok Bank 144A 5.00% 9/23/25 #, μ, y | 280,000 | 255,155 | ||||||
| Bank Hapoalim 144A 3.255% 1/21/32 #, μ | 395,000 | 330,023 | ||||||
| Bank Leumi Le-Israel | ||||||||
| 144A 5.125% 7/27/27 # | 335,000 | 328,317 | ||||||
| 144A 7.129% 7/18/33 #, μ | 465,000 | 452,445 | ||||||
| Bank of America | ||||||||
| 2.482% 9/21/36 μ | 5,625,000 | 4,275,777 | ||||||
| 3.384% 4/2/26 μ | 500,000 | 479,738 | ||||||
| 3.864% 7/23/24 μ | 2,200,000 | 2,187,828 | ||||||
| 3.974% 2/7/30 μ | 3,400,000 | 3,181,073 | ||||||
| 4.125% 1/22/24 | 200,000 | 198,474 | ||||||
| 4.30% 1/28/25 μ, y | 900,000 | 808,851 | ||||||
| 6.204% 11/10/28 μ | 3,000,000 | 3,138,834 | ||||||
| Bank of New York Mellon | ||||||||
| 4.70% 9/20/25 μ, y | 2,560,000 | 2,428,849 | ||||||
| 5.802% 10/25/28 μ | 581,000 | 605,805 | ||||||
| Barclays | ||||||||
| 3.33% 11/24/42 μ | 1,300,000 | 935,836 | ||||||
| 3.375% 4/2/25 μ | EUR | 500,000 | 537,785 | |||||
| 4.972% 5/16/29 μ | 3,000,000 | 2,895,902 | ||||||
| 5.501% 8/9/28 μ | 1,600,000 | 1,579,081 | ||||||
| 6.252% (LIBOR03M + 1.38%) 5/16/24 • | 1,800,000 | 1,793,885 | ||||||
| 6.375% 12/15/25 μ, y | GBP | 500,000 | 544,326 | |||||
| 7.125% 6/15/25 μ, y | GBP | 1,800,000 | 1,947,317 | |||||
| 7.385% 11/2/28 μ | 764,000 | 810,484 | ||||||
| 7.75% 9/15/23 μ, y | 400,000 | 367,914 | ||||||
| BBVA Bancomer 144A | ||||||||
| 5.875% 9/13/34 #, μ | 400,000 | 349,680 | ||||||
52
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Banking (continued) | ||||||||
| BNP Paribas | ||||||||
| 144A 1.904% 9/30/28 #, μ | 1,800,000 | $ | 1,532,219 | |||||
| 144A 2.159% 9/15/29 #, μ | 600,000 | 500,612 | ||||||
| 144A 2.871% 4/19/32 #, μ | 300,000 | 250,071 | ||||||
| 144A 3.052% 1/13/31 #, μ | 2,600,000 | 2,231,421 | ||||||
| 144A 7.375% 8/19/25 #, μ, y | 700,000 | 666,113 | ||||||
| 7.375% 8/19/25 μ, y | 500,000 | 475,795 | ||||||
| BPCE 144A 5.125% 1/18/28 # | 1,170,000 | 1,160,246 | ||||||
| CIMB Bank 144A 2.125% 7/20/27 # | 550,000 | 500,063 | ||||||
| Citigroup | ||||||||
| 3.20% 10/21/26 | 1,000,000 | 944,310 | ||||||
| 4.044% 6/1/24 μ | 1,800,000 | 1,794,031 | ||||||
| 4.075% 4/23/29 μ | 2,400,000 | 2,290,318 | ||||||
| 5.61% 9/29/26 μ | 3,070,000 | 3,094,971 | ||||||
| Citizens Bank 6.064% 10/24/25 μ | 2,130,000 | 2,005,734 | ||||||
| Cooperatieve Rabobank | ||||||||
| 3.75% 7/21/26 | 1,350,000 | 1,278,589 | ||||||
| 4.375% 8/4/25 | 2,000,000 | 1,936,202 | ||||||
| Credit Agricole 144A 5.301% 7/12/28 # | 940,000 | 953,675 | ||||||
| Credit Suisse 7.95% 1/9/25 | 655,000 | 666,633 | ||||||
| Credit Suisse Group 3.80% 6/9/23 | 2,300,000 | 2,256,869 | ||||||
| 144A 4.194% 4/1/31 #, μ | 2,500,000 | 2,225,750 | ||||||
| 144A 6.25% 12/18/24 #, μ, =, y | 2,000,000 | 0 | ||||||
| 144A 6.375% 8/21/26 #, μ, =, y | 1,900,000 | 0 | ||||||
| 144A 6.442% 8/11/28 #, μ | 1,750,000 | 1,740,025 | ||||||
| 7.50% 12/11/23 μ, =, y | 400,000 | 0 | ||||||
| Deutsche Bank | ||||||||
| 2.129% 11/24/26 μ | 700,000 | 603,834 | ||||||
| 3.547% 9/18/31 μ | 1,500,000 | 1,231,312 | ||||||
| 3.729% 1/14/32 μ | 2,331,000 | 1,740,383 | ||||||
| 3.742% 1/7/33 μ | 789,000 | 571,540 | ||||||
| 3.961% 11/26/25 μ | 5,700,000 | 5,396,629 | ||||||
| 6.119% 7/14/26 μ | 3,000,000 | 2,907,172 | ||||||
| 6.72% 1/18/29 μ | 1,053,000 | 1,046,489 | ||||||
| Emirates NBD Bank PJSC | ||||||||
| 2.625% 2/18/25 | 295,000 | 280,848 | ||||||
| 6.125% 4/9/26 μ, y | 305,000 | 298,113 | ||||||
| Fifth Third Bancorp | ||||||||
| 2.55% 5/5/27 | 1,000 | 863 | ||||||
| 3.95% 3/14/28 | 4,000 | 3,614 | ||||||
| 6.361% 10/27/28 μ | 394,000 | 396,967 | ||||||
| Fifth Third Bank 5.852% 10/27/25 μ | 1,575,000 | 1,553,540 | ||||||
| First Abu Dhabi Bank 4.50% 4/5/26 μ, y | 325,000 | 306,257 | ||||||
| Goldman Sachs Group | ||||||||
| 1.431% 3/9/27 μ | 2,000,000 | 1,791,506 | ||||||
| 1.542% 9/10/27 μ | 3,993,000 | 3,515,979 | ||||||
| 3.615% 3/15/28 μ | 2,000,000 | 1,894,026 | ||||||
| 4.223% 5/1/29 μ | 4,700,000 | 4,507,123 | ||||||
| Hana Bank 144A 1.25% 12/16/26 # | 345,000 | 301,704 | ||||||
| HSBC Holdings | ||||||||
| 1.589% 5/24/27 μ | 2,200,000 | 1,941,278 | ||||||
| 2.848% 6/4/31 μ | 2,700,000 | 2,269,840 | ||||||
| 2.871% 11/22/32 μ | 2,000,000 | 1,623,432 | ||||||
| 4.70% 3/9/31 ∞, μ, y | 500,000 | 373,019 | ||||||
| 5.21% 8/11/28 μ | 500,000 | 495,327 | ||||||
| 5.875% 9/28/26 μ, y | GBP | 500,000 | 541,187 | |||||
| 6.254% 3/9/34 μ | 1,100,000 | 1,150,942 | ||||||
| Huntington National Bank | ||||||||
| 4.552% 5/17/28 μ | 395,000 | 372,755 | ||||||
| 5.65% 1/10/30 | 855,000 | 819,991 | ||||||
| ICICI Bank 144A 4.00% 3/18/26 # | 335,000 | 323,727 | ||||||
| Intesa Sanpaolo | ||||||||
| 144A 4.00% 9/23/29 # | 1,300,000 | 1,132,223 | ||||||
| 7.75% 1/11/27 μ, y | EUR | 200,000 | 209,425 | |||||
| Itau Unibanco Holding 144A 3.875% 4/15/31 #, μ | 400,000 | 355,817 | ||||||
| JPMorgan Chase & Co. | ||||||||
| 1.764% 11/19/31 μ | 2,335,000 | 1,854,763 | ||||||
| 1.953% 2/4/32 μ | 1,170,000 | 942,009 | ||||||
| 2.595% 2/24/26 μ | 1,500,000 | 1,422,492 | ||||||
| 2.947% 2/24/28 μ | 1,100,000 | 1,020,588 | ||||||
| 2.963% 1/25/33 μ | 500,000 | 427,937 | ||||||
| 3.109% 4/22/51 μ | 455,000 | 323,047 | ||||||
| 3.22% 3/1/25 μ | 500,000 | 489,495 | ||||||
| 4.005% 4/23/29 μ | 900,000 | 860,880 | ||||||
| 5.00% 8/1/24 μ, y | 400,000 | 384,290 | ||||||
53
Schedules of investments
Optimum Fixed Income Fund
| Principal
amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Banking (continued) | ||||||||
| KeyBank | ||||||||
| 5.00% 1/26/33 | 640,000 | $ | 595,196 | |||||
| 5.85% 11/15/27 | 995,000 | 979,245 | ||||||
| Lloyds Banking Group | ||||||||
| 2.438% 2/5/26 µ | 300,000 | 281,520 | ||||||
| 3.50% 4/1/26 µ | EUR | 200,000 | 214,443 | |||||
| 3.75% 3/18/28 µ | 1,400,000 | 1,302,001 | ||||||
| Mitsubishi UFJ Financial Group | ||||||||
| 2.193% 2/25/25 | 1,700,000 | 1,602,730 | ||||||
| 2.559% 2/25/30 | 1,800,000 | 1,534,065 | ||||||
| Mizuho Financial Group | ||||||||
| 2.226% 5/25/26 µ | 1,600,000 | 1,493,236 | ||||||
| 2.564% 9/13/31 | 1,400,000 | 1,103,650 | ||||||
| 2.591% 5/25/31 µ | 2,000,000 | 1,667,887 | ||||||
| 3.261% 5/22/30 µ | 3,100,000 | 2,749,512 | ||||||
| Morgan Stanley | ||||||||
| 0.495% 10/26/29 µ | EUR | 2,000,000 | 1,782,417 | |||||
| 1.928% 4/28/32 µ | 1,415,000 | 1,114,088 | ||||||
| 2.484% 9/16/36 µ | 4,730,000 | 3,596,447 | ||||||
| 3.625% 1/20/27 | 4,000,000 | 3,853,646 | ||||||
| 6.138% 10/16/26 µ | 865,000 | 882,098 | ||||||
| 6.296% 10/18/28 µ | 1,717,000 | 1,806,990 | ||||||
| 6.342% 10/18/33 µ | 715,000 | 781,543 | ||||||
| Nationwide Building Society | ||||||||
| 144A 2.972% 2/16/28 #, µ | 800,000 | 721,481 | ||||||
| 144A 4.302% 3/8/29 #, µ | 5,200,000 | 4,802,487 | ||||||
| NatWest Group | ||||||||
| 4.80% 4/5/26 | 5,000,000 | 4,852,306 | ||||||
| 5.125% 5/12/27 µ, ψ | GBP | 500,000 | 498,467 | |||||
| NBK SPC 144A 1.625% 9/15/27 #, µ | 710,000 | 632,141 | ||||||
| Nykredit Realkredit 2.00% 10/1/53 | DKK | 1 | 0 | |||||
| PNC Bank 4.05% 7/26/28 | 2,400,000 | 2,276,466 | ||||||
| PNC Financial Services Group 5.671% 10/28/25 µ | 1,250,000 | 1,251,552 | ||||||
| Popular 7.25% 3/13/28 | 855,000 | 846,655 | ||||||
| QNB Finance 2.625% 5/12/25 | 455,000 | 433,337 | ||||||
| Santander UK Group Holdings 3.823% 11/3/28 µ | 3,200,000 | 2,935,318 | ||||||
| Shinhan Bank 3.875% 3/24/26 | 345,000 | 328,519 | ||||||
| Shinhan Financial Group 144A 3.34% 2/5/30 #, µ | 210,000 | 201,439 | ||||||
| Societe Generale 144A 4.25% 4/14/25 # | 3,600,000 | 3,378,828 | ||||||
| 144A 4.677% 6/15/27 # | 3,500,000 | 3,422,096 | ||||||
| 7.875% 12/18/23 µ, ψ | 500,000 | 469,450 | ||||||
| Standard Chartered | ||||||||
| 144A 6.301% 1/9/29 #, µ | 385,000 | 393,813 | ||||||
| 7.75% 4/2/23 µ, ψ | 300,000 | 300,000 | ||||||
| State Street | ||||||||
| 2.203% 2/7/28 µ | 1,210,000 | 1,102,615 | ||||||
| 5.751% 11/4/26 µ | 280,000 | 285,574 | ||||||
| 5.82% 11/4/28 µ | 195,000 | 203,568 | ||||||
| Sumitomo Mitsui Financial Group | ||||||||
| 1.474% 7/8/25 | 2,600,000 | 2,382,481 | ||||||
| 2.222% 9/17/31 | 2,300,000 | 1,840,897 | ||||||
| SVB Financial Group | ||||||||
| 1.80% 2/2/31 ‡ | 775,000 | 442,448 | ||||||
| 4.00% 5/15/26 µ, ‡, ψ | 2,110,000 | 139,323 | ||||||
| 4.57% 4/29/33 µ, ‡ | 2,164,000 | 1,257,068 | ||||||
| Toronto-Dominion Bank 4.108% 6/8/27 | 2,710,000 | 2,626,403 | ||||||
| Truist Bank 2.636% 9/17/29 µ | 5,182,000 | 4,868,201 | ||||||
| Truist Financial | ||||||||
| 1.887% 6/7/29 µ | 3,485,000 | 2,912,817 | ||||||
| 4.95% 9/1/25 µ, ψ | 1,465,000 | 1,357,735 | ||||||
| 6.123% 10/28/33 µ | 755,000 | 792,823 | ||||||
| Turkiye Garanti Bankasi 144A 7.177% 5/24/27 #, µ | 305,000 | 287,841 | ||||||
| UBS 5.125% 5/15/24 | 200,000 | 194,835 | ||||||
| UBS Group | ||||||||
| 0.25% 11/5/28 µ | EUR | 1,000,000 | 887,164 | |||||
| 144A 3.126% 8/13/30 #, µ | 2,000,000 | 1,708,066 | ||||||
| UniCredit | ||||||||
| 7.50% 6/3/26 µ, ψ | EUR | 600,000 | 618,835 | |||||
| 144A 7.83% 12/4/23 # | 2,900,000 | 2,926,905 | ||||||
| US Bancorp | ||||||||
| 2.491% 11/3/36 µ | 3,400,000 | 2,626,904 | ||||||
54
| Principal amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Banking (continued) | ||||||||
| US Bancorp | ||||||||
| 3.60% 9/11/24 | 1,275,000 | $ | 1,234,064 | |||||
| 3.95% 11/17/25 | 2,820,000 | 2,717,628 | ||||||
| 4.653% 2/1/29 µ | 716,000 | 700,420 | ||||||
| 4.839% 2/1/34 µ | 800,000 | 776,724 | ||||||
| 5.727% 10/21/26 µ | 885,000 | 889,657 | ||||||
| US Bank 3.40% 7/24/23 | 815,000 | 809,889 | ||||||
| Virgin Money UK | ||||||||
| 3.375% 4/24/26 µ | GBP | 100,000 | 114,343 | |||||
| 4.00% 9/25/26 µ | GBP | 800,000 | 924,781 | |||||
| Wells Fargo & Co. | ||||||||
| 3.196% 6/17/27 µ | 900,000 | 846,969 | ||||||
| 3.584% 5/22/28 µ | 5,300,000 | 4,997,282 | ||||||
| 3.90% 3/15/26 µ, y | 1,000,000 | 883,335 | ||||||
| 214,288,639 | ||||||||
| Basic Industry — 1.14% | ||||||||
| AngloGold Ashanti Holdings 3.375% 11/1/28 | 305,000 | 271,466 | ||||||
| Antofagasta 144A 5.625% 5/13/32 # | 355,000 | 353,456 | ||||||
| Braskem Netherlands Finance 144A 7.25% 2/13/33 # | 430,000 | 413,552 | ||||||
| Celanese US Holdings | ||||||||
| 6.05% 3/15/25 | 590,000 | 593,797 | ||||||
| 6.165% 7/15/27 | 2,095,000 | 2,109,925 | ||||||
| Corp Nacional del Cobre de Chile | ||||||||
| 144A 3.70% 1/30/50 # | 225,000 | 170,242 | ||||||
| 144A 4.25% 7/17/42 # | 200,000 | 168,517 | ||||||
| CSN Resources | ||||||||
| 144A 5.875% 4/8/32 # | 385,000 | 315,333 | ||||||
| 144A 7.625% 4/17/26 # | 260,000 | 260,290 | ||||||
| First Quantum Minerals | ||||||||
| 144A 6.875% 10/15/27 # | 360,000 | 347,383 | ||||||
| 144A 7.50% 4/1/25 # | 210,000 | 210,038 | ||||||
| FMG Resources August | ||||||||
| 2006 144A 6.125% 4/15/32 # | 7,300,000 | 7,036,433 | ||||||
| Freeport Indonesia | ||||||||
| 144A 5.315% 4/14/32 # | 435,000 | 407,200 | ||||||
| 144A 6.20% 4/14/52 # | 200,000 | 183,498 | ||||||
| Georgia-Pacific 8.00% 1/15/24 | 2,242,000 | 2,291,310 | ||||||
| ICL Group 144A 6.375% 5/31/38 # | 210,000 | 208,880 | ||||||
| INEOS Styrolution Group 144A 2.25% 1/16/27 # | EUR | 500,000 | 472,029 | |||||
| MEGlobal Canada 144A 5.00% 5/18/25 # | 400,000 | 396,436 | ||||||
| Metinvest 144A 7.75% 10/17/29 # | 627,000 | 347,985 | ||||||
| Newmont | ||||||||
| 2.25% 10/1/30 | 1,875,000 | 1,576,018 | ||||||
| 2.60% 7/15/32 | 1,160,000 | 971,537 | ||||||
| 2.80% 10/1/29 | 3,850,000 | 3,407,444 | ||||||
| Novelis 144A 4.75% 1/30/30 # | 835,000 | 768,200 | ||||||
| Nutrien 4.90% 3/27/28 | 475,000 | 475,218 | ||||||
| OCP | ||||||||
| 144A 3.75% 6/23/31 # | 200,000 | 164,370 | ||||||
| 144A 5.125% 6/23/51 # | 240,000 | 175,460 | ||||||
| 144A 6.875% 4/25/44 # | 250,000 | 227,874 | ||||||
| Sasol Financing USA 6.50% 9/27/28 | 465,000 | 435,004 | ||||||
| Sherwin-Williams 3.30% 5/15/50 | 3,495,000 | 2,476,133 | ||||||
| Stillwater Mining 144A 4.50% 11/16/29 # | 385,000 | 317,700 | ||||||
| Vale Overseas 3.75% 7/8/30 | 305,000 | 273,590 | ||||||
| 27,826,318 | ||||||||
| Brokerage — 0.20% | ||||||||
| Charles Schwab 5.375% 6/1/25 µ, y | 1,405,000 | 1,338,263 | ||||||
| Jefferies Group | ||||||||
| 2.625% 10/15/31 | 2,925,000 | 2,238,088 | ||||||
| 6.45% 6/8/27 | 331,000 | 341,926 | ||||||
| 6.50% 1/20/43 | 880,000 | 904,284 | ||||||
| 4,822,561 | ||||||||
| Capital Goods — 0.98% | ||||||||
| Abertis Infraestructuras Finance 3.248% 11/24/25 µ, y | EUR | 1,500,000 | 1,453,826 | |||||
| Aeropuerto Internacional de Tocumen 144A 5.125% 8/11/61 # | 200,000 | 155,751 | ||||||
55
Schedules of investments
Optimum Fixed Income Fund
| Principal
amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Capital Goods (continued) | ||||||||
| Aeropuertos Argentina 2000 144A 8.50% 8/1/31 # | 455,724 | $ | 408,340 | |||||
| Ardagh Metal Packaging Finance USA 144A 3.25% 9/1/28 # | 4,600,000 | 3,964,060 | ||||||
| Boeing | ||||||||
| 1.95% 2/1/24 | 2,000,000 | 1,942,165 | ||||||
| 3.25% 2/1/28 | 1,545,000 | 1,440,385 | ||||||
| 3.75% 2/1/50 | 5,355,000 | 4,063,153 | ||||||
| Caterpillar 2.60% 4/9/30 | 25,000 | 22,429 | ||||||
| Cellnex Finance 144A 3.875% 7/7/41 # | 3,159,000 | 2,326,130 | ||||||
| GCC 144A 3.614% 4/20/32 # | 390,000 | 327,585 | ||||||
| Hutama Karya Persero | ||||||||
| 144A 3.75% | ||||||||
| 5/11/30 # | 454,000 | 413,262 | ||||||
| IHS Holding 144A 5.625% 11/29/26 # | 440,000 | 371,712 | ||||||
| Rolls-Royce 144A 5.75% 10/15/27 # | 1,000,000 | 997,115 | ||||||
| Rutas 2 and 7 Finance 144A 2.741% 9/30/36 #, ^ | 476,000 | 301,249 | ||||||
| SAN Miguel Industrias 144A 3.50% 8/2/28 # | 505,000 | 425,822 | ||||||
| Standard Industries 144A 3.375% 1/15/31 # | 1,568,000 | 1,261,957 | ||||||
| State Agency of Roads of Ukraine 144A 6.25% 6/24/30 # | 575,000 | 101,895 | ||||||
| Summit Digitel Infrastructure 144A 2.875% 8/12/31 # | 535,000 | 418,155 | ||||||
| Teledyne Technologies | ||||||||
| 2.25% 4/1/28 | 1,980,000 | 1,770,679 | ||||||
| 2.75% 4/1/31 | 1,730,000 | 1,476,544 | ||||||
| UltraTech Cement 144A 2.80% 2/16/31 # | 420,000 | 337,317 | ||||||
| 23,979,531 | ||||||||
| Communications — 3.03% | ||||||||
| Alibaba Group Holding 2.70% 2/9/41 | 465,000 | 312,736 | ||||||
| Altice Financing 144A 5.00% 1/15/28 # | 345,000 | 280,865 | ||||||
| Altice France | ||||||||
| 2.125% 2/15/25 | EUR | 1,900,000 | 1,908,687 | |||||
| 144A 5.50% 10/15/29 # | 1,375,000 | 1,052,639 | ||||||
| Amazon.com | ||||||||
| 1.50% 6/3/30 | 1,000,000 | 831,789 | ||||||
| 2.50% 6/3/50 | 1,460,000 | 990,833 | ||||||
| America Movil 4.70% 7/21/32 | 420,000 | 413,948 | ||||||
| AT&T | ||||||||
| 2.55% 12/1/33 | 2,673,000 | 2,151,527 | ||||||
| 3.50% 6/1/41 | 1,680,000 | 1,327,299 | ||||||
| 3.50% 9/15/53 | 8,265,000 | 6,011,122 | ||||||
| Axian Telecom 144A 7.375% 2/16/27 # | 380,000 | 346,446 | ||||||
| CCO Holdings | ||||||||
| 144A 4.25% 1/15/34 # | 5,700,000 | 4,464,154 | ||||||
| 144A 4.50% 8/15/30 # | 500,000 | 423,067 | ||||||
| 144A 5.00% 2/1/28 # | 900,000 | 831,343 | ||||||
| Charter Communications Operating | ||||||||
| 3.85% 4/1/61 | 1,540,000 | 962,127 | ||||||
| 4.40% 12/1/61 | 4,252,000 | 2,909,826 | ||||||
| 4.908% 7/23/25 | 430,000 | 425,882 | ||||||
| 5.05% 3/30/29 | 3,800,000 | 3,668,719 | ||||||
| Comcast | ||||||||
| 2.80% 1/15/51 | 475,000 | 321,309 | ||||||
| 3.20% 7/15/36 | 1,195,000 | 1,007,770 | ||||||
| Connect Finco 144A 6.75% 10/1/26 # | 1,740,000 | 1,637,166 | ||||||
| CSC Holdings 144A 4.625% 12/1/30 # | 890,000 | 439,704 | ||||||
| CT Trust 144A 5.125% 2/3/32 # | 485,000 | 406,188 | ||||||
| Directv Financing 144A 5.875% 8/15/27 # | 2,135,000 | 1,935,719 | ||||||
| Discovery Communications 4.00% 9/15/55 | 9,190,000 | 6,106,952 | ||||||
| Frontier Communications Holdings | ||||||||
| 144A 5.00% 5/1/28 # | 2,170,000 | 1,885,470 | ||||||
| 144A 5.875% 10/15/27 # | 1,165,000 | 1,060,150 | ||||||
| Liberty Costa Rica Senior Secured Finance 144A 10.875% 1/15/31 # | 725,000 | 682,398 | ||||||
| Sprint 7.625% 3/1/26 | 200,000 | 211,676 | ||||||
| Sprint Spectrum 144A 4.738% 9/20/29 # | 732,500 | 727,215 | ||||||
56
| Principal
amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Communications (continued) | ||||||||
| Tencent Holdings 144A 2.88% 4/22/31 # | 200,000 | $ | 173,623 | |||||
| 144A 3.68% 4/22/41 # | 400,000 | 306,188 | ||||||
| Time Warner Cable 7.30% 7/1/38 | 2,120,000 | 2,201,997 | ||||||
| T-Mobile USA | ||||||||
| 1.50% 2/15/26 | 2,100,000 | 1,919,428 | ||||||
| 3.00% 2/15/41 | 3,445,000 | 2,556,844 | ||||||
| 3.30% 2/15/51 | 1,500,000 | 1,068,270 | ||||||
| 3.75% 4/15/27 | 2,150,000 | 2,068,108 | ||||||
| 3.875% 4/15/30 | 1,400,000 | 1,314,743 | ||||||
| Turkcell Iletisim Hizmetleri 144A 5.80% 4/11/28 # | 350,000 | 311,022 | ||||||
| Verizon Communications | ||||||||
| 2.10% 3/22/28 | 1,100,000 | 980,315 | ||||||
| 2.355% 3/15/32 | 1,570,000 | 1,288,781 | ||||||
| 2.55% 3/21/31 | 800,000 | 681,857 | ||||||
| 2.875% 11/20/50 | 1,100,000 | 732,752 | ||||||
| 3.40% 3/22/41 | 1,845,000 | 1,468,670 | ||||||
| 4.50% 8/10/33 | 6,325,000 | 6,114,773 | ||||||
| 5.964% (LIBOR03M + 1.10%) 5/15/25 • | 3,200,000 | 3,207,500 | ||||||
| Vmed O2 UK Financing I 144A 4.25% 1/31/31 # | 1,885,000 | 1,606,020 | ||||||
| 73,735,617 | ||||||||
| Consumer Cyclical — 1.46% | ||||||||
| Alsea 144A 7.75% 12/14/26 # | 375,000 | 366,639 | ||||||
| Aptiv 3.10% 12/1/51 | 4,171,000 | 2,648,951 | ||||||
| Arcos Dorados 144A 6.125% 5/27/29 # | 405,000 | 387,457 | ||||||
| Carnival | ||||||||
| 144A 4.00% 8/1/28 # | 730,000 | 629,169 | ||||||
| 144A 7.625% 3/1/26 # | 1,553,000 | 1,418,634 | ||||||
| Ford Motor Credit | ||||||||
| 1.744% 7/19/24 | EUR | 300,000 | 312,629 | |||||
| 2.30% 2/10/25 | 345,000 | 320,236 | ||||||
| 2.33% 11/25/25 | EUR | 200,000 | 202,424 | |||||
| 2.386% 2/17/26 | EUR | 500,000 | 505,771 | |||||
| 2.70% 8/10/26 | 700,000 | 623,875 | ||||||
| 2.748% 6/14/24 | GBP | 100,000 | 117,562 | |||||
| 2.90% 2/16/28 | 765,000 | 658,650 | ||||||
| 2.90% 2/10/29 | 500,000 | 414,598 | ||||||
| 3.25% 9/15/25 | EUR | 1,000,000 | 1,041,879 | |||||
| 4.535% 3/6/25 | GBP | 1,100,000 | 1,304,885 | |||||
| Ford Motor Credit | ||||||||
| 4.542% 8/1/26 | 1,514,000 | 1,437,497 | ||||||
| 5.125% 6/16/25 | 600,000 | 588,147 | ||||||
| Future Retail 144A 5.60% 1/22/25 # | 565,000 | 16,272 | ||||||
| Hilton Domestic Operating | ||||||||
| 144A 3.625% 2/15/32 # | 700,000 | 591,255 | ||||||
| 144A 4.00% 5/1/31 # | 700,000 | 613,620 | ||||||
| Hilton Grand Vacations Borrower Escrow 144A 5.00% 6/1/29 # | 900,000 | 800,339 | ||||||
| Hyatt Hotels 1.80% 10/1/24 | 300,000 | 284,196 | ||||||
| Hyundai Capital Services 144A 0.75% 9/15/23 # | 1,800,000 | 1,760,881 | ||||||
| InRetail Consumer 144A 3.25% 3/22/28 # | 530,000 | 458,829 | ||||||
| Kia 144A 2.375% 2/14/25 # | 395,000 | 375,279 | ||||||
| Marriott International 3.50% 10/15/32 | 900,000 | 789,660 | ||||||
| Melco Resorts Finance | ||||||||
| 144A 5.375% 12/4/29 # | 200,000 | 163,900 | ||||||
| 5.75% 7/21/28 | 200,000 | 173,200 | ||||||
| MGM China Holdings | ||||||||
| 144A 4.75% 2/1/27 # | 725,000 | 650,242 | ||||||
| 144A 5.25% 6/18/25 # | 600,000 | 569,197 | ||||||
| Nemak 144A 3.625% 6/28/31 # | 365,000 | 276,794 | ||||||
| Nissan Motor | ||||||||
| 144A 3.043% 9/15/23 # | 1,800,000 | 1,773,400 | ||||||
| 144A 4.345% 9/17/27 # | 1,400,000 | 1,321,549 | ||||||
| 144A 4.81% 9/17/30 # | 600,000 | 543,704 | ||||||
| Nissan Motor Acceptance | ||||||||
| 144A 2.45% 9/15/28 # | 300,000 | 243,717 | ||||||
| 144A 3.875% 9/21/23 # | 3,000,000 | 2,966,879 | ||||||
| Royal Caribbean Cruises 144A 5.50% 4/1/28 # | 940,000 | 830,960 | ||||||
| Sands China 2.80% 3/8/27 | 200,000 | 171,747 | ||||||
57
Schedules of investments
Optimum Fixed Income Fund
| Principal
amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Consumer Cyclical (continued) | ||||||||
| Sands China | ||||||||
| 3.35% 3/8/29 | 400,000 | $ | 332,593 | |||||
| 3.75% 8/8/31 | 740,000 | 595,031 | ||||||
| 4.30% 1/8/26 | 400,000 | 375,915 | ||||||
| 5.90% 8/8/28 | 1,800,000 | 1,710,219 | ||||||
| Studio City Finance 144A 6.50% 1/15/28 # | 695,000 | 585,628 | ||||||
| Turkiye Sise ve Cam Fabrikalari 144A 6.95% 3/14/26 # | 300,000 | 295,161 | ||||||
| Warnermedia Holdings | ||||||||
| 144A 3.638% 3/15/25 # | 400,000 | 386,645 | ||||||
| 144A 3.755% 3/15/27 # | 400,000 | 377,030 | ||||||
| 144A 5.05% 3/15/42 # | 800,000 | 669,871 | ||||||
| 144A 5.141% 3/15/52 # | 1,825,000 | 1,480,706 | ||||||
| Wynn Macau | ||||||||
| 5.50% 1/15/26 | 200,000 | 185,739 | ||||||
| 5.50% 10/1/27 | 200,000 | 174,720 | ||||||
| 35,523,881 | ||||||||
| Consumer Non-Cyclical — 3.28% | ||||||||
| AbbVie | ||||||||
| 2.85% 5/14/23 | 900,000 | 897,377 | ||||||
| 3.75% 11/14/23 | 1,200,000 | 1,188,559 | ||||||
| 4.05% 11/21/39 | 3,193,000 | 2,856,261 | ||||||
| Amgen | ||||||||
| 2.20% 2/21/27 | 3,300,000 | 3,042,775 | ||||||
| 5.15% 3/2/28 | 590,000 | 602,717 | ||||||
| 5.25% 3/2/30 | 720,000 | 736,654 | ||||||
| 5.25% 3/2/33 | 955,000 | 981,688 | ||||||
| 5.65% 3/2/53 | 520,000 | 541,693 | ||||||
| Ashtead Capital | ||||||||
| 144A 1.50% 8/12/26 # | 665,000 | 583,590 | ||||||
| 144A 2.45% 8/12/31 # | 585,000 | 461,375 | ||||||
| Bacardi 144A 4.45% 5/15/25 # | 500,000 | 492,624 | ||||||
| Bausch Health 144A 11.00% 9/30/28 # | 887,000 | 657,125 | ||||||
| Baxter International 3.132% 12/1/51 | 2,336,000 | 1,518,327 | ||||||
| Becton Dickinson Euro Finance 1.336% 8/13/41 | EUR | 700,000 | 475,139 | |||||
| Bellis Acquisition 3.25% 2/16/26 | GBP | 3,300,000 | 3,346,475 | |||||
| Bidvest Group UK 144A 3.625% 9/23/26 # | 530,000 | 481,463 | ||||||
| Centene 3.375% 2/15/30 | 1,000,000 | 873,344 | ||||||
| Central American Bottling 144A 5.25% 4/27/29 # | 335,000 | 311,689 | ||||||
| Cia Cervecerias Unidas 144A 3.35% 1/19/32 # | 295,000 | 250,290 | ||||||
| Coca-Cola Icecek 144A 4.50% 1/20/29 # | 400,000 | 359,156 | ||||||
| Coty 144A 5.00% 4/15/26 # | 1,500,000 | 1,448,614 | ||||||
| CVS Health | ||||||||
| 2.70% 8/21/40 | 2,755,000 | 1,973,073 | ||||||
| 4.78% 3/25/38 | 5,620,000 | 5,361,449 | ||||||
| 5.05% 3/25/48 | 2,635,000 | 2,467,596 | ||||||
| CVS Pass Through Trust 144A 5.773% 1/10/33 #, t | 60,100 | 60,684 | ||||||
| Danone 144A 2.589% 11/2/23 # | 1,500,000 | 1,477,405 | ||||||
| DaVita | ||||||||
| 144A 3.75% 2/15/31 # | 850,000 | 671,262 | ||||||
| 144A 4.625% 6/1/30 # | 1,500,000 | 1,281,750 | ||||||
| Elevance Health 5.125% 2/15/53 | 925,000 | 922,310 | ||||||
| GE HealthCare Technologies | ||||||||
| 144A 5.60% 11/15/25 # | 730,000 | 739,238 | ||||||
| 144A 5.65% 11/15/27 # | 730,000 | 754,961 | ||||||
| Global Payments 3.20% 8/15/29 | 2,150,000 | 1,893,151 | ||||||
| Haleon UK Capital 3.125% 3/24/25 | 500,000 | 483,535 | ||||||
| Haleon US Capital 3.375% 3/24/29 | 500,000 | 461,518 | ||||||
| HCA | ||||||||
| 3.50% 7/15/51 | 180,000 | 124,537 | ||||||
| 4.125% 6/15/29 | 3,400,000 | 3,188,313 | ||||||
| Humana 5.75% 3/1/28 | 523,000 | 543,559 | ||||||
| Indofood CBP Sukses Makmur 3.541% 4/27/32 | 465,000 | 384,829 | ||||||
| International Container Terminal Services 4.75% 6/17/30 | 745,000 | 698,438 | ||||||
58
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Consumer Non-Cyclical (continued) | ||||||||
| JBS USA Lux | ||||||||
| 144A 3.00% 2/2/29 # | 1,466,000 | $ | 1,252,587 | |||||
| 144A 3.75% 12/1/31 # | 425,000 | 351,289 | ||||||
| 144A 5.50% 1/15/30 # | 350,000 | 334,432 | ||||||
| MHP Lux 144A 6.25% 9/19/29 # | 425,000 | 206,448 | ||||||
| Mondelez International 2.125% 3/17/24 | 500,000 | 486,105 | ||||||
| Natura Cosmeticos 144A 4.125% 5/3/28 # | 405,000 | 330,194 | ||||||
| Pilgrim's Pride 144A 5.875% 9/30/27 # | 1,458,000 | 1,450,579 | ||||||
| Regeneron Pharmaceuticals 2.80% 9/15/50 | 18,000 | 12,027 | ||||||
| Royalty Pharma | ||||||||
| 1.75% 9/2/27 | 7,625,000 | 6,612,352 | ||||||
| 3.35% 9/2/51 | 1,568,000 | 1,034,836 | ||||||
| 3.55% 9/2/50 | 1,250,000 | 863,276 | ||||||
| Takeda Pharmaceutical | ||||||||
| 3.025% 7/9/40 | 985,000 | 752,531 | ||||||
| 3.175% 7/9/50 | 4,797,000 | 3,432,772 | ||||||
| Tenet Healthcare | ||||||||
| 4.25% 6/1/29 | 3,920,000 | 3,549,991 | ||||||
| 6.125% 10/1/28 | 1,815,000 | 1,741,211 | ||||||
| Teva Pharmaceutical Finance Netherlands III | ||||||||
| 5.125% 5/9/29 | 365,000 | 330,984 | ||||||
| 6.75% 3/1/28 | 385,000 | 385,502 | ||||||
| United Rentals North America 3.875% 2/15/31 | 869,000 | 767,848 | ||||||
| UnitedHealth Group | ||||||||
| 3.70% 5/15/27 | 600,000 | 587,413 | ||||||
| 4.50% 4/15/33 | 4,650,000 | 4,625,315 | ||||||
| 5.05% 4/15/53 | 4,425,000 | 4,478,702 | ||||||
| Viatris 1.65% 6/22/25 | 320,000 | 293,637 | ||||||
| Zoetis 5.40% 11/14/25 | 420,000 | 427,314 | ||||||
| 79,901,888 | ||||||||
| Energy — 2.75% | ||||||||
| BP Capital Markets 4.875% 3/22/30 µ, ψ | 2,750,000 | 2,507,656 | ||||||
| BP Capital Markets America | ||||||||
| 2.721% 1/12/32 | 1,465,000 | 1,278,080 | ||||||
| 4.812% 2/13/33 | 675,000 | 685,635 | ||||||
| Canacol Energy 144A 5.75% 11/24/28 # | 325,000 | 262,737 | ||||||
| CNX Resources 144A 6.00% 1/15/29 # | 2,275,000 | 2,129,855 | ||||||
| Crestwood Midstream Partners 144A 6.00% 2/1/29 # | 1,737,000 | 1,655,787 | ||||||
| Diamondback Energy 4.25% 3/15/52 | 1,423,000 | 1,118,804 | ||||||
| Ecopetrol 8.875% 1/13/33 | 440,000 | 445,720 | ||||||
| Ecopetrol SA 5.875% 11/2/51 | 320,000 | 216,640 | ||||||
| EIG Pearl Holdings 144A 4.387% 11/30/46 # | 345,000 | 273,290 | ||||||
| Enbridge 5.70% 3/8/33 | 465,000 | 483,945 | ||||||
| Energean Israel Finance 144A 4.875% 3/30/26 # | 325,000 | 301,844 | ||||||
| Energo-Pro 144A 8.50% 2/4/27 # | 460,000 | 443,325 | ||||||
| Energy Transfer | ||||||||
| 4.95% 5/15/28 | 700,000 | 690,538 | ||||||
| 5.25% 4/15/29 | 655,000 | 653,125 | ||||||
| 5.50% 6/1/27 | 3,200,000 | 3,237,208 | ||||||
| 5.75% 2/15/33 | 248,000 | 254,262 | ||||||
| 6.25% 4/15/49 | 4,420,000 | 4,387,324 | ||||||
| 6.50% 11/15/26 µ, ψ | 3,380,000 | 2,982,850 | ||||||
| Enterprise Products Operating | ||||||||
| 3.20% 2/15/52 | 4,365,000 | 3,112,818 | ||||||
| 3.30% 2/15/53 | 570,000 | 413,393 | ||||||
| 5.35% 1/31/33 | 285,000 | 295,517 | ||||||
| EQT 6.125% 2/1/25 | 1,100,000 | 1,107,642 | ||||||
| Galaxy Pipeline Assets Bidco 144A 2.94% 9/30/40 # | 483,265 | 392,646 | ||||||
| Geopark 144A 5.50% 1/17/27 # | 320,000 | 268,800 | ||||||
| Greensaif Pipelines Bidco 144A 6.51% 2/23/42 # | 585,000 | 617,183 | ||||||
| Guara Norte 144A 5.198% 6/15/34 # | 591,871 | 510,160 | ||||||
| Indika Energy Capital IV 144A 8.25% 10/22/25 # | 395,000 | 390,584 | ||||||
| KazMunayGas National 144A 4.75% 4/19/27 # | 200,000 | 184,318 | ||||||
59
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Energy (continued) | ||||||||
| KazMunayGas National 144A 5.375% 4/24/30 # | 320,000 | $ | 286,191 | |||||
| KazTransGas JSC 144A 4.375% 9/26/27 # | 630,000 | 566,380 | ||||||
| Kinder Morgan 5.20% 6/1/33 | 1,010,000 | 1,004,199 | ||||||
| Kosmos Energy 144A 7.75% 5/1/27 # | 625,000 | 525,706 | ||||||
| MC Brazil Downstream Trading 144A 7.25% 6/30/31 # | 323,694 | 254,667 | ||||||
| Medco Laurel Tree 144A 6.95% 11/12/28 # | 405,000 | 358,702 | ||||||
| MPLX 1.75% 3/1/26 | 685,000 | 625,517 | ||||||
| Murphy Oil 5.875% 12/1/27 | 1,730,000 | 1,687,110 | ||||||
| NuStar Logistics | ||||||||
| 5.625% 4/28/27 | 205,000 | 194,371 | ||||||
| 6.375% 10/1/30 | 2,337,000 | 2,244,946 | ||||||
| Oil and Gas Holding 144A 7.625% 11/7/24 # | 200,000 | 203,529 | ||||||
| ONEOK | ||||||||
| 4.35% 3/15/29 | 1,500,000 | 1,419,900 | ||||||
| 7.50% 9/1/23 | 2,840,000 | 2,850,142 | ||||||
| PDC Energy 5.75% 5/15/26 | 1,205,000 | 1,174,664 | ||||||
| Pertamina Persero 144A 3.65% 7/30/29 # | 197,000 | 183,210 | ||||||
| Petrobras Global Finance 6.75% 6/3/50 | 185,000 | 163,535 | ||||||
| Petroleos Mexicanos | ||||||||
| 5.95% 1/28/31 | 600,000 | 459,631 | ||||||
| 6.70% 2/16/32 | 76,000 | 60,554 | ||||||
| 6.75% 9/21/47 | 390,000 | 253,816 | ||||||
| 7.69% 1/23/50 | 240,000 | 169,545 | ||||||
| 144A 10.00% 2/7/33 # | 455,000 | 436,479 | ||||||
| Petronas Capital | ||||||||
| 144A 2.48% 1/28/32 # | 200,000 | 170,467 | ||||||
| 144A 3.50% 4/21/30 # | 440,000 | 410,978 | ||||||
| PTTEP Treasury Center 144A 2.587% 6/10/27 # | 495,000 | 451,251 | ||||||
| SA Global Sukuk 144A 2.694% 6/17/31 # | 165,000 | 144,984 | ||||||
| Sabine Pass Liquefaction 5.75% 5/15/24 | 5,501,000 | 5,515,543 | ||||||
| Santos Finance 144A 3.649% 4/29/31 # | 1,700,000 | 1,421,347 | ||||||
| Saudi Arabian Oil | ||||||||
| 144A 3.50% 11/24/70 # | 220,000 | 149,053 | ||||||
| 144A 4.25% 4/16/39 # | 430,000 | 386,300 | ||||||
| Sweihan PV Power PJSC 144A 3.625% 1/31/49 # | 418,639 | 344,433 | ||||||
| Targa Resources 4.20% 2/1/33 | 300,000 | 270,082 | ||||||
| Targa Resources Partners 5.00% 1/15/28 | 2,055,000 | 1,988,972 | ||||||
| Tengizchevroil Finance Co. International 144A 2.625% 8/15/25 # | 284,000 | 254,538 | ||||||
| Tennessee Gas Pipeline 144A 2.90% 3/1/30 # | 6,275,000 | 5,442,486 | ||||||
| Thaioil Treasury Center 144A 2.50% 6/18/30 # | 410,000 | 330,487 | ||||||
| TMS Issuer 144A 5.78% 8/23/32 # | 310,000 | 323,801 | ||||||
| Transportadora de Gas del Sur 144A 6.75% 5/2/25 # | 370,000 | 333,278 | ||||||
| Tullow Oil 144A 10.25% 5/15/26 # | 410,000 | 316,491 | ||||||
| UEP Penonome II 144A 6.50% 10/1/38 # | 300,066 | 225,885 | ||||||
| Uzbekneftegaz 144A 4.75% 11/16/28 # | 200,000 | 159,023 | ||||||
| Valero Energy 3.65% 12/1/51 | 1,575,000 | 1,146,215 | ||||||
| Woodside Finance 144A 3.70% 9/15/26 # | 400,000 | 384,096 | ||||||
| YPF 144A 6.95% 7/21/27 # | 510,000 | 379,343 | ||||||
| 66,973,533 | ||||||||
| Finance Companies — 1.87% | ||||||||
| AerCap Ireland Capital DAC | ||||||||
| 1.65% 10/29/24 | 500,000 | 468,053 | ||||||
| 2.45% 10/29/26 | 1,445,000 | 1,298,698 | ||||||
| 3.00% 10/29/28 | 3,660,000 | 3,197,928 | ||||||
| 3.50% 1/15/25 | 300,000 | 286,637 | ||||||
60
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Finance Companies (continued) | ||||||||
| AerCap Ireland Capital DAC | ||||||||
| 4.45% 10/1/25 | 1,200,000 | $ | 1,160,523 | |||||
| 4.45% 4/3/26 | 150,000 | 144,227 | ||||||
| 4.50% 9/15/23 | 460,000 | 455,709 | ||||||
| 6.50% 7/15/25 | 1,350,000 | 1,360,863 | ||||||
| Air Lease | ||||||||
| 2.875% 1/15/26 | 2,050,000 | 1,912,831 | ||||||
| 2.875% 1/15/32 | 2,380,000 | 1,968,102 | ||||||
| 3.00% 2/1/30 | 7,215,000 | 6,179,692 | ||||||
| 3.375% 7/1/25 | 670,000 | 638,858 | ||||||
| 4.125% 12/15/26 µ, ψ | 715,000 | 487,988 | ||||||
| 4.25% 2/1/24 | 900,000 | 885,396 | ||||||
| 4.625% 10/1/28 | 2,115,000 | 2,009,302 | ||||||
| 5.85% 12/15/27 | 735,000 | 739,525 | ||||||
| Aircastle 4.125% 5/1/24 | 2,500,000 | 2,448,896 | ||||||
| Aviation Capital Group | ||||||||
| 144A 3.50% 11/1/27 # | 3,225,000 | 2,883,217 | ||||||
| 144A 3.875% 5/1/23 # | 1,000,000 | 995,883 | ||||||
| 144A 6.25% 4/15/28 # | 310,000 | 310,478 | ||||||
| Avolon Holdings Funding 144A 2.528% 11/18/27 # | 116,000 | 98,262 | ||||||
| China Evergrande Group 10.00% 4/11/23 | 550,000 | 44,168 | ||||||
| CIFI Holdings Group 6.45% 11/7/24 | 430,000 | 91,614 | ||||||
| Country Garden Holdings | ||||||||
| 4.20% 2/6/26 | 254,000 | 148,787 | ||||||
| 7.25% 4/8/26 | 285,000 | 180,975 | ||||||
| DAE Funding | ||||||||
| 144A 1.55% 8/1/24 # | 200,000 | 188,207 | ||||||
| 144A 1.625% 2/15/24 # | 1,500,000 | 1,435,552 | ||||||
| 3.375% 3/20/28 | 2,700,000 | 2,438,219 | ||||||
| GE Capital UK Funding Unlimited 5.875% 1/18/33 | GBP | 300,000 | 382,585 | |||||
| GLP 3.875% 6/4/25 | 315,000 | 246,876 | ||||||
| Goodman HK Finance 4.375% 6/19/24 | 550,000 | 542,704 | ||||||
| Huarong Finance 2019 3.875% 11/13/29 | 350,000 | 243,108 | ||||||
| Indigo Group 1.625% 4/19/28 | EUR | 1,700,000 | 1,617,711 | |||||
| Jyske Realkredit 1.50% 10/1/53 | DKK | 1 | 0 | |||||
| KeyCorp 4.789% 6/1/33 µ | 139,000 | 124,579 | ||||||
| Logicor Financing 3.25% 11/13/28 | EUR | 3,400,000 | 2,978,693 | |||||
| MAF Global Securities 7.875% 6/30/27 µ, ψ | 215,000 | 217,230 | ||||||
| OneMain Finance 6.125% 3/15/24 | 1,500,000 | 1,462,635 | ||||||
| Owl Rock Capital 2.875% 6/11/28 | 500,000 | 405,927 | ||||||
| Realkredit Danmark | ||||||||
| 1.00% 10/1/50 | DKK | 1 | 0 | |||||
| 1.00% 10/1/53 | DKK | 1 | 0 | |||||
| 1.50% 10/1/53 | DKK | 1 | 0 | |||||
| 2.00% 10/1/53 | DKK | 1 | 0 | |||||
| RKPF Overseas 2020 A 5.125% 7/26/26 | 245,000 | 168,678 | ||||||
| Samhallsbyggnadsbolaget i Norden 1.125% 9/4/26 | EUR | 900,000 | 709,523 | |||||
| Sino-Ocean Land Treasure IV 4.75% 8/5/29 | 275,000 | 108,057 | ||||||
| Sirius Real Estate 1.125% 6/22/26 | EUR | 2,400,000 | 2,023,143 | |||||
| 45,690,039 | ||||||||
| Industrials — 0.27% | ||||||||
| Burlington Northern Santa Fe 2.875% 6/15/52 | 1,615,000 | 1,133,341 | ||||||
| Cemex | ||||||||
| 144A 7.375% 6/5/27 # | 350,000 | 362,390 | ||||||
| 144A 9.125% 3/14/28 #, µ, ψ | 420,000 | 421,135 | ||||||
| General Electric 8.196% (LIBOR03M + 3.33%) ω, • | 92,000 | 92,253 | ||||||
| Georgian Railway JSC 4.00% 6/17/28 | 595,000 | 512,914 | ||||||
| Holcim Finance Luxembourg | ||||||||
| 0.50% 4/23/31 | EUR | 1,100,000 | 891,216 | |||||
| 0.625% 4/6/30 | EUR | 1,000,000 | 860,360 | |||||
| Inversiones La Construccion 144A 4.75% 2/7/32 # | 395,000 | 314,488 | ||||||
61
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Industrials (continued) | ||||||||
| Mauser Packaging Solutions Holding 144A 7.875% 8/15/26 # | 1,890,000 | $ | 1,891,710 | |||||
| West China Cement 4.95% 7/8/26 | 215,000 | 173,905 | ||||||
| 6,653,712 | ||||||||
| Insurance — 0.89% | ||||||||
| AIA Group | ||||||||
| 144A 3.375% 4/7/30 # | 375,000 | 345,117 | ||||||
| 144A 3.90% 4/6/28 # | 1,000,000 | 967,821 | ||||||
| American International Group 5.125% 3/27/33 | 2,275,000 | 2,262,746 | ||||||
| Aon | ||||||||
| 2.90% 8/23/51 | 4,930,000 | 3,296,843 | ||||||
| 5.00% 9/12/32 | 1,005,000 | 1,010,284 | ||||||
| Athene Holding | ||||||||
| 3.45% 5/15/52 | 2,510,000 | 1,591,319 | ||||||
| 3.95% 5/25/51 | 1,120,000 | 772,707 | ||||||
| Athora Netherlands 2.375% 5/17/24 | EUR | 2,100,000 | 2,212,703 | |||||
| Brighthouse Financial | ||||||||
| 3.85% 12/22/51 | 2,472,000 | 1,604,640 | ||||||
| 4.70% 6/22/47 | 469,000 | 343,404 | ||||||
| Fairfax Financial Holdings 4.625% 4/29/30 | 1,000,000 | 943,633 | ||||||
| Jones Deslauriers Insurance Management 144A 8.50% 3/15/30 # | 3,205,000 | 3,325,171 | ||||||
| MetLife 3.85% 9/15/25 µ, ψ | 1,520,000 | 1,343,001 | ||||||
| Prudential Financial 3.70% 3/13/51 | 1,660,000 | 1,260,158 | ||||||
| Sagicor Financial 144A 5.30% 5/13/28 # | 530,000 | 501,952 | ||||||
| 21,781,499 | ||||||||
| Real Estate Investment Trusts — 0.82% | ||||||||
| American Homes 4 Rent 3.625% 4/15/32 | 1,685,000 | 1,461,452 | ||||||
| American Tower | ||||||||
| 2.30% 9/15/31 | 1,600,000 | 1,283,848 | ||||||
| 3.00% 6/15/23 | 600,000 | 596,705 | ||||||
| 3.375% 5/15/24 | 500,000 | 489,622 | ||||||
| 3.65% 3/15/27 | 300,000 | 285,172 | ||||||
| CIBANCO Institucion de Banca Multiple Trust 144A 4.375% 7/22/31 # | 450,000 | 332,754 | ||||||
| Cromwell Ereit Lux Finco 2.125% 11/19/25 | EUR | 600,000 | 554,514 | |||||
| Crown Castle | ||||||||
| 1.05% 7/15/26 | 1,870,000 | 1,648,838 | ||||||
| 2.10% 4/1/31 | 3,573,000 | 2,921,522 | ||||||
| EPR Properties 4.50% 6/1/27 | 1,700,000 | 1,410,738 | ||||||
| GLP Capital 4.00% 1/15/30 | 2,600,000 | 2,308,748 | ||||||
| Iron Mountain 144A 5.25% 7/15/30 # | 966,000 | 871,937 | ||||||
| Iron Mountain Information Management Services 144A 5.00% 7/15/32 # | 3,080,000 | 2,647,819 | ||||||
| MPT Operating Partnership 3.692% 6/5/28 | GBP | 500,000 | 408,322 | |||||
| Trust Fibra Uno 144A 4.869% 1/15/30 # | 200,000 | 169,800 | ||||||
| VICI Properties | ||||||||
| 4.75% 2/15/28 | 100,000 | 94,891 | ||||||
| 4.95% 2/15/30 | 2,440,000 | 2,292,080 | ||||||
| 144A 5.75% 2/1/27 # | 145,000 | 142,480 | ||||||
| 19,921,242 | ||||||||
| Technology — 1.38% | ||||||||
| Autodesk 2.40% 12/15/31 | 2,390,000 | 1,989,128 | ||||||
| Broadcom | ||||||||
| 144A 3.137% 11/15/35 # | 2,789,000 | 2,147,077 | ||||||
| 144A 3.419% 4/15/33 # | 1,600,000 | 1,339,869 | ||||||
| 144A 3.469% 4/15/34 # | 6,257,000 | 5,143,594 | ||||||
| 144A 4.926% 5/15/37 # | 115,000 | 104,685 | ||||||
| Broadridge Financial Solutions 2.60% 5/1/31 | 1,866,000 | 1,563,562 | ||||||
| CA Magnum Holdings 144A 5.375% 10/31/26 # | 418,000 | 367,089 | ||||||
| CDW 2.67% 12/1/26 | 465,000 | 418,750 | ||||||
62
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Technology (continued) | ||||||||
| CDW 3.276% 12/1/28 | 4,143,000 | $ | 3,657,337 | |||||
| Entegris Escrow 144A 4.75% 4/15/29 # | 1,230,000 | 1,163,965 | ||||||
| Fiserv 3.50% 7/1/29 | 3,500,000 | 3,250,019 | ||||||
| Micron Technology 6.75% 11/1/29 | 333,000 | 353,920 | ||||||
| NCR | ||||||||
| 144A 5.00% 10/1/28 # | 365,000 | 321,200 | ||||||
| 144A 5.125% 4/15/29 # | 455,000 | 394,143 | ||||||
| NXP | ||||||||
| 3.125% 2/15/42 | 925,000 | 657,040 | ||||||
| 3.25% 5/11/41 | 1,740,000 | 1,269,655 | ||||||
| 3.875% 6/18/26 | 3,250,000 | 3,140,463 | ||||||
| 5.55% 12/1/28 | 440,000 | 449,288 | ||||||
| Oracle | ||||||||
| 4.65% 5/6/30 | 455,000 | 443,185 | ||||||
| 5.55% 2/6/53 | 2,115,000 | 2,016,231 | ||||||
| 6.15% 11/9/29 | 610,000 | 650,016 | ||||||
| SK Hynix | ||||||||
| 144A 1.50% 1/19/26 # | 265,000 | 235,593 | ||||||
| 144A 6.50% 1/17/33 # | 365,000 | 362,666 | ||||||
| TD SYNNEX | ||||||||
| 2.375% 8/9/28 | 800,000 | 663,970 | ||||||
| 2.65% 8/9/31 | 1,200,000 | 953,080 | ||||||
| TSMC Global 144A 4.625% 7/22/32 # | 535,000 | 539,727 | ||||||
| 33,595,252 | ||||||||
| Transportation — 1.35% | ||||||||
| Air Canada 144A 3.875% 8/15/26 # | 300,000 | 272,718 | ||||||
| American Airlines 144A 5.50% 4/20/26 # | 891,676 | 878,606 | ||||||
| American Airlines 2015-1 Class A Pass Through Trust 3.375% 11/1/28 ♦ | 1,126,438 | 979,152 | ||||||
| American Airlines 2016-1 Class AA Pass Through Trust 3.575% 7/15/29 ♦ | 483,444 | 444,607 | ||||||
| American Airlines 2016-3 Class AA Pass Through Trust 3.00% 4/15/30 ♦ | 938,797 | 832,050 | ||||||
| American Airlines 2019-1 Class AA Pass Through Trust 3.15% 8/15/33 ♦ | 167,457 | 146,459 | ||||||
| American Airlines 2021-1 Class A Pass Through Trust 2.875% 1/11/36 ♦ | 97,319 | 80,056 | ||||||
| Azul Investments | ||||||||
| 144A 5.875% 10/26/24 # | 430,000 | 342,101 | ||||||
| 144A 7.25% 6/15/26 # | 400,000 | 262,630 | ||||||
| British Airways 2018-1 Class AA Pass Through Trust 144A 3.80% 3/20/33 #, ♦ | 1,049,993 | 964,218 | ||||||
| British Airways 2019-1 Class AA Pass Through Trust 144A 3.30% 6/15/34 #, ♦ | 263,228 | 227,236 | ||||||
| Delta Air Lines | ||||||||
| 144A 7.00% 5/1/25 # | 5,349,000 | 5,487,654 | ||||||
| 7.375% 1/15/26 | 1,858,000 | 1,935,181 | ||||||
| ERAC USA Finance | ||||||||
| 144A 2.70% 11/1/23 # | 300,000 | 295,082 | ||||||
| Grupo Aeromexico 144A 8.50% 3/17/27 # | 2,670,000 | 2,351,355 | ||||||
| Kansas City Southern 3.00% 5/15/23 | 500,000 | 498,164 | ||||||
| Lima Metro Line 2 Finance 144A 4.35% 4/5/36 # | 635,165 | 555,048 | ||||||
| Mileage Plus Holdings 144A 6.50% 6/20/27 # | 4,250,000 | 4,240,501 | ||||||
| Misc Capital Two Labuan 144A 3.75% 4/6/27 # | 515,000 | 487,327 | ||||||
| Penske Truck Leasing | ||||||||
| 144A 3.95% 3/10/25 # | 1,000,000 | 971,774 | ||||||
| 144A 4.45% 1/29/26 # | 2,100,000 | 2,047,250 | ||||||
| Rumo Luxembourg 144A 5.25% 1/10/28 # | 415,000 | 382,837 | ||||||
| United Airlines 144A 4.375% 4/15/26 # | 2,005,000 | 1,920,546 | ||||||
63
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Transportation (continued) | ||||||||
| United Airlines 144A 4.625% 4/15/29 # | 4,961,000 | $ | 4,493,780 | |||||
| United Airlines 2020-1 Class A Pass Through Trust 5.875% 4/15/29 ♦ | 1,433,613 | 1,429,286 | ||||||
| US Airways 2012-2 Class A Pass Through Trust 4.625% 12/3/26 ♦ | 300,554 | 283,939 | ||||||
| US Airways 2013-A Class A Pass Through Trust 3.95% 5/15/27 ♦ | 44,383 | 41,485 | ||||||
| 32,851,042 | ||||||||
| Utilities — 3.26% | ||||||||
| Abu Dhabi National Energy PJSC 144A 2.00% 4/29/28 # | 425,000 | 377,668 | ||||||
| AEP Transmission 5.40% 3/15/53 | 345,000 | 359,912 | ||||||
| AES Andes 144A 7.125% 3/26/79 #, µ | 300,000 | 286,957 | ||||||
| Alfa Desarrollo 144A 4.55% 9/27/51 # | 497,535 | 365,263 | ||||||
| Appalachian Power 4.50% 8/1/32 | 3,500,000 | 3,362,479 | ||||||
| Atmos Energy | ||||||||
| 2.85% 2/15/52 | 975,000 | 663,841 | ||||||
| 5.75% 10/15/52 | 1,745,000 | 1,906,813 | ||||||
| Baltimore Gas and Electric 4.55% 6/1/52 | 1,395,000 | 1,273,881 | ||||||
| Berkshire Hathaway Energy 2.85% 5/15/51 | 4,385,000 | 3,020,390 | ||||||
| Boston Gas 144A 3.757% 3/16/32 # | 500,000 | 452,341 | ||||||
| Calpine | ||||||||
| 144A 4.50% 2/15/28 # | 453,000 | 420,755 | ||||||
| 144A 5.00% 2/1/31 # | 1,535,000 | 1,301,070 | ||||||
| 144A 5.125% 3/15/28 # | 454,000 | 416,277 | ||||||
| Cikarang Listrindo 144A 4.95% 9/14/26 # | 540,000 | 514,890 | ||||||
| Colbun 144A 3.95% 10/11/27 # | 345,000 | 322,834 | ||||||
| Consorcio Transmantaro 144A 5.20% 4/11/38 # | 280,000 | 257,863 | ||||||
| Duke Energy 4.875% 9/16/24 µ, ψ | 1,630,000 | 1,568,223 | ||||||
| Duke Energy Carolinas 4.95% 1/15/33 | 4,790,000 | 4,925,521 | ||||||
| Duke Energy Indiana 3.25% 10/1/49 | 1,265,000 | 927,649 | ||||||
| Enel Finance America 144A 2.875% 7/12/41 # | 2,085,000 | 1,374,353 | ||||||
| ENN Energy Holdings 144A 2.625% 9/17/30 # | 405,000 | 341,284 | ||||||
| Entergy Arkansas 4.20% 4/1/49 | 870,000 | 746,801 | ||||||
| Entergy Louisiana 4.95% 1/15/45 | 235,000 | 219,780 | ||||||
| Entergy Texas 3.55% 9/30/49 | 700,000 | 535,162 | ||||||
| Essential Utilities | ||||||||
| 2.704% 4/15/30 | 695,000 | 601,480 | ||||||
| 3.351% 4/15/50 | 675,000 | 482,515 | ||||||
| Evergy Kansas Central 3.45% 4/15/50 | 1,185,000 | 898,219 | ||||||
| Exelon 5.30% 3/15/33 | 645,000 | 656,828 | ||||||
| FirstEnergy Transmission 144A 4.55% 4/1/49 # | 5,000 | 4,216 | ||||||
| Georgia Power 4.70% 5/15/32 | 3,200,000 | 3,172,191 | ||||||
| Greenko Power II 144A 4.30% 12/13/28 # | 448,850 | 388,816 | ||||||
| Indianapolis Power & Light 144A 5.65% 12/1/32 # | 1,090,000 | 1,146,227 | ||||||
| Interchile 144A 4.50% 6/30/56 # | 305,000 | 244,114 | ||||||
| Israel Electric 144A 3.75% 2/22/32 # | 390,000 | 340,541 | ||||||
| JSW Hydro Energy 144A 4.125% 5/18/31 # | 292,050 | 242,593 | ||||||
| Louisville Gas and Electric 4.25% 4/1/49 | 2,685,000 | 2,316,904 | ||||||
| Minejesa Capital 144A 5.625% 8/10/37 # | 200,000 | 156,967 | ||||||
| Mong Duong Finance Holdings 144A 5.125% 5/7/29 # | 500,000 | 424,868 | ||||||
| National Rural Utilities Cooperative Finance 5.80% 1/15/33 | 215,000 | 229,174 | ||||||
64
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Corporate Bonds (continued) | ||||||||
| Utilities (continued) | ||||||||
| Nevada Power 5.90% 5/1/53 | 1,670,000 | $ | 1,856,660 | |||||
| NextEra Energy Capital Holdings 3.00% 1/15/52 | 1,105,000 | 746,075 | ||||||
| Oglethorpe Power 3.75% 8/1/50 | 1,620,000 | 1,249,823 | ||||||
| Oryx Funding 144A 5.80% 2/3/31 # | 420,000 | 404,115 | ||||||
| Pacific Gas & Electric | ||||||||
| 2.10% 8/1/27 | 1,400,000 | 1,222,034 | ||||||
| 3.00% 6/15/28 | 800,000 | 710,873 | ||||||
| 3.25% 6/1/31 | 420,000 | 356,317 | ||||||
| 3.30% 3/15/27 | 700,000 | 640,774 | ||||||
| 3.30% 8/1/40 | 7,168,000 | 5,095,594 | ||||||
| 3.50% 6/15/25 | 400,000 | 381,673 | ||||||
| 3.50% 8/1/50 | 4,510,000 | 2,983,278 | ||||||
| 4.20% 3/1/29 | 3,200,000 | 2,929,797 | ||||||
| 4.40% 3/1/32 | 1,300,000 | 1,172,874 | ||||||
| 4.50% 7/1/40 | 1,100,000 | 904,617 | ||||||
| 4.95% 7/1/50 | 516,000 | 426,076 | ||||||
| PacifiCorp 5.35% 12/1/53 | 600,000 | 615,368 | ||||||
| Pedernales Electric Cooperative 144A 6.202% 11/15/32 # | 620,000 | 632,047 | ||||||
| Perusahaan Listrik Negara | ||||||||
| 144A 4.125% 5/15/27 # | 300,000 | 287,550 | ||||||
| 144A 5.25% 5/15/47 # | 185,000 | 160,278 | ||||||
| PG&E 5.25% 7/1/30 | 1,625,000 | 1,510,559 | ||||||
| Public Service of Colorado 5.25% 4/1/53 | 780,000 | 795,716 | ||||||
| Sempra Energy 4.875% 10/15/25 µ, ψ | 575,000 | 539,962 | ||||||
| Sociedad de Transmision Austral 144A 4.00% 1/27/32 # | 420,000 | 348,996 | ||||||
| Southern 5.70% 10/15/32 | 900,000 | 947,373 | ||||||
| Southern California Edison | ||||||||
| 3.45% 2/1/52 | 3,037,000 | 2,229,362 | ||||||
| 3.65% 2/1/50 | 1,525,000 | 1,177,226 | ||||||
| 4.00% 4/1/47 | 880,000 | 724,707 | ||||||
| 4.875% 3/1/49 | 2,330,000 | 2,159,817 | ||||||
| Southern California Gas 2.95% 4/15/27 | 2,600,000 | 2,437,807 | ||||||
| Southern Co. Gas Capital 5.15% 9/15/32 | 1,901,000 | 1,918,530 | ||||||
| System Energy Resources 2.14% 12/9/25 | 800,000 | 737,729 | ||||||
| Vistra 144A 7.00% 12/15/26 #, µ, ψ | 1,500,000 | 1,321,552 | ||||||
| Vistra Operations 144A 5.125% 5/13/25 # | 2,620,000 | 2,556,348 | ||||||
| 79,429,167 | ||||||||
| Total Corporate Bonds (cost $858,093,368) | 766,973,921 | |||||||
| Municipal Bonds — 0.86% | ||||||||
| American Municipal Power, Ohio (Combined Hydroelectric Projects - Build America Bonds) Series B 8.084% 2/15/50 | 1,500,000 | 2,078,250 | ||||||
| Chicago, Illinois Transit Authority Sales Tax Receipts Revenue | ||||||||
| (Pension Funding) Series A 6.899% 12/1/40 | 1,750,000 | 2,024,207 | ||||||
| (Retire Health care Funding) Series B 6.899% 12/1/40 | 1,750,000 | 2,024,208 | ||||||
| Commonwealth of Puerto Rico (Restructured) | ||||||||
| Series A-1 2.993% 7/1/24 ^ | 162,917 | 153,393 | ||||||
| Series A-1 4.00% 7/1/35 | 355,609 | 310,827 | ||||||
| Series A-1 4.00% 7/1/37 | 377,735 | 320,591 | ||||||
| GDB Debt Recovery Authority of Puerto Rico (Taxable) 7.50% 8/20/40 | 7,412,615 | 6,152,470 | ||||||
| Golden State, California Tobacco Securitization (Senior) Series A1 2.587% 6/1/29 | 1,700,000 | 1,472,608 | ||||||
65
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Municipal Bonds (continued) | ||||||||
| Municipal Electric Authority of Georgia (Build America Bonds Plant Vogtle Units 3 & 4 Project) 6.655% 4/1/57 | 1,728,000 | $ | 1,915,972 | |||||
| New Jersey Transportation Trust Fund Authority (Build America Bonds) Series C 5.754% 12/15/28 | 1,590,000 | 1,633,169 | ||||||
| New York City, New York Transitional Finance Authority Future Tax Secured Revenue (Build America Bonds) Subordinate Series A-1 5.508% 8/1/37 | 700,000 | 728,770 | ||||||
| New York State Urban Development (Build America Bonds) Series E 5.77% 3/15/39 | 800,000 | 838,600 | ||||||
| Pennsylvania Higher Education Assistance Agency Revenue (Student Loans) Series 2006-2 A-3 4.948% (LIBOR03M + 0.13%) 10/25/36 • | 219,217 | 216,621 | ||||||
| West Virginia Tobacco Settlement Finance Authority (Class 1 Senior Current Interest Bonds) | ||||||||
| Series A 1.82% 6/1/26 | 250,000 | 226,768 | ||||||
| Series A 2.351% 6/1/28 | 300,000 | 263,643 | ||||||
| Series A 2.551% 6/1/29 | 300,000 | 260,028 | ||||||
| Series A 2.951% 6/1/31 | 500,000 | 423,075 | ||||||
| Total Municipal Bonds (cost $22,718,252) | 21,043,200 | |||||||
| Non-Agency Asset-Backed Securities — 2.06% | ||||||||
| ABFC Trust | ||||||||
| Series 2006-HE1 A2D 5.065% (LIBOR01M + 0.22%, Floor 0.22%) 1/25/37 • | 251,938 | 144,954 | ||||||
| Argent Securities Trust | ||||||||
| Series 2006-M1 A2C 5.145% (LIBOR01M + 0.30%, Floor 0.30%) 7/25/36 • | 1,092,653 | 286,812 | ||||||
| Series 2006-W4 A2C 5.165% (LIBOR01M + 0.32%, Floor 0.32%) 5/25/36 • | 571,359 | 137,960 | ||||||
| Bear Stearns Asset-Backed Securities I Trust | ||||||||
| Series 2005-FR1 M2 5.85% (LIBOR01M + 1.01%, Floor 1.01%) 6/25/35 • | 1,027,995 | 974,558 | ||||||
| Bear Stearns Asset-Backed Securities Trust | ||||||||
| Series 2007-SD1 22A1 3.846% 10/25/36 • | 99,753 | 58,586 | ||||||
| Centex Home Equity Loan Trust | ||||||||
| Series 2002-A AF6 5.54% 1/25/32 | 182 | 177 | ||||||
| CIT Mortgage Loan Trust | ||||||||
| Series 2007-1 1M1 144A 6.345% (LIBOR01M + 1.50%, Floor 1.50%) 10/25/37 #, • | 3,600,000 | 3,437,670 | ||||||
| Citicorp Residential Mortgage Trust | ||||||||
| Series 2006-3 A5 4.72% 11/25/36 ~ | 180,534 | 176,767 | ||||||
| Countrywide Asset-Backed Certificates Trust | ||||||||
| Series 2004-3 2A 5.245% (LIBOR01M + 0.40%, Floor 0.40%) 8/25/34 • | 26,838 | 24,477 | ||||||
| Series 2005-3 MV7 6.795% (LIBOR01M + 1.95%, Floor 1.95%) 8/25/35 • | 4,200,000 | 3,812,277 | ||||||
| Series 2006-1 AF6 4.467% 7/25/36 • | 27,376 | 25,682 | ||||||
| Series 2006-11 1AF6 6.15% 9/25/46 • | 32,681 | 29,559 | ||||||
| Series 2006-17 2A2 5.145% (LIBOR01M + 0.30%, Floor 0.30%) 3/25/47 • | 569,558 | 553,857 | ||||||
66
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Non-Agency Asset-Backed Securities (continued) | ||||||||
| Countrywide Asset-Backed Certificates Trust | ||||||||
| Series 2006-26 2A4 5.065% (LIBOR01M + 0.22%, Floor 0.22%) 6/25/37 • | 990,155 | $ | 945,248 | |||||
| Series 2007-6 2A4 5.155% (LIBOR01M + 0.31%, Floor 0.31%) 9/25/37 • | 932,706 | 789,850 | ||||||
| DataBank Issuer | ||||||||
| Series 2021-1A A2 144A 2.06% 2/27/51 # | 1,600,000 | 1,420,059 | ||||||
| Diamond Infrastructure Funding | ||||||||
| Series 2021-1A A 144A 1.76% 4/15/49 # | 4,700,000 | 4,022,347 | ||||||
| Domino's Pizza Master Issuer | ||||||||
| Series 2021-1A A2I 144A 2.662% 4/25/51 # | 7,270,500 | 6,240,176 | ||||||
| EquiFirst Mortgage Loan Trust | ||||||||
| Series 2004-2 M7 7.845% (LIBOR01M + 3.00%, Floor 3.00%) 10/25/34 • | 662,361 | 614,995 | ||||||
| First Franklin Mortgage Loan Trust | ||||||||
| Series 2006-FF5 2A3 5.165% (LIBOR01M + 0.32%, Floor 0.32%) 4/25/36 • | 608,364 | 576,939 | ||||||
| Fremont Home Loan Trust | ||||||||
| Series 2004-B M1 5.715% (LIBOR01M + 0.87%, Floor 0.87%) 5/25/34 • | 1,952,372 | 1,790,995 | ||||||
| GE-WMC Mortgage Securities Trust | ||||||||
| Series 2006-1 A2B 5.145% (LIBOR01M + 0.30%, Floor 0.30%) 8/25/36 • | 1,656,150 | 710,475 | ||||||
| GSAMP Trust | ||||||||
| Series 2006-FM3 A2D 5.075% (LIBOR01M + 0.23%, Floor 0.23%) 11/25/36 • | 768,522 | 360,574 | ||||||
| GSAMP Trust | ||||||||
| Series 2007-SEA1 A 144A 5.145% (LIBOR01M + 0.30%, Floor 0.30%) 12/25/36 #, • | 436,182 | 407,843 | ||||||
| Hardee's Funding | ||||||||
| Series 2018-1A A2II 144A 4.959% 6/20/48 # | 477,500 | 453,288 | ||||||
| Home Equity Mortgage Loan Asset-Backed Trust | ||||||||
| Series 2007-A 2A3 5.085% (LIBOR01M + 0.24%, Floor 0.24%) 4/25/37 • | 1,074,300 | 694,696 | ||||||
| HSI Asset Securitization Trust | ||||||||
| Series 2006-HE1 2A1 4.945% (LIBOR01M + 0.10%, Floor 0.10%) 10/25/36 • | 21,418 | 8,555 | ||||||
| JPMorgan Chase Bank | ||||||||
| Series 2021-3 B 144A 0.76% 2/26/29 # | 581,916 | 552,081 | ||||||
| JPMorgan Mortgage Acquisition Trust | ||||||||
| Series 2006-CW2 AV5 5.085% (LIBOR01M + 0.24%, Floor 0.24%) 8/25/36 • | 179,841 | 174,907 | ||||||
| Lendingpoint Asset Securitization Trust | ||||||||
| Series 2021-B A 144A 1.11% 2/15/29 # | 73,633 | 73,405 | ||||||
| Long Beach Mortgage Loan Trust | ||||||||
| Series 2006-1 2A4 5.445% (LIBOR01M + 0.60%, Floor 0.60%) 2/25/36 • | 2,383,290 | 1,936,159 | ||||||
| Series 2006-7 1A 5.155% (LIBOR01M + 0.31%, Floor 0.31%) 8/25/36 • | 2,270,553 | 1,218,870 | ||||||
| Morgan Stanley ABS Capital I Trust | ||||||||
| Series 2007-HE1 A2C 4.995% (LIBOR01M + 0.15%, Floor 0.15%) 11/25/36 • | 3,651,511 | 2,037,724 | ||||||
67
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Non-Agency Asset-Backed Securities (continued) | ||||||||
| Morgan Stanley ABS Capital I Trust | ||||||||
| Series 2007-HE5 A2D 5.185% (LIBOR01M + 0.34%, Floor 0.34%) 3/25/37 • | 2,715,375 | $ | 1,195,332 | |||||
| New Century Home Equity Loan Trust | ||||||||
| Series 2005-1 M2 5.565% (LIBOR01M + 0.72%, Cap 12.50%, Floor 0.72%) 3/25/35 • | 233,599 | 222,389 | ||||||
| Option One Mortgage Loan Trust | ||||||||
| Series 2005-1 M1 5.625% (LIBOR01M + 0.78%, Floor 0.78%) 2/25/35 • | 1,020,749 | 956,997 | ||||||
| Series 2007-4 2A4 5.155% (LIBOR01M + 0.31%, Floor 0.31%) 4/25/37 • | 4,742,675 | 2,644,878 | ||||||
| PFS Financing | ||||||||
| Series 2021-A A 144A 0.71% 4/15/26 # | 1,800,000 | 1,713,589 | ||||||
| RAAC Trust | ||||||||
| Series 2005-SP2 2A 5.445% (LIBOR01M + 0.60%, Cap 14.00%, Floor 0.60%) 6/25/44 • | 175,805 | 140,778 | ||||||
| Sofi Professional Loan Program | ||||||||
| Series 2016-F A2 144A 3.02% 2/25/40 # | 88,806 | 84,710 | ||||||
| Soundview Home Loan Trust | ||||||||
| Series 2006-OPT1 2A4 5.385% (LIBOR01M + 0.54%, Floor 0.54%) 3/25/36 • | 114,906 | 112,352 | ||||||
| Structured Asset Investment Loan Trust | ||||||||
| Series 2003-BC2 M1 6.225% (LIBOR01M + 1.38%, Floor 1.38%) 4/25/33 • | 15,778 | 15,177 | ||||||
| Structured Asset Securities Mortgage Loan Trust | ||||||||
| Series 2006-BC1 A6 5.115% (LIBOR01M + 0.27%, Floor 0.27%) 3/25/36 • | 952,547 | 865,125 | ||||||
| Series 2006-BC2 A1 5.00% (LIBOR01M + 0.16%, Floor 0.16%) 9/25/36 • | 3,010,270 | 1,869,764 | ||||||
| Towd Point Mortgage Trust | ||||||||
| Series 2017-1 A1 144A 2.75% 10/25/56 #, • | 92,151 | 90,378 | ||||||
| Series 2017-2 A1 144A 2.75% 4/25/57 #, • | 11,126 | 11,001 | ||||||
| Series 2017-4 M1 144A 3.25% 6/25/57 #, • | 615,000 | 535,767 | ||||||
| Series 2018-1 A1 144A 3.00% 1/25/58 #, • | 139,927 | 135,607 | ||||||
| Series 2019-4 A1 144A 2.90% 10/25/59 #, • | 5,307,801 | 4,947,135 | ||||||
| Total Non-Agency Asset-Backed Securities (cost $58,273,617) | 50,233,501 | |||||||
| Non-Agency Collateralized Mortgage Obligations — 1.51% | ||||||||
| Alternative Loan Trust Resecuritization | ||||||||
| Series 2008-2R 3A1 6.00% 8/25/37 • | 808,670 | 417,501 | ||||||
| ARM Trust | ||||||||
| Series 2005-10 3A31 3.293% 1/25/36 • | 34,994 | 31,185 | ||||||
| Series 2006-2 1A4 4.004% 5/25/36 • | 324,015 | 275,485 | ||||||
| Banc of America Funding Trust | ||||||||
| Series 2005-E 7A1 4.568% (12MTA + 1.43%, Floor 1.43%) 6/20/35 • | 65,167 | 51,296 | ||||||
| Series 2006-I 1A1 3.825% 12/20/36 • | 75,800 | 71,490 | ||||||
| Banc of America Mortgage Trust | ||||||||
| Series 2003-D 2A1 4.029% 5/25/33 • | 32,518 | 29,472 | ||||||
68
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Non-Agency Collateralized Mortgage Obligations (continued) | ||||||||
| Bear Stearns ARM Trust | ||||||||
| Series 2003-5 2A1 3.539% 8/25/33 • | 14,018 | $ | 12,725 | |||||
| Chase Mortgage Finance Trust | ||||||||
| Series 2005-A1 3A1 3.939% 12/25/35 • | 40,157 | 33,230 | ||||||
| CHL Mortgage Pass Through Trust | ||||||||
| Series 2007-4 1A1 6.00% 5/25/37 ♦ | 662,074 | 315,292 | ||||||
| Connecticut Avenue Securities Trust | ||||||||
| Series 2018-R07 1M2 144A 7.245% (LIBOR01M + 2.40%) 4/25/31 #, • | 52,196 | 52,196 | ||||||
| Series 2019-R01 2M2 144A 7.295% (LIBOR01M + 2.45%) 7/25/31 #, • | 40,756 | 40,807 | ||||||
| Series 2019-R02 1M2 144A 7.145% (LIBOR01M + 2.30%, Floor 2.30%) 8/25/31 #, • | 73,466 | 73,466 | ||||||
| Series 2019-R07 1M2 144A 6.945% (LIBOR01M + 2.10%) 10/25/39 #, • | 155,338 | 155,811 | ||||||
| Series 2020-R01 1M2 144A 6.895% (LIBOR01M + 2.05%) 1/25/40 #, • | 688,183 | 690,298 | ||||||
| Series 2022-R01 1M2 144A 6.46% (SOFR + 1.90%) 12/25/41 #, • | 1,500,000 | 1,435,866 | ||||||
| Series 2022-R02 2M2 144A 7.56% (SOFR + 3.00%) 1/25/42 #, • | 900,000 | 853,904 | ||||||
| CSMC Mortgage-Backed Trust | ||||||||
| Series 2005-1R 2A5 144A 5.75% 12/26/35 # | 483,106 | 348,805 | ||||||
| Series 2007-1 5A14 6.00% 2/25/37 | 142,022 | 84,605 | ||||||
| Series 2007-3 4A12 1.905% (6.75% minus LIBOR01M, Cap 6.75%) 4/25/37 Σ, • | 73,163 | 10,309 | ||||||
| Series 2007-3 4A15 5.50% 4/25/37 | 32,487 | 26,785 | ||||||
| CSMC Mortgage-Backed Trust | ||||||||
| Series 2007-3 4A6 5.095% (LIBOR01M + 0.25%, Cap 7.00%, Floor 0.25%) 4/25/37 • | 73,163 | 57,535 | ||||||
| Flagstar Mortgage Trust | ||||||||
| Series 2021-2 A6 144A 2.50% 4/25/51 #, • | 802,681 | 692,563 | ||||||
| GMACM Mortgage Loan Trust | ||||||||
| Series 2006-J1 A1 5.75% 4/25/36 | 15,575 | 13,350 | ||||||
| GS Mortgage-Backed Securities Trust | ||||||||
| Series 2021-PJ4 A8 144A 2.50% 9/25/51 #, • | 2,123,499 | 1,832,182 | ||||||
| Series 2021-PJ7 A2 144A 2.50% 1/25/52 #, • | 2,223,985 | 1,799,778 | ||||||
| GSR Mortgage Loan Trust | ||||||||
| Series 2007-AR1 2A1 3.53% 3/25/47 • | 360,146 | 228,190 | ||||||
| JPMorgan Alternative Loan Trust | ||||||||
| Series 2007-A2 11A1 5.205% (LIBOR01M + 0.36%, Cap 11.50%, Floor 0.36%) 6/25/37 • | 2,910,750 | 1,553,552 | ||||||
| JPMorgan Mortgage Trust | ||||||||
| Series 2006-A6 2A4L 3.985% 10/25/36 • | 170,636 | 135,186 | ||||||
| Series 2006-A7 2A2 3.886% 1/25/37 • | 31,266 | 22,594 | ||||||
| Series 2007-A1 6A1 3.794% 7/25/35 • | 41,044 | 37,778 | ||||||
| Series 2014-2 B1 144A 3.412% 6/25/29 #, • | 21,186 | 18,601 | ||||||
| Series 2014-2 B2 144A 3.412% 6/25/29 #, • | 21,186 | 18,428 | ||||||
| Series 2015-4 B1 144A 3.548% 6/25/45 #, • | 458,840 | 409,172 | ||||||
| Series 2015-4 B2 144A 3.548% 6/25/45 #, • | 196,108 | 174,523 | ||||||
69
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Non-Agency Collateralized Mortgage Obligations (continued) | ||||||||
| JPMorgan Mortgage Trust | ||||||||
| Series 2015-5 B2 144A 5.853% 5/25/45 #, • | 291,918 | $ | 276,404 | |||||
| Series 2015-6 B1 144A 3.532% 10/25/45 #, • | 182,115 | 168,367 | ||||||
| Series 2015-6 B2 144A 3.532% 10/25/45 #, • | 177,193 | 163,358 | ||||||
| Series 2016-4 B1 144A 3.82% 10/25/46 #, • | 175,167 | 157,906 | ||||||
| Series 2016-4 B2 144A 3.82% 10/25/46 #, • | 319,356 | 286,143 | ||||||
| Series 2017-1 B3 144A 3.448% 1/25/47 #, • | 819,834 | 684,197 | ||||||
| Series 2017-2 A3 144A 3.50% 5/25/47 #, • | 50,739 | 45,810 | ||||||
| Series 2020-2 A3 144A 3.50% 7/25/50 #, • | 147,881 | 132,032 | ||||||
| Series 2020-7 A3 144A 3.00% 1/25/51 #, • | 454,024 | 389,095 | ||||||
| Series 2021-1 A3 144A 2.50% 6/25/51 #, • | 709,233 | 578,208 | ||||||
| Series 2021-10 A3 144A 2.50% 12/25/51 #, • | 1,493,271 | 1,204,708 | ||||||
| Series 2021-13 B1 144A 3.143% 4/25/52 #, • | 1,930,526 | 1,521,261 | ||||||
| Lehman Mortgage Trust | ||||||||
| Series 2007-10 2A2 6.50% 1/25/38 | 1,141,843 | 345,595 | ||||||
| Ludgate Funding | ||||||||
| Series 2006-1X A2A 4.524% (BP0003M + 0.19%) 12/1/60 • | GBP | 951,524 | 1,119,283 | |||||
| Series 2008-W1X A1 4.494% (BP0003M + 0.60%) 1/1/61 • | GBP | 417,610 | 485,660 | |||||
| Mansard Mortgages | ||||||||
| Series 2007-1X A2 4.167% (SONIA + 0.299%) 4/15/47 • | GBP | 445,375 | 524,967 | |||||
| MASTR Alternative Loan Trust | ||||||||
| Series 2004-3 8A1 7.00% 4/25/34 | 1,087 | 1,121 | ||||||
| Series 2004-5 6A1 7.00% 6/25/34 | 15,975 | 15,998 | ||||||
| MASTR ARM Trust | ||||||||
| Series 2004-4 4A1 3.522% 5/25/34 • | 32,745 | 29,722 | ||||||
| Merrill Lynch Mortgage Investors Trust | ||||||||
| Series 2004-A1 2A2 3.821% 2/25/34 • | 1,731 | 1,546 | ||||||
| Morgan Stanley Residential Mortgage Loan Trust | ||||||||
| Series 2020-1 A2A 144A 2.50% 12/25/50 #, • | 734,289 | 601,572 | ||||||
| Series 2021-1 A2 144A 2.50% 3/25/51 #, • | 655,045 | 536,650 | ||||||
| Series 2021-4 A3 144A 2.50% 7/25/51 #, • | 747,480 | 603,036 | ||||||
| New Residential Mortgage Loan Trust | ||||||||
| Series 2018-RPL1 A1 144A 3.50% 12/25/57 #, • | 120,072 | 113,090 | ||||||
| Series 2019-RPL3 A1 144A 2.75% 7/25/59 #, • | 2,929,021 | 2,728,472 | ||||||
| RALI Series Trust | ||||||||
| Series 2007-QA5 2A1 6.016% 9/25/37 • | 1,945,401 | 1,373,718 | ||||||
| Series 2007-QH8 A 3.677% 10/25/37 • | 1,105,133 | 935,705 | ||||||
| RCKT Mortgage Trust | ||||||||
| Series 2021-1 A1 144A 2.50% 3/25/51 #, • | 723,906 | 585,827 | ||||||
| Series 2021-6 A1 144A 2.50% 12/25/51 #, • | 1,521,641 | 1,231,400 | ||||||
70
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Non-Agency Collateralized Mortgage Obligations (continued) | ||||||||
| Reperforming Loan REMIC Trust | ||||||||
| Series 2006-R1 AF1 144A 5.185% (LIBOR01M + 0.34%, Cap 9.50%, Floor 0.34%) 1/25/36 #, • | 448,837 | $ | 395,722 | |||||
| RFMSI Trust | ||||||||
| Series 2004-S9 2A1 4.75% 12/25/19 | 28 | 32 | ||||||
| Sequoia Mortgage Trust | ||||||||
| Series 2004-5 A3 5.747% (LIBOR06M + 0.56%, Cap 11.50%, Floor 0.56%) 6/20/34 • | 79,941 | 71,131 | ||||||
| Series 2007-1 4A1 3.184% 9/20/46 • 222,935 149,402 Series 2015-1 B2 144A 3.913% 1/25/45 #, • | 122,632 | 116,076 | ||||||
| Series 2017-5 B2 144A 3.781% 8/25/47 #, • | 2,799,333 | 2,561,421 | ||||||
| Series 2020-4 A2 144A 2.50% 11/25/50 #, • | 576,433 | 472,248 | ||||||
| Structured ARM Loan Trust | ||||||||
| Series 2006-1 7A4 3.396% 2/25/36 • | 41,694 | 37,127 | ||||||
| Structured Asset Mortgage Investments II Trust | ||||||||
| Series 2005-AR5 A2 5.261% (LIBOR01M + 0.50%, Cap 11.00%, Floor 0.50%) 7/19/35 • | 107,474 | 100,972 | ||||||
| Trinity Square | ||||||||
| Series 2021-1A A 144A 4.713% (SONIA + 0.85%) 7/15/59 #, • GBP | 2,826,294 | 3,479,627 | ||||||
| WaMu Mortgage Pass Through Certificates Trust | ||||||||
| Series 2005-AR16 1A3 3.857% 12/25/35 ♦, • | 165,203 | 145,703 | ||||||
| Series 2007-HY1 3A3 3.713% 2/25/37 ♦, • | 109,601 | 96,234 | ||||||
| Series 2007-HY7 4A1 3.884% 7/25/37 ♦, • | 221,668 | 199,100 | ||||||
| Wells Fargo Mortgage-Backed Securities Trust | ||||||||
| Series 2006-AR11 A6 4.059% 8/25/36 • | 103,203 | 93,132 | ||||||
| Series 2020-1 A1 144A 3.00% 12/25/49 #, • | 137,274 | 117,643 | ||||||
| Total Non-Agency Collateralized Mortgage Obligations (cost $44,769,865) | 36,880,381 | |||||||
| Non-Agency Commercial Mortgage-Backed Securities — 4.69% | ||||||||
| BANK | ||||||||
| Series 2017-BNK5 B 3.896% 6/15/60 • | 605,000 | 539,371 | ||||||
| Series 2017-BNK7 A5 3.435% 9/15/60 | 710,000 | 658,688 | ||||||
| Series 2019-BN20 A3 3.011% 9/15/62 | 8,000,000 | 7,025,144 | ||||||
| Series 2019-BN21 A5 2.851% 10/17/52 | 2,100,000 | 1,820,931 | ||||||
| Series 2022-BNK39 A4 2.928% 2/15/55 | 2,784,000 | 2,344,802 | ||||||
| Series 2022-BNK39 B 3.239% 2/15/55 • | 1,353,000 | 1,064,728 | ||||||
| Series 2022-BNK39 C 3.27% 2/15/55 • | 797,000 | 555,693 | ||||||
| Series 2022-BNK40 B 3.394% 3/15/64 • | 1,800,000 | 1,406,925 | ||||||
| Series 2022-BNK41 A4 3.79% 4/15/65 • | 2,000,000 | 1,809,931 | ||||||
| Benchmark Mortgage Trust | ||||||||
| Series 2020-B17 A5 2.289% 3/15/53 | 3,460,000 | 2,861,063 | ||||||
| Series 2020-B20 A5 2.034% 10/15/53 | 13,250,000 | 10,587,619 | ||||||
| Series 2020-B21 A5 1.978% 12/17/53 | 1,300,000 | 1,035,848 | ||||||
| Series 2020-B22 A5 1.973% 1/15/54 | 2,050,000 | 1,625,692 | ||||||
| Series 2021-B24 A5 2.584% 3/15/54 | 6,790,000 | 5,589,868 | ||||||
| Series 2021-B29 A5 2.388% 9/15/54 | 6,000,000 | 4,853,642 | ||||||
| Series 2022-B32 B 3.202% 1/15/55 • | 1,800,000 | 1,398,870 | ||||||
| Series 2022-B32 C 3.454% 1/15/55 • | 2,200,000 | 1,557,914 | ||||||
| Series 2022-B33 B 3.615% 3/15/55 • | 900,000 | 734,983 | ||||||
71
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Non-Agency Commercial Mortgage-Backed Securities (continued) | ||||||||
| Benchmark Mortgage Trust | ||||||||
| Series 2022-B33 C 3.615% 3/15/55 • | 900,000 | $ | 665,105 | |||||
| BMO Mortgage Trust | ||||||||
| Series 2022-C1 A5 3.374% 2/15/55 • | 600,000 | 523,879 | ||||||
| Cantor Commercial Real Estate Lending | ||||||||
| Series 2019-CF1 A5 3.786% 5/15/52 | 2,340,000 | 2,154,048 | ||||||
| Series 2019-CF2 A5 2.874% 11/15/52 | 4,000,000 | 3,393,893 | ||||||
| Series 2019-CF3 A4 3.006% 1/15/53 | 800,000 | 690,684 | ||||||
| CD Mortgage Trust | ||||||||
| Series 2017-CD6 B 3.911% 11/13/50 • | 440,000 | 388,605 | ||||||
| Series 2019-CD8 A4 2.912% 8/15/57 | 8,775,000 | 7,638,624 | ||||||
| CFCRE Commercial Mortgage Trust | ||||||||
| Series 2016-C7 A3 3.839% 12/10/54 | 3,100,000 | 2,914,730 | ||||||
| Citigroup Commercial Mortgage Trust | ||||||||
| Series 2014-GC25 A4 3.635% 10/10/47 | 785,000 | 758,024 | ||||||
| Series 2015-GC27 A5 3.137% 2/10/48 | 1,400,000 | 1,341,114 | ||||||
| Series 2016-P3 A4 3.329% 4/15/49 | 1,305,000 | 1,226,754 | ||||||
| Series 2017-C4 A4 3.471% 10/12/50 | 635,000 | 582,003 | ||||||
| COMM Mortgage Trust | ||||||||
| Series 2014-CR20 AM 3.938% 11/10/47 | 2,225,000 | 2,118,910 | ||||||
| Series 2015-3BP A 144A 3.178% 2/10/35 # | 605,000 | 564,605 | ||||||
| Series 2015-CR23 A4 3.497% 5/10/48 | 780,000 | 747,443 | ||||||
| Series 2016-CR28 A4 3.762% 2/10/49 | 2,330,000 | 2,222,117 | ||||||
| DB-JPM Mortgage Trust | ||||||||
| Series 2016-C1 A4 3.276% 5/10/49 | 900,000 | 846,426 | ||||||
| GS Mortgage Securities Trust | ||||||||
| Series 2017-GS5 A4 3.674% 3/10/50 | 1,280,000 | 1,200,904 | ||||||
| Series 2017-GS6 A3 3.433% 5/10/50 | 1,935,000 | 1,794,546 | ||||||
| GS Mortgage Securities Trust | ||||||||
| Series 2019-GC39 A4 3.567% 5/10/52 | 1,250,000 | 1,140,142 | ||||||
| Series 2019-GC42 A4 3.001% 9/10/52 | 5,000,000 | 4,379,746 | ||||||
| Series 2020-GC47 A5 2.377% 5/12/53 | 3,716,000 | 3,076,646 | ||||||
| JPM-BB Commercial Mortgage Securities Trust | ||||||||
| Series 2015-C31 A3 3.801% 8/15/48 | 7,784,753 | 7,433,173 | ||||||
| JPM-DB Commercial Mortgage Securities Trust | ||||||||
| Series 2016-C2 A4 3.144% 6/15/49 | 1,640,000 | 1,533,541 | ||||||
| Series 2016-C4 A3 3.141% 12/15/49 | 1,065,000 | 983,533 | ||||||
| Series 2017-C7 A5 3.409% 10/15/50 | 2,395,000 | 2,219,904 | ||||||
| JPMorgan Chase Commercial Mortgage Securities Trust | ||||||||
| Series 2013-LC11 B 3.499% 4/15/46 | 355,000 | 311,262 | ||||||
| Series 2016-JP2 AS 3.056% 8/15/49 | 1,250,000 | 1,126,928 | ||||||
| Morgan Stanley Bank of America Merrill Lynch Trust | ||||||||
| Series 2015-C26 A5 3.531% 10/15/48 | 960,000 | 915,504 | ||||||
| Series 2015-C27 ASB 3.557% 12/15/47 | 1,100,300 | 1,069,805 | ||||||
| Series 2016-C29 A4 3.325% 5/15/49 | 1,445,000 | 1,359,651 | ||||||
| Morgan Stanley Capital I Trust | ||||||||
| Series 2019-L3 A4 3.127% 11/15/52 | 1,000,000 | 878,052 | ||||||
| Series 2020-HR8 A4 2.041% 7/15/53 | 4,415,000 | 3,560,663 | ||||||
72
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Non-Agency Commercial Mortgage-Backed Securities (continued) | ||||||||
| UBS-Barclays Commercial Mortgage Trust | ||||||||
| Series 2013-C5 B 144A 3.649% 3/10/46 #, • | 299,073 | $ | 290,088 | |||||
| VMC Finance | ||||||||
| Series 2021-FL4 A 144A 5.861% (LIBOR01M + 1.10%, Floor 1.10%) 6/16/36 #, • | 1,137,910 | 1,097,834 | ||||||
| Wells Fargo Commercial Mortgage Trust | ||||||||
| Series 2014-LC18 A5 3.405% 12/15/47 | 275,000 | 263,409 | ||||||
| Series 2015-NXS3 A4 3.617% 9/15/57 | 510,000 | 485,701 | ||||||
| Series 2016-BNK1 A3 2.652% 8/15/49 | 1,220,000 | 1,116,285 | ||||||
| Series 2020-C58 A4 2.092% 7/15/53 | 2,300,000 | 1,845,502 | ||||||
| Total Non-Agency Commercial Mortgage-Backed Securities
(cost $134,155,562) | 114,331,495 | |||||||
| Loan Agreements — 2.21% | ||||||||
| Amentum Government Services Holdings Tranche 3 8.76% - 9.03% (SOFR06M + 4.00%) 2/15/29 • | 3,443,975 | 3,377,248 | ||||||
| Applied Systems 9.399% (SOFR03M + 3.50%) 9/18/26 • | 826,291 | 826,119 | ||||||
| Applied Systems 2nd Lien 11.648% (SOFR03M + 5.50%) 9/17/27 • | 2,058,605 | 2,066,325 | ||||||
| Bausch & Lomb 8.357% (SOFR03M + 3.25%) 5/10/27 • | 507,522 | 494,239 | ||||||
| Berry Global Tranche Z 6.51% (LIBOR01M + 1.75%) 7/1/26 • | 608,920 | 607,778 | ||||||
| Calpine | ||||||||
| 6.85% (LIBOR01M + 2.00%) 4/5/26 • | 240,625 | 239,443 | ||||||
| 7.35% (LIBOR01M + 2.50%) 12/16/27 • | 253,001 | 252,228 | ||||||
| Castlelake Aviation One Designated Activity Company | ||||||||
| 7.616% (LIBOR03M + 2.75%) 10/22/26 • | 682,589 | 676,957 | ||||||
| 7.783% (SOFR01M + 2.75%) 10/22/27 • | 952,612 | 940,308 | ||||||
| CenturyLink Tranche B 7.172% (SOFR01M + 2.364%) 3/15/27 • | 973,652 | 648,290 | ||||||
| Charter Communications Operating Tranche B2 6.557% (SOFR01M + 1.75%) 2/1/27 • | 473,805 | 470,104 | ||||||
| Connect US Finco 8.14% (LIBOR01M + 3.50%) 12/11/26 • | 629,530 | 626,579 | ||||||
| Core & Main Tranche B-1 | ||||||||
| 7.392% (SOFR01M + 2.60%) • | 357,945 | 355,708 | ||||||
| 7.415% (LIBOR03M + 2.50%) 7/27/28 • | 170,919 | 169,850 | ||||||
| Delta Air Lines 8.558% (LIBOR03M + 3.75%) 10/20/27 • | 475,000 | 493,050 | ||||||
| Entegris Tranche B 7.37% - 7.64% (SOFR01M + 2.75%) 7/6/29 • | 1,295,000 | 1,296,011 | ||||||
| Epicor Software 2nd Lien 12.59% (LIBOR01M + 7.75%) 7/31/28 • | 735,000 | 733,163 | ||||||
| Epicor Software Tranche C 8.09% (LIBOR01M + 3.25%) 7/30/27 • | 781,955 | 770,063 | ||||||
| Frontier Communications Tranche B 8.625% (LIBOR01M + 3.75%) 5/1/28 • | 1,715,000 | 1,629,250 | ||||||
| Hamilton Projects Acquiror 9.659% (LIBOR03M + 4.50%) 6/17/27 • | 815,006 | 809,572 | ||||||
| Hexion Holdings 1st Lien 9.454% (SOFR03M + 4.65%) 3/15/29 • | 2,297,637 | 2,070,746 | ||||||
73
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Loan Agreements (continued) | ||||||||
| Hilton Grand Vacations Borrower 7.84% (LIBOR01M + 3.00%) 8/2/28 • | 985,000 | $ | 985,000 | |||||
| Hilton Worldwide Finance Tranche B-2 6.642% (SOFR01M + 1.75%) 6/22/26 • | 1,088,891 | 1,089,042 | ||||||
| Informatica 7.625% (LIBOR01M + 2.75%) 10/27/28 • | 628,650 | 625,245 | ||||||
| IRB Holding Tranche B 7.687% (SOFR01M + 3.10%) 12/15/27 • | 3,542,431 | 3,485,419 | ||||||
| LSF9 Atlantis Holdings Tranche B 12.148% (SOFR03M + 7.25%) 3/31/29 • | 2,057,250 | 2,014,391 | ||||||
| Mileage Plus Holdings 10.213% (LIBOR03M + 5.25%) 6/21/27 • | 850,000 | 883,941 | ||||||
| MPH Acquisition Holdings 9.203% (LIBOR03M + 4.25%) 9/1/28 • | 1,773,000 | 1,523,672 | ||||||
| Organon & Co. 8.00% (LIBOR03M + 3.00%) 6/2/28 • | 1,694,659 | 1,696,777 | ||||||
| Peraton Tranche B 1st Lien 8.59% (LIBOR01M + 3.75%) 2/1/28 • | 1,015,029 | 1,003,102 | ||||||
| PG&E Tranche B 7.875% (LIBOR01M + 3.00%) 6/23/25 • | 1,421,645 | 1,420,757 | ||||||
| Prestige Brands Tranche B5 6.84% (LIBOR01M + 2.00%) 7/3/28 • | 7,182 | 7,171 | ||||||
| RealPage 1st Lien 7.84% (LIBOR01M + 3.00%) 4/24/28 • | 985,000 | 957,639 | ||||||
| Ryan Specialty Group Tranche B-1 7.907% (SOFR01M + 3.10%) 9/1/27 • | 580,125 | 580,367 | ||||||
| Scientific Games International Tranche B TBD 4/13/29 X | 1,883,832 | 1,871,470 | ||||||
| Sinclair Television Group Tranche B-4 8.657% (SOFR01M + 3.85%) 4/21/29 • | 2,158,687 | 1,969,802 | ||||||
| Standard Industries 7.116% (LIBOR01M + 2.25%) 9/22/28 • | 2,450,942 | 2,443,283 | ||||||
| TK Elevator Midco Tranche B 8.602% (LIBOR03M + 3.50%) 7/30/27 • | 9 | 8 | ||||||
| UKG 1st Lien 8.032% (LIBOR03M + 3.25%) 5/4/26 • | 1,632,681 | 1,593,030 | ||||||
| United Airlines Tranche B 8.568% (LIBOR03M + 3.75%) 4/21/28 • | 294,737 | 293,570 | ||||||
| US Foods Tranche B 7.557% (LIBOR01M + 2.75%) 11/22/28 • | 1,206,250 | 1,205,936 | ||||||
| Vantage Specialty Chemicals 1st Lien 9.597% (SOFR01M + 4.75%) 10/26/26 • | 2,778,037 | 2,681,965 | ||||||
| Viasat 9.422% (SOFR01M + 4.614%) 3/2/29 • | 2,769,075 | 2,706,771 | ||||||
| Virgin Media Bristol 8.113% (SOFR01M + 3.35%) 2/28/31 • | 215,000 | 212,514 | ||||||
| Vistra Operations 6.46% - 6.59% (LIBOR01M + 1.75%) 12/31/25 • | 507,167 | 505,053 | ||||||
| Zayo Group Holdings 7.84% (LIBOR01M + 3.00%) 3/9/27 • | 2,954,377 | 2,401,663 | ||||||
| Total Loan Agreements (cost $55,204,230) |
53,710,619 | |||||||
| Sovereign Bonds — 4.78%∆ | ||||||||
| Albania — 0.01% | ||||||||
| Albania Government International Bond 144A 3.50% 6/16/27 # | EUR | 150,000 | 147,477 | |||||
| 147,477 | ||||||||
| Angola — 0.02% | ||||||||
| Angolan Government International Bonds | ||||||||
| 144A 8.25% 5/9/28 # | 200,000 | 177,429 | ||||||
| 8.25% 5/9/28 | 200,000 | 177,429 | ||||||
| 144A 8.75% 4/14/32 # | 200,000 | 169,500 | ||||||
| 524,358 | ||||||||
74
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Sovereign Bonds ∆(continued) | ||||||||
| Argentina — 0.02% | ||||||||
| Argentine Republic Government International Bonds | ||||||||
| 0.50% 7/9/30 ~ | 645,050 | $ | 188,470 | |||||
| 1.00% 7/9/29 | 31,833 | 8,986 | ||||||
| 1.50% 7/9/35 ~ | 674,580 | 177,031 | ||||||
| 374,487 | ||||||||
| Armenia — 0.01% | ||||||||
| Republic of Armenia International Bond 144A 3.60% 2/2/31 # | 200,000 | 154,842 | ||||||
| 154,842 | ||||||||
| Azerbaijan — 0.01% | ||||||||
| Republic of Azerbaijan International Bond 144A 3.50% 9/1/32 # | 319,000 | 272,780 | ||||||
| 272,780 | ||||||||
| Bahrain — 0.01% | ||||||||
| Bahrain Government International Bond 144A 7.375% 5/14/30 # | 300,000 | 310,791 | ||||||
| 310,791 | ||||||||
| Bermuda — 0.03% | ||||||||
| Bermuda Government International Bonds | ||||||||
| 144A 5.00% 7/15/32 # | 400,000 | 402,176 | ||||||
| 5.00% 7/15/32 | 255,000 | 256,387 | ||||||
| 658,563 | ||||||||
| Brazil — 0.02% | ||||||||
| Brazilian Government International Bonds | ||||||||
| 3.875% 6/12/30 | 242,000 | 217,272 | ||||||
| 4.75% 1/14/50 | 233,000 | 172,933 | ||||||
| 390,205 | ||||||||
| Chile — 0.02% | ||||||||
| Chile Government International Bonds | ||||||||
| 2.55% 1/27/32 | 258,000 | 220,885 | ||||||
| 3.10% 5/7/41 | 323,000 | 243,244 | ||||||
| 3.50% 1/25/50 | 200,000 | 150,207 | ||||||
| 614,336 | ||||||||
| Colombia — 0.03% | ||||||||
| Colombia Government International Bonds | ||||||||
| 3.00% 1/30/30 | 272,000 | 214,021 | ||||||
| 3.25% 4/22/32 | 300,000 | 223,988 | ||||||
| 4.125% 2/22/42 | 217,000 | 141,195 | ||||||
| Colombia Government International Bonds | ||||||||
| 5.00% 6/15/45 | 200,000 | 140,293 | ||||||
| 5.20% 5/15/49 | 200,000 | 140,073 | ||||||
| 859,570 | ||||||||
| Costa Rica — 0.01% | ||||||||
| Costa Rica Government International Bond | ||||||||
| 144A 5.625% 4/30/43 # | 200,000 | 175,090 | ||||||
| 175,090 | ||||||||
| Dominican Republic — 0.04% | ||||||||
| Dominican Republic International Bonds | ||||||||
| 144A 4.875% 9/23/32 # | 885,000 | 753,695 | ||||||
| 144A 5.50% 2/22/29 # | 200,000 | 188,866 | ||||||
| 942,561 | ||||||||
| Ecuador — 0.01% | ||||||||
| Ecuador Government International Bonds | ||||||||
| 144A 1.50% 7/31/40 #, ~ | 278,501 | 84,744 | ||||||
| 144A 2.50% 7/31/35 #, ~ | 328,384 | 110,849 | ||||||
| 144A 5.50% 7/31/30 #, ~ | 125,307 | 58,874 | ||||||
| 144A 6.61% 7/31/30 #, ^ | 35,470 | 10,774 | ||||||
| 265,241 | ||||||||
| Egypt — 0.03% | ||||||||
| Egypt Government International Bonds | ||||||||
| 144A 5.75% 5/29/24 # | 591,000 | 536,756 | ||||||
| 144A 8.70% 3/1/49 # | 359,000 | 211,011 | ||||||
| 747,767 | ||||||||
| El Salvador — 0.01% | ||||||||
| El Salvador Government International Bond 6.375% 1/18/27 | 275,000 | 155,048 | ||||||
| 155,048 | ||||||||
| Gabon — 0.01% | ||||||||
| Gabon Government International Bond 144A 6.625% 2/6/31 # | 200,000 | 153,090 | ||||||
| 153,090 | ||||||||
75
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Sovereign Bonds ∆(continued) | ||||||||
| Georgia — 0.01% | ||||||||
| Georgia Government International Bond 144A 2.75% 4/22/26 # | 200,000 | $ | 179,028 | |||||
| 179,028 | ||||||||
| Ghana — 0.00% | ||||||||
| Ghana Government International Bond 144A 7.75% 4/7/29 # | 230,000 | 81,155 | ||||||
| 81,155 | ||||||||
| Guatemala — 0.02% | ||||||||
| Guatemala Government Bonds | ||||||||
| 144A 4.875% 2/13/28 # | 400,000 | 389,931 | ||||||
| 144A 5.25% 8/10/29 # | 200,000 | 195,443 | ||||||
| 585,374 | ||||||||
| Honduras — 0.01% | ||||||||
| Honduras Government International Bond 6.25% 1/19/27 | 200,000 | 178,934 | ||||||
| 178,934 | ||||||||
| Hong Kong — 0.03% | ||||||||
| Airport Authority | ||||||||
| 144A 2.50% 1/12/32 # | 430,000 | 370,553 | ||||||
| 144A 3.25% 1/12/52 # | 425,000 | 328,547 | ||||||
| 699,100 | ||||||||
| Indonesia — 0.02% | ||||||||
| Indonesia Government International Bonds | ||||||||
| 144A 4.625% 4/15/43 # | 200,000 | 187,532 | ||||||
| 4.65% 9/20/32 | 200,000 | 199,587 | ||||||
| 387,119 | ||||||||
| Israel — 0.10% | ||||||||
| Israel Government International Bonds | ||||||||
| 2.75% 7/3/30 | 1,200,000 | 1,087,121 | ||||||
| 3.875% 7/3/50 | 200,000 | 167,512 | ||||||
| State of Israel | ||||||||
| 3.80% 5/13/60 | 1,600,000 | 1,246,371 | ||||||
| 2,501,004 | ||||||||
| Ivory Coast — 0.02% | ||||||||
| Ivory Coast Government International Bond 144A 6.125% 6/15/33 # | 590,000 | 512,385 | ||||||
| 512,385 | ||||||||
| Japan — 3.71% | ||||||||
| Japan Treasury Discount Bills | ||||||||
| 3.338% 4/17/23 ≠ | JPY | 5,010,000,000 | 37,735,461 | |||||
| 15.531% 4/24/23 ≠ | JPY | 7,000,000,000 | 52,727,390 | |||||
| 90,462,851 | ||||||||
| Jordan — 0.01% | ||||||||
| Jordan Government International Bond 144A 4.95% 7/7/25 # | 200,000 | 191,850 | ||||||
| 191,850 | ||||||||
| Kazakhstan — 0.01% | ||||||||
| Kazakhstan Government International Bond 144A 6.50% 7/21/45 # | 207,000 | 216,305 | ||||||
| 216,305 | ||||||||
| Kenya — 0.01% | ||||||||
| Republic of Kenya Government International Bond 144A 8.00% 5/22/32 # | 200,000 | 162,880 | ||||||
| 162,880 | ||||||||
| Lebanon — 0.00% | ||||||||
| Lebanon Government International Bond 6.25% 5/27/22 ‡ | 582,000 | 37,975 | ||||||
| 37,975 | ||||||||
| Mexico — 0.02% | ||||||||
| Mexico Government International Bonds | ||||||||
| 4.40% 2/12/52 | 225,000 | 176,366 | ||||||
| 4.875% 5/19/33 | 200,000 | 191,727 | ||||||
| 6.35% 2/9/35 | 200,000 | 212,879 | ||||||
| 580,972 | ||||||||
| Morocco — 0.01% | ||||||||
| Morocco Government International Bond 144A 2.375% 12/15/27 # | 300,000 | 264,803 | ||||||
| 264,803 | ||||||||
76
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Sovereign Bonds ∆(continued) | ||||||||
| Nigeria — 0.02% | ||||||||
| Nigeria Government International Bond 144A 7.875% 2/16/32 # | 537,000 | $ | 406,434 | |||||
| 406,434 | ||||||||
| Oman — 0.02% | ||||||||
| Oman Government International Bonds | ||||||||
| 144A 6.75% 1/17/48 # | 343,000 | 325,197 | ||||||
| 7.375% 10/28/32 | 200,000 | 218,711 | ||||||
| 543,908 | ||||||||
| Pakistan — 0.00% | ||||||||
| Pakistan Government International Bond 144A 7.375% 4/8/31 # | 200,000 | 72,000 | ||||||
| 72,000 | ||||||||
| Panama — 0.02% | ||||||||
| Panama Bonos del Tesoro 3.362% 6/30/31 | 200,000 | 166,750 | ||||||
| Panama Government International Bond 144A 3.75% 4/17/26 # | 363,000 | 344,578 | ||||||
| 511,328 | ||||||||
| Paraguay — 0.03% | ||||||||
| Paraguay Government International Bonds | ||||||||
| 144A 4.95% 4/28/31 # | 300,000 | 291,708 | ||||||
| 144A 5.40% 3/30/50 # | 403,000 | 348,484 | ||||||
| 640,192 | ||||||||
| Peru — 0.03% | ||||||||
| Peruvian Government International Bonds | ||||||||
| 2.392% 1/23/26 | 323,000 | 304,868 | ||||||
| 2.844% 6/20/30 | 512,000 | 448,671 | ||||||
| 5.625% 11/18/50 | 35,000 | 35,362 | ||||||
| 788,901 | ||||||||
| Qatar — 0.01% | ||||||||
| Qatar Government International Bond 144A 4.40% 4/16/50 # | 400,000 | 371,126 | ||||||
| 371,126 | ||||||||
| Republic of North Macedonia — 0.01% | ||||||||
| North Macedonia Government International Bond 144A 3.675% 6/3/26 # | EUR | 150,000 | 150,042 | |||||
| 150,042 | ||||||||
| Romania — 0.06% | ||||||||
| Romanian Government International Bonds | ||||||||
| 144A 1.75% 7/13/30 # | EUR | 1,800,000 | 1,439,557 | |||||
| 144A 2.625% 12/2/40 # | EUR | 123,000 | 77,603 | |||||
| 144A 3.375% 1/28/50 # | EUR | 109,000 | 71,747 | |||||
| 1,588,907 | ||||||||
| Saudi Arabia — 0.03% | ||||||||
| Saudi Government International Bonds | ||||||||
| 144A 3.25% 11/17/51 # | 400,000 | 281,995 | ||||||
| 144A 3.625% 3/4/28 # | 541,000 | 521,115 | ||||||
| 803,110 | ||||||||
| Senegal — 0.01% | ||||||||
| Senegal Government International Bonds | ||||||||
| 144A 5.375% 6/8/37 # | EUR | 200,000 | 139,914 | |||||
| 144A 6.75% 3/13/48 # | 210,000 | 146,328 | ||||||
| 286,242 | ||||||||
| Serbia — 0.02% | ||||||||
| Serbia International Bonds | ||||||||
| 144A 1.00% 9/23/28 # | EUR | 200,000 | 167,840 | |||||
| 144A 2.125% 12/1/30 # | 200,000 | 152,271 | ||||||
| 144A 3.125% 5/15/27 # | EUR | 100,000 | 98,109 | |||||
| 418,220 | ||||||||
| South Africa — 0.15% | ||||||||
| Republic of South Africa Government International Bonds | ||||||||
| 4.85% 9/30/29 | 3,200,000 | 2,879,520 | ||||||
| 5.65% 9/27/47 | 200,000 | 148,270 | ||||||
| 5.75% 9/30/49 | 542,000 | 399,430 | ||||||
77
Schedules of investments
Optimum Fixed Income Fund
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| Sovereign Bonds ∆(continued) | ||||||||
| South Africa (continued) | ||||||||
| Republic of South Africa Government International Bonds 5.875% 6/22/30 | 268,000 | $ | 251,953 | |||||
| 3,679,173 | ||||||||
| Sri Lanka — 0.01% | ||||||||
| Sri Lanka Government International Bond 144A 6.20% 5/11/27 # | 453,000 | 163,174 | ||||||
| 163,174 | ||||||||
| Trinidad and Tobago — 0.01% | ||||||||
| Trinidad & Tobago Government International Bond 144A 4.50% 6/26/30 # | 200,000 | 192,675 | ||||||
| 192,675 | ||||||||
| Turkey — 0.04% | ||||||||
| Hazine Mustesarligi Varlik Kiralama 144A 5.125% 6/22/26 # | 200,000 | 182,607 | ||||||
| Turkey Government International Bond 7.625% 4/26/29 | 500,000 | 477,029 | ||||||
| Turkiye Ihracat Kredi Bankasi 144A 5.75% 7/6/26 # | 350,000 | 320,186 | ||||||
| 979,822 | ||||||||
| Ukraine — 0.01% | ||||||||
| Ukraine Government International Bond 144A 7.75% 9/1/28 # | 804,000 | 150,476 | ||||||
| 150,476 | ||||||||
| Uruguay — 0.01% | ||||||||
| Uruguay Government International Bond 4.375% 1/23/31 | 232,000 | 230,967 | ||||||
| 230,967 | ||||||||
| Uzbekistan — 0.02% | ||||||||
| Republic of Uzbekistan International Bonds 144A 3.90% 10/19/31 # | 200,000 | 160,925 | ||||||
| Republic of Uzbekistan International Bonds 144A 5.375% 2/20/29 # | 448,000 | 411,053 | ||||||
| 571,978 | ||||||||
| Total Sovereign Bonds (cost $125,888,408) |
116,336,616 | |||||||
| Supranational Banks — 0.01% | ||||||||
| Banque Ouest Africaine de Developpement 144A 2.75% 1/22/33 # | EUR | 200,000 | 161,601 | |||||
| Total Supranational Banks (cost $240,998) |
161,601 | |||||||
| US Treasury Obligations — 15.20% | ||||||||
| US Treasury Bonds | ||||||||
| 1.375% 11/15/40 | 100,000 | 68,965 | ||||||
| 1.625% 11/15/50 | 13,500,000 | 8,665,312 | ||||||
| 1.75% 8/15/41 | 1,800,000 | 1,304,719 | ||||||
| 1.875% 2/15/41 | 52,800,000 | 39,535,030 | ||||||
| 1.875% 2/15/51 | 2,700,000 | 1,845,703 | ||||||
| 1.875% 11/15/51 | 5,100,000 | 3,475,072 | ||||||
| 2.00% 2/15/50 | 16,000,000 | 11,350,000 | ||||||
| 2.00% 8/15/51 | 5,000 | 3,519 | ||||||
| 2.25% 8/15/46 | 10,800,000 | 8,159,063 | ||||||
| 2.25% 8/15/49 | 850,000 | 639,691 | ||||||
| 2.25% 2/15/52 | 2,600,000 | 1,940,148 | ||||||
| 2.50% 2/15/45 | 37,100,000 | 29,632,901 | ||||||
| 2.75% 8/15/42 | 900,000 | 766,512 | ||||||
| 2.75% 11/15/42 | 1,400,000 | 1,188,387 | ||||||
| 2.875% 5/15/43 | 2,200,000 | 1,902,613 | ||||||
| 2.875% 8/15/45 | 16,700,000 | 14,244,252 | ||||||
| 3.00% 5/15/47 | 900,000 | 783,984 | ||||||
| 3.00% 8/15/48 | 3,770,000 | 3,294,627 | ||||||
| 3.00% 2/15/49 | 700,000 | 613,266 | ||||||
| 3.125% 5/15/48 | 1,490,000 | 1,330,873 | ||||||
| 3.625% 2/15/53 | 25,370,000 | 25,193,600 | ||||||
| 3.875% 2/15/43 | 17,525,000 | 17,685,189 | ||||||
| US Treasury Floating Rate Notes | ||||||||
| 4.871% (USBMMY3M + 0.14%) 10/31/24 • | 27,480,000 | 27,478,269 | ||||||
| 4.931% (USBMMY3M + 0.20%) 1/31/25 • | 5,925,000 | 5,929,028 | ||||||
| US Treasury Inflation Indexed Notes 0.625% 7/15/32 | 13,797,578 | 13,189,875 | ||||||
78
| Principal | ||||||||
| amount° | Value (US $) | |||||||
| US Treasury Obligations (continued) | ||||||||
| US Treasury Notes | ||||||||
| 0.50% 10/31/27 | 13,200,000 | $ | 11,458,219 | |||||
| 1.875% 8/31/24 ∞ | 2,170,000 | 2,096,974 | ||||||
| 2.00% 6/30/24 ∞ | 7,700,000 | 7,474,264 | ||||||
| 2.125% 3/31/24 ∞ | 2,010,000 | 1,961,729 | ||||||
| 2.125% 11/30/24 ∞ | 11,130,000 | 10,760,449 | ||||||
| 2.25% 11/15/24 ∞ | 11,030,000 | 10,687,251 | ||||||
| 2.375% 2/29/24 ∞ | 4,000,000 | 3,916,579 | ||||||
| 2.375% 8/15/24 ∞ | 1,820,000 | 1,772,154 | ||||||
| 2.375% 3/31/29 | 7,190,000 | 6,714,365 | ||||||
| 2.50% 1/31/24 ∞ | 2,790,000 | 2,739,106 | ||||||
| 2.625% 3/31/25 | 12,700,000 | 12,361,415 | ||||||
| 2.875% 11/30/23 ∞ | 2,500,000 | 2,470,099 | ||||||
| 3.50% 1/31/30 | 15,520,000 | 15,459,376 | ||||||
| 3.50% 2/15/33 | 5,360,000 | 5,368,794 | ||||||
| 3.625% 3/31/28 | 11,145,000 | 11,164,156 | ||||||
| 3.625% 3/31/30 | 325,000 | 326,574 | ||||||
| 3.875% 11/30/29 | 9,075,000 | 9,234,521 | ||||||
| 3.875% 12/31/29 | 820,000 | 834,991 | ||||||
| 4.00% 2/15/26 | 3,825,000 | 3,841,286 | ||||||
| 4.00% 10/31/29 | 595,000 | 609,503 | ||||||
| 4.125% 1/31/25 | 1,460,000 | 1,459,772 | ||||||
| 4.125% 11/15/32 | 21,665,000 | 22,768,561 | ||||||
| 4.375% 10/31/24 | 1,910,000 | 1,912,574 | ||||||
| 4.625% 2/28/25 | 565,000 | 570,540 | ||||||
| 4.625% 3/15/26 | 245,000 | 250,599 | ||||||
| US Treasury STRIP Principal 2.26% 5/15/44 ^ | 4,290,000 | 1,903,847 | ||||||
| Total US Treasury Obligations (cost $386,378,987) | 370,338,296 | |||||||
| Number of | ||||||||
| shares | ||||||||
| Common Stock — 0.02% | ||||||||
| Industrials — 0.02% | ||||||||
| Grupo Aeromexico =, † | 50,210 | 557,265 | ||||||
| Total Common Stock (cost $820,685) | 557,265 | |||||||
| Options Purchased — 0.22% | ||||||||
| Put Swaptions — 0.22% | ||||||||
| 30 yr IRS pay a fixed rate 2.06% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/25/23 (BOFA) | 15,500,000 | 3,355,545 | ||||||
| 30 yr IRS pay a fixed rate 2.102% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 9/15/23 (MS) | 4,800,000 | 1,010,195 | ||||||
| CDX.NA.HY.39.V1 5 yr strike price $100.50, expiration date 5/17/23 | 71,500,000 | 921,400 | ||||||
| Total Options Purchased (premium paid $2,110,435) | 5,287,140 | |||||||
| Number of | ||||||||
| shares | ||||||||
| Short-Term Investments — 26.95% | ||||||||
| Money Market Mutual Funds — 1.10% | ||||||||
| BlackRock Liquidity FedFund – Institutional Shares (seven-day effective yield 4.72%) | 6,736,775 | 6,736,775 | ||||||
| Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 4.72%) | 6,736,775 | 6,736,775 | ||||||
| Goldman Sachs Financial Square Government Fund – Institutional Shares (seven-day effective yield 4.84%) | 6,736,775 | 6,736,775 | ||||||
79
Schedules of investments
Optimum Fixed Income Fund
| Number of | ||||||||
| shares | Value (US $) | |||||||
| Short-Term Investments (continued) | ||||||||
| Money Market Mutual Funds (continued) | ||||||||
| Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class (seven-day effective yield 4.73%) | 6,736,775 | $ | 6,736,775 | |||||
| 26,947,100 | ||||||||
| Principal | ||||||||
| amount° | ||||||||
| Repurchase Agreements — 25.85% | ||||||||
| US Treasury repurchase agreement with Nomura Securities International 4.79%, dated 3/30/23, to be repurchased 4/3/23, repurchase price $314,325,418 (collateralized by US government obligations; 1.50% - 2.75%; market value $321,952,917) | 314,200,000 | 314,200,000 | ||||||
| US Treasury repurchase agreement with Nomura Securities International 4.79%, dated 3/31/23, to be repurchased 4/4/23, repurchase price $315,541,979 (collateralized by US government obligations; 1.00%; market value $324,652,039) | 315,500,000 | 315,500,000 | ||||||
| 629,700,000 | ||||||||
| Total Short-Term Investments (cost $656,647,100) | 656,647,100 | |||||||
| Total Value of Securities Before Options Written—128.26% (cost $3,310,762,923) | 3,124,839,149 | |||||||
| Options Written — (0.31%) | ||||||||
| Foreign Currency Call Option — (0.00%) | ||||||||
| USD vs MXN, strike price 20.50, expiration date 6/15/23, notional amount (53,300,000) (CITI) | (2,600,000 | ) | (7,583 | ) | ||||
| (7,583 | ) | |||||||
| Futures Call Options — (0.00%) | ||||||||
| US Treasury 10 yr Notes strike price $118, expiration date 4/21/23, notional amount (271,400,000) (Exchange-Traded) | (23 | ) | (4,313 | ) | ||||
| US Treasury 10 yr Notes strike price $119, expiration date 4/21/23, notional amount (487,900,000) (Exchange-Traded) | (41 | ) | (5,125 | ) | ||||
| (9,438 | ) | |||||||
| Futures Put Options — (0.00%) | ||||||||
| US Treasury 10 yr Notes strike price $112, expiration date 4/21/23, notional amount (459,200,000) (Exchange-Traded) | (41 | ) | (4,484 | ) | ||||
| US Treasury 10 yr Notes strike price $112.50, expiration date 4/21/23, notional amount (258,750,000) (Exchange-Traded) | (23 | ) | (3,594 | ) | ||||
| (8,078 | ) | |||||||
80
| Notional | ||||||||
| amount* | Value (US $) | |||||||
| Call Swaptions — (0.00%) | ||||||||
| 1 yr IRS pay a fixed rate 0.70% and receive a floating rate based on 3-month EURIBOR expiration date 4/26/23 (GS) | (4,200,000 | ) | $ | (0 | ) | |||
| 1 yr IRS pay a fixed rate 0.70% and receive a floating rate based on 3-month EURIBOR expiration date 4/28/23 (BNP) | (4,300,000 | ) | (0 | ) | ||||
| 1 yr IRS pay a fixed rate 2.841% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/27/23 (GS) | (1,800,000 | ) | (2,852 | ) | ||||
| 1 yr IRS pay a fixed rate 2.92% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/13/23 (DB) | (3,000,000 | ) | (4,599 | ) | ||||
| 1 yr IRS pay a fixed rate 2.92% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/13/23 (GS) | (2,600,000 | ) | (3,986 | ) | ||||
| 1 yr IRS pay a fixed rate 2.973% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/25/23 (GS) | (1,800,000 | ) | (3,189 | ) | ||||
| 1 yr IRS pay a fixed rate 3.018% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/20/23 (GS) | (1,700,000 | ) | (3,039 | ) | ||||
| 1 yr IRS pay a fixed rate 3.14% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/23/23 (GS) | (1,700,000 | ) | (3,483 | ) | ||||
| 1 yr IRS pay a fixed rate 3.19% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/23/23 (GS) | (1,700,000 | ) | (3,659 | ) | ||||
| 1 yr IRS pay a fixed rate 3.225% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/23/23 (GS) | (1,700,000 | ) | (3,787 | ) | ||||
| (28,594 | ) | |||||||
| Put Swaptions — (0.31%) | ||||||||
| 1 yr IRS pay a fixed rate 2.25% and receive a floating rate based on 3-month EURIBOR expiration date 4/26/23 (GS) | (4,200,000 | ) | (56,546 | ) | ||||
| 1 yr IRS pay a fixed rate 2.25% and receive a floating rate based on 3-month EURIBOR expiration date 4/28/23 (BNP) | (4,300,000 | ) | (58,018 | ) | ||||
| 1 yr IRS pay a fixed rate 2.841% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/27/23 (GS) | (1,800,000 | ) | (22,298 | ) | ||||
| 1 yr IRS pay a fixed rate 2.92% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/13/23 (DB) | (3,000,000 | ) | (36,334 | ) | ||||
81
Schedules of investments
Optimum Fixed Income Fund
| Notional | ||||||||
| amount* | Value (US $) | |||||||
| Put Swaptions (continued) | ||||||||
| 1 yr IRS pay a fixed rate 2.92% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/13/23 (GS) | (2,600,000 | ) | $ | (31,489 | ) | |||
| 1 yr IRS pay a fixed rate 2.973% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/25/23 (GS) | (1,800,000 | ) | (20,666 | ) | ||||
| 1 yr IRS pay a fixed rate 3.018% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/20/23 (GS) | (1,700,000 | ) | (19,000 | ) | ||||
| 1 yr IRS pay a fixed rate 3.14% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/23/23 (GS) | (1,700,000 | ) | (17,402 | ) | ||||
| 1 yr IRS pay a fixed rate 3.19% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/23/23 (GS) | (1,700,000 | ) | (16,771 | ) | ||||
| 1 yr IRS pay a fixed rate 3.225% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/23/23 (GS) | (1,700,000 | ) | (16,333 | ) | ||||
| 5 yr IRS pay a fixed rate 1.96% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 9/15/23 (MS) | (24,000,000 | ) | (1,639,531 | ) | ||||
| 5 yr IRS pay a fixed rate 2.00% and receive a floating rate based on 3-month USD-ICE LIBOR expiration date 10/25/23 (BOFA) | (77,500,000 | ) | (5,052,662 | ) | ||||
| CDX.NA.HY.39.V1 5 yr strike price $96.50, expiration date 5/17/23 | (71,500,000 | ) | (286,777 | ) | ||||
| CDX.NA.HY.39.V1 5 yr strike price $98.50, expiration date 5/17/23 | (37,500,000 | ) | (264,910 | ) | ||||
| (7,538,737 | ) | |||||||
| Total Options Written (premium received $2,220,730) | (7,592,430 | ) | ||||||
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| ≠ | The rate shown is the effective yield at the time of purchase. |
| ∆ | Securities have been classified by country of risk. Aggregate classification by business sector has been presented on page 37 in “Security type / country and sector allocations.” |
| X | This loan will settle after March 31, 2023, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected. |
| ~ | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Stated rate in effect at March 31, 2023. |
| ω | Perpetual security with no stated maturity date. |
| ‡ | Non-income producing security. Security is currently in default. |
| ∞ | Fully or partially pledged as collateral for futures, swap contracts, and reverse repurchase agreements. |
| † | Non-income producing security. |
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
| µ | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at March 31, 2023. Rate will reset at a future date. |
| ♦ | Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes. |
82
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2023, the aggregate value of Rule 144A securities was $461,047,431, which represents 18.92% of the Fund's net assets. See Note 10 in “Notes to financial statements." |
| ∑ | Interest only security. An interest only security is the interest only portion of a fixed income security, which is separated and sold individually from the principal portion of the security. |
| ^ | Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
| Ω | Principal only security. A principal only security is the principal only portion of a fixed income security which is separated and sold individually from the interest portion of the security. |
| • | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at March 31, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
| ψ | Perpetual security. Maturity date represents next call date. |
| * | Notional amount shown is stated in USD unless noted that the swap is denominated in another currency. |
The following foreign currency exchange contracts, futures contracts, and swap contracts, and reverse repurchase agreement were outstanding at March 31, 2023:1
Foreign Currency Exchange Contracts
| Currency to | Settlement | Unrealized | Unrealized | |||||||||||||||||
| Counterparty | Receive (Deliver) | In Exchange For | Date | Appreciation | Depreciation | |||||||||||||||
| BAML | CAD | (675,920 | ) | USD | 498,235 | 4/4/23 | $ | — | $ | (1,916 | ) | |||||||||
| BAML | CAD | (785,960 | ) | USD | 580,865 | 5/2/23 | — | (959 | ) | |||||||||||
| BAML | COP | 1,508,200,000 | USD | (311,998 | ) | 6/21/23 | 6,439 | — | ||||||||||||
| BAML | DKK | (6,073,429 | ) | USD | 866,059 | 4/3/23 | — | (18,244 | ) | |||||||||||
| BAML | DKK | (6,240,000 | ) | USD | 912,493 | 5/2/23 | 2,191 | — | ||||||||||||
| BAML | GBP | (8,210,000 | ) | USD | 9,839,939 | 4/4/23 | — | (288,752 | ) | |||||||||||
| BAML | JPY | (1,433,019 | ) | USD | 10,767 | 4/4/23 | — | (32 | ) | |||||||||||
| BAML | JPY | (5,010,000,000 | ) | USD | 39,247,482 | 4/17/23 | 1,412,706 | — | ||||||||||||
| BAML | JPY | (7,000,000,000 | ) | USD | 55,040,014 | 4/24/23 | 2,114,090 | — | ||||||||||||
| BAML | JPY | 1,726,891,892 | USD | (13,027,883 | ) | 5/2/23 | 45,780 | — | ||||||||||||
| BAML | PLN | (20,826,937 | ) | USD | 4,757,884 | 4/19/23 | — | (61,514 | ) | |||||||||||
| BAML | ZAR | (31,703,786 | ) | USD | 1,721,134 | 4/17/23 | — | (56,806 | ) | |||||||||||
| BAML | ZAR | 6,540,107 | USD | (356,917 | ) | 5/15/23 | 8,922 | — | ||||||||||||
| BAML | ZAR | (47,555,961 | ) | USD | 2,576,743 | 5/17/23 | — | (82,950 | ) | |||||||||||
| BAML | ZAR | (10,193,869 | ) | USD | 545,914 | 9/12/23 | — | (18,164 | ) | |||||||||||
| BNP | AUD | (2,765,623 | ) | USD | 1,846,966 | 4/4/23 | — | (1,982 | ) | |||||||||||
| BNP | AUD | 4,524,012 | USD | (3,024,312 | ) | 5/2/23 | 3,237 | — | ||||||||||||
| BNP | DKK | 11,521,413 | USD | (1,673,651 | ) | 4/3/23 | 3,891 | — | ||||||||||||
| BNP | DKK | (11,499,990 | ) | USD | 1,673,651 | 5/2/23 | — | (3,988 | ) | |||||||||||
| BNP | KRW | 21,169,444 | USD | (16,231 | ) | 4/14/23 | — | (15 | ) | |||||||||||
| BNP | KRW | (21,077,252 | ) | USD | 16,231 | 6/28/23 | 11 | — | ||||||||||||
| BNP | MXN | 70,512,102 | USD | (3,695,292 | ) | 6/21/23 | 154,480 | — | ||||||||||||
83
Schedules of investments
Optimum Fixed Income Fund
Foreign Currency Exchange Contracts
| Counterparty | Currency to Receive (Deliver) | In Exchange For | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||
| BNP | ZAR | 31,692,104 | USD | (1,751,099 | ) | 4/17/23 | $ | 26,185 | $ | — | ||||||||||
| BNP | ZAR | 5,919,846 | USD | (324,681 | ) | 4/18/23 | 7,273 | — | ||||||||||||
| CITI | DKK | (5,444,444 | ) | USD | 773,849 | 4/3/23 | — | (18,873 | ) | |||||||||||
| CITI | DKK | (7,985,108 | ) | USD | 1,165,939 | 5/2/23 | 1,058 | — | ||||||||||||
| CITI | GBP | 14,300,000 | USD | (17,698,043 | ) | 4/4/23 | — | (56,109 | ) | |||||||||||
| CITI | GBP | (13,633,000 | ) | USD | 16,902,175 | 5/2/23 | 73,290 | — | ||||||||||||
| CITI | INR | 24,892,974 | USD | (302,502 | ) | 4/19/23 | 203 | — | ||||||||||||
| CITI | JPY | (2,938,000 | ) | USD | 22,902 | 4/24/23 | 689 | — | ||||||||||||
| CITI | KRW | (127,397,766 | ) | USD | 103,187 | 4/14/23 | 5,599 | — | ||||||||||||
| CITI | MXN | (381,000 | ) | USD | 20,055 | 4/17/23 | — | (1,018 | ) | |||||||||||
| CITI | MXN | 60,612 | USD | (2,998 | ) | 5/9/23 | 339 | — | ||||||||||||
| CITI | ZAR | 10,804,000 | USD | (611,520 | ) | 9/12/23 | — | (13,680 | ) | |||||||||||
| DB | AUD | 2,765,623 | USD | (1,863,565 | ) | 4/4/23 | — | (14,618 | ) | |||||||||||
| DB | BRL | 37,152,329 | USD | (6,856,824 | ) | 7/5/23 | 341,440 | — | ||||||||||||
| DB | EUR | 85,642,000 | USD | (92,681,772 | ) | 4/4/23 | 217,185 | — | ||||||||||||
| DB | EUR | (85,069,000 | ) | USD | 92,209,351 | 5/2/23 | — | (214,332 | ) | |||||||||||
| DB | MXN | (14,888,000 | ) | USD | 792,598 | 6/21/23 | — | (20,246 | ) | |||||||||||
| DB | PLN | (76,415 | ) | USD | 17,297 | 4/19/23 | — | (385 | ) | |||||||||||
| DB | ZAR | (12,096,735 | ) | USD | 656,112 | 4/18/23 | — | (22,208 | ) | |||||||||||
| DB | ZAR | 13,778,423 | USD | (738,354 | ) | 5/15/23 | 32,381 | — | ||||||||||||
| JPMCB | EUR | (85,642,000 | ) | USD | 91,092,557 | 4/4/23 | — | (1,806,399 | ) | |||||||||||
| JPMCB | EUR | (1,001,000 | ) | USD | 1,093,607 | 4/28/23 | 6,322 | — | ||||||||||||
| JPMCB | GBP | (6,090,000 | ) | USD | 7,485,178 | 4/4/23 | — | (28,065 | ) | |||||||||||
| JPMCB | ZAR | 6,153,339 | USD | (336,491 | ) | 4/18/23 | 8,555 | — | ||||||||||||
| JPMCB | ZAR | 27,075,077 | USD | (1,480,297 | ) | 5/17/23 | 33,948 | — | ||||||||||||
| TD | EUR | (5,652,284 | ) | USD | 6,164,946 | 4/21/23 | 27,858 | — | ||||||||||||
| Total Foreign Currency Exchange Contracts | $ | 4,534,072 | $ | (2,731,255 | ) | |||||||||||||||
Futures Contracts
Exchange-Traded
| Contracts to Buy (Sell) | Notional Amount | Notional Cost (Proceeds) | Expiration Date | Value/ Unrealized Appreciation | Value/ Unrealized Depreciation | Variation Margin Due from (Due to) Brokers | ||||||||||||||||||
| (167) | Euro-Bobl | $ | (21,349,424 | ) | $ | (20,864,771 | ) | 6/8/23 | $ | — | $ | (484,653 | ) | $ | (51,854 | ) | ||||||||
| (131) | Euro-Bund | (19,298,721 | ) | (18,719,747 | ) | 6/8/23 | — | (578,974 | ) | (85,254 | ) | |||||||||||||
| (314) | Euro-Schatz | (35,992,635 | ) | (35,686,777 | ) | 6/8/23 | — | (305,858 | ) | (13,650 | ) | |||||||||||||
| (27) | Long 10 yr Gilt | (3,442,299 | ) | (3,350,011 | ) | 6/28/23 | — | (92,288 | ) | 1,746 | ||||||||||||||
| (69) | US Treasury 2 yr Notes | (14,245,266 | ) | (14,088,774 | ) | 6/30/23 | — | (156,492 | ) | (9,703 | ) | |||||||||||||
| 510 | US Treasury 2 yr Notes | 105,291,094 | 104,104,423 | 6/30/23 | 1,186,671 | — | 71,719 | |||||||||||||||||
| 2,443 | US Treasury 5 yr Notes | 267,527,586 | 262,035,144 | 6/30/23 | 5,492,442 | — | 530,825 | |||||||||||||||||
| (564) | US Treasury 10 yr Notes | (64,815,938 | ) | (63,136,356 | ) | 6/21/23 | — | (1,679,582 | ) | (233,110 | ) | |||||||||||||
| 412 | US Treasury 10 yr Notes | 47,347,813 | 45,897,418 | 6/21/23 | 1,450,395 | — | 188,737 | |||||||||||||||||
| (360) | US Treasury 10 yr Ultra Notes | (43,610,625 | ) | (42,065,793 | ) | 6/21/23 | — | (1,544,832 | ) | (196,877 | ) | |||||||||||||
| (2) | US Treasury Long Bonds | (262,313 | ) | (250,448 | ) | 6/21/23 | — | (11,865 | ) | (2,000 | ) | |||||||||||||
84
Futures Contracts
Exchange-Traded
| Contracts to Buy (Sell) | Notional Amount | Notional Cost (Proceeds) | Expiration Date | Value/ Unrealized Appreciation | Value/ Unrealized Depreciation | Variation Margin Due from (Due to) Brokers | ||||||||||||||||||
| 505 | US Treasury Long Bonds | $ | 66,233,906 | $ | 63,582,617 | 6/21/23 | $ | 2,651,289 | $ | — | $ | 505,000 | ||||||||||||
| (3) | US Treasury Ultra Bonds | (423,375 | ) | (402,839 | ) | 6/21/23 | — | (20,536 | ) | (4,031 | ) | |||||||||||||
| 29 | US Treasury Ultra Bonds | 4,092,625 | 3,894,460 | 6/21/23 | 198,165 | — | 38,969 | |||||||||||||||||
| Total Futures Contracts | $ | 280,948,546 | $ | 10,978,962 | $ | (4,875,080 | ) | $ | 740,517 | |||||||||||||||
Swap Contracts
CDS Contracts2
| Counterparty/ Reference Obligation/ Termination Date/ Payment Frequency | Notional Amount3 | Annual Protection Payments | Value | Upfront Payments Paid (Received) | Unrealized Appreciation4 | Unrealized Depreciation4 | Variation Margin Due from (Due to) Brokers | |||||||||||||||||||||
| Centrally Cleared: | ||||||||||||||||||||||||||||
| Protection Sold/Moody's Ratings: | ||||||||||||||||||||||||||||
| AT&T 2.45% 5/15/18 Baa2 6/20/24-Quarterly | 1,800,000 | 1.000% | $ | 9,557 | $ | 12,594 | $ | — | $ | (3,037 | ) | $ | (22,131 | ) | ||||||||||||||
| Boeing 2.60% 10/20/25 Baa3 12/20/26-Quarterly | 4,100,000 | 1.000% | 26,587 | (17,117 | ) | 43,704 | — | (14,453 | ) | |||||||||||||||||||
| Boeing 2.60% 10/30/25 Baa2 6/20/23-Quarterly | 1,400,000 | 1.000% | 1,796 | 444 | 1,352 | — | (4,795 | ) | ||||||||||||||||||||
| Boeing 2.60% 10/30/25 Baa2 6/26/26-Quarterly | 700,000 | 1.000% | 5,885 | (3,335 | ) | 9,220 | — | (7,213 | ) | |||||||||||||||||||
| British Telecom 2.70% 10/9/22 Baa1 12/20/28-Quarterly | EUR | 1,600,000 | 1.000% | (27,038 | ) | (66,791 | ) | 39,753 | — | 2,098 | ||||||||||||||||||
| British Telecom 5.75% 12/7/28 Baa2 12/20/24-Quarterly | EUR | 2,800,000 | 1.000% | 28,059 | 36,039 | — | (7,980 | ) | (48,295 | ) | ||||||||||||||||||
| CDX.ITRX, EUR395 6/20/28-Quarterly | EUR | 100,000 | 1.000% | 801 | 229 | 572 | — | 9,549 | ||||||||||||||||||||
| CDX.NA.HY.39.V16 12/20/27-Quarterly | 12,600,000 | 5.000% | 147,432 | (149,101 | ) | 296,533 | — | 71,919 | ||||||||||||||||||||
| CDX.NA.IG.357 12/20/25-Quarterly | 400,000 | 1.000% | 5,448 | 5,749 | — | (301 | ) | (191,536 | ) | |||||||||||||||||||
| CDX.NA.IG.367 6/20/26-Quarterly | 1,900,000 | 1.000% | 26,009 | 30,403 | — | (4,394 | ) | (381,191 | ) | |||||||||||||||||||
| CDX.NA.IG.377 12/20/26-Quarterly | 300,000 | 1.000% | 4,029 | 4,948 | — | (919 | ) | 343,929 | ||||||||||||||||||||
85
Schedules of investments
Optimum Fixed Income Fund
| Counterparty/ Reference Obligation/ Termination Date/ Payment Frequency | Notional Amount3 | Annual
Protection Payments | Value | Upfront Payments Paid (Received) | Unrealized Appreciation4 | Unrealized Depreciation4 | Variation
Margin Due from (Due to) Brokers | |||||||||||||||||||||
| Centrally Cleared: | ||||||||||||||||||||||||||||
| Protection Sold/Moody's Ratings (continued): | ||||||||||||||||||||||||||||
| General Electric 2.70% 10/9/22 Baa1 12/20/26-Quarterly | 1,200,000 | 1.000% | $ | 13,193 | $ | 9,674 | $ | 3,519 | $ | — | $ | 11,331 | ||||||||||||||||
| General Electric 2.70% 10/9/22 Baa1 6/20/26- Quarterly | 600,000 | 1.000% | 7,249 | 3,737 | 3,512 | — | 3,516 | |||||||||||||||||||||
| General Motors 5.70% 10/9/22 Baa1 12/20/26- Quarterly | 600,000 | 5.000% | 69,611 | 84,246 | — | (14,635 | ) | (1,141 | ) | |||||||||||||||||||
| Tesco 1.00% 6/25/19 Baa3 6/20/28-Quarterly | EUR | 2,700,000 | 1.000% | 2,235 | 623 | 1,612 | — | (21,219 | ) | |||||||||||||||||||
| Valeo 1.00% Baa3 6/20/26-Quarterly | EUR | 200,000 | 1.000% | (4,559 | ) | (2,402 | ) | — | (2,157 | ) | (187,991 | ) | ||||||||||||||||
| 316,294 | (50,060 | ) | 399,777 | (33,423 | ) | (437,623 | ) | |||||||||||||||||||||
| Over-The-Counter: | ||||||||||||||||||||||||||||
| Protection Purchased/Moody’s Ratings: | ||||||||||||||||||||||||||||
| JPMCB Mexico 10.375% 1/28/33 Baa2 6/22/26-Quarterly | 2,085,000 | 1.000% | (18,726 | ) | 10,060 | — | (28,786 | ) | — | |||||||||||||||||||
| JPMCB Republic of Brazil 4.25% 1/7/25 Ba2 12/20/26- Quarterly | 2,570,000 | 1.000% | 28,226 | 52,372 | — | (24,146 | ) | — | ||||||||||||||||||||
| Protection Sold/Moody's Ratings: | ||||||||||||||||||||||||||||
| DB CMBX.NA.AAA6 10/17/57-Monthly | 14,200,000 | 0.500% | (30,322 | ) | (795,138 | ) | 764,816 | — | — | |||||||||||||||||||
| JPMCB HOCHTIEF 1.00% 3/7/25 BBB 12/20/26-Quarterly | EUR | 1,100,000 | 5.000% | 158,577 | 193,204 | — | (34,627 | ) | — | |||||||||||||||||||
| JPMCB HOCHTIEF 5.00% 3/7/25 BBB 12/20/26-Quarterly | EUR | 1,100,000 | 5.000% | 158,577 | 191,673 | — | (33,096 | ) | — | |||||||||||||||||||
| JPMCB Republic of South Africa 5.50% 3/9/20 Baa3 12/20/23-Quarterly | 700,000 | 1.000% | 775 | (4,873 | ) | 5,648 | — | — | ||||||||||||||||||||
| 297,107 | (352,702 | ) | 770,464 | (120,655 | ) | — | ||||||||||||||||||||||
| Total CDS Contracts | $ | 613,401 | $ | (402,762 | ) | $ | 1,170,241 | $ | (154,078 | ) | $ | (437,623 | ) | |||||||||||||||
86
IRS Contracts9 | Notional Amount2 | Fixed/ Floating Interest Rate Paid (Received) | Value | Upfront Payments Paid (Received) | Unrealized Appreciation3 | Unrealized Depreciation3 | Variation Margin Due from (Due to) Brokers | |||||||||||||||||||
| Centrally Cleared: | ||||||||||||||||||||||||||
| 1 yr IRS10 11/4/23- (Semiannually/ Quarterly) | 156,100,000 | (1.27)%/5.193% | $ | (3,601,862 | ) | $ | — | $ | — | $ | (3,601,862 | ) | $ | (5,791,091 | ) | |||||||||||
| 1 yr IRS11 4/4/23- (Semiannually/ Quarterly) | EUR 66,200,000 | (2.10)%/3.038% | (978,333 | ) | — | — | (978,333 | ) | — | |||||||||||||||||
| 2 yr IRS12 8/10/24- (Semiannually/ Quarterly) | EUR 1,500,000 | (0.55)%/3.341% | (62,822 | ) | — | — | (62,822 | ) | (1,046 | ) | ||||||||||||||||
| 3 yr IRS13 1/2/25- (Quarterly/ Semiannually) | BRL 36,000,000 | 11.835%/(13.65)% | (88,194 | ) | — | — | (88,194 | ) | 121,571 | |||||||||||||||||
| 3 yr IRS13 1/2/25- (Quarterly/ Semiannually) | BRL 37,000,000 | 11.80%/(13.65)% | (96,380 | ) | — | — | (96,380 | ) | 119,329 | |||||||||||||||||
| 3 yr IRS13 1/2/25- (Quarterly/ Semiannually) | BRL 37,000,000 | 11.734%/(13.65)% | (107,189 | ) | — | — | (107,189 | ) | 108,778 | |||||||||||||||||
| 5 yr IRS10 2/18/26- (Quarterly/ Semiannually) | 42,100,000 | (0.64)%/5.193% | (3,877,281 | ) | (210,336 | ) | — | (3,666,945 | ) | (327,189 | ) | |||||||||||||||
| 5 yr IRS13 1/4/27- (Quarterly/ Semiannually) | BRL 43,000,000 | 11.115%/(13.65)% | (468,864 | ) | (214,157 | ) | — | (254,707 | ) | 178,339 | ||||||||||||||||
| 5 yr IRS13 1/4/27- (Quarterly/ Semiannually) | BRL 6,600,000 | 10.12%/(13.65)% | (135,844 | ) | — | — | (135,844 | ) | 27,089 | |||||||||||||||||
| 5 yr IRS12 4/11/27- (Annually/ Semiannually) | EUR 1,900,000 | (0.70)%/3.341% | (185,539 | ) | — | — | (185,539 | ) | 23,468 | |||||||||||||||||
| 5 yr IRS12 4/12/27- (Annually/ Semiannually) | EUR 3,800,000 | (0.65)%/3.341% | (378,746 | ) | — | — | (378,746 | ) | 51,930 | |||||||||||||||||
| 5 yr IRS12 5/13/27- (Annually/ Semiannually) | EUR 4,100,000 | (1.00)%/3.341% | (353,691 | ) | — | — | (353,691 | ) | 40,098 | |||||||||||||||||
| 5 yr IRS12 5/18/27- (Annually/ Semiannually) | EUR 2,000,000 | (1.00)%/3.341% | (172,753 | ) | — | — | (172,753 | ) | 18,695 | |||||||||||||||||
| 5 yr IRS14 9/16/25- (Annually/ Annually) | GBP 5,700,000 | 0.50%/(4.178)% | 593,005 | (31,179 | ) | 624,184 | — | (482,455 | ) | |||||||||||||||||
| 6 yr IRS13 1/4/27- (At Maturity/ At Maturity) | BRL 32,100,000 | 11.065%/(13.65)% | (358,333 | ) | — | — | (358,333 | ) | 252,006 | |||||||||||||||||
87
Schedules of investments
Optimum Fixed Income Fund
IRS Contracts9 | Notional Amount2 | Fixed/ Floating Interest Rate Paid (Received) | Value | Upfront Payments Paid (Received) | Unrealized Appreciation3 | Unrealized Depreciation3 | Variation Margin Due from (Due to) Brokers | |||||||||||||||||||
| Centrally Cleared (continued): | ||||||||||||||||||||||||||
| 6 yr IRS13 1/4/27- (At Maturity/ At Maturity) | BRL | 67,700,000 | 10.995%/(13.65)% | $ | (803,764 | ) | $ | — | $ | — | $ | (803,764 | ) | $ | 510,423 | |||||||||||
| 6 yr IRS13 1/4/27- (At Maturity/ At Maturity) | BRL | 32,400,000 | 11.098%/(13.65)% | (358,895 | ) | — | — | (358,895 | ) | 252,685 | ||||||||||||||||
| 10 yr IRS10 1/10/21- (Semiannually/ Quarterly) | 8,600,000 | (1.80)%/5.193% | (1,072,719 | ) | 106,028 | — | (1,178,747 | ) | 112,724 | |||||||||||||||||
| 10 yr IRS12 9/20/23- (Semiannually/ Quarterly) | EUR | 14,600,000 | (3.00)%/3.341% | 100,701 | (101,682 | ) | 202,383 | — | 127,064 | |||||||||||||||||
| 10 yr IRS14 1/10/21- (Semiannually/ Quarterly) | GBP | 27,000,000 | 3.75%/(4.178)% | (155,390 | ) | 123,426 | — | (278,816 | ) | (66,316 | ) | |||||||||||||||
| 10 yr IRS15 7/15/32- (Semiannually/ Quarterly) | 15,120,000 | (1.857)%/4.87% | (1,624,669 | ) | — | — | (1,624,669 | ) | (3,577,776 | ) | ||||||||||||||||
| 30 yr IRS15 12/21/52- (Annually/ Annually) | 17,000,000 | 1.75%/(4.87)% | 4,010,600 | 3,454,986 | 555,614 | — | (449,864 | ) | ||||||||||||||||||
| Total IRS Contracts | $ | (10,176,962 | ) | $ | 3,127,086 | $ | 1,382,181 | $ | (14,686,229 | ) | $ | (8,751,538 | ) | |||||||||||||
Reverse Repurchase Agreement16
| Counterparty | Interest Rate | Trade Date | Maturity Date | Face Value | Repurchase Price | |||||||||||
| JPMCB - HSBC Holdings | 0.600 | % | 2/14/23 | 2/15/23 | $ | (173,573 | ) | $ | — | |||||||
The type of underlying collateral and the remaining maturity of open reverse repurchase agreement in relation to the reverse repurchase agreement is as follows:
Remaining Contracted Maturity of the Agreement
| Reverse Repurchase Agreement | Up to 30 days | Total | ||||||
| JPMCB - HSBC Holdings | $ | (173,573 | ) | $ | (173,573 | ) | ||
The use of foreign currency exchange contracts and futures contracts, swap contracts, and reverse repurchase agreements involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The notional amounts and foreign currency exchange contracts presented above represent the Fund's total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) and variation margin are reflected in the Fund's net assets.
88
| 1 | See Note 7 in “Notes to financial statements." |
| 2 | A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded daily as unrealized appreciation or depreciation. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the CDS agreement. |
| 3 | Notional amount shown is stated in USD unless noted that the swap is denominated in another currency. |
| 4 | Unrealized appreciation (depreciation) does not include periodic interest payments (receipt) on swap contracts accrued daily in the amount of $(643,644). |
| 5 | Markit’s iTraxx Europe Subordinated Financials Index, or the ITRX EUR SUB FIN, is comprised of 25 Financial entities from the Markit iTraxx® Europe Index referencing subordinated debt. |
| 6 | Markit’s North America High Yield CDX Index, or the CDX.NA.HY Index, is composed of 100 liquid North American entities with high yield credit ratings that trade is in the CDS market. |
| 7 | Markit’s North America Investment Grade Index, or the CDX.NA.IG Index, is composed of 125 liquid North American entities with investment grade credit ratings that trade in the CDS market. |
| 8 | Markit’s CMBX Index, or the CMBX.NA Index, is a synthetic tradable index referencing a basket of 25 commercial mortgage-backed securities in North America. Credit-quality rating are measured on a scale that generally ranges from AAA (highest) to BB (lowest). US Agency and US Agency mortgage-backed securities appear under US Government. |
| 9 | An IRS agreement is an exchange of interest rates between counterparties. Periodic payments (receipt) on such contracts are accrued daily and recorded as unrealized appreciation (depreciation) on swap contracts. Upon periodic payment (receipt) or termination of the contract, such amounts are recorded as realized gains (losses) on swap contracts. |
| 10 | Rate resets based on LIBOR03M. |
| 11 | Rates resets based on EUR003M. |
| 12 | Rate resets based on EUR006M. |
| 13 | Rate resets based on Brazil CETIP Interbank Deposit. |
| 14 | Rate resets based on SONIA. |
| 15 | Rates resets based on SOFR. |
| 16 | See Note 1 in "Notes to financial statements." |
Summary of abbreviations:
12MTA – 12 Month Treasury Average
ABS – Asset-Backed Security
ARM – Adjustable Rate Mortgage
BAML – Bank of America Merrill Lynch
BB – Barclays Bank
BNP – BNP Paribas
BP0003M – 3 Month Sterling LIBOR Interest Rate
CDX.ITRX.EUR – Credit Default Swap Index iTraxx Europe
CDX.NA.HY – Credit Default Swap Index North America High Yield
CDX.NA.IG – Credit Default Swap Index North America Investment Grade
CITI – Citigroup
CLO – Collateralized Loan Obligation
CMBX.NA – Commercial Mortgage-Backed Index North America
DAC – Designated Activity Company
DB – Deutsche Bank
EUR003M – EURIBOR EUR 3 Month
EUR006M – EURIBOR EUR 6 Month
EURIBOR – Euro interbank offered rate
FREMF – Freddie Mac Multifamily
GNMA – Government National Mortgage Association
GS – Goldman Sachs
H15T1Y – US Treasury Yield Curve Rate T Note Constant Maturity 1 Year
ICE – Intercontinental Exchange, Inc.
IRS – Interest Rate Swap
JPM – JPMorgan
JPMCB – JPMorgan Chase Bank
JSC – Joint Stock Company
LIBOR – London Interbank Offered Rate
LIBOR01M – ICE LIBOR USD 1 Month
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LIBOR12M – ICE LIBOR USD 12 Month
MASTR – Mortgage Asset Securitization Transactions, Inc.
MS – Morgan Stanley
PJSC – Private Joint Stock Company
REMIC – Real Estate Mortgage Investment Conduit
89
Schedules of investments
Optimum Fixed Income Fund
Summary of abbreviations: (continued)
S.F. – Single Family
SOFR – Secured Overnight Financing Rate
SOFR01M – Secured Overnight Financing Rate 1 Month
SOFR03M – Secured Overnight Financing Rate 3 Month
SOFR06M – Secured Overnight Financing Rate 6 Month
SONIA – Sterling Overnight Indexed Average
STRIP – Separate Trading of Registered Interest and Principal
TBA – To be announced
TBD – To be determined
TD – TD Bank
USBMMY3M – US Treasury 3 Month Bill Money Market Yield
yr – Year
Summary of currencies:
AUD – Australian Dollar
BRL – Brazilian Real
CAD – Canadian Dollar
COP – Colombian Peso
DKK – Danish Krone
EUR – European Monetary Unit
GBP – British Pound Sterling
INR – Indian Rupee
JPY – Japanese Yen
KRW – South Korean Won
MXN – Mexican Peso
PLN – Polish Zloty
USD – US Dollar
ZAR – South African Rand
See accompanying notes, which are an integral part of the financial statements.
90
| Optimum International Fund | March 31, 2023 |
| Number of shares | Value (US $) | |||||||
| Common Stocks – 97.93%∆ | ||||||||
| Australia – 5.68% | ||||||||
| Accent Group | 89,033 | $ | 141,833 | |||||
| ANZ Group Holdings | 40,843 | 629,396 | ||||||
| Aristocrat Leisure | 54,183 | 1,354,711 | ||||||
| Base Resources | 470,327 | 62,878 | ||||||
| BHP Group | 167,682 | 5,301,087 | ||||||
| BlueScope Steel | 264,082 | 3,574,448 | ||||||
| Brambles | 122,016 | 1,100,127 | ||||||
| Cochlear | 14,307 | 2,277,680 | ||||||
| CSR | 23,001 | 73,340 | ||||||
| EBOS Group | 47 | 1,370 | ||||||
| Enero Group | 23,974 | 28,765 | ||||||
| Iluka Resources | 40,247 | 287,238 | ||||||
| Incitec Pivot | 415,878 | 876,349 | ||||||
| Lottery | 49,148 | 169,038 | ||||||
| Mineral Resources | 7,477 | 404,184 | ||||||
| New Hope | 130,039 | 494,435 | ||||||
| Nufarm | 262,892 | 1,009,286 | ||||||
| Orica | 3,118 | 32,210 | ||||||
| Orora | 42,589 | 98,004 | ||||||
| Pilbara Minerals | 576,919 | 1,534,837 | ||||||
| Pro Medicus | 689 | 29,716 | ||||||
| Qantas Airways † | 53,891 | 240,540 | ||||||
| Rio Tinto | 97,391 | 6,610,706 | ||||||
| South32 | 1,399,495 | 4,101,542 | ||||||
| Sunland Group | 15,703 | 14,590 | ||||||
| Wagners Holding † | 20,675 | 7,877 | ||||||
| Whitehaven Coal | 801,785 | 3,609,562 | ||||||
| WiseTech Global | 9,740 | 429,083 | ||||||
| 34,494,832 | ||||||||
| Austria – 0.42% | ||||||||
| ANDRITZ | 12,717 | 860,486 | ||||||
| AT&S Austria Technologie & Systemtechnik | 505 | 15,528 | ||||||
| OMV | 28,171 | 1,293,701 | ||||||
| Raiffeisen Bank International † | 5,440 | 83,510 | ||||||
| voestalpine | 7,371 | 250,634 | ||||||
| Zumtobel Group | 4,204 | 32,521 | ||||||
| 2,536,380 | ||||||||
| Belgium – 0.18% | ||||||||
| Ascencio | 175 | 9,229 | ||||||
| Solvay | 9,531 | 1,090,025 | ||||||
| 1,099,254 | ||||||||
| Brazil – 3.41% | ||||||||
| Gerdau ADR | 614,914 | 3,031,524 | ||||||
| MercadoLibre † | 12,458 | 16,420,391 | ||||||
| Unipar Carbocloro | 4,074 | 53,123 | ||||||
| Yara International | 27,570 | 1,198,209 | ||||||
| 20,703,247 | ||||||||
| Canada – 4.00% | ||||||||
| AbCellera Biologics † | 119,399 | 900,268 | ||||||
| Ag Growth International | 1,000 | 45,372 | ||||||
| Atco Class I | 22,233 | 712,640 | ||||||
| Bird Construction | 33,900 | 228,007 | ||||||
| Calfrac Well Services † | 8,609 | 25,926 | ||||||
| Canfor † | 6,200 | 99,640 | ||||||
| Celestica † | 54,897 | 707,995 | ||||||
| CES Energy Solutions | 22,773 | 45,158 | ||||||
| Constellation Software | 2,539 | 4,773,489 | ||||||
| Crew Energy † | 70,025 | 245,593 | ||||||
| DRI Healthcare Trust | 5,500 | 30,766 | ||||||
| Enerplus | 23,600 | 340,161 | ||||||
| Finning International | 58,800 | 1,465,758 | ||||||
| George Weston | 900 | 119,268 | ||||||
| Hammond Power Solutions | 1,900 | 53,535 | ||||||
| iA Financial | 8,700 | 551,418 | ||||||
| Leon's Furniture | 2,300 | 29,407 | ||||||
| Linamar | 1,191 | 57,307 | ||||||
| Lumine Group † | 7,843 | 85,365 | ||||||
| Major Drilling Group International † | 8,288 | 65,188 | ||||||
| Manulife Financial | 4,800 | 88,080 | ||||||
| Martinrea International | 25,979 | 280,070 | ||||||
| Methanex | 26,800 | 1,247,097 | ||||||
| Mullen Group | 7,400 | 80,872 | ||||||
| North American Construction Group | 4,814 | 80,394 | ||||||
| Pason Systems | 4,100 | 36,798 | ||||||
| Pet Valu Holdings | 9,526 | 265,304 | ||||||
| PHX Energy Services | 10,600 | 53,333 | ||||||
| Pizza Pizza Royalty | 15,000 | 152,830 | ||||||
| Power | 80,300 | 2,052,210 | ||||||
| Ritchie Bros Auctioneers | 33,873 | 1,906,711 | ||||||
| Russel Metals | 2,600 | 66,044 | ||||||
| Shawcor † | 2,809 | 25,856 | ||||||
| Shopify Class A † | 62,269 | 2,985,176 | ||||||
| Stella-Jones | 11,652 | 446,509 | ||||||
| Supremex | 1,400 | 6,329 | ||||||
| TFI International | 9,800 | 1,169,401 | ||||||
| TMX Group | 23,628 | 2,386,402 | ||||||
| Total Energy Services | 7,700 | 47,174 | ||||||
| Uni-Select † | 3,846 | 132,611 | ||||||
| Wajax | 1,700 | 31,006 | ||||||
| Western Forest Products | 65,984 | 54,682 | ||||||
| Winpak | 3,300 | 104,824 | ||||||
| 24,281,974 | ||||||||
91
Schedules of investments
Optimum International Fund
| Number of shares | Value (US $) | |||||||
| Common Stocks∆ (continued) | ||||||||
| China/Hong Kong – 12.18% | ||||||||
| 37 Interactive Entertainment Network Technology Group Class A | 1,106,600 | $ | 4,579,165 | |||||
| AIA Group | 1,028,600 | 10,787,297 | ||||||
| Alibaba Group Holding † | 238,800 | 3,024,520 | ||||||
| Asia Cement China Holdings | 199,746 | 85,752 | ||||||
| Autohome ADR | 7,968 | 266,689 | ||||||
| Build King Holdings | 73,424 | 9,994 | ||||||
| Canny Elevator Class A | 162,800 | 193,562 | ||||||
| China BlueChemical Class H | 500,000 | 129,087 | ||||||
| China CITIC Bank Class H | 230,000 | 115,704 | ||||||
| China Coal Energy Class H | 34,000 | 25,802 | ||||||
| China Construction Bank Class H | 9,884,000 | 6,396,875 | ||||||
| China Display Optoelectronics Technology Holdings † | 311,330 | 15,468 | ||||||
| China Pacific Insurance Group Class H | 490,600 | 1,300,627 | ||||||
| Chinese Universe Publishing and Media Group Class A | 575,900 | 1,040,436 | ||||||
| Chongqing Baiya Sanitary Products Class A | 57,000 | 150,383 | ||||||
| Chongqing Rural Commercial Bank Class H | 75,000 | 27,339 | ||||||
| Consun Pharmaceutical Group | 44,000 | 26,841 | ||||||
| Dah Sing Financial Holdings | 30,000 | 77,052 | ||||||
| Futu Holdings ADR † | 24,117 | 1,250,466 | ||||||
| Gaotu Techedu ADR † | 31,884 | 134,550 | ||||||
| G-bits Network Technology Xiamen Class A | 26,800 | 1,857,260 | ||||||
| Guangdong Homa Group Class A † | 134,600 | 122,750 | ||||||
| Hong Kong Exchanges & Clearing | 99,900 | 4,428,041 | ||||||
| Hundsun Technologies Class A | 142,952 | 1,107,798 | ||||||
| Industrial & Commercial Bank of China Class H | 6,401,000 | 3,401,745 | ||||||
| Inner Mongolia Yitai Coal Class H | 15,000 | 30,066 | ||||||
| iQIYI ADR † | 20,471 | 149,029 | ||||||
| Jiangsu Nhwa Pharmaceutical Class A | 82,500 | 316,345 | ||||||
| Jiutian Chemical Group | 1,258,400 | 69,328 | ||||||
| Johnson Electric Holdings | 38,000 | 43,143 | ||||||
| JOYY ADR | 1,688 | 52,632 | ||||||
| KingClean Electric Class A | 25,800 | 109,855 | ||||||
| Kingnet Network Class A † | 247,500 | 437,015 | ||||||
| Lansen Pharmaceutical Holdings † | 22,912 | 4,553 | ||||||
| Lenovo Group | 1,776,000 | 1,924,144 | ||||||
| Meituan Class B † | 190,990 | 3,464,982 | ||||||
| MINISO Group Holding ADR | 4,428 | 78,553 | ||||||
| Natural Food International Holding † | 344,000 | 21,254 | ||||||
| New China Life Insurance Class H | 282,100 | 669,993 | ||||||
| Orient Overseas International | 106,491 | 2,044,137 | ||||||
| Pacific Basin Shipping | 164,930 | 63,827 | ||||||
| PAX Global Technology | 104,968 | 88,145 | ||||||
| PetroChina Class H | 1,724,000 | 1,018,426 | ||||||
| Ping An Insurance Group Co. of China Class H | 436,500 | 2,823,812 | ||||||
| Prosus † | 37,630 | 2,946,582 | ||||||
| Qingdao Topscomm Communication Class A | 45,300 | 70,747 | ||||||
| Sinopec Engineering Group Class H | 34,001 | 16,900 | ||||||
| SITC International Holdings | 270,000 | 580,273 | ||||||
| TAL Education Group ADR † | 151,397 | 970,455 | ||||||
| Ten Pao Group Holdings | 28,685 | 4,824 | ||||||
| Tencent Holdings | 107,700 | 5,263,226 | ||||||
| Tencent Music Entertainment Group ADR † | 530,235 | 4,390,346 | ||||||
| Texhong Textile Group | 52,524 | 40,292 | ||||||
| Tian Di Science & Technology Class A | 1,574,000 | 1,165,445 | ||||||
| TravelSky Technology Class H | 219,000 | 408,075 | ||||||
| Uni-President China Holdings | 220,000 | 221,885 | ||||||
| United Laboratories International Holdings | 222,000 | 154,076 | ||||||
| Vipshop Holdings ADR † | 81,058 | 1,230,460 | ||||||
| Wangsu Science & Technology Class A | 303,500 | 317,614 | ||||||
| Weibo ADR † | 10,192 | 204,452 | ||||||
| Wuxi Biologics Cayman 144A † | 163,500 | 1,007,481 | ||||||
| Yue Yuen Industrial Holdings | 21,000 | 29,541 | ||||||
| Zhejiang Semir Garment Class A | 1,163,378 | 1,019,000 | ||||||
| 74,006,116 | ||||||||
| Denmark – 4.81% | ||||||||
| Ambu Class B † | 106,696 | 1,604,403 | ||||||
| AP Moller – Maersk Class B | 1,953 | 3,549,987 | ||||||
| Chr Hansen Holding | 45,075 | 3,428,876 | ||||||
| DSV | 30,940 | 5,999,191 | ||||||
| Genmab † | 4,436 | 1,676,831 | ||||||
| Novo Nordisk Class B | 53,036 | 8,423,251 | ||||||
| Novozymes Class B | 80,664 | 4,130,254 | ||||||
| Pandora | 4,192 | 402,383 | ||||||
| 29,215,176 | ||||||||
| Egypt – 0.00% | ||||||||
| ElSewedy Electric † | 13,000 | 6,360 | ||||||
| 6,360 | ||||||||
92
| Number of shares | Value (US $) | |||||||
| Common StocksΔ (continued) | ||||||||
| Finland – 0.78% | ||||||||
| Cargotec Class B | 2,701 | $ | 131,487 | |||||
| Kone Class B | 86,014 | 4,485,978 | ||||||
| Orion Class A | 1,418 | 65,441 | ||||||
| QT Group † | 2 | 146 | ||||||
| Vaisala Class A | 805 | 34,790 | ||||||
| 4,717,842 | ||||||||
| France – 6.67% | ||||||||
| ABC arbitrage | 4,110 | 27,056 | ||||||
| Alten | 1,283 | 204,868 | ||||||
| Aubay | 452 | 23,195 | ||||||
| Christian Dior | 131 | 117,031 | ||||||
| Cie de Saint-Gobain | 9,820 | 558,204 | ||||||
| Criteo ADR † | 714 | 22,495 | ||||||
| Danone | 91,560 | 5,697,195 | ||||||
| Dassault Aviation | 4,595 | 909,030 | ||||||
| Dassault Systemes | 132,084 | 5,448,603 | ||||||
| Edenred | 101,922 | 6,032,230 | ||||||
| Hermes International | 2,170 | 4,394,808 | ||||||
| Imerys | 1,594 | 68,863 | ||||||
| Ipsen | 7,085 | 780,144 | ||||||
| IPSOS | 19,649 | 1,217,885 | ||||||
| Kering | 8,733 | 5,697,655 | ||||||
| La Francaise des Jeux | 9,991 | 416,402 | ||||||
| Nexans | 20,047 | 1,997,447 | ||||||
| Rexel | 46,259 | 1,099,795 | ||||||
| Safran | 5,667 | 838,924 | ||||||
| Sartorius Stedim Biotech | 10,184 | 3,124,403 | ||||||
| Technip Energies | 6,718 | 143,326 | ||||||
| TFF Group | 734 | 32,159 | ||||||
| Thales | 11,153 | 1,648,936 | ||||||
| 40,500,654 | ||||||||
| Germany – 6.28% | ||||||||
| BioNTech ADR | 18,994 | 2,366,082 | ||||||
| Carl Zeiss Meditec | 12,154 | 1,692,950 | ||||||
| Deutsche Boerse | 35,785 | 6,967,704 | ||||||
| Deutsche Lufthansa † | 400,536 | 4,454,964 | ||||||
| GEA Group | 6,424 | 293,047 | ||||||
| HeidelbergCement | 5,466 | 399,112 | ||||||
| HOCHTIEF | 783 | 65,486 | ||||||
| Knorr-Bremse | 2,630 | 175,187 | ||||||
| Merck | 5,293 | 986,800 | ||||||
| Rational | 7,760 | 5,216,156 | ||||||
| SAP | 67,025 | 8,463,283 | ||||||
| Scout24 | 107,861 | 6,415,466 | ||||||
| Sixt | 419 | 55,812 | ||||||
| Trivago ADR † | 15,245 | 23,020 | ||||||
| Wacker Chemie | 3,475 | 564,718 | ||||||
| Westwing Group † | 2 | 17 | ||||||
| 38,139,804 | ||||||||
| Greece – 0.07% | ||||||||
| Motor Oil Hellas Corinth Refineries | 1,769 | 45,406 | ||||||
| National Bank of Greece † | 69,547 | 338,625 | ||||||
| Thrace Plastics Holding and Co. | 12,866 | 56,608 | ||||||
| 440,639 | ||||||||
| Hong Kong – 0.01% | ||||||||
| Perennial Energy Holdings | 226,875 | 32,698 | ||||||
| 32,698 | ||||||||
| Hungary – 0.37% | ||||||||
| MOL Hungarian Oil & Gas | 157,107 | 1,150,619 | ||||||
| OTP Bank | 38,678 | 1,104,238 | ||||||
| 2,254,857 | ||||||||
| India – 2.78% | ||||||||
| Acevector Limited =, †, p | 225,780 | 231,048 | ||||||
| Acevector Limited Series G =, †, p | 74,730 | 76,474 | ||||||
| AurionPro Solutions | 13,221 | 49,788 | ||||||
| CESC | 144,348 | 117,307 | ||||||
| Coal India | 60,078 | 156,611 | ||||||
| Deccan Cements | 4,562 | 23,121 | ||||||
| Gujarat Industries Power | 34,719 | 32,138 | ||||||
| Hindustan Aeronautics | 14,247 | 474,721 | ||||||
| Housing Development Finance | 253,878 | 8,141,377 | ||||||
| ICICI Lombard General Insurance | 187,673 | 2,445,959 | ||||||
| ITC | 884,311 | 4,137,590 | ||||||
| ITD Cementation India | 71,924 | 91,658 | ||||||
| Kirloskar Industries | 1,576 | 46,735 | ||||||
| Mazagon Dock Shipbuilders | 38,315 | 310,091 | ||||||
| Polycab India | 4,968 | 174,627 | ||||||
| Power Mech Projects | 2,546 | 76,657 | ||||||
| Ram Ratna Wires | 14,990 | 28,976 | ||||||
| Rupa & Co. | 325 | 810 | ||||||
| Savita Oil Technologies | 24,350 | 70,500 | ||||||
| Techno Electric & Engineering | 5,276 | 21,729 | ||||||
| Triveni Turbine | 22,086 | 89,840 | ||||||
| Wonderla Holidays † | 13,722 | 71,683 | ||||||
| Yasho Industries | 10 | 183 | ||||||
| 16,869,623 | ||||||||
| Indonesia – 1.07% | ||||||||
| ABM Investama | 525,200 | 111,288 | ||||||
| Adaro Energy Indonesia | 10,354,798 | 2,007,264 | ||||||
| Akasha Wira International † | 37,900 | 18,647 | ||||||
| Bank OCBC Nisp | 430,693 | 21,987 | ||||||
| Blue Bird | 479,300 | 55,865 | ||||||
| Bukit Asam | 2,408,900 | 641,605 | ||||||
| Bumitama Agri | 133,900 | 57,096 | ||||||
| Golden Agri-Resources | 174,300 | 37,444 | ||||||
| Hanjaya Mandala Sampoerna | 948,500 | 71,240 | ||||||
93
Schedules of investments
Optimum International Fund
| Number of shares | Value (US $) | |||||||
| Common Stocks∆ (continued) | ||||||||
| Indonesia (continued) | ||||||||
| Indo Tambangraya Megah | 77,319 | $ | 203,400 | |||||
| Indo-Rama Synthetics | 40,800 | 12,816 | ||||||
| Jaya Konstruksi Manggala Pratama † | 13,589,400 | 106,036 | ||||||
| Media Nusantara Citra † | 3,028,300 | 119,367 | ||||||
| Panin Financial | 10,077,600 | 247,431 | ||||||
| Perusahaan Gas Negara | 11,015,920 | 1,016,908 | ||||||
| Samudera Indonesia | 42,480 | 1,060 | ||||||
| United Tractors | 912,300 | 1,772,957 | ||||||
| 6,502,411 | ||||||||
| Iraq – 0.00% | ||||||||
| Gulf Keystone Petroleum | 9,433 | 16,966 | ||||||
| 16,966 | ||||||||
| Ireland – 3.71% | ||||||||
| CRH | 116,382 | 5,879,651 | ||||||
| CRH (London Stock Exchange) | 39,606 | 2,000,667 | ||||||
| Kingspan Group | 88,212 | 6,044,757 | ||||||
| Ryanair Holdings ADR † | 91,626 | 8,639,416 | ||||||
| 22,564,491 | ||||||||
| Israel – 1.68% | ||||||||
| Bank Leumi Le-Israel | 196,750 | 1,488,372 | ||||||
| Check Point Software Technologies † | 35,989 | 4,678,570 | ||||||
| FIBI Holdings | 4,934 | 185,556 | ||||||
| Isracard | 1,860 | 7,775 | ||||||
| Israel | 731 | 241,227 | ||||||
| Ituran Location and Control | 1,671 | 36,394 | ||||||
| Nice ADR † | 7,374 | 1,687,835 | ||||||
| Wix.com † | 18,793 | 1,875,541 | ||||||
| 10,201,270 | ||||||||
| Italy – 1.11% | ||||||||
| Banca IFIS | 17,439 | 263,814 | ||||||
| Banca Mediolanum | 72,253 | 654,032 | ||||||
| Buzzi Unicem | 2,986 | 72,475 | ||||||
| FinecoBank Banca Fineco | 308,385 | 4,724,799 | ||||||
| PRADA | 20,600 | 146,076 | ||||||
| Prysmian | 15,418 | 647,413 | ||||||
| Recordati Industria Chimica e Farmaceutica | 5,628 | 238,061 | ||||||
| 6,746,670 | ||||||||
| Japan – 11.15% | ||||||||
| A&A Material | 1,800 | 12,248 | ||||||
| A&D HOLON Holdings | 4,800 | 51,902 | ||||||
| Achilles | 3,900 | 39,899 | ||||||
| Advanced Media † | 6,500 | 87,667 | ||||||
| AGS | 3,000 | 15,756 | ||||||
| Aidma Holdings † | 2,800 | 84,699 | ||||||
| Akatsuki | 2,700 | 45,410 | ||||||
| Alfresa Holdings | 11,500 | 147,347 | ||||||
| Alps Alpine | 46,800 | 450,383 | ||||||
| Alps Logistics | 3,100 | 30,661 | ||||||
| Amano | 3,000 | 56,681 | ||||||
| Amiyaki Tei | 1,200 | 27,603 | ||||||
| Anest Iwata | 7,200 | 54,640 | ||||||
| Anritsu | 6,600 | 61,010 | ||||||
| Asia Pile Holdings | 7,200 | 40,036 | ||||||
| Avant Group | 2,000 | 21,665 | ||||||
| BIPROGY | 3,800 | 93,377 | ||||||
| BML | 10,600 | 247,456 | ||||||
| Brother Industries | 30,200 | 454,991 | ||||||
| Chiba Kogyo Bank | 10,300 | 41,841 | ||||||
| CKD | 4,500 | 73,479 | ||||||
| COLOPL | 5,200 | 23,520 | ||||||
| Computer Engineering & Consulting | 4,100 | 39,660 | ||||||
| Cosel | 6,400 | 55,006 | ||||||
| CTI Engineering | 2,000 | 45,666 | ||||||
| Dai Nippon Toryo | 4,200 | 26,900 | ||||||
| Daihatsu Diesel Manufacturing | 6,500 | 26,688 | ||||||
| Dai-ichi Life Holdings | 3,300 | 60,665 | ||||||
| Daiken | 4,200 | 72,365 | ||||||
| Daitron | 2,300 | 46,426 | ||||||
| Daiwa Industries | 4,700 | 49,216 | ||||||
| Densan System Holdings | 1,500 | 30,023 | ||||||
| Denso | 89,400 | 5,046,402 | ||||||
| Digital Arts | 1,000 | 38,800 | ||||||
| DMG Mori | 21,100 | 356,714 | ||||||
| Doshisha | 6,100 | 89,305 | ||||||
| Eizo | 13,400 | 414,795 | ||||||
| Elecom | 27,700 | 263,460 | ||||||
| Elematec | 9,800 | 137,419 | ||||||
| en Japan | 24,100 | 415,931 | ||||||
| Enigmo | 5,800 | 21,945 | ||||||
| Enplas | 5,300 | 196,132 | ||||||
| Fabrica Communications | 2,500 | 63,402 | ||||||
| FANUC | 148,000 | 5,344,604 | ||||||
| Fudo Tetra | 3,700 | 45,619 | ||||||
| Fuji | 4,300 | 72,811 | ||||||
| Fuji Seal International | 3,300 | 37,723 | ||||||
| Fujitsu | 3,261 | 440,660 | ||||||
| Furyu | 5,600 | 50,684 | ||||||
| Fuso Pharmaceutical Industries | 600 | 9,038 | ||||||
| Gakujo | 2,600 | 32,358 | ||||||
| Giken | 1,700 | 35,732 | ||||||
| H.U. Group Holdings | 7,600 | 153,036 | ||||||
| Hamakyorex | 1,400 | 34,145 | ||||||
| Heiwa | 8,100 | 160,704 | ||||||
94
| Number of shares | Value (US $) | |||||||
| Common StocksΔ (continued) | ||||||||
| Japan (continued) | ||||||||
| Hisamitsu Pharmaceutical | 1,700 | $ | 48,623 | |||||
| Hito Communications Holdings | 2,900 | 34,938 | ||||||
| Horiba | 7,300 | 438,124 | ||||||
| Hosokawa Micron | 1,900 | 41,662 | ||||||
| Ichiken | 3,100 | 41,636 | ||||||
| Ichikoh Industries | 9,200 | 32,623 | ||||||
| Ichiyoshi Securities | 2,800 | 12,800 | ||||||
| ID Holdings | 3,000 | 22,655 | ||||||
| Ines | 3,400 | 35,282 | ||||||
| Infocom | 4,500 | 79,741 | ||||||
| Insource | 17,000 | 173,919 | ||||||
| I-PEX | 9,200 | 97,930 | ||||||
| IR Japan Holdings | 14,400 | 255,396 | ||||||
| ISB | 3,100 | 28,168 | ||||||
| Ishihara Sangyo Kaisha | 10,800 | 91,294 | ||||||
| Itfor | 8,900 | 57,919 | ||||||
| IwaiCosmo Holdings | 3,200 | 32,389 | ||||||
| Iwaki | 2,700 | 26,532 | ||||||
| JAC Recruitment | 8,500 | 167,691 | ||||||
| Japan Exchange Group | 214,500 | 3,280,536 | ||||||
| Japan Lifeline | 5,900 | 40,932 | ||||||
| Japan Post Insurance | 80,100 | 1,248,427 | ||||||
| Japan System Techniques | 9,800 | 133,518 | ||||||
| JCU | 2,200 | 57,535 | ||||||
| Jeol | 16,900 | 546,261 | ||||||
| JP-Holdings | 14,500 | 39,671 | ||||||
| Kanamoto | 9,800 | 161,468 | ||||||
| Kenko Mayonnaise | 3,000 | 27,343 | ||||||
| Keyence | 8,200 | 4,018,892 | ||||||
| Kokuyo | 7,400 | 105,063 | ||||||
| Konoike Transport | 5,800 | 65,409 | ||||||
| Kyokuto Securities | 8,400 | 37,686 | ||||||
| Lifedrink | 2,400 | 58,199 | ||||||
| Macbee Planet † | 300 | 46,198 | ||||||
| Maruzen Showa Unyu | 1,500 | 36,521 | ||||||
| Marvelous | 9,000 | 44,869 | ||||||
| Megachips † | 1,800 | 44,659 | ||||||
| Meidensha | 2,800 | 40,753 | ||||||
| Meiko Network Japan | 11,000 | 53,555 | ||||||
| Meisei Industrial | 4,800 | 28,074 | ||||||
| Meitec | 2,700 | 48,342 | ||||||
| Melco Holdings | 3,200 | 79,075 | ||||||
| MIMAKI ENGINEERING | 3,900 | 19,783 | ||||||
| Mimasu Semiconductor Industry | 1,800 | 40,216 | ||||||
| Miroku Jyoho Service | 14,900 | 185,465 | ||||||
| Mitani Sangyo | 10,400 | 25,276 | ||||||
| Mitsuba | 8,000 | 31,681 | ||||||
| Mitsubishi Electric | 99,100 | 1,184,258 | ||||||
| Mitsubishi Kakoki Kaisha | 1,600 | 27,076 | ||||||
| Mitsubishi Logistics | 6,700 | 157,563 | ||||||
| Mitsubishi Research Institute | 6,400 | 246,504 | ||||||
| Mitsui-Soko Holdings | 1,900 | 56,440 | ||||||
| MIXI | 19,200 | 386,234 | ||||||
| Mizuho Medy | 1,600 | 28,196 | ||||||
| MonotaRO | 248,800 | 3,133,791 | ||||||
| MORESCO | 2,700 | 23,546 | ||||||
| Moriroku Holdings | 2,300 | 32,004 | ||||||
| Morito | 4,900 | 37,799 | ||||||
| MS&AD Insurance Group Holdings | 10,400 | 322,305 | ||||||
| Nachi-Fujikoshi | 2,400 | 71,780 | ||||||
| Naigai Trans Line | 1,600 | 27,842 | ||||||
| NEC | 7,300 | 281,818 | ||||||
| NEOJAPAN | 3,500 | 23,476 | ||||||
| Nidec | 51,000 | 2,654,092 | ||||||
| Nihon Kohden | 100 | 2,713 | ||||||
| Nihon M&A Center Holdings | 4,800 | 35,978 | ||||||
| Nihon Parkerizing | 6,200 | 46,604 | ||||||
| Nintendo | 75,500 | 2,932,541 | ||||||
| Nippon Chemical Industrial | 3,300 | 49,444 | ||||||
| NIPPON EXPRESS HOLDINGS | 3,000 | 181,021 | ||||||
| Nippon Kayaku | 4,300 | 38,960 | ||||||
| Nippon Pillar Packing | 4,100 | 116,561 | ||||||
| Nippon Shinyaku | 3,400 | 150,026 | ||||||
| Nisshinbo Holdings | 61,600 | 471,893 | ||||||
| Nisso | 5,800 | 31,204 | ||||||
| Nitto Kohki | 2,100 | 28,710 | ||||||
| Nitto Seiko | 4,900 | 20,984 | ||||||
| NS Solutions | 2,000 | 53,580 | ||||||
| Obara Group | 900 | 26,919 | ||||||
| OBIC Business Consultants | 600 | 22,730 | ||||||
| Ohara | 2,800 | 24,909 | ||||||
| Okabe | 5,100 | 29,604 | ||||||
| Okamura | 2,700 | 27,883 | ||||||
| Optorun | 2,500 | 42,023 | ||||||
| Oracle | 1,000 | 72,221 | ||||||
| Osaki Electric | 13,600 | 54,721 | ||||||
| Otsuka Holdings | 5,900 | 187,323 | ||||||
| PC Depot | 16,500 | 36,918 | ||||||
| Plus Alpha Consulting | 2,900 | 66,329 | ||||||
| Prestige International | 6,900 | 31,158 | ||||||
| Pronexus | 2,600 | 19,049 | ||||||
| QB Net Holdings | 2,500 | 27,053 | ||||||
| Rohm | 3,400 | 283,378 | ||||||
| Sakata INX | 4,000 | 31,352 | ||||||
| Sangetsu | 11,200 | 188,925 | ||||||
| Sanken Electric | 800 | 64,207 | ||||||
| Sankyu | 1,500 | 55,666 | ||||||
| Sanyo Shokai | 3,600 | 42,424 | ||||||
| SCREEN Holdings | 3,800 | 337,076 | ||||||
95
Schedules of investments
Optimum International Fund
| Number of shares | Value (US $) | |||||||
| Common StocksΔ (continued) | ||||||||
| Japan (continued) | ||||||||
| Seika | 1,900 | $ | 29,514 | |||||
| Seiko Epson | 7,500 | 107,160 | ||||||
| Sekisui Kasei | 7,100 | 22,363 | ||||||
| SERAKU | 2,300 | 28,099 | ||||||
| Seria | 1,600 | 31,729 | ||||||
| Shibaura Machine | 4,500 | 107,495 | ||||||
| Shibaura Mechatronics | 1,800 | 220,525 | ||||||
| Shibusawa Warehouse | 1,600 | 26,854 | ||||||
| Shibuya | 1,400 | 26,471 | ||||||
| Shimano | 22,300 | 3,866,503 | ||||||
| Shindengen Electric Manufacturing | 1,400 | 35,520 | ||||||
| Shinnihon | 4,000 | 28,301 | ||||||
| Shinwa | 1,600 | 25,570 | ||||||
| Shionogi & Co. | 9,800 | 442,034 | ||||||
| Shiseido | 101,800 | 4,772,715 | ||||||
| Shofu | 1,500 | 23,002 | ||||||
| SIGMAXYZ Holdings | 1,400 | 12,060 | ||||||
| SMC | 8,400 | 4,452,978 | ||||||
| SMK | 1,300 | 24,197 | ||||||
| SMS | 4,400 | 107,010 | ||||||
| Soda Nikka | 4,600 | 28,239 | ||||||
| Sodick | 12,100 | 69,631 | ||||||
| Soliton Systems | 16,300 | 134,934 | ||||||
| Sony Group | 69,500 | 6,330,295 | ||||||
| Space | 2,900 | 20,139 | ||||||
| SRA Holdings | 3,400 | 74,932 | ||||||
| Star Micronics | 10,200 | 139,187 | ||||||
| Step | 1,800 | 25,480 | ||||||
| SUMCO | 14,500 | 218,137 | ||||||
| Sumitomo Mitsui Construction | 17,700 | 51,343 | ||||||
| Sumitomo Seika Chemicals | 1,100 | 35,966 | ||||||
| Sun-Wa Technos | 100 | 1,471 | ||||||
| Suzuken | 8,800 | 222,285 | ||||||
| System Research | 2,100 | 33,246 | ||||||
| Tadano | 5,100 | 40,312 | ||||||
| Takaoka Toko | 1,800 | 32,035 | ||||||
| Takara Standard | 8,200 | 91,030 | ||||||
| Take And Give Needs | 5,400 | 54,833 | ||||||
| Teikoku Electric Manufacturing | 3,300 | 61,183 | ||||||
| T-Gaia | 30,550 | 385,122 | ||||||
| TOA ROAD | 1,200 | 33,944 | ||||||
| Tochigi Bank | 15,400 | 31,925 | ||||||
| Tokuyama | 8,700 | 138,587 | ||||||
| Tokyo Seimitsu | 3,300 | 128,109 | ||||||
| Tomy | 5,300 | 59,336 | ||||||
| Topcon | 18,500 | 250,334 | ||||||
| TOTO | 5,000 | 167,519 | ||||||
| Toyo Engineering † | 6,200 | 26,553 | ||||||
| Transcosmos † | 6,300 | 149,536 | ||||||
| Trusco Nakayama | 7,600 | 129,104 | ||||||
| Tsubakimoto Chain | 4,600 | 112,008 | ||||||
| TV Asahi Holdings | 7,100 | 80,918 | ||||||
| Ulvac | 3,900 | 170,374 | ||||||
| Unipres | 4,200 | 29,242 | ||||||
| Ushio | 6,200 | 78,244 | ||||||
| USS | 5,800 | 100,628 | ||||||
| V Technology | 1,400 | 29,754 | ||||||
| ValueCommerce | 5,900 | 76,102 | ||||||
| Vector | 15,100 | 174,154 | ||||||
| VINX | 2,800 | 28,418 | ||||||
| Visional † | 1,200 | 67,507 | ||||||
| Warabeya Nichiyo Holdings | 7,600 | 103,914 | ||||||
| Wowow | 2,000 | 18,922 | ||||||
| YAMADA Consulting Group | 1,600 | 18,516 | ||||||
| Yamaichi Electronics | 4,000 | 59,720 | ||||||
| Yamashin-Filter | 8,100 | 20,886 | ||||||
| Yushin Precision Equipment | 6,700 | 38,429 | ||||||
| Zenrin | 8,800 | 55,474 | ||||||
| ZIGExN | 18,200 | 66,520 | ||||||
| 67,752,422 | ||||||||
| Malaysia – 0.07% | ||||||||
| Fraser & Neave Holdings | 12,900 | 76,219 | ||||||
| Hap Seng Plantations Holdings | 6,900 | 2,752 | ||||||
| Hong Leong Financial Group | 60,700 | 247,396 | ||||||
| Lingkaran Trans Kota Holdings | 42,600 | 4,731 | ||||||
| Magni-Tech Industries | 35,100 | 14,099 | ||||||
| Sarawak Oil Palms | 66,900 | 36,321 | ||||||
| Ta Ann Holdings | 49,000 | 35,120 | ||||||
| United Plantations | 6,700 | 24,902 | ||||||
| 441,540 | ||||||||
| Mexico – 0.15% | ||||||||
| Alpek | 275,564 | 306,301 | ||||||
| Ternium ADR | 14,766 | 609,245 | ||||||
| 915,546 | ||||||||
| Netherlands – 5.24% | ||||||||
| ABN AMRO Bank CVA | 18,812 | 298,310 | ||||||
| Adyen † | 2,602 | 4,146,102 | ||||||
| ASML Holding | 10,613 | 7,232,209 | ||||||
| Brunel International | 4,916 | 68,355 | ||||||
| EXOR † | 40,299 | 3,323,038 | ||||||
| IMCD | 41,746 | 6,826,134 | ||||||
| TKH Group CVA | 1,206 | 62,856 | ||||||
| Topicus.com † | 52,262 | 3,734,713 | ||||||
| Van Lanschot Kempen CVA | 1,316 | 40,190 | ||||||
| Wolters Kluwer | 48,269 | 6,093,313 | ||||||
| 31,825,220 | ||||||||
96
| Number of shares | Value (US $) | |||||||
| Common StocksΔ (continued) | ||||||||
| New Zealand – 0.00% | ||||||||
| Mainfreight | 502 | $ | 22,028 | |||||
| 22,028 | ||||||||
| Norway – 1.11% | ||||||||
| Aker Carbon Capture † | 1,586,266 | 2,236,044 | ||||||
| Equinor | 139,264 | 3,959,056 | ||||||
| Hunter Group | 64,299 | 890 | ||||||
| Kongsberg Gruppen | 11,297 | 456,656 | ||||||
| Norsk Hydro | 7,975 | 59,521 | ||||||
| Western Bulk Chartering | 8,266 | 32,108 | ||||||
| 6,744,275 | ||||||||
| Panama – 0.56% | ||||||||
| Copa Holdings Class A † | 36,992 | 3,416,211 | ||||||
| 3,416,211 | ||||||||
| Philippines – 0.03% | ||||||||
| Ginebra San Miguel | 33,690 | 98,532 | ||||||
| LT Group | 368,500 | 67,301 | ||||||
| 165,833 | ||||||||
| Poland – 0.19% | ||||||||
| Asseco Poland | 1,852 | 32,692 | ||||||
| Bank Handlowy w Warszawie | 3,186 | 60,303 | ||||||
| Bank Millennium † | 1,256 | 1,303 | ||||||
| Grupa Azoty † | 26,566 | 221,302 | ||||||
| PGE Polska Grupa Energetyczna † | 94,135 | 137,091 | ||||||
| Powszechny Zaklad Ubezpieczen | 88,044 | 716,920 | ||||||
| Unimot † | 285 | 6,796 | ||||||
| 1,176,407 | ||||||||
| Portugal – 0.00% | ||||||||
| Altri | 177 | 912 | ||||||
| Sonae | 13,626 | 14,869 | ||||||
| 15,781 | ||||||||
| Republic of Korea – 2.56% | ||||||||
| BNK Financial Group | 55,107 | 276,445 | ||||||
| Coupang † | 176,385 | 2,822,160 | ||||||
| Crown Confectionery | 1,504 | 9,511 | ||||||
| Dohwa Engineering | 4,904 | 30,655 | ||||||
| e-Credible | 971 | 11,960 | ||||||
| Eugene Technology | 3,597 | 88,326 | ||||||
| Haesung Industrial | 1,711 | 12,763 | ||||||
| Hana Financial Group | 9,782 | 306,362 | ||||||
| Handsome | 3,352 | 67,195 | ||||||
| Hanwha Aerospace | 6,018 | 458,418 | ||||||
| InnoWireless | 1,384 | 30,491 | ||||||
| JB Financial Group | 46,074 | 309,651 | ||||||
| Keyang Electric Machinery | 7,515 | 12,626 | ||||||
| KT | 144,489 | 3,266,848 | ||||||
| LG Uplus | 9,621 | 80,155 | ||||||
| Protec | 2,623 | 62,582 | ||||||
| Sambo Corrugated Board | 3,798 | 29,205 | ||||||
| Samsung Electronics | 152,271 | 7,529,947 | ||||||
| Sangsangin | 14,436 | 55,309 | ||||||
| SeAH Holdings | 270 | 22,750 | ||||||
| SGC e Tec E&C | 691 | 13,707 | ||||||
| Taeyoung Engineering & Construction | 14,698 | 40,763 | ||||||
| 15,537,829 | ||||||||
| Russia – 0.00% | ||||||||
| Magnit PJSC =, † | 32,259 | 0 | ||||||
| Magnit PJSC GDR =, † | 1 | 0 | ||||||
| MMC Norilsk Nickel PJSC = | 10,095 | 0 | ||||||
| MMC Norilsk Nickel PJSC ADR =, † | 4 | 0 | ||||||
| 0 | ||||||||
| Singapore – 0.75% | ||||||||
| Genting Singapore | 1,412,800 | 1,192,413 | ||||||
| Riverstone Holdings | 135,900 | 61,420 | ||||||
| Samudera Shipping Line | 237,400 | 225,859 | ||||||
| Singapore Airlines | 33,800 | 145,795 | ||||||
| STMicroelectronics | 54,199 | 2,899,104 | ||||||
| 4,524,591 | ||||||||
| South Africa – 1.37% | ||||||||
| Anglo American | 107,826 | 3,586,456 | ||||||
| Astral Foods | 7,920 | 70,290 | ||||||
| Discovery † | 540,251 | 4,231,284 | ||||||
| Exxaro Resources | 10,769 | 112,558 | ||||||
| Sappi | 35,149 | 90,434 | ||||||
| Thungela Resources | 18,870 | 214,158 | ||||||
| Tiger Brands | 1,612 | 18,154 | ||||||
| 8,323,334 | ||||||||
| Spain – 1.87% | ||||||||
| Amadeus IT Group † | 83,681 | 5,613,620 | ||||||
| Banco Bilbao Vizcaya Argentaria | 97,389 | 696,269 | ||||||
| Cia de Distribucion Integral Logista Holdings | 5,763 | 143,801 | ||||||
| Industria de Diseno Textil | 140,377 | 4,715,996 | ||||||
| Vidrala | 1,446 | 158,369 | ||||||
| 11,328,055 | ||||||||
| Sweden – 2.45% | ||||||||
| Atlas Copco Class B | 615,683 | 7,082,044 | ||||||
| Careium † | 276 | 438 | ||||||
| Doro † | 416 | 567 | ||||||
| Epiroc Class B | 306,517 | 5,226,257 | ||||||
| Instalco | 115 | 555 | ||||||
| MIPS | 38,711 | 1,962,973 | ||||||
97
Schedules of investments
Optimum International Fund
| Number of shares | Value (US $) | |||||||
| Common StocksΔ (continued) | ||||||||
| Sweden (continued) | ||||||||
| Paradox Interactive | 4 | $ | 99 | |||||
| SKF | 31,299 | 616,494 | ||||||
| 14,889,427 | ||||||||
| Switzerland – 3.83% | ||||||||
| Belimo Holding | 1,049 | 507,010 | ||||||
| Cie Financiere Richemont Class A | 59,744 | 9,580,319 | ||||||
| Dufry † | 24,444 | 1,090,164 | ||||||
| Georg Fischer | 1,074 | 83,590 | ||||||
| Nestle | 63,226 | 7,709,182 | ||||||
| Swatch Group | 4,947 | 1,703,701 | ||||||
| Wizz Air Holdings † | 44,913 | 1,649,326 | ||||||
| Zehnder Group | 11,237 | 918,506 | ||||||
| 23,241,798 | ||||||||
| Taiwan – 4.84% | ||||||||
| Aaeon Technology | 8,000 | 25,503 | ||||||
| Acer | 292,000 | 270,644 | ||||||
| Alpha Networks | 67,000 | 77,003 | ||||||
| Asustek Computer | 161,000 | 1,444,495 | ||||||
| C Sun Manufacturing | 26,987 | 42,933 | ||||||
| Chicony Electronics | 63,000 | 197,208 | ||||||
| ChipMOS Technologies | 1,229,000 | 1,553,048 | ||||||
| eMemory Technology | 9,000 | 554,022 | ||||||
| Emerging Display Technologies | 104,000 | 89,290 | ||||||
| Ennoconn | 36,000 | 314,788 | ||||||
| Evergreen Marine Taiwan | 483,600 | 2,532,792 | ||||||
| Everlight Electronics | 59,000 | 77,872 | ||||||
| Formosan Rubber Group | 56,000 | 40,821 | ||||||
| Galaxy Software Services | 8,000 | 35,208 | ||||||
| Getac Holdings | 126,000 | 221,979 | ||||||
| Gigabyte Technology | 109,000 | 480,525 | ||||||
| Group Up Industrial | 17,000 | 63,765 | ||||||
| Innodisk | 7,000 | 72,364 | ||||||
| La Kaffa International | 26,000 | 152,647 | ||||||
| Machvision | 5,400 | 33,829 | ||||||
| Novatek Microelectronics | 211,000 | 2,998,423 | ||||||
| Phison Electronics | 16,000 | 206,699 | ||||||
| Pou Chen | 327,000 | 336,091 | ||||||
| Qisda | 261,000 | 272,401 | ||||||
| Realtek Semiconductor | 164,000 | 2,093,357 | ||||||
| Sea ADR † | 42,340 | 3,664,527 | ||||||
| Sigurd Microelectronics | 45,000 | 82,922 | ||||||
| Sitronix Technology | 20,000 | 156,939 | ||||||
| Sonix Technology | 20,000 | 35,447 | ||||||
| Taiwan Semiconductor Manufacturing | 626,000 | 10,970,413 | ||||||
| Topkey | 17,000 | 117,303 | ||||||
| Unitech Computer | 25,000 | 27,921 | ||||||
| Wistron | 120,000 | 165,199 | ||||||
| 29,408,378 | ||||||||
| Thailand – 1.22% | ||||||||
| Advanced Information Technology NVDR | 276,200 | 51,816 | ||||||
| Bangkok Bank NVDR | 682,500 | 3,027,460 | ||||||
| Banpu NVDR | 2,231,900 | 705,991 | ||||||
| Bumrungrad Hospital NVDR | 30,600 | 202,486 | ||||||
| Haad Thip NVDR | 28,200 | 27,660 | ||||||
| Jasmine Broadband Internet Infrastructure Fund | 242,200 | 50,289 | ||||||
| Krung Thai Bank NVDR | 1,660,030 | 801,604 | ||||||
| Minor International NVDR † | 164,800 | 155,799 | ||||||
| MK Restaurants Group NVDR | 37,000 | 55,470 | ||||||
| PTT Exploration & Production NVDR | 395,800 | 1,739,272 | ||||||
| Sabina NVDR | 115,400 | 91,263 | ||||||
| Sansiri NVDR | 7,860,300 | 400,817 | ||||||
| Somboon Advance Technology NVDR | 71,300 | 39,710 | ||||||
| Susco NVDR | 424,000 | 45,990 | ||||||
| 7,395,627 | ||||||||
| Turkey – 0.07% | ||||||||
| Anadolu Anonim Turk Sigorta Sirketi † | 37,019 | 33,526 | ||||||
| Dogus Otomotiv Servis ve Ticaret | 35,138 | 224,268 | ||||||
| Turkcell Iletisim Hizmetleri | 56,389 | 94,362 | ||||||
| Turkiye Petrol Rafinerileri | 2,157 | 59,714 | ||||||
| Vakko Tekstil ve Hazir Giyim Sanayi Isletmeleri | 7,711 | 25,506 | ||||||
| 437,376 | ||||||||
| Ukraine – 0.17% | ||||||||
| Ferrexpo | 709,394 | 1,032,331 | ||||||
| 1,032,331 | ||||||||
| United Arab Emirates – 0.66% | ||||||||
| Air Arabia PJSC | 714,303 | 412,767 | ||||||
| Dubai Islamic Bank PJSC | 31,694 | 45,248 | ||||||
| Emaar Properties PJSC | 2,080,589 | 3,179,144 | ||||||
| Emirates NBD Bank PJSC | 111,780 | 400,006 | ||||||
| 4,037,165 | ||||||||
| United Kingdom – 2.58% | ||||||||
| AG Barr | 8,562 | 53,172 | ||||||
| AJ Bell | 5,283 | 22,497 | ||||||
| Bloomsbury Publishing | 7,978 | 43,894 | ||||||
| BP ADR | 110,656 | 4,198,289 | ||||||
| Burberry Group | 8,184 | 262,050 | ||||||
| Coca-Cola Europacific Partners | 14,646 | 866,897 | ||||||
| DS Smith | 35,422 | 137,909 | ||||||
| Experian | 141,220 | 4,650,055 | ||||||
| Gem Diamonds | 5,047 | 1,626 | ||||||
| Greggs | 19 | 652 | ||||||
98
| Number of shares | Value (US $) | |||||||
| Common StocksΔ (continued) | ||||||||
| United Kingdom (continued) | ||||||||
| Howden Joinery Group | 44,362 | $ | 383,045 | |||||
| Investec | 312,725 | 1,739,109 | ||||||
| Just Eat Takeaway.com † | 24,259 | 464,962 | ||||||
| Man Group | 188,536 | 549,248 | ||||||
| ME GROUP INTERNATIONAL | 10,392 | 16,089 | ||||||
| NatWest Group | 2,150 | 7,016 | ||||||
| Oxford Nanopore Technologies † | 475,702 | 1,304,251 | ||||||
| Polar Capital Holdings | 20,918 | 116,765 | ||||||
| Rolls-Royce Holdings † | 185,648 | 341,938 | ||||||
| Smiths Group | 24,976 | 529,710 | ||||||
| 15,689,174 | ||||||||
| United States – 1.85% | ||||||||
| Atlassian Class A † | 9,339 | 1,598,557 | ||||||
| Ferguson | 3,391 | 453,546 | ||||||
| GSK | 87,080 | 1,538,645 | ||||||
| GSK ADR | 39,087 | 1,390,715 | ||||||
| JBS | 560,100 | 1,967,027 | ||||||
| Monday.com † | 7,121 | 1,016,523 | ||||||
| QIAGEN † | 7,109 | 326,516 | ||||||
| Spotify Technology † | 21,472 | 2,869,089 | ||||||
| Viemed Healthcare † | 6,348 | 61,390 | ||||||
| 11,222,008 | ||||||||
| Total Common Stocks (cost $630,842,857) | 594,873,620 | |||||||
| Preferred Stocks – 0.46%∆ | ||||||||
| Brazil – 0.44% | ||||||||
| Petroleo Brasileiro 42.97% ω | 579,300 | 2,674,510 | ||||||
| 2,674,510 | ||||||||
| Germany – 0.02% | ||||||||
| FUCHS PETROLUB 2.76% ω | 1,821 | 74,250 | ||||||
| Villeroy & Boch 4.55% ω | 658 | 15,485 | ||||||
| 89,735 | ||||||||
| Total Preferred Stocks (cost $3,181,279) | 2,764,245 | |||||||
| Exchange-Traded Funds – 0.38% | ||||||||
| iShares MSCI Canada ETF | 4,222 | 144,308 | ||||||
| iShares MSCI EAFE ETF | 20,388 | 1,458,150 | ||||||
| iShares MSCI Emerging Markets ETF | 17,600 | 694,496 | ||||||
| Total Exchange-Traded Funds (cost $2,278,186) | 2,296,954 | |||||||
| Short-Term Investments – 0.58% | ||||||||
| Money Market Mutual Funds – 0.58% | ||||||||
| BlackRock Liquidity FedFund – Institutional Shares (seven-day effective yield 4.72%) | 889,013 | 889,013 | ||||||
| Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 4.72%) | 889,013 | 889,013 | ||||||
| Goldman Sachs Financial Square Government Fund – Institutional Shares (seven-day effective yield 4.84%) | 889,012 | 889,012 | ||||||
| Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class (seven-day effective yield 4.73%) | 889,012 | 889,012 | ||||||
| Total Short-Term Investments (cost $3,556,050) | 3,556,050 | |||||||
| Total Value of Securities–99.35% (cost $639,858,372) | $ | 603,490,869 | ||||||
| ∆ | Securities have been classified by country of risk. Aggregate classification by business sector has been presented on page 38 in “Security type / country and sector allocations.” |
| † | Non-income producing security. |
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
| p | Restricted security. These investments are in securities not registered under the Securities Act of 1933, as amended, and have certain restrictions on resale which may limit their liquidity. At March 31, 2023, the aggregate value of restricted securities was $307,522, which represented 0.05% of the Fund’s net assets. See Note 8 in “Notes to financial statements” and the table below, for additional details on restricted securities. |
| ω | Perpetual security with no stated maturity date. |
Restricted Securities
| Investments | Date of Acquisition | Cost | Value | |||||||
| Acevector Limited | 5/7/14 | $ | 999,482 | $ | 231,048 | |||||
| Acevector Limited Series G | 10/29/14 | 396,443 | 76,474 | |||||||
| Total | $ | 1,395,925 | $ | 307,522 | ||||||
Summary of abbreviations:
ADR – American Depositary Receipt
CVA – Certified Dutch Certificate
99
Schedules of investments
Optimum International Fund
Summary of abbreviations: (continued)
EAFE – Europe, Australasia, and Far East
ETF – Exchange-Traded Fund
GDR – Global Depositary Receipt
MSCI – Morgan Stanley Capital International
NVDR – Non-Voting Depositary Receipt
PJSC – Private Joint Stock Company
See accompanying notes, which are an integral part of the financial statements.
100
| Optimum Large Cap Growth Fund | March 31, 2023 |
| Number of shares | Value (US $) | |||||||
| Common Stocks — 99.12% u | ||||||||
| Communication Services — 6.93% | ||||||||
| Alphabet Class A † | 452,779 | $ | 46,966,766 | |||||
| Alphabet Class C † | 449,187 | 46,715,448 | ||||||
| Meta Platforms Class A † | 42,855 | 9,082,689 | ||||||
| Netflix † | 39,468 | 13,635,404 | ||||||
| Trade Desk Class A † | 30,900 | 1,882,119 | ||||||
| TripAdvisor † | 45,317 | 899,995 | ||||||
| Walt Disney † | 41,708 | 4,176,222 | ||||||
| 123,358,643 | ||||||||
| Consumer Discretionary — 15.53% | ||||||||
| Airbnb Class A † | 25,453 | 3,166,353 | ||||||
| Amazon.com † | 780,317 | 80,598,943 | ||||||
| AutoZone † | 1,400 | 3,441,410 | ||||||
| Booking Holdings † | 3,300 | 8,752,953 | ||||||
| Boyd Gaming | 8,600 | 551,432 | ||||||
| Chipotle Mexican Grill † | 12,722 | 21,732,866 | ||||||
| Columbia Sportswear | 14,700 | 1,326,528 | ||||||
| Expedia Group † | 4,480 | 434,695 | ||||||
| H&R Block | 137,200 | 4,836,300 | ||||||
| Hilton Worldwide Holdings | 3,100 | 436,697 | ||||||
| Home Depot | 13,902 | 4,102,758 | ||||||
| Lowe's | 45,264 | 9,051,442 | ||||||
| Lululemon Athletica † | 40,496 | 14,748,238 | ||||||
| Magic Leap Class A =, † | 2,058 | 715 | ||||||
| McDonald's | 16,500 | 4,613,565 | ||||||
| NIKE Class B | 167,638 | 20,559,124 | ||||||
| O'Reilly Automotive † | 3,000 | 2,546,940 | ||||||
| Pool | 13,268 | 4,543,494 | ||||||
| PulteGroup | 32,197 | 1,876,441 | ||||||
| Six Flags Entertainment † | 30,187 | 806,295 | ||||||
| Sonos † | 105,631 | 2,072,480 | ||||||
| Starbucks | 43,500 | 4,529,655 | ||||||
| Tesla † | 247,409 | 51,327,471 | ||||||
| TJX | 46,654 | 3,655,808 | ||||||
| Toll Brothers | 124,300 | 7,461,729 | ||||||
| TopBuild † | 3,037 | 632,121 | ||||||
| Travel + Leisure | 90,000 | 3,528,000 | ||||||
| Ulta Beauty † | 9,900 | 5,402,133 | ||||||
| Wendy's | 68,482 | 1,491,538 | ||||||
| Wingstop | 44,090 | 8,094,042 | ||||||
| 276,322,166 | ||||||||
| Consumer Staples — 5.01% | ||||||||
| Altria Group | 73,000 | 3,257,260 | ||||||
| Brown-Forman Class B | 50,503 | 3,245,828 | ||||||
| Coca-Cola | 175,491 | 10,885,707 | ||||||
| Constellation Brands Class A | 64,155 | 14,491,973 | ||||||
| Costco Wholesale | 54,579 | 27,118,668 | ||||||
| Estee Lauder Class A | 8,494 | 2,093,431 | ||||||
| Hershey | 19,300 | 4,910,113 | ||||||
| Lamb Weston Holdings | 41,259 | 4,312,390 | ||||||
| Monster Beverage † | 31,600 | 1,706,716 | ||||||
| PepsiCo | 61,186 | 11,154,208 | ||||||
| Procter & Gamble | 27,900 | 4,148,451 | ||||||
| Sysco | 22,815 | 1,762,002 | ||||||
| 89,086,747 | ||||||||
| Energy — 1.05% | ||||||||
| EOG Resources | 112,629 | 12,910,662 | ||||||
| PDC Energy | 23,439 | 1,504,315 | ||||||
| Schlumberger | 88,097 | 4,325,563 | ||||||
| 18,740,540 | ||||||||
| Financials — 9.61% | ||||||||
| Adyen #, † | 2,831 | 4,510,997 | ||||||
| American Express | 10,600 | 1,748,470 | ||||||
| Arch Capital Group † | 69,805 | 4,737,665 | ||||||
| Block † | 51,938 | 3,565,544 | ||||||
| Everest Re Group | 13,054 | 4,673,593 | ||||||
| FleetCor Technologies † | 985 | 207,687 | ||||||
| MarketAxess Holdings | 6,129 | 2,398,216 | ||||||
| Marsh & McLennan | 9,900 | 1,648,845 | ||||||
| Mastercard Class A | 151,658 | 55,114,034 | ||||||
| MSCI | 32,689 | 18,295,707 | ||||||
| PayPal Holdings † | 82,417 | 6,258,747 | ||||||
| Progressive | 51,420 | 7,356,145 | ||||||
| RenaissanceRe Holdings | 12,827 | 2,569,761 | ||||||
| Tradeweb Markets Class A | 35,200 | 2,781,504 | ||||||
| Visa Class A | 242,252 | 54,618,136 | ||||||
| Western Union | 53,533 | 596,893 | ||||||
| 171,081,944 | ||||||||
| Healthcare — 12.31% | ||||||||
| AbbVie | 48,783 | 7,774,547 | ||||||
| Agilent Technologies | 48,800 | 6,750,992 | ||||||
| Align Technology † | 11,749 | 3,925,811 | ||||||
| Amgen | 10,772 | 2,604,131 | ||||||
| Dexcom † | 126,285 | 14,671,791 | ||||||
| Edwards Lifesciences † | 84,185 | 6,964,625 | ||||||
| Eli Lilly & Co. | 61,059 | 20,968,882 | ||||||
| Encompass Health | 35,743 | 1,933,696 | ||||||
| Exelixis † | 226,156 | 4,389,688 | ||||||
| Genmab † | 17,345 | 6,556,502 | ||||||
| Gilead Sciences | 33,678 | 2,794,264 | ||||||
| Humana | 1,784 | 866,061 | ||||||
| IDEXX Laboratories † | 12,321 | 6,161,486 | ||||||
| Incyte † | 24,300 | 1,756,161 | ||||||
| Insulet † | 33,527 | 10,693,772 | ||||||
| Intuitive Surgical † | 77,289 | 19,745,021 | ||||||
| IQVIA Holdings † | 6,500 | 1,292,785 | ||||||
| Maravai LifeSciences Holdings Class A † | 101,896 | 1,427,563 | ||||||
101
Schedules of investments
Optimum Large Cap Growth Fund
| Number of shares | Value (US $) | |||||||
| Common Stocks u (continued) | ||||||||
| Healthcare (continued) | ||||||||
| Mettler-Toledo International † | 900 | $ | 1,377,189 | |||||
| Molina Healthcare † | 11,900 | 3,183,131 | ||||||
| Neurocrine Biosciences † | 17,638 | 1,785,318 | ||||||
| Regeneron Pharmaceuticals † | 26,025 | 21,383,962 | ||||||
| Stryker | 7,726 | 2,205,541 | ||||||
| UnitedHealth Group | 94,015 | 44,430,549 | ||||||
| Veeva Systems Class A † | 14,400 | 2,646,576 | ||||||
| Vertex Pharmaceuticals † | 19,500 | 6,143,865 | ||||||
| Waters † | 29,075 | 9,002,492 | ||||||
| West Pharmaceutical Services | 3,048 | 1,056,040 | ||||||
| Zoetis | 27,200 | 4,527,168 | ||||||
| 219,019,609 | ||||||||
| Industrials — 7.10% | ||||||||
| Acuity Brands | 39,540 | 7,225,144 | ||||||
| Advanced Drainage Systems | 65,667 | 5,529,818 | ||||||
| AECOM | 34,100 | 2,875,312 | ||||||
| Allegion | 10,700 | 1,142,011 | ||||||
| Allison Transmission Holdings | 26,500 | 1,198,860 | ||||||
| Automatic Data Processing | 35,939 | 8,001,100 | ||||||
| Carlisle | 1,300 | 293,891 | ||||||
| Caterpillar | 26,300 | 6,018,492 | ||||||
| Cintas | 10,000 | 4,626,800 | ||||||
| Copart † | 73,934 | 5,560,576 | ||||||
| Core & Main Class A † | 126,515 | 2,922,496 | ||||||
| Deere & Co. | 18,740 | 7,737,371 | ||||||
| Donaldson | 57,393 | 3,750,059 | ||||||
| Fastenal | 48,912 | 2,638,313 | ||||||
| Fortive | 93,937 | 6,403,685 | ||||||
| Honeywell International | 26,897 | 5,140,555 | ||||||
| Illinois Tool Works | 4,200 | 1,022,490 | ||||||
| JB Hunt Transport Services | 33,390 | 5,858,609 | ||||||
| Johnson Controls International | 65,377 | 3,937,003 | ||||||
| Landstar System | 1,400 | 250,964 | ||||||
| Lincoln Electric Holdings | 16,600 | 2,807,060 | ||||||
| Lockheed Martin | 1,400 | 661,822 | ||||||
| Nordson | 30,100 | 6,690,026 | ||||||
| Otis Worldwide | 47,100 | 3,975,240 | ||||||
| Tetra Tech | 7,500 | 1,101,825 | ||||||
| Uber Technologies † | 54,788 | 1,736,780 | ||||||
| Union Pacific | 1,723 | 346,771 | ||||||
| United Parcel Service Class B | 58,516 | 11,351,519 | ||||||
| United Rentals | 2,100 | 831,096 | ||||||
| WESCO International | 7,200 | 1,112,688 | ||||||
| Westinghouse Air Brake Technologies | 59,807 | 6,044,095 | ||||||
| WW Grainger | 7,665 | 5,279,729 | ||||||
| Yaskawa Electric | 50,800 | 2,228,084 | ||||||
| 126,300,284 | ||||||||
| Information Technology — 40.68% | ||||||||
| Accenture Class A | 65,700 | 18,777,717 | ||||||
| Adobe † | 20,300 | 7,823,011 | ||||||
| Advanced Micro Devices † | 139,159 | 13,638,974 | ||||||
| Allegro MicroSystems † | 23,000 | 1,103,770 | ||||||
| Alteryx Class A † | 33,030 | 1,943,485 | ||||||
| Amphenol Class A | 11,100 | 907,092 | ||||||
| Analog Devices | 63,019 | 12,428,607 | ||||||
| ANSYS † | 5,965 | 1,985,152 | ||||||
| Apple | 1,353,895 | 223,257,286 | ||||||
| Applied Materials | 169,957 | 20,875,818 | ||||||
| Arista Networks † | 38,837 | 6,519,179 | ||||||
| ASML Holding | 10,058 | 6,854,006 | ||||||
| Broadcom | 50,387 | 32,325,276 | ||||||
| Cadence Design Systems † | 11,714 | 2,460,994 | ||||||
| Cognex | 86,331 | 4,277,701 | ||||||
| Cognizant Technology Solutions Class A | 37,882 | 2,308,150 | ||||||
| Datadog Class A † | 62,091 | 4,511,532 | ||||||
| DocuSign † | 90,930 | 5,301,219 | ||||||
| DoubleVerify Holdings † | 41,900 | 1,263,285 | ||||||
| Dynatrace † | 113,084 | 4,783,453 | ||||||
| Fair Isaac † | 11,832 | 8,314,228 | ||||||
| Fortinet † | 8,100 | 538,326 | ||||||
| Gartner † | 1,500 | 488,655 | ||||||
| HubSpot † | 6,425 | 2,754,719 | ||||||
| Intuit | 1,400 | 624,162 | ||||||
| Keyence | 9,400 | 4,607,022 | ||||||
| KLA | 600 | 239,502 | ||||||
| Lam Research | 2,300 | 1,219,276 | ||||||
| Lattice Semiconductor † | 11,600 | 1,107,800 | ||||||
| Manhattan Associates † | 39,759 | 6,156,681 | ||||||
| Microchip Technology | 7,701 | 645,190 | ||||||
| Micron Technology | 58,637 | 3,538,157 | ||||||
| Microsoft | 460,952 | 132,892,462 | ||||||
| MongoDB † | 5,834 | 1,360,022 | ||||||
| Monolithic Power Systems | 19,000 | 9,510,260 | ||||||
| New Relic † | 54,417 | 4,097,056 | ||||||
| NVIDIA | 271,837 | 75,508,163 | ||||||
| Okta † | 79,312 | 6,839,867 | ||||||
| Palantir Technologies Class A † | 1,312 | 11,086 | ||||||
| Palo Alto Networks † | 31,766 | 6,344,941 | ||||||
| Paychex | 110,300 | 12,639,277 | ||||||
| Paycom Software † | 59,307 | 18,029,921 | ||||||
| Pegasystems | 50,662 | 2,456,094 | ||||||
| QUALCOMM | 89,300 | 11,392,894 | ||||||
| Salesforce † | 29,514 | 5,896,307 | ||||||
| ServiceNow † | 21,100 | 9,805,592 | ||||||
| Smartsheet Class A † | 20,251 | 967,998 | ||||||
| Snowflake Class A † | 53 | 8,177 | ||||||
| Teradata † | 123,016 | 4,955,084 | ||||||
102
| Number of shares | Value (US $) | |||||||
| Common Stocks u (continued) | ||||||||
| Information Technology (continued) | ||||||||
| Universal Display | 24,800 | $ | 3,847,224 | |||||
| VeriSign † | 5,800 | 1,225,714 | ||||||
| Vontier | 31,465 | 860,253 | ||||||
| Workday Class A † | 20,364 | 4,205,981 | ||||||
| Zoom Video Communications Class A † | 2,867 | 211,699 | ||||||
| Zscaler † | 61,000 | 7,126,630 | ||||||
| 723,772,127 | ||||||||
| Materials — 0.68% | ||||||||
| Eagle Materials | 14,900 | 2,186,575 | ||||||
| Ecolab | 37,811 | 6,258,855 | ||||||
| Graphic Packaging Holding | 39,300 | 1,001,757 | ||||||
| Southern Copper | 35,800 | 2,729,750 | ||||||
| 12,176,937 | ||||||||
| Real Estate — 0.22% | ||||||||
| SBA Communications | 15,100 | 3,942,157 | ||||||
| 3,942,157 | ||||||||
| Total Common Stocks (cost $1,449,849,694) | 1,763,801,154 | |||||||
| Exchange-Traded Fund — 0.16% | ||||||||
| iShares Russell 1000 Growth ETF | 11,512 | 2,812,727 | ||||||
| Total Exchange-Traded Fund (cost $2,676,445) | 2,812,727 | |||||||
| Rights — 0.00% | ||||||||
| ABIOMED † | 15,699 | 16,013 | ||||||
| Total Rights (cost $0) | 16,013 | |||||||
| Short-Term Investments — 0.12% | ||||||||
| Money Market Mutual Funds — 0.12% | ||||||||
| BlackRock Liquidity FedFund – Institutional Shares (seven-day effective yield 4.72%) | 542,535 | 542,535 | ||||||
| Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 4.72%) | 542,536 | 542,536 | ||||||
| Goldman Sachs Financial Square Government Fund – Institutional Shares (seven-day effective yield 4.84%) | 542,536 | 542,536 | ||||||
| Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class (seven-day effective yield 4.73%) | 542,536 | 542,536 | ||||||
| Total Short-Term Investments (cost $2,170,143) | 2,170,143 | |||||||
| Total Value of Securities—99.40% (cost $1,454,696,282) | $ | 1,768,800,037 | ||||||
| ♦ | Narrow industries are utilized for compliance purposes for concentration whereas broad sectors are used for financial reporting. |
| † | Non-income producing security. |
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2023, the aggregate value of Rule 144A securities was $4,510,997, which represents 0.25% of the Fund's net assets. See Note 10 in “Notes to financial statements." |
The following foreign currency exchange contracts were outstanding at March 31, 2023:1
Foreign Currency Exchange Contracts
| Counterparty | Currency to Receive (Deliver) | In Exchange For | Settlement Date |
Unrealized Appreciation | Unrealized Depreciation |
|||||||||||||
| JPMCB | EUR | (2,633,254) | USD | 2,845,971 | 6/30/23 | $ | — | $ | (24,689 | ) | ||||||||
| UBS | JPY | (324,742,950) | USD | 2,503,762 | 6/30/23 | 24,411 | — | |||||||||||
| Total Foreign Currency Exchange Contracts | $ | 24,411 | $ | (24,689 | ) | |||||||||||||
The use of foreign currency exchange contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The foreign currency exchange contracts presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.
103
Schedules of investments
Optimum Large Cap Growth Fund
1 See Note 7 in “Notes to financial statements.”
Summary of abbreviations:
ETF – Exchange-Traded Fund
JPMCB – JPMorgan Chase Bank
MSCI – Morgan Stanley Capital International
Summary of currencies:
EUR – European Monetary Unit
JPY – Japanese Yen
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
104
| Optimum Large Cap Value Fund | March 31, 2023 |
| Number of shares | Value (US $) | |||||||
| Common Stocks — 98.43% | ||||||||
| Communication Services — 6.58% | ||||||||
| Alphabet Class A † | 214,532 | $ | 22,253,405 | |||||
| Charter Communications Class A † | 28,725 | 10,272,347 | ||||||
| Comcast Class A | 918,303 | 34,812,867 | ||||||
| Fox Class A | 305,793 | 10,412,252 | ||||||
| Meta Platforms Class A † | 130,949 | 27,753,331 | ||||||
| Verizon Communications | 320,061 | 12,447,172 | ||||||
| Walt Disney † | 160,401 | 16,060,952 | ||||||
| 134,012,326 | ||||||||
| Consumer Discretionary — 3.32% | ||||||||
| Darden Restaurants | 83,341 | 12,931,189 | ||||||
| General Motors | 266,141 | 9,762,052 | ||||||
| Lowe's | 161,904 | 32,375,943 | ||||||
| Marriott International Class A | 75,074 | 12,465,287 | ||||||
| 67,534,471 | ||||||||
| Consumer Staples — 6.31% | ||||||||
| Archer-Daniels-Midland | 40,231 | 3,204,802 | ||||||
| Diageo | 356,070 | 15,891,289 | ||||||
| Kimberly-Clark | 63,958 | 8,584,443 | ||||||
| Mondelez International Class A | 162,267 | 11,313,255 | ||||||
| Nestle | 129,230 | 15,757,087 | ||||||
| PepsiCo | 133,777 | 24,387,547 | ||||||
| Procter & Gamble | 58,354 | 8,676,656 | ||||||
| Reckitt Benckiser Group | 69,551 | 5,291,268 | ||||||
| Target | 162,397 | 26,897,815 | ||||||
| Tyson Foods Class A | 142,158 | 8,432,813 | ||||||
| 128,436,975 | ||||||||
| Energy — 6.83% | ||||||||
| ConocoPhillips | 383,683 | 38,065,190 | ||||||
| EOG Resources | 204,353 | 23,424,984 | ||||||
| Exxon Mobil | 327,224 | 35,883,384 | ||||||
| Phillips 66 | 80,728 | 8,184,205 | ||||||
| Pioneer Natural Resources | 71,676 | 14,639,106 | ||||||
| Schlumberger | 383,579 | 18,833,729 | ||||||
| 139,030,598 | ||||||||
| Financials — 21.91% | ||||||||
| Allstate | 84,279 | 9,338,956 | ||||||
| American Express | 153,341 | 25,293,598 | ||||||
| Aon Class A | 80,599 | 25,412,059 | ||||||
| Bank of America | 610,088 | 17,448,517 | ||||||
| Berkshire Hathaway Class B † | 41,564 | 12,833,716 | ||||||
| BlackRock | 39,894 | 26,693,873 | ||||||
| Chubb | 102,713 | 19,944,810 | ||||||
| Citigroup | 273,355 | 12,817,616 | ||||||
| Goldman Sachs Group | 15,981 | 5,227,545 | ||||||
| Hartford Financial Services Group | 197,697 | 13,777,504 | ||||||
| Intercontinental Exchange | 133,722 | 13,945,867 | ||||||
| JPMorgan Chase & Co. | 515,204 | 67,136,233 | ||||||
| KKR & Co. | 112,943 | 5,931,766 | ||||||
| Marsh & McLennan | 140,816 | 23,452,905 | ||||||
| Moody's | 13,174 | 4,031,508 | ||||||
| Morgan Stanley | 214,424 | 18,826,427 | ||||||
| Nasdaq | 283,234 | 15,484,403 | ||||||
| PayPal Holdings † | 197,452 | 14,994,505 | ||||||
| PNC Financial Services Group | 68,896 | 8,756,682 | ||||||
| Progressive | 180,232 | 25,783,990 | ||||||
| Prudential Financial | 68,525 | 5,669,759 | ||||||
| S&P Global | 36,067 | 12,434,820 | ||||||
| State Street | 179,570 | 13,591,653 | ||||||
| Travelers | 141,601 | 24,271,827 | ||||||
| Truist Financial | 253,777 | 8,653,796 | ||||||
| Wells Fargo & Co. | 378,651 | 14,153,974 | ||||||
| 445,908,309 | ||||||||
| Healthcare — 18.08% | ||||||||
| Abbott Laboratories | 346,441 | 35,080,616 | ||||||
| AbbVie | 80,377 | 12,809,682 | ||||||
| AmerisourceBergen | 92,317 | 14,780,875 | ||||||
| Avantor † | 383,818 | 8,113,912 | ||||||
| Boston Scientific † | 658,959 | 32,967,719 | ||||||
| Bristol-Myers Squibb | 229,806 | 15,927,854 | ||||||
| Cigna | 92,999 | 23,764,034 | ||||||
| CVS Health | 198,433 | 14,745,556 | ||||||
| Danaher | 25,929 | 6,535,145 | ||||||
| Eli Lilly & Co. | 39,173 | 13,452,792 | ||||||
| Johnson & Johnson | 271,723 | 42,117,065 | ||||||
| McKesson | 42,324 | 15,069,460 | ||||||
| Medtronic | 133,881 | 10,793,486 | ||||||
| Merck & Co. | 369,940 | 39,357,917 | ||||||
| Pfizer | 534,132 | 21,792,586 | ||||||
| Roche Holding | 11,649 | 3,328,616 | ||||||
| Thermo Fisher Scientific | 70,959 | 40,898,639 | ||||||
| UnitedHealth Group | 34,723 | 16,409,742 | ||||||
| 367,945,696 | ||||||||
| Industrials — 15.03% | ||||||||
| Canadian National Railway | 50,931 | 6,008,330 | ||||||
| Carrier Global | 203,004 | 9,287,433 | ||||||
| Caterpillar | 53,976 | 12,351,868 | ||||||
| CSX | 391,296 | 11,715,402 | ||||||
| Eaton | 90,105 | 15,438,591 | ||||||
| Equifax | 51,387 | 10,423,339 | ||||||
| General Dynamics | 78,868 | 17,998,466 | ||||||
| Honeywell International | 159,783 | 30,537,727 | ||||||
| Illinois Tool Works | 71,576 | 17,425,177 | ||||||
| Johnson Controls International | 181,075 | 10,904,337 | ||||||
| Masco | 86,393 | 4,295,460 | ||||||
| Northrop Grumman | 68,481 | 31,619,047 | ||||||
105
Schedules of investments
Optimum Large Cap Value Fund
| Number of shares | Value (US $) | |||||||
| Common Stocks (continued) | ||||||||
| Industrials (continued) | ||||||||
| Otis Worldwide | 40,948 | $ | 3,456,011 | |||||
| Owens Corning | 95,324 | 9,132,039 | ||||||
| PACCAR | 74,656 | 5,464,819 | ||||||
| Parker-Hannifin | 54,694 | 18,383,200 | ||||||
| Quanta Services | 100,780 | 16,793,979 | ||||||
| Raytheon Technologies | 278,938 | 27,316,399 | ||||||
| Southwest Airlines | 239,750 | 7,801,465 | ||||||
| Textron | 179,450 | 12,674,554 | ||||||
| Trane Technologies | 41,857 | 7,700,851 | ||||||
| Union Pacific | 95,780 | 19,276,683 | ||||||
| 306,005,177 | ||||||||
| Information Technology — 8.23% | ||||||||
| Accenture Class A | 67,173 | 19,198,715 | ||||||
| Analog Devices | 45,495 | 8,972,524 | ||||||
| Broadcom | 19,974 | 12,814,120 | ||||||
| KLA | 32,414 | 12,938,697 | ||||||
| Micron Technology | 159,701 | 9,636,358 | ||||||
| Microsoft | 61,076 | 17,608,211 | ||||||
| Motorola Solutions | 61,185 | 17,506,864 | ||||||
| NXP Semiconductors | 62,569 | 11,667,554 | ||||||
| ON Semiconductor † | 214,675 | 17,672,046 | ||||||
| Oracle | 149,821 | 13,921,367 | ||||||
| Texas Instruments | 138,169 | 25,700,816 | ||||||
| 167,637,272 | ||||||||
| Materials — 3.80% | ||||||||
| Air Products and Chemicals | 44,947 | 12,909,228 | ||||||
| Corteva | 66,763 | 4,026,476 | ||||||
| DuPont de Nemours | 205,107 | 14,720,529 | ||||||
| Huntsman | 308,495 | 8,440,423 | ||||||
| International Flavors & Fragrances | 37,627 | 3,460,179 | ||||||
| Martin Marietta Materials | 38,348 | 13,615,841 | ||||||
| PPG Industries | 73,003 | 9,751,741 | ||||||
| Sherwin-Williams | 46,297 | 10,406,177 | ||||||
| 77,330,594 | ||||||||
| Real Estate — 2.63% | ||||||||
| American Tower | 64,674 | 13,215,485 | ||||||
| Equity LifeStyle Properties | 96,000 | 6,444,480 | ||||||
| Prologis | 239,361 | 29,865,072 | ||||||
| Public Storage | 13,215 | 3,992,780 | ||||||
| 53,517,817 | ||||||||
| Utilities — 5.71% | ||||||||
| American Electric Power | 63,073 | 5,739,012 | ||||||
| Dominion Energy | 243,579 | 13,618,502 | ||||||
| Duke Energy | 389,410 | 37,566,383 | ||||||
| Exelon | 167,427 | 7,013,517 | ||||||
| NextEra Energy | 235,914 | 18,184,251 | ||||||
| Southern | 277,783 | 19,328,141 | ||||||
| Xcel Energy | 220,482 | 14,869,306 | ||||||
| 116,319,112 | ||||||||
| Total Common Stocks (cost $1,530,321,275) | 2,003,678,347 | |||||||
| Short-Term Investments — 1.54% | ||||||||
| Money Market Mutual Funds — 1.54% | ||||||||
| BlackRock Liquidity FedFund – Institutional Shares (seven-day effective yield 4.72%) | 7,834,195 | 7,834,195 | ||||||
| Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 4.72%) | 7,834,194 | 7,834,194 | ||||||
| Goldman Sachs Financial Square Government Fund – Institutional Shares (seven-day effective yield 4.84%) | 7,834,194 | 7,834,194 | ||||||
| Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class (seven-day effective yield 4.73%) | 7,834,195 | 7,834,195 | ||||||
| Total Short-Term
Investments (cost $31,336,778) | 31,336,778 | |||||||
| Total Value of Securities—99.97%
(cost $1,561,658,053) | $ | 2,035,015,125 | ||||||
| † | Non-income producing security. |
Summary of abbreviations:
S&P – Standard & Poor’s Financial Services LLC
See accompanying notes, which are an integral part of the financial statements.
106
| Optimum Small-Mid Cap Growth Fund | March 31, 2023 |
| Number of shares | Value (US $) | |||||||
| Common Stocks — 97.05% | ||||||||
| Communication Services — 0.18% | ||||||||
| Lions Gate Entertainment Class B † | 84,560 | $ | 877,733 | |||||
| 877,733 | ||||||||
| Consumer Discretionary — 16.36% | ||||||||
| Academy Sports & Outdoors | 129,120 | 8,425,080 | ||||||
| Boot Barn Holdings † | 19,070 | 1,461,525 | ||||||
| BorgWarner | 26,161 | 1,284,767 | ||||||
| Burlington Stores † | 8,796 | 1,777,672 | ||||||
| Deckers Outdoor † | 10,823 | 4,865,480 | ||||||
| Five Below † | 37,079 | 7,637,162 | ||||||
| Floor & Decor Holdings Class A † | 25,580 | 2,512,468 | ||||||
| Foot Locker | 111,698 | 4,433,294 | ||||||
| Fox Factory Holding † | 13,397 | 1,625,994 | ||||||
| Grand Canyon Education † | 39,595 | 4,509,870 | ||||||
| Hyatt Hotels Class A † | 19,022 | 2,126,469 | ||||||
| International Game Technology | 145,579 | 3,901,517 | ||||||
| Meritage Homes | 41,565 | 4,853,129 | ||||||
| Monro | 21,335 | 1,054,589 | ||||||
| Ollie's Bargain Outlet Holdings † | 33,323 | 1,930,735 | ||||||
| On Holding Class A † | 186,960 | 5,801,369 | ||||||
| Papa John's International | 24,444 | 1,831,589 | ||||||
| Skyline Champion † | 30,465 | 2,291,882 | ||||||
| Sonos † | 71,591 | 1,404,615 | ||||||
| Topgolf Callaway Brands † | 83,640 | 1,808,297 | ||||||
| Visteon † | 24,479 | 3,839,041 | ||||||
| Wingstop | 32,020 | 5,878,231 | ||||||
| Wynn Resorts † | 36,160 | 4,046,666 | ||||||
| Xponential Fitness Class A † | 90,498 | 2,750,234 | ||||||
| 82,051,675 | ||||||||
| Consumer Staples — 6.79% | ||||||||
| BellRing Brands † | 76,759 | 2,609,806 | ||||||
| BJ's Wholesale Club Holdings † | 82,382 | 6,266,799 | ||||||
| Celsius Holdings † | 21,098 | 1,960,848 | ||||||
| elf Beauty † | 81,094 | 6,678,091 | ||||||
| Freshpet † | 40,090 | 2,653,557 | ||||||
| Lamb Weston Holdings | 85,913 | 8,979,627 | ||||||
| Performance Food Group † | 44,831 | 2,705,102 | ||||||
| TreeHouse Foods † | 43,251 | 2,181,148 | ||||||
| 34,034,978 | ||||||||
| Energy — 2.73% | ||||||||
| Callon Petroleum † | 38,485 | 1,286,939 | ||||||
| ChampionX | 70,764 | 1,919,827 | ||||||
| Chesapeake Energy | 30,900 | 2,349,636 | ||||||
| Matador Resources | 136,528 | 6,505,559 | ||||||
| Ranger Oil Class A | 40,043 | 1,635,356 | ||||||
| 13,697,317 | ||||||||
| Financials — 7.83% | ||||||||
| BRP Group Class A † | 107,975 | 2,749,044 | ||||||
| Essent Group | 56,343 | 2,256,537 | ||||||
| Evercore Class A | 16,524 | 1,906,539 | ||||||
| Flywire † | 133,369 | 3,915,714 | ||||||
| Focus Financial Partners Class A † | 26,566 | 1,377,978 | ||||||
| Kinsale Capital Group | 14,040 | 4,214,106 | ||||||
| MarketAxess Holdings | 10,144 | 3,969,246 | ||||||
| Palomar Holdings † | 29,492 | 1,627,958 | ||||||
| PennyMac Financial Services | 28,672 | 1,709,138 | ||||||
| Ryan Specialty Holdings † | 69,460 | 2,795,070 | ||||||
| Skyward Specialty Insurance Group † | 60,960 | 1,333,195 | ||||||
| Stifel Financial | 45,052 | 2,662,123 | ||||||
| Triumph Financial † | 35,784 | 2,077,619 | ||||||
| Virtu Financial Class A | 60,987 | 1,152,654 | ||||||
| WEX † | 30,068 | 5,529,205 | ||||||
| 39,276,126 | ||||||||
| Healthcare — 18.95% | ||||||||
| Adaptive Biotechnologies † | 87,531 | 772,899 | ||||||
| agilon health † | 48,912 | 1,161,660 | ||||||
| Amicus Therapeutics † | 146,842 | 1,628,478 | ||||||
| AMN Healthcare Services † | 25,369 | 2,104,612 | ||||||
| AtriCure † | 29,731 | 1,232,350 | ||||||
| Avantor † | 132,082 | 2,792,213 | ||||||
| Avid Bioservices † | 85,311 | 1,600,434 | ||||||
| Axonics † | 42,413 | 2,314,053 | ||||||
| Axsome Therapeutics † | 19,904 | 1,227,679 | ||||||
| Azenta † | 22,242 | 992,438 | ||||||
| BioLife Solutions † | 68,317 | 1,485,895 | ||||||
| Blueprint Medicines † | 29,470 | 1,325,855 | ||||||
| Charles River Laboratories International † | 20,222 | 4,081,204 | ||||||
| CONMED | 23,827 | 2,474,672 | ||||||
| Cytokinetics † | 36,424 | 1,281,761 | ||||||
| Evolent Health Class A † | 114,007 | 3,699,527 | ||||||
| Exact Sciences † | 107,915 | 7,317,716 | ||||||
| Glaukos Corp. † | 31,511 | 1,578,701 | ||||||
| Haemonetics † | 29,974 | 2,480,348 | ||||||
| HealthEquity † | 35,966 | 2,111,564 | ||||||
| ICON † | 16,500 | 3,524,235 | ||||||
| Insmed † | 66,495 | 1,133,740 | ||||||
| Inspire Medical Systems † | 27,233 | 6,374,428 | ||||||
| Insulet † | 12,397 | 3,954,147 | ||||||
| Ionis Pharmaceuticals † | 27,616 | 986,996 | ||||||
| Iovance Biotherapeutics † | 55,835 | 341,152 | ||||||
| iRhythm Technologies † | 13,517 | 1,676,514 | ||||||
| Natera † | 76,664 | 4,256,385 | ||||||
| Neurocrine Biosciences † | 15,796 | 1,598,871 | ||||||
| Novocure † | 7,406 | 445,397 | ||||||
| Oak Street Health † | 45,001 | 1,740,639 | ||||||
107
Schedules of investments
Optimum Small-Mid Cap Growth Fund
| Number of shares | Value (US $) | |||||||
| Common Stocks (continued) | ||||||||
| Healthcare (continued) | ||||||||
| Omnicell † | 31,901 | $ | 1,871,632 | |||||
| Pacira BioSciences † | 33,423 | 1,363,993 | ||||||
| Phreesia † | 153,907 | 4,969,657 | ||||||
| Privia Health Group † | 49,593 | 1,369,263 | ||||||
| Prothena † | 28,569 | 1,384,739 | ||||||
| Sarepta Therapeutics † | 13,124 | 1,808,881 | ||||||
| Silk Road Medical † | 57,966 | 2,268,210 | ||||||
| SpringWorks Therapeutics † | 32,535 | 837,451 | ||||||
| Tandem Diabetes Care † | 35,444 | 1,439,381 | ||||||
| TransMedics Group † | 21,069 | 1,595,555 | ||||||
| Treace Medical Concepts † | 52,181 | 1,314,439 | ||||||
| Ultragenyx Pharmaceutical † | 27,666 | 1,109,407 | ||||||
| US Physical Therapy | 18,066 | 1,768,842 | ||||||
| Veradigm † | 112,139 | 1,463,414 | ||||||
| ViewRay † | 222,988 | 771,538 | ||||||
| 95,032,965 | ||||||||
| Industrials — 19.21% | ||||||||
| A O Smith | 53,080 | 3,670,482 | ||||||
| Advanced Drainage Systems | 21,718 | 1,828,873 | ||||||
| AECOM | 52,689 | 4,442,736 | ||||||
| Applied Industrial Technologies | 27,578 | 3,919,661 | ||||||
| ASGN † | 35,783 | 2,958,181 | ||||||
| Atkore † | 14,795 | 2,078,402 | ||||||
| AZEK † | 218,741 | 5,149,163 | ||||||
| Boise Cascade | 23,213 | 1,468,222 | ||||||
| Chart Industries † | 16,230 | 2,035,242 | ||||||
| Clarivate † | 136,135 | 1,278,308 | ||||||
| Core & Main Class A † | 86,210 | 1,991,451 | ||||||
| Dycom Industries † | 20,826 | 1,950,355 | ||||||
| EMCOR Group | 21,341 | 3,469,833 | ||||||
| FTI Consulting † | 16,239 | 3,204,767 | ||||||
| GXO Logistics † | 29,456 | 1,486,350 | ||||||
| Herc Holdings | 18,336 | 2,088,470 | ||||||
| ICF International | 24,935 | 2,735,369 | ||||||
| KAR Auction Services † | 77,554 | 1,060,939 | ||||||
| KBR | 63,196 | 3,478,940 | ||||||
| Knight-Swift Transportation Holdings | 35,431 | 2,004,686 | ||||||
| Kratos Defense & Security Solutions † | 110,566 | 1,490,430 | ||||||
| Lincoln Electric Holdings | 27,198 | 4,599,182 | ||||||
| Masonite International † | 26,375 | 2,394,059 | ||||||
| Mercury Systems † | 36,616 | 1,871,810 | ||||||
| nVent Electric | 63,045 | 2,707,152 | ||||||
| Quanta Services | 49,172 | 8,194,022 | ||||||
| Ritchie Bros Auctioneers | 15,135 | 851,902 | ||||||
| Schneider National Class B | 68,760 | 1,839,330 | ||||||
| Shoals Technologies Group Class A † | 87,973 | 2,004,905 | ||||||
| SPX Technologies † | 34,811 | 2,456,960 | ||||||
| SS&C Technologies Holdings | 61,865 | 3,493,517 | ||||||
| Verra Mobility † | 136,989 | 2,317,854 | ||||||
| Vicor † | 26,200 | 1,229,828 | ||||||
| Wabash National | 76,415 | 1,879,045 | ||||||
| WillScot Mobile Mini Holdings † | 112,646 | 5,280,844 | ||||||
| Zurn Elkay Water Solutions | 66,432 | 1,418,987 | ||||||
| 96,330,257 | ||||||||
| Information Technology — 22.14% | ||||||||
| Allegro MicroSystems † | 90,982 | 4,366,226 | ||||||
| Belden | 34,465 | 2,990,528 | ||||||
| Bentley Systems Class B | 60,350 | 2,594,447 | ||||||
| Black Knight † | 42,479 | 2,445,091 | ||||||
| Box Class A † | 104,199 | 2,791,491 | ||||||
| Ciena † | 68,026 | 3,572,726 | ||||||
| Confluent Class A † | 162,914 | 3,921,340 | ||||||
| CyberArk Software † | 16,094 | 2,381,590 | ||||||
| DoubleVerify Holdings † | 246,606 | 7,435,171 | ||||||
| First Solar † | 18,810 | 4,091,175 | ||||||
| Freshworks Class A † | 155,524 | 2,388,849 | ||||||
| HashiCorp Class A † | 56,298 | 1,648,968 | ||||||
| HubSpot † | 14,623 | 6,269,611 | ||||||
| Impinj † | 19,287 | 2,613,774 | ||||||
| Itron † | 28,396 | 1,574,558 | ||||||
| Jamf Holding † | 95,520 | 1,854,998 | ||||||
| JFrog † | 84,422 | 1,663,113 | ||||||
| Lattice Semiconductor † | 62,201 | 5,940,196 | ||||||
| LiveRamp Holdings † | 66,972 | 1,468,696 | ||||||
| Lumentum Holdings † | 34,692 | 1,873,715 | ||||||
| MACOM Technology Solutions Holdings † | 47,594 | 3,371,559 | ||||||
| Manhattan Associates † | 30,385 | 4,705,117 | ||||||
| Nutanix Class A † | 82,121 | 2,134,325 | ||||||
| Onto Innovation † | 22,390 | 1,967,633 | ||||||
| PagerDuty † | 81,194 | 2,840,166 | ||||||
| PAR Technology † | 39,115 | 1,328,345 | ||||||
| Paylocity Holding † | 14,206 | 2,823,869 | ||||||
| Procore Technologies † | 98,263 | 6,154,212 | ||||||
| PTC † | 30,124 | 3,862,801 | ||||||
| Rogers † | 11,364 | 1,857,219 | ||||||
| Silicon Laboratories † | 12,744 | 2,231,347 | ||||||
| Silicon Motion Technology ADR | 22,084 | 1,446,944 | ||||||
| Sprout Social Class A † | 31,714 | 1,930,748 | ||||||
| Synaptics † | 10,897 | 1,211,202 | ||||||
| Teradyne | 17,399 | 1,870,566 | ||||||
| UiPath Class A † | 150,483 | 2,642,481 | ||||||
| Universal Display | 12,352 | 1,916,166 | ||||||
| Varonis Systems † | 58,769 | 1,528,582 | ||||||
108
| Number of shares | Value (US $) | |||||||
| Common Stocks (continued) | ||||||||
| Information Technology (continued) | ||||||||
| Zuora Class A † | 132,600 | $ | 1,310,088 | |||||
| 111,019,633 | ||||||||
| Materials — 1.94% | ||||||||
| Element Solutions | 173,502 | 3,350,324 | ||||||
| FMC | 21,458 | 2,620,665 | ||||||
| Orion Engineered Carbons | 77,109 | 2,011,774 | ||||||
| Steel Dynamics | 15,571 | 1,760,457 | ||||||
| 9,743,220 | ||||||||
| Real Estate — 0.92% | ||||||||
| Ryman Hospitality Properties | 21,559 | 1,934,489 | ||||||
| Zillow Group Class A † | 61,800 | 2,700,660 | ||||||
| 4,635,149 | ||||||||
| Total Common Stocks (cost $461,036,226) | 486,699,053 | |||||||
| Convertible Preferred Stock — 0.01% | ||||||||
| Honest Series D =, †, p | 15,249 | 58,021 | ||||||
| Total Convertible Preferred Stock (cost $697,718) | 58,021 | |||||||
| Warrant — 0.00% | ||||||||
| DraftKings strike price $25, expiration date 4/23/25 =, † | 399 | 0 | ||||||
| Total Warrant (cost $0) | 0 | |||||||
| Short-Term Investments — 3.28% | ||||||||
| Money Market Mutual Funds — 3.28% | ||||||||
| BlackRock Liquidity FedFund – Institutional Shares (seven-day effective yield 4.72%) | 4,113,131 | 4,113,131 | ||||||
| Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 4.72%) | 4,113,132 | 4,113,132 | ||||||
| Goldman Sachs Financial Square Government Fund – Institutional Shares (seven-day effective yield 4.84%) | 4,113,132 | 4,113,132 | ||||||
| Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class (seven-day effective yield 4.73%) | 4,113,131 | 4,113,131 | ||||||
| Total Short-Term Investments (cost $16,452,526) | 16,452,526 | |||||||
| Total Value of Securities—100.34% (cost $478,186,470) | $ | 503,209,600 | ||||||
| † | Non-income producing security. |
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
| p | Restricted security. These investments are in securities not registered under the Securities Act of 1933, as amended, and have certain restrictions on resale which may limit their liquidity. At March 31, 2023, the aggregate value of restricted securities was $58,021, which represented 0.01% of the Fund’s net assets. See Note 8 in “Notes to financial statements” and the following table, for additional details on restricted securities. |
Restricted Securities
| Investments | Date of Acquisition | Cost | Value | |||||||
| Honest Series D | 8/3/15 | $ | 697,718 | $ | 58,021 | |||||
Summary of abbreviations:
ADR – American Depositary Receipt
See accompanying notes, which are an integral part of the financial statements.
109
Schedules of investments
| Optimum Small-Mid Cap Value Fund | March 31, 2023 |
| Number of shares | Value (US $) | |||||||
| Common Stocks — 97.13% | ||||||||
| Communication Services — 5.86% | ||||||||
| AMC Networks Class A † | 30,800 | $ | 541,464 | |||||
| Gray Television | 65,200 | 568,544 | ||||||
| John Wiley & Sons Class A | 183,433 | 7,111,697 | ||||||
| Lumen Technologies | 150,400 | 398,560 | ||||||
| Nexstar Media Group | 93,375 | 16,122,127 | ||||||
| Paramount Global Class B | 37,200 | 829,932 | ||||||
| Ziff Davis † | 131,350 | 10,251,868 | ||||||
| 35,824,192 | ||||||||
| Consumer Discretionary — 11.63% | ||||||||
| Aaron's | 45,700 | 441,462 | ||||||
| American Axle & Manufacturing Holdings † | 114,200 | 891,902 | ||||||
| Bloomin' Brands | 74,100 | 1,900,665 | ||||||
| BorgWarner | 41,200 | 2,023,332 | ||||||
| Brunswick | 21,300 | 1,746,600 | ||||||
| Capri Holdings † | 15,000 | 705,000 | ||||||
| Dick's Sporting Goods | 17,900 | 2,539,831 | ||||||
| Foot Locker | 48,800 | 1,936,872 | ||||||
| Goodyear Tire & Rubber † | 70,000 | 771,400 | ||||||
| Guess? | 47,500 | 924,350 | ||||||
| H&R Block | 40,400 | 1,424,100 | ||||||
| Harley-Davidson | 43,800 | 1,663,086 | ||||||
| Haverty Furniture | 43,900 | 1,400,849 | ||||||
| Helen of Troy † | 24,696 | 2,350,318 | ||||||
| Kohl's | 47,900 | 1,127,566 | ||||||
| Lear | 8,300 | 1,157,767 | ||||||
| Leslie's † | 344,712 | 3,795,279 | ||||||
| Lithia Motors | 35,564 | 8,141,667 | ||||||
| Macy's | 73,400 | 1,283,766 | ||||||
| Malibu Boats Class A † | 19,500 | 1,100,775 | ||||||
| Modine Manufacturing † | 60,800 | 1,401,440 | ||||||
| Mohawk Industries † | 13,600 | 1,362,992 | ||||||
| Nordstrom | 28,400 | 462,068 | ||||||
| ODP † | 29,100 | 1,308,918 | ||||||
| Penske Automotive Group | 28,619 | 4,058,460 | ||||||
| PulteGroup | 53,000 | 3,088,840 | ||||||
| PVH | 23,100 | 2,059,596 | ||||||
| Qurate Retail Series A † | 97,500 | 96,311 | ||||||
| Sally Beauty Holdings † | 65,000 | 1,012,700 | ||||||
| Shoe Carnival | 400 | 10,260 | ||||||
| Smith & Wesson Brands | 67,800 | 834,618 | ||||||
| Sonic Automotive Class A | 29,600 | 1,608,464 | ||||||
| Tapestry | 37,600 | 1,620,936 | ||||||
| Thor Industries | 14,900 | 1,186,636 | ||||||
| Toll Brothers | 49,500 | 2,971,485 | ||||||
| Travel + Leisure | 12,500 | 490,000 | ||||||
| Tupperware Brands † | 116,100 | 290,250 | ||||||
| Victoria's Secret & Co. † | 173,572 | 5,927,484 | ||||||
| Whirlpool | 21,600 | 2,851,632 | ||||||
| Winnebago Industries | 19,400 | 1,119,380 | ||||||
| 71,089,057 | ||||||||
| Consumer Staples — 4.73% | ||||||||
| Albertsons Class A | 103,000 | 2,140,340 | ||||||
| Bunge | 15,200 | 1,451,904 | ||||||
| Conagra Brands | 48,100 | 1,806,636 | ||||||
| Herbalife Nutrition † | 35,500 | 571,550 | ||||||
| Ingles Markets Class A | 28,500 | 2,527,950 | ||||||
| Ingredion | 30,700 | 3,123,111 | ||||||
| Molson Coors Beverage Class B | 82,900 | 4,284,272 | ||||||
| Spectrum Brands Holdings | 115,657 | 7,658,807 | ||||||
| Sprouts Farmers Market † | 92,100 | 3,226,263 | ||||||
| US Foods Holding † | 58,413 | 2,157,776 | ||||||
| 28,948,609 | ||||||||
| Energy — 5.70% | ||||||||
| APA | 51,700 | 1,864,302 | ||||||
| Arch Resources | 6,700 | 880,782 | ||||||
| California Resources | 36,800 | 1,416,800 | ||||||
| DT Midstream | 183,406 | 9,054,754 | ||||||
| HF Sinclair | 68,100 | 3,294,678 | ||||||
| Magnolia Oil & Gas Class A | 336,711 | 7,367,237 | ||||||
| Marathon Oil | 139,800 | 3,349,608 | ||||||
| PDC Energy | 42,600 | 2,734,068 | ||||||
| SFL | 97,100 | 922,450 | ||||||
| TechnipFMC † | 202,194 | 2,759,948 | ||||||
| Vitesse Energy | 9,109 | 173,344 | ||||||
| World Fuel Services | 39,900 | 1,019,445 | ||||||
| 34,837,416 | ||||||||
| Financials — 17.90% | ||||||||
| Affiliated Managers Group | 9,500 | 1,352,990 | ||||||
| Ally Financial | 91,200 | 2,324,688 | ||||||
| American Financial Group | 16,900 | 2,053,350 | ||||||
| Annaly Capital Management | 52,450 | 1,002,320 | ||||||
| Apollo Commercial Real Estate Finance | 77,600 | 722,456 | ||||||
| Ares Capital | 85,300 | 1,558,857 | ||||||
| Associated Banc-Corp | 121,500 | 2,184,570 | ||||||
| B Riley Financial | 15,900 | 451,401 | ||||||
| Banco Latinoamericano de Comercio Exterior Class E | 59,900 | 1,041,062 | ||||||
| BGC Partners Class A | 1,307,199 | 6,836,651 | ||||||
| Cathay General Bancorp | 47,800 | 1,650,056 | ||||||
| Citizens Financial Group | 46,800 | 1,421,316 | ||||||
| CNA Financial | 40,395 | 1,576,617 | ||||||
| CNO Financial Group | 144,200 | 3,199,798 | ||||||
| Columbia Banking System | 208,678 | 4,469,883 | ||||||
| Comerica | 34,700 | 1,506,674 | ||||||
| Customers Bancorp † | 35,600 | 659,312 | ||||||
110
| Number of shares | Value (US $) | |||||||
| Common Stocks (continued) | ||||||||
| Financials (continued) | ||||||||
| Donnelley Financial Solutions † | 27,300 | $ | 1,115,478 | |||||
| Equitable Holdings | 68,200 | 1,731,598 | ||||||
| Essent Group | 26,800 | 1,073,340 | ||||||
| Euronet Worldwide † | 46,151 | 5,164,297 | ||||||
| Everest Re Group | 6,300 | 2,255,526 | ||||||
| F&G Annuities & Life | 3,502 | 63,456 | ||||||
| Fidelity National Financial | 51,500 | 1,798,895 | ||||||
| First American Financial | 38,200 | 2,126,212 | ||||||
| First BanCorp | 89,200 | 1,018,664 | ||||||
| First Busey | 74,400 | 1,513,296 | ||||||
| First Merchants | 150,952 | 4,973,868 | ||||||
| FleetCor Technologies † | 5,600 | 1,180,760 | ||||||
| FS KKR Capital | 57,750 | 1,068,375 | ||||||
| Hancock Whitney | 31,300 | 1,139,320 | ||||||
| Hanmi Financial | 56,800 | 1,054,776 | ||||||
| HomeStreet | 39,900 | 717,801 | ||||||
| Hope Bancorp | 122,400 | 1,201,968 | ||||||
| Jefferies Financial Group | 77,400 | 2,456,676 | ||||||
| Lazard Class A | 37,700 | 1,248,247 | ||||||
| Lincoln National | 33,300 | 748,251 | ||||||
| MGIC Investment | 107,200 | 1,438,624 | ||||||
| New Mountain Finance | 95,300 | 1,159,801 | ||||||
| Oaktree Specialty Lending | 1,431 | 26,860 | ||||||
| OFG Bancorp | 80,900 | 2,017,646 | ||||||
| OneMain Holdings | 34,600 | 1,282,968 | ||||||
| Pacific Premier Bancorp | 141,721 | 3,404,138 | ||||||
| PacWest Bancorp | 353,943 | 3,443,865 | ||||||
| Popular | 18,700 | 1,073,567 | ||||||
| PROG Holdings † | 39,600 | 942,084 | ||||||
| Radian Group | 69,500 | 1,535,950 | ||||||
| Redwood Trust | 119,100 | 802,734 | ||||||
| Regions Financial | 179,100 | 3,324,096 | ||||||
| Reinsurance Group of America | 8,200 | 1,088,632 | ||||||
| Rithm Capital | 131,300 | 1,050,400 | ||||||
| Starwood Property Trust | 428,446 | 7,579,210 | ||||||
| Synovus Financial | 55,900 | 1,723,397 | ||||||
| Universal Insurance Holdings | 41,300 | 752,486 | ||||||
| Unum Group | 75,700 | 2,994,692 | ||||||
| Victory Capital Holdings Class A | 39,300 | 1,150,311 | ||||||
| Voya Financial | 25,200 | 1,800,792 | ||||||
| Western Union | 66,100 | 737,015 | ||||||
| Zions Bancorp | 83,200 | 2,490,176 | ||||||
| 109,482,249 | ||||||||
| Healthcare — 5.20% | ||||||||
| DaVita † | 26,200 | 2,125,082 | ||||||
| Enovis † | 105,165 | 5,625,276 | ||||||
| Exelixis † | 84,300 | 1,636,263 | ||||||
| Innoviva † | 5,700 | 64,125 | ||||||
| Ironwood Pharmaceuticals † | 167,200 | 1,758,944 | ||||||
| Jazz Pharmaceuticals † | 35,100 | 5,136,183 | ||||||
| LivaNova † | 62,089 | 2,705,839 | ||||||
| Quest Diagnostics | 11,600 | 1,641,168 | ||||||
| QuidelOrtho † | 35,694 | 3,179,978 | ||||||
| Select Medical Holdings | 94,175 | 2,434,424 | ||||||
| United Therapeutics † | 11,800 | 2,642,728 | ||||||
| Universal Health Services Class B | 22,600 | 2,872,460 | ||||||
| 31,822,470 | ||||||||
| Industrials — 15.82% | ||||||||
| ACCO Brands | 146,000 | 776,720 | ||||||
| Acuity Brands | 13,900 | 2,539,947 | ||||||
| AGCO | 42,100 | 5,691,920 | ||||||
| Alaska Air Group † | 38,800 | 1,628,048 | ||||||
| Allison Transmission Holdings | 55,500 | 2,510,820 | ||||||
| Apogee Enterprises | 36,200 | 1,565,650 | ||||||
| ArcBest | 27,300 | 2,523,066 | ||||||
| Atkore † | 37,900 | 5,324,192 | ||||||
| BWX Technologies | 156,243 | 9,849,559 | ||||||
| CoreCivic † | 56,200 | 517,040 | ||||||
| Covenant Logistics Group | 59,100 | 2,093,322 | ||||||
| Crane Holdings | 10,500 | 1,191,750 | ||||||
| CSG Systems International | 18,200 | 977,340 | ||||||
| Deluxe | 29,800 | 476,800 | ||||||
| Ennis | 45,800 | 965,922 | ||||||
| Esab | 104,695 | 6,184,334 | ||||||
| GXO Logistics † | 172,501 | 8,704,401 | ||||||
| Hillenbrand | 31,174 | 1,481,700 | ||||||
| Huntington Ingalls Industries | 6,200 | 1,283,524 | ||||||
| Kaman | 91,959 | 2,102,183 | ||||||
| KAR Auction Services † | 466,031 | 6,375,304 | ||||||
| ManpowerGroup | 26,300 | 2,170,539 | ||||||
| Moog Class A | 24,000 | 2,418,000 | ||||||
| Owens Corning | 35,500 | 3,400,900 | ||||||
| Primoris Services | 66,384 | 1,637,029 | ||||||
| Quanex Building Products | 54,980 | 1,183,719 | ||||||
| REV Group | 13,295 | 159,407 | ||||||
| Ritchie Bros Auctioneers | 46,992 | 2,645,171 | ||||||
| Ryder System | 16,800 | 1,499,232 | ||||||
| Snap-on | 9,300 | 2,296,077 | ||||||
| Textron | 31,300 | 2,210,719 | ||||||
| Timken | 17,600 | 1,438,272 | ||||||
| Triton International | 43,700 | 2,762,714 | ||||||
| United Airlines Holdings † | 34,400 | 1,522,200 | ||||||
| Verra Mobility † | 360,891 | 6,106,276 | ||||||
| XPO † | 16,990 | 541,981 | ||||||
| 96,755,778 | ||||||||
| Information Technology — 8.73% | ||||||||
| ACI Worldwide † | 117,369 | 3,166,616 | ||||||
| Amdocs | 22,500 | 2,160,675 | ||||||
111
Schedules of investments
Optimum Small-Mid Cap Value Fund
| Number of shares | Value (US $) | |||||||
| Common Stocks (continued) | ||||||||
| Information Technology (continued) | ||||||||
| Amkor Technology | 102,600 | $ | 2,669,652 | |||||
| Arrow Electronics † | 24,580 | 3,069,304 | ||||||
| Aviat Networks † | 25,700 | 885,622 | ||||||
| Cirrus Logic † | 15,100 | 1,651,638 | ||||||
| Consensus Cloud Solutions † | 67,687 | 2,307,450 | ||||||
| Diodes † | 10,500 | 973,980 | ||||||
| Ebix | 33,273 | 438,871 | ||||||
| Jabil | 66,100 | 5,827,376 | ||||||
| Kimball Electronics † | 74,200 | 1,788,220 | ||||||
| Methode Electronics | 16,700 | 732,796 | ||||||
| NCR † | 37,200 | 877,548 | ||||||
| NetApp | 32,700 | 2,087,895 | ||||||
| Qorvo † | 12,900 | 1,310,253 | ||||||
| Sanmina † | 53,000 | 3,232,470 | ||||||
| Seagate Technology Holdings | 17,100 | 1,130,652 | ||||||
| TD SYNNEX | 13,700 | 1,326,023 | ||||||
| Teledyne Technologies † | 9,448 | 4,226,657 | ||||||
| TTM Technologies † | 84,100 | 1,134,509 | ||||||
| Ultra Clean Holdings † | 29,100 | 964,956 | ||||||
| Verint Systems † | 241,377 | 8,988,879 | ||||||
| Vishay Precision Group † | 35,910 | 1,499,602 | ||||||
| Xerox Holdings | 61,300 | 944,020 | ||||||
| 53,395,664 | ||||||||
| Materials — 12.00% | ||||||||
| Ashland | 88,642 | 9,104,420 | ||||||
| Axalta Coating Systems † | 315,503 | 9,556,586 | ||||||
| Berry Global Group | 48,200 | 2,838,980 | ||||||
| Celanese | 8,900 | 969,121 | ||||||
| Chemours | 49,500 | 1,482,030 | ||||||
| Eastman Chemical | 19,400 | 1,636,196 | ||||||
| FMC | 73,626 | 8,991,943 | ||||||
| Greif Class A | 34,400 | 2,179,928 | ||||||
| Huntsman | 82,070 | 2,245,435 | ||||||
| Ingevity † | 10,500 | 750,960 | ||||||
| Koppers Holdings | 48,050 | 1,680,309 | ||||||
| Mosaic | 55,400 | 2,541,752 | ||||||
| O-I Glass † | 59,800 | 1,358,058 | ||||||
| Reliance Steel & Aluminum | 17,900 | 4,595,646 | ||||||
| Silgan Holdings | 351,244 | 18,851,265 | ||||||
| Steel Dynamics | 22,700 | 2,566,462 | ||||||
| Tronox Holdings | 38,500 | 553,630 | ||||||
| Westrock | 48,000 | 1,462,560 | ||||||
| 73,365,281 | ||||||||
| Real Estate — 8.04% | ||||||||
| American Assets Trust | 37,200 | 691,548 | ||||||
| Apple Hospitality REIT | 114,600 | 1,778,592 | ||||||
| Armada Hoffler Properties | 100,700 | 1,189,267 | ||||||
| Brixmor Property Group | 80,400 | 1,730,208 | ||||||
| City Office REIT | 137,000 | 945,300 | ||||||
| CTO Realty Growth | 46,500 | 802,590 | ||||||
| EPR Properties | 32,200 | 1,226,820 | ||||||
| Equity Commonwealth | 173,146 | 3,585,854 | ||||||
| Franklin Street Properties | 93,612 | 146,971 | ||||||
| Gaming and Leisure Properties | 256,221 | 13,338,865 | ||||||
| Global Net Lease | 138,800 | 1,784,968 | ||||||
| Host Hotels & Resorts | 119,300 | 1,967,257 | ||||||
| Industrial Logistics Properties Trust | 63,789 | 195,832 | ||||||
| Kite Realty Group Trust | 63,600 | 1,330,512 | ||||||
| Medical Properties Trust | 847,977 | 6,970,371 | ||||||
| Newmark Group Class A | 403,174 | 2,854,472 | ||||||
| Office Properties Income Trust | 45,688 | 561,963 | ||||||
| Omega Healthcare Investors | 53,300 | 1,460,953 | ||||||
| Piedmont Office Realty Trust Class A | 78,300 | 571,590 | ||||||
| Plymouth Industrial REIT | 57,000 | 1,197,570 | ||||||
| Sabra Health Care REIT | 88,400 | 1,016,600 | ||||||
| Service Properties Trust | 104,300 | 1,038,828 | ||||||
| Tanger Factory Outlet Centers | 122,610 | 2,406,834 | ||||||
| Uniti Group | 107,160 | 380,418 | ||||||
| 49,174,183 | ||||||||
| Utilities — 1.52% | ||||||||
| National Fuel Gas | 44,100 | 2,546,334 | ||||||
| NRG Energy | 70,400 | 2,414,016 | ||||||
| UGI | 45,200 | 1,571,152 | ||||||
| Vistra | 114,200 | 2,740,800 | ||||||
| 9,272,302 | ||||||||
| Total Common Stocks (cost $574,652,346) | 593,967,201 | |||||||
| Short-Term Investments — 2.65% | ||||||||
| Money Market Mutual Funds — 2.65% | ||||||||
| BlackRock Liquidity FedFund – Institutional Shares (seven-day effective yield 4.72%) | 4,052,254 | 4,052,254 | ||||||
| Fidelity Investments Money Market Government Portfolio – Class I (seven-day effective yield 4.72%) | 4,052,254 | 4,052,254 | ||||||
| Goldman Sachs Financial Square Government Fund – Institutional Shares (seven-day effective yield 4.84%) | 4,052,254 | 4,052,254 | ||||||
112
| Number of shares | Value (US $) | |||||||
| Short-Term Investments (continued) | ||||||||
| Money Market Mutual Funds (continued) | ||||||||
| Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class (seven-day effective yield 4.73%) | 4,052,254 | $ | 4,052,254 | |||||
| Total Short-Term Investments (cost $16,209,016) | 16,209,016 | |||||||
| Total Value of Securities—99.78% (cost $590,861,362) | $ | 610,176,217 | ||||||
| † | Non-income producing security. |
Summary of abbreviations:
REIT – Real Estate Investment Trust
See accompanying notes, which are an integral part of the financial statements.
113
Statements of assets and liabilities
| Optimum Fund Trust | March 31, 2023 |
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | |||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Investments, at value* | $ | 3,124,839,149 | $ | 603,490,869 | $ | 1,768,800,037 | $ | 2,035,015,125 | $ | 503,209,600 | $ | 610,176,217 | ||||||||||||
| Cash | 7,254,959 | 821,882 | 10,571,507 | 15,530 | — | — | ||||||||||||||||||
| Cash collateral due from brokers | 11,389,075 | — | — | — | — | — | ||||||||||||||||||
| Foreign currencies, at valueΔ | 3,049,777 | 1,965,062 | — | — | — | — | ||||||||||||||||||
| Receivable for securities sold | 301,705,636 | 20,353 | 2,548,584 | 215,874 | 3,256,463 | 979,672 | ||||||||||||||||||
| Dividends and interest receivable | 14,931,884 | 1,718,018 | 488,905 | 2,110,874 | 169,668 | 1,268,321 | ||||||||||||||||||
| Due from brokers | 5,015,629 | — | — | — | — | — | ||||||||||||||||||
| Unrealized appreciation on foreign currency exchange contracts | 4,534,072 | — | 24,411 | — | — | — | ||||||||||||||||||
| Receivable for fund shares sold | 3,133,516 | 668,415 | 1,954,177 | 2,139,709 | 528,164 | 720,254 | ||||||||||||||||||
| Variation margin due from brokers on centrally cleared credit default swap contracts | 1,690,904 | — | — | — | — | — | ||||||||||||||||||
| Unrealized appreciation on over the counter credit default swap contracts | 770,464 | — | — | — | — | — | ||||||||||||||||||
| Variation margin due from brokers on futures contracts | 740,517 | — | — | — | — | — | ||||||||||||||||||
| Prepaid expenses | 12,826 | 10,459 | 17,971 | 15,706 | 17,614 | 11,356 | ||||||||||||||||||
| Swap payments receivable | 3,623 | — | — | — | — | — | ||||||||||||||||||
| Foreign tax reclaims receivable | — | 2,461,825 | 22,387 | 337,919 | — | — | ||||||||||||||||||
| Total Assets | 3,479,072,031 | 611,156,883 | 1,784,427,979 | 2,039,850,737 | 507,181,509 | 613,155,820 | ||||||||||||||||||
114
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | |||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||
| Options written, at valueΣ | 7,592,430 | — | — | — | — | — | ||||||||||||||||||
| Due to custodian | — | — | 736 | — | 292 | — | ||||||||||||||||||
| Payable for securities purchased | 1,011,274,510 | 1,976,261 | 1,679,442 | 617,292 | 4,658,846 | 398,754 | ||||||||||||||||||
| Variation margin due to brokers on centrally cleared interest rate swap contracts | 8,751,538 | — | — | — | — | — | ||||||||||||||||||
| Cash collateral due to brokers | 4,903,000 | — | — | — | — | — | ||||||||||||||||||
| Unrealized depreciation on foreign currency exchange contracts | 2,731,255 | — | 24,689 | — | — | — | ||||||||||||||||||
| Payable for fund shares redeemed | 2,543,241 | 752,766 | 1,979,630 | 1,841,752 | 509,172 | 618,425 | ||||||||||||||||||
| Variation margin due to brokers on future contracts | 2,128,527 | — | — | — | — | — | ||||||||||||||||||
| Investment management fees payable to affiliates | 1,040,701 | 309,695 | 857,538 | 1,072,380 | 396,341 | 444,762 | ||||||||||||||||||
| Other accrued expenses | 1,016,647 | 646,261 | 379,058 | 583,160 | 58,619 | 110,876 | ||||||||||||||||||
| Upfront payments received on over the counter credit default swap contracts | 352,702 | — | — | — | — | — | ||||||||||||||||||
| Reverse repurchase agreements | 173,573 | — | — | — | — | — | ||||||||||||||||||
| Accounting fees payable to affiliates | 134,285 | 32,836 | 94,499 | 111,795 | 27,517 | 34,360 | ||||||||||||||||||
| Unrealized depreciation on over the counter credit default swap contracts | 120,655 | — | — | — | — | — | ||||||||||||||||||
| Distribution fees payable to affiliates | 16,667 | 4,348 | 15,441 | 16,131 | 2,668 | 2,274 | ||||||||||||||||||
| Interest payable | 130 | — | — | — | — | — | ||||||||||||||||||
| Accrued capital gains taxes on appreciated securities | — | 14,845 | — | — | — | — | ||||||||||||||||||
| Total Liabilities | 1,042,779,861 | 3,737,012 | 5,031,033 | 4,242,510 | 5,653,455 | 1,609,451 | ||||||||||||||||||
| Total Net Assets | $ | 2,436,292,170 | $ | 607,419,871 | $ | 1,779,396,946 | $ | 2,035,608,227 | $ | 501,528,054 | $ | 611,546,369 | ||||||||||||
| Net Assets Consist of: | ||||||||||||||||||||||||
| Paid-in capital | $ | 2,850,382,816 | $ | 782,884,737 | $ | 1,361,197,997 | $ | 1,509,205,793 | $ | 568,371,279 | $ | 590,563,229 | ||||||||||||
| Total distributable earnings (loss) | (414,090,646 | ) | (175,464,866 | ) | 418,198,949 | 526,402,434 | (66,843,225 | ) | 20,983,140 | |||||||||||||||
| Total Net Assets | $ | 2,436,292,170 | $ | 607,419,871 | $ | 1,779,396,946 | $ | 2,035,608,227 | $ | 501,528,054 | $ | 611,546,369 | ||||||||||||
115
Statements of assets and liabilities
Optimum Fund Trust
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | |||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||||||
| Class A: | ||||||||||||||||||||||||
| Net assets | $ | 58,498,114 | $ | 14,663,027 | $ | 49,563,032 | $ | 51,404,606 | $ | 8,144,394 | $ | 6,852,004 | ||||||||||||
| Shares of beneficial interest outstanding, unlimited authorization, no par | 7,120,686 | 1,323,011 | 3,081,274 | 2,791,406 | 841,792 | 574,259 | ||||||||||||||||||
| Net asset value per share | $ | 8.22 | $ | 11.08 | $ | 16.09 | $ | 18.42 | $ | 9.68 | $ | 11.93 | ||||||||||||
| Sales charge | 4.50 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | ||||||||||||
| Offering price per share, equal to net asset value per share / (1 - sales charge) | $ | 8.61 | $ | 11.76 | $ | 17.07 | $ | 19.54 | $ | 10.27 | $ | 12.66 | ||||||||||||
| Class C: | ||||||||||||||||||||||||
| Net assets | $ | 5,048,363 | $ | 1,597,789 | $ | 6,567,513 | $ | 6,300,854 | $ | 1,131,440 | $ | 939,341 | ||||||||||||
| Shares of beneficial interest outstanding, unlimited authorization, no par | 599,615 | 145,505 | 564,455 | 346,359 | 196,029 | 94,302 | ||||||||||||||||||
| Net asset value per share | $ | 8.42 | $ | 10.98 | $ | 11.64 | $ | 18.19 | $ | 5.77 | $ | 9.96 | ||||||||||||
| Institutional Class: | ||||||||||||||||||||||||
| Net assets | $ | 2,372,745,693 | $ | 591,159,055 | $ | 1,723,266,401 | $ | 1,977,902,767 | $ | 492,252,220 | $ | 603,755,024 | ||||||||||||
| Shares of beneficial interest outstanding, unlimited authorization, no par | 288,764,924 | 52,783,148 | 94,718,428 | 106,935,379 | 42,267,850 | 46,817,215 | ||||||||||||||||||
| Net asset value per share | $ | 8.22 | $ | 11.20 | $ | 18.19 | $ | 18.50 | $ | 11.65 | $ | 12.90 | ||||||||||||
| *Investments, at cost | $ | 3,310,762,923 | $ | 639,858,372 | $ | 1,454,696,282 | $ | 1,561,658,053 | $ | 478,186,470 | $ | 590,861,362 | ||||||||||||
| ΔForeign currencies, at cost | 3,030,675 | 1,968,361 | — | — | — | — | ||||||||||||||||||
| ΣOptions written, premium received | (2,220,730 | ) | — | — | — | — | — | |||||||||||||||||
See accompanying notes, which are an integral part of the financial statements.
116
| Optimum Fund Trust | Year ended March 31, 2023 |
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | |||||||||||||||||||
| Investment Income: | ||||||||||||||||||||||||
| Interest | $ | 87,384,323 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Dividends | 1,111,381 | 28,343,778 | 12,180,087 | 45,272,020 | 2,329,130 | 16,938,908 | ||||||||||||||||||
| Foreign tax withheld | (23,853 | ) | (2,722,608 | ) | (85,463 | ) | (121,724 | ) | (1,594 | ) | (11,308 | ) | ||||||||||||
| 88,471,851 | 25,621,170 | 12,094,624 | 45,150,296 | 2,327,536 | 16,927,600 | |||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||
| Management fees | 12,757,860 | 5,158,004 | 11,406,131 | 12,467,448 | 5,950,276 | 6,146,592 | ||||||||||||||||||
| Distribution expenses — Class A | 81,237 | 20,314 | 69,671 | 78,496 | 12,161 | 10,725 | ||||||||||||||||||
| Distribution expenses — Class C | 425,965 | 96,907 | 345,704 | 382,793 | 59,936 | 53,446 | ||||||||||||||||||
| Dividend disbursing and transfer agent fees and expenses | 4,757,525 | 1,337,182 | 2,889,671 | 3,680,826 | 1,113,801 | 1,295,125 | ||||||||||||||||||
| Accounting fees | 1,738,488 | 485,402 | 1,135,980 | 1,355,762 | 409,539 | 472,471 | ||||||||||||||||||
| Reports and statements to shareholders expenses | 341,582 | 151,939 | 266,107 | 253,784 | 143,346 | 139,226 | ||||||||||||||||||
| Trustees’ fees and expenses | 318,218 | 107,985 | 9,934 | 227,399 | 82,169 | 86,815 | ||||||||||||||||||
| Custodian fees | 149,767 | 367,978 | 72,193 | 32,189 | 21,904 | 23,783 | ||||||||||||||||||
| Legal fees | 97,798 | 32,897 | 70,233 | 71,624 | 24,794 | 26,762 | ||||||||||||||||||
| Registration fees | 75,776 | 59,830 | 59,830 | 71,859 | 51,859 | 59,032 | ||||||||||||||||||
| Audit and tax fees | 67,518 | 56,969 | 30,324 | 27,273 | 27,568 | 28,576 | ||||||||||||||||||
| Interest expense | 130 | — | — | — | — | — | ||||||||||||||||||
| Other | 345,873 | 155,732 | 470,540 | 54,786 | 42,544 | 26,657 | ||||||||||||||||||
| 21,157,737 | 8,031,139 | 16,826,318 | 18,704,239 | 7,939,897 | 8,369,210 | |||||||||||||||||||
| Less expenses waived | — | (519,700 | ) | (1,309,556 | ) | (75,344 | ) | (403,283 | ) | (287,210 | ) | |||||||||||||
| Less expenses paid indirectly | (270 | ) | (226 | ) | (312 | ) | (306 | ) | (296 | ) | (294 | ) | ||||||||||||
| Total operating expenses | 21,157,467 | 7,511,213 | 15,516,450 | 18,628,589 | 7,536,318 | 8,081,706 | ||||||||||||||||||
| Net Investment Income (Loss) | 67,314,384 | 18,109,957 | (3,421,826 | ) | 26,521,707 | (5,208,782 | ) | 8,845,894 | ||||||||||||||||
See accompanying notes, which are an integral part of the financial statements.
117
Statements of operations
Optimum Fund Trust
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | |||||||||||||||||||
| Net Realized and Unrealized Gain (Loss): | ||||||||||||||||||||||||
| Net realized gain (loss) on: Investments1 | $ | (151,966,507 | ) | $ | (137,990,300 | ) | $ | 111,508,618 | $ | 119,124,024 | $ | (79,410,404 | ) | $ | 20,209,800 | |||||||||
| Foreign currencies | (2,230,601 | ) | (871,242 | ) | (85,175 | ) | (100,958 | ) | — | — | ||||||||||||||
| Foreign currency exchange contracts | 8,392,120 | (188,484 | ) | (280,538 | ) | 52,444 | — | — | ||||||||||||||||
| Futures contracts | (33,255,053 | ) | — | — | — | — | — | |||||||||||||||||
| Options purchased | (1,225,940 | ) | — | — | — | — | — | |||||||||||||||||
| Options written | 2,285,197 | — | — | — | — | — | ||||||||||||||||||
| Swap contracts | (7,735,323 | ) | — | — | — | — | — | |||||||||||||||||
| Net realized gain (loss) | (185,736,107 | ) | (139,050,026 | ) | 111,142,905 | 119,075,510 | (79,410,404 | ) | 20,209,800 | |||||||||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||
| Investments2 | (67,343,858 | ) | 12,456,130 | (387,610,484 | ) | (241,747,136 | ) | (19,782,519 | ) | (127,888,299 | ) | |||||||||||||
| Foreign currencies | 311,825 | 32,092 | 528 | 2,779 | — | — | ||||||||||||||||||
| Foreign currency exchange contracts | (1,063,916 | ) | (982 | ) | 1,891 | — | — | — | ||||||||||||||||
| Futures contracts | 16,940,660 | — | — | — | — | — | ||||||||||||||||||
| Options purchased | 2,556,564 | — | — | — | — | — | ||||||||||||||||||
| Options written | (436,280 | ) | — | — | — | — | — | |||||||||||||||||
| Swap contracts | (5,492,669 | ) | — | — | — | — | — | |||||||||||||||||
| Net change in unrealized appreciation (depreciation) | (54,527,674 | ) | 12,487,240 | (387,608,065 | ) | (241,744,357 | ) | (19,782,519 | ) | (127,888,299 | ) | |||||||||||||
| Net Realized and Unrealized Gain (Loss) | (240,263,781 | ) | (126,562,786 | ) | (276,465,160 | ) | (122,668,847 | ) | (99,192,923 | ) | (107,678,499 | ) | ||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (172,949,397 | ) | $ | (108,452,829 | ) | $ | (279,886,986 | ) | $ | (96,147,140 | ) | $ | (104,401,705 | ) | $ | (98,832,605 | ) | ||||||
| 1 | Includes $15,733 capital gains tax paid for Optimum International Fund. |
| 2 | Includes increase of $14,845 capital gains tax accrued for Optimum International Fund. |
See accompanying notes, which are an integral part of the financial statements.
118
Statements of changes in net assets
Optimum Fund Trust
| Optimum Fixed Income Fund | Optimum International Fund | |||||||||||||||
| Year ended | Year ended | |||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/23 | 3/31/22 | |||||||||||||
| Increase (Decrease) in Net Assets from Operations: | ||||||||||||||||
| Net investment income (loss) | $ | 67,314,384 | $ | 47,689,857 | $ | 18,109,957 | $ | 16,571,020 | ||||||||
| Net realized gain (loss) | (185,736,107 | ) | (15,185,917 | ) | (139,050,026 | ) | 90,713,286 | |||||||||
| Net change in unrealized appreciation (depreciation) | (54,527,674 | ) | (176,045,683 | ) | 12,487,240 | (182,286,962 | ) | |||||||||
| Net increase (decrease) in net assets resulting from operations | (172,949,397 | ) | (143,541,743 | ) | (108,452,829 | ) | (75,002,656 | ) | ||||||||
| Dividends and Distributions to Shareholders from: | ||||||||||||||||
| Distributable earnings: | ||||||||||||||||
| Class A | (1,965,455 | ) | (445,644 | ) | (420,885 | ) | (935,580 | ) | ||||||||
| Class C | (1,279 | ) | (903,556 | ) | — | (2,624,537 | ) | |||||||||
| Institutional Class | (78,006,286 | ) | (62,740,572 | ) | (16,552,929 | ) | (131,716,221 | ) | ||||||||
| (79,973,020 | ) | (64,089,772 | ) | (16,973,814 | ) | (135,276,338 | ) | |||||||||
| Capital Share Transactions: | ||||||||||||||||
| Proceeds from shares sold: | ||||||||||||||||
| Class A | 45,934,561 | 2,096,123 | 10,298,520 | 291,952 | ||||||||||||
| Class C | 1,136,989 | 4,702,930 | 280,813 | 513,464 | ||||||||||||
| Institutional Class | 372,664,096 | 536,712,198 | 105,957,924 | 183,482,627 | ||||||||||||
| Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||
| Class A | 1,965,203 | 445,467 | 420,447 | 934,059 | ||||||||||||
| Class C | 1,255 | 901,741 | — | 2,623,663 | ||||||||||||
| Institutional Class | 77,934,531 | 62,651,359 | 16,539,386 | 131,589,404 | ||||||||||||
| 499,636,635 | 607,509,818 | 133,497,090 | 319,435,169 | |||||||||||||
| Cost of shares redeemed: | ||||||||||||||||
| Class A | (8,631,042 | ) | (3,907,042 | ) | (2,036,857 | ) | (1,232,452 | ) | ||||||||
| Class C | (61,670,496 | ) | (14,255,701 | ) | (13,529,499 | ) | (3,918,149 | ) | ||||||||
| Institutional Class | (582,844,704 | ) | (374,235,438 | ) | (312,583,865 | ) | (108,163,697 | ) | ||||||||
| (653,146,242 | ) | (392,398,181 | ) | (328,150,221 | ) | (113,314,298 | ) | |||||||||
| Increase (decrease) in net assets derived from capital share transactions | (153,509,607 | ) | 215,111,637 | (194,653,131 | ) | 206,120,871 | ||||||||||
| Net Increase (Decrease) in Net Assets | (406,432,024 | ) | 7,480,122 | (320,079,774 | ) | (4,158,123 | ) | |||||||||
| Net Assets: | ||||||||||||||||
| Beginning of year | 2,842,724,194 | 2,835,244,072 | 927,499,645 | 931,657,768 | ||||||||||||
| End of year | $ | 2,436,292,170 | $ | 2,842,724,194 | $ | 607,419,871 | $ | 927,499,645 | ||||||||
See accompanying notes, which are an integral part of the financial statements.
119
Statements of changes in net assets
Optimum Fund Trust
| Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | |||||||||||||||
| Year ended | Year ended | |||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/23 | 3/31/22 | |||||||||||||
| Increase (Decrease) in Net Assets from Operations: | ||||||||||||||||
| Net investment income (loss) | $ | (3,421,826 | ) | $ | (12,484,104 | ) | $ | 26,521,707 | $ | 19,434,127 | ||||||
| Net realized gain (loss) | 111,142,905 | 144,862,997 | 119,075,510 | 76,570,435 | ||||||||||||
| Net change in unrealized appreciation (depreciation) | (387,608,065 | ) | (77,452,169 | ) | (241,744,357 | ) | 143,971,671 | |||||||||
| Net increase (decrease) in net assets resulting from operations | (279,886,986 | ) | 54,926,724 | (96,147,140 | ) | 239,976,233 | ||||||||||
| Dividends and Distributions to Shareholders from: | ||||||||||||||||
| Distributable earnings: | ||||||||||||||||
| Class A | (2,458,356 | ) | (4,030,585 | ) | (3,341,089 | ) | (1,692,706 | ) | ||||||||
| Class C | (450,307 | ) | (14,214,509 | ) | (342,191 | ) | (4,345,895 | ) | ||||||||
| Institutional Class | (71,264,669 | ) | (268,587,340 | ) | (120,346,100 | ) | (140,961,810 | ) | ||||||||
| (74,173,332 | ) | (286,832,434 | ) | (124,029,380 | ) | (147,000,411 | ) | |||||||||
| Capital Share Transactions: | ||||||||||||||||
| Proceeds from shares sold: | ||||||||||||||||
| Class A | 33,398,822 | 1,407,951 | 39,649,598 | 1,277,268 | ||||||||||||
| Class C | 644,530 | 814,700 | 362,130 | 931,257 | ||||||||||||
| Institutional Class | 373,013,489 | 327,269,912 | 468,582,728 | 309,558,547 | ||||||||||||
| Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||
| Class A | 2,454,756 | 4,028,511 | 3,337,679 | 1,691,946 | ||||||||||||
| Class C | 448,282 | 14,196,121 | 325,642 | 4,339,611 | ||||||||||||
| Institutional Class | 71,183,682 | 268,007,460 | 120,186,745 | 140,692,925 | ||||||||||||
| 481,143,561 | 615,724,655 | 632,444,522 | 458,491,554 | |||||||||||||
| Cost of shares redeemed: | ||||||||||||||||
| Class A | (7,114,887 | ) | (6,494,547 | ) | (9,413,669 | ) | (4,535,773 | ) | ||||||||
| Class C | (45,095,685 | ) | (17,531,920 | ) | (55,344,441 | ) | (14,131,077 | ) | ||||||||
| Institutional Class | (282,886,246 | ) | (304,236,214 | ) | (388,298,146 | ) | (274,794,124 | ) | ||||||||
| (335,096,818 | ) | (328,262,681 | ) | (453,056,256 | ) | (293,460,974 | ) | |||||||||
| Increase in net assets derived from capital share transactions | 146,046,743 | 287,461,974 | 179,388,266 | 165,030,580 | ||||||||||||
| Net Increase (Decrease) in Net Assets | (208,013,575 | ) | 55,556,264 | (40,788,254 | ) | 258,006,402 | ||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of year | 1,987,410,521 | 1,931,854,257 | 2,076,396,481 | 1,818,390,079 | ||||||||||||
| End of year | $ | 1,779,396,946 | $ | 1,987,410,521 | $ | 2,035,608,227 | $ | 2,076,396,481 | ||||||||
See accompanying notes, which are an integral part of the financial statements.
120
| Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | |||||||||||||||
| Year ended | Year ended | |||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/23 | 3/31/22 | |||||||||||||
| Increase (Decrease) in Net Assets from Operations: | ||||||||||||||||
| Net investment income (loss) | $ | (5,208,782 | ) | $ | (7,456,623 | ) | $ | 8,845,894 | $ | (207,768 | ) | |||||
| Net realized gain (loss) | (79,410,404 | ) | 107,582,819 | 20,209,800 | 43,412,983 | |||||||||||
| Net change in unrealized appreciation (depreciation) | (19,782,519 | ) | (143,726,772 | ) | (127,888,299 | ) | 5,101,235 | |||||||||
| Net increase (decrease) in net assets resulting from operations | (104,401,705 | ) | (43,600,576 | ) | (98,832,605 | ) | 48,306,450 | |||||||||
| Dividends and Distributions to Shareholders from: | ||||||||||||||||
| Distributable earnings: | ||||||||||||||||
| Class A | (794,483 | ) | (1,302,134 | ) | (657,170 | ) | (222,223 | ) | ||||||||
| Class C | (183,775 | ) | (4,763,873 | ) | (94,176 | ) | (669,877 | ) | ||||||||
| Institutional Class | (37,728,231 | ) | (199,510,449 | ) | (51,124,848 | ) | (47,505,314 | ) | ||||||||
| (38,706,489 | ) | (205,576,456 | ) | (51,876,194 | ) | (48,397,414 | ) | |||||||||
| Capital Share Transactions: | ||||||||||||||||
| Proceeds from shares sold: | ||||||||||||||||
| Class A | 5,753,368 | 260,330 | 5,353,981 | 221,806 | ||||||||||||
| Class C | 141,183 | 188,430 | 67,209 | 132,722 | ||||||||||||
| Institutional Class | 102,343,208 | 141,732,994 | 98,641,309 | 135,324,597 | ||||||||||||
| Net asset value of shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||
| Class A | 793,457 | 1,300,064 | 656,496 | 221,983 | ||||||||||||
| Class C | 183,031 | 4,762,017 | 89,466 | 669,620 | ||||||||||||
| Institutional Class | 37,695,573 | 198,911,276 | 51,091,326 | 47,459,076 | ||||||||||||
| 146,909,820 | 347,155,111 | 155,899,787 | 184,029,804 | |||||||||||||
| Cost of shares redeemed: | ||||||||||||||||
| Class A | (1,169,748 | ) | (1,198,026 | ) | (1,207,087 | ) | (891,600 | ) | ||||||||
| Class C | (7,814,646 | ) | (3,440,330 | ) | (7,525,897 | ) | (2,796,339 | ) | ||||||||
| Institutional Class | (239,862,393 | ) | (103,282,138 | ) | (177,151,622 | ) | (104,727,298 | ) | ||||||||
| (248,846,787 | ) | (107,920,494 | ) | (185,884,606 | ) | (108,415,237 | ) | |||||||||
| Increase (decrease) in net assets derived from capital share transactions | (101,936,967 | ) | 239,234,617 | (29,984,819 | ) | 75,614,567 | ||||||||||
| Net Increase (Decrease) in Net Assets | (245,045,161 | ) | (9,942,415 | ) | (180,693,618 | ) | 75,523,603 | |||||||||
| Net Assets: | ||||||||||||||||
| Beginning of year | 746,573,215 | 756,515,630 | 792,239,987 | 716,716,384 | ||||||||||||
| End of year | $ | 501,528,054 | $ | 746,573,215 | $ | 611,546,369 | $ | 792,239,987 | ||||||||
See accompanying notes, which are an integral part of the financial statements.
121
Optimum Fixed Income Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 9.04 | $ | 9.70 | $ | 9.67 | $ | 9.46 | $ | 9.35 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.20 | 0.14 | 0.15 | 0.21 | 0.23 | |||||||||||||||
| Net realized and unrealized gain (loss) | (0.76 | ) | (0.61 | ) | 0.37 | 0.29 | 0.08 | |||||||||||||
| Total from investment operations | (0.56 | ) | (0.47 | ) | 0.52 | 0.50 | 0.31 | |||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | (0.26 | ) | (0.15 | ) | (0.15 | ) | (0.23 | ) | (0.20 | ) | ||||||||||
| Net realized gain | — | 2 | (0.04 | ) | (0.34 | ) | (0.06 | ) | — | |||||||||||
| Total dividends and distributions | (0.26 | ) | (0.19 | ) | (0.49 | ) | (0.29 | ) | (0.20 | ) | ||||||||||
| Net asset value, end of period | $ | 8.22 | $ | 9.04 | $ | 9.70 | $ | 9.67 | $ | 9.46 | ||||||||||
| Total return3 | (6.10 | )% | (4.99 | )% | 5.21 | % | 5.24 | %4 | 3.37 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 58,498 | $ | 21,244 | $ | 24,142 | $ | 24,827 | $ | 26,613 | ||||||||||
| Ratio of expenses to average net assets5 | 1.06 | % | 1.05 | % | 1.06 | % | 1.07 | % | 1.08 | % | ||||||||||
| Ratio of net investment income to average net assets | 2.42 | % | 1.40 | % | 1.52 | % | 2.11 | % | 2.43 | % | ||||||||||
| Portfolio turnover | 254 | % | 219 | %6 | 217 | %6 | 361 | %6 | 453 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Amount is less than $(0.005) per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
| 4 | General Motors term loan litigation were included in total return. If excluded, the impact on the total return would be 0.04% lower. |
| 5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
| 6 | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
See accompanying notes, which are an integral part of the financial statements.
122
Optimum Fixed Income Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 9.05 | $ | 9.69 | $ | 9.67 | $ | 9.45 | $ | 9.34 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.14 | 0.06 | 0.08 | 0.13 | 0.16 | |||||||||||||||
| Net realized and unrealized gain (loss) | (0.77 | ) | (0.59 | ) | 0.35 | 0.30 | 0.07 | |||||||||||||
| Total from investment operations | (0.63 | ) | (0.53 | ) | 0.43 | 0.43 | 0.23 | |||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | — | (0.07 | ) | (0.07 | ) | (0.15 | ) | (0.12 | ) | |||||||||||
| Net realized gain | — | 2 | (0.04 | ) | (0.34 | ) | (0.06 | ) | — | |||||||||||
| Total dividends and distributions | — | (0.11 | ) | (0.41 | ) | (0.21 | ) | (0.12 | ) | |||||||||||
| Net asset value, end of period | $ | 8.42 | $ | 9.05 | $ | 9.69 | $ | 9.67 | $ | 9.45 | ||||||||||
| Total return3 | (6.94 | )% | (5.55 | )% | 4.30 | % | 4.55 | %4 | 2.52 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 5,048 | $ | 71,985 | $ | 85,821 | $ | 85,853 | $ | 92,295 | ||||||||||
| Ratio of expenses to average net assets5 | 1.81 | % | 1.80 | % | 1.81 | % | 1.82 | % | 1.83 | % | ||||||||||
| Ratio of net investment income to average net assets | 1.67 | % | 0.65 | % | 0.77 | % | 1.36 | % | 1.68 | % | ||||||||||
| Portfolio turnover | 254 | % | 219 | %6 | 217 | %6 | 361 | %6 | 453 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Amount is less than $(0.005) per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
| 4 | General Motors term loan litigation were included in total return. If excluded, the impact on the total return would be 0.04% lower. |
| 5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
| 6 | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
See accompanying notes, which are an integral part of the financial statements.
123
Financial highlights
Optimum Fixed Income Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 9.03 | $ | 9.68 | $ | 9.66 | $ | 9.45 | $ | 9.34 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.22 | 0.16 | 0.18 | 0.23 | 0.25 | |||||||||||||||
| Net realized and unrealized gain (loss) | (0.76 | ) | (0.59 | ) | 0.36 | 0.29 | 0.08 | |||||||||||||
| Total from investment operations | (0.54 | ) | (0.43 | ) | 0.54 | 0.52 | 0.33 | |||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | (0.27 | ) | (0.18 | ) | (0.18 | ) | (0.25 | ) | (0.22 | ) | ||||||||||
| Net realized gain | — | 2 | (0.04 | ) | (0.34 | ) | (0.06 | ) | — | |||||||||||
| Total dividends and distributions | (0.27 | ) | (0.22 | ) | (0.52 | ) | (0.31 | ) | (0.22 | ) | ||||||||||
| Net asset value, end of period | $ | 8.22 | $ | 9.03 | $ | 9.68 | $ | 9.66 | $ | 9.45 | ||||||||||
| Total return3 | (5.91 | )% | (4.65 | )% | 5.37 | % | 5.52 | %4 | 3.65 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 2,372,746 | $ | 2,749,495 | $ | 2,725,281 | $ | 2,378,904 | $ | 2,249,912 | ||||||||||
| Ratio of expenses to average net assets5 | 0.81 | % | 0.80 | % | 0.81 | % | 0.82 | % | 0.83 | % | ||||||||||
| Ratio of net investment income to average net assets | 2.67 | % | 1.65 | % | 1.77 | % | 2.36 | % | 2.68 | % | ||||||||||
| Portfolio turnover | 254 | % | 219 | %6 | 217 | %6 | 361 | %6 | 453 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Amount is less than $(0.005) per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
| 4 | General Motors term loan litigation were included in total return. If excluded, the impact on the total return would be 0.04% lower. |
| 5 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
| 6 | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
See accompanying notes, which are an integral part of the financial statements.
124
Optimum International Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 12.33 | $ | 15.40 | $ | 9.93 | $ | 12.59 | $ | 14.42 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.25 | 0.22 | 0.16 | 0.20 | 0.17 | |||||||||||||||
| Net realized and unrealized gain (loss) | (1.19 | ) | (1.20 | ) | 5.59 | (2.61 | ) | (1.00 | ) | |||||||||||
| Total from investment operations | (0.94 | ) | (0.98 | ) | 5.75 | (2.41 | ) | (0.83 | ) | |||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | (0.31 | ) | (0.27 | ) | (0.12 | ) | (0.21 | ) | (0.18 | ) | ||||||||||
| Net realized gain | — | (1.82 | ) | (0.16 | ) | (0.04 | ) | (0.82 | ) | |||||||||||
| Total dividends and distributions | (0.31 | ) | (2.09 | ) | (0.28 | ) | (0.25 | ) | (1.00 | ) | ||||||||||
| Net asset value, end of period | $ | 11.08 | $ | 12.33 | $ | 15.40 | $ | 9.93 | $ | 12.59 | ||||||||||
| Total return2 | (7.49 | )%3 | (7.55 | )%3 | 58.20 | %3 | (19.62 | )%3 | (5.33 | )% | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 14,663 | $ | 6,071 | $ | 7,494 | $ | 5,121 | $ | 7,275 | ||||||||||
| Ratio of expenses to average net assets4 | 1.31 | % | 1.34 | % | 1.34 | % | 1.37 | % | 1.37 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 1.38 | % | 1.36 | % | 1.35 | % | 1.39 | % | 1.37 | % | ||||||||||
| Ratio of net investment income to average net assets | 2.37 | % | 1.46 | % | 1.21 | % | 1.62 | % | 1.30 | % | ||||||||||
| Ratio of net investment income to average net assets prior to fees waived | 2.30 | % | 1.44 | % | 1.20 | % | 1.60 | % | 1.30 | % | ||||||||||
| Portfolio turnover | 54 | % | 106 | % | 71 | % | 51 | % | 63 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
| 3 | Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
125
Financial highlights
Optimum International Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 11.96 | $ | 14.98 | $ | 9.68 | $ | 12.27 | $ | 14.06 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.17 | 0.10 | 0.06 | 0.11 | 0.07 | |||||||||||||||
| Net realized and unrealized gain (loss) | (1.15 | ) | (1.15 | ) | 5.43 | (2.54 | ) | (0.98 | ) | |||||||||||
| Total from investment operations | (0.98 | ) | (1.05 | ) | 5.49 | (2.43 | ) | (0.91 | ) | |||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | — | (0.15 | ) | (0.03 | ) | (0.12 | ) | (0.06 | ) | |||||||||||
| Net realized gain | — | (1.82 | ) | (0.16 | ) | (0.04 | ) | (0.82 | ) | |||||||||||
| Total dividends and distributions | — | (1.97 | ) | (0.19 | ) | (0.16 | ) | (0.88 | ) | |||||||||||
| Net asset value, end of period | $ | 10.98 | $ | 11.96 | $ | 14.98 | $ | 9.68 | $ | 12.27 | ||||||||||
| Total return2 | (8.19 | )%3 | (8.21 | )%3 | 56.92 | %3 | (20.16 | )%3 | (6.07 | )% | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 1,598 | $ | 17,442 | $ | 22,367 | $ | 15,138 | $ | 21,763 | ||||||||||
| Ratio of expenses to average net assets4 | 2.06 | % | 2.09 | % | 2.09 | % | 2.12 | % | 2.12 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 2.13 | % | 2.11 | % | 2.10 | % | 2.14 | % | 2.12 | % | ||||||||||
| Ratio of net investment income to average net assets | 1.62 | % | 0.71 | % | 0.46 | % | 0.87 | % | 0.55 | % | ||||||||||
| Ratio of net investment income to average net assets prior to fees waived | 1.55 | % | 0.69 | % | 0.45 | % | 0.85 | % | 0.55 | % | ||||||||||
| Portfolio turnover | 54 | % | 106 | % | 71 | % | 51 | % | 63 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
| 3 | Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
126
Optimum International Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 12.44 | $ | 15.52 | $ | 10.00 | $ | 12.68 | $ | 14.52 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.28 | 0.26 | 0.19 | 0.24 | 0.21 | |||||||||||||||
| Net realized and unrealized gain (loss) | (1.20 | ) | (1.21 | ) | 5.64 | (2.63 | ) | (1.02 | ) | |||||||||||
| Total from investment operations | (0.92 | ) | (0.95 | ) | 5.83 | (2.39 | ) | (0.81 | ) | |||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | (0.32 | ) | (0.31 | ) | (0.15 | ) | (0.25 | ) | (0.21 | ) | ||||||||||
| Net realized gain | — | (1.82 | ) | (0.16 | ) | (0.04 | ) | (0.82 | ) | |||||||||||
| Total dividends and distributions | (0.32 | ) | (2.13 | ) | (0.31 | ) | (0.29 | ) | (1.03 | ) | ||||||||||
| Net asset value, end of period | $ | 11.20 | $ | 12.44 | $ | 15.52 | $ | 10.00 | $ | 12.68 | ||||||||||
| Total return2 | (7.24 | )%3 | (7.31 | )%3 | 58.64 | %3 | (19.44 | )%3 | (5.09 | )% | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 591,159 | $ | 903,987 | $ | 901,797 | $ | 406,933 | $ | 524,925 | ||||||||||
| Ratio of expenses to average net assets4 | 1.06 | % | 1.09 | % | 1.09 | % | 1.12 | % | 1.12 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 1.13 | % | 1.11 | % | 1.10 | % | 1.14 | % | 1.12 | % | ||||||||||
| Ratio of net investment income to average net assets | 2.62 | % | 1.71 | % | 1.46 | % | 1.87 | % | 1.55 | % | ||||||||||
| Ratio of net investment income to average net assets prior to fees waived | 2.55 | % | 1.69 | % | 1.45 | % | 1.85 | % | 1.55 | % | ||||||||||
| Portfolio turnover | 54 | % | 106 | % | 71 | % | 51 | % | 63 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
| 3 | Total return during the period reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
127
Financial highlights
Optimum Large Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 19.88 | $ | 22.49 | $ | 15.51 | $ | 16.70 | $ | 17.22 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment loss1 | (0.07 | ) | (0.19 | ) | (0.14 | ) | (0.07 | ) | (0.03 | ) | ||||||||||
| Net realized and unrealized gain (loss) | (2.93 | ) | 1.26 | 9.03 | (0.53 | ) | 1.82 | |||||||||||||
| Total from investment operations | (3.00 | ) | 1.07 | 8.89 | (0.60 | ) | 1.79 | |||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net realized gain | (0.79 | ) | (3.68 | ) | (1.91 | ) | (0.59 | ) | (2.31 | ) | ||||||||||
| Total dividends and distributions | (0.79 | ) | (3.68 | ) | (1.91 | ) | (0.59 | ) | (2.31 | ) | ||||||||||
| Net asset value, end of period | $ | 16.09 | $ | 19.88 | $ | 22.49 | $ | 15.51 | $ | 16.70 | ||||||||||
| Total return2 | (14.76 | )%3 | 2.49 | %3 | 57.75 | % | (4.03 | )% | 11.60 | %3 | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 49,563 | $ | 23,861 | $ | 27,906 | $ | 22,363 | $ | 29,605 | ||||||||||
| Ratio of expenses to average net assets4 | 1.17 | % | 1.22 | % | 1.23 | % | 1.24 | % | 1.25 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 1.25 | % | 1.22 | % | 1.23 | % | 1.24 | % | 1.25 | % | ||||||||||
| Ratio of net investment loss to average net assets | (0.43 | )% | (0.80 | )% | (0.65 | )% | (0.38 | )% | (0.19 | )% | ||||||||||
| Ratio of net investment loss to average net assets prior to fees waived | (0.51 | )% | (0.80 | )% | (0.65 | )% | (0.38 | )% | (0.19 | )% | ||||||||||
| Portfolio turnover | 90 | %5 | 25 | % | 27 | % | 29 | % | 25 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
| 3 | Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
| 5 | As a result of American Century Management, Inc. and Los Angeles Capital Management LLC replacing T. Rowe Price and ClearBridge Investments, LLC replacing the sub-advisors to Optimum Large Cap Growth Fund during the Fund’s fiscal year ending March 31, 2023, the Fund’s portfolio turnover rate increased during the year ended March 31, 2023. |
See accompanying notes, which are an integral part of the financial statements.
128
Optimum Large Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 14.77 | $ | 17.63 | $ | 12.52 | $ | 13.68 | $ | 14.62 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment loss1 | (0.14 | ) | (0.28 | ) | (0.24 | ) | (0.16 | ) | (0.14 | ) | ||||||||||
| Net realized and unrealized gain (loss) | (2.20 | ) | 1.10 | 7.26 | (0.41 | ) | 1.51 | |||||||||||||
| Total from investment operations | (2.34 | ) | 0.82 | 7.02 | (0.57 | ) | 1.37 | |||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net realized gain | (0.79 | ) | (3.68 | ) | (1.91 | ) | (0.59 | ) | (2.31 | ) | ||||||||||
| Total dividends and distributions | (0.79 | ) | (3.68 | ) | (1.91 | ) | (0.59 | ) | (2.31 | ) | ||||||||||
| Net asset value, end of period | $ | 11.64 | $ | 14.77 | $ | 17.63 | $ | 12.52 | $ | 13.68 | ||||||||||
| Total return2 | (15.41 | )%3 | 1.72 | %3 | 56.56 | % | (4.71 | )% | 10.74 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 6,568 | $ | 65,193 | $ | 79,209 | $ | 63,237 | $ | 83,010 | ||||||||||
| Ratio of expenses to average net assets4 | 1.92 | % | 1.97 | % | 1.98 | % | 1.99 | % | 2.00 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 2.00 | % | 1.97 | % | 1.98 | % | 1.99 | % | 2.00 | % | ||||||||||
| Ratio of net investment loss to average net assets | (1.18 | )% | (1.55 | )% | (1.40 | )% | (1.13 | )% | (0.94 | )% | ||||||||||
| Ratio of net investment loss to average net assets prior to fees waived | (1.26 | )% | (1.55 | )% | (1.40 | )% | (1.13 | )% | (0.94 | )% | ||||||||||
| Portfolio turnover | 90 | %5 | 25 | % | 27 | % | 29 | % | 25 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
| 3 | Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
| 5 | As a result of American Century Management, Inc. and Los Angeles Capital Management LLC replacing T. Rowe Price and ClearBridge Investments, LLC replacing the sub-advisors to Optimum Large Cap Growth Fund during the Fund’s fiscal year ending March 31, 2023, the Fund’s portfolio turnover rate increased during the year ended March 31, 2023. |
See accompanying notes, which are an integral part of the financial statements.
129
Financial highlights
Optimum Large Cap Growth Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 22.30 | $ | 24.79 | $ | 16.93 | $ | 18.13 | $ | 18.46 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)1 | (0.03 | ) | (0.14 | ) | (0.09 | ) | (0.02 | ) | 0.01 | |||||||||||
| Net realized and unrealized gain (loss) | (3.29 | ) | 1.33 | 9.86 | (0.59 | ) | 1.97 | |||||||||||||
| Total from investment operations | (3.32 | ) | 1.19 | 9.77 | (0.61 | ) | 1.98 | |||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net realized gain | (0.79 | ) | (3.68 | ) | (1.91 | ) | (0.59 | ) | (2.31 | ) | ||||||||||
| Total dividends and distributions | (0.79 | ) | (3.68 | ) | (1.91 | ) | (0.59 | ) | (2.31 | ) | ||||||||||
| Net asset value, end of period | $ | 18.19 | $ | 22.30 | $ | 24.79 | $ | 16.93 | $ | 18.13 | ||||||||||
| Total return2 | (14.59 | )%3 | 2.75 | %3 | 58.11 | % | (3.77 | )% | 11.86 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 1,723,266 | $ | 1,898,357 | $ | 1,824,739 | $ | 1,392,797 | $ | 1,563,552 | ||||||||||
| Ratio of expenses to average net assets4 | 0.92 | % | 0.97 | % | 0.98 | % | 0.99 | % | 1.00 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 1.00 | % | 0.97 | % | 0.98 | % | 0.99 | % | 1.00 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets | (0.18 | )% | (0.55 | )% | (0.40 | )% | (0.13 | )% | 0.06 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets prior to fees waived | (0.26 | )% | (0.55 | )% | (0.40 | )% | (0.13 | )% | 0.06 | % | ||||||||||
| Portfolio turnover | 90 | %5 | 25 | % | 27 | % | 29 | % | 25 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
| 3 | Total return during the period reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
| 5 | As a result of American Century Management, Inc. and Los Angeles Capital Management LLC replacing T. Rowe Price and ClearBridge Investments, LLC replacing the sub-advisors to Optimum Large Cap Growth Fund during the Fund’s fiscal year ending March 31, 2023, the Fund’s portfolio turnover rate increased during the year ended March 31, 2023. |
See accompanying notes, which are an integral part of the financial statements.
130
Optimum Large Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 20.72 | $ | 19.72 | $ | 13.22 | $ | 15.83 | $ | 15.89 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.21 | 0.16 | 0.17 | 0.20 | 0.19 | |||||||||||||||
| Net realized and unrealized gain (loss) | (1.35 | ) | 2.37 | 6.52 | (2.37 | ) | 0.38 | |||||||||||||
| Total from investment operations | (1.14 | ) | 2.53 | 6.69 | (2.17 | ) | 0.57 | |||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | (0.22 | ) | (0.23 | ) | (0.10 | ) | (0.20 | ) | (0.18 | ) | ||||||||||
| Net realized gain | (0.94 | ) | (1.30 | ) | (0.09 | ) | (0.24 | ) | (0.45 | ) | ||||||||||
| Total dividends and distributions | (1.16 | ) | (1.53 | ) | (0.19 | ) | (0.44 | ) | (0.63 | ) | ||||||||||
| Net asset value, end of period | $ | 18.42 | $ | 20.72 | $ | 19.72 | $ | 13.22 | $ | 15.83 | ||||||||||
| Total return2 | (5.61 | )%3 | 12.91 | % | 50.73 | % | (14.37 | )% | 3.79 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 51,404 | $ | 23,414 | $ | 23,730 | $ | 17,123 | $ | 23,742 | ||||||||||
| Ratio of expenses to average net assets4 | 1.17 | % | 1.18 | % | 1.19 | % | 1.20 | % | 1.20 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 1.17 | % | 1.18 | % | 1.19 | % | 1.20 | % | 1.20 | % | ||||||||||
| Ratio of net investment income to average net assets | 1.12 | % | 0.76 | % | 1.04 | % | 1.19 | % | 1.23 | % | ||||||||||
| Ratio of net investment income to average net assets prior to fees waived | 1.12 | % | 0.76 | % | 1.04 | % | 1.19 | % | 1.23 | % | ||||||||||
| Portfolio turnover | 22 | % | 9 | % | 20 | % | 23 | % | 22 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
| 3 | Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
131
Financial highlights
Optimum Large Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 20.41 | $ | 19.44 | $ | 13.06 | $ | 15.65 | $ | 15.69 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.07 | — | 0.05 | 0.07 | 0.07 | |||||||||||||||
| Net realized and unrealized gain (loss) | (1.35 | ) | 2.34 | 6.42 | (2.35 | ) | 0.38 | |||||||||||||
| Total from investment operations | (1.28 | ) | 2.34 | 6.47 | (2.28 | ) | 0.45 | |||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | — | (0.07 | ) | — | (0.07 | ) | (0.04 | ) | ||||||||||||
| Net realized gain | (0.94 | ) | (1.30 | ) | (0.09 | ) | (0.24 | ) | (0.45 | ) | ||||||||||
| Total dividends and distributions | (0.94 | ) | (1.37 | ) | (0.09 | ) | (0.31 | ) | (0.49 | ) | ||||||||||
| Net asset value, end of period | $ | 18.19 | $ | 20.41 | $ | 19.44 | $ | 13.06 | $ | 15.65 | ||||||||||
| Total return2 | (6.37 | )%3 | 12.07 | % | 49.61 | % | (15.04 | )% | 3.05 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 6,301 | $ | 64,602 | $ | 69,778 | $ | 50,036 | $ | 69,415 | ||||||||||
| Ratio of expenses to average net assets4 | 1.92 | % | 1.93 | % | 1.94 | % | 1.95 | % | 1.95 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 1.92 | % | 1.93 | % | 1.94 | % | 1.95 | % | 1.95 | % | ||||||||||
| Ratio of net investment income to average net assets | 0.37 | % | 0.01 | % | 0.29 | % | 0.44 | % | 0.48 | % | ||||||||||
| Ratio of net investment income to average net assets prior to fees waived | 0.37 | % | 0.01 | % | 0.29 | % | 0.44 | % | 0.48 | % | ||||||||||
| Portfolio turnover | 22 | % | 9 | % | 20 | % | 23 | % | 22 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
| 3 | Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
132
Optimum Large Cap Value Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 20.78 | $ | 19.77 | $ | 13.25 | $ | 15.87 | $ | 15.93 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.26 | 0.21 | 0.21 | 0.24 | 0.23 | |||||||||||||||
| Net realized and unrealized gain (loss) | (1.36 | ) | 2.39 | 6.54 | (2.38 | ) | 0.38 | |||||||||||||
| Total from investment operations | (1.10 | ) | 2.60 | 6.75 | (2.14 | ) | 0.61 | |||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | (0.24 | ) | (0.29 | ) | (0.14 | ) | (0.24 | ) | (0.22 | ) | ||||||||||
| Net realized gain | (0.94 | ) | (1.30 | ) | (0.09 | ) | (0.24 | ) | (0.45 | ) | ||||||||||
| Total dividends and distributions | (1.18 | ) | (1.59 | ) | (0.23 | ) | (0.48 | ) | (0.67 | ) | ||||||||||
| Net asset value, end of period | $ | 18.50 | $ | 20.78 | $ | 19.77 | $ | 13.25 | $ | 15.87 | ||||||||||
| Total return2 | (5.40 | )%3 | 13.22 | % | 51.11 | % | (14.19 | )% | 4.08 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 1,977,903 | $ | 1,988,380 | $ | 1,724,882 | $ | 1,217,465 | $ | 1,474,723 | ||||||||||
| Ratio of expenses to average net assets4 | 0.92 | % | 0.93 | % | 0.94 | % | 0.95 | % | 0.95 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 0.92 | % | 0.93 | % | 0.94 | % | 0.95 | % | 0.95 | % | ||||||||||
| Ratio of net investment income to average net assets | 1.37 | % | 1.01 | % | 1.29 | % | 1.44 | % | 1.48 | % | ||||||||||
| Ratio of net investment income to average net assets prior to fees waived | 1.37 | % | 1.01 | % | 1.29 | % | 1.44 | % | 1.48 | % | ||||||||||
| Portfolio turnover | 22 | % | 9 | % | 20 | % | 23 | % | 22 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. |
| 3 | Total return during the period reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
133
Financial highlights
Optimum Small-Mid Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 12.29 | $ | 18.05 | $ | 10.17 | $ | 13.43 | $ | 15.51 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment loss1 | (0.11 | ) | (0.20 | ) | (0.18 | ) | (0.15 | ) | (0.17 | ) | ||||||||||
| Net realized and unrealized gain (loss) | (1.53 | ) | (0.15 | ) | 10.98 | (1.77 | ) | 1.20 | ||||||||||||
| Total from investment operations | (1.64 | ) | (0.35 | ) | 10.80 | (1.92 | ) | 1.03 | ||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net realized gain | (0.97 | ) | (5.41 | ) | (2.92 | ) | (1.34 | ) | (3.11 | ) | ||||||||||
| Total dividends and distributions | (0.97 | ) | (5.41 | ) | (2.92 | ) | (1.34 | ) | (3.11 | ) | ||||||||||
| Net asset value, end of period | $ | 9.68 | $ | 12.29 | $ | 18.05 | $ | 10.17 | $ | 13.43 | ||||||||||
| Total return2 | (13.08 | )% | (5.76 | )% | 109.54 | % | (16.32 | )% | 8.69 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 8,144 | $ | 3,864 | $ | 5,016 | $ | 3,241 | $ | 4,788 | ||||||||||
| Ratio of expenses to average net assets3 | 1.54 | % | 1.56 | % | 1.56 | % | 1.54 | % | 1.54 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived3 | 1.61 | % | 1.57 | % | 1.58 | % | 1.63 | % | 1.65 | % | ||||||||||
| Ratio of net investment loss to average net assets | (1.14 | )% | (1.19 | )% | (1.18 | )% | (1.11 | )% | (1.11 | )% | ||||||||||
| Ratio of net investment loss to average net assets prior to fees waived | (1.21 | )% | (1.20 | )% | (1.20 | )% | (1.20 | )% | (1.22 | )% | ||||||||||
| Portfolio turnover | 114 | % | 98 | % | 111 | % | 93 | % | 82 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 3 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
134
Optimum Small-Mid Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 7.85 | $ | 13.43 | $ | 8.02 | $ | 10.94 | $ | 13.32 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment loss1 | (0.13 | ) | (0.23 | ) | (0.23 | ) | (0.20 | ) | (0.24 | ) | ||||||||||
| Net realized and unrealized gain (loss) | (0.98 | ) | 0.06 | 8.56 | (1.38 | ) | 0.97 | |||||||||||||
| Total from investment operations | (1.11 | ) | (0.17 | ) | 8.33 | (1.58 | ) | 0.73 | ||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net realized gain | (0.97 | ) | (5.41 | ) | (2.92 | ) | (1.34 | ) | (3.11 | ) | ||||||||||
| Total dividends and distributions | (0.97 | ) | (5.41 | ) | (2.92 | ) | (1.34 | ) | (3.11 | ) | ||||||||||
| Net asset value, end of period | $ | 5.77 | $ | 7.85 | $ | 13.43 | $ | 8.02 | $ | 10.94 | ||||||||||
| Total return2 | (13.76 | )% | (6.51 | )% | 108.02 | % | (16.95 | )% | 7.81 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 1,132 | $ | 10,474 | $ | 14,372 | $ | 9,353 | $ | 13,510 | ||||||||||
| Ratio of expenses to average net assets3 | 2.29 | % | 2.31 | % | 2.31 | % | 2.29 | % | 2.29 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived3 | 2.36 | % | 2.32 | % | 2.33 | % | 2.38 | % | 2.40 | % | ||||||||||
| Ratio of net investment loss to average net assets | (1.89 | )% | (1.94 | )% | (1.93 | )% | (1.86 | )% | (1.86 | )% | ||||||||||
| Ratio of net investment loss to average net assets prior to fees waived | (1.96 | )% | (1.95 | )% | (1.95 | )% | (1.95 | )% | (1.97 | )% | ||||||||||
| Portfolio turnover | 114 | % | 98 | % | 111 | % | 93 | % | 82 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 3 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
135
Financial highlights
Optimum Small-Mid Cap Growth Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 14.52 | $ | 20.37 | $ | 11.25 | $ | 14.69 | $ | 16.63 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment loss1 | (0.11 | ) | (0.18 | ) | (0.16 | ) | (0.12 | ) | (0.14 | ) | ||||||||||
| Net realized and unrealized gain (loss) | (1.79 | ) | (0.26 | ) | 12.20 | (1.98 | ) | 1.31 | ||||||||||||
| Total from investment operations | (1.90 | ) | (0.44 | ) | 12.04 | (2.10 | ) | 1.17 | ||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net realized gain | (0.97 | ) | (5.41 | ) | (2.92 | ) | (1.34 | ) | (3.11 | ) | ||||||||||
| Total dividends and distributions | (0.97 | ) | (5.41 | ) | (2.92 | ) | (1.34 | ) | (3.11 | ) | ||||||||||
| Net asset value, end of period | $ | 11.65 | $ | 14.52 | $ | 20.37 | $ | 11.25 | $ | 14.69 | ||||||||||
| Total return2 | (12.86 | )% | (5.54 | )% | 110.06 | % | (16.14 | )% | 8.97 | % | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 492,252 | $ | 732,235 | $ | 737,128 | $ | 406,140 | $ | 494,476 | ||||||||||
| Ratio of expenses to average net assets3 | 1.29 | % | 1.31 | % | 1.31 | % | 1.29 | % | 1.29 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived3 | 1.36 | % | 1.32 | % | 1.33 | % | 1.38 | % | 1.40 | % | ||||||||||
| Ratio of net investment loss to average net assets | (0.89 | )% | (0.94 | )% | (0.93 | )% | (0.86 | )% | (0.86 | )% | ||||||||||
| Ratio of net investment loss to average net assets prior to fees waived | (0.96 | )% | (0.95 | )% | (0.95 | )% | (0.95 | )% | (0.97 | )% | ||||||||||
| Portfolio turnover | 114 | % | 98 | % | 111 | % | 93 | % | 82 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
| 3 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
See accompanying notes, which are an integral part of the financial statements.
136
Optimum Small-Mid Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 14.90 | $ | 14.93 | $ | 8.36 | $ | 12.14 | $ | 13.66 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)1 | 0.14 | (0.04 | ) | 0.19 | 0.10 | 0.11 | ||||||||||||||
| Net realized and unrealized gain (loss) | (1.95 | ) | 1.01 | 6.92 | (3.50 | ) | (0.69 | ) | ||||||||||||
| Total from investment operations | (1.81 | ) | 0.97 | 7.11 | (3.40 | ) | (0.58 | ) | ||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | (0.12 | ) | (0.12 | ) | (0.09 | ) | (0.11 | ) | (0.06 | ) | ||||||||||
| Net realized gain | (1.04 | ) | (0.88 | ) | (0.45 | ) | (0.27 | ) | (0.88 | ) | ||||||||||
| Total dividends and distributions | (1.16 | ) | (1.00 | ) | (0.54 | ) | (0.38 | ) | (0.94 | ) | ||||||||||
| Net asset value, end of period | $ | 11.93 | $ | 14.90 | $ | 14.93 | $ | 8.36 | $ | 12.14 | ||||||||||
| Total return2 | (12.44 | )% | 6.45 | % | 86.21 | % | (29.10 | )% | (3.83 | )% | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 6,852 | $ | 3,328 | $ | 3,765 | $ | 1,970 | $ | 3,266 | ||||||||||
| Ratio of expenses to average net assets3 | 1.44 | % | 1.46 | % | 1.49 | % | 1.47 | % | 1.46 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived3 | 1.48 | % | 1.46 | % | 1.50 | % | 1.52 | % | 1.54 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets | 1.07 | % | (0.26 | )% | 1.65 | % | 0.79 | % | 0.87 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets prior to fees waived | 1.03 | % | (0.26 | )% | 1.64 | % | 0.74 | % | 0.79 | % | ||||||||||
| Portfolio turnover | 17 | % | 17 | % | 85 | %4 | 33 | % | 32 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 3 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
| 4 | As a result of Cardinal Capital Management LLC replacing Westwood Management Corp. as one of the sub-advisors to Optimum Small-Mid Cap Value Fund during the Fund’s fiscal year ending March 31, 2021, the Fund’s portfolio turnover rate increased during the year ended March 31, 2021. |
See accompanying notes, which are an integral part of the financial statements.
137
Financial highlights
Optimum Small-Mid Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 12.62 | $ | 12.78 | $ | 7.22 | $ | 10.54 | $ | 12.01 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)1 | 0.04 | (0.13 | ) | 0.09 | — | 2 | 0.01 | |||||||||||||
| Net realized and unrealized gain (loss) | (1.66 | ) | 0.87 | 5.94 | (3.02 | ) | (0.60 | ) | ||||||||||||
| Total from investment operations | (1.62 | ) | 0.74 | 6.03 | (3.02 | ) | (0.59 | ) | ||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | — | (0.02 | ) | (0.02 | ) | (0.03 | ) | — | ||||||||||||
| Net realized gain | (1.04 | ) | (0.88 | ) | (0.45 | ) | (0.27 | ) | (0.88 | ) | ||||||||||
| Total dividends and distributions | (1.04 | ) | (0.90 | ) | (0.47 | ) | (0.30 | ) | (0.88 | ) | ||||||||||
| Net asset value, end of period | $ | 9.96 | $ | 12.62 | $ | 12.78 | $ | 7.22 | $ | 10.54 | ||||||||||
| Total return3 | (13.13 | )% | 5.70 | % | 84.75 | % | (29.65 | )% | (4.50 | )% | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 939 | $ | 9,318 | $ | 11,354 | $ | 6,042 | $ | 9,508 | ||||||||||
| Ratio of expenses to average net assets4 | 2.19 | % | 2.21 | % | 2.24 | % | 2.22 | % | 2.21 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived4 | 2.23 | % | 2.21 | % | 2.25 | % | 2.27 | % | 2.29 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets | 0.32 | % | (1.01 | )% | 0.90 | % | 0.04 | % | 0.12 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets prior to fees waived | 0.28 | % | (1.01 | )% | 0.89 | % | (0.01 | )% | 0.04 | % | ||||||||||
| Portfolio turnover | 17 | % | 17 | % | 85 | %5 | 33 | % | 32 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Amount is less than $0.005 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during the period reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
| 4 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
| 5 | As a result of Cardinal Capital Management LLC replacing Westwood Management Corp. as one of the sub-advisors to Optimum Small-Mid Cap Value Fund during the Fund’s fiscal year ending March 31, 2021, the Fund’s portfolio turnover rate increased during the year ended March 31, 2021. |
See accompanying notes, which are an integral part of the financial statements.
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Optimum Small-Mid Cap Value Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| Year ended | ||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/21 | 3/31/20 | 3/31/19 | ||||||||||||||||
| Net asset value, beginning of period | $ | 15.98 | $ | 15.94 | $ | 8.90 | $ | 12.90 | $ | 14.45 | ||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income1 | 0.19 | — | 0.23 | 0.14 | 0.16 | |||||||||||||||
| Net realized and unrealized gain (loss) | (2.10 | ) | 1.08 | 7.37 | (3.73 | ) | (0.73 | ) | ||||||||||||
| Total from investment operations | (1.91 | ) | 1.08 | 7.60 | (3.59 | ) | (0.57 | ) | ||||||||||||
| Less dividends and distributions from: | ||||||||||||||||||||
| Net investment income | (0.13 | ) | (0.16 | ) | (0.11 | ) | (0.14 | ) | (0.10 | ) | ||||||||||
| Net realized gain | (1.04 | ) | (0.88 | ) | (0.45 | ) | (0.27 | ) | (0.88 | ) | ||||||||||
| Total dividends and distributions | (1.17 | ) | (1.04 | ) | (0.56 | ) | (0.41 | ) | (0.98 | ) | ||||||||||
| Net asset value, end of period | $ | 12.90 | $ | 15.98 | $ | 15.94 | $ | 8.90 | $ | 12.90 | ||||||||||
| Total return2 | (12.19 | )% | 6.74 | % | 86.63 | % | (28.92 | )% | (3.55 | )% | ||||||||||
| Ratios and supplemental data: | ||||||||||||||||||||
| Net assets, end of period (000 omitted) | $ | 603,755 | $ | 779,594 | $ | 701,597 | $ | 366,656 | $ | 506,814 | ||||||||||
| Ratio of expenses to average net assets3 | 1.19 | % | 1.21 | % | 1.24 | % | 1.22 | % | 1.21 | % | ||||||||||
| Ratio of expenses to average net assets prior to fees waived3 | 1.23 | % | 1.21 | % | 1.25 | % | 1.27 | % | 1.29 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets | 1.32 | % | (0.01 | )% | 1.90 | % | 1.04 | % | 1.12 | % | ||||||||||
| Ratio of net investment income (loss) to average net assets prior to fees waived | 1.28 | % | (0.01 | )% | 1.89 | % | 0.99 | % | 1.04 | % | ||||||||||
| Portfolio turnover | 17 | % | 17 | % | 85 | %4 | 33 | % | 32 | % | ||||||||||
| 1 | Calculated using average shares outstanding. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during the period reflects waivers by the manager. Performance would have been lower had the waivers not been in effect. |
| 3 | Expense ratios do not include expenses of any investment companies in which the Fund invests. |
| 4 | As a result of Cardinal Capital Management LLC replacing Westwood Management Corp. as one of the sub-advisors to Optimum Small-Mid Cap Value Fund during the Fund’s fiscal year ending March 31, 2021, the Fund’s portfolio turnover rate increased during the year ended March 31, 2021. |
See accompanying notes, which are an integral part of the financial statements.
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| Optimum Fund Trust | March 31, 2023 |
Optimum Fund Trust (Trust) is organized as a Delaware statutory trust and offers six series: Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund, and Optimum Small-Mid Cap Value Fund, (each, a Fund, or together, the Funds). The Trust is an open-end investment company. Each Fund is considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offers Class A, Class C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of 4.50% for Optimum Fixed Income Fund and 5.75% for Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund, and Optimum Small-Mid Cap Value Fund. Class C shares have no upfront sales charge, but are sold with a contingent deferred sales charge (CDSC) of 1.00%, which will be incurred if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services — Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation — Equity securities and exchange-traded funds (ETFs), except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities and ETFs traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security or ETF does not trade, the mean between the bid and the ask prices will be used, which approximates fair value. Equity securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. US government and agency securities are valued at the mean between the bid and the ask prices, which approximates fair value. Other debt securities, credit default swap (CDS) contracts, interest rate swap contracts, CDS and interest rate swap options contracts (swaptions) are valued based upon valuations provided by an independent pricing service or broker/counterparty and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. For asset-backed securities, collateralized mortgage obligations (CMOs), commercial mortgage securities, and US government agency mortgage securities, pricing vendors utilize matrix pricing which considers prepayment speed, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity, and type as well as broker/dealer-supplied prices. Swap prices are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades, and values of the underlying reference instruments. Foreign currency exchange contracts and foreign cross currency exchange contracts are valued at the mean between the bid and the ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Futures contracts and options on futures contracts are valued at the daily quoted settlement prices. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and the ask prices, which approximates fair value. Open-end investment companies, other than ETFs, are valued at their published net asset value (NAV). Investments in repurchase agreements are generally valued at par, which approximates fair value, each business day. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by each Fund's valuation designee, Delaware Management Company (DMC). Subject to the oversight of the Trust's Board of Trustees (Board), DMC, as valuation designee, has adopted policies and procedures to fair value securities for which market quotations are not readily available consistent with the requirements of Rule 2a-5 under the 1940 Act. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities and private placements are valued at fair value.
Federal and Foreign Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Each Fund evaluates tax positions taken or expected to be taken in the course of preparing each Fund's tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the year ended March 31, 2023, and for all open tax years (years ended March 31, 2020–March 31, 2022), and has concluded that no provision for
140
federal income tax is required in each Fund’s financial statements. In regard to foreign taxes only, each Fund has open tax years in certain foreign countries in which it invests that may date back to the inception of each Fund. If applicable, each Fund recognize interest accrued on unrecognized tax benefits in interest expense and penalties in “Other” on the “Statements of operations.” During the year ended March 31, 2023, the Funds did not incur any interest or tax penalties.
Class Accounting — Investment income, common expenses, and realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Repurchase Agreements — Each Fund may purchase certain US government securities subject to the counterparty’s agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system with each Fund’s custodian or a third-party sub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. All open repurchase agreements as of the date of this report were entered into on March 30, 2023 and matured by April 4, 2023.
Reverse Repurchase Agreements — Optimum Fixed Income Fund may enter into reverse repurchase agreements. In a reverse repurchase agreement, the Fund sells securities to a bank or broker/dealer and agrees to repurchase the securities at an agreed upon date and price. The Fund will maintain in a segregated account, cash, cash equivalents, or US government securities in an amount sufficient to cover its obligations under reverse repurchase agreements with broker/dealers (but no collateral is required on reverse repurchase agreements with banks). The Fund will subject its investments in reverse repurchase agreements to the borrowing provisions set forth in the 1940 Act. The use of reverse repurchase agreements by the Fund creates leverage, which increases the Fund’s investment risk. If the income and gains on securities purchased with the proceeds of reverse repurchase agreements exceed the costs of the agreements, the Fund’s earnings or NAV will increase faster than otherwise would be the case; conversely, if the income and gains fail to exceed the costs, earnings or NAV would decline faster than otherwise would be the case. For the year ended March 31, 2023, the Fund had average reverse repurchase agreements of $476 for which it paid interest at an average rate of (27.38%). At March 31, 2023, the Fund posted $149,208 in securities collateral for reverse repurchase agreements.
Short Sales — Optimum Large Cap Value Fund may make short sales in an attempt to protect against declines in an individual security or the overall market, to manage duration, or for such other purposes consistent with the Fund’s investment objective and strategies. Typically, short sales are transactions in which the Fund sells a security it does not own and, at the time a short sale is effected, the Fund incurs an obligation to replace the security borrowed at whatever its price may be at the time the Fund purchases it for delivery to the lender. The price at such time may be more or less than the price at which the security was sold by the Fund. When a short sale transaction is closed out by delivery of the security, any gain or loss on the transaction generally is taxable as short-term capital gain or loss. Until the security is replaced, the Fund is required to pay the lender amounts equal to any dividends or interest that accrue during the period of the loan. To borrow the security, the Fund also may be required to pay a premium, which would increase the cost of the security sold. The proceeds of the short sale, and potentially additional margin, will be retained by the broker from whom the security is borrowed, to the extent necessary to meet margin requirements, until the short position is closed out. There were no short sales for the year ended March 31, 2023.
Mortgage Dollar Rolls — Optimum Fixed Income Fund entered into mortgage dollar rolls in which the Fund sells mortgage securities for delivery in the current month, realizing a gain (loss), and simultaneously enter into contracts to repurchase somewhat similar (same type, coupon and maturity) securities on a specified future date. During the roll period, the Fund forgo principal and interest paid on the securities. The Fund is compensated by the interest earned on the cash proceeds of the initial sale and by the lower repurchase price at the future date. The difference between the sale proceeds and the lower repurchase price is recorded as a realized gain on investment transactions. The Fund maintains a segregated account, the dollar value of which is at least equal to its obligations, with respect to dollar rolls. The Fund is subject to the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. The Fund is subject to leverage risk on certain transactions, such as the loans of portfolio securities, and the use of when issued or delayed delivery transactions or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Fund to be more volatile than if it had not been leveraged. The use of such transactions entails a heightened risk of loss. At March 31, 2023, the Fund received $3,143,000 cash collateral for mortgage dollar rolls, which is included in “Cash collateral due to brokers” on the “Statements of assets and liabilities.”
(continues)
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Notes to financial statements
Optimum Fund Trust
1. Significant Accounting Policies (continued)
Foreign Currency Transactions — Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date in accordance with the Fund's prospectus. The value of all assets and liabilities denominated in foreign currencies is translated daily into US dollars at the exchange rate of such currencies against the US dollar. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. Each Fund generally bifurcates that portion of realized gains and losses on investments in debt securities which is due to changes in foreign exchange rates from that which is due to changes in market prices of debt securities. That portion of gains (losses), attributable to changes in foreign exchange rates, is included on the “Statements of operations” under “Net realized gain (loss) on foreign currencies.” For foreign equity securities, the realized gains and losses are included on the “Statements of operations” under “Net realized gain (loss) on investments.” Each Fund reports certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, whereas such components are treated as ordinary income (loss) for federal income tax purposes.
Derivative Financial Instruments — The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/ or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Funds must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. Each Fund's successful use of a derivative financial instrument depends on the investment adviser's ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Funds can realize on an investment and/or may result in lower distributions paid to shareholders. Each Fund's investments in these instruments, if any, are discussed in detail in the Notes to financial statements.
Segregation and Collateralizations — In certain cases, based on requirements and agreements with certain exchanges and third-party broker/dealers, the Funds may deliver or receive collateral in connection with certain investments (e.g., futures contracts, foreign currency exchange contracts, options written, securities with extended settlement periods, and swaps). Certain countries require that cash reserves be held while investing in companies incorporated in that country. These cash reserves and cash collateral that has been pledged/received to cover obligations of the Funds under derivative contracts, if any, will be reported separately on the “Statements of assets and liabilities” as cash collateral due to/from broker. Securities collateral pledged for the same purpose, if any, is noted on the “Schedules of investments.”
Use of Estimates — The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, 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 and the differences could be material.
Other — Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Trust are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Income and capital gain distributions from any investment companies (Underlying Funds) in which the Funds invest are recorded on the ex-dividend date. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Premiums on callable debt securities are amortized to interest income to the earliest call date using the effective interest method. Realized gains (losses) on paydowns of asset- and mortgage-backed securities are classified as interest income. Distributions received from investments in real estate investment trusts (REITs) are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer, which are estimated. Distributions received from investments in master limited partnerships are recorded as return of capital on investments on the ex-dividend date. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Funds are aware of such dividends, net of all tax withholdings, a portion of which may be reclaimable. Withholding taxes and reclaims on foreign dividends and interest have been recorded in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Each Fund may pay foreign capital gains taxes on certain foreign securities held, which are reported as
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components of realized losses for financial reporting purposes, whereas such components are treated as ordinary loss for federal income tax purposes. Each Fund declares and pays distributions from net investment income and net realized gain on investments, if any, at least annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
DMC, a series of Macquarie Investment Management Business Trust, furnishes investment management services to each Fund and has full discretion and responsibility, subject to the overall supervision of the Board, to select and contract with one or more investment sub-advisors to manage the investment operations and composition of each Fund, and to render investment advice for each Fund, including the purchase, retention, and dispositions of investments, securities, and cash contained in each Fund. The investment management agreement obligates DMC to implement decisions with respect to the allocation or reallocation of each Fund’s assets among one or more current or additional sub-advisors, and to monitor the sub-advisors’ compliance with the relevant Fund’s investment objective, policies and restrictions. DMC pays the sub-advisors out of its fees, which are calculated daily and paid monthly.
In accordance with the terms of its respective investment management agreement, DMC is entitled to receive an annual fee equal to the following percentage rates of the average daily net assets of each Fund, which is calculated daily and paid monthly:
| Fund | Management Fee (annual rate as a percentage of average daily net assets) | |
| Optimum Fixed Income Fund | 0.6000% of net assets up to $500 million | |
| 0.5500% of net assets from $500 million to $1 billion | ||
| 0.5000% of net assets from $1 billion to $1.5 billion | ||
| 0.4500% of net assets from $1.5 billion to $2 billion | ||
| 0.4250% of net assets from $2 billion to $2.5 billion | ||
| 0.4000% of net assets from $2.5 billion to $5 billion | ||
| 0.3750% of net assets over $5 billion | ||
| Optimum International Fund | 0.7500% of net assets up to $500 million | |
| 0.7150% of net assets from $500 million to $1 billion | ||
| 0.7000% of net assets from $1 billion to $1.5 billion | ||
| 0.6750% of net assets from $1.5 billion to $2 billion | ||
| 0.6500% of net assets from $2 billion to $2.5 billion | ||
| 0.6000% of net assets over $2.5 billion | ||
| Optimum Large Cap Growth Fund | 0.7500% of net assets up to $500 million | |
| 0.7000% of net assets from $500 million to $1 billion | ||
| 0.6500% of net assets from $1 billion to $1.5 billion | ||
| 0.6250% of net assets from $1.5 billion to $2 billion | ||
| 0.6000% of net assets from $2 billion to $2.5 billion | ||
| 0.5750% of net assets from $2.5 billion to $5 billion | ||
| 0.5500% of net assets over $5 billion | ||
| Optimum Large Cap Value Fund | 0.7000% of net assets up to $500 million | |
| 0.6500% of net assets from $500 million to $1 billion | ||
| 0.6000% of net assets from $1 billion to $1.5 billion | ||
| 0.5750% of net assets from $1.5 billion to $2 billion | ||
| 0.5500% of net assets from $2 billion to $2.5 billion | ||
| 0.5250% of net assets from 2.5 billion to $5 billion | ||
| 0.5000% of net assets over $5 billion |
(continues)
143
Notes to financial statements
Optimum Fund Trust
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
| Fund | Management Fee (annual rate as a percentage of average daily net assets) | |
| Optimum Small-Mid Cap Growth Fund | 1.1000% of net assets up to $250 million | |
| 1.0000% of net assets from $250 million to $500 million | ||
| 0.9000% of net assets from $500 million to $750 million | ||
| 0.8000% of net assets from $750 million to $1 billion | ||
| 0.7500% of net assets from $1 billion to $1.5 billion | ||
| 0.7000% of net assets over $1.5 billion | ||
| Optimum Small-Mid Cap Value Fund | 1.0000% of net assets up to $250 million | |
| 0.9000% of net assets from $250 million to $500 million | ||
| 0.8000% of net assets from $500 million to $750 million | ||
| 0.7500% of net assets from $750 million to $1 billion | ||
| 0.7000% of net assets from $1 billion to $1.5 billion | ||
| 0.6500% of net assets over $1.5 billion |
DMC has entered into sub-advisory agreements for the Trust as follows: Optimum Fixed Income Fund – Pacific Investment Management Company, LLC (PIMCO), Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Europe Limited, and Macquarie Investment Management Global Limited; Optimum International Fund – Acadian Asset Management LLC (Acadian), and Baillie Gifford Overseas Limited (Baillie Gifford); Optimum Large Cap Growth Fund – Los Angeles Capital Management LLC (Los Angeles Capital) and American Century Investment Management, Inc. (American Century); Optimum Large Cap Value Fund – Massachusetts Financial Services Company (MFS) and Great Lakes Advisors (Great Lakes); Optimum Small-Mid Cap Growth Fund – Principal Dynamic Investors (Principal; formerly known as, Columbus Circle Investors) and Peregrine Capital Management, LLC (PCM); Optimum Small-Mid Cap Value Fund – LSV Asset Management (LSV) and Cardinal Capital Management LLC (Cardinal). As noted earlier in this report, T. Rowe Price Associates, Inc. and ClearBridge Investments LLC were each a sub-advisor for Optimum Large Cap Growth Fund, and Rothschild & Co was a sub-advisor to Optimum Large Cap Value Fund.
For the year ended March 31, 2023, DMC paid the following sub-advisory fees:
| Sub-advisory fees | ||||
| Optimum Fixed Income Fund | $ | 2,945,398 | ||
| Optimum International Fund | 2,780,807 | |||
| Optimum Large Cap Growth Fund | 4,360,110 | |||
| Optimum Large Cap Value Fund | 5,685,231 | |||
| Optimum Small-Mid Cap Growth Fund | 2,800,876 | |||
| Optimum Small-Mid Cap Value Fund | 3,002,794 | |||
DMC has contractually agreed to waive all or a portion, of its management fee and/or pay/reimburse expenses (excluding any distribution and service (12b-1) fees, acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations), in order to prevent total annual fund operating expenses from exceeding the following percentage of each Fund’s average daily net assets. These expense waivers and reimbursements may be terminated only by agreement of DMC and each Fund. These waivers and reimbursements are accrued daily and received monthly.
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| Fund | Operating expense limitation as a percentage of average daily net assets (per annum) for the period July 29, 2021 – July 28, 2022 | Operating expense limitation as a percentage of average daily net assets (per annum) for the period July 29, 2022 – July 29, 2023 | ||||||
| Optimum Fixed Income Fund | 0.83 | % | 0.83 | % | ||||
| Optimum International Fund | 1.09 | % | 1.04 | % | ||||
| Optimum Large Cap Growth Fund | 0.96 | % | 0.89 | % | ||||
| Optimum Large Cap Value Fund | 0.92 | % | 0.92 | % | ||||
| Optimum Small-Mid Cap Growth Fund | 1.29 | % | 1.29 | % | ||||
| Optimum Small-Mid Cap Value Fund | 1.20 | % | 1.18 | % | ||||
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to the Trust. These services include overseeing the Funds’ pricing process, the calculation and payment of Fund expenses, and financial reporting in shareholder reports, registration statements and other regulatory filings. DIFSC also manages the process for the payment of dividends and distribution and dissemination of Funds’ NAV and performance data. For these services the Funds pay DIFSC an asset-based fee, plus certain out-of-pocket expenses and transactional charges. DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of the Trust at the following annual rates: 0.0075% of the first $3.5 billion; 0.0070% of the next $2 billion; 0.0060% of the next $2 billion; and 0.0050% of aggregate average daily net assets in excess of $7.5 billion. The fees payable to DIFSC under the service agreement described above are allocated among all funds in the Trust on a relative NAV basis. These amounts are included on the “Statements of operations” under “Accounting fees.” For the year ended March 31, 2023, each Fund paid for these services as follows:
| Fund | Fees | |||
| Optimum Fixed Income Fund | $ | 259,750 | ||
| Optimum International Fund | 80,849 | |||
| Optimum Large Cap Growth Fund | 122,028 | |||
| Optimum Large Cap Value Fund | 143,290 | |||
| Optimum Small-Mid Cap Growth Fund | 46,978 | |||
| Optimum Small-Mid Cap Value Fund | 53,378 | |||
DIFSC provides the Trust with administrative services including: preparation, filing and maintaining governing documents; preparation of materials and reports for the Board; and preparation and filing of registration statements and other regulatory filings. For these administrative services, the Trust pays DIFSC the following fee as a percentage of the Trust’s average daily net assets (plus out-of-pocket expenses): 0.0525% of assets up to $7.5 billion; 0.0475% of assets from $7.5 billion to $10 billion; 0.0425% of assets from $10 billion to $12 billion; 0.0375% of assets from $12 billion to $14 billion and 0.0325% of assets over $14 billion.
DIFSC is also the shareholder servicing, dividend disbursing, and transfer agent for each Fund. For these services, the Trust pays DIFSC a fee at an annual rate of 0.18% of the Trust’s total average daily net assets, subject to a minimum fee of $2,000 per class per fund each month, plus out-of-pocket expenses. Pursuant to a sub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certain sub-transfer agency services to the Funds. Sub-transfer agency fees are paid by the Funds and are also included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.” The fees that are calculated daily and paid as invoices are received on a monthly or quarterly basis.
As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal and regulatory reporting services to each Fund. These amounts are included on the “Statements of operations” under “Legal fees.” For the year ended March 31, 2023, each Fund paid for internal legal and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:
| Fund | Fees | |||
| Optimum Fixed Income Fund | $ | 1,162 | ||
| Optimum International Fund | 322 | |||
(continues)
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Notes to financial statements
Optimum Fund Trust
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
| Fund | Fees | |||
| Optimum Large Cap Growth Fund | $ | 499 | ||
| Optimum Large Cap Value Fund | 604 | |||
| Optimum Small-Mid Cap Growth Fund | 181 | |||
| Optimum Small-Mid Cap Value Fund | 209 | |||
Delaware Distributors, L.P. (DDLP), an affiliate of DMC, serves as the national distributor of each Fund’s shares pursuant to a Distribution Agreement. Pursuant to the Distribution Agreement and Rule 12b-1 plan, each Fund pays DDLP annual 12b-1 fee of 0.25% of the average daily net assets of the Class A shares and 1.00% of the average daily net assets of the Class C shares. The fees are calculated daily and paid monthly. Institutional Class shares do not pay a 12b-1 fees.
For the year ended March 31, 2023, DDLP earned commissions on sales of Class A shares for each Fund as follows:
| Fund | Class A | |||
| Optimum Fixed Income Fund | $ | 5,275 | ||
| Optimum International Fund | 1,059 | |||
| Optimum Large Cap Growth Fund | 5,097 | |||
| Optimum Large Cap Value Fund | 2,736 | |||
| Optimum Small-Mid Cap Growth Fund | 757 | |||
| Optimum Small-Mid Cap Value Fund | 392 | |||
For the year ended March 31, 2023, DDLP received gross CDSC commissions on redemptions of each Fund’s Class C shares, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
| Fund | Class C | |||
| Optimum Fixed Income Fund | $ | 6,065 | ||
| Optimum International Fund | 1,656 | |||
| Optimum Large Cap Growth Fund | 4,751 | |||
| Optimum Large Cap Value Fund | 3,057 | |||
| Optimum Small-Mid Cap Growth Fund | 754 | |||
| Optimum Small-Mid Cap Value Fund | 373 | |||
DMC, DIFSC, and DDLP are indirect, wholly owned subsidiaries of Macquarie Management Holdings, Inc. Certain officers of DMC, DIFSC, and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.
In addition to the management fees and other expenses of a Fund, a Fund indirectly bears the investment management fees and other expenses of any Underlying Funds, including exchange-traded funds (ETFs) in which it invests. The amount of these fees and expenses incurred indirectly by a Fund will vary based upon the expense and fee levels of any Underlying Funds and the number of shares that are owned of any Underlying Funds at different times.
146
3. Investments
For the year ended March 31, 2023, each Fund made purchases and sales of investment securities other than short-term investments as follows:
| Fund | Purchases other than US government securities | Purchases of US government securities | Sales other than US government securities | Sales of US government securities | |||||||||
| Optimum Fixed Income Fund | $ | 336,947,062 | $ | 5,773,908,754 | $ | 647,931,993 | $ | 5,514,523,886 | |||||
| Optimum International Fund | 372,179,082 | — | 559,100,099 | — | |||||||||
| Optimum Large Cap Growth Fund | 1,573,275,421 | — | 1,463,452,847 | — | |||||||||
| Optimum Large Cap Value Fund | 519,014,561 | — | 432,987,834 | — | |||||||||
| Optimum Small-Mid Cap Growth Fund | 643,948,641 | — | 798,204,422 | — | |||||||||
| Optimum Small-Mid Cap Value Fund | 114,863,756 | — | 186,928,059 | — | |||||||||
The tax cost of investments and derivatives includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be the final tax cost basis adjustments, but approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. At March 31, 2023, the cost and unrealized appreciation (depreciation) of investments and derivatives for federal income tax purposes for each Fund were as follows:
| Fund | Cost of investments and derivatives | Aggregate unrealized appreciation of investments and derivatives | Aggregate unrealized depreciation of investments and derivatives | Net unrealized appreciation (depreciation) of investments and derivatives | ||||||||||
| Optimum Fixed Income Fund | $ | 3,351,094,328 | $ | 24,225,523 | $ | (262,627,891 | ) | $ | (238,402,368 | ) | ||||
| Optimum International Fund | 649,845,503 | 16,302,018 | (62,656,652 | ) | (46,354,634 | ) | ||||||||
| Optimum Large Cap Growth Fund | 1,464,709,177 | 345,472,481 | (41,381,908 | ) | 304,090,573 | |||||||||
| Optimum Large Cap Value Fund | 1,562,956,957 | 518,028,899 | (45,970,731 | ) | 472,058,168 | |||||||||
| Optimum Small-Mid Cap Growth Fund | 485,989,867 | 61,064,947 | (43,845,214 | ) | 17,219,733 | |||||||||
| Optimum Small-Mid Cap Value Fund | 592,299,862 | 97,024,882 | (79,148,527 | ) | 17,876,355 | |||||||||
US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized as follows:
| Level 1 – | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts) |
| Level 2 – | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities) |
| Level 3 – | Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities) |
(continues)
147
Notes to financial statements
Optimum Fund Trust
3. Investments (continued)
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of March 31, 2023:
| Optimum Fixed Income Fund | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Securities | ||||||||||||||||
| Assets: | ||||||||||||||||
| Agency Asset-Backed Security | $ | — | $ | 465,880 | $ | — | $ | 465,880 | ||||||||
| Agency Collateralized Mortgage Obligations | — | 61,404,976 | — | 61,404,976 | ||||||||||||
| Agency Commercial Mortgage-Backed Securities | — | 1,461,485 | — | 1,461,485 | ||||||||||||
| Agency Mortgage-Backed Securities | — | 709,744,479 | — | 709,744,479 | ||||||||||||
| Collateralized Debt Obligations | — | 155,308,461 | — | 155,308,461 | ||||||||||||
| Common Stock | — | — | 557,265 | 557,265 | ||||||||||||
| Convertible Bonds | — | 3,952,733 | — | 3,952,733 | ||||||||||||
| Corporate Bonds | — | 766,973,921 | — | 1,2 | 766,973,921 | |||||||||||
| Loan Agreements | — | 53,710,619 | — | 53,710,619 | ||||||||||||
| Municipal Bonds | — | 21,043,200 | — | 21,043,200 | ||||||||||||
| Non-Agency Asset-Backed Securities | — | 50,233,501 | — | 50,233,501 | ||||||||||||
| Non-Agency Collateralized Mortgage Obligations | — | 36,880,381 | — | 36,880,381 | ||||||||||||
| Non-Agency Commercial Mortgage-Backed Securities | — | 114,331,495 | — | 114,331,495 | ||||||||||||
| Sovereign Bonds | — | 116,336,616 | — | 116,336,616 | ||||||||||||
| Supranational Banks | — | 161,601 | — | 161,601 | ||||||||||||
| US Treasury Obligations | — | 370,338,296 | — | 370,338,296 | ||||||||||||
| Options Purchased | — | 5,287,140 | — | 5,287,140 | ||||||||||||
| Short-Term Investments | 26,947,100 | 629,700,000 | — | 656,647,100 | ||||||||||||
| Total Value of Securities Before Options Written | $ | 26,947,100 | $ | 3,097,334,784 | $ | 557,265 | $ | 3,124,839,149 | ||||||||
| Liabilities: | ||||||||||||||||
| Options Written | $ | (17,516 | ) | $ | (7,574,914 | ) | $ | — | $ | (7,592,430 | ) | |||||
| Reverse Repurchase Agreements | — | (173,573 | ) | — | (173,573 | ) | ||||||||||
148
| Optimum Fixed Income Fund | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Derivatives3 | ||||||||||||||||
| Assets: | ||||||||||||||||
| Centrally Cleared Credit Default Swaps | $ | — | $ | 399,777 | $ | — | $ | 399,777 | ||||||||
| Centrally Cleared Interest Rate Swaps | — | 1,382,181 | — | 1,382,181 | ||||||||||||
| Foreign Currency Exchange Contracts | — | 4,534,072 | — | 4,534,072 | ||||||||||||
| Futures Contracts | 10,978,962 | — | — | 10,978,962 | ||||||||||||
| OTC Credit Default Swaps | — | 770,464 | — | 770,464 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Centrally Cleared Credit Default Swaps | $ | — | $ | (33,423 | ) | $ | — | $ | (33,423 | ) | ||||||
| Centrally Cleared Interest Rate Swaps | — | (14,686,229 | ) | — | (14,686,229 | ) | ||||||||||
| Foreign Currency Exchange | ||||||||||||||||
| Contracts | — | (2,731,255 | ) | — | (2,731,255 | ) | ||||||||||
| Futures Contracts | (4,875,080 | ) | — | — | (4,875,080 | ) | ||||||||||
| OTC Credit Default Swaps | — | (120,655 | ) | — | (120,655 | ) | ||||||||||
1The value represents valuations of Russian Common Stocks for which Management has determined include significant unobservable inputs as of March 31, 2023.
2The security that has been valued at zero on the “Schedule of investments” is considered to be Level 3 investment in this table.
3Foreign currency exchange contracts, futures contracts and swap contracts are valued at the unrealized appreciation (depreciation) on the instrument at the year end.
| Optimum International Fund | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Securities | ||||||||||||||||
| Assets: | ||||||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | 85,345 | $ | 34,409,487 | $ | — | $ | 34,494,832 | ||||||||
| Austria | — | 2,536,380 | — | 2,536,380 | ||||||||||||
| Belgium | — | 1,099,254 | — | 1,099,254 | ||||||||||||
| Brazil | 20,703,247 | — | — | 20,703,247 | ||||||||||||
| Canada | 24,281,974 | — | — | 24,281,974 | ||||||||||||
| China/Hong Kong | 9,436,066 | 64,570,050 | — | 74,006,116 | ||||||||||||
| Denmark | — | 29,215,176 | — | 29,215,176 | ||||||||||||
| Egypt | — | 6,360 | — | 6,360 | ||||||||||||
| Finland | — | 4,717,842 | — | 4,717,842 | ||||||||||||
| France | 81,710 | 40,418,944 | — | 40,500,654 | ||||||||||||
| Germany | 2,389,102 | 35,750,702 | — | 38,139,804 | ||||||||||||
| Greece | — | 440,639 | — | 440,639 | ||||||||||||
| Hong Kong | — | 32,698 | — | 32,698 | ||||||||||||
| Hungary | — | 2,254,857 | — | 2,254,857 | ||||||||||||
| India | — | 16,562,101 | 307,522 | 16,869,623 | ||||||||||||
(continues)
149
Notes to financial statements
Optimum Fund Trust
3. Investments (continued)
| Optimum International Fund | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Indonesia | $ | 119,912 | $ | 6,382,499 | $ | — | $ | 6,502,411 | ||||||||
| Iraq | 16,966 | — | — | 16,966 | ||||||||||||
| Ireland | 8,639,416 | 13,925,075 | — | 22,564,491 | ||||||||||||
| Israel | 8,278,340 | 1,922,930 | — | 10,201,270 | ||||||||||||
| Italy | — | 6,746,670 | — | 6,746,670 | ||||||||||||
| Japan | — | 67,752,422 | — | 67,752,422 | ||||||||||||
| Malaysia | 32,385 | 409,155 | — | 441,540 | ||||||||||||
| Mexico | 915,546 | — | — | 915,546 | ||||||||||||
| Netherlands | 3,734,713 | 28,090,507 | — | 31,825,220 | ||||||||||||
| New Zealand | — | 22,028 | — | 22,028 | ||||||||||||
| Norway | 890 | 6,743,385 | — | 6,744,275 | ||||||||||||
| Panama | 3,416,211 | — | — | 3,416,211 | ||||||||||||
| Philippines | 98,532 | 67,301 | — | 165,833 | ||||||||||||
| Poland | — | 1,176,407 | — | 1,176,407 | ||||||||||||
| Portugal | — | 15,781 | — | 15,781 | ||||||||||||
| Republic of Korea | 2,822,160 | 12,715,669 | — | 15,537,829 | ||||||||||||
| Russia | — | — | — | — | ||||||||||||
| Singapore | 2,899,104 | 1,625,487 | — | 4,524,591 | ||||||||||||
| South Africa | 4,624,320 | 3,699,014 | — | 8,323,334 | ||||||||||||
| Spain | — | 11,328,055 | — | 11,328,055 | ||||||||||||
| Sweden | 1,104 | 14,888,323 | — | 14,889,427 | ||||||||||||
| Switzerland | — | 23,241,798 | — | 23,241,798 | ||||||||||||
| Taiwan | 3,699,735 | 25,708,643 | — | 29,408,378 | ||||||||||||
| Thailand | 50,289 | 7,345,338 | — | 7,395,627 | ||||||||||||
| Turkey | 33,526 | 403,850 | — | 437,376 | ||||||||||||
| Ukraine | — | 1,032,331 | — | 1,032,331 | ||||||||||||
| United Arab Emirates | — | 4,037,165 | — | 4,037,165 | ||||||||||||
| United Kingdom | 5,264,431 | 10,424,743 | — | 15,689,174 | ||||||||||||
| United States | 9,683,363 | 1,538,645 | — | 11,222,008 | ||||||||||||
| Exchange-Traded Funds | 2,296,954 | — | — | 2,296,954 | ||||||||||||
| Preferred Stocks | 2,764,245 | — | — | 2,764,245 | ||||||||||||
| Short-Term Investments | 3,556,050 | — | — | 3,556,050 | ||||||||||||
| Total Value of Securities | $ | 119,925,636 | $ | 483,257,711 | $ | 307,522 | $ | 603,490,869 | ||||||||
| Optimum Large Cap Growth Fund | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Securities | ||||||||||||||||
| Assets: | ||||||||||||||||
| Common Stocks | ||||||||||||||||
| Communication Services | $ | 123,358,643 | $ | — | $ | — | $ | 123,358,643 | ||||||||
| Consumer Discretionary | 276,321,451 | — | 715 | 276,322,166 | ||||||||||||
| Consumer Staples | 89,086,747 | — | — | 89,086,747 | ||||||||||||
| Energy | 18,740,540 | — | — | 18,740,540 | ||||||||||||
| Financials | 166,570,947 | 4,510,997 | — | 171,081,944 | ||||||||||||
| Healthcare | 212,463,107 | 6,556,502 | — | 219,019,609 | ||||||||||||
150
| Optimum Large Cap Growth Fund | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Industrials | $ | 124,072,200 | $ | 2,228,084 | $ | — | $ | 126,300,284 | ||||||||
| Information Technology | 712,311,099 | 11,461,028 | — | 723,772,127 | ||||||||||||
| Materials | 12,176,937 | — | — | 12,176,937 | ||||||||||||
| Real Estate | 3,942,157 | — | — | 3,942,157 | ||||||||||||
| Exchange-Traded Fund | 2,812,727 | — | — | 2,812,727 | ||||||||||||
| Rights | 16,013 | — | — | 16,013 | ||||||||||||
| Short-Term Investments | 2,170,143 | — | — | 2,170,143 | ||||||||||||
| Total Value of Securities | $ | 1,744,042,711 | $ | 24,756,611 | $ | 715 | $ | 1,768,800,037 | ||||||||
| Derivatives1 | ||||||||||||||||
| Assets: | ||||||||||||||||
| Foreign Currency Exchange Contracts | $ | — | $ | 24,411 | $ | — | $ | 24,411 | ||||||||
| Liabilities: | ||||||||||||||||
| Foreign Currency Exchange Contracts | $ | — | $ | (24,689 | ) | $ | — | $ | (24,689 | ) | ||||||
1Foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument at the year end.
| Optimum Large Cap Value Fund | ||||||||||||
| Level 1 | Level 2 | Total | ||||||||||
| Securities | ||||||||||||
| Assets: | ||||||||||||
| Common Stocks | ||||||||||||
| Communication Services | $ | 134,012,326 | $ | — | $ | 134,012,326 | ||||||
| Consumer Discretionary | 67,534,471 | — | 67,534,471 | |||||||||
| Consumer Staples | 91,497,331 | 36,939,644 | 128,436,975 | |||||||||
| Energy | 139,030,598 | — | 139,030,598 | |||||||||
| Financials | 445,908,309 | — | 445,908,309 | |||||||||
| Healthcare | 364,617,080 | 3,328,616 | 367,945,696 | |||||||||
| Industrials | 306,005,177 | — | 306,005,177 | |||||||||
| Information Technology | 167,637,272 | — | 167,637,272 | |||||||||
| Materials | 77,330,594 | — | 77,330,594 | |||||||||
| Real Estate | 53,517,817 | — | 53,517,817 | |||||||||
| Utilities | 116,319,112 | — | 116,319,112 | |||||||||
| Short-Term Investments | 31,336,778 | — | 31,336,778 | |||||||||
| Total Value of Securities | $ | 1,994,746,865 | $ | 40,268,260 | $ | 2,035,015,125 | ||||||
| Optimum Small-Mid Cap Growth Fund | ||||||||||||
| Level 1 | Level 3 | Total | ||||||||||
| Securities | ||||||||||||
| Assets: | ||||||||||||
| Common Stocks | ||||||||||||
| Communication Services | $ | 877,733 | $ | — | $ | 877,733 | ||||||
| Consumer Discretionary | 82,051,675 | — | 82,051,675 | |||||||||
| Consumer Staples | 34,034,978 | — | 34,034,978 | |||||||||
(continues)
151
Notes to financial statements
Optimum Fund Trust
3. Investments (continued)
| Optimum Small-Mid Cap Growth Fund | ||||||||||||
| Level 1 | Level 3 | Total | ||||||||||
| Energy | $ | 13,697,317 | $ | — | $ | 13,697,317 | ||||||
| Financials | 39,276,126 | — | 39,276,126 | |||||||||
| Healthcare | 95,032,965 | — | 95,032,965 | |||||||||
| Industrials | 96,330,257 | — | 96,330,257 | |||||||||
| Information Technology | 111,019,633 | — | 111,019,633 | |||||||||
| Materials | 9,743,220 | — | 9,743,220 | |||||||||
| Real Estate | 4,635,149 | — | 4,635,149 | |||||||||
| Convertible Preferred Stock | — | 58,021 | 58,021 | |||||||||
| Warrant | — | — | 1 | — | ||||||||
| Short-Term Investments | 16,452,526 | — | 16,452,526 | |||||||||
| Total Value of Securities | $ | 503,151,579 | $ | 58,021 | $ | 503,209,600 | ||||||
1The security that has been valued at zero on the “Schedule of investments” is considered to be Level 3 investment in this table.
| Optimum Small- Mid Cap Value Fund | ||||
| Level 1 | ||||
| Securities | ||||
| Assets: | ||||
| Common Stocks | $ | 593,967,201 | ||
| Short-Term Investments | 16,209,016 | |||
| Total Value of Securities | $ | 610,176,217 | ||
As a result of utilizing international fair value pricing at March 31, 2023, a portion of Optimum International Fund’s common stock investments were categorized as Level 2.
During the year ended March 31, 2023, there were no transfers into or out of Level 3 investments that had a significant impact to each Fund. Each Fund’s policy is to recognize transfers into or out of Level 3 investments based on fair value at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when a Fund has a significant amount of Level 3 investments at the beginning or end of the year in relation to that Fund’s net assets. Management has determined not to provide a reconciliation of Level 3 investments as the Level 3 investments were not considered significant to each Fund’s net assets at the beginning or end of the period. Management has determined not to provide additional disclosure on Level 3 inputs since the Level 3 investments were not considered significant to each Fund’s net assets at the end of the year. There were no Level 3 investments during the year ended March 31, 2023 for Optimum Large Cap Value Fund and Optimum Small-Mid Cap Value Fund.
152
4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Additionally, distributions from net gains on foreign currency transactions and net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the years ended March 31, 2023 and 2022 were as follows:
| Ordinary income | Long-term capital gains | Total | ||||||||||
| Year ended March 31, 2023: | ||||||||||||
| Optimum Fixed Income Fund | $ | 79,973,020 | $ | — | $ | 79,973,020 | ||||||
| Optimum International Fund | 16,973,814 | — | 16,973,814 | |||||||||
| Optimum Large Cap Growth Fund | — | 74,173,332 | 74,173,332 | |||||||||
| Optimum Large Cap Value Fund | 27,167,122 | 96,862,258 | 124,029,380 | |||||||||
| Optimum Small-Mid Cap Growth Fund | 386,594 | 38,319,895 | 38,706,489 | |||||||||
| Optimum Small-Mid Cap Value Fund | 9,124,827 | 42,751,367 | 51,876,194 | |||||||||
| Year ended March 31, 2022: | ||||||||||||
| Optimum Fixed Income Fund | 54,841,616 | 9,248,156 | 64,089,772 | |||||||||
| Optimum International Fund | 49,533,090 | 85,743,248 | 135,276,338 | |||||||||
| Optimum Large Cap Growth Fund | 36,304,860 | 250,527,574 | 286,832,434 | |||||||||
| Optimum Large Cap Value Fund | 32,078,023 | 114,922,388 | 147,000,411 | |||||||||
| Optimum Small-Mid Cap Growth Fund | 87,598,954 | 117,977,502 | 205,576,456 | |||||||||
| Optimum Small-Mid Cap Value Fund | 33,731,252 | 14,666,162 | 48,397,414 | |||||||||
5. Components of Net Assets on a Tax Basis
As of March 31, 2023, the components of net assets on a tax basis were as follows:
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | ||||||||||
| Shares of beneficial interest | $ | 2,850,382,816 | $ | 782,884,737 | $ | 1,361,197,997 | ||||||
| Undistributed ordinary income | 12,166,170 | 2,991,154 | — | |||||||||
| Undistributed long-term capital gains | — | — | 114,750,219 | |||||||||
| Qualified late year loss deferrals | — | — | (643,351 | ) | ||||||||
| Capital loss carryforwards | (188,490,334 | ) | (132,068,094 | ) | — | |||||||
| Unrealized appreciation (depreciation) of investments, foreign currencies, and derivatives | (237,766,482 | ) | (46,387,926 | ) | 304,092,081 | |||||||
| Net assets | $ | 2,436,292,170 | $ | 607,419,871 | $ | 1,779,396,946 | ||||||
| Optimum Large Cap Value Fund | Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | ||||||||||
| Shares of beneficial interest | $ | 1,509,205,793 | $ | 568,371,279 | $ | 590,563,229 | ||||||
| Undistributed ordinary income | 7,064,870 | — | 3,065,372 | |||||||||
| Undistributed long-term capital gains | 47,266,407 | — | 41,413 | |||||||||
| Qualified late year loss deferrals | — | (967,424 | ) | — | ||||||||
| Capital loss carryforwards | — | (83,095,534 | ) | — | ||||||||
| Unrealized appreciation (depreciation) of investments, foreign currencies, and derivatives | 472,071,157 | 17,219,733 | 17,876,355 | |||||||||
| Net assets | $ | 2,035,608,227 | $ | 501,528,054 | $ | 611,546,369 | ||||||
The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, tax deferral of losses on straddles, mark-to-market of foreign currency exchange contracts, mark-to-market of futures contracts, tax treatment of
(continues)
153
Notes to financial statements
Optimum Fund Trust
5. Components of Net Assets on a Tax Basis (continued)
passive foreign investment companies (PFICs) and securities no longer considered PFICs, tax treatment of swap contracts, paydown gains (losses) of asset- and mortgage-backed securities, and amortization of premium on convertible securities.
Qualified late year ordinary and capital losses (including currency and specified gain/loss items) represent losses realized from January 1, 2023 through March 31, 2023 and November 1, 2022 through March 31, 2023, respectively, that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to the tax treatment of net operating losses, and earnings and profits distributed to shareholders on the redemption of shares. Results of operations and net assets were not affected by these reclassifications. For the year ended March 31, 2023, the Funds recorded the following reclassifications:
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | |||||||||||||||||||
| Paid-in capital | $ | — | $ | — | $ | (3,420,965 | ) | $ | — | $ | (4,286,509 | ) | $ | — | ||||||||||
| Total distributable earnings (loss) | — | — | 3,420,965 | — | 4,286,509 | — | ||||||||||||||||||
At March 31, 2023, capital loss carryforwards available to offset future realized capital gains are as follows:
| Loss carryforward character | ||||||||||||
| Short-term | Long-term | Total | ||||||||||
| Optimum Fixed Income Fund | $ | 101,768,173 | $ | 86,722,161 | $ | 188,490,334 | ||||||
| Optimum International Fund | 43,146,168 | 88,921,926 | 132,068,094 | |||||||||
| Optimum Small-Mid Cap Growth Fund | 83,095,534 | — | 83,095,534 | |||||||||
154
6. Capital Shares
Transactions in capital shares were as follows:
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | ||||||||||||||||||||||
| Year ended | Year ended | Year ended | ||||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/23 | 3/31/22 | 3/31/23 | 3/31/22 | |||||||||||||||||||
| Shares sold: | ||||||||||||||||||||||||
| Class A | 5,575,023 | 215,701 | 981,842 | 19,379 | 2,177,443 | 61,385 | ||||||||||||||||||
| Class C | 133,616 | 483,347 | 27,688 | 36,576 | 53,555 | 47,758 | ||||||||||||||||||
| Institutional Class | 44,516,021 | 55,439,041 | 9,854,933 | 12,374,567 | 21,384,076 | 12,849,994 | ||||||||||||||||||
| Shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||||||||||
| Class A | 241,129 | 46,354 | 40,662 | 68,985 | 166,086 | 174,848 | ||||||||||||||||||
| Class C | 150 | 93,541 | — | 199,366 | 41,817 | 827,280 | ||||||||||||||||||
| Institutional Class | 9,574,267 | 6,532,988 | 1,584,232 | 9,640,249 | 4,262,496 | 10,375,821 | ||||||||||||||||||
| 60,040,206 | 62,810,972 | 12,489,357 | 22,339,122 | 28,085,473 | 24,337,086 | |||||||||||||||||||
| Shares redeemed: | ||||||||||||||||||||||||
| Class A | (1,044,561 | ) | (402,965 | ) | (191,842 | ) | (82,626 | ) | (462,574 | ) | (276,791 | ) | ||||||||||||
| Class C | (7,491,022 | ) | (1,472,911 | ) | (1,340,777 | ) | (270,224 | ) | (3,945,725 | ) | (954,129 | ) | ||||||||||||
| Institutional Class | (69,824,431 | ) | (38,892,090 | ) | (31,334,138 | ) | (7,444,551 | ) | (16,062,177 | ) | (11,697,929 | ) | ||||||||||||
| (78,360,014 | ) | (40,767,966 | ) | (32,866,757 | ) | (7,797,401 | ) | (20,470,476 | ) | (12,928,849 | ) | |||||||||||||
| Net increase (decrease) | (18,319,808 | ) | 22,043,006 | (20,377,400 | ) | 14,541,721 | 7,614,997 | 11,408,237 | ||||||||||||||||
| Optimum Large Cap Value Fund | Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | ||||||||||||||||||||||
| Year ended | Year ended | Year ended | ||||||||||||||||||||||
| 3/31/23 | 3/31/22 | 3/31/23 | 3/31/22 | 3/31/23 | 3/31/22 | |||||||||||||||||||
| Shares sold: | ||||||||||||||||||||||||
| Class A | 1,978,519 | 61,311 | 561,011 | 16,863 | 391,455 | 14,428 | ||||||||||||||||||
| Class C | 19,204 | 45,465 | 20,686 | 17,759 | 5,848 | 10,069 | ||||||||||||||||||
| Institutional Class | 25,200,397 | 14,725,442 | 8,315,253 | 7,825,151 | 7,016,626 | 8,217,523 | ||||||||||||||||||
| Shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||||||||||
| Class A | 177,347 | 82,094 | 84,410 | 92,334 | 53,244 | 14,769 | ||||||||||||||||||
| Class C | 17,470 | 213,249 | 32,568 | 527,940 | 8,670 | 52,519 | ||||||||||||||||||
| Institutional Class | 6,362,453 | 6,813,217 | 3,332,942 | 11,960,991 | 3,835,685 | 2,947,769 | ||||||||||||||||||
| 33,755,390 | 21,940,778 | 12,346,870 | 20,441,038 | 11,311,528 | 11,257,077 | |||||||||||||||||||
| Shares redeemed: | ||||||||||||||||||||||||
| Class A | (494,412 | ) | (216,722 | ) | (118,079 | ) | (72,707 | ) | (93,737 | ) | (58,053 | ) | ||||||||||||
| Class C | (2,855,373 | ) | (682,864 | ) | (1,190,965 | ) | (282,130 | ) | (658,703 | ) | (212,324 | ) | ||||||||||||
| Institutional Class | (20,323,462 | ) | (13,083,114 | ) | (19,808,939 | ) | (5,546,157 | ) | (12,818,566 | ) | (6,386,303 | ) | ||||||||||||
| (23,673,247 | ) | (13,982,700 | ) | (21,117,983 | ) | (5,900,994 | ) | (13,571,006 | ) | (6,656,680 | ) | |||||||||||||
| Net increase (decrease) | 10,082,143 | 7,958,078 | (8,771,113 | ) | 14,540,044 | (2,259,478 | ) | 4,600,397 | ||||||||||||||||
(continues)
155
Notes to financial statements
Optimum Fund Trust
6. Capital Shares (continued)
Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the table above and on the previous page and the “Statements of changes in net assets.” For the years ended March 31, 2023 and 2022, each Fund had the following exchange transactions:
| Exchange Redemptions | Exchange Subscriptions | |||||||||||||||||||
| Class A Shares | Class C Shares | Class A Shares | Institutional Class Shares | Value | ||||||||||||||||
| Optimum Fixed Income Fund | ||||||||||||||||||||
| Year ended | ||||||||||||||||||||
| 3/31/22 | — | 2,980 | 1,440 | 1,539 | $ | 28,533 | ||||||||||||||
| Optimum International Fund | ||||||||||||||||||||
| Year ended | ||||||||||||||||||||
| 3/31/22 | — | 769 | 746 | — | 12,194 | |||||||||||||||
| Optimum Large Cap Growth Fund | ||||||||||||||||||||
| Year ended | ||||||||||||||||||||
| 3/31/22 | 1,765 | 3,658 | 2,163 | 2,189 | 115,652 | |||||||||||||||
| Optimum Large Cap Value Fund | ||||||||||||||||||||
| Year ended | ||||||||||||||||||||
| 3/31/23 | — | 2,445 | — | 2,410 | 46,095 | |||||||||||||||
| 3/31/22 | — | 1,907 | 1,492 | 383 | 39,838 | |||||||||||||||
| Optimum Small-Mid Cap Growth Fund | ||||||||||||||||||||
| Year ended | ||||||||||||||||||||
| 3/31/22 | 686 | 666 | 494 | 580 | 17,780 | |||||||||||||||
| Optimum Small-Mid Cap Value Fund | ||||||||||||||||||||
| Year ended | ||||||||||||||||||||
| 3/31/22 | — | 371 | 316 | — | 4,966 | |||||||||||||||
Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap value Fund did not have exchange transactions for the year ended March 31, 2023.
7. Derivatives
US GAAP requires disclosures that enable investors to understand: (1) how and why an entity uses derivatives; (2) how they are accounted for; and (3) how they affect an entity’s results of operations and financial position.
Foreign Currency Exchange Contracts — Each Fund may enter into foreign currency exchange contracts and foreign cross currency exchange contracts as a way of managing foreign exchange rate risk. Each Fund may enter into these contracts to fix the US dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. Each Fund may also enter into these contracts to hedge the US dollar value of securities it already owns that are denominated in foreign currencies. In addition, each Fund may enter into these contracts to facilitate or expedite the settlement of portfolio transactions. The change in value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The use of foreign currency exchange contracts and foreign cross currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although foreign currency exchange contracts
156
and foreign cross currency exchange contracts limit the risk of loss due to an unfavorable change in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency change favorably. In addition, each Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. Each Fund’s maximum risk of loss from counterparty credit risk is the value of its currency exchanged with the counterparty. The risk is generally mitigated by having a netting arrangement between the Funds and the counterparty and by the posting of collateral by the counterparty to the Funds to cover the Funds’ exposure to the counterparty. During the year ended March 31, 2023, Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap Value Fund did not use foreign currency exchange contracts.
During the year ended March 31, 2023, Optimum Fixed Income Fund and Optimum Large Cap Growth Fund each used foreign currency exchange contracts to hedge the US dollar value of securities it already owns that are denominated in foreign currencies to increase/decrease exposure to foreign currencies.
During the year ended March 31, 2023, Optimum International Fund, Optimum Large Cap Growth Fund, and Optimum Large Cap Value Fund each used foreign currency exchange contracts to facilitate or expedite the settlement of portfolio transactions.
Futures Contracts — A futures contract is an agreement in which the writer (or seller) of the contract agrees to deliver to the buyer an amount of cash or securities equal to a specific dollar amount times the difference between the value of a specific security or index at the close of the last trading day of the contract and the price at which the agreement is made. Optimum Fixed Income Fund may use futures in the normal course of pursuing its investment objective. Optimum Fixed Income Fund may invest in futures contracts to hedge its existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions. Upon entering into a futures contract, the Fund deposits cash or pledges US government securities to a broker, equal to the minimum “initial margin” requirements of the exchange on which the contract is traded. Subsequent payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded daily by the Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts include potential imperfect correlation between the futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments. When investing in futures, there is reduced counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. The Fund posted securities collateral valued at $3,046,939 and $6,900,000 cash collateral as margin for open futures contracts. Securities collateral are presented on the “Schedules of investments.” During the year ended March 31, 2023, Optimum Fixed Income Fund used futures contracts to hedge the Fund’s existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions, as a cash management tool, and to facilitate investments in portfolio securities.
Options Contracts — Optimum Fixed Income Fund may enter into options contracts in the normal course of pursuing its investment objective. The Fund may buy or write options contracts for any number of reasons, including without limitation: to manage each Fund’s exposure to changes in securities prices caused by interest rates or market conditions and foreign currencies; as an efficient means of adjusting each Fund’s overall exposure to certain markets; to protect the value of portfolio securities; and as a cash management tool. The Fund may buy or write call or put options on securities, futures, swaps, swaptions, financial indices, and foreign currencies. When the Fund buys an option, a premium is paid and an asset is recorded and adjusted on a daily basis to reflect the current market value of the option purchased. When the Fund writes an option, a premium is received and a liability is recorded and adjusted on a daily basis to reflect the current market value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. When writing options, the Fund is subject to minimal counterparty risk because the counterparty is only obligated to pay premiums and does not bear the market risk of an unfavorable market change.
During the year ended March 31, 2023, Optimum Fixed Income Fund used options contracts to manage the Fund’s exposure to changes in securities prices caused by interest rates or market conditions, to manage the Fund’s exposure to changes in foreign currencies, to adjust the
(continues)
157
Notes to financial statements
Optimum Fund Trust
7. Derivatives (continued)
Fund’s overall exposure to certain markets, and to receive premiums for writing options.
Swap Contracts — Optimum Fixed Income Fund may enter into currency swap contracts, index swap contracts, inflation swaps, interest rate swap contracts, and CDS contracts in the normal course of pursuing its investment objective. The Fund may invest in interest rate swaps to manage the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. The Fund may use currency swaps to protect against currency fluctuations. The Fund may use inflation swaps to hedge the inflation risk in nominal bonds, thereby creating synthetic inflation-indexed bonds. The Fund may enter into CDS contracts in order to hedge against a credit event, to enhance total return, or to gain exposure to certain securities or markets. Swap agreements are bilaterally negotiated agreements between a Fund and counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements are privately negotiated in the over the counter market (OTC swaps). If the OTC swap entered is one of the swaps identified by a relevant regulator as a swap that is required to be cleared, then it will be cleared through a third party, known as a central counterparty or derivatives clearing organization (centrally cleared swaps).
Interest Rate Swaps. An interest rate swap contract is an exchange of interest rates between counterparties. In one instance, an interest rate swap involves payments received by Optimum Fixed Income Fund from another party based on a variable or floating interest rate, in return for making payments based on a fixed interest rate. An interest rate swap can also work in reverse with the Fund receiving payments based on a fixed interest rate and making payments based on a variable or floating interest rate. Interest rate swaps may be used to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Periodic payments on such contracts are accrued daily and recorded as unrealized appreciation (depreciation) on swap contracts. Upon periodic payment (receipt) or termination of the contract, such amounts are recorded as realized gains or losses on swap contracts. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the interest rate swap contract’s remaining life, to the extent that the amount is positive. This risk is mitigated by (1) for bilateral swap contracts, having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty and (2) for cleared swaps, trading these instruments through a central counterparty.
During the year ended March 31, 2023, Optimum Fixed Income Fund used interest rate swap contracts to manage the Fund’s sensitivity to interest rates or to hedge against changes in interest rates.
Credit Default Swaps. A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). In exchange for the protection offered by the seller of protection, the purchaser of protection agrees to pay the seller of protection a periodic amount at a stated rate that is applied to the notional amount of the CDS contract. In addition, an upfront payment may be made or received by the Fund in connection with an unwinding or assignment of a CDS contract. Upon the occurrence of a credit event, the seller of protection would pay the par (or other agreed-upon) value of the reference security (or basket of securities) to the counterparty. Credit events generally include, among others, bankruptcy, failure to pay, and obligation default.
During the year ended March 31, 2023, Optimum Fixed Income Fund entered into CDS contracts as a purchaser and seller of protection, as a hedge against credit events. Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded daily as unrealized appreciation or depreciation. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the agreement. Initial margin and variation margin are posted to central counterparties for centrally cleared CDS basket trades, as determined by the applicable central counterparty.
As disclosed in the footnotes to the “Schedules of investments,” at March 31, 2023, the notional value of the protection sold was EUR 9,600,000 and USD 40,500,000, which reflects the maximum potential amount Optimum Fixed Income Fund would have been required to make as a seller of credit protection if a credit event had occurred. In addition to serving as the source of the current value of the securities, the quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative if the swap agreement has been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the reference entity’s credit soundness and a greater likelihood of risk of default or other credit event
158
occurring as defined under the terms of the agreement. At March 31, 2023, there were no recourse provisions with third parties to recover any amounts paid under the credit derivative agreement (including any purchased credit protection) nor was any collateral held by the Fund and other third parties which the Fund can obtain in the occurrence of a credit event. At March 31, 2023, net unrealized appreciation of the protection sold was $1,069,095.
CDS contracts may involve greater risks than if Optimum Fixed Income Fund had invested in the reference obligation directly. CDS contracts are subject to general market risk, liquidity risk, counterparty risk, and credit risk. The Fund’s maximum risk of loss from counterparty credit risk, either as the seller of protection or the buyer of protection, is the fair value of the contract. This risk is mitigated by (1) for bilateral swap contracts, having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty, or (2) for cleared swaps, trading these instruments through a central counterparty.
During the year ended March 31, 2023, Optimum Fixed Income Fund used CDS contracts to hedge against credit events and to gain exposure to certain securities or markets.
Swaps Generally. For centrally cleared swaps, payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded by Optimum Fixed Income Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, Optimum Fixed Income Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The value of open swaps may differ from that which would be realized in the event Optimum Fixed Income Fund terminated its position in the contract on a given day. Risks of entering into these contracts include the potential inability of the counterparty to meet the terms of the contracts. This type of risk is generally limited to the amount of favorable movement in the value of the underlying security, instrument, or basket of instruments, if any, at the day of default. Risks also arise from potential losses from adverse market movements and such losses could exceed the unrealized amounts shown on the “Schedules of investments.”
At March 31, 2023, for bilateral derivative contracts, Optimum Fixed Income Fund posted $4,453,743 cash collateral for certain centrally cleared derivatives, which is included in “Cash collateral due from brokers” on the “Statements of assets and liabilities.” The Fund also posted $8,326,183 in securities collateral comprised of US treasury obligations for certain open centrally cleared derivative contracts. At March 31, 2023, for bilateral derivative contracts, the Fund received $1,760,000 in cash collateral, which is included in “Cash collateral due to brokers” on the “Statements of assets and liabilities.” The Fund also posted $3,729,570 in securities collateral comprised of US treasury obligations for certain open bilateral derivative contracts. Cash collateral is included on the “Statements of assets and liabilities” and securities collateral is presented on the “Schedules of investments.”
Fair values of derivative instruments as of March 31, 2023 were as follows:
| Optimum Fixed Income Fund Asset Derivatives Fair Value |
||||||||||||||||
| Statement of Assets and Liabilities Location | Currency Contracts | Interest Rate Contracts | Credit Contracts | Total | ||||||||||||
| Unrealized appreciation on foreign currency exchange contracts | $ | 4,534,072 | $ | — | $ | — | $ | 4,534,072 | ||||||||
| Variation margin due from brokers on futures contracts* | — | 10,978,962 | — | 10,978,962 | ||||||||||||
| Variation margin due from brokers on centrally cleared credit default swap contracts* | — | — | 399,777 | 399,777 | ||||||||||||
| Variation margin due from brokers on centrally cleared interest rate swap contracts* | — | 1,382,181 | — | 1,382,181 | ||||||||||||
| Unrealized appreciation on over the counter credit default swap contracts | — | — | 770,464 | 770,464 | ||||||||||||
| Options purchased, at value** | — | — | 5,287,140 | 5,287,140 | ||||||||||||
| Total | $ | 4,534,072 | $ | 12,361,143 | $ | 6,457,381 | $ | 23,352,596 | ||||||||
(continues)
159
Notes to financial statements
Optimum Fund Trust
7. Derivatives (continued)
| Optimum Fixed Income Fund Liability Derivatives Fair Value |
||||||||||||||||
| Statement of Assets and Liabilities Location | Currency Contracts | Interest Rate Contracts | Credit Contracts | Total | ||||||||||||
| Unrealized depreciation on foreign currency exchange contracts | $ | (2,731,255 | ) | $ | — | $ | — | $ | (2,731,255 | ) | ||||||
| Variation margin due to brokers on futures contracts* | — | (4,875,080 | ) | — | (4,875,080 | ) | ||||||||||
| Variation margin due to brokers on centrally cleared credit default swap contracts* | — | — | (33,423 | ) | (33,423 | ) | ||||||||||
| Variation margin due to brokers on centrally cleared interest rate swap contracts* | — | (14,686,229 | ) | — | (14,686,229 | ) | ||||||||||
| Unrealized depreciation on over the counter credit default swap contracts | — | — | (120,655 | ) | (120,655 | ) | ||||||||||
| Options written, at value | (7,583 | ) | (17,516 | ) | (7,567,331 | ) | (7,592,430 | ) | ||||||||
| Total | $ | (2,738,838 | ) | $ | (19,578,825 | ) | $ | (7,721,409 | ) | $ | (30,039,072 | ) | ||||
*Includes cumulative appreciation (depreciation) of futures contracts, centrally cleared CDS contracts, and centrally cleared swap contracts from the date the contracts were opened through March 31, 2023. Only current day variation margin is reported on Optimum Fixed Income Fund’s “Statements of assets and liabilities.”
**Included with “Investments, at value.”
The effect of derivative instruments on Optimum Fixed Income Fund’s “Statements of operations” for the year ended March 31, 2023 was as follows:
| Net Realized Gain (Loss) on: | ||||||||||||||||||||||||
| Foreign Currency Exchange Contracts | Futures Contracts | Options Purchased | Options Written | Swap Contracts | Total | |||||||||||||||||||
| Currency contracts | $ | 8,392,120 | $ | — | $ | (849,453 | ) | $ | 681,324 | $ | (3,438,436 | ) | $ | 4,785,555 | ||||||||||
| Interest rate contracts | — | (32,628,772 | ) | (376,487 | ) | 1,277,060 | (3,416,506 | ) | (35,144,705 | ) | ||||||||||||||
| Equity contracts | — | — | — | — | 109,661 | 109,661 | ||||||||||||||||||
| Credit contracts | — | (626,281 | ) | — | 326,813 | (990,042 | ) | (1,289,510 | ) | |||||||||||||||
| Total | $ | 8,392,120 | $ | (33,255,053 | ) | $ | (1,225,940 | ) | $ | 2,285,197 | $ | (7,735,323 | ) | $ | (31,538,999 | ) | ||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||
| Foreign Currency Exchange Contracts | Futures Contracts | Options Purchased | Options Written | Swap Contracts | Total | |||||||||||||||||||
| Currency contracts | $ | (1,063,916 | ) | $ | (1,161,881 | ) | $ | 466,343 | $ | (122,509 | ) | $ | — | $ | (1,881,963 | ) | ||||||||
| Interest rate contracts | — | 18,102,541 | 2,090,221 | (313,771 | ) | (6,267,039 | ) | 13,611,952 | ||||||||||||||||
| Credit contracts | — | — | — | — | 774,370 | 774,370 | ||||||||||||||||||
| Total | $ | (1,063,916 | ) | $ | 16,940,660 | $ | 2,556,564 | $ | (436,280 | ) | $ | (5,492,669 | ) | $ | 12,504,359 | |||||||||
160
During the year ended March 31, 2023, Optimum International Fund, Optimum Large Cap Growth Fund, and Optimum Large Cap Value Fund experienced net realized and unrealized gains or losses attributable to foreign currency holdings, which are disclosed on the “Statements of assets and liabilities” and/or “Statements of operations.”
The table below summarizes the average balance of derivative holdings by each Fund during the year ended March 31, 2023:
| Long Derivative Volume | ||||||||||||
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | ||||||||||
| Foreign currency exchange contracts (average notional value) | USD | 49,751,582 | USD | 487,200 | USD | 153,438 | ||||||
| Futures contracts (average notional value) | 464,489,424 | — | — | |||||||||
| Options contracts (average notional value)* | 4,431,446 | — | — | |||||||||
| CDS contracts (average notional value)** | EUR | 2,857,371 | EUR | — | EUR | — | ||||||
| CDS contracts (average notional value)** | USD | 5,150,936 | USD | — | USD | — | ||||||
| Interest rate swap contracts (average notional value) | BRL | 268,418,884 | BRL | — | BRL | — | ||||||
| Interest rate swap contracts (average notional value) | CAD | 29,247,012 | CAD | — | CAD | — | ||||||
| Interest rate swap contracts (average notional value) | EUR | 20,131,315 | EUR | — | EUR | — | ||||||
| Interest rate swap contracts (average notional value) | GBP | 33,647,809 | GBP | — | GBP | — | ||||||
| Interest rate swap contracts (average notional value) | MXN | 403,518,155 | MXN | — | MXN | — | ||||||
| Interest rate swap contracts (average notional value) | USD | 186,391,952 | USD | — | USD | — | ||||||
| Short Derivative Volume | ||||||||||||
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | ||||||||||
| Foreign currency exchange contracts (average notional value) | USD | 243,125,581 | USD | 895,623 | USD | 5,412,655 | ||||||
| Futures contracts (average notional value) | 138,024,145 | — | — | |||||||||
| Options contracts (average notional value)* | 10,546,451 | — | — | |||||||||
| CDS contracts (average notional value)** | EUR | 18,855,378 | EUR | — | EUR | — | ||||||
| CDS contracts (average notional value)** | USD | 50,229,173 | USD | — | USD | — | ||||||
*Long represents purchased options and short represents written options.
**Long represents buying protection and short represents selling protection.
8. Offsetting
Certain Funds entered into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or a similar agreement with certain of its derivative contract counterparties in order to better define its contractual rights and to secure rights that will help certain Funds mitigate its counterparty risk. An ISDA Master Agreement is a bilateral agreement between certain Funds and a counterparty that governs certain over-the-counter derivatives and foreign exchange contracts and typically contains, among other things, collateral posting items and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, certain Funds may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out), including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
For financial reporting purposes, certain Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements on the “Statements of assets and liabilities.”
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Notes to financial statements
Optimum Fund Trust
8. Offsetting (continued)
At March 31, 2023, certain Funds had the following assets and liabilities subject to offsetting provisions:
Offsetting of Financial Assets and Liabilities and Derivative Assets and Liabilities
Optimum Fixed Income Fund
| Counterparty | Gross
Value of Derivative Asset | Gross Value of Derivative Liability | Net Position | |||||||||
| Bank of America Merrill Lynch | $ | 6,061,358 | $ | (4,695,073 | ) | $ | 1,366,285 | |||||
| BNP Paribas | 202,533 | (56,546 | ) | 145,987 | ||||||||
| Citigroup | 107,486 | (89,680 | ) | 17,806 | ||||||||
| Deutsche Bank | 1,369,336 | (290,010 | ) | 1,079,326 | ||||||||
| Goldman Sachs | 70,657 | (105,854 | ) | (35,197 | ) | |||||||
| JPMorgan Chase Bank | 54,473 | (1,955,119 | ) | (1,900,646 | ) | |||||||
| Morgan Stanley Capital | 912,687 | (1,422,511 | ) | (509,824 | ) | |||||||
| TD Bank | 27,858 | — | 27,858 | |||||||||
| Total | $ | 8,806,388 | $ | (8,614,793 | ) | $ | 191,595 | |||||
| Counterparty | Net Position | Fair Value of Non-Cash Collateral Received | Cash Collateral Received(a) | Fair Value of Non-Cash Collateral Pledged | Cash Collateral Pledged | Net Exposure(b) | ||||||||||||||||||
| Bank of America Merrill Lynch | $ | 1,366,285 | $ | — | $ | (1,240,000 | ) | $ | — | $ | — | $ | 126,285 | |||||||||||
| BNP Paribas | 145,987 | — | — | — | — | 145,987 | ||||||||||||||||||
| Citigroup | 17,806 | — | — | — | — | 17,806 | ||||||||||||||||||
| Deutsche Bank | 1,079,326 | — | — | — | — | 1,079,326 | ||||||||||||||||||
| Goldman Sachs | (35,197 | ) | — | — | 35,197 | — | — | |||||||||||||||||
| JPMorgan Chase Bank | (1,900,646 | ) | — | — | 1,900,646 | — | — | |||||||||||||||||
| Morgan Stanley Capital | (509,824 | ) | — | — | 509,074 | — | (750 | ) | ||||||||||||||||
| TD Bank | 27,858 | — | — | — | — | 27,858 | ||||||||||||||||||
| Total | $ | 191,595 | $ | — | $ | (1,240,000 | ) | $ | 2,444,917 | $ | — | $ | 1,396,512 | |||||||||||
Optimum Large Cap Growth Fund
| Counterparty | Gross Value of Derivative Asset | Gross Value of Derivative Liability | Net Position | |||||||||||||||||||||
| JPMorgan Chase Bank | $ | — | $ | (24,689 | ) | $ | (24,689 | ) | ||||||||||||||||
| UBS | 24,411 | — | 24,411 | |||||||||||||||||||||
| Total | $ | 24,411 | $ | (24,689 | ) | $ | (278 | ) | ||||||||||||||||
| Counterparty | Net Position | Fair Value of Non-Cash Collateral Received | Cash Collateral Received(a) | Fair Value of Non-Cash Collateral Pledged | Cash Collateral Pledged | Net Exposure(b) | ||||||||||||||||||
| JPMorgan Chase Bank | $ | (24,689 | ) | $ | — | $ | — | $ | — | $ | — | $ | (24,689 | ) | ||||||||||
| UBS | 24,411 | — | — | — | — | 24,411 | ||||||||||||||||||
| Total | $ | (278 | ) | $ | — | $ | — | $ | — | $ | — | $ | (278 | ) | ||||||||||
Master Repurchase Agreements
Repurchase agreements are entered into by each Fund under master repurchase agreements (each, an MRA). The MRA permits each Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables with collateral held by and/or posted to the counterparty. As a result, one single net payment is created. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Based on the terms of the MRA, each Fund receives securities as collateral with a market value in excess of the repurchase price at
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maturity. Upon a bankruptcy or insolvency of the MRA counterparty, each Fund would recognize a liability with respect to such excess collateral. The liability reflects each Fund's obligation under bankruptcy law to return the excess to the counterparty. As of March 31, 2023, the following table is a summary of each Fund's repurchase agreements by counterparty which are subject to offset under an MRA:
| Optimum Fixed Income Fund | ||||||||||||||||||
| Counterparty | Master Repurchase Agreements | Fair Value of Non-Cash Collateral Received | Cash Collateral Received(a) | Net Collateral Received | Net Exposure(b) | |||||||||||||
| Nomura Securities International | $ | 629,700,000 | $ | (629,700,000) | $ | — | $ | 629,700,000 | $ | — | ||||||||
Reverse Repurchase Agreements
Borrowed bond agreements, repurchase, reverse repurchase transactions, and treasury roll transactions are entered into by Optimum Fixed Income Fund under MRA which permit the Fund, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund. With reverse repurchase transactions, borrowed bond agreements and treasury roll transactions, typically the Fund and the counterparties are permitted to sell, repledge, or use the collateral associated with the transaction. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, the Fund receives or posts securities as collateral with a market value in excess of the repurchase price to be paid or received by the Fund upon the maturity of the transaction. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund is considered an unsecured creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed.
As of March 31, 2023, the following table is a summary of Optimum Fixed Income Fund’s open reverse repurchase agreements by counterparty which are subject to offset under an MRA on a net basis:
| Counterparty | Reverse Repurchase Agreements | Fair Value of Non-Cash Collateral Received | Cash Collateral Received(a) | Net Collateral Received | Net Exposure(b) | |||||||||||||||
| JPMorgan Chase Bank | $ | (173,573 | ) | $ | 173,573 | $ | — | $ | 173,573 | $ | — | |||||||||
In the event the counterparty of securities under an MRA files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted while the other party, or its trustee or receiver, determines whether or not to enforce the Fund’s obligation to repurchase the securities.
(a) The value of the related collateral exceeded the value of the derivatives, repurchase agreements, and securities lending transactions as of March 31, 2023, as applicable.
(b) Net exposure represents the receivable (payable) that would be due from (to) the counterparty in the event of default.
9. Securities Lending
Each Fund, along with other funds in the Delaware Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (1) 102% with respect to US securities and foreign securities that are denominated and payable in US dollars; and (2) 105% with respect to foreign securities. With respect to each loan, if on any business day the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day, which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security on any particular day, may be more or
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Notes to financial statements
Optimum Fund Trust
9. Securities Lending (continued)
less than the value of the security on loan. The collateral percentage with respect to the market value of the loaned security is determined by the security lending agent.
Cash collateral received by each fund of the Trust is generally invested in a series of individual separate accounts, each corresponding to a fund. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by government sponsored enterprises; repurchase agreements collateralized by US Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities, or establishments; obligations of supranational organizations; commercial paper, notes, bonds, and other debt obligations; certificates of deposit, time deposits, and other bank obligations; certain money market funds; and asset-backed securities. Each Fund can also accept US government securities and letters of credit (non-cash collateral) in connection with securities loans.
In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to each Fund or, at the discretion of the lending agent, replace the loaned securities. Each Fund continues to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. Each Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, each Fund receives loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among each Fund, the security lending agent, and the borrower. Each Fund records security lending income net of allocations to the security lending agent and the borrower.
Each Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those circumstances, the value of each Fund’s cash collateral account may be less than the amount each Fund would be required to return to the borrowers of the securities and each Fund would be required to make up for this shortfall.
During the year ended March 31, 2023, each Fund had no securities on loan.
10. Credit and Market Risk
The global outbreak of COVID-19 has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the outbreak, its full economic impact and ongoing effects at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on a Fund’s performance.
Beginning in late February 2022, global financial markets have experienced and may continue to experience significant volatility related to military action by Russia in Ukraine. As a result of this military action, the US and many other countries have imposed sanctions on Russia and certain Russian individuals, banks and corporations. The ongoing hostilities and resulting sanctions are expected to have a severe adverse effect on the region’s economies and more globally, including significant negative impact on markets for certain securities and commodities, such as oil and natural gas. Any cessation of trading on the Russian securities markets will impact the value and liquidity of certain portfolio holdings. The extent and duration of military action, sanctions, and resulting market disruptions are impossible to predict, but could be substantial and prolonged and impact your Funds’ performance.
Investments in equity securities in general are subject to market risks that may cause their prices to fluctuate over time. Fluctuations in the value of equity securities in which the Funds invest will cause the NAV of the Funds to fluctuate.
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Some countries in which the Funds may invest require governmental approval for the repatriation of investment income, capital, or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller, less liquid, and more volatile than the major securities markets in the US. Consequently, acquisition and disposition of securities by the Funds may be inhibited. In addition, a significant portion of the aggregate market value of securities listed on the major securities exchanges in emerging markets is held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Funds.
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. A fund may be subject to a greater risk of rising interest rates when interest rates are low or inflation rates are high or rising.
IBOR is the risk that changes related to the use of the London interbank offered rate (LIBOR) and other interbank offered rate (collectively, IBORs) could have adverse impacts on financial instruments that reference LIBOR (or the corresponding IBOR). The abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR. The use of alternative reference rate products may impact investment strategy performance. These risks may also apply with respect to changes in connection with other IBORs, such as the euro overnight index average (EONIA), which are also the subject of recent reform.
Optimum Fixed Income Fund invests in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s Financial Services LLC, lower than Baa3 by Moody’s Investors Service, Inc., or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
Optimum Fixed Income Fund invests in bank loans and other securities that may subject it to direct indebtedness risk, the risk that the Fund will not receive payment of principal, interest, and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower. Loans that are fully secured offer the Fund more protection than unsecured loans in the event of nonpayment of scheduled interest or principal, although there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower’s obligation, or that the collateral can be liquidated. Some loans or claims may be in default at the time of purchase. Certain of the loans and the other direct indebtedness acquired by the Fund may involve revolving credit facilities or other standby financing commitments that obligate the Fund to pay additional cash on a certain date or on demand. These commitments may require the Fund to increase its investment in a company at a time when the Fund might not otherwise decide to do so (including at a time when the company’s financial condition makes it unlikely that such amounts will be repaid). To the extent that the Fund is committed to advance additional funds, it will at all times hold and maintain cash or other high grade debt obligations in an amount sufficient to meet such commitments. When a loan agreement is purchased, the Fund may pay an assignment fee. On an ongoing basis, the Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan agreement. Prepayment penalty fees are received upon the prepayment of a loan agreement by the borrower. Prepayment penalty, facility, commitment, consent, and amendment fees are recorded to income as earned or paid.
As the Fund may be required to rely upon another lending institution to collect and pass on to the Fund amounts payable with respect to the loan and to enforce the Fund’s rights under the loan and other direct indebtedness, an insolvency, bankruptcy, or reorganization of the lending institution may delay or prevent the Fund from receiving such amounts. The highly leveraged nature of many loans may make them especially vulnerable to adverse changes in economic or market conditions. Investments in such loans and other direct indebtedness may involve additional risk to the Fund. There were no unfunded loan commitments at the year ended March 31, 2023.
Optimum Fixed Income Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction, or through a combination of such approaches. The Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
Optimum Fixed Income Fund invests in fixed income securities whose value is derived from an underlying pool of mortgages or consumer loans. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be
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165
Notes to financial statements
Optimum Fund Trust
10. Credit and Market Risk (continued)
adversely affected by shifts in the market’s perception of the issuers and changes in interest rates. Investors receive principal and interest payments as the underlying mortgages and consumer loans are paid back. Some of these securities are CMOs. CMOs are debt securities issued by US government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the obligations and can result in a loss of premium, if any has been paid. Certain of these securities may be stripped (securities which provide only the principal or interest feature of the underlying security). The yield to maturity on an interest-only CMO is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments (including prepayments) on the related underlying mortgage assets. A rapid rate of principal payments may have a material adverse effect on the Fund’s yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully recoup its initial investment in these securities even if the securities are rated in the highest rating categories.
Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap Value Fund invest a significant portion of their assets in small- and mid-sized companies and may be subject to certain risks associated with ownership of securities of such companies. Investments in small- and mid-sized companies may be more volatile than investments in larger companies for a number of reasons, which include more limited financial resources or a dependence on narrow product lines.
Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund, and Optimum Small-Mid Cap Value Fund may invest in REITs and are subject to the risks associated with that industry. If a Fund holds real estate directly or receives rental income directly from real estate holdings, its tax status as a regulated investment company may be jeopardized. There were no direct real estate holdings during the year ended March 31, 2023. The Funds’ REIT holdings are also affected by interest rate changes, particularly if the REITs they hold use floating rate debt to finance their ongoing operations. The Funds also invest in real estate acquired as a result of ownership of securities or other instruments, including issuers that invest, deal, or otherwise engage in transactions in real estate or interests therein. These instruments may include interests in private equity limited partnerships or limited liability companies that hold real estate investments (Real Estate Limited Partnerships). The Funds will limit their investments in Real Estate Limited Partnerships to 5% of their total assets at the time of purchase.
Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, and Optimum Small-Mid Cap Growth Fund invested in growth stocks (such as those in the technology sector), which reflect projections of future earnings and revenue. These prices may rise or fall dramatically depending on whether those projections are met. These companies’ stock prices may be more volatile, particularly over the short-term.
Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A promulgated under the Securities Act of 1933, as amended (1933 Act), and other securities which may not be readily marketable. The Funds may also invest in securities exempt from registration under Section 4(a)(2) of the 1933 Act, which exempts from registration transactions by an issuer not involving any public offering. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Trust’s Board has delegated to DMC, the day-to-day functions of determining whether individual securities are liquid for purposes of the Funds’ limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Funds’ 15% limit on investments in illiquid securities. Rule 144A, 4(a)(2), and restricted securities have been identified on the “Schedules of investments.”
11. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund's maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund's existing contracts and expects the risk of loss to be remote.
12. Recent Accounting Pronouncements
In March 2020, FASB issued an Accounting Standards Update (ASU), ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. In March 2021, the administrator for LIBOR announced the extension of the publication of a majority of
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the USD LIBOR settings to June 30, 2023. On December 21, 2022, FASB issued ASU 2022-06 to defer the sunset date of Accounting Standards Codification Topic 848 until December 31, 2024. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management is currently evaluating ASU 2020-04 and ASU 2022-06, but does not believe there will be a material impact.
13. New Regulatory Pronouncement
In October 2022, the Securities and Exchange Commission (SEC) adopted a rule and form amendments relating to tailored shareholder reports for mutual funds and ETFs; and fee information in investment company advertisements. The rule and form amendments will require mutual funds and ETFs to transmit streamlined shareholder reports that highlight key information to investors. The rule amendments will require that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective in January 2023 and there is an 18-month transition period after the effective date of the amendment with a compliance date of July 2024.
14. Subsequent Events
Rothschild & Co Asset Management US (“Rothschild & Co”), the prior sub-advisor on Optimum Large Cap Value Fund, recently informed the Fund that Wintrust Financial Corporation (“Wintrust”) entered into an agreement to acquire Rothschild & Co (the “Transaction”). As part of the Transaction, Wintrust merged Rothschild & Co into Great Lakes Advisors, LLC (“Great Lakes”), an investment advisor wholly owned by Wintrust, as of the closing of the Transaction. The Transaction closed on April 3, 2023.
Management has determined that no other material events or transactions occurred subsequent to March 31, 2023, that would require recognition or disclosure in the Funds’ financial statements.
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Report of independent
registered public accounting firm
To the Board of Trustees of Optimum Fund Trust and Shareholders of Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap Value Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap Value Fund (constituting Optimum Fund Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2023, the related statements of operations for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2023 and the financial highlights for each of the five years in the period ended March 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2023 by correspondence with the custodian, transfer agents and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
June 9, 2023
We have served as the auditor of one or more investment companies in Optimum Fund Trust since 2010.
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(Unaudited)
Optimum Fund Trust
Tax Information
The information set forth below is for the Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of the Fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.
All disclosures are based on financial information available as of the date of this annual report and, accordingly are subject to change. For any and all items requiring reporting, it is the intention of the Fund to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
For the fiscal year ended March 31, 2023, the Funds report distributions paid during the year as follows:
| (A) Long-Term Capital Gains Distributions (Tax Basis) | (B) Ordinary Income Distributions* (Tax Basis) | Total Distributions (Tax Basis) | (C) Qualifying Dividends1 | |||||||||||||
| Optimum Fixed Income Fund | — | 100.00 | % | 100.00 | % | — | ||||||||||
| Optimum International Fund | — | 100.00 | % | 100.00 | % | — | ||||||||||
| Optimum Large Cap Growth Fund | 100.00 | % | — | 100.00 | % | — | ||||||||||
| Optimum Large Cap Value Fund | 78.10 | % | 21.90 | % | 100.00 | % | 100.00 | % | ||||||||
| Optimum Small-Mid Cap Growth Fund | 99.00 | % | 1.00 | % | 100.00 | % | 100.00 | % | ||||||||
| Optimum Small-Mid Cap Value Fund | 82.41 | % | 17.59 | % | 100.00 | % | 100.00 | % | ||||||||
(A) and (B) are based on a percentage of the Fund’s total distributions.
1Qualified dividends represent dividends which qualify for the corporate dividends received deduction.
*For the fiscal year ended March 31, 2023, certain dividends paid by the Funds may be subject to a maximum tax rate of 20%. The percentage of dividends paid by the Funds from ordinary income reported as qualified income are as reported in the following table. Complete information will be computed and reported in conjunction with your 2023 Form 1099-DIV.
| Optimum Fixed Income Fund | Optimum International Fund | Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | |||||||||||||||||
| — | 94.83 | % | — | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||||||
For the fiscal year ended March 31, 2023, certain distributions paid by the Funds, determined to be Qualified Interest Income or Qualified Short-Term Capital Gains may be subject to relief from US tax withholding for foreign shareholders, as provided by the American Jobs Creation Act of 2004; the Tax Relief Unemployment Insurance Reauthorization, and Job Creations Act of 2010; and as extended by the American Taxpayer Relief Act of 2012. For the fiscal year ended March 31, 2023, the Funds have reported maximum distributions of Qualified Interest Income and Qualified Short-Term Capital Gains as follows:
| Qualified Interest Income | Qualified Short-Term Capital Gains | |||||||
| Optimum Fixed Income Fund | $ | 51,760,477 | $ | — | ||||
| Optimum Large Cap Value Fund | — | 278,203 | ||||||
Optimum International Fund intends to pass through foreign tax credits in the maximum amount of $1,893,487. The gross foreign source income earned during the fiscal year 2023 by the Fund was $28,313,296.
The percentage of the ordinary dividends reported by Optimum Fixed Income Fund that is treated as a Section 163(j) interest dividend and thus is eligible to be treated as interest income for purposes of Section 163(j) and the regulations thereunder is 84.67%.
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169
Other Fund information
(Unaudited)
Optimum Fund Trust
Board Consideration of Sub-Advisory Agreement with Los Angeles Capital Management LLC at Meeting Held November 30, 2022
At a meeting held on November 30, 2022 (the “Meeting”), the Board of Trustees (the “Board” or “Trustees”), including a majority of the Trustees who are not “interested persons” of Optimum Fund Trust (the “Trust”) or of Delaware Management Company (the “Independent Trustees”) approved a new sub-advisory agreement (the “Sub-Advisory Agreement”) between Delaware Management Company (“DMC” or the “Manager”) and Los Angeles Capital Management LLC (“Los Angeles Capital”), under which Los Angeles Capital would serve as a sub-advisor to the Optimum Large Cap Growth Fund (the “Fund”), replacing ClearBridge Investments, LLC (“ClearBridge”). Los Angeles Capital began serving as a sub-advisor for the Fund effective January 17, 2023.
In reaching the decision to approve the Sub-Advisory Agreement, the Board considered and reviewed information about Los Angeles Capital, including its personnel, operations and financial condition, which had been provided by Los Angeles Capital. The Board also reviewed material furnished by the Manager (with the assistance of LPL Financial LLC), including: a memorandum from the Manager reviewing the Sub-Advisory Agreement and the various services proposed to be rendered by Los Angeles Capital; research and analysis concerning Manager’s proposal of Los Angeles Capital; a description of Los Angeles Capital’s proposed sub-advisory fees under the Sub-Advisory Agreement, along with fees that Los Angeles Capital charges other comparable investment companies or accounts; information concerning Los Angeles Capital’s organizational structure and the experience of its investment management personnel; a “due diligence” summary report describing various material items in relation to Los Angeles Capital’s personnel, organization and policies; a copy of Los Angeles Capital’s Form ADV brochure, summaries of Los Angeles Capital’s compliance policies and procedures and its Code of Ethics; and a copy of the Sub-Advisory Agreement.
In considering such materials, the Independent Trustees received assistance and advice from and met separately with independent counsel. In this regard, the Independent Trustees reviewed with independent legal counsel their duties and obligations in connection with the review of the Sub-Advisory Agreement and discussed, in detail, the matters related to such approval. The materials prepared by Manager specifically in connection with the approval of the Sub-Advisory Agreement were sent to the Independent Trustees in advance of the Meeting. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s decision. This discussion of the information and factors considered by the Board (as well as the discussion above) is not intended to be exhaustive, but rather summarizes certain factors considered by the Board. In view of the wide variety of factors considered, the Board did not, unless otherwise noted, find it practicable to quantify or otherwise assign relative weights to the following factors. In addition, individual Trustees may have assigned different weights to various factors.
Nature, Extent and Quality of Services. In considering the nature, extent and quality of the services to be provided by Los Angeles Capital, the Board specifically considered that the Sub-Advisory Agreement contains substantially similar provisions to those in the prior ClearBridge sub-advisory agreement, except for the provisions relating to the sub-advisory fees. The Board reviewed materials provided by Los Angeles Capital regarding the experience and qualifications of personnel who will be responsible for managing the portion of the Fund to be sub-advised by Los Angeles Capital. The Board also placed weight on the performance of a representative Los Angeles Capital portfolio that utilized the investment process and parameters that would be employed by Los Angeles Capital on behalf of its portion of the Fund (the “Los Angeles Capital Account”). The Board also considered that Los Angeles Capital would serve as a sub-adviser of the Fund with another sub-advisor, American Century. The Board considered the compatibility of the two sub-advisers’ investment philosophies and methodologies that they would each employ for the Fund. Lastly, the Board took into account that Los Angeles Capital uses a quantitative investment approach that seeks to generate excess returns by constructing risk-controlled portfolios that maintain exposures to improving fundamentals, appropriate valuations and characteristics favored in the then-current environment. Based upon these considerations, the Board was satisfied with the nature and quality of the overall services to be provided by Los Angeles Capital to the Fund and its shareholders and was confident in the abilities of Los Angeles Capital to provide quality services to the Fund and its shareholders.
Investment Performance. The Board reviewed information on the performance of the Los Angeles Capital Account over various time periods. The Board also reviewed a “combination analysis” showing various performance metrics that would have resulted from combining the performance of the Los Angeles Capital Account with the performance of American Century in managing its portion of the Fund over various time periods. The Board noted the Manager’s belief, based on the historical combination analysis, that the investment strategy to be employed by Los Angeles Capital on behalf of its sleeve of the Fund would be a good complement to the type of investment philosophy followed by American Century, and that Los Angeles Capital’s investment strategy would provide a better balance to American Century’s investment philosophy as compared the investment strategy utilized by ClearBridge. The Board believed such information and analysis evidenced the benefits to the Fund and quality of portfolio management services expected to be provided by Los Angeles Capital under the Sub-Advisory Agreement.
170
Sub-advisory Fees. In considering the appropriateness of the sub-advisory fees to be charged by Los Angeles Capital, the Board reviewed and considered the sub-advisory fees in light of the nature, extent and quality of the sub-advisory services to be provided by Los Angeles Capital, as more fully described above. The Board noted that Los Angeles Capital’s sub-advisory fees are paid by the Manager and are not additional fees borne by the Fund. The Board also noted that the sub-advisory fees to be paid by the Manager to Los Angeles Capital were the product of arms-length negotiations between the Manager and Los Angeles Capital, and the Board considered the allocation of the investment management fees charged to the Fund between the Manager and Los Angeles Capital in light of the nature, extent and quality of the investment management services provided, and to be provided by, the Manager and Los Angeles Capital. In particular, the Board was provided with a description of fees to be charged by Los Angeles Capital under the Sub-Advisory Agreement for the Fund, which showed them to be lower than the sub-advisory fees charged by ClearBridge under its sub-advisory agreement at the Fund’s current amount of assets under management. The Board considered the impact that the differences in fees would have on the Manager’s profitability, while also noting the current fee waiver that the Manager had put into effect for the Fund. The Board also was provided with information showing that Los Angeles Capital’s sub-advisory fees for the Fund were competitive with those charged by Los Angeles Capital to other comparable investment companies or accounts and was informed by the Manager that Los Angeles Capital’s sub-advisory fees were competitive with fees of other investment managers being considered as possible sub-advisors to the Fund. The Board also noted that the management fee paid by the Fund to the Manager would stay the same at current asset levels. Based upon such facts, the Board believed that the fees to be charged by Los Angeles Capital under the Sub-Advisory Agreement were acceptable in relation to the services to be provided.
Profitability, Economies of Scale and Fall-Out Benefits. Information about Los Angeles Capital’s profitability from its relationship with the Fund was not available because it had not begun to provide services to the Fund. The Trustees noted that economies of scale are shared with the Fund and its shareholders through investment management fee breakpoints so that as the Fund grows in size, its effective investment management fee rate declines, and they also noted that the Manager had put in place a fee waiver for the Fund that was currently in effect. The Board was also provided with information on potential fall-out benefits derived or to be derived by Los Angeles Capital in connection with its relationship to the Fund, such as soft dollar arrangements.
Board Consideration of Sub-Advisory Agreement with Great Lakes Advisors, LLC at Meeting Held March 8, 2023
At a meeting held on March 8, 2023 (the “Meeting”), the Board of Trustees (the “Board” or “Trustees”), including a majority of the Trustees who are not “interested persons” of Optimum Fund Trust (the “Trust”) or of Delaware Management Company (the “Independent Trustees”) approved a new sub-advisory agreement (the “Sub-Advisory Agreement”) between Delaware Management Company (“DMC” or the “Manager”) and Great Lakes Advisors, LLC (“Great Lakes”), under which Great Lakes would serve as a sub-advisor to Optimum Large Cap Value Fund (the “Fund”) after the Transaction (as defined below). The decision to approve a new Sub-Advisory Agreement for Great Lakes arose from a “change of control” of Rothschild & Co. (a prior sub-advisor to the Fund), under applicable provisions of the Investment Company Act of 1940, following the purchase of Rothschild & Co. by Wintrust Financial Corporation (collectively, the “Transaction”). As part of the Transaction, Rothschild & Co. was merged into Great Lakes, which is an investment adviser wholly-owned by Wintrust Financial Corporation. The Transaction closed on April 3, 2023 and Great Lakes began subadvising the Fund at that time. As part of the Transaction, Great Lakes represented to the Board that the existing portfolio management team and investment strategy for Rothschild & Co. would continue to be utilized by Great Lakes for the Fund after the Transaction.
Accordingly, in reaching the decision to approve the Sub-Advisory Agreement, the Board took into account information and materials furnished and discussed throughout the year at quarterly Board meetings with respect to Rothschild & Co., as well as information furnished specifically about Great Lakes, including its personnel, operations and financial condition. The Board also reviewed material furnished by DMC (with the assistance of LPL Financial LLC), including: a review of the investment performance of Rothschild & Co. on the portion of the Fund’s assets (i.e., sleeve of the Fund) it sub-advised; a memorandum from DMC reviewing the Sub-Advisory Agreement and the various services proposed to be rendered by Great Lakes; a description of Great Lakes’ proposed sub-advisory fees under the Sub-Advisory Agreement, along with fees that Great Lakes charges other comparable investment companies or accounts; information concerning Great Lakes’ organizational structure and the experience of its investment management personnel; a “due diligence” summary report describing various material items in relation to Great Lakes’ personnel, organization and policies; a copy of Great Lakes’ Form ADV brochure, summaries of Great Lakes’ compliance policies and procedures and its Code of Ethics; a copy of the Sub-Advisory Agreement; and materials specifically discussing the Transaction.
In considering such materials, the Independent Trustees received assistance and advice from and met separately with independent counsel. In this regard, the Independent Trustees reviewed with independent legal counsel their duties and obligations in connection with the review of the Sub-Advisory Agreement and discussed, in detail, the matters related to such approval. The materials prepared by Management specifically in
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171
Other Fund information
(Unaudited)
Optimum Fund Trust
Board Consideration of Sub-Advisory Agreement with Great Lakes Advisors, LLC at Meeting Held March 8, 2023 (continued)
connection with the approval of the Sub-Advisory Agreement were sent to the Independent Trustees in advance of the Meeting. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s decision. This discussion of the information and factors considered by the Board (as well as the discussion above) is not intended to be exhaustive, but rather summarizes certain factors considered by the Board. In view of the wide variety of factors considered, the Board did not, unless otherwise noted, find it practicable to quantify or otherwise assign relative weights to the following factors. In addition, individual Trustees may have assigned different weights to various factors.
Nature, Extent and Quality of Services. The Board reviewed materials provided by Great Lakes regarding the experience and qualifications of personnel who will be responsible for managing the portion of the Fund to be sub-advised by Great Lakes. In considering the nature, extent and quality of the services to be provided by Great Lakes, the Board specifically considered that the proposed Sub-Advisory Agreement between the Manager and Great Lakes is the same as the Sub-Advisory Agreement that was most recently executed by the Manager and Rothschild on September 26, 2016, except that it has been updated to reflect the ability to approve the Sub-Advisory Agreement at a non-in person Board meeting as permitted by the SEC. The Board put particular emphasis on the fact that Great Lakes represented that it intends to retain Rothschild’s existing portfolio management team (and its existing style and strategy) on the Fund after the acquisition. The Board also considered DMC’s opinion that the Transaction is not expected to have a material impact on the investment capabilities of the investment management team coming from Rothschild & Co. to Great Lakes or its ability to execute its stated investment process, and that DMC expects that Great Lakes should continue to operate and execute business functions in a manner consistent with Rothschild & Co.’s historical precedent. Based upon these considerations, the Board determined that the nature, extent and quality of the services to be provided by Great Lakes under the Sub-Advisory Agreement were satisfactory.
Investment Performance. The Board placed significant emphasis on Rothschild & Co.’s prior investment performance on its sleeve of the Fund. While consideration was given to performance reports and discussions throughout the year, particular attention in assessing performance was given to Rothschild & Co.’s performance on its portion of the Fund to date relative to the Fund’s peers and benchmark. The Board was satisfied with such performance. As noted above, the Board placed weight on Great Lake’s representation that there are no planned changes with respect to the personnel currently responsible for security selection and portfolio management of Rothschild & Co.’s portion of the Fund in connection with the Transaction. The Board believed such information and analysis evidenced the benefits to the Fund of approving Great Lakes as a sub-advisor and the high quality of portfolio management services expected to be provided by Great Lakes under the Sub-Advisory Agreement.
Sub-advisory Fees, Profitability, Economies of Scale and Fall-Out Benefits. The Board was provided with a description of the fees to be charged by Great Lakes under the Sub-Advisory Agreement, which showed them to be identical to the sub-advisory fees from the prior sub-advisory agreement with Rothschild & Co. for the Fund. The Board also was provided with information showing that Great Lakes’ fees were competitive with those charged by Great Lakes to other comparable investment companies or accounts. The Board was informed that Great Lakes may receive certain fall-out benefits in connection with their relationship with the Fund, such as soft-dollar arrangements. The Board also noted that the management fee paid by the Fund to DMC would stay the same at current asset levels, and that DMC’s profitability is not expected to be impacted at current asset levels following approval of the Great Lakes’ Sub-Advisory Agreement. The Board had also been previously provided with profitability information with respect to the portion of the Fund sub-advised by Rothschild & Co. The Trustees also noted that economies of scale are shared with the Fund and its shareholders through investment management fee breakpoints so that as the Fund grows in size, its effective investment management fee rate declines. Based upon such facts, the Board believed that the fees to be charged by Great Lakes under the Sub-Advisory Agreement were fair and reasonable in relation to the services being provided.
172
Form N-PORT and proxy voting information
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT. Each Fund’s Forms N-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800 914-0278; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedules of Investments included in the Funds’ most recent Form N-PORT are available without charge on the Funds’ website at optimummutualfunds.com.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at optimummutualfunds.com/shareholder/proxy-voting-information; and (ii) on the SEC’s website at sec.gov.
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173
Board of trustees and officers addendum
Optimum Fund Trust
A mutual fund is governed by a Board of Trustees, which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor and others that perform services for the fund. The independent fund trustees, in particular, are advocates for shareholder interests. The following is a list of the Trustees and Officers of the Trust with certain background and related information.
| Name, Address, and Birth Date |
Position(s) Held with Fund(s) |
Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Number of Portfolios in Fund Complex1 Overseen by Trustee or Officer |
Other Directorships Held by Trustee or Officer |
| INTERESTED TRUSTEES | |||||
| John Leonard2 100 Independence 610 Market Street Philadelphia, PA 19106-2354 March 1960 |
Trustee, President, and Chief Executive Officer |
Since March 9, 2023 | Executive Director and Global Head of Equities – Macquarie Asset Management3 (2017-Present) Head of Equities and Group Managing Director – UBS Asset Management (2008-2016) |
6 | None |
| Robert Pettman2 100 Independence 610 Market Street Philadelphia, PA 19106-2354 June 1979 |
Trustee | Since June 21, 2019 | Executive Vice President, Product and Platform Management — LPL Financial (Financial services) (2005-Present) |
6 | None |
| INDEPENDENT TRUSTEES | |||||
| Kevin G. Chavers 100 Independence 610 Market Street Philadelphia, PA 19106-2354 August 1963 |
Trustee | Since August 26, 2021 | Private Investor (2021-Present) Managing Director — BlackRock (Asset management) (2011-2021) |
6 | Director — Chimera Investment Corporation (2021-Present) Director —SMBC Americas Holdings, Inc. (2021-Present) Director — Toorak Capital Partners (2021-Present) Director — Freddie Mac (2022-Present) |
| Robert J. Christian 100 Independence 610 Market Street Philadelphia, PA 19106-2354 February 1949 |
Trustee | Trustee since November 1, 2007 |
Private Investor (2006-Present) |
6 | Trustee — FundVantage Trust (34 mutual funds) (2007-Present) Trustee — Third Avenue Trust (3 mutual funds) (2019-Present) Trustee — Third Avenue Variable Series Trust (1 mutual fund) (2019-Present) |
| Dianna Gonzales-Burdin 100 Independence 610 Market Street Philadelphia, PA 19106-2354 August 1961 |
Trustee | Since August 3, 2022 | Private Investor (2021-Present) Managing Director — Strategic Investment Group (1991-2021) |
6 | Director — Heartland Funds (3 mutual funds) (2022-Present) |
174
| Name, Address, and Birth Date |
Position(s) Held with Fund(s) |
Length
of Time Served |
Principal Occupation(s) During Past 5 Years |
Number
of Portfolios in Fund Complex1 Overseen by Trustee or Officer |
Other Directorships Held by Trustee or Officer |
| Mark K. Hancock 100 Independence 610 Market Street Philadelphia, PA 19106-2354 February 1968 |
Trustee | Since August 3, 2022 | President — The Glenmore Group LLC (2016-Present) Managing Director — Goldman Sachs Asset Management (2005-2015) |
6 | None |
| Durant Adams Hunter 100 Independence 610 Market Street Philadelphia, PA 19106-2354 November 1948 |
Trustee | Since July 17, 2003 | Private Investor (2020-Present) Founder — Ridgeway Partners (Executive recruiting) (2004-2020) |
6 | None |
| Pamela J. Moret 100 Independence 610 Market Street Philadelphia, PA 19106-2354 February 1956 |
Chair and Trustee | Chair since January 1, 2022 and Trustee since October 1, 2013 |
Private Investor (2015–Present) Chief Executive Officer — brightpeak financial (2011-2015) Senior Vice President — Thrivent Financial for Lutherans (2002-2015) |
6 | Director — Blue Cross Blue Shield of Minnesota (2014-Present) |
| Stephen P. Mullin 100 Independence 610 Market Street Philadelphia, PA 19106-2354 February 1956 |
Trustee | Since July 17, 2003 | Principal — Econsult Solutions, Inc. (2020-Present) President — Econsult Solutions, Inc. (2013-2020) |
6 | None |
| Edward Ramos 100 Independence 610 Market Street Philadelphia, PA 19106-2354 March 1967 |
Trustee | Since August 3, 2022 | Private Investor (2022-Present) Head of External Advisors/Diversity Portfolio Management — New Jersey Division of Investment (2020-2022) Chief Investment Officer Fundamental Equities — Cornerstone Capital Management (2011-2017) |
6 | None |
| Robert A. Rudell 100 Independence 610 Market Street Philadelphia, PA 19106-2354 September 1948 |
Trustee | Since July 17, 2003 | Private Investor (2002-Present) |
6 | Director and Independent Chairman — Heartland Funds (3 mutual funds) (2005-Present) |
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175
Board of trustees and officers addendum
Optimum Fund Trust
| Name, Address, and Birth Date |
Position(s) Held with Fund(s) |
Length
of Time Served |
Principal Occupation(s) During Past 5 Years |
Number
of Portfolios in Fund Complex1 Overseen by Trustee or Officer |
Other Directorships Held by Trustee or Officer |
| Susan M. Stalnecker 100 Independence 610 Market Street Philadelphia, PA 19106-2354 January 1953 |
Trustee | Since December 14, 2016 |
Senior Advisor — Boston Consulting Group (2016-Present) Vice President — Productivity & Shared Services — E.I. du Pont de Nemours and Company (2012-2016) Vice President and Treasurer — E.I. du Pont de Nemours and Company (2006-2012) |
6 | Trustee — Duke Health System (2010-Present) Director — Leidos (2016-Present) Director — Bioventus (2018-Present) |
| OFFICERS | |||||
| David F. Connor 100 Independence 610 Market Street Philadelphia, PA 19106-2354 December 1963 |
Senior Vice President and Secretary |
Senior Vice President since May 2013; Secretary since October 2005 |
David F. Connor has served in various capacities at different times at Macquarie Asset Management Public Investments.3 |
6 | None4 |
| Daniel V. Geatens 100 Independence 610 Market Street Philadelphia, PA 19106-2354 October 1972 |
Senior Vice President, Treasurer, and Chief Financial Officer |
Treasurer since September 20, 2007; Senior Vice President and Chief Financial Officer since December 13, 2019 |
Daniel V. Geatens has served in various capacities at different times at Macquarie Asset Management Public Investments.3 |
6 | None4 |
| A.G. Ciavarelli 100 Independence 610 Market Street Philadelphia, PA 19106-2354 July 1972 |
Senior Vice President, General Counsel, and Assistant Secretary |
Senior Vice President and General Counsel since June 2021; Assistant Secretary since December 2004 |
A.G. Ciavarelli has served in various capacities at different times at Macquarie Asset Management Public Investments.3 |
6 | None |
| 1 | The term “Fund Complex” refers to the Funds in the Optimum Fund Trust. |
| 2 | “Interested persons” of the Funds by virtue of their executive and management positions or relationships with the Fund’s service providers or sub-service providers. |
| 3 | Macquarie Asset Management is the marketing name for Macquarie Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment advisor, principal underwriter, and its transfer agent. |
| 4 | Messrs. Connor and Geatens also serve in similar capacities for the Delaware Funds® by Macquarie, a fund complex that has the same manager, principal underwriter, and transfer agent as the Trust. |
The Statement of Additional Information for the Funds includes additional information about the Trustees and Officers and is available, without charge, upon request by calling your financial advisor or 800 914-0278.
176
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| (2873003) | Cat.#157905 5/23 |
| AR-901-0523 | Printed in the USA |
Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on the Optimum Mutual Funds’ Internet Web site at www.optimummutualfunds.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this Web site within five business days of such amendment or waiver and will remain on the Web site for at least 12 months.
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees/Directors has determined that certain members of the registrant’s Audit Committee are audit committee financial experts, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and financial statements;
b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial reporting; and
e. An understanding of audit committee functions.
An “audit committee financial expert” shall have acquired such attributes through:
a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;
c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or
d. Other relevant experience.
The registrant’s Board of Trustees/Directors has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees/Directors or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.
The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:
Robert J. Christian
Pamela J. Moret
Edward Ramos
Susan M. Stalnecker, Chair
Item 4. Principal Accountant Fees and Services
(a) Audit fees.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $173,792 for the fiscal year ended March 31, 2023.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $163,955 for the fiscal year ended March 31, 2022.
(b) Audit-related fees.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended March 31, 2023.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $2,050,189 for the registrant’s fiscal year ended March 31, 2023. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: year-end audit procedures; group reporting and subsidiary statutory audits.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended March 31, 2022.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $1,134,001 for the registrant’s fiscal year ended March 31, 2022. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: year end audit procedures; group reporting and subsidiary statutory audits.
(c) Tax fees.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $31,853 for the fiscal year ended March 31, 2022. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2023.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $30,050 for the fiscal year ended March 31, 2022. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2022.
(d) All other fees.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended March 31, 2023.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2023. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended March 31, 2022.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2022. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
(e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Optimum Fund Trust.
| Service | Range of Fees |
| Audit Services | |
| Statutory audits or financial audits for new Funds | up to $50,000 per Fund |
| Services associated with SEC registration statements (e.g., Form N-1A, Form N-14, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end Fund offerings, consents), and assistance in responding to SEC comment letters | up to $10,000 per Fund |
| Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit-related services” rather than “audit services”) | up to $25,000 in the aggregate |
| Audit-Related Services | |
| Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and /or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit services” rather than “audit-related services”) | up to $25,000 in the aggregate |
| Tax Services | |
| U.S. federal, state and local and international tax planning and advice (e.g., consulting on statutory, regulatory or administrative developments, evaluation of Funds’ tax compliance function, etc.) | up to $25,000 in the aggregate |
| U.S. federal, state and local tax compliance (e.g., excise distribution reviews, etc.) | up to $5,000 per Fund |
| Review of federal, state, local and international income, franchise and other tax returns | up to $5,000 per Fund |
Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.
| Service | Range of Fees |
| Non-Audit Services | |
| Services associated with periodic reports and other documents filed with the SEC and assistance in responding to SEC comment letters | up to $10,000 in the aggregate |
The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $9,044,000 and $9,044,000 for the registrant’s fiscal years ended March 31, 2023 and March 31, 2022, respectively.
(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)) and provide reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable
Item 13. Exhibits
| (a) | (1) | Code of Ethics |
Not applicable.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
| (b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT. |
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.
OPTIMUM FUND TRUST
| /s/JOHN LEONARD | ||
| By: | John Leonard | |
| Title: | President and Chief Executive Officer | |
| Date: | June 9, 2023 | |
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.
| /s/JOHN LEONARD | ||
| By: | John Leonard | |
| Title: | President and Chief Executive Officer | |
| Date: | June 9, 2023 | |
| /s/DANIEL V. GEATENS | ||
| By: | Daniel V. Geatens | |
| Title: | Chief Financial Officer | |
| Date: | June 9, 2023 | |