N-CSRS 1 d24164dncsrs.htm VALUED ADVISERS TRUST Valued Advisers Trust

 

 

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 811-22208

 

 

Valued Advisers Trust

(Exact name of registrant as specified in charter)

 

 

Huntington Asset Services, Inc. 2960 N. Meridian Street, Suite 300 Indianapolis, IN 46208

(Address of principal executive offices) (Zip code)

 

 

Capitol Services, Inc.

615 S. Dupont Hwy.

Dover, DE 19901

(Name and address of agent for service)

With a copy to:

John H. Lively, Esq.

The Law Offices of John H. Lively & Associates, Inc.

A member firm of The 1940 Act Law GroupTM

11300 Tomahawk Creek Parkway,

Suite 310

Leawood, KS 66221

 

 

Registrant’s telephone number, including area code: 317-917-7000

Date of fiscal year end: 5/31

Date of reporting period: 11/30/15

 

 

 

Item 1. Reports to Stockholders.

SEMI-ANNUAL REPORT

November 30, 2015

BFS Equity Fund

 

LOGO

 

185 Asylum Street  ●  City Place II  ●  Hartford, CT 06103  ●  (855) 575-2430

 

  

 

 

Letter to Shareholders

Dear Fellow Shareholders,

Greetings in the New Year! This annual report covers the six-month period June 1, 2015 through November 30, 2015.

On June 1, 2015, the BFS Equity Fund (the “Fund”) had net assets of $20.2 million. During the course of the last six months, the net assets of the Fund increased 16% to $23.4 million as of November 30, 2015. This growth was driven by both inflows from investors into the Fund as well as by the modest positive investment returns achieved by the Fund over the last six months. As of November 30, 2015, there were approximately 515 investors in the Fund.

Numerous global economic and geo-political challenges continued to face U.S. stock markets during the period under review, which resulted in a slightly negative return for the S&P 500® Index (“S&P 500”) and Dow Jones Industrial Average® (“Dow Jones”). The Fund, however, achieved a positive total return of 0.51% for the six-month period June 1, 2015 through November 30, 2015. The Fund outperformed the negative total returns of both the S&P 500 of -0.21% and the Dow Jones of -0.37% for that same period.

This report includes a commentary from the Lead Portfolio Manager, Tim Foster, and Co-Portfolio Managers, Tom Sargent and Keith LaRose. You will also find a listing of the portfolio holdings as of November 30, 2015, as well as financial statements and detailed information about the performance and positioning of the Fund.

We view the stock market over the next year with somewhat more caution than a year ago. The slowdown in the Chinese economy and the devaluation in the yuan is one of the major concerns of investors, as the robust Chinese economy has been one of the key engines of global economic growth over the recent past. Steeply declining energy and commodity prices are seen as a possible foreshadowing of a global deflationary spiral, which brings back memories of the devastation caused by the Great Depression. Another cause for concern is that the Federal Reserve Bank has become less accommodating, and its decision to raise the Fed Funds rate in December (and hints that the Fed Funds will continue to rise modestly in 2016) also adds to investor anxiety. Finally, the manufacturing and industrial sectors of the U.S. economy are slowing, which may mean lower real GDP growth in 2016.

On the geo-political side, there are worrisome tensions in many parts of the globe. Russia’s introduction of its military into the Middle East for the first time in many decades and the recent sale of sophisticated SAM missiles to Iran are examples of belligerent foreign policies. China’s aggressive actions in the South China Sea are another cause of investor anxiety, as is the raging cauldron in the Middle East – nuclear weapons within Iran’s reach, the gains of ISIS, and the re-emergence of Al-Qaeda.

 

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On the positive side, we do not see a recession materializing in 2016. 2.7 million jobs were created in the U.S. in 2015, with the 4th quarter’s job growth very robust, averaging 284,000 new jobs monthly during the period. The consumer sector of the U.S. economy, which accounts for more than 70% of GDP, appears to be in good shape. In regard to a rising trajectory of interest rates in 2016, it is likely that the Federal Reserve will hold off raising interest rates in early 2016. But even with modestly higher interest rates in 2016, with a Fed Funds rate of perhaps 1%, it is hard to see this negatively affecting the U.S. economy or the stock market.

Although U.S. corporate earnings remained basically flat in 2015 due to the strength of the dollar and to reduced earnings from the energy sector, the operating earnings for the S&P 500 are projected to increase approximately 3-5% in 2016. With operating earnings for the S&P 500 forecast at $125, the current P/E ratio for the S&P 500 is 15 – below the 45-year average P/E of 16.5. While the market is not as inexpensive as it was in 2012 and early 2013, we do not believe that it is overvalued, as some might argue. Certain sectors are very expensive – social media, cybersecurity, certain biotechnology segments, among others – but there are also many quality companies the stock prices of which are, in our view, very reasonably valued.

Despite the market’s nasty January sell-off, after the period covered by this report, we remain cautiously optimistic that there is a reasonable chance that the stock market will rebound later in the year and that the bull market can continue for a seventh year.

In closing, it is important to reiterate our belief that our investment strategy of investing in quality growth stocks purchased with a risk-mitigating approach and positioned to provide a margin of safety in the case of economic or market weakness is effective over the longer term. 37 of the 44 companies which the Fund owned as of November 30 2015 pay dividends, and a considerable number are so-called “dividend aristocrats” – companies that have increased their dividend payouts annually for the past 25 years. We believe the Fund, with ownership of shares in quality companies with strong brands, good balance sheets, professional management, and robust cash flow, should be able to withstand market corrections, even bear markets, and perform well over the longer term.

The Portfolio Managers of the BFS Equity Fund and I are shareholders together with you. We thank you for the trust that you have placed in us to manage your assets.

Sincerely,

Robert H. Bradley

Chairman

Bradley, Foster & Sargent, Inc.

 

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Portfolio Managers’ Letter

TO OUR SHAREHOLDERS

For the six month period from June 1st 2015 to November 30th, 2015 the BFS Equity Fund returned +0.51%. Over the same period, both the S&P 500® Index (“S&P 500”) and the Dow Jones Industrial Average produced negative total returns of -0.21% and -0.37%, respectively. These negative returns for the market reflect a marked shift in investor psychology from optimism about the seven year economic recovery since 2008 to concern that the recovery cycle may indeed be over. During the period, we are pleased the Fund produced a modest positive return in the face of generally declining stock prices.

MARKET COMMENTARY

For the past seven years, the trend has been your friend in the equity markets, but over the past six months the duration and the magnitude of the stock market recovery extended into a loftier zone and seemed to run out of oxygen. While the decline in the benchmark indices was hardly measurable over the full six month period, in the interim the market experienced a sharp 12% correction. In a virtual Deja vu of the 10% correction in October of 2014, the reality of the signaled end to the zero interest rate policy of the Federal Reserve, as well as the continued inflating value of the U.S. dollar and ensuing commodity price collapse, dashed earnings prospects forcing the market to test the 2014 low.

Perceived risks ballooned through 2015 and complacency evaporated. Among the many market concerns, the slowdown in global growth was first and foremost. In the US, Real GDP growth declined from 3.9% in the second quarter to an estimated 1.5% in the fourth quarter. In China, growth slowed to about 6.0% (down from almost twice that a few years ago), prompting policy makers to devalue the Yuan versus the dollar. The dollar strengthened versus almost every global currency with the biggest impact stemming from the Yuan, the Euro and the Yen. For commodities priced in dollars, like oil, this meant a sharp drop in price and slashing of capital spending budgets. For U.S. manufacturers of everything from jet engines to tractors and bulldozers, the dollar strength means a competitive disadvantage for global pricing. For U.S. companies doing business across the globe, translating foreign profits back to stronger U.S. dollars means fewer dollars – hence lower profits. Estimates for corporate profits, which at the start of 2015 were optimistic at high single digit or low double digit comparisons, collapsed to -3.5% for the fourth quarter of 2015.

 

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When the market sells at a reasonable multiple relative to history and to prevailing interest rates, as the market currently does at about 16 times forward twelve month expected earnings, then further price appreciation is most likely to be driven by earnings. The flattening of earnings expectations seems fairly reflected by the flattening out in the market’s advance.

With little pricing power to be had in this near zero inflation environment, revenue growth has been nearly nonexistent. If revenue growth can’t drive profits higher, then growth will have to come from margins. But pretax margins are already at record highs of about 10% – what will drive margins higher from here? The substitution of capital for labor has historically been a primary driver of productivity, but as labor markets tighten (unemployment has declined from 10% at the start of this cycle to now 5%), the cost of labor will inevitably go up thereby putting downward pressure on margins. Witness the public and private employees that have recently benefited from higher mandated minimum wages. Lean manufacturing practices have come a long way and further improvements can always be found, but the impact of tighter labor will likely pressure margins lower.

INVESTMENT STRATEGY

The outcome of this confounding economic stew has been poor performance from the economically sensitive sectors like Basic Materials, Energy, Manufacturing and Transportation, as well as a laser like focus on the few large companies that can show genuine revenue growth. Among these names, Amazon, Alphabet (formerly Google), Facebook and Netflix stand out. For calendar 2015, the top ten stocks in the S&P 500 (including these names) returned 17% while the next 490 names declined by 5%. A market characterized by a handful of winners amidst a majority of declining names is generally not a healthy market. In 2015, a Growth-At-Any-Price (GAAP) strategy was highly rewarded. Now, valuations of these winning names are well in excess of both the current market mean valuation as well as historical means. Preservation of capital conflicts with reaching for high returns, but is an important objective of the BFS Equity Fund strategy. The lessons of the “Tech Wreck” of 2002 have not been forgotten and in the very long run, everything reverts to the mean. Riding a P/E (Price to Earnings multiple) of over 100 back to a market mean of 16 is a painful experience – one which virtually every technology stock from the turn of the millennium experienced. We view the challenge in the coming quarters as threefold: One, the quest for attractive Growth-At-A-Reasonable-Price (GARP)

 

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candidates; Two, seeking out those contrarian high quality names that suffered the headwinds of the strength of the dollar and the softness of commodity prices and the weak manufacturing economy; and Three, the hunt for event driven bargains. It can be anyone’s guess where consumers may spend their price-at-the-pump energy savings, or how long El Nino will last and the effect on crop prices. How long does it take to win back consumers from either a food or pharmaceutical contamination issue or manufacturing setback? The market is often impatient about negative events. We do a lot of homework on great companies that are priced out of our valuation parameters. If a negative event can provide the right price, our mission is to determine the extent of the problem and figure out when and if the stock might return to its former unblemished valuation. Among the criteria that drive buy and sell decisions throughout the markets these days, patience is a fallen angel. In our view, good companies at good prices plus a little patience is often the formula for success.

INVESTMENT COMMENTARY

As the six plus year bull market since March 2009 stalled out during the past six months, our forecast looking forward is more tentative. Stay with the winners? Or dig for new value? Growth clearly outperformed value over the period, but markets are finicky and leadership often rotates. We have given up on some ideas that did not work. We have added some new names for growth, but we are also shopping among some of last year’s least favorite stocks where we believe fundamental changes have occurred which should lead to better performance going forward.

Importantly, we believe the key underpinnings for positive equity performance are still in place. The economy is growing – we think Real GDP growth should be in the 2+% range. The Fed is still friendly – we view the symbolic December 0.25% rate rise as more of a slight backing off of the accelerator vs. a tap on the brake. Inflation is below the Fed target – CPI is still below the Fed’s 2% target. The market valuation is neutral – while some valuation metrics are clearly lofty, the current P/E multiple of 16 is virtually at the 30 year mean. Lastly, amidst much global conflict and uncertainty, investing in U.S. dollars, in U.S. companies and in the U.S. regulatory environment continues to be a relatively good bet.

Technology

The Technology sector was our heaviest weighted sector at 24.7%, higher than the S&P 500 at 20.9%. Both our overweighting, as well as our stock

 

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selections, helped the Technology sector provide the highest sector contribution of +8.1% vs. the S&P contribution of +3.0%. Our largest position and top performer was Alphabet (formerly Google, at +39.9%) followed by Microsoft (+17.5%) and Adobe (+15.6%). Apple (-8.3%) was, surprisingly, our weakest tech holding.

Healthcare

Our second largest sector weighting was Healthcare at 16.5% versus 14.6% for the S&P. As pre-election politics heated up, so did fears over government controlled pricing and the sector produced a negative return of -5.3% for the Fund and -4.4% for the S&P. All of the pharmaceutical producers lost ground with Novartis dropping -17.0%. Biotech fared no better with all three of our holdings – Biogen, Celgene and Gilead – all contributing single digit losses. Thermo Fisher had the best return at +7.0% followed by well diversified Johnson & Johnson at +2.6%.

Consumer Discretionary

The Consumer Discretionary sector was the best S&P sector performer at +6.7%. The Fund’s discretionary holdings fell slightly shy of that at +6.2%. We were somewhat overweight the sector at 14.5% versus 13.1% for the S&P. Nike (+30.4%), Home Depot (+21.4%) and Starbucks (+18.9%) were our top performers. Surprising news from Disney that ESPN subscriptions actually declined rocked the media industry, but Disney managed a +3.4% gain. Our biggest surprise and detractor from performance was Polaris, which declined -22.7%. Polaris battled high currency headwinds, a manufacturing glitch in their new painting facility and, finally, the warmest December on record. While we have evoked the three strikes and you’re out rule in the past, we believe these events could easily shift from headwinds to tailwinds in future quarters and we have added to our position.

Industrials

The manufacturing economy weakened through the second and third quarters of this year causing us to narrow our overweighting to 12.4% compared to the S&P 500 Industrial sector weighting of 10.1%. The sector contributed zero to returns for the S&P and a modest loss of -0.4% for the Fund. We were pleased to see the market come to appreciate the massive restructuring at GE with the stock gaining +11.7%. Danaher as well announced a major acquisition of Pall Corp and a two way split along industrial and life sciences lines. The market liked

 

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the idea and the stock gained +12.0%. The strong dollar hurt United Technologies (-17.0%) and the collapse of commodity prices drove Union Pacific down -15.7%.

Consumer Staples

Always liking the defensive characteristics of the Consumer Staples sector, we overweighted the sector 11.1% versus the S&P at 9.5%. Positive attribution from stock selection helped push the Fund’s sector return to +5.8% versus the S&P at +2.6%. Constellation Brands led the sector at +19.6%. Our favorite retailer, Costco, contributed +13.8%. CVS (-7.5%) and Nestle (-1.8%) both lost a little ground.

Financials

Although bank balance sheets continued to improve and bank loan growth accelerated to about 8%, the S&P 500 Financial sector showed a modest return of +0.7%. The Fund’s Financial sector return was slightly better at +1.8%. Our weighting was well below the S&P weighting at 10.9% versus 16.6% for the S&P. The world of ZIRP (Zero Interest Rate Policy) has been a major headwind for the banking industry. M&T Bank finally gained approval for the acquisition of Hudson City Bancorp and gained +4.9%. American Express, approaching the end of their Costco partnership, lost -2.4%.

Energy

A couple of years ago, we would never have forecast the implosion of energy prices we have seen, but the strong dollar, the game changing productivity of shale drilling in the U.S. and OPEC pumping flat out, all conspired to drive oil and gas prices to multi-year lows. Anticipating the cyclical nature of commodity oriented businesses, we slightly overweighted the sector at 8.6% versus the S&P at 7.1%, believing most of the damage had been done. It appears we are still too early as Energy was the worst performing S&P sector (-11.3%). The Fund fared better, declining a more modest -6.5%. With the industry bleeding globally, we stuck with the biggest and the best: Exxon (-0.6%), Schlumberger (-13.4%) and EOG (-5.6%).

Materials, Telecommunications and Utilities

Combined, these sectors represent about 8.1% of the S&P 500. We had no exposure in the Fund to these sectors at the end of the period. Similar to our view of the cyclical nature of energy stocks, we thought there might (and may still) be an opportunity in gold. We stuck our toe in the water with a small position in Agnico Eagle Mines (-27.4%). It didn’t feel very good, so we got out!

 

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CLOSING COMMENTS

The Fed has taken its first step in a return to more normal interest rate policy by raising the Fed Funds rate by a symbolic 25 basis points. We view this positively as the Fed recognizes growing underlying strength in the economy and labor markets. The U. S. dollar’s strength provides great purchasing power and a relative safe haven global currency. Low energy and commodity prices lowers the price of cost of goods sold, as well as living expenses for consumers. Technological advances in data processing, life sciences, communications and manufacturing techniques provide important venues for growth. These are the opportunities. Terror, politics, regulations, loss in confidence – the risks are many. There are compelling cases to be both bullish and bearish. Within the BFS Equity Fund, we have attempted to achieve a balance between growth and defensive positioning. We, at Bradley, Foster & Sargent, Inc., look forward to serving you through our management of the BFS Equity Fund. Thank you for placing your capital, along with ours, under our care.

 

Timothy Foster    Keith LaRose    Thomas Sargent
Lead Portfolio Manager    Co-Portfolio Manager    Co-Portfolio Manager

 

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SEMI-ANNUAL PERFORMANCE REVIEW

(UNAUDITED)

The Fund outperformed the S&P 500 and the Dow Jones Industrial Average for the six-month period June 1, 2015 through November 30, 2015, returning +0.51% versus -0.21% for the S&P 500 and -0.37% for the Dow Jones Industrial Average.

Key Detractors from Relative Results

 

  •  

Basic Materials was the Fund’s weakest sector – by far. Our single holding of Agnico Eagle Mines declined by -27.4%. Fortunately, it was a small position and has since been eliminated. Similarly, we had no exposure to the Telecommunications sector which produced negative returns for the S&P.

  •  

The normally reliable Healthcare sector was disappointing. We were slightly overweight by 2 percentage points and had slightly worse returns versus the S&P 500 at -5.3% versus -4.4%. Both our traditional pharmaceuticals, as well as biotech holdings, produced negative returns.

Key Contributors to Relative Results

 

  •  

The Technology sector provided the largest contribution to returns relative to the S&P 500. Both our overweighting of the sector, as well as our stock selection, contributed to the outperformance. Our largest position and top performer was Alphabet (formerly Google, at +39.9%) followed by Microsoft (+17.5%) and Adobe (+15.6%).

  •  

While we were only modestly overweight the Consumer Staples sector, our stock selection significantly outperformed the S&P 500. Constellation Brands led the sector at +19.6%. Our favorite retailer, Costco, contributed +13.8%.

  •  

In the Energy sector, which had negative returns for both the Fund and the S&P 500, our stock selection helped mitigate the damage with a negative contribution of -6.5% versus the S&P 500 at -11.3%. The biggest and the best, Exxon, drove the relative contribution.

FUND INFORMATION

ASSET ALLOCATION

(as a percentage of total investments)

 

LOGO

 

TEN LARGEST HOLDINGS (%)

    FUND  

Alphabet Inc. Class A

      3.6   

Danaher

      3.1   

Apple Inc.

      3.1   

Microsoft

      2.8   

General Electric

      2.6   

Nike Inc. Class B

      2.6   

Mastercard Inc. Class A

      2.5   

Polaris Industries Inc.

      2.5   

United Technologies

      2.5   

Walt Disney

      2.4   

 

SECTOR DIVERSIFICATION (%)

   FUND     S&P 500  

Technology

     24.7        20.9   

Healthcare

     16.5        14.6   

Consumer Discretionary

     14.5        13.1   

Industrial

     12.4        10.1   

Consumer Staples

     11.1        9.5   

Financials

     10.9        16.6   

Energy

     8.6        7.1   

Cash Equivalents

     1.3        0.0   

Materials

     0.0        2.9   

Telecommunication Services

     0.0        2.3   

Utilities

     0.0        2.9   

 

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Investment Results (Unaudited)

Total Returns(a)

(For the periods ended November 30, 2015)

               

Annualized

  
    6 Months     One Year     Since Inception
(November 8, 2013)		  

BFS Equity Fund

     0.51%        4.75%        8.32%   

S&P 500® Index(b)

     -0.21%        2.75%        11.11%   

Dow Jones Industrial Average®(c)

     -0.37%        1.86%        9.00%   

 

Total annual operating expenses, as disclosed in the Fund’s prospectus dated September 28, 2015, were 2.26% of average daily net assets (1.25% after fee waivers/expense reimbursements by Bradley, Foster & Sargent, Inc. (the “Adviser”)). The Adviser has contractually agreed to waive or limit its fees and assume other expenses of the Fund until September 30, 2016, so that total annual fund operating expenses do not exceed 1.00%. This operating expense limitation does not apply to: interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with generally accepted accounting principles, other extraordinary expenses not incurred in the ordinary course of the Fund’s business, dividend expense on short sales, expenses incurred under a plan of distribution under Rule 12b-1, and expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement, if applicable, in any fiscal year. The operating expense limitation also excludes any “Fees and Expenses of Acquired Funds,” which are the expenses indirectly incurred by the Fund as a result of investing in money market funds or other investment companies, including ETFs, that have their own expenses. Each waiver or reimbursement of an expense by the Adviser is subject to repayment by the Fund within the three fiscal years following the fiscal year in which the expense was incurred, provided that the Fund is able to make the repayment without exceeding the expense limitation in place at the time of the waiver or reimbursement. This agreement may only be terminated by mutual consent of the Adviser and the Board of Trustees.

The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. Current performance of a Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (855) 575-2430.

 

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(a) Return figures reflect any change in price per share and assume the reinvestment of all distributions. The Fund’s returns reflect any fee reductions during the applicable periods. If such fee reductions had not occurred, the quoted performance would have been lower.

(b) The S&P 500® Index is a widely recognized unmanaged index of equity prices and is representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index is an unmanaged benchmark that assumes reinvestment of all distributions and excludes the effect of taxes and fees. Individuals cannot invest directly in this Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

(c) The Dow Jones Industrial Average® is a widely recognized unmanaged index of equity prices and is representative of a narrower market and range of securities than is found in the Fund’s portfolio. The Index is an unmanaged benchmark that assumes reinvestment of all distributions and excludes the effect of taxes and fees. Individuals cannot invest directly in this Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

The Fund’s investment objectives, strategies, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund and may be obtained by calling the same number as above. Please read it carefully before investing.

The Fund is distributed by Unified Financial Securities, LLC, member FINRA.

AVAILABILITY OF PORTFOLIO SCHEDULE (Unaudited)

The 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-Q. The Fund’s Forms N-Q will be available at the SEC’s website at www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

SUMMARY OF FUND’S EXPENSES (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period, and held for the six month period, June 1, 2015 to November 30, 2015.

 

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Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period Ended November 30, 2015” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

       Beginning
Account
Value		     Ending
Account
Value		    

Expenses
Paid During

the Period Ended

  
BFS Equity Fund      June 1, 2015     November 30, 2015     November 30,  2015(a)  

Actual

      $ 1,000.00      $ 1,005.10      $ 6.27   

Hypothetical(b)

(5% return before expenses)

      $ 1,000.00      $ 1,018.74      $ 6.31   

 

(a)  

Expenses are equal to the Fund’s annualized expense ratio of 1.25%, multiplied by the average account value over the period, multiplied by 183/366.

(b)  

Assumes a 5% return before expenses.

 

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Schedule of Investments (Unaudited)

November 30, 2015

 

Shares            Fair Value  
  COMMON STOCKS — 98.44%   
   Aerospace & Defense 2.47%   
  6,000      

United Technologies Corp.

    $ 576,300   
     

 

 

  
   Beverages 3.39%   
  3,500      

Constellation Brands, Inc. - Class A

      490,910   
  3,000      

PepsiCo, Inc.

      300,480   
     

 

 

  
        791,390   
     

 

 

  
   Biotechnology 5.07%   
  1,500      

Biogen, Inc.*

      430,290   
  3,500      

Celgene Corp.*

      383,075   
  3,500      

Gilead Sciences, Inc.

      370,860   
     

 

 

  
        1,184,225   
     

 

 

  
   Commercial Banks 8.75%   
  12,000      

East West Bancorp, Inc.

      520,560   
  4,000      

M&T Bank Corp.

      501,320   
  12,000      

U.S. Bancorp

      526,680   
  9,000      

Wells Fargo & Co.

      495,900   
     

 

 

  
        2,044,460   
     

 

 

  
   Computers & Peripherals 3.04%   
  6,000      

Apple, Inc.

      709,800   
     

 

 

  
   Diversified Financial Services 2.14%   
  7,500      

JPMorgan Chase & Co.

      500,100   
     

 

 

  
   Electronic Equipment, Instruments & Components 4.42%   
  9,000      

Amphenol Corp. - Class A

      495,450   
  8,000      

TE Connectivity Ltd.

      536,720   
     

 

 

  
        1,032,170   
     

 

 

  
   Energy Equipment & Services 4.33%   
  4,000      

Core Laboratories N.V.

      472,600   
  7,000      

Schlumberger Ltd.

      540,050   
     

 

 

  
        1,012,650   
     

 

 

  
   Food & Staples Retailing 3.80%   
  2,000      

Costco Wholesale Corp.

      322,840   
  6,000      

CVS Health Corp.

      564,540   
     

 

 

  
        887,380   
     

 

 

  
   Food Products 2.05%   
  11,000      

Mondelez International, Inc. - Class A

      480,260   
     

 

 

  
   Hotels, Restaurants & Leisure 2.31%   
  8,800      

Starbucks Corp.

      540,232   
     

 

 

  
   Household Durables 2.40%   
  12,000      

Jarden Corp.*

      560,160   
     

 

 

  

 

See accompanying notes which are an integral part of these financial statements.

 

13

Schedule of Investments (Unaudited) (continued)

November 30, 2015

 

Shares            Fair Value  
  COMMON STOCKS — (continued)   
   Household Products 1.83%   
  5,000      

Church & Dwight Co., Inc.

    $ 428,850   
     

 

 

  
   Industrial Conglomerates 5.65%   
  7,500      

Danaher Corp.

      722,925   
  20,000      

General Electric Co.

      598,800   
     

 

 

  
        1,321,725   
     

 

 

  
   Internet Software & Services 3.59%   
  1,100      

Alphabet, Inc. - Class A*

      839,135   
     

 

 

  
   IT Services 6.60%   
  8,000      

Cognizant Technology Solutions Corp. - Class A*

      516,640   
  6,000      

MasterCard, Inc. - Class A

      587,520   
  15,000      

Sabre Corp.

      438,900   
     

 

 

  
        1,543,060   
     

 

 

  
   Leisure Equipment & Products 2.48%   
  5,500      

Polaris Industries, Inc.

      579,865   
     

 

 

  
   Life Sciences Tools & Services 2.37%   
  4,000      

Thermo Fisher Scientific, Inc.

      553,600   
     

 

 

  
   Media 2.43%   
  5,000      

Walt Disney Co./The

      567,350   
     

 

 

  
   Oil, Gas & Consumable Fuels 4.24%   
  6,000      

EOG Resources, Inc.

      500,580   
  6,000      

Exxon Mobil Corp.

      489,960   
     

 

 

  
        990,540   
     

 

 

  
   Pharmaceuticals 9.02%   
  5,000      

Johnson & Johnson

      506,200   
  10,000      

Merck & Co., Inc.

      530,100   
  6,000      

Novartis AG ADR

      511,440   
  12,000      

Zoetis, Inc.

      560,400   
     

 

 

  
        2,108,140   
     

 

 

  
   Professional Services 2.20%   
  11,000      

Nielsen Holdings PLC

      513,480   
     

 

 

  
   Software 6.94%   
  5,500      

Adobe Systems, Inc.*

      503,030   
  5,000      

ANSYS, Inc.*

      466,050   
  12,000      

Microsoft Corp.

      652,200   
     

 

 

  
        1,621,280   
     

 

 

  
   Specialty Retail 2.29%   
  4,000      

Home Depot, Inc./The

      535,520   
     

 

 

  

 

See accompanying notes which are an integral part of these financial statements.

 

14

Schedule of Investments (Unaudited) (continued)

November 30, 2015

 

Shares            Fair Value  
  COMMON STOCKS — (continued)   
   Textiles, Apparel & Luxury Goods 2.55%   
  4,500      

NIKE, Inc.

    $ 595,260   
     

 

 

  
   Trading Companies & Distributors 2.08%   
  12,000      

Fastenal Co.

      486,960   
     

 

 

  
  

Total Common Stocks (Cost $20,175,268)

      23,003,892   
     

 

 

  
   Money Market Funds 1.38%   
  321,443      

Fidelity Prime Money Market Portfolio, Institutional Class, 0.17%(a)

      321,443   
     

 

 

  
  

Total Money Market Funds (Cost $321,443)

      321,443   
     

 

 

  
     
  

Total Investments 99.82% (Cost $20,496,711)

      23,325,335   
     

 

 

  
  

Other Assets in Excess of Liabilities 0.18%

      42,998   
     

 

 

  
  

TOTAL NET ASSETS 100.00%

    $ 23,368,333   
     

 

 

  
(a)   Rate disclosed is the seven day yield as of November 30, 2015.
*   Non-income producing security.
ADR   — American Depositary Receipt

The sectors shown on the schedule of investments are based on Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Huntington Asset Services, Inc.

 

See accompanying notes which are an integral part of these financial statements.

 

15

Statement of Assets and Liabilities (Unaudited)

November 30, 2015

 

Assets

   

Investments in securities at fair value (cost $20,496,711)

    $ 23,325,335   

Receivable for fund shares sold

      66,845   

Receivable for investments sold

      420,554   

Dividends receivable

      36,274   

Prepaid expenses

      14,964   

Total Assets

      23,863,972   

Liabilities

   

Payable for fund shares redeemed

      10,058   

Payable for investments purchased

      439,461   

Payable to Adviser

      2,923   

Payable to administrator, fund accountant, and transfer agent

      16,666   

Payable to custodian

      350   

Payable to trustees

      181   

Distribution fees accrued

      4,762   

Other accrued expenses

      21,238   

Total Liabilities

      495,639   

Net Assets

    $ 23,368,333   

Net Assets consist of:

   

Paid-in capital

    $ 21,038,260   

Accumulated undistributed net investment income

      60,634   

Accumulated undistributed net realized loss from investment transactions

      (559,185 ) 

Net unrealized appreciation on investments

      2,828,624   

Net Assets

    $ 23,368,333   

Shares outstanding (unlimited number of shares authorized, no par value)

      1,988,386   

Net asset value, offering and redemption price per share

    $ 11.75   

 

16

See accompanying notes which are an integral part of these financial statements.

Statement of Operations (Unaudited)

For the six months ended November 30, 2015

 

Investment Income

   

Dividend income (net of foreign taxes withheld of $3,207)

    $ 165,792   

Total investment income

      165,792   

Expenses

   

Investment Adviser

      80,874   

Distribution (12b-1)

      26,958   

Administration

      19,001   

Fund accounting

      12,500   

Transfer agent

      18,900   

Legal

      7,709   

Registration

      12,126   

Custodian

      2,100   

Audit

      7,750   

Trustee

      2,399   

Report printing

      8,231   

Miscellaneous

      6,078   

Total expenses

      204,626   

Fees waived and reimbursed by Adviser

      (69,972 ) 

Net operating expenses

      134,654   

Net investment income

      31,138   

Net Realized and Unrealized Gain/(Loss) on Investments

   

Net realized loss on investment securities transactions

      (203,222 ) 

Net change in unrealized appreciation of investment securities

      374,431   

Net realized and unrealized gain on investments

      171,209   

Net increase in net assets resulting from operations

    $ 202,347   

 

17

See accompanying notes which are an integral part of these financial statements.

Statements of Changes in Net Assets

 

Increase in Net Assets due to:    For the Six Months Ended
November 30, 2015
(Unaudited)		     For the Year Ended
May 31, 2015		  

Operations

     

Net investment income

    $ 31,138      $ 49,326   

Net realized loss on investment securities transactions

      (203,222 )      (179,137 ) 

Net change in unrealized appreciation of investment securities

      374,431        1,676,273   

Net increase in net assets resulting from operations

      202,347        1,546,462   

Distributions

     

From net investment income

      –        (50,367 ) 

Total distributions

      –        (50,367 ) 

Capital Transactions

     

Proceeds from shares sold

      3,203,900        6,774,960   

Reinvestment of distributions

      –        31,188   

Amount paid for shares redeemed

      (205,405 )      (879,815 ) 

Net increase in net assets resulting from capital transactions

      2,998,495        5,926,333   

Total Increase in Net Assets

      3,200,842        7,422,428   

Net Assets

     

Beginning of period

      20,167,491        12,745,063   

End of period

    $ 23,368,333      $ 20,167,491   

Accumulated undistributed net investment income included in net assets at end of period

    $ 60,634      $ 29,496   

Share Transactions

     

Shares sold

      280,892        613,346   

Issued in reinvestment of distributions

      –        2,772   

Redeemed

      (17,603 )      (79,058 ) 

Net increase in shares outstanding

      263,289        537,060   

 

18

See accompanying notes which are an integral part of these financial statements.

Financial Highlights

(For a share outstanding during each period)

 

     For the
Six Months Ended
November  30, 2015
(Unaudited)		     For the
Year Ended
May 31,  2015		     For the
Period Ended
May 31, 2014(a)		  

Selected Per Share Data:

      

Net asset value, beginning of period

     $11.69        $10.73        $10.00   
 

 

 

    

 

 

    

 

 

  

Income from investment operations:

      

Net investment income

     0.01        0.02        0.04   

Net realized and unrealized gain on investments

     0.05        0.97        0.70   
 

 

 

    

 

 

    

 

 

  

Total from investment operations

     0.06        0.99        0.74   
 

 

 

    

 

 

    

 

 

  

Less distributions to shareholders from:

      

Net investment income

     —        (0.03 )      (0.01 ) 
 

 

 

    

 

 

    

 

 

  

Total distributions

     —        (0.03 )      (0.01 ) 
 

 

 

    

 

 

    

 

 

  

Net asset value, end of period

     $11.75        $11.69        $10.73   
 

 

 

    

 

 

    

 

 

  

Total Return(b)

     0.51 %(c)      9.27 %      7.36 %(c) 
     

Ratios and Supplemental Data:

      

Net assets, end of period (000)

     $23,368        $20,167        $12,745   

Ratio of expenses to average net assets

     1.25 %(d)      1.25 %      1.25 %(d) 

Ratio of expenses to average net assets before waiver and reimbursement

     1.90 %(d)      2.26 %      3.93 %(d) 

Ratio of net investment income to average net assets

     0.29 %(d)      0.30 %      0.68 %(d) 

Ratio of net investment loss to average net assets before waiver and reimbursement

     (0.36 )%(d)      (0.71 )%      (2.00 )%(d) 

Portfolio turnover rate

     10.58 %(c)      51.17 %      46.50 %(c) 

 

 

(a)   

For the period November 8, 2013 (commencement of operations) to May 31, 2014.

(b)   

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions, if any.

(c)   

Not annualized

(d)   

Annualized

 

19

See accompanying notes which are an integral part of these financial statements.

Notes to the Financial Statements (Unaudited)

November 30, 2015

 

NOTE 1 – ORGANIZATION

The BFS Equity Fund (the “Fund”) was organized as an open-end diversified series of the Valued Advisers Trust (the “Trust”) on July 23, 2013 and commenced operations on November 8, 2013. The Trust is a management investment company established under the laws of Delaware by an Agreement and Declaration of Trust dated June 13, 2008 (the “Trust Agreement”). The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds authorized by the Board of Trustees (the “Board”). The Fund’s investment adviser is Bradley, Foster & Sargent, Inc. (the “Adviser”). The investment objective of the Fund is long-term appreciation through growth of principal and income.

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”).

Securities Valuation – All investments in securities are recorded at their estimated fair value as described in Note 3.

Federal Income Taxes – The Fund makes no provision for federal income or excise tax. The Fund intends to qualify each year as a regulated investment company (“RIC”) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. The Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Fund could incur a tax expense.

As of, and during the six months ended November 30, 2015, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the last six months, the Fund did not incur any interest or penalties. The Fund is subject to examination by U.S. federal tax authorities for all tax years since inception.

Expenses – Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds based on each fund’s relative net assets or another appropriate basis.

Security Transactions and Related Income – The Fund follows industry practice and records security transactions on the trade date for financial reporting purposes. The Fund has chosen specific identification as its tax lot identification method for all securities transactions. Interest income is recorded on an accrual basis and dividend income is recorded on the ex-dividend date except in the case of foreign securities, in which case dividends are generally recorded as soon as such information becomes available. Discounts and premiums on securities purchased are accreted or amortized using the effective interest method. The ability of issuers of debt securities held by the

 

20

Notes to the Financial Statements (Unaudited) (continued)

November 30, 2015

 

Fund to meet their obligations may be affected by economic and political developments in a specific country or region. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

Dividends and Distributions – The Fund intends to distribute its net realized long term and short term capital gains, if any, at least annually. Dividends to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset values per share of the Fund.

NOTE 3 – SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS

Fair value is defined as the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and establish classification of fair value measurements for disclosure purposes.

Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

 

  •  

Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date.

 

  •  

Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

  •  

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments based on the best information available)

 

21

Notes to the Financial Statements (Unaudited) (continued)

November 30, 2015

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Equity securities, including common stocks, are generally valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices more accurately reflect the fair value of such securities. Securities that are traded on any stock exchange are generally valued by the pricing service at the last quoted sale price. Lacking a last sale price, an exchange traded security is generally valued by the pricing service at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued by the pricing service at the NASDAQ Official Closing Price.

When using the market quotations or close prices provided by the pricing service and when the market is considered active, the security will be classified as a Level 1 security. Sometimes, an equity security owned by the Fund will be valued by the pricing service with factors other than market quotations or when the market is considered inactive. When this happens, the security will be classified as a Level 2 security. When market quotations are not readily available, when the Adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect the current fair value, or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith, in conformity with guidelines adopted by and subject to review by the Board. These securities will generally be categorized as Level 3 securities.

Investments in mutual funds, including money market mutual funds, are generally priced at the ending net asset value (“NAV”) provided by the service agent of the funds. These securities will be categorized as Level 1 securities.

In accordance with the Trust’s good faith pricing guidelines, the Fund, with support from the Adviser, is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in management’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before a Fund’s NAV calculation that may affect a security’s value, or the Fund is aware of any other data that calls into question the reliability of market quotations.

 

22

Notes to the Financial Statements (Unaudited) (continued)

November 30, 2015

 

The following is a summary of the inputs used to value the Fund’s investments as of November 30, 2015:

 

     Valuation Inputs         
Assets    Level 1      Level 2      Level 3      Total  

Common Stocks*

    $ 23,003,892         $—       $ —       $ 23,003,892   

Money Market Funds

      321,443         —         —         321,443   

Total

    $ 23,325,335         $—       $ —       $ 23,325,335  

 

*   Refer to Schedule of Investments for industry classifications.

The Fund did not hold any investments at any time during the reporting period in which other significant observable inputs (Level 2) were used in determining fair value. The Fund did not hold any assets at any time during the reporting period in which significant unobservable inputs were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period. The Fund did not hold any derivative instruments during the reporting period.

The Trust recognizes transfers between fair value hierarchy levels at the end of the reporting period. There were no transfers between any levels during the six months ended November 30, 2015 and the previous reporting period end.

NOTE 4 – FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS

Under the terms of the investment advisory agreement, on behalf of the Fund (the “Agreement”), the Adviser manages the Fund’s investments subject to oversight of the Board. As compensation for its services, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 0.75% of the average daily net assets of the Fund. For the six months ended November 30, 2015, the Adviser earned a fee of $80,874 from the Fund before the waivers described below. At November 30, 2015, the Fund owed the Adviser $2,923.

The Adviser has contractually agreed to waive or limit its fee and assume other expenses of the Fund, until September 30, 2016, so that the ratio of total annual operating expenses do not exceed 1.00%. This operating expense limitation does not apply to interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Fund’s business, dividend expense on short sales, expenses incurred under a plan of distribution under Rule 12b-1, and expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement, if applicable, incurred by the Fund in any fiscal year. The operating expense limitation also excludes any “Fees and Expenses of Acquired Funds” which are the expenses indirectly incurred by the Fund as a result of investing in money market funds or other investment companies, including ETFs, that have their own expenses. The Adviser may be entitled to recoup the sum of all fees previously waived or expenses reimbursed during any of the previous three years, less any reimbursement previously paid, provided total expenses do not exceed the limitation set forth above. For the six months ended November 30, 2015,

 

23

Notes to the Financial Statements (Unaudited) (continued)

November 30, 2015

 

expenses totaling $69,972 were waived or reimbursed by the Adviser. The amounts subject to repayment by the Fund, pursuant to the aforementioned conditions are as follows:

 

Amount   Recoverable through
May 31,		  
$146,030     2017   
$163,520     2018   
$69,972     2019   

The Trust retains Ultimus Asset Services, LLC (formerly Huntington Asset Services, Inc. – see Subsequent Events) (“Ultimus”) to manage the Fund’s business affairs and provide the Fund with administrative services, including all regulatory reporting and necessary office equipment and personnel. For the six months ended November 30, 2015, Ultimus earned fees of $19,001 for administrative and compliance services provided to the Fund. At November 30, 2015, Ultimus was owed $6,334 from the Fund for administrative and compliance services. Certain officers of the Trust are members of management and/or employees of Ultimus. Ultimus is a wholly-owned subsidiary of Ultimus Fund Solutions, LLC, the parent company of Unified Financial Securities, LLC (the “Distributor”). Huntington National Bank, the custodian of the Fund’s investments (the “Custodian”) was previously affiliated with Huntington Asset Services, Inc. For the six months ended November 30, 2015, the Custodian earned fees of $2,100 for custody services provided to the Fund. At November 30, 2015, the Custodian was owed $350 from the Fund for custody services.

The Trust also retains Ultimus to act as the Fund’s transfer agent and to provide fund accounting services. For the six months ended November 30, 2015, Ultimus earned fees of $18,900 for transfer agent services and reimbursement for out-of-pocket expenses incurred in providing transfer agent services to the Fund. At November 30, 2015, the Fund owed Ultimus $6,165 for transfer agent services and out-of-pocket expenses. For the six months ended November 30, 2015, Ultimus earned fees of $12,500 from the Fund for fund accounting services. At November 30, 2015, Ultimus was owed $4,167 from the Fund for fund accounting services.

The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (the “Plan”). The Plan provides that the Fund will pay the Distributor and/or any registered securities dealer, financial institution or any other person (the “Recipient”) a shareholder servicing fee of 0.25% of the average daily net assets of the Fund in connection with the promotion and distribution of the Fund’s shares or the provision of personal services to shareholders, including, but not necessarily limited to, advertising, compensation to underwriters, dealers and selling personnel, the printing and mailing of prospectuses to other than current Fund shareholders, the printing and mailing of sales literature and servicing shareholder accounts (“12b-1 Expenses”). The Fund or Distributor may pay all or a portion of these fees to any recipient who renders assistance in distributing or promoting the sale of shares, or who provides certain shareholder services, pursuant to a written agreement. For the six months ended November 30, 2015, 12b-1 expense incurred by the Fund was $26,958. The Fund owed $4,762 for 12b-1 fees as of November 30, 2015.

Unified Financial Securities, LLC acts as the principal distributor of the Fund’s shares. A trustee and an officer of the Trust is an officer of the Distributor and such person may be deemed to be an affiliate of the Distributor.

 

24

Notes to the Financial Statements (Unaudited) (continued)

November 30, 2015

 

NOTE 5 – PURCHASES AND SALES OF SECURITIES

For the six months ended November 30, 2015, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations, were as follows:

 

Purchases

    

Sales

  
$ 5,423,822      $ 2,221,467   

There were no purchases or sales of long-term U.S. government obligations during the six months ended November 30, 2015.

NOTE 6 – ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

NOTE 7 – BENEFICIAL OWNERSHIP

The beneficial ownership, either directly or indirectly, of 25% or more of the voting securities of a fund creates a presumption of control of a fund, under Section 2(a) (9) of the Investment Company Act of 1940. At November 30, 2015, Charles Schwab & Co. (“Schwab”) owned, as record shareholder, 58% of the outstanding shares of the Fund. It is not known whether Schwab or any of the underlying beneficial owners owned or controlled 25% or more of the voting securities of the Fund.

NOTE 8 – FEDERAL TAX INFORMATION

At November 30, 2015, the net unrealized appreciation (depreciation) of investments for tax purposes was as follows:

 

Gross Unrealized Appreciation

    $ 3,136,672   

Gross Unrealized (Depreciation)

      (352,805 ) 

Net Unrealized Appreciation on Investments

    $ 2,783,867   

At November 30, 2015, the aggregate cost of securities for federal income tax purposes was $20,541,468 for the Fund.

At May 31, 2015, the Fund’s most recent fiscal year end, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

 

Undistributed ordinary income

    $ 29,496   

Undistributed long-term capital gains

      —   

Accumulated capital and other losses

      (311,206 ) 

Unrealized Appreciation

      2,409,436   

Total

    $ 2,127,726   

The difference between book and tax basis appreciation was attributable primarily to the tax deferral of losses on wash sales in the amount of $44,757.

 

25

Notes to the Financial Statements (Unaudited) (continued)

November 30, 2015

 

The tax character of distributions paid for the fiscal year ended May 31, 2015 was as follows:

 

      2015  

Distributions paid from:

   

Ordinary Income

    $ 50,367   

As of May 31, 2015, the Fund has available for federal tax purposes an unused capital loss carryforward of $177,167 of short-term capital losses with no expiration, which is available to offset against future taxable net capital gains. To the extent that these carryforwards are used to offset future gains, it is probable that the amount offset will not be distributed to shareholders.

Certain capital losses incurred after October 31, and within the current taxable year, are deemed to arise on the first business day of the Fund’s following taxable year. For the tax year ended May 31, 2015, the Fund deferred post October capital losses in the amount of $134,039.

NOTE 9 – COMMITMENTS AND CONTINGENCIES

The Fund indemnifies its officers and trustees for certain liabilities that may arise from performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.

NOTE 10 – SUBSEQUENT EVENTS

Management of the Fund has evaluated the need for disclosure and/or adjustments resulting from subsequent events through the date these financials were issued. On November 13, 2015, Huntington Bancshares, Inc. entered into an agreement to sell Huntington Asset Services, Inc. and Unified Financial Services, Inc. to Ultimus Fund Solutions, LLC. The sale closed on December 31, 2015. Management has determined that there were no additional items requiring additional disclosure.

 

26

Investment Advisory agreement Approval (Unaudited)

At a meeting held on June 2-3, 2015, the Board of Trustees (the “Board”) considered the renewal of the Investment Advisory Agreement (the “Agreement”) between the Trust and Bradley, Foster & Sargent, Inc. (the “Adviser” or “BFS”) with respect to the BFS Equity Fund (the “Fund”). Counsel noted that the 1940 Act requires the approval of the investment advisory agreement between the Trust and its investment adviser by the Board, including a majority of the Independent Trustees. The Board discussed the arrangements between the Adviser and the Trust with respect to the Fund.

Counsel directed the Trustees to a memorandum that summarized, among other things, the fiduciary duties and responsibilities of the Board in reviewing and approving the renewal of the Agreement. The Board then discussed the specific contractual arrangements between the Trust and BFS with respect to the Fund. They reflected upon the Board’s prior experience with BFS in managing the Fund, as well as their earlier discussion with representatives of BFS.

Counsel discussed with the Trustees the types of information and factors that should be considered by the Board in order to make an informed decision regarding the approval of the renewal of the Agreement, including the following material factors: (i) the nature, extent, and quality of the services to be provided by BFS; (ii) the investment performance of the Fund;(iii) the costs of the services to be provided and anticipated profits to be realized by BFS from the relationship with the Fund; (iv) the extent to which economies of scale would be realized if the Fund grows and whether advisory fee levels reflect those economies of scale for the benefit of the Fund’s investors; and (v) BFS’s practices regarding possible conflicts of interest and potential benefits derived from its relationship with the Fund.

In assessing the factors and reaching its decision, the Board took into consideration information furnished for the Board’s review and consideration throughout the year at regular Board meetings, as well as information specifically requested and prepared and/or presented in connection with the annual renewal process, including information presented at the Meeting. The Board requested, was provided with, and reflected on, information and reports relevant to the annual renewal of the Agreement, including: (i) reports regarding the services and support provided to the Fund and its shareholders by BFS; (ii) quarterly assessments of the investment performance of the Fund by personnel of BFS; (iii) commentary on the reasons for the performance; (iv) presentations by BFS addressing investment philosophy, investment strategy, personnel and operations of BFS; (v) compliance and audit reports concerning the Fund and BFS; (vi) disclosure information contained in the registration statement of the Trust with respect to the Fund and the Form ADV of BFS; and (vii) a memorandum from Counsel, that summarized the fiduciary duties and responsibilities of the Board in reviewing and approving the Agreement, including the material factors set forth above and the types of information with respect to each factor that should be considered by the Board in order to make an informed decision. The Board also requested and received various informational materials including, without limitation: (i) documents containing information about BFS, including financial information, a description of personnel and the managerial services provided to the Fund, information on investment advice, performance, summaries of Fund expenses, compliance program, current legal matters, and other general information; (ii) comparative expense and performance information for other mutual funds with strategies similar to those historically utilized by the Fund, as well as for separate accounts managed by BFS; and (iii) benefits to be realized by BFS from its relationship with the Fund. The Board did not identify any particular information that was most relevant to its consideration to approve the Agreement and each Trustee may have afforded different weight to the various factors.

 

27

1. The nature, extent, and quality of the services to be provided by the Adviser. In this regard, the Board considered BFS’s responsibilities under the Agreement. The Trustees considered the services being provided by BFS to the Fund including, without limitation: the quality of its investment advisory services (including research and recommendations with respect to portfolio securities), its process for formulating investment recommendations and assuring compliance with the Fund’s investment objectives and limitations, its coordination of services for the Fund among the Fund’s service providers, and its efforts to promote the Fund and grow its assets. The Trustees considered BFS’s continuity of, and commitment to retain, qualified personnel and BFS’s commitment to maintain and enhance its resources and systems, the commitment of BFS’s personnel to finding alternatives and options that allow the Fund to maintain its goals, and BFS’s continued cooperation with the Independent Trustees and Counsel for the Fund. The Trustees considered BFS’s personnel, including the education and experience of BFS’s personnel. They discussed the recent addition of an individual to serve as Chief Administrative Officer and Chief Compliance Officer of BFS. After considering the foregoing information and further information in the Meeting materials provided by BFS (including BFS’s Form ADV), the Board concluded that, in light of all the facts and circumstances, the nature, extent, and quality of the services provided by BFS were satisfactory and adequate for the Fund.

2. Investment performance of the Fund and the Adviser. In considering the investment performance of the Fund and BFS, the Trustees compared the performance of the Fund with the performance of funds with similar objectives managed by other investment advisers, with aggregated peer group data, as well as with the performance of the Fund’s benchmark. The Trustees also considered the consistency of BFS’s management of the Fund with its investment objectives, strategies, and limitations. The Trustees noted that the Fund’s performance was below its benchmark for the period since inception of the Fund, but was above the benchmark for more recent periods, including the first quarter of 2015 and the year-to-date period through April. They also noted that the Fund’s performance was below that of its peer group for the one year period ended March 31, but was above its peer group for the period since inception. The Board reviewed the performance of BFS in managing separate accounts with investment strategies similar to that of the Fund and observed that the performance was relatively comparable. After reviewing and discussing the investment performance of the Fund further, BFS’s experience managing the Fund, the Fund’s historical performance, and other relevant factors, the Board concluded, in light of all the facts and circumstances, that the investment performance of the Fund and BFS was satisfactory.

3. The costs of services to be provided and the profits to be realized by the Adviser from the relationship with the Fund. In considering the costs of services to be provided and the profits to be realized by BFS from the relationship with the Fund, the Trustees considered: (1) BFS’s financial condition; (2) the asset level of the Fund; (3) the overall expenses of the Fund; and (4) the nature and frequency of advisory fee payments. The Trustees reviewed information provided by BFS regarding its profits associated with managing the Fund, noting that BFS is currently waiving its management fee and reimbursing a portion of the Fund’s expenses. The Trustees also considered potential benefits for BFS in managing the Fund. The Trustees then compared the fees and expenses of the Fund (including the management fee) to other comparable mutual funds. The Trustees noted that the Fund’s management fee is below the average and median fees of peers in its category. The Trustees also noted that the Fund’s net expense ratio was lower than that of the peer average and median, as a result of BFS’s contractual commitment to limit the expenses of the Fund. Based on the foregoing, the Board concluded that the fees to be paid to BFS by the Fund and the profits to be realized by BFS, in light of all the facts and circumstances, were fair and reasonable in relation to the nature and quality of the services provided by BFS.

 

28

4. The extent to which economies of scale would be realized as the Fund grows and whether advisory fee levels reflect these economies of scale for the benefit of the Fund’s investors. In this regard, the Board considered the Fund’s fee arrangements with BFS. The Board considered that while the management fee remained the same at all asset levels, the Fund’s shareholders experienced benefits from the Fund’s expense limitation arrangement. The Trustees noted that once the Fund’s expenses fell below the cap set by the arrangement, the Fund’s shareholders would continue to benefit from the economies of scale under the Trust’s agreement with service providers other than BFS. In light of its ongoing consideration of the Fund’s asset levels, expectations for growth in the Fund, and fee levels, the Board determined that the Fund’s fee arrangements, in light of all the facts and circumstances, were fair and reasonable in relation to the nature and quality of the services provided by BFS.

5. Possible conflicts of interest and benefits to the Adviser. In considering BFS’s practices regarding conflicts of interest, the Trustees evaluated the potential for conflicts of interest and considered such matters as the experience and ability of the advisory personnel assigned to the Fund; the basis of decisions to buy or sell securities for the Fund and/or BFS’s other accounts; and the substance and administration of BFS’s code of ethics. The Trustees also considered disclosure in the registration statement of the Trust relating to BFS’s potential conflicts of interest. The Trustees noted that BFS may utilize soft dollars and the Trustees noted BFS’s policies and processes for managing the conflicts of interest that could arise from soft dollar arrangements. The Trustees noted other potential benefits to BFS, including the fact that the Fund provides an attractive vehicle for smaller accounts, which may increase the total assets under management by BFS. Based on the foregoing, the Board determined that the standards and practices of BFS relating to the identification and mitigation of potential conflicts of interest and the benefits to be realized by BFS in managing the BFS were satisfactory.

After additional consideration of the factors delineated in the memorandum provided by Counsel and further discussion among the Board, the Board determined to approve the continuation of the Agreement between the Trust and the Adviser.

 

29

VALUED ADVISERS TRUST

PRIVACY POLICY

The following is a description of the policies of the Valued Advisers Trust (the “Trust”) regarding disclosure of nonpublic personal information that shareholders provide to a series of the Trust (each, a “Fund”) or that the Fund collects from other sources. In the event that a shareholder holds shares of a Fund through a broker-dealer or other financial intermediary, the privacy policy of the financial intermediary would govern how shareholder nonpublic personal information would be shared with nonaffiliated third parties.

Categories of Information a Fund May Collect. A Fund may collect the following nonpublic personal information about its shareholders:

 

  •  

Information the Fund receives from a shareholder on applications or other forms, correspondence, or conversations (such as the shareholder’s name, address, phone number, social security number, and date of birth); and

 

  •  

Information about the shareholder’s transactions with the Fund, its affiliates, or others (such as the shareholder’s account number and balance, payment history, cost basis information, and other financial information).

Categories of Information a Fund May Disclose. A Fund may not disclose any nonpublic personal information about its current or former shareholders to unaffiliated third parties, except as required or permitted by law. A Fund is permitted by law to disclose all of the information it collects, as described above, to its service providers (such as the Fund’s custodian, administrator, transfer agent, accountant and legal counsel) to process shareholder transactions and otherwise provide services to the shareholder.

Confidentiality and Security. Each Fund shall restrict access to shareholder nonpublic personal information to those persons who require such information to provide products or services to the shareholder. Each Fund shall maintain physical, electronic, and procedural safeguards that comply with federal standards to guard shareholder nonpublic personal information.

Disposal of Information. The Funds, through their transfer agent, have taken steps to reasonably ensure that the privacy of a shareholder’s nonpublic personal information is maintained at all times, including in connection with the disposal of information that is no longer required to be maintained by the Funds. Such steps shall include, whenever possible, shredding paper documents and records prior to disposal, requiring off-site storage vendors to shred documents maintained in such locations prior to disposal, and erasing and/or obliterating any data contained on electronic media in such a manner that the information can no longer be read or reconstructed.

 

30

PROXY VOTING

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the most recent twelve month period ended June 30, is available without charge upon request by (1) calling the Fund at (855) 575-2430 and (2) from Fund documents filed with the Securities and Exchange Commission (“SEC”) on the SEC’s website at www.sec.gov.

TRUSTEES

R. Jeffrey Young, Chairman

Ira Cohen

Andrea N. Mullins

OFFICERS

R. Jeffrey Young, Principal Executive Officer and President

Bryan W. Ashmus, Principal Financial Officer and Treasurer

John C. Swhear, Chief Compliance Officer, AML Officer and Vice-President

Carol J. Highsmith, Vice President and Secretary

Matthew J. Miller, Vice President

INVESTMENT ADVISER

Bradley, Foster & Sargent, Inc.

185 Asylum Street, City Place II

Hartford, Connecticut 06103

DISTRIBUTOR

Unified Financial Securities, LLC

2960 North Meridian Street, Suite 300

Indianapolis, IN 46208

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Cohen Fund Audit Services, Ltd.

1350 Euclid Avenue, Suite 800

Cleveland, OH 44115

LEGAL COUNSEL

The Law Offices of John H. Lively & Associates, Inc.

A member firm of The 1940 Act Law Group TM

11300 Tomahawk Creek Parkway, Suite 310

Leawood, KS 66211

CUSTODIAN

Huntington National Bank

41 South High Street

Columbus, OH 43215

ADMINISTRATOR, TRANSFER AGENT AND FUND ACCOUNTANT

Ultimus Asset Services, LLC

2960 North Meridian Street, Suite 300

Indianapolis, IN 46208

This report is intended only for the information of shareholders or those who have received the Fund’s prospectus which contains information about the Fund’s management fee and expenses. Please read the prospectus carefully before investing.

Distributed by Unified Financial Securities, LLC

Member FINRA/SIPC

SEMI-ANNUAL REPORT 

November 30, 2015 

 

LOGO

CLOUD CAPITAL FUNDS

Cloud Capital Strategic All Cap Fund

Fund Adviser:

Cloud Capital LLC

P.O. Box 451179

Grove, OK 74345

Toll Free (877) 670-2227

 

 

Investment Results – (Unaudited)

   

 

Total Returns (a)

(For the periods ended November 30, 2015)

  
       
                  Average Annual Returns  
   
     

Six Months

    

One Year

    

Three Year

    

Since Inception

(June 29, 2011)

  

Cloud Capital Strategic All Cap Fund - Institutional Class

      (3.57 )%      (1.09 )%      13.52 %      10.28 % 

S&P 500® Index (b)

      (0.21 )%      2.75 %      16.09 %      13.69 % 

Russell 3000 Index (b) (c)

      (1.05 )%      2.58 %      16.00 %      13.27 % 

Russell 1000 Equal Weight Index (b)

      (5.33 )%      (1.15 )%      14.94 %      11.53 % 

Russell 2000 Equal Weight Index (b)

      (5.45 )%      (1.15 )%      12.25 %      7.90 % 

 

Total annual operating expenses, as disclosed in the Fund’s prospectus dated September 28, 2015, were 1.91% of average daily net assets (1.41% after fee waivers/expense reimbursements by Cloud Capital LLC (the “Adviser”)). Effective February 1, 2014, the Adviser has contractually agreed to waive its management fee in its entirety. This waiver is not subject to recoupment and will continue through September 30, 2016. Additionally, the Adviser has contractually agreed to waive or limit its fees and to assume other expenses of the Fund through September 30, 2016, so that Total Annual Fund Operating Expenses do not exceed 1.40%. This operating expense limitation does not apply to brokerage fees and commissions, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, extraordinary expenses, fees and expenses paid under a distribution plan adopted pursuant to Rule 12b-1, and indirect expenses (such as “Acquired Fund Fees and Expenses”). The Adviser may be entitled to reimbursement of any fees waived or expenses reimbursed prior to February 1, 2014, pursuant to the agreement provided overall expenses fall below the limitations set forth above. The Adviser may recoup the sum of all fees previously waived or expenses reimbursed during any of the previous three years, less any reimbursement previously paid, provided total expense do not exceed the limitation set forth above. This agreement may only be terminated by mutual consent of the Adviser and the Board of Trustees.

The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (877) 670-2227.

 

(a) Return figures reflect any change in price per share and assume the reinvestment of all distributions.

 

(b)

The S&P 500® Index, Russell 1000® Equal Weight Index, Russell 2000® Equal Weight Index and the Russell 3000® Index are unmanaged indices that assume reinvestment of all distributions and exclude the effect of taxes and fees. These indices are widely recognized unmanaged indices of equity prices and are representative of a broader market and range of securities than are found in the Fund’s portfolio. Individuals cannot invest directly in these indices; however, an individual can invest in exchange-traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

 

(c) Effective January 19, 2015, the Fund (formerly known as the Cloud Capital Strategic Large Cap Fund) adopted a new investment objective and strategy. The Trust has designated the Russell 3000 Index as the Fund’s primary benchmark index as it is more representative of the Fund’s investment objective and strategy.

The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company and may be obtained by calling (877) 670-2227. Please read it carefully before investing.

The Fund is distributed by Unified Financial Securities, LLC Member FINRA.

 

Semi-Annual Report

 

1

Fund Holdings – (Unaudited)

   

 

LOGO

 

(a) As a percent of net assets.

The investment objective of the Cloud Capital Strategic All Cap Fund is long-term capital appreciation.

Availability of Portfolio Schedule – (Unaudited)

The 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-Q, which is available on the SEC’s web site at www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

 

Semi-Annual Report

 

2

About the Fund’s Expenses – (Unaudited)

   

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs (such as short-term redemption fees); and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period, and held for the entire period from June 1, 2015 to November 30, 2015.

Actual Expenses

The first line of the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period Ended November 30, 2015” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the 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 table 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 line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

     

Beginning
Account
Value

June 1, 2015

   

Ending

Account Value

November 30, 2015

     

Expenses
Paid
During
the Period
Ended

November 30, 2015 (a)

  

Cloud Capital Strategic All Cap Fund – Institutional Class

  

         

Actual

    $1,000.00    $ 964.30       $ 7.07   

Hypothetical (b)

    $1,000.00    $ 1017.80       $ 7.26   

 

(a) Expenses are equal to the Fund’s annualized expense ratio of 1.44%, multiplied by the average account value over the period, multiplied by 183/366.
(b) Assumes a 5% return before expenses.

 

Semi-Annual Report

 

3

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited)

 

Shares          Fair Value       

 

Common Stocks — 88.5%

          

 

Consumer Discretionary — 9.7%

    
  565     

Aaron’s, Inc.

   $ 13,710     
  114     

Advance Auto Parts, Inc.

     18,480     
  37,400     

Aeropostale, Inc. *

     20,204     
  37     

Amazon.com, Inc. *

     24,838     
  316     

AMC Networks, Inc., Class A *

     25,684     
  1,415     

American Eagle Outfitters, Inc.

     22,039     
  2,035     

Apollo Education Group, Inc., Class A *

     14,365     
  1,818     

Ascena Retail Group, Inc. *

     20,600     
  240     

AutoNation, Inc. *

     15,361     
  20     

AutoZone, Inc. *

     15,793     
  1,630     

Barnes & Noble, Inc.

     20,860     
  234     

Bed Bath & Beyond, Inc. *

     12,776     
  474     

Best Buy Co., Inc.

     15,074     
  462     

Big Lots, Inc.

     20,789     
  497     

Bob Evans Farms, Inc.

     19,790     
  324     

BorgWarner, Inc.

     13,825     
  454     

Brinker International, Inc.

     20,703     
  521     

Cabela’s, Inc., Class A *

     24,426     
  617     

Cablevision Systems Corp.

     18,806     
  242     

CarMax, Inc. *

     13,852     
  299     

Carnival Corp.

     15,105     
  238     

Carter’s, Inc.

     20,560     
  317     

CBS Corp., Class B

     16,012     
  257     

CEB, Inc.

     19,845     
  421     

Cheesecake Factory, Inc./The

     19,863     
  1,504     

Chico’s FAS, Inc.

     18,050     
  20     

Chipotle Mexican Grill, Inc. *

     11,489     
  644     

Cinemark Holdings, Inc.

     22,351     
  492     

Coach, Inc.

     15,644     
  255     

Comcast Corp., Class A

     15,544     
  621     

CST Brands, Inc.

     23,112     
  470     

D.R. Horton, Inc.

     15,186     
  210     

Darden Restaurants, Inc.

     11,791     
  361     

Deckers Outdoor Corp. *

     17,679     
  199     

Delphi Automotive PLC

     17,455     
  779     

DeVry Education Group, Inc.

     18,499     
  469     

Dick’s Sporting Goods, Inc.

     18,324     
  3     

Dillard’s, Inc., Class A

     225     
  543     

Discovery Communications, Inc., Class A *

     16,897     
  187     

Dollar General Corp.

     12,235     
  375     

Dollar Tree, Inc. *

     28,265     
  215     

Domino’s Pizza, Inc.

     23,142     
  1,066     

DreamWorks Animation SKG, Inc., Class A *

     26,272     
  128     

Expedia, Inc.

     15,786     
  312     

Foot Locker, Inc.

     20,287     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Consumer Discretionary — (Continued)

    
  1,073     

Ford Motor Co.

   $ 15,376     
  238     

Fossil Group, Inc. *

     9,163     
  327     

GameStop Corp., Class A

     11,453     
  597     

Gannett Co., Inc.

     16,854     
  440     

Gap, Inc./The

     11,751     
  383     

Garmin Ltd.

     14,480     
  511     

General Motors Co.

     18,503     
  1,394     

Gentex Corp.

     23,331     
  176     

Genuine Parts Co.

     15,918     
  498     

Goodyear Tire & Rubber Co./The

     17,384     
  23     

Graham Holdings Co.

     12,330     
  969     

Guess?, Inc.

     19,078     
  437     

H&R Block, Inc.

     16,017     
  770     

Hanesbrands, Inc.

     23,602     
  262     

Harley-Davidson, Inc.

     12,820     
  154     

Harman International Industries, Inc.

     15,836     
  198     

Hasbro, Inc.

     14,455     
  126     

Home Depot, Inc./The

     16,818     
  362     

HSN, Inc.

     18,068     
  885     

International Game Technology PLC

     13,747     
  606     

International Speedway Corp., Class A

     21,566     
  763     

Interpublic Group of Cos., Inc./The

     17,541     
  455     

Jarden Corp. *

     21,225     
  383     

John Wiley & Sons, Inc., Class A

     19,761     
  350     

Johnson Controls, Inc.

     16,096     
  1,502     

KB Home

     21,168     
  281     

Kohl’s Corp.

     13,267     
  180     

L Brands, Inc.

     17,194     
  308     

Leggett & Platt, Inc.

     14,356     
  275     

Lennar Corp., Class A

     14,098     
  788     

LKQ Corp. *

     23,228     
  208     

Lowe’s Companies, Inc.

     15,928     
  246     

Macy’s, Inc.

     9,595     
  210     

Marriott International, Inc., Class A

     14,865     
  664     

Mattel, Inc.

     16,517     
  392     

Matthews International Corp., Class A

     23,421     
  151     

McDonald’s Corp.

     17,284     
  763     

MDC Holdings, Inc.

     20,003     
  484     

Meredith Corp.

     22,576     
  363     

Michael Kors Holdings Ltd. *

     15,611     
  175     

Mohawk Industries, Inc. *

     33,415     
  136     

Netflix, Inc. *

     16,809     
  1,702     

New York Times Co./The, Class A

     23,968     
  353     

Newell Rubbermaid, Inc.

     15,756     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

4

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Consumer Discretionary — (Continued)

    
  1,093     

News Corp., Class A

   $ 15,685     
  135     

NIKE, Inc., Class B

     17,841     
  208     

Nordstrom, Inc.

     11,731     
  13     

NVR, Inc. *

     22,300     
  2,964     

Office Depot, Inc. *

     19,531     
  213     

Omnicom Group, Inc.

     15,753     
  60     

O’Reilly Automotive, Inc. *

     15,902     
  118     

Panera Bread Co., Class A *

     21,502     
  205     

Polaris Industries, Inc.

     21,633     
  12     

Priceline Group, Inc./The *

     14,788     
  710     

PulteGroup, Inc.

     13,836     
  131     

PVH Corp.

     11,942     
  130     

Ralph Lauren Corp.

     16,137     
  1,696     

Regis Corp. *

     28,255     
  845     

Rent-A-Center, Inc.

     14,499     
  288     

Ross Stores, Inc.

     14,979     
  547     

Scholastic Corp.

     23,369     
  2,112     

Scientific Games Corp., Class A *

     19,476     
  270     

Scripps Networks Interactive, Inc., Class A

     15,363     
  762     

Service Corp. International

     21,224     
  149     

Signet Jewelers Ltd.

     19,596     
  648     

Sotheby’s

     18,355     
  1,070     

Staples, Inc.

     12,916     
  273     

Starbucks Corp.

     16,772     
  201     

Starwood Hotels & Resorts Worldwide, Inc.

     14,416     
  362     

Strayer Education, Inc. *

     21,400     
  187     

Target Corp.

     13,572     
  306     

Tempur Sealy International, Inc. *

     24,306     
  406     

Thor Industries, Inc.

     23,504     
  170     

Tiffany & Co.

     13,571     
  78     

Time Warner Cable, Inc., Class A

     14,417     
  203     

Time Warner, Inc.

     14,208     
  202     

TJX Cos., Inc./The

     14,250     
  594     

Toll Brothers, Inc. *

     22,071     
  254     

Tractor Supply Co.

     22,678     
  209     

TripAdvisor, Inc. *

     17,242     
  364     

Tupperware Brands Corp.

     20,661     
  523     

Twenty-First Century Fox, Inc.

     15,437     
  218     

Under Armour, Inc., Class A *

     18,819     
  486     

Urban Outfitters, Inc. *

     10,876     
  201     

VF Corp.

     13,022     
  364     

Viacom, Inc., Class B

     18,135     
  145     

Walt Disney Co./The

     16,436     
  2,441     

Wendy’s Co./The

     25,654     
  84     

Whirlpool Corp.

     13,596     
  216     

Williams-Sonoma, Inc.

     13,685     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Consumer Discretionary — (Continued)

    
  191     

Wyndham Worldwide Corp.

   $ 14,489     
  182     

Wynn Resorts Ltd.

     11,396     
  184     

Yum! Brands, Inc.

     13,349     
              2,418,400     

 

Consumer Staples – 10.2%

    
  598     

Altria Group, Inc.

     34,421     
  710     

Archer-Daniels-Midland Co.

     25,911     
  6,776     

Avon Products, Inc.

     23,378     
  311     

Brown-Forman Corp., Class B

     31,913     
  653     

Campbell Soup Co.

     34,131     
  1,076     

Church & Dwight Co., Inc.

     92,270     
  281     

Clorox Co./The

     34,984     
  817     

Coca-Cola Co./The

     34,809     
  615     

Coca-Cola Enterprises, Inc.

     30,914     
  496     

Colgate-Palmolive Co.

     32,597     
  754     

ConAgra Foods, Inc.

     30,864     
  257     

Constellation Brands, Inc., Class A

     36,116     
  230     

Costco Wholesale Corp.

     37,096     
  305     

CVS Health Corp.

     28,659     
  5,587     

Dean Foods Co.

     104,819     
  405     

Dr. Pepper Snapple Group, Inc.

     36,336     
  1,067     

Edgwell Personal Care Co.

     85,905     
  400     

Estee Lauder Cos., Inc./The, Class A

     33,642     
  4,051     

Flowers Foods, Inc.

     95,278     
  566     

General Mills, Inc.

     32,705     
  356     

Hershey Co./The

     30,694     
  519     

Hormel Foods Corp.

     38,889     
  1,060     

Ingredion, Inc.

     104,452     
  286     

JM Smucker Co./The

     34,616     
  473     

Kellogg Co.

     32,520     
  1,819     

Keurig Green Mountain, Inc.

     95,314     
  290     

Kimberly-Clark Corp.

     34,551     
  435     

Kraft Heinz Co./The

     32,032     
  901     

Kroger Co./The

     33,937     
  973     

Lancaster Colony Corp.

     113,083     
  398     

McCormick & Co., Inc.

     34,194     
  405     

Mead Johnson Nutrition Co.

     32,616     
  464     

Molson Coors Brewing Co., Class B

     42,704     
  737     

Mondelez International, Inc., Class A

     32,161     
  229     

Monster Beverage Corp. *

     35,432     
  337     

PepsiCo, Inc.

     33,752     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

5

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Consumer Staples — (Continued)

    
  395     

Philip Morris International, Inc.

   $ 34,554     
  1,470     

Post Holdings, Inc. *

     102,209     
  445     

Procter & Gamble Co./The

     33,280     
  771     

Reynolds American, Inc.

     35,647     
  11,186     

SUPERVALU, Inc. *

     75,172     
  790     

Sysco Corp.

     32,474     
  3,022     

Tootsie Roll Industries, Inc.

     96,847     
  763     

Tyson Foods, Inc., Class A

     38,171     
  1,907     

United Natural Foods, Inc. *

     83,741     
  1,958     

Universal Corp.

     110,719     
  370     

Walgreens Boots Alliance, Inc.

     31,132     
  475     

Wal-Mart Stores, Inc.

     27,933     
  1,386     

WestRock Co.

     70,194     
  2,063     

WhiteWave Foods Co./The *

     83,801     
  1,005     

Whole Foods Market, Inc.

     29,289     
              2,542,858     

 

Energy – 10.1%

    
  394     

Anadarko Petroleum Corp.

     23,618     
  630     

Apache Corp.

     30,969     
  17,620     

Arch Coal Inc *

     21,849     
  4,130     

Atwood Oceanics, Inc.

     65,582     
  552     

Baker Hughes, Inc.

     29,867     
  16,258     

Bill Barrett Corp. *

     102,097     
  1,146     

Cabot Oil & Gas Corp.

     21,588     
  597     

Cameron International Corp. *

     40,789     
  2,773     

CARBO Ceramics, Inc.

     51,691     
  3,895     

Chesapeake Energy Corp.

     20,526     
  358     

Chevron Corp.

     32,663     
  647     

Cimarex Energy Co.

     76,994     
  600     

ConocoPhillips

     32,404     
  2,162     

Consol Energy, Inc.

     17,035     
  7,738     

Denbury Resources, Inc.

     28,632     
  661     

Devon Energy Corp.

     30,426     
  1,219     

Diamond Offshore Drilling, Inc.

     27,584     
  1,170     

Dril-Quip, Inc. *

     73,866     
  1,405     

Energen Corp.

     83,280     
  1,708     

Ensco PLC, Class A

     29,246     
  364     

EOG Resources, Inc.

     30,375     
  355     

EQT Corp.

     20,310     
  376     

Exxon Mobil Corp.

     30,702     
  879     

FMC Technologies, Inc. *

     29,900     
  748     

Halliburton Co.

     29,802     
  11,388     

Helix Energy Solutions Group, Inc. *

     73,793     
  496     

Helmerich & Payne, Inc.

     28,873     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Energy — (Continued)

    
  497     

Hess Corp.

   $ 29,317     
  1,413     

HollyFrontier Corp.

     67,943     
  856     

Kinder Morgan, Inc.

     20,165     
  1,749     

Marathon Oil Corp.

     30,625     
  570     

Marathon Petroleum Corp.

     33,284     
  926     

Murphy Oil Corp.

     26,456     
  2,718     

Nabors Industries Ltd.

     27,484     
  695     

National Oilwell Varco, Inc.

     25,962     
  886     

Newfield Exploration Co. *

     33,911     
  2,280     

Noble Corp. PLC

     30,261     
  2,898     

Noble Energy, Inc.

     106,286     
  388     

Occidental Petroleum Corp.

     29,334     
  1,738     

Oceaneering International, Inc.

     76,030     
  2,703     

Oil States International, Inc.*

     85,740     
  4,857     

Patterson-UTI Energy, Inc.

     78,785     
  1,042     

Peabody Energy Corp.

     11,876     
  361     

Phillips 66

     33,064     
  227     

Pioneer Natural Resources Co.

     32,839     
  2,161     

QEP Resources, Inc.

     34,136     
  760     

Range Resources Corp.

     21,711     
  1,676     

Rowan Cos. PLC

     34,063     
  350     

Schlumberger Ltd.

     26,968     
  2,110     

SM Energy Co.

     61,979     
  1,621     

Southwestern Energy Co. *

     14,609     
  963     

Spectra Energy Corp.

     25,231     
  4,945     

Superior Energy Services, Inc.

     77,484     
  286     

Tesoro Corp.

     32,896     
  4,230     

Tidewater, Inc.

     40,230     
  2,083     

Transocean Ltd.

     29,909     
  5,106     

Unit Corp. *

     92,263     
  442     

Valero Energy Corp.

     31,746     
  550     

Williams Cos., Inc./The

     20,096     
  1,710     

World Fuel Services Corp.

     74,527     
  4,150     

WPX Energy, Inc. *

     35,606     
              2,517,277     

 

Financials — 7.6%

    
  139     

ACE Ltd.

     15,960     
  86     

Affiliated Managers Group, Inc. *

     15,194     
  248     

Aflac, Inc.

     16,211     
  229     

Alexander & Baldwin, Inc.

     8,682     
  34     

Alleghany Corp. *

     17,564     
  240     

Allstate Corp.

     15,070     
  190     

American Express Co.

     13,584     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

6

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Financials — (Continued)

    
  232     

American Financial Group, Inc.

   $ 17,183     
  248     

American International Group, Inc.

     15,770     
  130     

Ameriprise Financial, Inc.

     14,657     
  155     

Aon PLC

     14,660     
  2,631     

Apollo Investment Corp. (a)

     16,707     
  369     

Arthur J Gallagher & Co.

     16,122     
  349     

Aspen Insurance Holdings Ltd.

     17,631     
  901     

Associated Banc-Corp.

     18,480     
  198     

Assurant, Inc.

     16,918     
  1,023     

Astoria Financial Corp.

     16,484     
  693     

BancorpSouth, Inc.

     18,645     
  913     

Bank of America Corp.

     15,906     
  260     

Bank of Hawaii Corp.

     17,990     
  362     

Bank of New York Mellon Corp./The

     15,863     
  397     

BB&T Corp.

     15,320     
  109     

Berkshire Hathaway, Inc., Class B *

     14,623     
  47     

BlackRock, Inc.

     17,259     
  506     

Brown & Brown, Inc.

     16,420     
  195     

Capital One Financial Corp.

     15,275     
  553     

Cathay General Bancorp

     18,966     
  262     

CBOE Holdings, Inc.

     18,911     
  430     

CBRE Group, Inc. *

     16,128     
  478     

Charles Schwab Corp./The

     16,121     
  119     

Chubb Corp./The

     15,584     
  277     

Cincinnati Financial Corp.

     16,928     
  276     

Citigroup, Inc.

     14,938     
  160     

CME Group, Inc.

     15,672     
  348     

Comerica, Inc.

     16,132     
  383     

Commerce Bancshares, Inc.

     17,565     
  192     

Crown Castle International Corp.

     16,469     
  259     

Cullen/Frost Bankers, Inc.

     18,045     
  272     

Discover Financial Services

     15,463     
  578     

E*TRADE Financial Corp. *

     17,585     
  406     

East West Bancorp, Inc.

     17,622     
  458     

Eaton Vance Corp.

     16,465     
  47     

Everest Re Group Ltd.

     8,634     
  524     

Federated Investors, Inc., Class B

     16,408     
  760     

Fifth Third Bancorp

     15,719     
  404     

First American Financial Corp.

     15,938     
  1,144     

First Horizon National Corp.

     17,009     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Financials — (Continued)

    
  1,804     

First Niagara Financial Group, Inc.

   $ 19,447     
  924     

FirstMerit Corp.

     18,689     
  932     

FNF Group, Class A

     33,421     
  357     

Franklin Resources, Inc.

     14,947     
  1,328     

Fulton Financial Corp.

     19,220     
  3,144     

Genworth Financial, Inc., Class A *

     15,875     
  78     

Goldman Sachs Group, Inc./The

     14,914     
  462     

Greenhill & Co., Inc.

     12,252     
  621     

Hancock Holding Co.

     18,097     
  206     

Hanover Insurance Group, Inc.

     17,439     
  317     

Hartford Financial Services Group, Inc./The

     14,488     
  63     

Intercontinental Exchange Group, Inc.

     16,254     
  642     

International Bancshares Corp.

     19,578     
  433     

Invesco Ltd.

     14,602     
  1,089     

Janus Capital Group, Inc.

     17,198     
  206     

Hanover Insurance Group, Inc.

     17,439     
  104     

Jones Lang LaSalle, Inc.

     17,267     
  233     

JPMorgan Chase & Co.

     15,554     
  452     

Kemper Corp.

     18,576     
  1,086     

KeyCorp

     14,233     
  322     

Legg Mason, Inc.

     14,274     
  690     

Leucadia National Corp.

     12,205     
  295     

Lincoln National Corp.

     16,197     
  397     

Loews Corp.

     15,026     
  121     

M&T Bank Corp.

     15,195     
  268     

Marsh & McLennan Cos., Inc.

     14,827     
  153     

McGraw Hill Financial, Inc.

     14,735     
  317     

Mercury General Corp.

     16,415     
  299     

MetLife, Inc.

     15,297     
  142     

Moody’s Corp.

     14,671     
  437     

Morgan Stanley

     14,981     
  270     

MSCI, Inc., Class A

     18,901     
  284     

NASDAQ OMX Group, Inc./The

     16,660     
  940     

New York Community Bancorp, Inc.

     15,408     
  209     

Northern Trust Corp.

     15,637     
  1,040     

Old Republic International Corp.

     19,719     
  949     

People’s United Financial, Inc.

     15,892     
  162     

PNC Financial Services Group, Inc./The

     15,498     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

7

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Financials — (Continued)

    
  377     

Primerica, Inc.

   $ 19,333     
  280     

Principal Financial Group, Inc.

     14,419     
  488     

Progressive Corp./The

     15,049     
  325     

Prosperity Bancshares, Inc.

     18,002     
  185     

Prudential Financial, Inc.

     16,017     
  311     

Raymond James Financial, Inc.

     18,237     
  1,572     

Regions Financial Corp.

     15,945     
  180     

Reinsurance Group of America, Inc.

     16,561     
  43     

Royal Bank of Canada

     2,444     
  323     

SEI Investments Co.

     17,579     
  121     

Signature Bank *

     19,123     
  1,780     

SLM Corp. *

     12,022     
  141     

StanCorp Financial Group, Inc.

     16,046     
  205     

State Street Corp.

     14,846     
  368     

SunTrust Banks, Inc.

     15,976     
  133     

SVB Financial Group *

     17,595     
  551     

Synovus Financial Corp.

     18,405     
  204     

T. Rowe Price Group, Inc.

     15,535     
  1,056     

TCF Financial Corp.

     16,179     
  252     

Torchmark Corp.

     15,277     
  143     

Travelers Cos., Inc./The

     16,384     
  711     

Trustmark Corp.

     17,956     
  348     

U.S. Bancorp

     15,270     
  443     

Unum Group

     16,263     
  1,723     

Valley National Bancorp

     19,190     
  298     

W.R. Berkley Corp.

     16,609     
  418     

Waddell & Reed Financial, Inc., Class A

     15,617     
  727     

Washington Federal, Inc.

     18,781     
  458     

Webster Financial Corp.

     18,408     
  274     

Wells Fargo & Co.

     15,085     
  328     

Westamerica Bancorp

     16,072     
  389     

XL Group PLC

     14,850     
  522     

Zions Bancorp.

     15,652     
        1,900,796     

 

Health Care — 9.6%

    
  491     

Abbott Laboratories

     22,067     
  346     

AbbVie, Inc.

     20,102     
  194     

Aetna, Inc.

     19,958     
  622     

Agilent Technologies, Inc.

     26,013     
  130     

Alexion Pharmaceuticals, Inc. *

     23,172     
  221     

Allergan PLC *

     69,316     
  3,163     

Allscripts Healthcare Solutions, Inc. *

     48,165     
  221     

AmerisourceBergen Corp.

     21,776     
  145     

Amgen, Inc.

     23,336     
  155     

Anthem, Inc.

     20,233     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Health Care — (Continued)

    
  591     

Baxter International, Inc.

   $ 22,251     
  319     

Becton Dickinson and Co.

     47,888     
  76     

Biogen Idec, Inc. *

     21,807     
  308     

Bio-Rad Laboratories, Inc., Class A *

     43,041     
  434     

Bio-Techne Corp.

     39,547     
  1,381     

Boston Scientific Corp. *

     25,252     
  368     

Bristol-Myers Squibb Co.

     24,648     
  118     

C.R. Bard, Inc.

     22,039     
  278     

Cardinal Health, Inc.

     24,146     
  188     

Celgene Corp. *

     20,623     
  359     

Cerner Corp. *

     21,414     
  629     

Charles River Laboratories International, Inc. *

     48,192     
  159     

Cigna Corp.

     21,481     
  785     

Community Health Systems, Inc.*

     22,717     
  264     

Cooper Cos., Inc./The

     38,643     
  295     

DaVita HealthCare Partners, Inc. *

     21,576     
  423     

DENTSPLY International, Inc.

     25,645     
  162     

Edwards LifeSciences Corp. *

     26,423     
  271     

Eli Lilly & Co.

     22,193     
  562     

Endo International PLC *

     34,550     
  267     

Express Scripts Holding Co. *

     22,820     
  212     

Gilead Sciences, Inc.

     22,490     
  654     

Health Net, Inc. *

     41,383     
  312     

Henry Schein, Inc. *

     48,790     
  820     

Hill-Rom Holdings, Inc.

     41,749     
  3,981     

HMS Holdings Corp. *

     48,292     
  1,092     

Hologic, Inc. *

     44,066     
  123     

Humana, Inc.

     20,791     
  583     

IDEXX Laboratories, Inc. *

     41,291     
  44     

Intuitive Surgical, Inc. *

     22,968     
  237     

Johnson & Johnson

     23,949     
  549     

Laboratory Corp. of America Holdings *

     66,693     
  539     

LifePoint Health, Inc. *

     38,574     
  493     

Mallinckrodt PLC *

     33,496     
  1,051     

Masimo Corp. *

     43,614     
  110     

McKesson Corp.

     20,921     
  535     

Mednax, Inc. *

     38,212     
  612     

Medtronic PLC

     46,133     
  406     

Merck & Co., Inc.

     21,517     
  142     

Mettler-Toledo International, Inc. *

     48,718     
  437     

Mylan NV *

     22,403     
  1,289     

Owens & Minor, Inc.

     49,631     
  458     

Patterson Companies, Inc.

     20,886     
  474     

PerkinElmer, Inc.

     25,187     
  123     

Perrigo Co. PLC (Ireland)

     18,334     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

8

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Health Care — (Continued)

    
  678     

Pfizer, Inc.

   $ 22,219     
  323     

Quest Diagnostics, Inc.

     22,085     
  43     

Regeneron Pharmaceuticals, Inc. *

     23,180     
  842     

ResMed, Inc.

     50,146     
  329     

St Jude Medical, Inc.

     20,768     
  672     

STERIS PLC

     51,299     
  230     

Stryker Corp.

     22,143     
  334     

Teleflex, Inc.

     43,962     
  462     

Tenet Healthcare Corp. *

     15,343     
  177     

Thermo Fisher Scientific, Inc.

     24,454     
  267     

United Therapeutics Corp. *

     40,702     
  197     

UnitedHealth Group, Inc.

     22,207     
  323     

Universal Health Services, Inc., Class B

     39,223     
  275     

Varian Medical Systems, Inc. *

     22,175     
  771     

VCA, Inc. *

     42,444     
  523     

Vertex Pharmaceuticals, Inc. *

     67,706     
  183     

Waters Corp. *

     24,331     
  501     

WellCare Health Plans, Inc. *

     41,332     
  221     

Zimmer Holdings, Inc.

     22,351     
  554     

Zoetis, Inc.

     25,872     
        2,385,064     

 

Industrials – 9.9%

    
  126     

3M Co.

     19,761     
  95     

Acuity Brands, Inc.

     22,038     
  573     

ADT Corp./The

     20,312     
  1,354     

AECOM *

     43,086     
  378     

AGCO Corp.

     18,995     
  245     

Alaska Air Group, Inc.

     19,543     
  297     

Allegion PLC

     19,954     
  683     

AMETEK, Inc.

     38,572     
  669     

Avery Dennison Corp.

     44,131     
  383     

B/E Aerospace, Inc.

     17,701     
  137     

Boeing Co./The

     19,898     
  642     

Brink’s Co./The

     20,670     
  189     

Carlisle Cos., Inc.

     16,704     
  256     

Caterpillar, Inc.

     18,603     
  268     

CH Robinson Worldwide, Inc.

     18,060     
  212     

Cintas Corp.

     19,393     
  328     

CLARCOR, Inc.

     17,344     
  372     

Clean Harbors, Inc. *

     16,122     
  531     

Copart, Inc. *

     20,971     
  353     

Crane Co.

     18,353     
  666     

CSX Corp.

     18,934     
  162     

Cummins, Inc.

     16,234     
  207     

Danaher Corp.

     19,925     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Industrials — (Continued)

    
  234     

Deere & Co.

   $ 18,586     
  477     

Delta Air Lines, Inc.

     22,179     
  313     

Deluxe Corp.

     18,383     
  579     

Donaldson Co., Inc.

     18,181     
  301     

Dover Corp.

     19,830     
  171     

Dun & Bradstreet Corp./The

     18,451     
  342     

Eaton Corp. PLC

     19,915     
  391     

Emerson Electric Co.

     19,541     
  185     

Equifax, Inc.

     20,576     
  224     

Esterline Technologies Corp. *

     21,300     
  373     

Expeditors International of Washington, Inc.

     18,096     
  492     

Fastenal Co.

     19,983     
  118     

FedEx Corp.

     18,786     
  428     

Flowserve Corp.

     19,801     
  408     

Fluor Corp.

     19,851     
  372     

Fortune Brands Home & Security, Inc.

     20,429     
  453     

FTI Consulting, Inc. *

     16,922     
  391     

GATX Corp.

     18,105     
  1,312     

General Cable Corp.

     19,995     
  128     

General Dynamics Corp.

     18,762     
  740     

General Electric Co.

     22,146     
  271     

Genesee & Wyoming, Inc., Class A *

     18,802     
  274     

Graco, Inc.

     20,658     
  559     

Granite Construction, Inc.

     22,775     
  1,613     

Harsco Corp.

     16,836     
  651     

Herman Miller, Inc.

     20,628     
  395     

HNI Corp.

     17,479     
  186     

Honeywell International, Inc.

     19,293     
  186     

Hubbell, Inc., Class B

     18,453     
  166     

Huntington Ingalls Industries, Inc.

     21,700     
  258     

IDEX Corp.

     20,365     
  216     

Illinois Tool Works, Inc.

     20,313     
  333     

Ingersoll-Rand PLC

     19,520     
  523     

ITT Corp.

     20,760     
  466     

Jacobs Engineering Group, Inc.*

     20,585     
  239     

JB Hunt Transport Services, Inc.

     18,685     
  989     

Joy Global, Inc.

     15,185     
  205     

Kansas City Southern

     18,662     
  1,080     

KBR, Inc.

     20,993     
  644     

Kennametal, Inc.

     18,843     
  273     

Kirby Corp. *

     17,618     
  166     

L-3 Communications Holdings, Inc.

     20,331     
  270     

Landstar System, Inc.

     16,835     
  154     

Lennox International, Inc.

     20,981     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

9

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Industrials — (Continued)

    
  324     

Lincoln Electric Holdings, Inc.

   $ 18,317     
  89     

Lockheed Martin Corp.

     19,454     
  212     

ManpowerGroup

     19,161     
  689     

Masco Corp.

     20,620     
  488     

Matson, Inc.

     25,221     
  415     

MSA Safety, Inc.

     19,467     
  268     

MSC Industrial Direct Co., Inc., Class A

     16,514     
  279     

Nordson Corp.

     20,263     
  235     

Norfolk Southern Corp.

     22,318     
  108     

Northrop Grumman Corp.

     20,055     
  248     

Orbital ATK, Inc.

     21,325     
  466     

Oshkosh Corp.

     20,460     
  336     

PACCAR, Inc.

     17,443     
  177     

Parker Hannifin Corp.

     18,544     
  336     

Pentair PLC

     19,042     
  906     

Pitney Bowes, Inc.

     19,578     
  79     

Precision Castparts Corp.

     18,365     
  882     

Quanta Services, Inc. *

     19,439     
  172     

Raytheon Co.

     21,297     
  270     

Regal Beloit Corp.

     17,386     
  436     

Republic Services, Inc.

     19,149     
  350     

Robert Half International, Inc.

     17,900     
  173     

Rockwell Automation, Inc.

     18,463     
  219     

Rockwell Collins, Inc.

     20,292     
  658     

Rollins, Inc.

     17,854     
  112     

Roper Technologies, Inc.

     21,758     
  1,196     

RR Donnelley & Sons Co.

     19,239     
  244     

Ryder System, Inc.

     16,091     
  115     

Snap-on, Inc.

     19,844     
  471     

Southwest Airlines Co.

     21,623     
  312     

SPX Corp.

     3,443     
  324     

SPX FLOW, Inc. *

     10,901     
  186     

Stanley Black & Decker, Inc.

     20,340     
  125     

Stericycle, Inc. *

     15,150     
  834     

Terex Corp.

     17,089     
  471     

Textron, Inc.

     20,078     
  590     

Timken Co./The

     19,012     
  148     

Towers Watson & Co., Class A

     19,901     
  740     

Trinity Industries, Inc.

     20,090     
  360     

Triumph Group, Inc.

     14,402     
  512     

Tyco International PLC

     18,064     
  212     

Union Pacific Corp.

     17,830     
  185     

United Parcel Service, Inc., Class B

     19,019     
  287     

United Rentals, Inc. *

     22,610     
  192     

United Technologies Corp.

     18,468     
  2,480     

UTi Worldwide, Inc. *

     17,360     
  172     

Valmont Industries, Inc.

     20,185     
  88     

W.W. Grainger, Inc.

     17,724     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Industrials — (Continued)

    
  194     

Wabtec Corp.

   $ 15,546     
  425     

Waste Connections, Inc.

     23,136     
  356     

Waste Management, Inc.

     19,117     
  148     

Watsco, Inc.

     18,782     
  678     

Werner Enterprises, Inc.

     18,267     
  409     

Woodward, Inc.

     20,630     
  1,641     

Worthington Industries, Inc.

     50,507     
  607     

Xylem, Inc.

     22,640     
        2,448,195     

 

Information Technology — 9.6%

    
  1,482     

3D Systems Corp. *

     13,520     
  166     

Accenture PLC, Class A

     17,845     
  856     

ACI Worldwide, Inc. *

     20,133     
  926     

Acxiom Corp. *

     21,196     
  206     

Adobe Systems, Inc. *

     18,837     
  1,208     

ADTRAN, Inc.

     19,696     
  236     

Akamai Technologies, Inc. *

     13,569     
  206     

Alliance Data Systems Corp. *

     59,070     
  24     

Alphabet, Inc., Class A *

     18,590     
  336     

Altera Corp.

     17,714     
  313     

Amphenol Corp., Class A

     17,254     
  296     

Analog Devices, Inc.

     18,263     
  210     

ANSYS, Inc. *

     19,603     
  147     

Apple, Inc.

     17,369     
  1,019     

Applied Materials, Inc.

     19,119     
  348     

Arrow Electronics, Inc. *

     19,677     
  2,714     

Atmel Corp.

     23,477     
  313     

Autodesk, Inc. *

     19,835     
  205     

Automatic Data Processing, Inc.

     17,700     
  463     

Avnet, Inc.

     20,983     
  323     

Broadcom Corp., Class A

     17,658     
  357     

Broadridge Financial Solutions, Inc.

     19,622     
  585     

CA, Inc.

     16,441     
  951     

Cadence Design Systems, Inc. *

     21,198     
  872     

Ciena Corp. *

     21,845     
  610     

Cisco Systems, Inc.

     16,627     
  225     

Citrix Systems, Inc. *

     17,252     
  253     

Cognizant Technology Solutions Corp., Class A *

     16,346     
  512     

CommVault Systems, Inc. *

     20,986     
  251     

Computer Sciences Corp.

     7,859     
  853     

Convergys Corp.

     21,962     
  504     

CoreLogic, Inc. *

     18,573     
  939     

Corning, Inc.

     17,582     
  689     

Cree, Inc. *

     19,035     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

10

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Information Technology — (Continued)

    
  251     

CSRA, Inc. *

   $ 7,904     
  1,948     

Cypress Semiconductor Corp.

     21,078     
  601     

Diebold, Inc.

     20,824     
  186     

DST Systems, Inc.

     22,803     
  613     

eBay, Inc. *

     18,149     
  241     

Electronic Arts, Inc. *

     16,340     
  642     

EMC Corp.

     16,260     
  76     

Equinix, Inc.

     22,670     
  130     

F5 Networks, Inc. *

     13,392     
  182     

Facebook, Inc., Class A

     19,001     
  118     

FactSet Research Systems, Inc.

     20,021     
  226     

Fair Isaac Corp.

     21,549     
  1,391     

Fairchild Semiconductor International, Inc. *

     27,182     
  231     

Fidelity National Information Services, Inc.

     14,704     
  343     

First Solar, Inc. *

     19,369     
  187     

Fiserv, Inc. *

     18,000     
  564     

FLIR Systems, Inc.

     17,229     
  218     

Gartner, Inc. *

     20,369     
  341     

Global Payments, Inc.

     24,172     
  441     

Harris Corp.

     36,632     
  573     

Hewlett Packard Enterprise Co.

     8,522     
  573     

HP, Inc.

     7,191     
  733     

Ingram Micro, Inc., Class A

     22,665     
  1,044     

Integrated Device Technology, Inc. *

     29,269     
  574     

Intel Corp.

     19,952     
  396     

InterDigital, Inc.

     20,866     
  107     

International Business Machines Corp.

     14,885     
  1,785     

Intersil Corp., Class A

     25,843     
  181     

Intuit, Inc.

     18,170     
  594     

Itron, Inc. *

     21,369     
  854     

Jabil Circuit, Inc.

     21,866     
  277     

Jack Henry & Associates, Inc.

     22,019     
  602     

Juniper Networks, Inc.

     18,143     
  327     

KLA-Tencor Corp.

     21,717     
  223     

Lam Research Corp.

     17,475     
  637     

Lexmark International, Inc., Class A

     21,880     
  401     

Linear Technology Corp.

     18,327     
  691     

ManTech International Corp., Class A

     23,136     
  173     

MasterCard, Inc., Class A

     16,908     
  750     

Mentor Graphics Corp.

     14,041     
  381     

Microchip Technology, Inc.

     18,372     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Information Technology — (Continued)

    
  1,038     

Micron Technology, Inc. *

   $ 16,529     
  367     

Microsoft Corp.

     19,934     
  2,561     

Monster Worldwide, Inc. *

     16,492     
  253     

Motorola Solutions, Inc.

     18,148     
  653     

National Instruments Corp.

     20,515     
  765     

NCR Corp. *

     20,750     
  514     

NetApp, Inc.

     15,773     
  691     

NeuStar, Inc., Class A *

     17,420     
  402     

Nielsen Holdings PLC

     18,768     
  725     

NVIDIA Corp.

     23,003     
  425     

Oracle Corp.

     16,543     
  349     

Paychex, Inc.

     18,939     
  348     

Plantronics, Inc.

     18,394     
  1,773     

Polycom, Inc. *

     24,166     
  543     

PTC, Inc. *

     19,566     
  373     

Qorvo, Inc. *

     21,670     
  274     

QUALCOMM, Inc.

     13,362     
  620     

Rackspace Hosting, Inc. *

     17,747     
  219     

Red Hat, Inc. *

     17,832     
  1,852     

Rovi Corp. *

     21,871     
  228     

Salesforce.com, Inc. *

     18,201     
  314     

SanDisk Corp.

     23,188     
  323     

Seagate Technology PLC

     11,607     
  1,132     

Semtech Corp. *

     22,746     
  443     

Silicon Laboratories, Inc. *

     23,994     
  223     

Skyworks Solutions, Inc.

     18,496     
  479     

SolarWinds, Inc.

     27,973     
  437     

Solera Holdings, Inc.

     23,473     
  1,665     

SunEdison, Inc. *

     5,313     
  768     

Symantec Corp.

     15,041     
  398     

Synopsys, Inc. *

     19,912     
  270     

TE Connectivity Ltd.

     18,107     
  294     

Tech Data Corp. *

     19,884     
  520     

Teradata Corp. *

     15,556     
  334     

Texas Instruments, Inc.

     19,404     
  349     

Total System Services, Inc.

     19,503     
  989     

Trimble Navigation Ltd. *

     22,638     
  616     

VeriFone Systems, Inc. *

     17,655     
  231     

VeriSign, Inc. *

     20,625     
  220     

Visa, Inc., Class A

     17,351     
  1,894     

Vishay Intertechnology, Inc.

     22,577     
  196     

Western Digital Corp.

     12,229     
  858     

Western Union Co./The

     16,184     
  208     

WEX, Inc. *

     19,588     
  1,508     

Xerox Corp.

     15,912     
  385     

Xilinx, Inc.

     19,154     
  1,483     

Yahoo!, Inc. *

     50,143     
  206     

Zebra Technologies Corp., Class A *

     16,528     
        2,397,104     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

11

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Materials — 9.1%

    
  291     

Air Products & Chemicals, Inc.

   $ 39,772     
  405     

Airgas, Inc.

     55,962     
  920     

Albemarle Corp.

     49,271     
  4,635     

Alcoa, Inc.

     43,387     
  2,213     

Allegheny Technologies, Inc.

     28,035     
  613     

AptarGroup, Inc.

     45,657     
  397     

Ashland, Inc.

     44,756     
  595     

Ball Corp.

     41,314     
  908     

Bemis Co., Inc.

     42,786     
  1,222     

Cabot Corp.

     53,221     
  1,101     

Carpenter Technology Corp.

     39,580     
  670     

CF Industries Holdings, Inc.

     30,894     
  11,797     

Cliffs Natural Resources, Inc.

     26,425     
  2,805     

Commercial Metals Co.

     41,493     
  503     

Compass Minerals International, Inc.

     42,352     
  565     

Cytec Industries, Inc.

     42,269     
  1,095     

Domtar Corp.

     45,005     
  943     

Dow Chemical Co./The

     49,154     
  531     

Eagle Materials, Inc.

     36,696     
  551     

Eastman Chemical Co.

     39,995     
  361     

Ecolab, Inc.

     42,991     
  773     

EI du Pont de Nemours & Co.

     52,066     
  887     

FMC Corp.

     38,127     
  4,256     

Freeport-McMoRan, Inc., Class B

     34,810     
  1,383     

Greif, Inc., Class A

     49,062     
  357     

International Flavors & Fragrances, Inc.

     42,843     
  919     

International Paper Co.

     38,436     
  5,378     

Intrepid Potash, Inc. *

     19,307     
  2,571     

Louisiana-Pacific Corp. *

     47,310     
  492     

LyondellBasell Industries NV, Class A

     47,131     
  256     

Martin Marietta Materials, Inc.

     40,332     
  828     

Minerals Technologies, Inc.

     50,955     
  409     

Monsanto Co.

     38,940     
  1,000     

Mosaic Co./The

     31,633     
  108     

NewMarket Corp.

     44,787     
  2,185     

Newmont Mining Corp.

     40,226     
  924     

Nucor Corp.

     38,307     
  2,066     

Olin Corp.

     44,969     
  1,926     

Owens-Illinois, Inc. *

     37,149     
  611     

Packaging Corp. of America

     41,527     
  414     

PPG Industries, Inc.

     43,778     
  367     

Praxair, Inc.

     41,415     
  735     

Reliance Steel & Aluminum Co.

     43,212     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Materials — (Continued)

    
  769     

Royal Gold, Inc.

   $ 27,636     
  947     

RPM International, Inc.

     44,508     
  662     

Scotts Miracle-Gro Co./The, Class A

     46,224     
  754     

Sealed Air Corp.

     34,206     
  635     

Sensient Technologies Corp.

     42,430     
  150     

Sherwin-Williams Co./The

     41,454     
  788     

Silgan Holdings, Inc.

     42,832     
  1,050     

Sonoco Products Co.

     45,999     
  2,213     

Steel Dynamics, Inc.

     38,485     
  2,471     

United States Steel Corp.

     19,938     
  531     

Valspar Corp./The

     44,873     
  432     

Vulcan Materials Co.

     44,377     
              2,260,299     

 

Real Estate Investment Trusts — 2.3%

    
  91     

Alexandria Real Estate Equities, Inc.

     8,366     
  229     

American Campus Communities, Inc.

     9,262     
  154     

American Tower Corp., Class A

     15,284     
  388     

Apartment Investment & Management Co., Class A

     14,777     
  85     

AvalonBay Communities, Inc.

     15,410     
  413     

BioMed Realty Trust, Inc.

     9,688     
  125     

Boston Properties, Inc.

     15,676     
  111     

Camden Property Trust

     8,484     
  372     

Corporate Office Properties Trust

     8,302     
  557     

Corrections Corp. of America

     14,371     
  435     

Duke Realty Corp.

     8,854     
  335     

Equity One, Inc.

     9,130     
  199     

Equity Residential

     15,922     
  74     

Essex Property Trust, Inc.

     17,028     
  109     

Extra Space Storage, Inc.

     9,154     
  62     

Federal Realty Investment Trust

     9,116     
  70     

Four Corners Property Trust, Inc. *

     1,377     
  564     

General Growth Properties, Inc.

     14,377     
  379     

HCP, Inc.

     13,478     
  206     

Highwoods Properties, Inc.

     8,972     
  316     

Hospitality Properties Trust

     8,771     
  814     

Host Hotels & Resorts, Inc.

     13,511     
  634     

Iron Mountain, Inc.

     17,605     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

12

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 
 

Real Estate Investment Trusts —
(Continued)

    
  120     

Kilroy Realty Corp.

   $ 7,998     
  605     

Kimco Realty Corp.

     15,781     
  386     

Lamar Advertising Co., Class A

     22,543     
  253     

Liberty Property Trust

     8,593     
  191     

Macerich Co./The

     14,947     
  421     

Mack-Cali Realty Corp.

     9,892     
  227     

National Retail Properties, Inc.

     8,720     
  231     

Omega Healthcare Investors, Inc.

     7,940     
  358     

Plum Creek Timber Co., Inc.

     18,181     
  240     

Potlatch Corp.

     8,012     
  370     

Prologis, Inc.

     15,838     
  69     

Public Storage

     16,629     
  359     

Rayonier, Inc.

     8,665     
  172     

Realty Income Corp.

     8,537     
  134     

Regency Centers Corp.

     9,050     
  511     

Senior Housing Properties Trust

     7,381     
  78     

Simon Property Group, Inc.

     14,482     
  74     

SL Green Realty Corp.

     8,728     
  228     

Taubman Centers, Inc.

     16,390     
  244     

UDR, Inc.

     9,010     
  250     

Ventas, Inc.

     13,358     
  161     

Vornado Realty Trust

     15,558     
  244     

Weingarten Realty Investors

     8,518     
  215     

Welltower, Inc.

     13,613     
  512     

Weyerhaeuser Co.

     16,467     
              571,746     

 

Telecommunication Services — 0.6%

    
  923     

AT&T, Inc.

     31,086     
  605     

CenturyLink, Inc.

     16,284     
  3,159     

Frontier Communications Corp.

     15,761     
  199     

Level 3 Communications, Inc. *

     10,109     
  3,268     

Sprint Corp. *

     11,929     
  319     

Telephone & Data Systems, Inc.

     9,035     
  395     

T-Mobile US, Inc. *

     14,016     
  344     

Verizon Communications, Inc.

     15,643     
  2,370     

Windstream Holdings, Inc.

     14,767     
              138,630     
Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Utilities — 9.8%

    
  3,567     

AES Corp.

   $ 35,631     
  668     

AGL Resources, Inc.

     41,802     
  1,180     

Alliant Energy Corp.

     71,030     
  995     

Ameren Corp.

     43,546     
  740     

American Electric Power Co., Inc.

     41,446     
  2,719     

Aqua America, Inc.

     79,809     
  1,240     

Atmos Energy Corp.

     77,260     
  1,693     

Black Hills Corp.

     72,669     
  2,190     

CenterPoint Energy, Inc.

     37,127     
  1,302     

Cleco Corp.

     65,257     
  1,194     

CMS Energy Corp.

     41,805     
  642     

Consolidated Edison, Inc.

     39,877     
  560     

Dominion Resources, Inc., Class A

     37,735     
  511     

DTE Energy Co.

     41,113     
  561     

Duke Energy Corp.

     38,046     
  679     

Edison International

     40,288     
  614     

Entergy Corp.

     40,915     
  831     

Eversource Energy

     42,327     
  1,238     

Exelon Corp.

     33,813     
  1,238     

FirstEnergy Corp.

     38,874     
  2,710     

Great Plains Energy, Inc.

     73,155     
  2,395     

Hawaiian Electric Industries, Inc.

     68,437     
  1,131     

IDACORP, Inc.

     76,984     
  4,052     

MDU Resources Group, Inc.

     70,579     
  1,320     

National Fuel Gas Co.

     60,372     
  395     

NextEra Energy, Inc.

     39,437     
  2,442     

NiSource, Inc.

     46,864     
  2,082     

NRG Energy, Inc.

     25,730     
  2,403     

OGE Energy Corp.

     62,735     
  3     

ONE Gas, Inc.

     122     
  1,279     

ONEOK, Inc.

     37,718     
  1,535     

Pepco Holdings, Inc.

     39,410     
  808     

PG&E Corp.

     42,586     
  666     

Pinnacle West Capital Corp.

     42,182     
  2,637     

PNM Resources, Inc.

     76,485     
  1,298     

PPL Corp.

     44,194     
  999     

Public Service Enterprise Group, Inc.

     39,080     
  3,645     

Questar Corp.

     69,077     
  754     

SCANA Corp.

     44,563     
  413     

Sempra Energy

     41,001     
  940     

Southern Co./The

     41,878     
  1,953     

TECO Energy, Inc.

     51,401     
  2,025     

UGI Corp.

     70,202     
  1,692     

Vectren Corp.

     72,043     
  832     

WEC Energy Group, Inc.

     41,051     
  1,858     

Westar Energy, Inc.

     79,291     
 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

13

 
Cloud Capital Strategic All Cap Fund   November 30, 2015

 

Schedule of Investments – (Unaudited) (Continued)

 

Shares          Fair Value       

 

Common Stocks — (Continued)

          

 

Utilities — (Continued)

    
  1,219     

WGL Holdings, Inc.

   $ 75,181     
  1,165     

Xcel Energy, Inc.

     41,547     
        2,433,675     

 
 

Total Common Stocks
(Cost $21,063,098)

     22,014,044     

 

Exchange-Traded Funds — 4.9%

          
  10,200     

iShares Russell 2000 ETF

     1,214,718     

 
 

Total Exchange-Traded Funds
(Cost $1,126,489)

     1,214,718     

 

Cash Equivalents — 6.5%

          
  175,422     

FOLIOfn Investment Cash Account, 0.01% (b)

     175,422     
  1,440,284     

FOLIOfn Investment Sweep Account, 0.01% (b)

     1,440,284     

 
 

Total Cash Equivalents
(Cost $1,615,706)

     1,615,706     

 
 

Total Investments
(Cost $23,805,293) — 99.9%

     24,844,468     

 
 

Other Assets in Excess of
Liabilities — 0.1%

     12,978     

 

Net Assets — 100.0%

   $ 24,857,446     

 

(a) Business Development Company.

 

(b) Rate disclosed is the seven day yield as of November 30, 2015.

 

* Non-income producing security.

The sectors shown on the schedule of investments are based on Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Huntington Asset Services, Inc.

 

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

14

Statement of Assets and Liabilities – (Unaudited)

 

November 30, 2015

 

Assets:   

Investments in securities

   

At cost

    $ 23,805,293   
          

At fair value

    $ 24,844,468   

Cash

      3,217   

Receivable for fund shares sold

      21,448   

Interest and dividends receivable

      40,694   

Tax reclaims receivable

      46   

Prepaid expenses

      19,237   

Total assets

      24,929,110   
Liabilities:   

Payable to Adviser

      1,088   

Payable for investments purchased

      1,971   

Payable for fund shares redeemed

      17,002   

Payable to administrator, fund accountant and transfer agent

      17,722   

Administrative servicing fees - Institutional Class

      6,048   

Other accrued expenses

      27,833   

Total Liabilities

      71,664   

Net Assets

    $ 24,857,446   
          
Net Assets consist of:   

Paid in capital

    $ 23,077,511   

Accumulated net investment income

      45,078   

Accumulated net realized gain from investment transactions

      695,682   

Net unrealized appreciation on investments

      1,039,175   

Net Assets

    $ 24,857,446   
          
Institutional Class:   

Shares Outstanding (unlimited number of shares authorized, no par value)

      2,964,533   

Net Asset Value, Offering and Redemption Price Per Share:

    $ 8.38   
          

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

15

Statement of Operations – (Unaudited)

 

For the Six Months Ended November 30, 2015

 

Investment Income   

Dividend income (net of foreign taxes withheld of $148)

    $ 211,592   

Interest income

      91   

Total investment income

      211,683   
Expenses   

Investment Adviser

      60,545   

Administrative servicing - Institutional Class

      22,174   

Administration

      20,251   

Fund accounting

      12,500   

Transfer agent

      19,011   

Custodian

      6,720   

Legal

      8,336   

Trustee

      2,471   

Pricing

      11,722   

Registration

      14,762   

Audit

      21,039   

Report printing

      10,034   

Miscellaneous

      8,063   

Line of credit

      4,798   

Total Expenses

      222,426   

Recoupment of prior expenses waived/reimbursed by Adviser

      11,959   

Fees contractually waived by Adviser

      (60,545 ) 

Net operating expenses

      173,840   

Net investment income

      37,843   
Net Realized and Unrealized Gain/(Loss) on Investments   

Net realized gain on investment securities transactions

      882,076   

Net change in unrealized depreciation of investment securities

      (1,792,533 ) 

Net realized and unrealized loss on investments

      (910,457 ) 

Net decrease in net assets resulting from operations

    $ (872,614 ) 
          

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

16

Statements of Changes in Net Assets

 

     

For the

Six Months

Ended
November 30,
2015

     

For The

Year
Ended
May 31,
2015

  
Increase (Decrease) in Net Assets due to:      (Unaudited )    
Operations:      

Net investment income

    $ 37,843       $ 113,402   

Net realized gain on investment transactions

      882,076         2,550,662   

Net change in unrealized depreciation of investments

      (1,792,533 )       (953,519 ) 

Net increase (decrease) in net assets resulting from operations

      (872,614 )       1,710,545   
Distributions:      

From net investment income:

      —         (193,052 ) 

From net realized gain:

      —         (9,091,051 ) 

Total distributions

      —         (9,284,103 ) 
Capital Transactions:      

Proceeds from shares sold

      2,941,997         11,015,838   

Shares issued in connection with merger (a)

      —         10,333,009   

Reinvestment of distributions

      —         6,464,866   

Amount paid for shares redeemed

      (2,610,285 )       (19,229,951 ) 

Net change resulting from capital transactions

      331,712         8,583,762   

Total Increase (Decrease) in Net Assets

      (540,902 )       1,010,204   

Net Assets:

      

Beginning of period

      25,398,348         24,388,144   

End of period

    $ 24,857,446       $ 25,398,348   
                   

Accumulated net investment income included in net assets at end of period

    $ 45,078       $ 7,235   
Share Transactions:      

Shares sold

      354,314         935,892   

Shares issued in connection with merger (a)

      —         1,239,011   

Shares issued in reinvestment of distributions

      —         789,361   

Shares redeemed

      (312,229 )       (1,356,593 ) 

Total

      42,085         1,607,671   
(a) See Note 1 to the Notes to Financial Statements.

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

17

Financial Highlights

(For a share outstanding during each period)

 

     For the
six months
ended
November 30,
2015		     For the
year ended
May 31,
2015		     For the
year ended
May 31,
2014		     For the
year ended
May 31,
2013		     For the
period ended
May 31,
2012 (a)		  
Institutional Class:     (Unaudited )         
Selected Per Share Data:          

Net asset value, beginning of period

     $    8.69      $ 18.55      $ 17.00      $ 14.46      $ 15.00   

Income from investment operations:

          

Net investment income

     0.01        0.06 (b)      0.13        0.13        0.07   

Net realized and unrealized gain (loss) on investments

     (0.32 )      0.77        3.22        3.54        (0.54 ) 

Total from investment operations

     (0.31 )      0.83        3.35        3.67        (0.47 ) 

Less distributions to shareholders:

          

From net investment income

     —        (0.22 )      (0.08 )      (0.14 )      (0.04 ) 

From net realized gains

     —        (10.47 )      (1.72 )      (0.99 )      (0.03 ) 

Total distributions

     —        (10.69 )      (1.80 )      (1.13 )      (0.07 ) 

Net asset value, end of period

     $    8.38      $ 8.69      $ 18.55      $ 17.00      $ 14.46   
                                         
Total Return(c)     (3.57 )%(d)      7.99 %      20.81 %      26.51 %      (3.12 )%(d) 
Ratios and Supplemental Data:          

Net assets, end of period (000)

     $24,857      $ 25,398      $ 24,388      $ 46,746      $ 38,550   

Ratio of expenses to average net assets

     1.44 %(e)(f)(g)      1.26 %(h)      1.23 %      1.40 %      1.40 %(g) 

Ratio of expenses to average net assets before waiver and recoupment

     1.84 %(g)      1.74 %      1.15 %      1.27 %      1.90 %(g) 

Ratio of net investment income to average net assets

     0.31 %(g)      0.51 %      0.57 %      0.78 %      0.53 %(g) 

Ratio of net investment income to average net assets before waiver and recoupment

     (0.09 )%(g)      0.03 %      0.65 %      0.91 %      0.03 %(g) 

Portfolio turnover rate

     66.79 %(d)      61.71 %      90.14 %      72.66 %      163.38 %(d) 

 

(a) For the period June 29, 2011 (commencement of operations) to May 31, 2012.
(b) Net investment income per share is based on average shares outstanding during the year.
(c) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(d) Not annualized
(e) Includes recoupment of previously waived fees of 0.10%.
(f) Includes 0.04% for line of credit fees.
(g) Annualized
(h) Includes recoupment of previously waived fees of 0.04%.

 

See accompanying notes which are an integral part of these financial statements.

Semi-Annual Report

 

18

Notes to the Financial Statements (Unaudited)

 

November 30, 2015

Note 1. Organization

The Cloud Capital Strategic All Cap Fund (the “Fund”) was organized as open-end diversified series of the Valued Advisers Trust (the “Trust”). The Trust is a management investment company established under the laws of Delaware by an Agreement and Declaration of Trust dated June 13, 2008 (the “Trust Agreement”). The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds authorized by the Board of Trustees (the “Board”). The Fund only offers Institutional Class Shares. The Fund’s Institutional Class Shares commenced operations on June 29, 2011. The Fund’s investment adviser is Cloud Capital LLC (the “Adviser”). The investment objective of the Fund is long-term capital appreciation.

As of the close of business on January 16, 2015, the Fund acquired all the assets and assumed all of the liabilities of the Cloud Capital Strategic Mid Cap Fund (the “Mid Cap Fund”) pursuant to an agreement and plan of reorganization approved by the Board on November 19, 2014. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders.

The acquisition was accomplished by a tax-free exchange of 899,233 Institutional Class shares of the Mid Cap Fund (valued at $10,333,009) for 1,239,011 Institutional Class shares of the Fund outstanding on January 16, 2015. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the identified cost of the investments received from the Mid Cap Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The aggregate net assets of the Fund immediately before the acquisition were $13,682,729. The aggregate net assets of the Mid Cap Fund at January 16, 2015 of $10,333,009, including $555,302 of unrealized appreciation, were combined with those of the Fund, resulting in combined aggregate net assets of $24,015,738.

Assuming the acquisition had been completed on June 1, 2014, the beginning of the annual reporting period of the Fund, the Fund’s pro forma results of operation for the year ended May 31, 2015, are as follows:

 

Net investment income

    $ 85,147   

Net realized and unrealized gains on investment

      2,558,259   

Net increase in net assets resulting from operations

    $ 2,643,406   

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Mid Cap Fund that have been included in the Fund’s statement of operations since January 16, 2015.

 

Semi-Annual Report

 

19

Notes to the Financial Statements (Unaudited) (continued)

 

The Fund’s prospectus provides a description of the investment objective, policies and strategies, along with information on the class of shares currently being offered.

Note 2. Significant Accounting Policies

The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”).

Securities Valuation—All investments in securities are recorded at their estimated fair value as described in Note 3.

Federal Income Taxes—The Fund makes no provision for federal income or excise tax. The Fund intends to qualify each year as a regulated investment company (“RIC”) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. The Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Fund could incur a tax expense.

For the six months ended November 30, 2015, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the six months ended November 30, 2015, the Fund did not incur any interest or penalties. The Fund is subject to examination by U.S. federal tax authorities for the last three tax year ends and the interim tax period since then.

Expenses—Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds based on each Fund’s relative net assets or another appropriate basis.

Security Transactions and Related Income—The Fund follows industry practice and records security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statement and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are accreted or amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic and political developments in a specific country or region.

 

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20

Dividends and Distributions—The Fund intends to distribute substantially all of its net investment income, if any, as dividends to its shareholders on at least an annual basis. The Fund intends to distribute its net realized long-term and short-term capital gains, if any, at least once a year. Dividends to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gains for federal income tax purposes. Where such differences are permanent in nature, they are reclassified among the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effects on net assets, results of operations or net asset values per share of the Fund.

Note 3. Securities Valuation and Fair Value Measurements

Fair value is defined as the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establish a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.

Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value such as pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

 

•  

Level 1—unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date.

•  

Level 2—other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

•  

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments based on the best information available)

 

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21

Notes to the Financial Statements (Unaudited) (continued)

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Equity securities, including common stocks, exchanged-traded funds and real estate investment trusts, are generally valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices more accurately reflect the fair value of such securities. Securities that are traded on any stock exchange are generally valued by the pricing service at the last quoted sale price. Lacking a last sale price, an exchange traded security is generally valued by the pricing service at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued by the pricing service at the NASDAQ Official Closing Price.

When using the market quotations or close prices provided by the pricing service and when the market is considered active, the security will be classified as a Level 1 security. Sometimes, an equity security owned by the Fund will be valued by the pricing service with factors other than market quotations or when the market is considered inactive. When this happens, the security will be classified as a Level 2 security. When market quotations are not readily available, when the Adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect the current fair value, or when certain restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the Adviser, in conformity with guidelines adopted by and subject to review by the Board. These securities will generally be categorized as Level 3 securities.

In accordance with the Trust’s good faith pricing guidelines, the Adviser, is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in the Adviser’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before a Fund’s NAV calculation that may affect a security’s value, or the Adviser is aware of any other data that calls into question the reliability of market quotations. Good faith pricing may also be used in instances when the bonds the Fund invests in may default or otherwise cease to have market quotations readily available.

 

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22

The following is a summary of the inputs used to value the Fund’s investments as of November 30, 2015:

 

      Valuation Inputs          
      Level 1      Level 2      Level 3      Total  

Common Stocks*

    $ 22,014,044       $             —       $             —       $ 22,014,044   

Exchange-Trade Funds

      1,214,718         —         —         1,214,718   

Cash Equivalents

      1,615,706         —         —         1,615,706   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 24,844,468       $ —       $ —       $ 24,844,468   

 

* Please refer to Schedule of Investments for industry classifications.

The Fund did not hold any investments at any time during the reporting period in which other significant observable inputs (Level 2) were used in determining fair value. The Fund also did not hold any investments at any time during the reporting period in which significant unobservable inputs were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period. The Fund did not hold any derivative instruments during the reporting period.

The Trust recognizes transfers between fair value hierarchy levels at the end of the reporting period. There were no transfers between any levels as of November 30, 2015 and the previous reporting period end.

Note 4. Fees and Other Transactions with Affiliates and Other Service Providers

Under the terms of the investment advisory agreement, on behalf of the Fund (the “Agreement”), the Adviser manages the Fund’s investments subject to oversight of the Board. As compensation for its management services, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 0.50% of the average daily net assets of the Fund. For the six months ended November 30, 2015, the Adviser earned fees of $60,545 from the Fund before the waivers and recoupment described below. At November 30, 2015, the Fund owed the Adviser $1,088.

The Adviser has contractually agreed to waive its management fee and/or reimburse certain Fund operating expenses, but only to the extent necessary so that the Fund’s net expenses, excluding brokerage fees and commissions, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, distribution and service (12b-1) fees, extraordinary expenses and indirect expenses (such as fees and expenses of acquired funds) does not exceed 1.40% of the net assets of the Fund. On February 1, 2014, the Adviser contractually agreed to waive, in its entirety, its advisory fees effective February 1, 2014, through September 30, 2016. This contractual arrangement may only be terminated by mutual consent of the Adviser and the Board, and it will automatically terminate upon the termination of the investment advisory agreement between the Fund and the Adviser. The Adviser shall not be entitled to reimbursement for any advisory fees waived for the Fund for the period February 1, 2014 through September 30, 2016. Each waiver or reimbursement of an expense by the Adviser prior

 

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23

Notes to the Financial Statements (Unaudited) (continued)

 

to February 1, 2014, is subject to repayment by the Fund within the three fiscal years following the fiscal year in which the particular expense was incurred, provided that the Fund is able to make the repayment without exceeding the applicable expense limitation. For the six months ended November 30, 2015, expenses totaling $60,545 were waived or reimbursed by the Adviser. This amount is not subject to potential recoupment by the Adviser. At a special meeting of the shareholders held on January 19, 2015, shareholders of the Fund approved a proposal to allow the Advisor to recoup reimbursements provided to the Mid Cap Fund prior to the merger. The Adviser recouped $11,959 during the period June 1, 2015, through November 30, 2015, which had previously been waived in the Mid Cap Fund.

The amounts subject to repayment by the Fund, pursuant to the aforementioned conditions are as follows:

 

Amount    Recoverable through
May 31,		  

$34,434

      2016   

The Trust retains Ultimus Asset Services, LLC (formerly Huntington Asset Services, Inc. – see Subsequent Events) (“Ultimus”) to manage the Fund’s business affairs and provide the Fund with administrative and Chief Compliance Officer services, including all regulatory reporting and necessary office equipment and personnel. For the six months ended November 30, 2015, Ultimus earned fees of $20,251 for administrative and compliance services provided to the Fund. At November 30, 2015, Ultimus was owed $6,750 from the Fund for administrative and compliance services.

The Trust also retains Ultimus to act as the Fund’s transfer agent and to provide fund accounting services. For the six months ended November 30, 2015, Ultimus earned fees of $19,011 for transfer agent services and reimbursement for out-of-pocket expenses incurred in providing transfer agent services. At November 30, 2015, Ultimus was owed $6,805 from the Fund for transfer agent services and out-of-pocket expenses. For the six months ended November 30, 2015, Ultimus earned fees of $12,500 from the Fund for fund accounting services. At November 30, 2015, Ultimus was owed $4,167 from the Fund for fund accounting services.

Certain officers and a trustee of the Trust are members of management and/or employees of Ultimus. Ultimus is a wholly-owned subsidiary of Ultimus Fund Solutions, LLC, the parent company of Unified Financial Securities, LLC (the “Distributor”).

The Fund may pay certain financial intermediaries that provide certain administrative services to shareholders who invest in the Institutional Class shares of the Fund, including record keeping and sub-accounting shareholder accounts. The Fund is authorized to pay up to 0.25% of the average daily net assets of the Fund’s Institutional Class shares. The payments may also be made to certain financial intermediaries in connection with client account maintenance support, statement preparation and transaction processing. The types of payments under this category

 

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24

include, among others, payment of ticket charges per purchase or exchange order placed by a financial intermediary, payment of networking or other recordkeeping fees, or one-time payments for ancillary services such as setting up the Fund on a financial intermediary’s trading systems. For the six months ended November 30, 2015, the Fund incurred administrative servicing fees of $22,174. At November 30, 2015, the Fund owed $6,048 in administrative servicing fees.

The Distributor acts as the principal distributor of the Fund’s shares. A trustee and an officer of the Trust is an officer of the Distributor and such person may be deemed to be an affiliate of the Distributor.

Note 5. Purchases and Sales of Securities

For the six months ended November 30, 2015, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations, were as follows:

 

Purchases    Sales  

$15,074,261

    $ 15,006,381   

There were no purchases or sales of long-term U.S. Government obligations during the six months ended November 30, 2015.

Note 6. Line of Credit

On December 3, 2015, the Trust, on behalf of the Fund, renewed its short-term credit agreement (“Line of Credit”) with Huntington National Bank (“Huntington”), formerly an affiliate of Huntington Asset Services, Inc., expiring on December 3, 2016. Under the terms of the agreement, the Funds may borrow up to $3 million at an interest rate of LIBOR plus 150 basis points. Any borrowings under the Line of Credit are collateralized by securities in the Fund’s portfolio. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. Huntington receives an annual facility fee of 0.125% on $3 million as well as an additional annual fee of 0.125% on any unused portion of the credit facility, invoiced quarterly, for providing the Line of Credit. The Fund will not borrow money, except (a) from a bank, provided that immediately after such borrowing there is an asset coverage of 300% for all borrowings of a Fund; or (b) from a bank or other persons for temporary purposes only, provided that such temporary borrowings are in an amount not exceeding 10% of a Fund’s total assets at the time when the borrowing is made. This limitation does not preclude a Fund from entering into reverse repurchase transactions, provided that the Fund has asset coverage of 300% for all borrowings and repurchase commitments of the Fund pursuant to reverse repurchase transactions. For the six months ended November 30. 2015, the Fund had no borrowings under this Line of Credit.

 

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25

Notes to the Financial Statements (Unaudited) (continued)

 

Note 7. Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Note 8. Beneficial Ownership

The beneficial ownership, either directly or indirectly, of 25% or more of the voting securities of a fund creates a presumption of control of a fund, under Section 2(a)(9) of the Investment Company Act of 1940. At November 30, 2015, TD Ameritrade Trust Company (“TD Ameritrade”) owned, as record shareholder 73% of the outstanding shares of the Fund. It is not known whether TD Ameritrade or any of the underlying beneficial owners owned or controlled 25% or more of the voting securities of the Fund.

Note 9. Federal Tax Information

At November 30, 2015, the net unrealized appreciation (depreciation) of investments for tax purposes was as follows:

 

Tax Cost of
Securities		    Unrealized
Appreciation		    Unrealized
Depreciation		   Net Unrealized
Appreciation
(Depreciation)

$24,404,166

    $1,495,688    $(1,055,386)   $440,302

The difference between book basis and tax basis unrealized appreciation was attributable primarily to the tax deferral of losses on wash sales.

The tax characterization of distributions paid for the fiscal year ended May 31, 2015 was as follows:

 

Ordinary Income*    Long-Term
Capital Gain		    Total Distributions

$1,065,158

    $8,218,945    $9,284,103

 

* Short-term capital gains distributions are treated as ordinary income for tax purposes.

At May 31, 2015, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

 

Undistributed
Ordinary
Income		   Undistributed
Long-Term
Capital Gains		   Accumulated
Capital and
Other Losses		   Unrealized
Appreciation
(Depreciation)		   Total
Accumulated
Earnings (Loss)

$189,617

   $241,831   $(11,734)   $2,232,835   $2,652,549

 

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26

Note 10. Commitments and Contingencies

The Fund indemnifies its officers and trustees for certain liabilities that may arise from performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.

Note 11. Subsequent Events

Management of the Fund has evaluated the need for disclosure and/or adjustments resulting from subsequent events through the date these financials were issued. On November 13, 2015, Huntington Bancshares, Inc. entered into an agreement to sell Huntington Asset Services, Inc. and Unified Financial Services, Inc. to Ultimus Fund Solutions, LLC. The sale closed on December 31, 2015. Management has determined that there were no additional items requiring additional disclosure.

 

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27

Valued Advisers Trust

 

PRIVACY POLICY

The following is a description of the policies of the Valued Advisers Trust (the “Trust”) regarding disclosure of nonpublic personal information that shareholders provide to a series of the Trust (each, a “Fund”) or that the Fund collects from other sources. In the event that a shareholder holds shares of a Fund through a broker-dealer or other financial intermediary, the privacy policy of the financial intermediary would govern how shareholder nonpublic personal information would be shared with nonaffiliated third parties.

Categories of Information a Fund May Collect.

A Fund may collect the following nonpublic personal information about its shareholders:

 

•  

Information the Fund receives from a shareholder on applications or other forms, correspondence, or conversations (such as the shareholder’s name, address, phone number, social security number, and date of birth); and

 

•  

Information about the shareholder’s transactions with the Fund, its affiliates, or others (such as the shareholder’s account number and balance, payment history, cost basis information, and other financial information).

Categories of Information a Fund May Disclose.

A Fund may not disclose any nonpublic personal information about its current or former shareholders to unaffiliated third parties, except as required or permitted by law. A Fund is permitted by law to disclose all of the information it collects, as described above, to its service providers (such as the Fund’s custodian, administrator, transfer agent, accountant and legal counsel) to process shareholder transactions and otherwise provide services to the shareholder.

Confidentiality and Security.

Each Fund shall restrict access to shareholder nonpublic personal information to those persons who require such information to provide products or services to the shareholder. Each Fund shall maintain physical, electronic, and procedural safeguards that comply with federal standards to guard shareholder nonpublic personal information.

Disposal of Information.

The Funds, through their transfer agent, have taken steps to reasonably ensure that the privacy of a shareholder’s nonpublic personal information is maintained at all times, including in connection with the disposal of information that is no longer required to be maintained by the Funds. Such steps shall include, whenever possible, shredding paper documents and records prior to disposal, requiring off-site storage vendors to shred documents maintained in such locations prior to disposal, and erasing and/or obliterating any data contained on electronic media in such a manner that the information can no longer be read or reconstructed.

 

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28

PROXY VOTING

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the most recent twelve month period ended June 30, is available without charge upon request by (1) calling the Fund at (877) 670-2227 and (2) from Fund documents filed with the Securities and Exchange Commission (“SEC”) on the SEC’s website at www.sec.gov.

TRUSTEES

R. Jeffrey Young, Chairman

Ira Cohen

Andrea N. Mullins

OFFICERS

R. Jeffrey Young, Principal Executive Officer and President

Bryan W. Ashmus, Principal Financial Officer and Treasurer

John C. Swhear, Chief Compliance Officer, AML Officer and Vice-President

Carol J. Highsmith, Vice President and Secretary

Matthew J. Miller, Vice President

INVESTMENT ADVISER

Cloud Capital LLC

P.O. Box 451179

Grove, OK 74345

DISTRIBUTOR

Unified Financial Securities, LLC

2960 North Meridian Street, Suite 300

Indianapolis, IN 46208

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Cohen Fund Audit Services, Ltd.

1350 Euclid Avenue, Suite 800

Cleveland, OH 44115

LEGAL COUNSEL

The Law Offices of John H. Lively & Associates, Inc.

A member firm of The 1940 Act Law Group TM

11300 Tomahawk Creek Parkway, Suite 310

Leawood, KS 66211

CUSTODIAN

FOLIOfn Investments, Inc.

8180 Greensboro Drive

8th Floor

McLean, VA 22102

ADMINISTRATOR, TRANSFER AGENT

AND FUND ACCOUNTANT

Ultimus Asset Services, LLC

2960 North Meridian Street, Suite 300

Indianapolis, IN 46208

This report is intended only for the information of shareholders or those who have received the Fund’s prospectus which contains information about the Fund’s management fee and expenses. Please read the prospectus carefully before investing.

Distributed by Unified Financial Securities, LLC

Member FINRA/SIPC

LOGO

To Shareholders of the LS Opportunity Fund,

Prospector Partners, LLC (“Prospector”), which is based in Guilford, CT is the sub-adviser of the LS Opportunity Fund (“LSOFX” or the “Fund”). Prospector has an 18-year long/short equity hedge fund track record with a substantially similar investment objective to LSOFX and brings its experience to our fund in a daily liquid mutual fund format.

The Fund aims to identify compelling long and short investment opportunities through a bottom-up stock selection process based on in-depth analysis of business and financial fundamentals. Through extensive research, implementation of risk management, and no use of leverage in the long book, the Fund strives to do what a successful investment manager should do – preserve capital while delivering above-market returns and managing volatility. For additional information, please visit our website at www.longshortadvisors.com.

Market Review

The six month fiscal period ended November 30, 2015 (the “Period”) was a volatile one. It included an August 2015 drawdown in equity markets of a magnitude not experienced in at least three years. Concerns about economic weakness in China, a global selloff in commodity prices and uncertainty over U.S. Federal Reserve Policy on the direction of interest rates, all helped to stoke the large price swings.

The world over, central bank quantitative easing strategies have endeavored to pin interest rates near record low levels and encourage investors to buy risk assets. These conditions encouraged the doubling of stock prices over the past five years while earnings have grown by less than half that amount. Digging a bit deeper into domestic markets, it is noteworthy that even during the recent sell-off, the long period of “growth” stocks’ outperformance versus “value” has continued.

We believe that investors have increasingly placed a greater premium on companies and industries which are showing unit growth during the tepid economic recovery of the last 8 years. Consequently, since mid-2007, the Russell 1000 Growth Index has outperformed its “Value” counterpart by an astonishing amount. While, to an extent, this makes sense (after all, as interest rates decline, discounted future cash flows should, in theory, be worth more—and growth companies are most levered to this equation), this leverage works both ways. As the economy continues to strengthen, and interest rates eventually increase, we think it quite possible that this trend reverses. Much as was the case during the “tech bubble” of the late-90’s, we are unwilling to proclaim “value investing” dead.

Fund performance was helped by merger and acquisition activity among our financial stocks which are patiently positioned to benefit from higher future interest rates. We feel strongly that reported ROE’s in your banking, brokerage, and

 

1

insurance investments have been muted by today’s prevailing low interest rates as a direct result of coordinated global easing policies of central banks. We also believe that these policies will run their course over the intermediate term and that the yield curve will normalize at higher rate levels. Once that happens, the affected ROE’s will rise and financial stock valuations could expand.

LSOFX finished the Period with a cumulative total return of +0.89%, while the S&P 500® Index (“S&P 500”) lost -0.21% and the HFRX Equity Hedge Index (“HFRX”) of long/short equity hedge funds lost -4.34%.

 

LOGO

Management’s Discussion of Fund Performance

The Fund had several investment factors that unfolded over the course of the Period, including insurance M&A activity which drove positive results for two key holdings: Chubb and StanCorp. In addition, strong consumer spending helped our consumer names while the Fund managed to avoid sectors such as materials, energy, and healthcare by being underexposed to the sectors.

Contributors

The top three contributors to performance during the Period were in the financial sector and on the long side of the portfolio. Chubb (CB), StanCorp (SFG) and Arch Capital (ACGL) combined to add more than 150 basis points to the total return during the Period. Both Chubb and StanCorp were acquisitions during the Period, and Chubb remains amongst the top ten positions at the end of the Period.

Detractors

The top three stocks which detracted from performance during the Period were long positions in Newmont Mining (NEM), Leucadia National (LUK), and Murphy

 

2

Oil (MUR). These three stocks combined to hurt the Period’s performance by fewer than 90 basis points, and each long position continues to be held in the Fund at the end of the Period.

Management Outlook

We continue to take a long-term value approach to investing and the protection of capital remains a key priority. We expect the long book to continue to hold securities with long themes including companies with undervalued assets and strong cash flows that are also attractive M&A candidates, companies levered to interest rate increases, companies potentially benefiting from corporate tax reform and repatriation of foreign cash balances, and companies positioned to benefit from a stronger U.S. consumer.

At Period’s end, the Fund’s top 10 long positions represented approximately 27% of the long book and included Automatic Data (ADP), Berkshire Hathaway (BRK.B), Chubb (CB), Eaton (ETN), Home Depot (HD), McDonalds (MCD), Microsoft (MSFT), Procter and Gamble (PG), T Rowe Price (TROW), and White Mountains Insurance (WTM).

The Fund’s short book is populated with 24 individual companies that we believe have excessive valuations relative to takeout values, aggressive accounting practices, business model challenges, and/or stale brands losing market share.

We appreciate the confidence that you place in us and look forward to reporting to you again following our fiscal year end of May 31, 2016.

Sincerely,

Long Short Advisors

 

3

“The Secret of Wealth Creation is to Avoid Large Losses”

-John Gillespie, portfolio manager

Thank you for choosing the LS Opportunity Fund as a place to invest your assets alongside ours. We appreciate your trust in us to help manage and grow your capital.

Please refer to the Fund’s prospectus for a full description of the investment strategy and for more information about the Fund. You may obtain a current copy of the Fund’s prospectus by calling 877-336-6763, or visiting our website at www.longshortadvisors.com and clicking on the ‘Fund Information’ tab.

For additional questions or to discuss this report in more detail, please contact us at 215-399-9409, or via email at info@longshortadvisors.com

“Don’t time the market, invest in it”

The views and opinions expressed in Management’s Discussion of Fund Performance are those of the adviser and sub-adviser as of the end of the period. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but neither the adviser nor the sub-adviser makes any representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

The S&P 500® Index is a widely recognized, unmanaged index of equity prices and is representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index is an unmanaged benchmark that assumes reinvestment of all distributions and excludes the effect of taxes and fees. Individuals cannot invest directly in this Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. HFRI Equity Hedge Index is compiled by Hedge Fund Research, Inc. It is comprised solely of hedge funds, and is designed to be representative of the overall composition of the hedge fund universe implementing a long/short equity strategy. The Funds’ performance is not intended to reflect the performance of the Index, which is provided for comparison purposes only. The Index is not available for direct investment. HFRX Equity Hedge Index is compiled by Hedge Fund Research, Inc. It is comprised solely of hedge funds, and is designed to be representative of the overall composition of the hedge fund universe implementing a long/short equity strategy. For inclusion in the HFRX indices a hedge fund must meet the HFRI criteria, but also be open to new transparent investment, have at least $50 million assets under

 

4

management and have at least a 24 month track record. The Funds’ performance is not intended to reflect the performance of the Index, which is provided for comparison purposes only. The Index is not available for direct investment.

 

5

Investment Results – (Unaudited)

 

Total Returns*

  

(For the periods ended November 30, 2015)

  

   
                 Average Annual Returns  
     Six
Months		     One
Year		     Three
Year		     Five
Year		     Since Inception
(September  30,
2010)		  

LS Opportunity Fund

     0.89 %      (2.00 )%      7.04 %      5.22 %      5.86 % 

S&P 500® Index**

     (0.21 )%      2.75 %      16.09 %      14.40 %      14.65 % 

 

Total annual operating expenses, as disclosed in the Fund’s prospectus dated September 25, 2015, were 2.96% of average daily net assets (2.51% after fee waivers and expense reimbursements by the Adviser.) Long Short Advisors, LLC (the “Adviser”) has entered into an amended expense limitation agreement, pursuant to which it will waive its fees and/or reimburse other expenses of the Fund until September 30, 2016, so that Total Annual Fund Operating Expenses does not exceed 1.95%. This operating expense limitation does not apply to interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with generally accepted accounting principles, other extraordinary expenses not incurred in the ordinary course of the Fund’s business, dividend expense on short sales, expenses incurred under a Rule 12b-1 plan of distribution, “acquired fund fees and expenses,” and expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Each waiver or reimbursement of an expense by the Adviser is subject to repayment by the Fund within the three fiscal years following the fiscal year in which the expense was incurred, provided that the Fund is able to make the repayment without exceeding the expense limitation in place at the time of the waiver or reimbursement. This agreement may only be terminated by mutual consent of the Adviser and the Board of Trustees.

The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-877-336-6763.

* Return figures reflect any change in price per share and assume the reinvestment of all distributions, if any. For periods prior to April 28, 2015, the Fund had a different sub-adviser than the current sub-adviser. Returns of the Fund prior to April 28, 2015, were achieved by the previous sub-adviser.

** The S&P 500® Index is a widely recognized unmanaged index of equity prices and is representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index is an unmanaged benchmark that assumes reinvestment of all distributions and excludes the effect of taxes and fees.

 

6

Individuals cannot invest directly in this Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company and may be obtained by calling 1-877-336-6763. Please read it carefully before investing.

The Fund is distributed by Unified Financial Securities, LLC, Member FINRA.

Fund Holdings – (Unaudited)

Sector Exposure (11/30/2015)

(Based on Net Assets)

 

     Long     Short     Gross     Net  

Consumer Discretionary

      8.52 %      -0.64 %      9.16 %      7.88 % 

Consumer Staples

      9.40 %      -2.09 %      11.49 %      7.31 % 

Energy

      3.28 %      -0.94 %      4.22 %      2.34 % 

Financials

      44.89 %      -22.46 %      67.35 %      22.43 % 

Health Care

      7.66 %      0.00 %      7.66 %      7.66 % 

Industrials

      5.78 %      0.00 %      5.78 %      5.78 % 

Information Technology

      12.27 %      -0.50 %      12.77 %      11.77 % 

Materials

      0.91 %      0.00 %      0.91 %      0.91 % 

Real Estate Investment Trusts

      1.45 %      0.00 %      1.45 %      1.45 % 

Unclassified

      0.06 %      0.00 %      0.06 %      0.06 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

      94.22 %      -26.63 %      120.85 %      67.59 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

The LS Opportunity Fund (“Fund”) seeks to generate long-term capital appreciation by investing in both long and short positions within a portfolio consisting of primarily publicly-traded common stock, with less risk than that of the stock market in general.

Availability of Portfolio Schedule – (Unaudited)

The 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-Q. The Fund’s Forms N-Q is available at the SEC’s website at www.sec.gov. The Forms N-Q may be reviewed and copied at the Public Reference Room in Washington DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

 

 

7

About The Fund’s Expenses – (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs (such as short-term redemption fees); and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period, and held for the entire period from June 1, 2015 to November 30, 2015.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period Ended November 30, 2015” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the 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 table 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 line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

LS Opportunity
Fund		  

Beginning
Account Value

June 1, 2015

    

Ending

Account Value

November 30, 2015

    

Expenses Paid During

the Period Ended

November 30, 2015*

  

Actual

   $ 1,000.00      $ 1,008.90      $ 14.80   

Hypothetical **

   $ 1,000.00      $ 1,010.27      $ 14.81   

 

*

Expenses are equal to the Fund’s annualized expense ratio of 2.95%, multiplied by the average account value over the period, multiplied by 183/366 .

**

Assumes a 5% return before expenses.

 

8

LS Opportunity Fund

Schedule of Investments

November 30, 2015 (Unaudited)

 

Common Stocks – Long – Domestic – 84.89%    Shares      Fair Value  

Consumer Discretionary – 8.52%

      

Darden Restaurants, Inc.(a)

      4,900       $ 275,233   

Home Depot, Inc./The(a)

      5,700         763,116   

McDonald’s Corp.(a)

      10,100         1,153,016   

Yum! Brands, Inc.(a)

      8,500         616,335   
     

 

 

  
          2,807,700   
     

 

 

  

Consumer Staples – 8.22%

      

Church & Dwight Co., Inc.(a)

      4,600         394,542   

Coca-Cola Co./The(a)

      8,200         349,484   

Colgate-Palmolive Co.(a)

      6,800         446,624   

Mondelez International, Inc. – Class A(a)

      8,700         379,842   

PepsiCo, Inc.(a)

      3,100         310,496   

Procter & Gamble Co./The(a)

      8,700         651,108   

Wal-Mart Stores, Inc.(a)

      3,000         176,520   
     

 

 

  
        2,708,616   
     

 

 

  

Energy – 3.28%

      

ConocoPhillips(a)

      4,100         221,605   

Hess Corp.(a)

      10,500         619,500   

Murphy Oil Corp.(a)

      8,400         240,072   
     

 

 

  
        1,081,177   
     

 

 

  

Financials – 38.07%

      

Aflac, Inc.(a)

      4,900         319,676   

Beneficial Bancorp, Inc.(a)*

      25,100         350,396   

Berkshire Hathaway, Inc. – Class B(a)*

      10,400         1,394,536   

Central Pacific Financial Corp.(a)

      13,700         318,388   

Chubb Corp./The(a)

      7,200         939,816   

Citigroup, Inc.(a)

      8,200         443,538   

Federated Investors, Inc. – Class B

      12,700         397,764   

Franklin Resources, Inc.(a)

      13,200         553,344   

JPMorgan Chase & Co.(a)

      3,000         200,040   

Legg Mason, Inc.(a)

      10,800         479,304   

Leucadia National Corp.(a)

      28,400         502,112   

Marsh & McLennan Cos., Inc.(a)

      5,500         304,150   

Oritani Financial Corp.(a)

      25,400         440,436   

PayPal Holdings, Inc.(a)*

      12,700         447,802   

PJT Partners, Inc. – Class A*

      21,400         501,616   

PNC Financial Services Group, Inc./The(a)

      3,900         372,489   

 

9

See accompanying notes which are an integral part of these financial statements.

LS Opportunity Fund

Schedule of Investments – continued

November 30, 2015 (Unaudited)

 

Common Stocks – Long – Domestic – 84.89% – continued    Shares      Fair Value  

Financials – 38.07% – continued

      

Primerica, Inc.(a)

      11,800       $ 604,632   

ProAssurance Corp.(a)

      9,000         476,190   

Progressive Corp./The(a)

      16,300         502,366   

Safety Insurance Group, Inc.(a)

      8,000         448,080   

Selective Insurance Group, Inc.

      3,900         134,589   

State Street Corp.(a)

      3,700         268,546   

T. Rowe Price Group, Inc.(a)

      9,400         715,810   

U.S. Bancorp(a)

      10,300         452,067   

White Mountains Insurance Group Ltd.(a)

      1,205         973,640   
     

 

 

  
        12,541,327   
     

 

 

  

Health Care – 6.39%

      

Abbott Laboratories(a)

      8,200         368,344   

Invacare Corp.(a)

      11,800         235,056   

Johnson & Johnson(a)

      5,100         516,324   

Merck & Co., Inc.(a)

      8,100         429,381   

Patterson Companies, Inc.(a)

      12,200         555,954   
     

 

 

  
        2,105,059   
     

 

 

  

Industrials – 5.78%

      

Celadon Group, Inc.

      23,100         321,090   

CIRCOR International, Inc.

      7,400         336,330   

Eaton Corp. PLC(a)

      12,900         750,264   

Tyco International PLC

      4,500         158,895   

United Technologies Corp.

      3,500         336,175   
     

 

 

  
        1,902,754   
     

 

 

  

Information Technology – 12.27%

      

Automatic Data Processing, Inc.(a)

      7,500         646,950   

eBay, Inc.(a)*

      6,700         198,253   

FLIR Systems, Inc.(a)

      17,400         531,744   

Microsoft Corp.(a)

      17,200         934,820   

Paychex, Inc.(a)

      6,900         374,325   

Science Applications International Corp.(a)

      11,000         552,640   

VeriSign, Inc.(a)*

      4,300         384,592   

Xilinx, Inc.(a)

      8,400         417,396   
     

 

 

  
        4,040,720   
     

 

 

  

Materials – 0.91%

      

Newmont Mining Corp.(a)

      16,200         298,242   
     

 

 

  

 

10

See accompanying notes which are an integral part of these financial statements.

LS Opportunity Fund

Schedule of Investments – continued

November 30, 2015 (Unaudited)

 

Common Stocks –Long –Domestic –84.89% – continued    Shares      Fair Value  

Real Estate Investment Trusts – 1.45%

      

Four Corners Property Trust, Inc.(a)

      1,599       $ 31,660   

Parkway Properties, Inc.(a)

      26,000         444,080   
     

 

 

  
        475,740   
     

 

 

  

TOTAL COMMON STOCKS – LONG – DOMESTIC
(Cost $27,961,764)

         27,961,335   
     

 

 

  

Common Stocks – Long – International – 9.27%

      

Consumer Staples – 1.18%

      

Diageo PLC(a) ADR

      3,400         389,504   
     

 

 

  

Financials – 6.82%

      

Arch Capital Group Ltd.(a)*

      5,300         384,091   

Endurance Specialty Holdings Ltd.(a)

      8,200         540,872   

RenaissanceRe Holdings Ltd.(a)

      3,300         365,508   

Validus Holdings Ltd.

      9,600         452,928   

XL Group PLC(a)

      13,200         503,976   
     

 

 

  
        2,247,375   
     

 

 

  

Health Care – 1.27%

      

AstraZeneca PLC

      5,200         177,060   

Roche Holding AG

      900         241,208   
     

 

 

  
        418,268   
     

 

 

  

TOTAL COMMON STOCKS – LONG – INTERNATIONAL
(Cost $2,906,370)

         3,055,147   
     

 

 

  
     Contracts         

Options Purchased – Long – 0.06%

      

Kohls Corp., Call @ $60, Expiring January 2016

      55         275   

Kohls Corp., Call @ $65, Expiring April 2016

      55         825   

PayPal Holdings, Inc., Call @ $40, Expiring January 2016

      52         1,508   

PayPal Holdings, Inc., Call @ $45, Expiring January 2017

      42         8,778   

Universal Health Services, Inc., Put @ $105, Expiring December 2015

      16         520   

Universal Health Services, Inc., Put @ $105, Expiring January 2016

      22         2,310   

 

See accompanying notes which are an integral part of these financial statements.

 

11

LS Opportunity Fund

Schedule of Investments – continued

November 30, 2015 (Unaudited)

 

Options Purchased – Long – 0.06% – continued    Contracts      Fair Value  

Universal Health Services, Inc., Put @ $105, Expiring April 2016

      16       $ 5,360   
     

 

 

  

TOTAL OPTIONS PURCHASED – LONG
(Cost $45,611)

         19,576   
     

 

 

  

TOTAL INVESTMENTS – LONG – 94.22%
(Cost $30,913,747)

         31,036,058   
     

 

 

  

TOTAL SECURITIES SOLD SHORT – (26.63)%
(Proceeds Received $8,553,755)

         (8,772,986 ) 
     

 

 

  

OTHER ASSETS IN EXCESS OF LIABILITIES – 32.41%

         10,677,761   
     

 

 

  

TOTAL NET ASSETS – 100.00%

       $ 32,940,833   
     

 

 

  

 

(a)

All or a portion of the security is held as collateral for securities sold short. The fair value of this collateral on November 30, 2015 was $26,372,739.

*

Non-income producing security.

ADR

– American Depositary Receipt

The sectors shown on the schedule of investments are based on Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Huntington Asset Services, Inc.

 

See accompanying notes which are an integral part of these financial statements.

 

12

LS Opportunity Fund

Schedule of Securities Sold Short

November 30, 2015 (Unaudited)

 

Common Stocks – Short – Domestic – (18.82)%    Shares     Fair Value  

Consumer Discretionary – (0.64)%

     

Brinker International, Inc.

      (4,600 )    $ (209,852 ) 
    

 

 

  

Consumer Staples – (2.09)%

     

Kellogg Co.

      (10,000 )      (687,700 ) 
    

 

 

  

Energy – (0.94)%

     

Chevron Corp.

      (3,400 )      (310,488 ) 
    

 

 

  

Financials – (14.65)%

     

Ameriprise Financial, Inc.

      (3,500 )      (395,325 ) 

AmTrust Financial Services, Inc.

      (7,800 )      (487,578 ) 

Arthur J Gallagher & Co.

      (8,200 )      (358,750 ) 

Bank of New York Mellon Corp./The

      (7,500 )      (328,800 ) 

Cincinnati Financial Corp.

      (6,800 )      (415,548 ) 

Eaton Vance Corp.

      (8,900 )      (319,688 ) 

Horace Mann Educators Corp.

      (7,400 )      (258,482 ) 

Markel Corp.*

      (810 )      (733,188 ) 

Prudential Financial, Inc.

      (3,900 )      (337,545 ) 

Travelers Cos., Inc./The

      (4,800 )      (549,936 ) 

Trustmark Corp.

      (11,800 )      (297,950 ) 

Unum Group

      (9,400 )      (344,792 ) 
    

 

 

  
       (4,827,582 ) 
    

 

 

  

Information Technology – (0.50)%

     

Apple, Inc.

      (1,400 )      (165,620 ) 
    

 

 

  

TOTAL COMMON STOCKS – SHORT – DOMESTIC
(Proceeds Received $6,059,263)

        (6,201,242 ) 
    

 

 

  

Common Stocks – Short – International – (7.81)%

     

Financials – (7.81)%

     

ACE Ltd.

      (2,800 )      (321,580 ) 

Commonwealth Bank of Australia

      (9,200 )      (529,506 ) 

Everest Re Group Ltd.

      (1,800 )      (331,992 ) 

HSBC Holdings PLC ADR

      (6,900 )      (275,310 ) 

SCOR SE

      (10,500 )      (411,643 ) 

Third Point Reinsurance Ltd.*

      (12,600 )      (179,046 ) 

UBS Group AG

      (19,900 )      (381,284 ) 

 

See accompanying notes which are an integral part of these financial statements.

 

13

LS Opportunity Fund

Schedule of Securities Sold Short – continued

November 30, 2015 (Unaudited)

 

Common Stocks –Short –International –(7.81)% – continued    Shares     Fair Value  

Financials – (7.81)% – continued

     

Westpac Banking Corp.

      (6,069 )    $ (141,383 ) 
    

 

 

  

TOTAL COMMON STOCKS – SHORT – INTERNATIONAL
(Proceeds Received $2,494,490)

        (2,571,744 ) 
    

 

 

  

TOTAL SECURITIES SOLD SHORT – (26.63)%
(Proceeds Received $8,553,755)

      $ (8,772,986 ) 
    

 

 

  

 

*

Non-dividend expense producing security.

ADR

– American Depositary Receipt

The sectors shown on the schedule of securities sold short are based on Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Huntington Asset Services, Inc.

 

See accompanying notes which are an integral part of these financial statements.

 

14

LS Opportunity Fund

Statement of Assets and Liabilities

November 30, 2015

(Unaudited)

 

Assets

   

Investments in securities at fair value (cost $30,913,747)

    $ 31,036,058   

Cash(a)

      10,812,651   

Foreign currencies, at fair value (Cost $2,047)

      1,979   

Receivable for fund shares sold

      50   

Dividends receivable

      50,898   

Prepaid expenses

      66,200   
  

 

 

  

Total Assets

      41,967,836   
  

 

 

  

Liabilities

   

Investment securities sold short, at fair value (proceeds $8,553,755)

      8,772,986   

Payable for fund shares redeemed

      174,594   

Dividend expense payable on short positions

      25,847   

Payable to Adviser

      12,965   

Payable to administrator, fund accountant and transfer agent

      12,107   

Other accrued expenses

      28,504   
  

 

 

  

Total Liabilities

      9,027,003   
  

 

 

  

Net Assets

    $ 32,940,833   
  

 

 

  

Net Assets consist of:

   

Paid-in capital

    $ 33,284,351   

Accumulated undistributed net investment loss

      (264,427 ) 

Accumulated undistributed net realized gain

      18,050   

Net unrealized depreciation on:

   

Investment securities and securities sold short

      (96,920 ) 

Foreign currency

      (221 ) 
  

 

 

  

Net Assets

    $ 32,940,833   
  

 

 

  

Shares outstanding (unlimited number of shares authorized, no par value)

      2,765,142   
  

 

 

  

Net asset value (“NAV”) and offering price per share

    $ 11.91   
  

 

 

  

Redemption price per share (NAV * 98%)(b)

    $ 11.67   
  

 

 

  

 

(a)

See Note 2 in the Notes to Financial Statements regarding restricted cash.

(b)

The Fund charges a 2.00% redemption fee on shares redeemed in 60 days or less of purchase. Share are redeemed at the NAV if held longer than 60 calendar days.

See accompanying notes which are an integral part of these financial statements.

 

15

LS Opportunity Fund

Statement of Operations

For the six months ended November 30, 2015

(Unaudited)

 

Investment Income

   

Dividend income

    $ 487,264   
  

 

 

  

Total investment income

      487,264   
  

 

 

  

Expenses

   

Investment Adviser

      444,938   

Administration

      23,839   

Fund accounting

      19,222   

Transfer agent

      30,458   

Legal

      58,724   

Audit

      8,250   

Trustee

      6,857   

Compliance services

      1,501   

Miscellaneous

      79,077   

Other – short sale interest and overdraft expense

      89,673   

Dividend expense on securities sold short

      161,316   
  

 

 

  

Total expenses

      923,855   
  

 

 

  

Fees waived by Adviser

      (181,866 ) 
  

 

 

  

Net operating expenses

      741,989   
  

 

 

  

Net investment loss

      (254,725 ) 
  

 

 

  

Net Realized and Unrealized Gain

   

Net realized gain (loss) on:

   

Investment securities

      182,776   

Securities sold short

      (145,925 ) 

Foreign currency

      4,938   

Change in unrealized depreciation on:

   

Investment securities

      524,459   

Securities sold short

      (273,913 ) 

Foreign currency

      459   
  

 

 

  

Net realized and unrealized gain on investments, short securities, options, foreign currency and foreign currency contracts

      292,794   
  

 

 

  

Net increase in net assets resulting from operations

    $ 38,069   
  

 

 

  

See accompanying notes which are an integral part of these financial statements.

 

16

LS Opportunity Fund

Statements of Changes in Net Assets

 

     For the Six  Months
Ended
November 30, 2015		     For the Year
Ended
May 31, 2015		  
     (Unaudited)        

Increase (Decrease) in Net Assets due to:

     

Operations

     

Net investment loss

    $ (254,725 )    $ (2,963,413 ) 

Net realized gain on investment securities, short securities, options and foreign currency

      41,789        13,997,559   

Net change in unrealized appreciation (depreciation) of investment securities, short securities and foreign currency

      251,005        (9,488,654 ) 
  

 

 

    

 

 

  

Net increase in net assets resulting from operations

      38,069        1,545,492   
  

 

 

    

 

 

  

Distributions From:

     

Net realized gains

      (3,998,817 )      (3,344,132 ) 
  

 

 

    

 

 

  

Total distributions

      (3,998,817 )      (3,344,132 ) 
  

 

 

    

 

 

  

Capital Transactions

     

Proceeds from shares sold

      927,659        100,954,218   

Reinvestment of distributions

      3,928,499        3,259,260   

Amount paid for shares redeemed

      (64,231,219 )      (156,003,469 ) 

Proceeds from redemption fees (a)

      7,924        —   
  

 

 

    

 

 

  

Net decrease in net assets resulting from capital transactions

      (59,367,137 )      (51,789,991 ) 
  

 

 

    

 

 

  

Total Decrease in Net Assets

      (63,327,885 )      (53,588,631 ) 
  

 

 

    

 

 

  

Net Assets

     

Beginning of period

      96,268,718        149,857,349   
  

 

 

    

 

 

  

End of period

    $ 32,940,833      $ 96,268,718   
  

 

 

    

 

 

  

Accumulated undistributed net investment loss

    $ (264,427 )    $ (9,702 ) 
  

 

 

    

 

 

  

Share Transactions

     

Shares sold

      76,197        7,821,644   

Shares issued in reinvestment of distributions

      331,239        253,639   

Shares redeemed

      (5,312,330 )      (12,187,993 ) 
  

 

 

    

 

 

  

Net decrease in share transactions

      (4,904,894 )      (4,112,710 ) 
  

 

 

    

 

 

  

 

 

(a)

The Fund charges a 2% redemption fee on shares redeemed in 60 days or less of purchase. Share are redeemed at the NAV if held longer than 60 calendar days.

See accompanying notes which are an integral part of these financial statements.

 

17

LS Opportunity Fund

Financial Highlights

(For a share outstanding during each period)

 

    For the
Six  Months
Ended
November 30,
2015		     For the
Fiscal  Year
Ended
May 31,
2015		     For the
Fiscal  Year
Ended
May 31,
2014		     For the
Fiscal  Year
Ended
May 31,
2013		     For the
Fiscal  Year
Ended
May 31,
2012		     For the
Period
Ended
May  31,
2011(a)		  
    (Unaudited)                                

Selected Per Share Data:

            

Net asset value, beginning of period

   $ 12.55      $ 12.72      $ 12.04      $ 10.29      $ 11.45      $ 10.00   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

            

Net investment income (loss)

     (0.09 )      (0.42 )      (0.26 )(b)      (0.24 )(b)      (0.23 )(b)      (0.17 )(b) 

Net realized and unrealized gain (loss) on investments

     0.20        0.49        1.44        1.99        (0.91 )      1.62   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

     0.11        0.07        1.18        1.75        (1.14 )      1.45   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions to Shareholders:

            

From net realized gains

     (0.75 )      (0.24 )      (0.50 )      —        (0.02 )      —   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Redemption fees

     — (c)      —        — (c)      — (c)      — (c)      — (c) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 11.91      $ 12.55      $ 12.72      $ 12.04      $ 10.29      $ 11.45   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(d)(e)

     0.89 %(f)      0.50 %      9.72 %      17.01 %      (9.92 )%      14.50 %(f) 

Ratios and Supplemental Data:

            

Net assets, end of period (000)

   $ 32,941      $ 96,269      $ 149,857      $ 37,750      $ 48,864      $ 20,375   

Ratio of expenses to average net assets (g)

     2.95 %(h)      2.51 %      2.49 %      3.12 %(i)      3.16 %      2.99 %(h) 

Ratio of expenses to average net assets before waiver and reimbursement/recoupment by Adviser(g)

     3.67 %(h)      2.60 %      2.71 %      3.12 %      3.06 %      4.25 %(h) 

Ratio of net investment loss to average net assets

     (1.01 )%(h)      (1.72 )%      (2.04 )%      (2.22 )%      (2.19 )%      (2.25 )%(h) 

Portfolio turnover rate

     45.57 %(f)      551.53 %      312.34 %      310.57 %      444.62 %      199.48 %(f) 

 

 

(a)

For the period September 30, 2010 (Commencement of Operations) through May 31, 2011.

(b)

Per share net investment loss has been calculated using the average shares method.

(c)

Amount represents less than $0.005 per share.

(d)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.

(e)

Excludes redemption fee.

(f)

Not Annualized

(g)

Includes dividend, interest and overdraft expense of 1.00% for the six months ended November 30, 2015, and 0.56%, 0.54%, 0.77%, 0.66% and 0.49% for periods ended May 31, 2015, 2014, 2013, 2012 and 2011, respectively.

(h)

Annualized

(i)

Effective February 4, 2013, the Adviser agreed to waive fees to maintain Fund expenses at 1.95%. Prior to that date, the expense cap was 2.50%. (See Note 4. Fees and Other Transactions with Affiliates and Other Service Providers)

See accompanying notes which are an integral part of these financial statements.

 

18

LS Opportunity Fund

Notes to the Financial Statements

November 30, 2015

(Unaudited)

NOTE 1. ORGANIZATION

The LS Opportunity Fund (the “Fund”) is an open-end, diversified series of the Valued Advisers Trust (the “Trust”). The Trust is a management investment company established under the laws of Delaware by an Agreement and Declaration of Trust dated June 13, 2008 (the “Trust Agreement”). The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds authorized by the Board of Trustees (the “Board”). The Fund’s investment adviser is Long Short Advisors, LLC (the “Adviser”). The Adviser has retained Prospector Partners, LLC (the “Sub-Adviser”) to serve as the sub-adviser to provide portfolio management and related services to the Fund. The Sub-Adviser receives a fee from the Adviser (not the Fund) for these services. The investment objective of the Fund is to generate long term capital appreciation by investing in both long and short positions within a portfolio consisting of primarily publicly-traded common stock, with less risk than that of the stock market in general.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with the generally accepted accounting principles in the United States of America (“GAAP”).

Securities Valuation – All investments in securities are recorded at their estimated fair value as described in Note 3.

Federal Income Taxes – The Fund makes no provision for federal income or excise tax. The Fund intends to qualify each year as a “regulated investment company” (“RIC”) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. The Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Fund could incur a tax expense.

As of and during the six months ended November 30, 2015, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the

 

19

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES – continued

 

Statement of Operations. During the six months ended November 30, 2015, the Fund did not incur any interest or penalties. The Fund is subject to examination by U.S. federal tax authorities for the last three tax years and the interim tax period since then.

Expenses – Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds based on each fund’s relative net assets or other appropriate basis.

Security Transactions and Related Income – The Fund follows industry practice and records security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income and dividend expense are recorded on the ex-dividend date and interest income is recorded on an accrual basis. Dividend income from Real Estate Investment Trusts (REITS) and distributions form Limited Partnerships are recognized on the ex-date. The calendar year end classification of distributions received from REITS during the fiscal year are reported subsequent to year end; accordingly, the Fund estimates the character of REIT distributions based on the most recent information available. Income or loss from Limited Partnerships is reclassified among the components of net assets upon receipt of Schedules K-1(Form 1065). Discounts and premiums on securities purchased are amortized or accreted using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

Redemption Fees – The Fund charges a 2.00% redemption fee for shares redeemed within 60 days. These fees are deducted from the redemption proceeds otherwise payable to the shareholder. The Fund will retain the fee charged as an increase in paid-in capital and such fees become part of the Fund’s daily NAV calculation.

Foreign Currency Translations – Foreign currency amounts are translated into U.S. dollars as follows: (i) assets and liabilities at the rate of exchange at the end of the respective period; and (ii) purchases and sales of securities and income and expenses at the rate of exchange prevailing on the dates of such transactions. The portion of the results of operations arising from changes in the exchange rates and the portion due to fluctuations arising from changes in the market prices of securities are not isolated. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

 

 

20

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES – continued

 

The Fund may enter into transactions to purchase or sell foreign currencies to protect the U.S. dollar value of its underlying portfolio securities against the effect of possible adverse movements in foreign exchange rates. Principal risks associated with such transactions include the movement in value of the foreign currency relative to the U.S. dollar and the ability of the counterparty to perform. Fluctuations in the value of such forward currency transactions are recorded daily as unrealized gain or loss; realized gain or loss includes net gain or loss on transactions that have terminated by settlement or by a fund entering into offsetting commitments. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the company’s books and the U.S. dollar equivalent of the amounts actually received or paid. These instruments involve market risk, credit risk, or both kinds of risks, in excess of the amount that would be recognized in the Statement of Assets and Liabilities. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movement in currency and securities values and interest rates.

Dividends and Distributions – The Fund intends to distribute substantially all of its net investment income, net realized long-term capital gains and its net realized short-term capital gains, if any, to its shareholders on at least an annual basis. Dividends to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset value per share of the Fund.

Short Sales – The Fund may make short sales as part of its overall portfolio management strategies or to offset a potential decline in value of a security. The Fund may engage in short sales with respect to various types of securities, including Exchange-Traded Funds (ETFs). A short sale involves the sale of a security that is borrowed from a broker or other institution to complete the sale. The Fund may engage in short sales with respect to securities it owns, as well as securities that it

 

21

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES – continued

 

does not own. Short sales expose the Fund to the risk that it will be required to acquire, convert or exchange securities to replace the borrowed securities (also known as “covering” the short position) at a time when the securities sold short have appreciated in value, thus resulting in a loss to the Fund. The amount of loss may exceed the proceeds received in a short sale. The Fund’s investment performance may also suffer if the Fund is required to close out a short position earlier than it had intended. The Fund must segregate assets determined to be liquid in accordance with procedures established by the Board, or otherwise cover its position in a permissible manner. The Fund will be required to pledge its liquid assets to the broker in order to secure its performance on short sales. As a result, the assets pledged may not be available to meet the Fund’s needs for immediate cash or other liquidity. In addition, the Fund may be subject to expenses related to short sales that are not typically associated with investing in securities directly, such as costs of borrowing and margin account maintenance costs associated with the Fund’s open short positions. These types of short sales expenses are sometimes referred to as the “negative cost of carry,” and will tend to cause the Fund to lose money on a short sale even in instances where the price of the underlying security sold short does not change over the duration of the short sale. Dividend expenses on securities sold short and borrowing costs are not covered under the Adviser’s expense limitation agreement with the Fund and, therefore, these expenses will be borne by the shareholders of the Fund. The amount of restricted cash held at the broker as collateral for securities sold short was $8,997,469 as of November 30, 2015.

Purchasing Call Options – The Fund may purchase call options. As the holder of a call option, the Fund has the right to purchase the underlying security at the exercise price at any time during the option period. The Fund may enter into closing sale transactions with respect to such options, exercise them or permit them to expire. The Fund may also purchase call options on relevant stock indexes. Call options may also be purchased by the Fund for the purpose of acquiring the underlying securities for its portfolio. Utilized in this fashion, the purchase of call options enables the Fund to acquire the securities at the exercise price of the call option plus the premium paid. At times the net cost of acquiring securities in this manner may be less than the cost of acquiring the securities directly. This technique may also be useful to the Fund in purchasing a large block of securities that would be more difficult to acquire by direct market purchases. So long as it holds such a call option rather than the underlying security itself, the Fund is partially protected from any unexpected decline in the market price of the underlying security and in such event could allow the call option to expire, incurring a loss only to the extent of the premium paid for the option.

 

 

22

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES – continued

 

Purchasing Put Options – The Fund may purchase put options. As the holder of a put option, the Fund has the right to sell the underlying security at the exercise price at any time during the option period. The Fund may enter into closing sale transactions with respect to such options, exercise them or permit them to expire. The Fund may purchase a put option on an owned underlying security (a “protective put”) as a defensive technique to protect against an anticipated decline in the value of the security. Such hedge protection is provided only during the life of the put option when the Fund, as the holder of the put option, is able to sell the underlying security at the put exercise price regardless of any decline in the underlying security’s market price. The Fund may also purchase put options at a time when it does not own the underlying security. By purchasing put options on a security it does not own, the Fund seeks to benefit from a decline in the market price of the underlying security. If the put option is not sold when it has remaining value, and if the market price of the underlying security remains equal to or greater than the exercise price during the life of the put option, the Fund will lose its entire investment in the put option. In order for the purchase of a put option to be profitable, the market price of the underlying security must decline sufficiently below the exercise price to cover the premium and transaction costs.

Writing Options – The Fund may write covered call options on equity securities or futures contracts that the Fund is eligible to purchase to extend a holding period to obtain long-term capital gain treatment, to earn premium income, to assure a definite price for a security it has considered selling, or to close out options previously purchased. The Fund may write covered call options if, immediately thereafter, not more than 30% of its net assets would be committed to such transactions. A call option gives the holder (buyer) the right to purchase a security or futures contract at a specified price (the exercise price) at any time until a certain date (the expiration date). A call option is “covered” if the Fund owns the underlying security subject to the call option at all times during the option period. When the Fund writes a covered call option, it maintains a segregated account with its Custodian, cash or liquid portfolio securities in an amount not less than the exercise price at all times while the option is outstanding.

Forward Currency Exchange Contracts – The Fund may engage in foreign currency exchange transactions. The value of the Fund’s portfolio securities that are invested in non-U.S. dollar denominated instruments as measured in U.S. dollars may be affected favorably or unfavorably by changes in foreign currency exchange rates, and the Fund may incur costs in connection with conversions between various currencies. The Fund will conduct its foreign currency exchange transactions either

 

23

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES – continued

 

on a spot (i.e., cash) basis at the spot rate prevailing in the foreign currency exchange market, or through forward contracts to purchase or sell foreign currencies. A forward foreign currency exchange contract involves an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are traded directly between currency traders (usually large commercial banks) and their customers. The Fund will not, however, hold foreign currency except in connection with the purchase and sale of foreign portfolio securities.

Derivative Transactions – The following table identifies the effect of derivative instruments on the Statement of Operations for the six months ended November 30, 2015.

 

Derivatives   Location of Gain (Loss)  on
Derivatives on Statements
of Operations		   Contracts
Opened		     Contracts
Closed		     Realized
Gain
(Loss) on
Derivatives		     Change in
Unrealized
Appreciation
(Depreciation)  on
Derivatives		  

Equity Risk:

                

Call Options Purchased

   Net realized and unrealized gain (loss) on investment securities     302        98      $ (2,394 )    $ (10,022 ) 

Equity Risk:

                

Put Options Purchased

   Net realized and unrealized gain (loss) on investment securities     54        —        —        (16,013 ) 

The Fund is not subject to a master netting arrangement and its policy is to not offset assets and liabilities related to its investment in derivatives.

NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS

Fair value is defined as the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.

Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a

 

24

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS – continued

 

particular valuation technique used to measure fair value such as pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

 

  •  

Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date

 

  •  

Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

  •  

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments based on the best information available)

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Equity securities, including common stocks, exchange traded funds, real estate investment trusts, and american depositary receipts are generally valued by using market quotations, furnished by a pricing service. Securities that are traded on any stock exchange are generally valued at the last quoted sale price. Lacking a last sale price, an exchange traded security is generally valued at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued at the NASDAQ Official Closing Price.

 

 

25

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS – continued

 

When using the market quotations or close prices provided by the pricing service and when the market is considered active, the security is classified as a Level 1 security. Sometimes, an equity security owned by the Fund will be valued by the pricing service with factors other than market quotations or when the market is considered inactive. When this happens, the security is classified as a Level 2 security. When market quotations are not readily available, when the Adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect the current fair value, or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the Adviser, in conformity with guidelines adopted by and subject to review by the Board. These securities will generally be categorized as Level 3 securities.

Investments in mutual funds, including money market mutual funds, are generally priced at the ending net asset value (“NAV”) provided by the service agent of the funds. These securities are categorized as Level 1 securities.

Call and put options that the Fund invests in are generally traded on an exchange and are generally valued at the last trade price as provided by a pricing service. If the last sale price is not available, the options will be valued using the last bid price. The options will generally be categorized as Level 1 securities.

Derivative instruments the Fund invests in, such as forward currency exchange contracts, are valued by a pricing service at the interpolated rates based on the prevailing banking rates and are generally categorized as Level 2 securities.

In accordance with the Trust’s good faith pricing guidelines, the Adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in the Adviser’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the

 

26

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS – continued

 

security based on a small number of quotations, a significant event occurs after the close of a market but before a Fund’s NAV calculation that may affect a security’s value, or the Adviser is aware of any other data that calls into question the reliability of market quotations. Good faith pricing may also be used in instances when the bonds the Fund invests in may default or otherwise cease to have market quotations readily available.

The following is a summary of the inputs used to value the Fund’s investments as of November 30, 2015:

 

     Valuation Inputs  
Assets   Level 1     Level 2     Level 3     Total  

Common Stocks*

   $ 31,016,482      $ —      $ —      $ 31,016,482   

Options Purchased

     19,576        —        —        19,576   

Total

   $ 31,036,058      $ —      $ —      $ 31,036,058   

 

*

Refer to Schedule of Investments for industry classifications.

 

     Valuation Inputs  
Liabilities   Level 1     Level 2     Level 3     Total  

Common Stocks*

   $ (8,772,986 )    $ —      $ —      $ (8,772,986 ) 

Total

   $ (8,772,986 )    $ —      $ —      $ (8,772,986 ) 

 

*

Refer to Schedule of Securities Sold Short for industry classifications.

The Fund did not hold any investments at any time during the reporting period in which significant unobservable inputs were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period. The Trust recognizes transfers between fair value hierarchy levels at the reporting period end. There were no transfers between any Levels for the period ended November 30, 2015.

NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS

The Adviser, under the terms of the management agreement (the “Agreement”), manages the Fund’s investments. As compensation for its management services, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.75% of the Fund’s average net assets. For the six

 

27

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS – continued

 

months ended November 30, 2015, the Adviser earned a fee of $444,938 from the Fund before the reimbursement described below.

The Adviser has contractually agreed to waive its management fee and/or reimburse certain Fund operating expenses, but only to the extent necessary so that the Fund’s net expenses (excluding interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Fund’s business, dividend expense on short sales, expenses incurred under a Rule 12b-1 plan of distribution, “acquired fund fees and expenses” (i.e., investment companies in which the Fund may invest), and expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement) do not exceed 1.95% of net assets. The contractual agreement is effective through September 30, 2016. For the six months ended November 30, 2015, the Adviser waived fees of $181,866. At November 30, 2015, the Adviser was owed $12,965 from the Fund for advisory services. The waiver and/or reimbursement by the Adviser with respect to the Fund is subject to repayment by the Fund within the three fiscal years following the fiscal year in which that particular waiver and/or reimbursement occurred, provided that the Fund is able to make the repayment without exceeding the expense limitations described above.

The amount subject to repayment by the Fund pursuant to the aforementioned conditions at November 30, 2015 was:

 

Amount

    Recoverable through
May 31,		  

$159,710

      2017   

  148,331

      2018   

  181,866

      2019   

The Adviser has retained the Sub-Adviser to provide portfolio management and related services to the Fund. The Sub-Adviser receives a fee from the Adviser (not the Fund) for these services. The Trust retains Ultimus Asset Services, LLC (formerly Huntington Asset Services, Inc. – see Subsequent Events) (“Ultimus”), to manage the Fund’s business affairs and to provide the Fund with administrative services, including all regulatory reporting and necessary office equipment and personnel. For the six months ended November 30, 2015, Ultimus earned fees of $23,839 for administrative services provided to the Fund. At November 30, 2015, the Fund owed Ultimus $1,988 for administrative services. Certain officers of the Trust are members

 

28

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS – continued

 

of management and/or employees of Ultimus. A trustee of the Trust is a member of management of Ultimus. Ultimus operates as a wholly-owned subsidiary of Ultimus Fund Solutions, LLC, the parent company of Unified Financial Securities, LLC (the “Distributor”).

The Trust retains Ultimus to act as the Fund’s transfer agent and to provide fund accounting services. For the six months ended November 30, 2015, Ultimus earned fees of $30,458 from the Fund for transfer agent services. For the six months ended November 30, 2015, Ultimus earned fees of $19,222 from the Fund for fund accounting services. At November 30, 2015, the Fund owed Ultimus $7,918 for transfer agent services and $2,201 for fund accounting services.

The Distributor acts as the principal underwriter of the Fund’s shares. There were no payments made to the Distributor by the Fund for the six months ended November 30, 2015. A trustee and an officer of the Trust is an officer of the Distributor and such person may be deemed to be an affiliate of the Distributor.

NOTE 5. INVESTMENT TRANSACTIONS

For the six months ended November 30, 2015, purchases and sales of investment securities and securities sold short, other than short-term investments, were as follows:

 

Purchases

   

U.S. Government Obligations

    $ —   

Other

      27,988,096   

Sales

   

U.S. Government Obligations

    $ —   

Other

      61,864,138   

NOTE 6. ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

 

29

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 7. BENEFICIAL OWNERSHIP

 

The beneficial ownership, either directly or indirectly, of 25% or more of the voting securities of a fund creates a presumption of control of a fund, under Section 2(a)(9) of the Investment Company Act of 1940. At November 30, 2015, National Financial Services, Inc. (“NFS”) owned, as record shareholder, 72% of the outstanding shares of the Fund. It is not known whether NFS or any of the underlying beneficial owners owned or controlled 25% or more of the voting securities of the Fund.

NOTE 8. FEDERAL TAX INFORMATION

At November 30, 2015, the appreciation (depreciation) of investments, net of proceeds for investment securities sold short, for tax purposes was as follows:

 

     Amount  

Gross Unrealized Appreciation

    $ 1,824,831   

Gross Unrealized (Depreciation)

      (1,945,483 ) 
  

 

 

  

Net Unrealized Depreciation

    $ (120,652 ) 
  

 

 

  

At November 30, 2015, the aggregate cost of securities, net of proceeds for investment securities sold short, for federal income tax purposes, was $22,383,724.

The tax characterization of distributions for the fiscal year ended May 31, 2015 was as follows:

 

     2015  

Distributions paid from:

   

Long-term Capital Gain

    $ 3,344,132   
  

 

 

  

At May 31, 2015, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

 

Undistributed Ordinary Income

    $ 2,549,871   

Undistributed long-term capital gains

      1,448,940   

Accumulated capital and other losses

      (9,702 ) 

Unrealized appreciation/(depreciation)

      (371,879 ) 
  

 

 

  
   $ 3,617,230   
  

 

 

  

The difference between book basis and tax basis unrealized appreciation is primarily attributable to the tax deferral of wash losses.

 

 

30

LS Opportunity Fund

Notes to the Financial Statements – continued

November 30, 2015

(Unaudited)

 

NOTE 9. COMMITMENTS AND CONTINGENCIES

 

The Fund indemnifies its officers and trustees for certain liabilities that may arise from their performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.

NOTE 10. SUBSEQUENT EVENT

Management of the Fund has evaluated the need for disclosure and/or adjustments resulting from subsequent events through the date these financials were issued. On November 13, 2015, Huntington Bancshares, Inc. entered into an agreement to sell Huntington Asset Services, Inc. and Unified Financial Services, Inc. to Ultimus Fund Solutions, LLC. The sale closed on December 31, 2015. Management has determined that there were no additional items requiring additional disclosure.

NOTE 11. PROXY VOTING RESULTS

On September 17, 2015, a special meeting of the shareholders of the Fund was held at the offices of the Trust for the purpose of approving a new sub-advisory agreement between Long Short Advisors, LLC and Prospector Partners, LLC and to approve the implementation of a “multi-manager” arrangement whereby Long Short Advisors, LLC, under certain circumstances would be able to hire and replace sub-advisers for the Fund without obtaining shareholder approval.

Below are the voting results for the Fund from the special meeting:

 

     For      Against      Abstain  
To approve a new sub-advisory agreement between Long Short Advisors, LLC and Prospector Partners, LLC on behalf of the Fund:      3,603,575                1,677         3,013   

 

     For      Against      Abstain  
To approve the implementation of a “multi-manager” arrangement whereby Long Short Advisors, LLC, under certain circumstances would be able to hire and replace sub-advisers for the Fund without obtaining shareholder approval:         259,539         3,344,678         4,046   

 

31

VALUED ADVISERS TRUST

PRIVACY POLICY

The following is a description of the policies of the Valued Advisers Trust (the “Trust”) regarding disclosure of nonpublic personal information that shareholders provide to a series of the Trust (each, a “Fund”) or that the Fund collects from other sources. In the event that a shareholder hold shares of a Fund through a broker-dealer or other financial intermediary, the privacy policy of the financial intermediary would govern how shareholder nonpublic personal information would be shared with nonaffiliated third parties.

Categories of Information a Fund May Collect. A Fund may collect the following nonpublic personal information about its shareholders:

 

  •  

Information the Fund receives from a shareholder on applications or other forms, correspondence, or conversations (such as the shareholder’s name, address, phone number, social security number, and date of birth); and

 

  •  

Information about the shareholder’s transactions with the Fund, its affiliates, or others (such as the shareholder’s account number and balance, payment history, cost basis information, and other financial information).

Categories of Information a Fund May Disclose. A Fund may not disclose any nonpublic personal information about its current or former shareholders to unaffiliated third parties, except as required or permitted by law. A Fund is permitted by law to disclose all of the information it collects, as described above, to its service providers (such as the Fund’s custodian, administrator, transfer agent, accountant and legal counsel) to process shareholder transactions and otherwise provide services to the shareholder.

Confidentiality and Security. Each Fund shall restrict access to shareholder nonpublic personal information to those persons who require such information to provide products or services to the shareholder. Each Fund shall maintain physical, electronic, and procedural safeguards that comply with federal standards to guard shareholder nonpublic personal information.

Disposal of Information. The Funds, through their transfer agent, have taken steps to reasonably ensure that the privacy of a shareholder’s nonpublic personal information is maintained at all times, including in connection with the disposal of information that is no longer required to be maintained by the Funds. Such steps shall include, whenever possible, shredding paper documents and records prior to disposal, requiring off-site storage vendors to shred documents maintained in such locations prior to disposal, and erasing and/or obliterating any data contained on electronic media in such a manner that the information can no longer be read or reconstructed.

 

 

32

PROXY VOTING

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the most recent twelve month period ended June 30, is available without charge upon request by (1) calling the Fund at (877) 336-6763 and (2) from Fund documents filed with the Securities and Exchange Commission (“SEC”) on the SEC’s website at www.sec.gov.

TRUSTEES

R. Jeffrey Young, Chairman

Ira Cohen

Andrea Mullins

OFFICERS

R. Jeffrey Young, Principal Executive Officer and President

Bryan W. Ashmus, Principal Financial Officer and Treasurer

John C. Swhear, Chief Compliance Officer, AML Officer and Vice President

Carol J. Highsmith, Vice President and Secretary

Matthew J. Miller, Vice President

INVESTMENT ADVISOR

Long Short Advisors, LLC

1818 Market Street, 33rd Floor, Suite 3323

Philadelphia, PA 19103

DISTRIBUTOR

Unified Financial Securities, LLC

2960 North Meridian Street, Suite 300

Indianapolis, IN 46208

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Cohen Fund Audit Services, Ltd.

1350 Euclid Avenue, Suite 800

Cleveland, OH 44115

LEGAL COUNSEL

The Law Offices of John H. Lively & Associates, Inc.,

A member firm of The 1940 Act Law GroupTM

11300 Tomahawk Creek Parkway, Suite 310

Leawood, KS 66211

CUSTODIAN

Citibank, N.A.

388 Greenwich Street

New York, NY 10013

ADMINISTRATOR, TRANSFER AGENT AND FUND ACCOUNTANT

Ultimus Asset Services, LLC

2960 North Meridian Street, Suite 300

Indianapolis, IN 46208

This report is intended only for the information of shareholders or those who have received the Fund’s prospectus which contains information about the Fund’s management fee and expenses. Please read the prospectus carefully before investing.

Distributed by Unified Financial Securities, LLC

Member FINRA/SIPC

Item 2. Code of Ethics. NOT APPLICABLE – disclosed with annual report

Item 3. Audit Committee Financial Expert. NOT APPLICABLE – disclosed with annual report

Item 4. Principal Accountant Fees and Services. NOT APPLICABLE – disclosed with annual report

Item 5. Audit Committee of Listed Companies. NOT APPLICABLE – applies to listed companies only

Item 6. Schedule of Investments. Schedules filed with Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. NOT APPLICABLE – applies to closed-end funds only

Item 8. Portfolio Managers of Closed-End Investment Companies. NOT APPLICABLE – applies to closed-end funds only

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. NOT APPLICABLE – applies to closed-end funds only

Item 10. Submission of Matters to a Vote of Security Holders.

The guidelines applicable to shareholders desiring to submit recommendations for nominees to the Registrant’s board of trustees are contained in the statement of additional information of the Trust with respect to the Fund(s) for which this Form N-CSR is being filed.

Item 11. Controls and Procedures.

(a) Based on their evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”)) as of a date within 90 days of the filing date of this report, the registrant’s principal executive officer and principal financial officer have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the registrant is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported on a timely basis.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

 

(a) (1) Not Applicable – filed with annual report

 

      (2) Certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2 under the Investment Company Act of 1940 are filed herewith.

 

      (3) Not Applicable

 

(b) Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed herewith.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)           Valued Advisers Trust    
By   /s/ R. Jeffrey Young
  R. Jeffrey Young, President and
Principal Executive Officer
Date   1/28/2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By   /s/ R. Jeffrey Young
  R. Jeffrey Young, President and
Principal Executive Officer
Date   1/28/2016
By   /s/ Bryan W. Ashmus
  Bryan W. Ashmus, Treasurer and
Principal Financial Officer
Date   1/28/2016