EVERMORE FUNDS
Annual Report December 31, 2010
|
|||||
Evermore
Global
Value
Fund
|
Evermore
European
Value
Fund
|
•
|
Catalyst-Driven Investing. We do more than pick cheap stocks and hope for their prices to rise. We invest in companies where a series of catalysts exist to unlock value. The catalysts we look for reflect strategic changes in the company’s management, operations or financial structure that are already underway. They are not broadly recognized, but we feel they are likely to have a significant impact on a stock’s performance over time.
|
•
|
Original Fact-Based Research. We do not rely on brokerage reports to research companies. We conduct our own, original fact-based research to validate management’s stated objectives and the existence of catalysts to unlock value. We also perform detailed business segment analysis on each company we research.
|
•
|
Business Operating Experience. Our senior team has hands-on business operating experience; including starting and managing businesses, sitting on company boards, and assisting the management of multi-national corporations restructure their businesses. We rely on this experience to better evaluate investment opportunities.
|
•
|
A Global Network of Strategic Relationships. Over the past 20 years, our investment team has developed an extensive global network of strategic relationships, including individuals and families that control businesses, corporate board members, corporate management, regional brokerage firms, press contacts, etc. We leverage these relationships to help generate and better evaluate investment opportunities.
|
•
|
Taking a Private Equity Approach to Public Equity Investing. When we are interested in an investment opportunity, we get to know the management team of the company, study the company’s business model, evaluate the competitive and regulatory environment, and test and crosscheck everything the management team tells us against our own experience.
|
•
|
Always Active, Sometimes Activist. We are always engaged with the companies in which we invest to ensure management teams follow through on their
|
|
commitments to change. On limited occasions, when we are not satisfied with the efforts of management, we may play an activist role working with other shareholders to facilitate change.
|
•
|
Targeting Complex Investment Opportunities. We love looking at holding companies and conglomerates that are often under-researched and/or misunderstood.
|
•
|
Investing Across the Capital Structure. We evaluate all parts of a company’s capital structure to determine where the best risk-adjusted return potential exists. At times, we may invest in multiple parts of a company’s capital structure (e.g., investing in both a company’s debt and equity).
|
•
|
Investing in Merger Arbitrage and Distressed Situations. We look to take advantage of announced merger and acquisition deals where an attractive spread exists between the market price and the announced deal price for the target company. We also look for opportunities in distressed companies that have filed or may file for bankruptcy, or are involved in reorganizations or financial restructurings.
|
•
|
Exploiting Short Selling Opportunities. We seek to take advantage of short selling opportunities to address currency, security, sector and market risk.
|
•
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Tactically Managing Cash Levels. We are not afraid to hold significant cash positions when it makes sense for the portfolios.
|
![]() |
![]() |
David Marcus
|
Jae Chung
|
Lead Portfolio Manager
|
Co-Portfolio Manager
|
![]() |
![]() |
David Marcus
|
Jae Chung
|
Lead Portfolio Manager
|
Co-Portfolio Manager
|
SECTOR ALLOCATION as a Percentage of Net Assets at December 31, 2010 (Unaudited)
|
EXPENSE EXAMPLE for the Six Months Ended December 31, 2010 (Unaudited)
|
EXPENSE EXAMPLE for the Six Months Ended December 31, 2010 (Unaudited), Continued
|
Beginning
|
Ending
|
Expenses Paid
|
|
Account Value
|
Account Value
|
During the Period
|
|
7/01/10
|
12/31/10
|
7/01/10–12/31/10*
|
|
Class A Actual^
|
$1,000
|
$1,160
|
$ 8.82
|
Class A Hypothetical (5% annual
|
|||
return before expenses)+
|
$1,000
|
$1,017
|
$ 8.24
|
Class C Actual^
|
$1,000
|
$1,154
|
$12.87
|
Class C Hypothetical (5% annual
|
|||
return before expenses)+
|
$1,000
|
$1,013
|
$12.03
|
Class I Actual^
|
$1,000
|
$1,162
|
$ 7.47
|
Class I Hypothetical (5% annual
|
|||
return before expenses)+
|
$1,000
|
$1,018
|
$ 6.97
|
^
|
Excluding interest expense, your actual cost of investments in the Fund would be $8.71 for Class A shares, $12.76 for Class C shares and $7.36 for Class I shares.
|
+
|
Excluding interest expense, your hypothetical cost of investment in a fund would be $8.13 for Class A shares, $11.93 for Class C shares and $6.87 for Class I shares.
|
*
|
Expenses are equal to the Fund’s expense ratios for the most recent six-month period, including interest expense of 1.62% for Class A shares, 2.37% for Class C shares and 1.37% for Class I shares multiplied by the average account value over the period multiplied by 184/365 (to reflect the one-half year period). If interest expense was excluded, the annualized ratio would have been 1.60% for Class A shares, 2.35% for Class C shares and 1.35% for Class I shares. Expense ratios reflect expense reimbursements currently in effect.
|
Beginning
|
Ending
|
Expenses Paid
|
|
Account Value
|
Account Value
|
During the Period
|
|
7/01/10
|
12/31/10
|
7/01/10–12/31/10*
|
|
Class A Actual^
|
$1,000
|
$1,083
|
$ 8.56
|
Class A Hypothetical (5% annual
|
|||
return before expenses)+
|
$1,000
|
$1,017
|
$ 8.29
|
Class C Actual^
|
$1,000
|
$1,080
|
$12.48
|
Class C Hypothetical (5% annual
|
|||
return before expenses)+
|
$1,000
|
$1,013
|
$12.08
|
Class I Actual^
|
$1,000
|
$1,085
|
$ 7.26
|
Class I Hypothetical (5% annual
|
|||
return before expenses)+
|
$1,000
|
$1,018
|
$ 7.02
|
^
|
Excluding interest expense, your actual cost of investments in the Fund would be $8.40 for Class A shares, $12.32 for Class C shares and $7.10 for Class I shares.
|
+
|
Excluding interest expense, your hypothetical cost of investment in a fund would be $8.13 for Class A shares, $11.93 for Class C shares and $6.87 for Class I shares.
|
*
|
Expenses are equal to the Fund’s expense ratios for the most recent six-month period, including interest expense of 1.63% for Class A shares, 2.38% for Class C shares and 1.38% for Class I shares multiplied by the average account value over the period multiplied by 184/365 (to reflect the one-half year period). If interest expense was excluded, the annualized ratio would have been 1.60% for Class A shares, 2.35% for Class C shares and 1.35% for Class I shares. Expense ratios reflect expense reimbursements currently in effect.
|
Total Returns
|
Since Inception
|
|||
Year Ended December 31, 2010
|
(1/1/2010)
|
|||
Class A
|
5.00 | % | ||
Class A (with sales charge)
|
(0.28 | )% | ||
MSCI All-Country World Index
|
12.67 | % |
Total Returns
|
Since Inception
|
|||
Year Ended December 31, 2010
|
(1/1/2010)
|
|||
Class C
|
4.00 | % | ||
Class C (with sales charge)
|
3.00 | % | ||
MSCI All-Country World Index
|
12.67 | % |
Total Returns
|
Since Inception
|
|||
Year Ended December 31, 2010
|
(1/1/2010)
|
|||
Class I
|
5.20 | % | ||
MSCI All-Country World Index
|
12.67 | % |
Total Returns
|
Since Inception
|
|||
Year Ended December 31, 2010
|
(1/1/2010)
|
|||
Class A
|
0.20 | % | ||
Class A (with sales charge)
|
(4.84 | )% | ||
MSCI Daily Total Return Net Europe Local Index
|
6.83 | % |
Total Returns
|
Since Inception
|
|||
Year Ended December 31, 2010
|
(1/1/2010)
|
|||
Class C
|
(0.60 | )% | ||
Class C (with sales charge)
|
(1.59 | )% | ||
MSCI Daily Total Return Net Europe Local Index
|
6.83 | % |
Total Returns
|
Since Inception
|
|||
Year Ended December 31, 2010
|
(1/1/2010)
|
|||
Class I
|
0.70 | % | ||
MSCI Daily Total Return Net Europe Local Index
|
6.83 | % |
SCHEDULE OF INVESTMENTS at December 31, 2010
|
Shares
|
Value
|
||||||
COMMON STOCKS – 75.8%
|
|||||||
Air Freight & Logistics – 1.5%
|
|||||||
20,612 |
TNT NV
|
||||||
(Netherlands)
|
$ | 543,994 | |||||
Apparel & Luxury Goods – 2.2%
|
|||||||
4,916 |
PPR SA (France)
|
781,746 | |||||
Automobiles – 2.1%
|
|||||||
37,000 |
Fiat SPA (Italy)
|
762,912 | |||||
Beverages – 2.6%
|
|||||||
11,210 |
Coca-Cola FEMSA –
|
||||||
ADR (Mexico)1
|
924,040 | ||||||
Capital Markets – 1.1%
|
|||||||
104,100 |
LaBranche & Co., Inc.
|
||||||
(United States)*
|
374,760 | ||||||
Chemicals – 5.0%
|
|||||||
21,038 |
Airgas, Inc.
|
||||||
(United States)1
|
1,314,033 | ||||||
523,100 |
Yingde Gases Group Co.
|
||||||
Ltd. (Hong Kong)*
|
465,035 | ||||||
1,779,068 | |||||||
Commercial Banks – 0.9%
|
|||||||
320,000 |
Lloyds Banking
|
||||||
Group PLC
|
|||||||
(United Kingdom)*
|
327,783 | ||||||
Communications Equipment – 2.3%
|
|||||||
50,000 |
Motorola, Inc.
|
||||||
(United States)*1
|
453,500 | ||||||
13,200 |
Motorola Mobility
|
||||||
Holdings, Inc.
|
|||||||
(United States)*
|
384,120 | ||||||
837,620 | |||||||
Diversified Financial Services – 6.2%
|
|||||||
31,080 |
Bank of America Corp.
|
||||||
(United States)1
|
414,607 | ||||||
13,060 |
CIT Group, Inc.
|
||||||
(United States)*1
|
615,126 | ||||||
10,500 |
EXOR SPA (Italy)
|
346,291 | |||||
103,109 |
RHJ International SA
|
||||||
(Belgium)*
|
854,270 | ||||||
2,230,294 | |||||||
Diversified Telecommunication
|
|||||||
Services – 1.5%
|
|||||||
36,850 |
VimpelCom Ltd. –
|
||||||
ADR (Russia)1
|
554,224 | ||||||
Hotels, Restaurants & Leisure – 1.5%
|
|||||||
462,751 |
Punch Taverns PLC
|
||||||
(United Kingdom)*
|
541,103 | ||||||
Household Durables – 3.3%
|
|||||||
72,200 |
Retail Holdings NV
|
||||||
(Netherlands)2
|
1,162,420 | ||||||
Industrial Conglomerates – 6.8%
|
|||||||
3,802 |
Bollore SA (France)
|
807,569 | |||||
95,710 |
Orkla ASA (Norway)
|
930,027 | |||||
5,534 |
Siemens AG (Germany)
|
685,529 | |||||
2,423,125 | |||||||
Insurance – 2.0%
|
|||||||
363,484 |
Old Mutual PLC
|
||||||
(United Kingdom)
|
697,613 | ||||||
Internet Software & Services – 1.2%
|
|||||||
65,474 |
ModusLink Global
|
||||||
Solutions, Inc.
|
|||||||
(United States)*
|
438,676 | ||||||
Machinery – 2.3%
|
|||||||
2,300 |
MAN SE (Germany)
|
273,511 | |||||
23,900 |
Scania AB (Sweden)
|
549,736 | |||||
823,247 | |||||||
Marine – 5.4%
|
|||||||
55 |
A.P. Moller-Maersk
|
||||||
A/S – Class B
|
|||||||
(Denmark)
|
498,032 | ||||||
3,050,995 |
SeaCo Ltd.
|
||||||
(United Kingdom)*2
|
1,433,968 | ||||||
1,932,000 | |||||||
Media – 21.0%
|
|||||||
28,110 |
British Sky Broadcasting
|
||||||
Group PLC
|
|||||||
(United Kingdom)
|
322,559 | ||||||
19,100 |
DIRECTV – Class A
|
||||||
(United States)*1
|
762,663 |
SCHEDULE OF INVESTMENTS at December 31, 2010, Continued
|
Shares
|
Value
|
||||||
Media – 21.0% (Continued)
|
|||||||
151,454 |
Havas SA (France)
|
$ | 787,295 | ||||
175,793 |
Promotora de
|
||||||
Informaciones SA –
|
|||||||
ADR (Spain)*
|
1,409,860 | ||||||
293,759 |
Promotora de
|
||||||
Informaciones SA –
|
|||||||
Class B – ADR
|
|||||||
(Spain)*
|
2,802,461 | ||||||
19,000 |
ProSiebenSat.1 Media
|
||||||
AG (Germany)
|
571,272 | ||||||
28,800 |
Schibsted ASA
|
||||||
(Norway)
|
848,939 | ||||||
7,505,049 | |||||||
Oil, Gas & Consumable Fuels – 1.9%
|
|||||||
18,000 |
Petroleo Brasileiro
|
||||||
SA – Petrobras –
|
|||||||
ADR (Brazil)
|
681,120 | ||||||
Real Estate Management &
|
|||||||
Development – 1.2%
|
|||||||
8,053 |
The Howard Hughes
|
||||||
Corp. (United States)*
|
438,244 | ||||||
Tobacco – 3.8%
|
|||||||
7,730 |
Philip Morris
|
||||||
International, Inc.
|
|||||||
(United States)1
|
452,437 | ||||||
30,804 |
Swedish Match AB
|
||||||
(Sweden)
|
891,741 | ||||||
1,344,178 | |||||||
TOTAL COMMON STOCKS
|
|||||||
(Cost $25,093,538)
|
27,103,216 | ||||||
PREFERRED STOCK – 0.9%
|
|||||||
Real Estate Investment Trust – 0.9%
|
|||||||
18,100 |
iStar Financial, Inc.
|
||||||
(United States)
|
316,750 | ||||||
TOTAL PREFERRED STOCK
|
|||||||
(Cost $278,516)
|
316,750 | ||||||
PARTNERSHIPS & TRUSTS – 7.1%
|
|||||||
Real Estate Investment
Trust – 7.1%
|
|||||||
81,890 |
General Growth
|
||||||
Properties, Inc.
|
|||||||
(United States)
|
1,267,657 | ||||||
163,200 |
iStar Financial, Inc.
|
||||||
(United States)*
|
1,276,224 | ||||||
TOTAL PARTNERSHIPS
|
|||||||
& TRUSTS
|
|||||||
(Cost $1,958,589)
|
2,543,881 | ||||||
WARRANTS – 1.6%
|
|||||||
Diversified Financial Services – 0.9%
|
|||||||
Bank of America Corp.,
|
|||||||
Expiration:
|
|||||||
January, 2019,
|
|||||||
Exercise Price: $13.30
|
|||||||
18,300 |
(United States)*
|
130,662 | |||||
JPMorgan Chase & Co.,
|
|||||||
Expiration:
|
|||||||
October, 2018,
|
|||||||
Exercise Price: $42.42
|
|||||||
13,050 |
(United States)*
|
188,573 | |||||
319,235 | |||||||
Media – 0.7%
|
|||||||
Promotora de
|
|||||||
Informaciones SA –
|
|||||||
Class A,
|
|||||||
Expiration: June, 2014,
|
|||||||
Exercise Price: $2.00
|
|||||||
589,226 |
(Spain)*
|
236,216 | |||||
TOTAL WARRANTS
|
|||||||
(Cost $457,906)
|
555,451 |
SCHEDULE OF INVESTMENTS at December 31, 2010, Continued
|
Principal
|
|||||||
Amount
|
Value
|
||||||
CORPORATE BONDS – 10.4%
|
|||||||
Commercial Banks – 2.9%
|
|||||||
LBG Capital No. 2
|
|||||||
PLC, 15.000%,
|
|||||||
12/21/2019
|
|||||||
$ | 600,000 |
(United Kingdom)
|
$ | 1,046,330 | |||
Hotels, Restaurants & Leisure – 1.0%
|
|||||||
Punch Taverns Finance
|
|||||||
B, 6.962%, 06/30/2028
|
|||||||
83,000 |
(United Kingdom)
|
58,851 | |||||
Punch Taverns
|
|||||||
Finance Notes,
|
|||||||
8.374%, 07/15/2029
|
|||||||
353,000 |
(United Kingdom)
|
282,406 | |||||
341,257 | |||||||
Insurance – 6.5%
|
|||||||
American International
|
|||||||
Group, Inc.,
|
|||||||
8.625%, 05/22/2038
|
|||||||
1,500,000 |
(United States)3
|
2,315,248 | |||||
TOTAL CORPORATE BONDS
|
|||||||
(Cost $3,477,315)
|
3,702,835 | ||||||
Contracts
|
|||||||
(100 shares per contract)
|
|||||||
CALL OPTIONS PURCHASED – 0.1%
|
|||||||
Investment Company – 0.1%
|
|||||||
CBOE Volatility Index,
|
|||||||
Expiration:
|
|||||||
February, 2011,
|
|||||||
Exercise Price: $25.00
|
|||||||
311 |
(United States)
|
46,650 | |||||
Media – 0.0%
|
|||||||
Promotora de
|
|||||||
Informaciones SA,
|
|||||||
Expiration:
|
|||||||
March, 2011,
|
|||||||
Exercise Price: $2.30
|
|||||||
800 |
(Spain)2
|
5,185 | |||||
TOTAL CALL OPTIONS
|
|||||||
PURCHASED
|
|||||||
(Cost $178,316)
|
51,835 | ||||||
Shares
|
|||||||
SHORT-TERM INVESTMENT – 9.4%
|
|||||||
Money Market Fund – 9.4%
|
|||||||
3,361,302 |
Invesco Liquid
|
||||||
Assets Portfolio –
|
|||||||
Institutional
|
|||||||
Class, 0.195%4
|
3,361,302 | ||||||
TOTAL SHORT-TERM
|
|||||||
INVESTMENT
|
|||||||
(Cost $3,361,302)
|
3,361,302 | ||||||
TOTAL INVESTMENTS IN
|
|||||||
SECURITIES – 105.3%
|
|||||||
(Cost $34,805,482)
|
37,635,270 | ||||||
Liabilities in Excess of
|
|||||||
Other Assets – (5.3)%
|
(1,896,495 | ) | |||||
TOTAL NET
|
|||||||
ASSETS – 100.0%
|
$ | 35,738,775 |
ADR
|
American Depository Receipt
|
*
|
Non-income producing security.
|
1
|
All or a portion of this security was segregated as collateral for forward currency contracts.
|
2
|
Illiquid securities represent 7.3% of total net assets as of December 31, 2010 (Note 2).
|
3
|
Restricted security represents 6.5% of total net assets as of December 31, 2010 (Note 2).
|
4
|
7-day yield as of December 31, 2010.
|
SCHEDULE OF INVESTMENTS at December 31, 2010, Continued
|
Country
|
Percent of
Net Assets |
|||
United States
|
31.3% | |||
United Kingdom
|
13.2% | |||
Spain
|
12.5% | |||
France
|
6.6% | |||
Norway
|
5.0% | |||
Netherlands
|
4.8% | |||
Germany
|
4.3% | |||
Sweden
|
4.0% | |||
Italy
|
3.1% | |||
Mexico
|
2.6% | |||
Belgium
|
2.4% | |||
Brazil
|
1.9% | |||
Russia
|
1.5% | |||
Denmark
|
1.4% | |||
Hong Kong
|
1.3% | |||
Cash & Equivalents^
|
4.1% | |||
Total
|
100.0% |
^
|
Includes money market fund and liabilities in excess of other assets.
|
SCHEDULE OF INVESTMENTS at December 31, 2010
|
Shares
|
Value
|
||||||
COMMON STOCKS – 77.0%
|
|||||||
Air Freight & Logistics – 3.0%
|
|||||||
8,950 |
TNT NV
|
||||||
(Netherlands)
|
$ | 236,209 | |||||
Apparel & Luxury Goods – 3.9%
|
|||||||
1,964 |
PPR SA (France)
|
312,317 | |||||
Automobiles – 2.1%
|
|||||||
8,000 |
Fiat SPA (Italy)
|
164,954 | |||||
Commercial Banks – 3.2%
|
|||||||
247,400 |
Lloyds Banking
|
||||||
Group PLC
|
|||||||
(United Kingdom)*1
|
253,417 | ||||||
Diversified Financial Services – 4.8%
|
|||||||
2,200 |
EXOR SPA (Italy)
|
72,556 | |||||
37,122 |
RHJ International SA
|
||||||
(Belgium)*
|
307,560 | ||||||
380,116 | |||||||
Diversified Telecommunication
|
|||||||
Services – 3.4%
|
|||||||
18,321 |
VimpelCom Ltd. –
|
||||||
ADR (Russia)1
|
275,548 | ||||||
Hotels, Restaurants & Leisure – 2.5%
|
|||||||
167,649 |
Punch Taverns PLC
|
||||||
(United Kingdom)*
|
196,035 | ||||||
Industrial Conglomerates – 12.9%
|
|||||||
1,849 |
Bollore SA (France)1
|
392,740 | |||||
30,400 |
Orkla ASA (Norway)1
|
295,401 | |||||
2,761 |
Siemens AG (Germany)
|
342,021 | |||||
1,030,162 | |||||||
Insurance – 3.7%
|
|||||||
155,308 |
Old Mutual PLC
|
||||||
(United Kingdom)1
|
298,073 | ||||||
Machinery – 2.8%
|
|||||||
500 |
MAN SE (Germany)
|
59,459 | |||||
7,250 |
Scania AB (Sweden)
|
166,761 | |||||
226,220 | |||||||
Marine – 2.5%
|
|||||||
22 |
A.P. Moller-Maersk
|
||||||
A/S – Class B
|
|||||||
(Denmark)
|
199,213 | ||||||
Media – 24.8%
|
|||||||
18,110 |
British Sky Broadcasting
|
||||||
Group PLC
|
|||||||
(United Kingdom)
|
207,810 | ||||||
52,916 |
Havas SA (France)
|
275,070 | |||||
32,300 |
Promotora de
|
||||||
Informaciones SA –
|
|||||||
ADR (Spain)*1
|
259,046 | ||||||
77,349 |
Promotora de
|
||||||
Informaciones SA –
|
|||||||
Class B – ADR
|
|||||||
(Spain)*1
|
737,910 | ||||||
5,100 |
ProSiebenSat.1
|
||||||
Media AG (Germany)
|
153,341 | ||||||
11,550 |
Schibsted ASA
|
||||||
(Norway)1
|
340,460 | ||||||
1,973,637 | |||||||
Tobacco – 7.4%
|
|||||||
4,968 |
Philip Morris
|
||||||
International, Inc.
|
|||||||
(United States)1
|
290,777 | ||||||
10,396 |
Swedish Match AB
|
||||||
(Sweden)1
|
300,953 | ||||||
591,730 | |||||||
TOTAL COMMON STOCKS
|
|||||||
(Cost $5,644,062)
|
6,137,631 | ||||||
WARRANT – 0.6%
|
|||||||
Media – 0.6%
|
|||||||
Promotora de
|
|||||||
Informaciones SA –
|
|||||||
Class A, Expiration:
|
|||||||
June, 2014,
|
|||||||
Exercise Price: $2.00
|
|||||||
125,200 |
(Spain)*
|
50,192 | |||||
TOTAL WARRANT
|
|||||||
(Cost $32,143)
|
50,192 |
SCHEDULE OF INVESTMENTS at December 31, 2010, Continued
|
Principal
|
|||||||
Amount
|
Value
|
||||||
CORPORATE BONDS – 9.0%
|
|||||||
Commercial Banks – 4.4%
|
|||||||
LBG Capital No. 2 PLC,
|
|||||||
15.000%, 12/21/2019
|
|||||||
$ | 200,000 |
(United Kingdom)
|
$ | 348,777 | |||
Hotels, Restaurants & Leisure – 0.7%
|
|||||||
Punch Taverns Finance B,
|
|||||||
6.962%, 06/30/2028
|
|||||||
29,000 |
(United Kingdom)
|
20,563 | |||||
Punch Taverns Finance
|
|||||||
Notes, 8.374%,
|
|||||||
07/15/2029
|
|||||||
45,000 |
(United Kingdom)
|
36,001 | |||||
56,564 | |||||||
Insurance – 3.9%
|
|||||||
American International
|
|||||||
Group, Inc.,
|
|||||||
8.625%, 05/22/2038
|
|||||||
200,000 |
(United States)2
|
308,699 | |||||
TOTAL CORPORATE BONDS
|
|||||||
(Cost $697,281)
|
714,040 | ||||||
Contracts
|
|||||||
(100 shares per contract)
|
|||||||
CALL OPTIONS PURCHASED – 0.1%
|
|||||||
Investment Company – 0.1%
|
|||||||
CBOE Volatility Index,
|
|||||||
Expiration:
|
|||||||
February, 2011,
|
|||||||
Exercise Price: $25.00
|
|||||||
61 |
(United States)
|
9,150 | |||||
Media – 0.0%
|
|||||||
Promotora de
|
|||||||
Informaciones SA,
|
|||||||
Expiration:
|
|||||||
March, 2011,
|
|||||||
Exercise Price: $2.30
|
|||||||
150 |
(Spain)3
|
972 | |||||
TOTAL CALL OPTIONS
|
|||||||
PURCHASED
|
|||||||
(Cost $34,512)
|
10,122 | ||||||
Shares
|
|||||||
SHORT-TERM INVESTMENT – 19.6%
|
|||||||
Money Market Fund – 19.6%
|
|||||||
1,563,246 |
Invesco Liquid
|
||||||
Assets Portfolio –
|
|||||||
Institutional
|
|||||||
Class, 0.195%4
|
1,563,246 | ||||||
TOTAL SHORT-TERM
|
|||||||
INVESTMENT
|
|||||||
(Cost $1,563,246)
|
1,563,246 | ||||||
TOTAL INVESTMENTS IN
|
|||||||
SECURITIES – 106.3%
|
|||||||
(Cost $7,971,244)
|
8,475,231 | ||||||
Liabilities in Excess of
|
|||||||
Other Assets – (6.3)%
|
(499,853 | ) | |||||
TOTAL NET
|
|||||||
ASSETS – 100.0%
|
$ | 7,975,378 |
ADR
|
American Depository Receipt
|
*
|
Non-income producing security.
|
1
|
All or a portion of this security was segregated as collateral for forward currency contracts.
|
2
|
Restricted security represents 3.9% of total net assets as of December 31, 2010 (Note 2).
|
3
|
Illiquid security represents less than 0.0% of total net assets as of December 31, 2010 (Note 2).
|
4
|
7-day yield as of December 31, 2010.
|
SCHEDULE OF INVESTMENTS at December 31, 2010, Continued
|
Percent of
|
||||
Country
|
Net Assets
|
|||
United Kingdom
|
17.1% | |||
Spain
|
13.1% | |||
France
|
12.3% | |||
Norway
|
8.0% | |||
United States
|
7.6% | |||
Germany
|
6.9% | |||
Sweden
|
5.9% | |||
Belgium
|
3.9% | |||
Russia
|
3.4% | |||
Italy
|
3.0% | |||
Netherlands
|
3.0% | |||
Denmark
|
2.5% | |||
Cash & Equivalents^
|
13.3% | |||
Total
|
100.0% |
^
|
Includes money market fund and liabilities in excess of other assets.
|
STATEMENTS OF ASSETS AND LIABILITIES at December 31, 2010
|
Evermore
|
Evermore
|
|||||||
Global
|
European
|
|||||||
Value Fund
|
Value Fund
|
|||||||
ASSETS
|
||||||||
Investments in securities, at value^ (Note 2)
|
$ | 37,635,270 | $ | 8,475,231 | ||||
Unrealized gain on forward currency contracts
|
56,047 | 11,372 | ||||||
Cash
|
— | 1,843 | ||||||
Foreign cash (cost of $2,842 and
|
||||||||
$32,043, respectively)
|
2,267 | 32,444 | ||||||
Receivables:
|
||||||||
Investment securities sold
|
292,464 | — | ||||||
Fund shares sold
|
88,485 | 230,790 | ||||||
Currency receivable
|
3,114 | 1,886 | ||||||
Dividends and interest, net
|
126,067 | 25,018 | ||||||
Due from adviser, net
|
4,201 | 21,778 | ||||||
Prepaid expenses
|
36,090 | 33,542 | ||||||
Total assets
|
38,244,005 | 8,833,904 | ||||||
LIABILITIES
|
||||||||
Unrealized loss on forward currency contracts
|
106,676 | 39,226 | ||||||
Due to broker
|
898,419 | 197,347 | ||||||
Payables:
|
||||||||
Investment securities purchased
|
1,140,437 | 566,414 | ||||||
Fund shares redeemed
|
296,767 | — | ||||||
Administration fees
|
4,689 | 4,689 | ||||||
Custody fees
|
13,447 | 9,173 | ||||||
Distribution fees
|
— | 6 | ||||||
Fund accounting fees
|
6,494 | 6,250 | ||||||
Transfer agent fees
|
8,188 | 6,664 | ||||||
Other accrued expenses
|
30,113 | 28,757 | ||||||
Total liabilities
|
2,505,230 | 858,526 | ||||||
NET ASSETS
|
$ | 35,738,775 | $ | 7,975,378 | ||||
COMPONENTS OF NET ASSETS
|
||||||||
Paid-in capital
|
$ | 33,523,638 | $ | 7,612,656 | ||||
Accumulated net investment income
|
47,447 | 27,033 | ||||||
Accumulated net realized loss on investments, foreign
|
||||||||
currency transactions & forward currency contracts
|
(609,934 | ) | (139,414 | ) | ||||
Net unrealized appreciation on investments
|
2,829,788 | 503,987 | ||||||
Net unrealized depreciation on foreign currency
|
||||||||
transactions & forward currency contracts
|
(52,164 | ) | (28,884 | ) | ||||
Net assets
|
$ | 35,738,775 | $ | 7,975,378 | ||||
^ Cost of Investments
|
$ | 34,805,482 | $ | 7,971,244 |
STATEMENTS OF ASSETS AND LIABILITIES at December 31, 2010, Continued
|
Evermore
|
Evermore
|
|||||||||||
Global
|
European
|
|||||||||||
Value Fund
|
Value Fund
|
|||||||||||
Class A:
|
||||||||||||
Net assets
|
$ | 3,651,271 | $ | 856,857 | ||||||||
Shares issued and outstanding (unlimited number
|
||||||||||||
of shares authorized without par value)
|
347,722 | 85,479 | ||||||||||
Net asset value, and redemption price per share
|
$ | 10.50 | $ | 10.02 | ||||||||
Maximum offering price per share*
|
||||||||||||
(net asset value per share/front-end sales charge)
|
||||||||||||
($10.50/95.00%) | $ | 11.05 | ||||||||||
($10.02/95.00%) | $ | 10.55 | ||||||||||
Class C:
|
||||||||||||
Net assets
|
$ | 29,916 | $ | 16,569 | ||||||||
Shares issued and outstanding (unlimited number
|
||||||||||||
of shares authorized without par value)
|
2,877 | 1,667 | ||||||||||
Net asset value, offering price, and
|
||||||||||||
redemption price per share**
|
$ | 10.40 | $ | 9.94 | ||||||||
Class I:
|
||||||||||||
Net assets
|
$ | 32,057,588 | $ | 7,101,952 | ||||||||
Shares issued and outstanding (unlimited number
|
||||||||||||
of shares authorized without par value)
|
3,046,885 | 705,588 | ||||||||||
Net asset value, offering price, and
|
||||||||||||
redemption price per share
|
$ | 10.52 | $ | 10.07 |
*
|
Class A share investments of $1 million or more, which are purchased at Net Asset Value, are subject to a 0.75% contingent deferred sales charge (“CDSC”) if redeemed within 12 months.
|
**
|
A 1.00% CDSC applies to the lesser of the amount invested or the redemption value of Class C shares redeemed within 12 months after purchase.
|
STATEMENTS OF OPERATIONS for the Year Ended December 31, 2010*
|
Evermore
|
Evermore
|
|||||||
Global
|
European
|
|||||||
Value Fund
|
Value Fund
|
|||||||
INVESTMENT INCOME
|
||||||||
Income
|
||||||||
Dividends (net of $14,995 and $3,378 foreign
|
||||||||
withholding tax, respectively)
|
$ | 177,772 | $ | 27,355 | ||||
Interest
|
175,664 | 30,296 | ||||||
Other income
|
6,145 | 719 | ||||||
Total investment income
|
359,581 | 58,370 | ||||||
EXPENSES (Note 3)
|
||||||||
Investment advisory fees
|
183,180 | 35,355 | ||||||
Custody fees
|
61,633 | 45,420 | ||||||
Transfer agent fees
|
58,745 | 52,018 | ||||||
Registration fees
|
54,691 | 53,425 | ||||||
Professional fees
|
51,082 | 50,923 | ||||||
Administration fees
|
48,030 | 48,030 | ||||||
Fund accounting fees
|
43,464 | 42,407 | ||||||
Chief Compliance Officer fees
|
40,864 | 40,751 | ||||||
Trustee fees
|
25,631 | 25,562 | ||||||
Insurance expense
|
14,245 | 13,972 | ||||||
Miscellaneous expenses
|
10,178 | 7,037 | ||||||
Reports to shareholders
|
6,502 | 5,299 | ||||||
Distribution fees – Class A
|
4,688 | 1,224 | ||||||
Interest expense
|
3,833 | 938 | ||||||
Distribution fees – Class C
|
1,208 | 162 | ||||||
Total expenses
|
607,974 | 422,523 | ||||||
Less expense reimbursement
|
(347,718 | ) | (371,722 | ) | ||||
Net expenses
|
260,256 | 50,801 | ||||||
Net investment income
|
99,325 | 7,569 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS &
|
||||||||
FOREIGN CURRENCY TRANSACTIONS
|
||||||||
Net realized loss on investments, options
|
||||||||
and foreign currency transactions
|
(1,067,585 | ) | (237,236 | ) | ||||
Change in unrealized appreciation on investments
|
2,829,788 | 503,987 | ||||||
Change in unrealized depreciation on foreign currency
|
||||||||
translations & forward currency contracts
|
(52,164 | ) | (28,884 | ) | ||||
Net realized and unrealized gain on investments &
|
||||||||
foreign currency transactions
|
1,710,039 | 237,867 | ||||||
Net increase in net assets
|
||||||||
resulting from operations
|
$ | 1,809,364 | $ | 245,436 |
STATEMENT OF CHANGES IN NET ASSETS
|
Year Ended
|
||||
December 31,
|
||||
2010* | ||||
INCREASE (DECREASE) IN NET ASSETS FROM:
|
||||
OPERATIONS
|
||||
Net investment income
|
$ | 99,325 | ||
Net realized loss on investments, options & foreign currency
|
||||
transactions
|
(1,067,585 | ) | ||
Change in unrealized appreciation on investments
|
2,829,788 | |||
Change in unrealized depreciation on foreign currency
|
||||
translations & forward currency contracts
|
(52,164 | ) | ||
Net increase in net assets resulting from operations
|
1,809,364 | |||
CAPITAL SHARE TRANSACTIONS (Note 3)
|
||||
Net increase in net assets derived from net change in
|
||||
outstanding shares – Class A (a)(b)
|
3,540,677 | |||
Net increase in net assets derived from net change in
|
||||
outstanding shares – Class C (a)
|
25,540 | |||
Net increase in net assets derived from net change in
|
||||
outstanding shares – Class I (a)
|
30,363,194 | |||
Total increase in net assets from capital share transactions
|
33,929,411 | |||
Total increase in net assets
|
35,738,775 | |||
NET ASSETS
|
||||
Beginning of year
|
— | |||
End of year
|
$ | 35,738,775 | ||
Undistributed net investment income
|
$ | 47,447 |
STATEMENT OF CHANGES IN NET ASSETS, Continued
|
(a)
|
Summary of capital share transactions is as follows:
|
Year Ended
|
||||||||
December 31,
|
||||||||
2010* | ||||||||
Class A
|
Shares
|
Value
|
||||||
Shares sold
|
444,299 | $ | 4,443,211 | |||||
Shares redeemed (b)
|
(96,577 | ) | (902,534 | ) | ||||
Net increase
|
347,722 | $ | 3,540,677 |
(b)
|
Net of redemption fees of $1,250.
|
Year Ended
|
||||||||
December 31,
|
||||||||
2010* | ||||||||
Class C
|
Shares
|
Value
|
||||||
Shares sold
|
23,054 | $ | 228,667 | |||||
Shares redeemed
|
(20,177 | ) | (203,127 | ) | ||||
Net increase
|
2,877 | $ | 25,540 | |||||
Year Ended
|
||||||||
December 31,
|
||||||||
2010* | ||||||||
Class I
|
Shares
|
Value
|
||||||
Shares sold
|
3,314,806 | $ | 33,082,689 | |||||
Shares redeemed
|
(267,921 | ) | (2,719,495 | ) | ||||
Net increase
|
3,046,885 | $ | 30,363,194 |
*
|
Fund commenced operations on January 1, 2010.
|
STATEMENT OF CHANGES IN NET ASSETS
|
Year Ended
|
||||
December 31,
|
||||
2010* | ||||
INCREASE (DECREASE) IN NET ASSETS FROM:
|
||||
OPERATIONS
|
||||
Net investment income
|
$ | 7,569 | ||
Net realized loss on investments, options & foreign
|
||||
currency transactions
|
(237,236 | ) | ||
Change in unrealized appreciation on investments
|
503,987 | |||
Change in unrealized depreciation on foreign
|
||||
currency translations & forward currency contracts
|
(28,884 | ) | ||
Net increase in net assets resulting from operations
|
245,436 | |||
CAPITAL SHARE TRANSACTIONS (Note 3)
|
||||
Net increase in net assets derived from net change in
|
||||
outstanding shares – Class A (a)(b)
|
847,017 | |||
Net increase in net assets derived from net change in
|
||||
outstanding shares – Class C (a)
|
16,667 | |||
Net increase in net assets derived from net change in
|
||||
outstanding shares – Class I (a)(c)
|
6,866,258 | |||
Total increase in net assets from capital share transactions
|
7,729,942 | |||
Total increase in net assets
|
7,975,378 | |||
NET ASSETS
|
||||
Beginning of year
|
— | |||
End of year
|
$ | 7,975,378 | ||
Undistributed net investment income
|
$ | 27,033 |
STATEMENT OF CHANGES IN NET ASSETS, Continued
|
(a)
|
Summary of capital share transactions is as follows:
|
Year Ended
|
||||||||
December 31,
|
||||||||
2010* | ||||||||
Class A
|
Shares
|
Value
|
||||||
Shares sold
|
160,213 | $ | 1,574,634 | |||||
Shares redeemed (b)
|
(74,734 | ) | (727,617 | ) | ||||
Net increase
|
85,479 | $ | 847,017 |
(b)
|
Net of redemption fees of $194.
|
Year Ended
|
||||||||
December 31,
|
||||||||
2010* | ||||||||
Class C
|
Shares
|
Value
|
||||||
Shares sold
|
1,667 | $ | 16,667 | |||||
Shares redeemed
|
— | — | ||||||
Net increase
|
1,667 | $ | 16,667 | |||||
Year Ended
|
||||||||
December 31,
|
||||||||
2010* | ||||||||
Class I
|
Shares
|
Value
|
||||||
Shares sold
|
720,711 | $ | 7,014,504 | |||||
Shares redeemed (c)
|
(15,123 | ) | (148,246 | ) | ||||
Net increase
|
705,588 | $ | 6,866,258 |
(c)
|
Net of redemption fees of $2,139.
|
*
|
Fund commenced operations on January 1, 2010.
|
FINANCIAL HIGHLIGHTS For a capital share outstanding throughout the year
|
Year Ended
|
||||
December 31,
|
||||
2010* | ||||
Net asset value, beginning of year
|
$ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS
|
||||
Net investment income
|
0.02 | |||
Net realized and unrealized gain on investments
|
0.48 | |||
Total from investment operations
|
0.50 | |||
Paid-in capital from redemption fees (Note 2)
|
0.00 | 1 | ||
Net asset value, end of year
|
$ | 10.50 | ||
Total return without sales load.
|
5.00 | % | ||
Total return with sales load.
|
(0.28 | )% | ||
RATIOS/SUPPLEMENTAL DATA
|
||||
Net assets, end of year (thousands)
|
$ | 3,651 | ||
RATIO OF EXPENSES TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed2,6
|
3.60 | % | ||
After expenses absorbed3,6
|
1.62 | % | ||
RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed4,6
|
(1.59 | )% | ||
After expenses absorbed5,6
|
0.39 | % | ||
Portfolio turnover rate
|
77 | % |
*
|
Fund commenced operations on January 1, 2010.
|
1
|
Amount less than $0.01.
|
2
|
The ratio of expenses to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 3.58%.
|
3
|
The ratio of expenses to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 1.60%.
|
4
|
The ratio of net investment income (loss) to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was (1.57)%.
|
5
|
The ratio of net investment income (loss) to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 0.41%.
|
6
|
Does not include expenses of the investment companies in which the Fund invests.
|
FINANCIAL HIGHLIGHTS For a capital share outstanding throughout the year, Continued
|
Year Ended
|
||||
December 31,
|
||||
2010* | ||||
Net asset value, beginning of year
|
$ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS
|
||||
Net investment loss
|
(0.21 | ) | ||
Net realized and unrealized gain on investments
|
0.61 | |||
Total from investment operations
|
0.40 | |||
Paid-in capital from redemption fees (Note 2)
|
— | |||
Net asset value, end of year
|
$ | 10.40 | ||
Total return without sales load.
|
4.00 | % | ||
Total return with sales load.
|
3.00 | % | ||
RATIOS/SUPPLEMENTAL DATA
|
||||
Net assets, end of year (thousands)
|
$ | 30 | ||
RATIO OF EXPENSES TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed1,5
|
5.86 | % | ||
After expenses absorbed2,5
|
2.37 | % | ||
RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed3,5
|
(4.02 | )% | ||
After expenses absorbed4,5
|
(0.53 | )% | ||
Portfolio turnover rate
|
77 | % |
*
|
Fund commenced operations on January 1, 2010.
|
1
|
The ratio of expenses to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 5.84%.
|
2
|
The ratio of expenses to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 2.35%.
|
3
|
The ratio of net investment loss to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was (4.00)%.
|
4
|
The ratio of net investment loss to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was (0.51)%.
|
5
|
Does not include expenses of the investment companies in which the Fund invests.
|
FINANCIAL HIGHLIGHTS For a capital share outstanding throughout the year, Continued
|
Year Ended
|
||||
December 31,
|
||||
2010* | ||||
Net asset value, beginning of year
|
$ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS
|
||||
Net investment income
|
0.03 | |||
Net realized and unrealized gain on investments
|
0.49 | |||
Total from investment operations
|
0.52 | |||
Paid-in capital from redemption fees (Note 2)
|
— | |||
Net asset value, end of year
|
$ | 10.52 | ||
Total return
|
5.20 | % | ||
RATIOS/SUPPLEMENTAL DATA
|
||||
Net assets, end of year (thousands)
|
$ | 32,058 | ||
RATIO OF EXPENSES TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed1,5
|
3.23 | % | ||
After expenses absorbed2,5
|
1.37 | % | ||
RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed3,5
|
(1.30 | )% | ||
After expenses absorbed4,5
|
0.56 | % | ||
Portfolio turnover rate
|
77 | % |
*
|
Fund commenced operations on January 1, 2010.
|
1
|
The ratio of expenses to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 3.21%.
|
2
|
The ratio of expenses to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 1.35%.
|
3
|
The ratio of net investment income (loss) to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was (1.28)%.
|
4
|
The ratio of net investment income (loss) to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 0.58%.
|
5
|
Does not include expenses of the investment companies in which the Fund invests.
|
FINANCIAL HIGHLIGHTS For a capital share outstanding throughout the year
|
Year Ended
|
||||
December 31,
|
||||
2010* | ||||
Net asset value, beginning of year
|
$ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS
|
||||
Net investment income
|
0.02 | |||
Net realized and unrealized gain on investments
|
— | |||
Total from investment operations
|
0.02 | |||
Paid-in capital from redemption fees (Note 2)
|
0.00 | 1 | ||
Net asset value, end of year
|
$ | 10.02 | ||
Total return without sales load.
|
0.20 | % | ||
Total return with sales load.
|
(4.84 | )% | ||
RATIOS/SUPPLEMENTAL DATA
|
||||
Net assets, end of year (thousands)
|
$ | 857 | ||
RATIO OF EXPENSES TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed2,6
|
14.21 | % | ||
After expenses absorbed3,6
|
1.63 | % | ||
RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed4,6
|
(12.26 | )% | ||
After expenses absorbed5,6
|
0.32 | % | ||
Portfolio turnover rate
|
37 | % |
*
|
Fund commenced operations on January 1, 2010.
|
1
|
Amount less than $0.01.
|
2
|
The ratio of expenses to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 14.18%.
|
3
|
The ratio of expenses to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 1.60%.
|
4
|
The ratio of net investment income (loss) to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was (12.23)%.
|
5
|
The ratio of net investment income (loss) to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 0.35%.
|
6
|
Does not include expenses of the investment companies in which the Fund invests.
|
FINANCIAL HIGHLIGHTS For a capital share outstanding throughout the year, Continued
|
Year Ended
|
||||
December 31,
|
||||
2010* | ||||
Net asset value, beginning of year
|
$ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS
|
||||
Net investment loss
|
(0.07 | ) | ||
Net realized and unrealized gain on investments
|
0.01 | |||
Total from investment operations
|
(0.06 | ) | ||
Paid-in capital from redemption fees (Note 2)
|
— | |||
Net asset value, end of year
|
$ | 9.94 | ||
Total return without sales load.
|
(0.60 | )% | ||
Total return with sales load.
|
(1.59 | )% | ||
RATIOS/SUPPLEMENTAL DATA
|
||||
Net assets, end of year (thousands)
|
$ | 16 | ||
RATIO OF EXPENSES TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed1,5
|
20.74 | % | ||
After expenses absorbed2,5
|
2.36 | % | ||
RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed3,5
|
(19.13 | )% | ||
After expenses absorbed4,5
|
(0.75 | )% | ||
Portfolio turnover rate
|
37 | % |
*
|
Fund commenced operations on January 1, 2010.
|
1
|
The ratio of expenses to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 20.73%.
|
2
|
The ratio of expenses to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 2.35%.
|
3
|
The ratio of net investment loss to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was (19.12)%.
|
4
|
The ratio of net investment loss to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was (0.74)%.
|
5
|
Does not include expenses of the investment companies in which the Fund invests.
|
FINANCIAL HIGHLIGHTS For a capital share outstanding throughout the year, Continued
|
Year Ended
|
||||
December 31,
|
||||
2010* | ||||
Net asset value, beginning of year
|
$ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS
|
||||
Net investment income
|
0.01 | |||
Net realized and unrealized gain on investments
|
0.06 | |||
Total from investment operations
|
0.07 | |||
Paid-in capital from redemption fees (Note 2)
|
0.00 | 1 | ||
Net asset value, end of year
|
$ | 10.07 | ||
Total return
|
0.70 | % | ||
RATIOS/SUPPLEMENTAL DATA
|
||||
Net assets, end of year (thousands)
|
$ | 7,102 | ||
RATIO OF EXPENSES TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed2,6
|
11.40 | % | ||
After expenses absorbed3,6
|
1.38 | % | ||
RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS
|
||||
Before expenses absorbed4,6
|
(9.82 | )% | ||
After expenses absorbed5,6
|
0.20 | % | ||
Portfolio turnover rate
|
37 | % |
*
|
Fund commenced operations on January 1, 2010.
|
1
|
Amount less than $0.01.
|
2
|
The ratio of expenses to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 11.37%.
|
3
|
The ratio of expenses to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 1.35%.
|
4
|
The ratio of net investment income (loss) to average net assets before expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was (9.79)%.
|
5
|
The ratio of net investment income (loss) to average net assets after expenses absorbed includes interest expense. The ratio excluding interest expense for the year ended December 31, 2010 was 0.23%.
|
6
|
Does not include expenses of the investment companies in which the Fund invests.
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010
|
NOTE 1 – ORGANIZATION
|
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
|
A.
|
Security Valuation. All equity securities that are traded on a national securities exchange, except those listed on the NASDAQ Global Market® (“NASDAQ”), are valued at the last reported sale price on the exchange on which the security is principally traded. Securities traded on NASDAQ will be valued at the NASDAQ Official Closing Price. If, on a particular day, an exchange-traded or NASDAQ security does not trade, then the mean between the most recent quoted bid and asked prices will be used. All equity securities that are not traded on a listed exchange are valued at the last sale price in the over-the-counter market. If a non-exchange traded security does not trade on a particular day, then the mean between the last quoted closing bid and asked price will be used. Investments in mutual funds are valued at the net asset value (“NAV”).
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
|
Exchange-traded options are valued at the mean of the bid and asked quotations on the exchange at closing. Options not traded on an exchange are valued at the mean of the bid and asked quotations.
|
|
Debt securities exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely used quotation system.
|
|
Short-term securities that have maturities of less than 60 days, at the time of purchase, are valued at cost, which when combined with accrued interest, approximates market value.
|
The Funds invest substantially in securities traded on foreign exchanges (see “Foreign Currency Translation”). Investments that are primarily traded on foreign exchanges are generally valued at the preceding closing values of such securities on their respective exchanges, or if there were no transactions on such day, at the mean between the bid and asked prices. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents. Foreign currency forward contracts are valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s exchange rate, and the 30-, 60-, 90-, 180-, and 360-day forward rates provided by an independent pricing service.
|
|
There may be less publicly available information about a foreign company than about a U.S. company. Foreign issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to, or as uniform as, those of U.S. issuers. The number of securities traded, and the frequency of such trading, in non-U.S. securities markets, while growing in volume, is for the most part, substantially less than in U.S. markets. As a result, securities of many foreign issuers are less liquid and their prices more volatile than securities of comparable U.S. issuers. Transaction costs, the costs associated with buying and selling securities on non-U.S. securities markets may be higher than in the U.S. There is generally less government supervision and regulation of exchanges, brokers and issuers than there is in the U.S. Each Fund’s foreign investments may include both voting and non-voting securities,
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
|
sovereign debt and participations in foreign government deals. The Funds may have greater difficulty taking appropriate legal action with respect to foreign investments in non-U.S. courts than with respect to domestic issuers in U.S. courts.
|
|
Securities for which quotations are not readily available are valued at their respective fair values as determined in good faith by the Board of Trustees. When a security is “fair valued,” consideration is given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the pricing procedures adopted by the Funds’ Board of Trustees. Fair value pricing is an inherently subjective process, and no single standard exists for determining fair value. Different funds could reasonably arrive at different values for the same security. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated without regard to such considerations. As of December 31, 2010, Promotora de Informaciones SA, a call option held by both Funds, was fair valued pursuant to the Trust’s valuation procedures.
|
As described previously, the Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
|
Level 1 –
|
Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.
|
Level 2 –
|
Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
|
Level 3 –
|
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
|
|
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
|
extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
|
|
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.
|
The following is a summary of the inputs used to value the Evermore Global Value Fund’s assets and liabilities as of December 31, 2010:
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Common Stocks^
|
$ | 27,103,216 | $ | — | $ | — | $ | 27,103,216 | ||||||||
Preferred Stock^
|
316,750 | — | — | 316,750 | ||||||||||||
Partnerships & Trusts^
|
2,543,881 | — | — | 2,543,881 | ||||||||||||
Warrants^
|
555,451 | — | — | 555,451 | ||||||||||||
Corporate Bonds^
|
— | 3,702,835 | — | 3,702,835 | ||||||||||||
Call Options Purchased^
|
46,650 | — | 5,185 | 51,835 | ||||||||||||
Short-Term Investment
|
3,361,302 | — | — | 3,361,302 | ||||||||||||
Total Investments
|
||||||||||||||||
in Securities
|
$ | 33,927,250 | $ | 3,702,835 | $ | 5,185 | $ | 37,635,270 | ||||||||
Other Financial
|
||||||||||||||||
Instruments #
|
||||||||||||||||
Unrealized appreciation
|
$ | — | $ | 56,047 | $ | — | $ | 56,047 | ||||||||
Unrealized depreciation
|
— | (106,676 | ) | — | (106,676 | ) | ||||||||||
Total Investments in Other
|
||||||||||||||||
Financial Instruments
|
$ | — | $ | (50,629 | ) | $ | — | $ | (50,629 | ) |
^
|
See Schedule of Investments for industry breakout.
|
#
|
Other Financial Instruments are derivative instruments (forward currency contracts), which are valued at the unrealized appreciation (depreciation) on the investments.
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
|
The following is a summary of the inputs used to value the Evermore European Value Fund’s assets and liabilities as of December 31, 2010:
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Common Stocks^
|
$ | 6,137,631 | $ | — | $ | — | $ | 6,137,631 | ||||||||
Warrant^
|
50,192 | — | — | 50,192 | ||||||||||||
Corporate Bonds^
|
— | 714,040 | — | 714,040 | ||||||||||||
Call Options Purchased^
|
9,150 | — | 972 | 10,122 | ||||||||||||
Short-Term Investment
|
1,563,246 | — | — | 1,563,246 | ||||||||||||
Total Investments
|
||||||||||||||||
in Securities
|
$ | 7,760,219 | $ | 714,040 | $ | 972 | $ | 8,475,231 | ||||||||
Other Financial
|
||||||||||||||||
Instruments #
|
||||||||||||||||
Unrealized appreciation
|
$ | — | $ | 11,372 | $ | — | $ | 11,372 | ||||||||
Unrealized depreciation
|
— | (39,226 | ) | — | (39,226 | ) | ||||||||||
Total Investments in Other
|
||||||||||||||||
Financial Instruments
|
$ | — | $ | (27,854 | ) | $ | — | $ | (27,854 | ) |
^
|
See Schedule of Investments for industry breakout.
|
#
|
Other Financial Instruments are derivative instruments (forward currency contracts), which are valued at the unrealized appreciation (depreciation) on the investments.
|
|
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
|
Evermore Global Value Fund
|
||||
Balance as of 1/1/2010
|
$ | — | ||
Accrued discounts/premiums
|
— | |||
Realized gain
|
— | |||
Change in unrealized depreciation
|
(48,416 | ) | ||
Net purchases
|
53,601 | |||
Transfer in and/or out of Level 3
|
— | |||
Balance as of 12/31/2010
|
$ | 5,185 | ||
Evermore European Value Fund
|
||||
Balance as of 1/1/2010
|
$ | — | ||
Accrued discounts/premiums
|
— | |||
Realized gain
|
— | |||
Change in unrealized depreciation
|
(9,078 | ) | ||
Net purchases
|
10,050 | |||
Transfer in and/or out of Level 3
|
— | |||
Balance as of 12/31/2010
|
$ | 972 |
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
|
The Funds have adopted enhanced disclosure regarding derivatives and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position.
|
|
The Funds may employ hedging strategies. Hedging is a technique designed to reduce a potential loss to a fund as a result of certain economic or market risks, including risks related to fluctuations in interest rates, currency exchange rates between U.S. and foreign securities or between different foreign currencies, and broad or specific market movements. When pursuing these hedging strategies, the Funds will primarily engage in forward foreign currency exchange contracts. However, the Funds may also engage in the following currency transactions: currency futures contracts, currency swaps, options on currencies, or options on currency futures. In addition, the Funds may engage in other types of transactions, such as the purchase and sale of exchange-listed and OTC put and call options on securities, equity and fixed-income indices and other financial instruments; and the purchase and sale of financial and other futures contracts and options on futures contracts.
|
Asset Derivatives as
|
Liability Derivatives as
|
|||||||||
of December 31, 2010
|
of December 31, 2010
|
|||||||||
Balance
|
Balance
|
|||||||||
Sheet
|
Unrealized
|
Sheet
|
Unrealized
|
|||||||
Derivative Instruments
|
Location
|
Appreciation
|
Location
|
Depreciation
|
||||||
Forward
|
Unrealized
|
$ | 56,047 |
Unrealized
|
$ | 106,676 | ||||
Currency
|
gain on
|
loss on
|
||||||||
Contracts
|
forward
|
forward
|
||||||||
currency
|
currency
|
|||||||||
contracts
|
contracts
|
|||||||||
Call
|
None
|
— |
Investments
|
126,481 | ||||||
Options
|
in securities,
|
|||||||||
Purchased
|
at value
|
|||||||||
Total
|
$ | 56,047 | $ | 233,157 |
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
|
The effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2010:
|
Location
|
Location
|
Change in
|
||||||||
of
|
of
|
Unrealized
|
||||||||
Realized
|
Realized
|
Unrealized
|
Appreciation
|
|||||||
Gain
|
Gain
|
Gain
|
(Depreciation)
|
|||||||
(Loss) on
|
(Loss) on
|
(Loss) on
|
on
|
|||||||
Derivatives
|
Derivatives
|
Derivatives
|
Derivatives
|
|||||||
Derivative
|
Recognized
|
Recognized
|
Recognized
|
Recognized
|
||||||
Instruments
|
in Income
|
in Income
|
in Income
|
in Income
|
||||||
Forward
|
Net realized
|
$ | (627,324 | ) |
Change in
|
$ | (52,164 | ) | ||
Currency
|
loss on
|
unrealized
|
||||||||
Contracts
|
investments,
|
depreciation
|
||||||||
options and
|
on foreign
|
|||||||||
foreign
|
currency
|
|||||||||
currency
|
translations
|
|||||||||
transactions
|
and forward
|
|||||||||
contracts
|
||||||||||
Call Options
|
(867,920 | ) |
Change in
|
(126,481 | ) | |||||
Purchased
|
unrealized
|
|||||||||
appreciation
|
||||||||||
on investments
|
||||||||||
Call Options
|
119,215 |
None
|
— | |||||||
Written
|
||||||||||
$ | (1,376,029 | ) | $ | (178,645 | ) |
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
Asset Derivatives as
|
Liability Derivatives as
|
|||||||||
of December 31, 2010
|
of December 31, 2010
|
|||||||||
Balance
|
Balance
|
|||||||||
Sheet
|
Unrealized
|
Sheet
|
Unrealized
|
|||||||
Derivative Instruments
|
Location
|
Appreciation
|
Location
|
Depreciation
|
||||||
Forward
|
Unrealized
|
$ | 11,372 |
Unrealized
|
$ | 39,226 | ||||
Currency
|
gain on
|
loss on
|
||||||||
Contracts
|
forward
|
forward
|
||||||||
currency
|
currency
|
|||||||||
contracts
|
contracts
|
|||||||||
Call
|
None
|
— |
Investments
|
24,390 | ||||||
Options
|
in securities,
|
|||||||||
Purchased
|
at value
|
|||||||||
Total
|
$ | 11,372 | $ | 63,616 |
|
The effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2010:
|
Location
|
Location
|
Change in
|
||||||||
of
|
of
|
Unrealized
|
||||||||
Realized
|
Realized
|
Unrealized
|
Appreciation
|
|||||||
Gain
|
Gain
|
Gain
|
(Depreciation)
|
|||||||
(Loss) on
|
(Loss) on
|
(Loss) on
|
on
|
|||||||
Derivatives
|
Derivatives
|
Derivatives
|
Derivatives
|
|||||||
Derivative
|
Recognized
|
Recognized
|
Recognized
|
Recognized
|
||||||
Instruments
|
in Income
|
in Income
|
in Income
|
in Income
|
||||||
Forward
|
Net realized
|
$ | (146,919 | ) |
Change in
|
$ | (28,884 | ) | ||
Currency
|
loss on
|
unrealized
|
||||||||
Contracts
|
investments,
|
depreciation
|
||||||||
options and
|
on foreign
|
|||||||||
foreign
|
currency
|
|||||||||
currency
|
translations
|
|||||||||
transactions
|
and forward
|
|||||||||
contracts
|
||||||||||
Call Options
|
(161,371 | ) |
Change in
|
(24,390 | ) | |||||
Purchased
|
unrealized
|
|||||||||
appreciation
|
||||||||||
on investments
|
||||||||||
$ | (308,290 | ) | $ | (53,274 | ) |
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
B.
|
Option Writing. When a Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.
|
C.
|
Foreign Currency Translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions.
|
|
The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
|
|
The Funds report net realized foreign exchange gains or losses that 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 Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
|
D.
|
Federal Income Taxes. Each Fund has elected to be taxed as a “regulated investment company” and intends to distribute substantially all taxable income to its shareholders and otherwise comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no provision for federal income taxes or excise taxes has been made.
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
|
Net capital losses incurred after October 31 and within the taxable year are deemed to arise on the first business day of each Fund’s next taxable year. As of December 31, 2010, the Funds deferred, on a tax basis, post-October losses of $95,172 for Evermore Global Value Fund and $20,119 for Evermore European Value Fund.
|
At December 31, 2010, the Evermore Global Value Fund and the Evermore European Value Fund had capital loss carryforwards available for federal income tax purposes of $68,529 and $56,192, respectively, which expire December 31, 2018.
|
|
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions that are expected to be taken in the Funds’ 2010 tax returns. The Funds identify their major tax jurisdictions as U.S. Federal, New Jersey State and Massachusetts State. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
|
E.
|
Forward Foreign Currency Contracts. Both Funds entered into forward foreign currency contracts as hedges against either specific transactions or fund positions during the year ended December 31, 2010. The aggregate principal amount of the contracts are not recorded because the Funds intend to settle the contracts prior to delivery. Currently all commitments are marked-to-market daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded. The Funds realize gains or losses at the time the forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the period are recognized as ordinary income or loss for federal income tax purposes.
|
|
The use of forward foreign currency contracts does not eliminate fluctuations in the underlying prices of the securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit a potential gain that might result should the value of the currency increase. These contracts involve market risk in excess of the amount reflected in the Funds’ Statements of Assets and Liabilities. The face or contract amount in U.S. dollars reflects the total exposure the Funds have in that particular currency contract. In addition, there could be exposure
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
|
to risks (limited to the amount of unrealized gains) if the counterparties to the contracts are unable to meet the terms of their contracts.
|
F.
|
Security Transactions and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales of securities are determined on a specific identification basis. Discounts/premiums on debt securities purchased are accreted/ amortized over the life of the respective securities using the effective interest method. Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon as the information becomes available to the Funds. Interest income is recorded on an accrual basis. Other non-cash dividends are recognized as investment income at the fair value of property received. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.
|
G.
|
Distributions to Shareholders. Distributions to shareholders from net investment income and net realized gains, if any, on securities for the Funds normally are declared and paid on at least an annual basis. Distributions are recorded on the ex-dividend date.
|
H.
|
Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates.
|
I.
|
Share Valuation. The NAV per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for the Funds, rounded to the nearest cent. The Funds’ shares will not be priced on the days on which the NYSE is closed for trading. Class A shares are sold with a front-end sales charge of 5.00%. Purchases greater than $1 million into the Funds are offered at net asset value and subject to a 0.75% contingent deferred sales charge (“CDSC”) if redeemed within 12 months. For Class C shares, a 1.00% CDSC applies to the lesser of the amount invested or the redemption value of Class C shares redeemed within 12 months after purchase. For Class I shares, the offering and redemption price per share for each Fund is equal to each Fund’s net asset value per share. The Funds charge a 2.00% redemption fee on shares held less than 30 days. These fees are deducted from the redemption proceeds otherwise payable to
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
|
the shareholder. Both Funds will retain the fee charged as paid-in-capital and such fees become part of the Funds’ daily NAV calculation.
|
J.
|
Illiquid and Restricted Securities. A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the Fund. Illiquid securities may be valued under methods approved by the Funds’ Board of Trustees as reflecting fair value. The Funds may invest in restricted securities that may not trade publicly. Restricted securities may be illiquid and more difficult to sell depending on conditions. Each Fund intends to invest no more than 15% of its net assets in illiquid and restricted securities.
|
Evermore Global Value Fund
|
|||||
Illiquid Securities as of December 31, 2010
|
|||||
Security
|
Acquisition Date
|
Cost
|
|||
Promotora de Informaciones
|
|||||
SA - Call Option
|
7/22/2010
|
$ | 53,601 | ||
Retail Holdings NV
|
9/8/2010-11/24/2010
|
914,833 | |||
SeaCo Ltd.
|
9/10/2010-10/27/2010
|
1,264,521 | |||
Total
|
$ | 2,232,955 | |||
Restricted Security as of December 31, 2010
|
|||||
Security
|
Acquisition Date
|
Cost
|
|||
American International
|
|||||
Group, Inc. - Bond
|
7/1/2010-9/23/2010
|
$ | 1,950,994 | ||
Evermore European Value Fund
|
|||||
Illiquid Security as of December 31, 2010
|
|||||
Security
|
Acquisition Date
|
Cost
|
|||
Promotora de Informaciones
|
|||||
SA - Call Option
|
7/22/2010
|
$ | 10,050 | ||
Restricted Security as of December 31, 2010
|
|||||
Security
|
Acquisition Date
|
Cost
|
|||
American International
|
|||||
Group, Inc. - Bond
|
7/15/2010-12/7/2010
|
$ | 267,690 |
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
K.
|
Guarantees and Indemnifications. In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.
|
L.
|
Reclassification of Capital Accounts. U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net assets per value per share. For the year ended December 31, 2010, the Evermore Global Value Fund decreased undistributed net investment income by $51,878, decreased accumulated realized loss by $457,651 and decreased paid-in capital by $405,773. Net assets were not affected by the change. For the year ended December 31, 2010, the Evermore European Value Fund increased undistributed net investment income by $19,464, decreased accumulated realized loss by $97,822 and decreased paid-in capital by $117,286. The permanent differences primarily relate to net operating losses, PFIC sales adjustments, foreign currency reclasses and REIT distributions. Net assets were not affected by the change.
|
M.
|
Subsequent Events. In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
|
N.
|
New Accounting Pronouncement. In January 2010, the FASB issued Accounting Standards Update “Improving Disclosures about Fair Value Measurements” (“ASU”). The ASU requires enhanced disclosures about a) transfers into and out of Levels 1 and 2, and b) purchase, sales, issuances, and settlements on a gross basis relating to Level 3 measurements. The first disclosure is effective for the first reporting period beginning after December 15, 2009, and for interim periods within those fiscal years. There were no significant transfers in to or out of Levels 1 and 2 during the current period presented.
|
The second disclosure will become effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact this disclosure may have on the Funds’ financial statements.
|
NOTE 3 –
|
INVESTMENT ADVISORY FEES, SERVICING FEES, AND OTHER
FEES AND EXPENSES
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
Share Class
|
|||
Fund
|
A
|
C
|
I
|
Evermore Global Value Fund
|
1.60%
|
2.35%
|
1.35%
|
Evermore European Value Fund
|
1.60%
|
2.35%
|
1.35%
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
NOTE 4 – PURCHASES AND SALES OF SECURITIES
|
NOTE 5 – DISTRIBUTION TO SHAREHOLDERS
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
Evermore Global
|
Evermore European
|
|||||||
Value Fund
|
Value Fund
|
|||||||
Cost of investments
|
$ | 35,329,780 | $ | 8,049,659 | ||||
Gross tax unrealized appreciation
|
3,343,270 | 587,214 | ||||||
Gross tax unrealized depreciation
|
(1,037,780 | ) | (161,642 | ) | ||||
Net tax unrealized appreciation
|
$ | 2,305,490 | $ | 425,572 | ||||
Undistributed ordinary income
|
$ | — | $ | — | ||||
Undistributed long-term capital gain
|
— | — | ||||||
Total distributable earnings
|
$ | — | $ | — | ||||
Other accumulated losses
|
(90,353 | ) | (62,850 | ) | ||||
Total accumulated gains
|
$ | 2,215,137 | $ | 362,722 |
NOTE 6 – OPTIONS WRITTEN
|
Number of Contracts
|
Premium Amount
|
|||||||
Balance at January 1, 2010
|
— | $ | — | |||||
Opened
|
320 | 142,384 | ||||||
Expired
|
(320 | ) | (142,384 | ) | ||||
Exercised
|
— | — | ||||||
Closed
|
— | — | ||||||
Balance at December 31, 2010
|
— | $ | — |
NOTE 7 – FORWARD CURRENCY CONTRACTS
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
Settlement
|
Contract
|
Fair
|
Net Unrealized
|
|||||||||||
Contracts
|
Date
|
Amount (USD)
|
Value (USD)
|
Gain (Loss) (USD)
|
||||||||||
To Sell:
|
||||||||||||||
2,711,000 DKK
|
3/9/11
|
$ | 483,891 | $ | 485,901 | $ | (2,010 | ) | ||||||
Net Value
|
||||||||||||||
of DKK
|
||||||||||||||
Contracts
|
483,891 | 485,901 | (2,010 | ) | ||||||||||
To Sell:
|
||||||||||||||
4,615,000 EUR
|
3/9/11
|
6,144,256 | 6,165,651 | (21,395 | ) | |||||||||
Net Value
|
||||||||||||||
of EUR
|
||||||||||||||
Contracts
|
6,144,256 | 6,165,651 | (21,395 | ) | ||||||||||
To Sell:
|
||||||||||||||
3,397,300 GBP
|
3/9/11
|
5,348,905 | 5,293,897 | 55,008 | ||||||||||
To Buy:
|
||||||||||||||
442,000 GBP
|
3/9/11
|
(688,216 | ) | (688,754 | ) | 538 | ||||||||
Net Value
|
||||||||||||||
of GBP
|
||||||||||||||
Contracts
|
4,660,689 | 4,605,143 | 55,546 | |||||||||||
To Sell:
|
||||||||||||||
3,672,000 HKD
|
3/9/11
|
473,196 | 472,695 | 501 | ||||||||||
Net Value
|
||||||||||||||
of HKD
|
||||||||||||||
Contracts
|
473,196 | 472,695 | 501 | |||||||||||
To Sell:
|
||||||||||||||
11,642,000 NOK
|
3/9/11
|
1,933,718 | 1,988,462 | (54,744 | ) | |||||||||
Net Value
|
||||||||||||||
of NOK
|
||||||||||||||
Contracts
|
1,933,718 | 1,988,462 | (54,744 | ) | ||||||||||
To Sell:
|
||||||||||||||
8,503,000 SEK
|
3/9/11
|
1,232,676 | 1,261,203 | (28,527 | ) | |||||||||
Net Value
|
||||||||||||||
of SEK
|
||||||||||||||
Contracts
|
1,232,676 | 1,261,203 | (28,527 | ) | ||||||||||
Net Value of
|
||||||||||||||
Outstanding
|
||||||||||||||
Forward
|
||||||||||||||
Currency
|
||||||||||||||
Contracts
|
$ | 14,928,426 | $ | 14,979,055 | $ | (50,629 | ) |
DKK
|
Danish Krone
|
EUR
|
Euro
|
GBP
|
British Pound
|
HKD
|
Hong Kong Dollar
|
NOK
|
Norwegian Krone
|
SEK
|
Swedish Krona
|
NOTES TO FINANCIAL STATEMENTS December 31, 2010, Continued
|
Settlement
|
Contract
|
Fair
|
Net Unrealized
|
|||||||||||
Contracts
|
Date
|
Amount (USD)
|
Value (USD)
|
Gain (Loss) (USD)
|
||||||||||
To Sell:
|
||||||||||||||
1,107,000 DKK
|
3/9/11
|
$ | 197,590 | $ | 198,411 | $ | (821 | ) | ||||||
Net Value
|
||||||||||||||
of DKK
|
||||||||||||||
Contracts
|
197,590 | 198,411 | (821 | ) | ||||||||||
To Sell:
|
||||||||||||||
1,815,300 EUR
|
3/9/11
|
2,411,986 | 2,425,245 | (13,259 | ) | |||||||||
Net Value
|
||||||||||||||
of EUR
|
||||||||||||||
Contracts
|
2,411,986 | 2,425,245 | (13,259 | ) | ||||||||||
To Sell:
|
||||||||||||||
938,500 GBP
|
3/9/11
|
1,473,634 | 1,462,433 | 11,201 | ||||||||||
To Buy:
|
||||||||||||||
141,000 GBP
|
3/9/11
|
(219,544 | ) | (219,715 | ) | 171 | ||||||||
Net Value
|
||||||||||||||
of GBP
|
||||||||||||||
Contracts
|
1,254,090 | 1,242,718 | 11,372 | |||||||||||
To Sell:
|
||||||||||||||
3,581,000 NOK
|
3/9/11
|
595,011 | 611,637 | (16,626 | ) | |||||||||
Net Value
|
||||||||||||||
of NOK
|
||||||||||||||
Contracts
|
595,011 | 611,637 | (16,626 | ) | ||||||||||
To Sell:
|
||||||||||||||
2,740,000 SEK
|
3/9/11
|
397,889 | 406,409 | (8,520 | ) | |||||||||
Net Value
|
||||||||||||||
of SEK
|
||||||||||||||
Contracts
|
397,889 | 406,409 | (8,520 | ) | ||||||||||
Net Value of
|
||||||||||||||
Outstanding
|
||||||||||||||
Forward
|
||||||||||||||
Currency
|
||||||||||||||
Contracts
|
$ | 4,856,566 | $ | 4,884,420 | $ | (27,854 | ) |
DKK
|
Danish Krone
|
EUR
|
Euro
|
GBP
|
British Pound
|
NOK
|
Norwegian Krone
|
SEK
|
Swedish Krona
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
APPROVAL OF INVESTMENT ADVISORY AGREEMENTS (Unaudited)
|
APPROVAL OF INVESTMENT ADVISORY AGREEMENTS (Unaudited), Continued
|
TRUSTEES AND EXECUTIVE OFFICERS
|
Number of
|
|||||
Portfolios
|
|||||
Term of
|
Principal
|
in Fund
|
|||
Position
|
Office and
|
Occupation
|
Complex
|
Other
|
|
Name, Age
|
with the
|
Length of
|
During
|
Overseen
|
Directorships
|
and Address
|
Trust
|
Time Served
|
Past Five Years
|
by Trustees
|
Held
|
Independent Trustees of the Trust
|
|||||
Stephen Apkon
|
Trustee
|
Indefinite
|
Executive Director,
|
2
|
Director
|
(born 1961)
|
Term; Since
|
Jacob Burns Film
|
Jacob Burns
|
||
Jacob Burns
|
November
|
Center
|
Film Center
|
||
Film Center
|
2009.
|
||||
405 Manville Road
|
|||||
Pleasantville, NY 10570
|
|||||
Eugene W. Bebout III
|
Trustee
|
Indefinite
|
Chief Financial and
|
2
|
Director &
|
(born 1959)
|
Term; Since
|
Chief Operating
|
Treasurer,
|
||
33 Hawthorne Place
|
November
|
Officer Herbert L.
|
Summit
|
||
Summit, NJ 07901
|
2009.
|
Jamison & Co. LLC
|
Lacrosse Club,
|
||
an Insurance Agent
|
Audit
|
||||
and Broker
|
Committee
|
||||
Chair, Summit
|
|||||
Area YMCA
|
|||||
William Richter
|
Chairman
|
Indefinite
|
President, Richter
|
2
|
Director,
|
(born 1943)
|
and
|
Term; Since
|
Investment Corp.
|
Cerberus Capital
|
|
Cerberus Capital
|
Trustee
|
November
|
Co-Founder and
|
Management
|
|
Management, L.P.
|
2009.
|
Senior Managing
|
L.P. Director,
|
||
299 Park Avenue
|
Director Cerberus
|
various Cerberus
|
|||
New York, NY 10171
|
Capital Management
|
affiliates.
|
|||
Director &
|
|||||
Chairman Avesis
|
|||||
Inc.
|
TRUSTEES AND EXECUTIVE OFFICERS, Continued
|
Number of
|
|||||
Portfolios
|
|||||
Term of
|
Principal
|
in Fund
|
|||
Position
|
Office and
|
Occupation
|
Complex
|
Other
|
|
Name, Age
|
with the
|
Length of
|
During
|
Overseen
|
Directorships
|
and Address
|
Trust
|
Time Served
|
Past Five Years
|
by Trustees
|
Held
|
Officers of the Trust
|
|||||
Eric LeGoff
|
Trustee
|
Indefinite
|
President, Evermore
|
2
|
Director,
|
(born 1961)
|
Term; Since
|
Global Advisors,
|
Liquidnet
|
||
% Evermore Global
|
November
|
LLC., President,
|
Holdings, Inc.
|
||
Advisors, LLC
|
2009.
|
Hawthorne Associates,
|
Director,
|
||
89 Summit Ave
|
Chief
|
LLC Chief Operating
|
FXCM, Inc.
|
||
3rd Floor
|
Executive
|
Officer, Liquidnet
|
|||
Summit, NJ 07901
|
Officer
|
Holdings, Inc.
|
|||
David Marcus
|
President
|
Indefinite
|
Chief Executive
|
Not
|
Director
|
(born 1965)
|
Term; Since
|
Officer and
|
Applicable.
|
MTG AB
|
|
% Evermore Global
|
November
|
Portfolio Manager
|
|||
Advisors, LLC
|
2009.
|
Evermore Global
|
|||
89 Summit Ave
|
Advisors, LLC.
|
||||
3rd Floor
|
Managing Partner
|
||||
Summit, NJ 07901
|
and Portfolio
|
||||
Manager MarCap
|
|||||
Investors, L.P.
|
|||||
Salvatore DiFranco
|
Chief
|
Indefinite
|
Chief Financial
|
Not
|
Not
|
(born 1942)
|
Financial
|
Term; Since
|
Officer Evermore
|
Applicable.
|
Applicable.
|
% Evermore Global
|
Officer
|
November
|
Global Advisors,
|
||
Advisors, LLC
|
2009.
|
LLC. Chief Financial
|
|||
89 Summit Ave
|
Treasurer
|
Indefinite
|
Officer MarCap
|
||
3rd Floor
|
Term; Since
|
Investors, L.P.
|
|||
Summit, NJ 07901
|
November
|
||||
2009.
|
|||||
Magali Simo
|
Secretary
|
Indefinite
|
Vice President -
|
Not
|
Not
|
(born 1961)
|
Term; Since
|
Investor Services,
|
Applicable.
|
Applicable.
|
|
% Evermore Global
|
November
|
Evermore Global
|
|||
Advisors, LLC
|
2009.
|
Advisors, LLC.
|
|||
89 Summit Ave
|
Investor Relations,
|
||||
3rd Floor
|
MarCap Investors,
|
||||
Summit, NJ 07901
|
L.P.
|
||||
Guy Talarico
|
Chief
|
Indefinite
|
Chief Executive
|
Not
|
Director,
|
(born 1955)
|
Compliance
|
Term; Since
|
Officer Alaric
|
Applicable.
|
Del Rey Global
|
% Alaric Compliance
|
Officer
|
November
|
Compliance Services,
|
Investors, LLC
|
|
Services, LLC
|
2009.
|
LLC
|
|||
150 Broadway
|
Anti-Money
|
Indefinite
|
|||
Suite 302
|
Laundering
|
Term; Since
|
|||
New York, NY 10038
|
Officer
|
November
|
|||
2009.
|
INFORMATION ABOUT PROXY VOTING (Unaudited)
|
INFORMATION ABOUT THE PORTFOLIO HOLDINGS (Unaudited)
|
INFORMATION ABOUT HOUSEHOLDING (Unaudited)
|
PRIVACY NOTICE (Unaudited)
|
Ticker
|
Cusip
|
|
Evermore Global Value Fund
|
||
Class A
|
EVGBX
|
300397106
|
Class C
|
EVGCX
|
300397114
|
Class I
|
EVGIX
|
300397122
|
Evermore European Value Fund
|
||
Class A
|
EVEAX
|
300397130
|
Class C
|
EVECX
|
300397148
|
Class I
|
EVEIX
|
300397155
|
FYE 12/31/2010
|
|
Audit Fees
|
$54,000
|
Audit-Related Fees
|
N/A
|
Tax Fees
|
$16,000
|
All Other Fees
|
N/A
|
FYE 12/31/2010
|
|
Audit-Related Fees
|
0%
|
Tax Fees
|
0%
|
All Other Fees
|
0%
|
Non-Audit Related Fees
|
FYE 12/31/2010
|
Registrant
|
N/A
|
Registrant’s Investment Adviser
|
N/A
|
(a)
|
The Registrant’s Chief Executive Officer and Chief Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
|
(a)
|
(1) Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Filed herewith.
|
(b)
|
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.
|
·
|
Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
|
·
|
Full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the SEC and in other public communications made by the Trust;
|
·
|
Compliance with applicable laws and governmental rules and regulations;
|
·
|
The prompt internal report of violations of the Doe to and appropriate person or persons identified in the Code; and
|
·
|
Accountability for adherence to the Code.
|
·
|
not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Trust whereby the Covered Officer would benefit personally to the detriment of the Trust;
|
·
|
not cause the Trust to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Trust:
|
·
|
not use material non-public knowledge of portfolio transactions made or contemplated for the Trust to trade personally or cause others to trade personally in contemplation of the market effect of such transactions; and
|
·
|
report at least annually the information elicited in the Trust’s Director and Officer Questionnaire relating to potential conflicts of interest.
|
·
|
service as a director on the board of any public or private company, other than a management investment company;
|
·
|
the receipt of any non-nominal gifts from someone or a company that has current or prospective business dealings with the Trust;
|
·
|
the receipt of any entertainment from any company with which the Trust has current of prospective business dealings unless such entertainment is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;
|
·
|
any ownership interest in, or any consulting or employment relationship with, any of the Trust’s service providers, other than EGA or any affiliated person thereof; and
|
·
|
a direct or indirect financial interest in commissions, transaction charges or spread paid by the Trust for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer’s employment, such as compensation or equity ownership.
|
·
|
must familiarize himself or herself with the disclosure requirements generally applicable to the Trust;
|
·
|
may not knowingly misrepresent, or cause others to misrepresent, fact about the Trust to others whether within or outside the Trust, including to the Board and auditors, governmental regulators or self-regulatory organizations;
|
·
|
must, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Trust, EGA, and other service providers, with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Trust files with, or submits to, the SEC and in other public communications made by the Trust; and
|
·
|
has the responsibility to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.
|
·
|
upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing (in the form attached hereto as Exhibit B) to the Board that he or she has received, read, and understands the Code;
|
·
|
annually thereafter affirm (in the form attached hereto as Exhibit B) to the Board that he or she has complied with the requirements of the Code:
|
·
|
not retaliate against any other Covered Officer or any employee or agent of an affiliated person of the Trust for reports of potential violations that are made in good faith; and
|
·
|
notify the Trust’s Audit Committee promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of this Code.
|
·
|
The Audit Committee will take all appropriate action to investigate any potential violations reported to the Audit Committee;
|
·
|
if, after such investigation, the Audit Committee believes that no violation has occurred, the Audit Committee is not required to take any further actions;
|
·
|
any matter that the Audit Committee believes is a material violation will be promptly reported to the Board. The Trustees shall take such actions as they consider appropriate, including imposition of any sanction against himself or herself.
|
·
|
the Audit Committee will be responsible for granting waivers, as appropriate; and
|
·
|
any amendments to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.
|
1.
|
I have reviewed this report on Form N-CSR of Evermore Funds Trust;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: March 10, 2011
|
/s/Eric LeGoff
Eric LeGoff
Chief Executive Officer
|
1.
|
I have reviewed this report on Form N-CSR of Evermore Funds Trust;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: March 10, 2011
|
/s/Salvatore DiFranco
Salvatore DiFranco
Chief Financial Officer
|
/s/Eric LeGoff
Eric LeGoff
Chief Executive Officer,
Evermore Funds Trust
|
/s/Salvatore DiFranco
Salvatore DiFranco
Chief Financial Officer,
Evermore Funds Trust
|
Dated: March 10, 2011
|
Dated: March 10, 2011
|
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