Item 1.
|
REPORT TO STOCKHOLDERS.
|
Statements in this Semi-Annual Report that reflect projections or expectations of future financial or economic performance of the Aspiration Flagship Fund ("Fund") and of the market in general and statements of the Fund's plans and objectives for future operations are forward-looking statements. No assurance can be given that actual results or events will not differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include, without limitation, general economic conditions such as inflation, recession and interest rates. Past performance is not a guarantee of future results.
An investment in the Fund is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Fund will be successful in meeting its investment objective. Investment in the Fund is also subject to the following risks: correlation risk, investment company risk, allocation risk, underlying fund concentration, leveraging, foreign investing and emerging markets risk, convertible securities risk, business development (BDC) risk, high yield risk, liquidity risk, market risk, short sale risk, commodities risk, ETFs, distressed companies risk, alternative asset class risk, long/short selling risk, arbitrage risk, derivatives risk, futures risk, natural resources risk, equity securities, bonds and other fixed income securities, management risk, and new fund risk. More information about these risks and other risks can be found in the Fund's prospectus.
The performance information quoted in this Semi-Annual Report represents past performance, which is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. An investor may obtain performance data current to the most recent month-end by visiting ncfunds.com.
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available at funds.aspiration.com/aspiration-flagship-fund/ or by calling the Advisor at 800-683-8529. The prospectus should be read carefully before investing.
|
|
Average Annual Total Returns
(Unaudited)
Period ended March 31, 2016
|
Six
Months
|
One Year
|
Since
Inception*
|
Net Expense
Ratio**
|
Gross
Expense
Ratio***
|
Aspiration Flagship Fund –
Without maximum assumed
contribution reduction****
|
0.07%
|
(4.44)%
|
(0.75)%
|
0.50%
|
11.58%
|
Aspiration Flagship Fund –
With maximum assumed
contribution reduction****
|
(1.93)%
|
(6.44)%
|
(2.75)%
|
0.50%
|
11.58%
|
CSLAB Credit Suisse Liquid
Alternative Beta Index
|
(0.99)%
|
(3.59)%
|
0.56%
|
N/A
|
N/A
|
S&P 500 Total Return Index
|
8.49%
|
1.78%
|
9.44%
|
N/A
|
N/A
|
Aspiration Flagship Fund
|
||||||||||
Schedule of Investments
|
||||||||||
(Unaudited)
|
||||||||||
As of March 31, 2016
|
||||||||||
Shares
|
Value (Note 1)
|
|||||||||
EXCHANGE-TRADED PRODUCTS - 25.83%
|
||||||||||
*
|
Credit Suisse X-Links Long/Short Equity ETN
|
5,650
|
$
|
148,058
|
||||||
Horizons S&P 500 Covered Call ETF
|
583
|
25,086
|
||||||||
IndexIQ ETF Trust - IQ Hedge Multi-Strategy Tracker ETF
|
9,618
|
277,191
|
||||||||
IQ Merger Arbitrage ETF
|
7,111
|
205,223
|
||||||||
iShares TIPS Bond ETF
|
1,007
|
115,442
|
||||||||
Reality Shares DIVS ETF
|
12,257
|
282,892
|
||||||||
*
|
WisdomTree Managed Futures Strategy Fund
|
2,511
|
105,136
|
|||||||
Total Exchange-Traded Funds (Cost $1,174,594)
|
1,159,028
|
|||||||||
OPEN-END FUNDS - 64.56%
|
||||||||||
*
|
361 Managed Futures Fund
|
13,440
|
149,719
|
|||||||
Alger Dynamic Opportunities Fund
|
8,309
|
99,038
|
||||||||
AQR Managed Futures Strategy Fund
|
13,870
|
141,750
|
||||||||
BlackRock Strategic Income Opportunities Portfolio
|
22,244
|
214,878
|
||||||||
Boston Partners Global Long/Short Fund
|
9,390
|
99,721
|
||||||||
Boston Partners Long/Short Research Fund
|
9,639
|
142,954
|
||||||||
Diamond Hill Long-Short Fund
|
2,090
|
49,894
|
||||||||
Eaton Vance Hedged Stock Fund
|
12,108
|
99,888
|
||||||||
FPA New Income, Inc.
|
6,346
|
63,523
|
||||||||
*
|
Gabelli Enterprise Mergers and Acquisitions Fund
|
8,237
|
115,814
|
|||||||
Glenmede Secured Options Portfolio
|
14,396
|
167,424
|
||||||||
Guggenheim - Macro Opportunities Fund
|
6,743
|
167,903
|
||||||||
Hancock Horizon Quantitative Long/Short Fund
|
10,163
|
178,063
|
||||||||
Highland Long/Short Healthcare Fund
|
1,645
|
18,832
|
||||||||
Iron Strategic Income Fund
|
8,574
|
88,651
|
||||||||
Ironclad Managed Risk Fund
|
19,618
|
207,555
|
||||||||
John Hancock Funds II - Global Absolute Return Strategies Fund
|
9,042
|
90,778
|
||||||||
Kellner Merger Fund
|
11,802
|
125,456
|
||||||||
Litman Gregory Masters Alternative Strategies Fund
|
25,615
|
280,486
|
||||||||
MainStay Unconstrained Bond Fund
|
8,431
|
71,243
|
||||||||
MFS Global Alternative Strategy Fund
|
24,537
|
247,581
|
||||||||
PIMCO Unconstrained Bond Fund
|
2,905
|
29,598
|
||||||||
The Merger Fund
|
3,015
|
46,464
|
||||||||
Total Open-End Funds (Cost $3,039,497)
|
2,897,213
|
|||||||||
SHORT-TERM INVESTMENT - 7.73%
|
||||||||||
§
|
Fidelity Institutional Money Market Funds - Treasury Portfolio, 0.35%
|
347,198
|
347,198
|
|||||||
Total Short-Term Investment (Cost $347,198)
|
347,198
|
|||||||||
(Continued)
|
Aspiration Flagship Fund
|
|||||||||||
Schedule of Investments - Continued
|
|||||||||||
(Unaudited)
|
|||||||||||
As of March 31, 2016
|
|||||||||||
Value (Note 1)
|
|||||||||||
Total Value of Investments (Cost $4,561,289) - 98.12%
|
$
|
4,403,439
|
|||||||||
Other Assets Less Liabilities - 1.88%
|
84,235
|
||||||||||
NET ASSETS - 100.00%
|
$
|
4,487,674
|
|||||||||
*
|
Non-income producing investment
|
||||||||||
§
|
Represents 7 day effective yield
|
||||||||||
Summary of Investments
|
|||||||||||
% of Net
|
|||||||||||
Assets
|
Value
|
||||||||||
Exchange-Traded Products
|
25.83%
|
1,159,028
|
|||||||||
Open-End Funds
|
64.56%
|
2,897,213
|
|||||||||
Short-Term Investment
|
7.73%
|
347,198
|
|||||||||
Other Assets Less Liabilities
|
1.88%
|
84,235
|
|||||||||
Total
|
100.00%
|
$
|
4,487,674 | ||||||||
See Notes to Financial Statements
|
Aspiration Flagship Fund
|
|||
Statement of Assets and Liabilities
|
|||
(Unaudited)
|
|||
As of March 31, 2016
|
|||
Assets:
|
|||
Investments, at value (cost $4,561,289)
|
$
|
4,403,439
|
|
Receivables:
|
|||
From Advisor
|
22,204
|
||
Fund shares sold
|
24,452
|
||
Dividends
|
3,021
|
||
Prepaid expenses:
|
|||
Registration & filing expenses
|
15,704
|
||
Professional fees
|
10,592
|
||
Insurance fees
|
7,393
|
||
Fund accounting fees
|
2,246
|
||
Operating expenses
|
1,764
|
||
Shareholder fulfillment expenses
|
1,108
|
||
Security pricing fees
|
777
|
||
Custody fees
|
588
|
||
Total assets
|
4,493,288
|
||
Liabilities:
|
|||
Payables:
|
|||
Fund shares repurchased
|
524
|
||
Accrued expenses:
|
|||
Professional fees
|
|||
Trustee fees and meeting expenses
|
1,984
|
||
Compliance fees
|
1,862
|
||
Distribution and service fees - Investor Class Shares
|
1,206
|
||
Administration fees
|
38
|
||
Total liabilities
|
5,614
|
||
Net Assets
|
$
|
4,487,674
|
|
Net Assets Consist of:
|
|||
Paid in Capital
|
$
|
4,681,119
|
|
Undistributed net investment income
|
3,048
|
||
Accumulated net realized loss on investments
|
(38,643)
|
||
Net unrealized depreciation on investments
|
(157,850)
|
||
Total Net Assets
|
$
|
4,487,674
|
|
Shares Outstanding, no par value (unlimited authorized shares)
|
464,929
|
||
Net Asset Value, Maximum Offering Price and Redemption Price Per Share
|
$
|
9.65
|
|
See Notes to Financial Statements
|
Aspiration Flagship Fund
|
|||
Statement of Operations
|
|||
(Unaudited)
|
|||
For the period ended March 31, 2016
|
|||
Investment Income:
|
|||
Dividends
|
$
|
50,720
|
|
Total Investment Income
|
50,720
|
||
Expenses:
|
|||
Compliance fees (note 2)
|
20,999
|
||
Transfer Agent fees (note 2)
|
20,733
|
||
Professional fees
|
20,591
|
||
Registration and filing expenses
|
18,018
|
||
Fund accounting fees (note 2)
|
13,713
|
||
Administration fees (note 2)
|
12,000
|
||
Insurance fees
|
7,393
|
||
Trustee fees and meeting expenses
|
6,985
|
||
Shareholder fulfillment expenses
|
6,250
|
||
Distribution and service fees - Investor Class Shares (note 3)
|
5,321
|
||
Custody expenses and banking fees (note 2)
|
4,213
|
||
Other operating expenses
|
2,999
|
||
Securities pricing fees
|
900
|
||
Total Expenses
|
140,115
|
||
Expenses reimbursed by advisor (note 2)
|
(129,472)
|
||
Net Expenses
|
10,643
|
||
Net Investment Income
|
40,077
|
||
Realized and Unrealized Loss on Investments
|
|||
Net realized loss from investment transactions
|
(14,137)
|
||
Net change in unrealized depreciation on investments
|
(14,605)
|
||
Net Realized and Unrealized Loss on Investments
|
(28,742)
|
||
Net Increase in Net Assets Resulting from Operations
|
$
|
11,335
|
|
See Notes to Financial Statements
|
Aspiration Flagship Fund
|
||||||||||
Statements of Changes in Net Assets
|
||||||||||
March 31,
|
September 30,
|
|||||||||
For the periods ended
|
2016 (a)
|
2015 (b)
|
||||||||
Operations:
|
||||||||||
Net investment income |
$
|
40,077
|
$
|
21,632
|
||||||
Net realized loss from investment transactions |
(14,137)
|
(24,506)
|
||||||||
Net change in unrealized depreciation on investments |
(14,605)
|
(143,245)
|
||||||||
Increase (Decrease) in Net Assets Resulting from Operations
|
11,335
|
(146,119)
|
||||||||
Distributions to Shareholders (note 4):
|
||||||||||
Net investment income
|
(44,574)
|
(14,087)
|
||||||||
Decrease in Net Assets Resulting from Distributions
|
(44,574)
|
(14,087)
|
||||||||
Beneficial Interest Transactions:
|
||||||||||
Shares sold
|
1,838,082
|
5,451,496
|
||||||||
Reinvested dividends and distributions
|
44,476
|
14,087
|
||||||||
Shares repurchased
|
(1,522,770)
|
(1,244,252)
|
||||||||
Net Increase in Beneficial Interest Transactions
|
359,788
|
4,221,331
|
||||||||
Net Increase in Net Assets
|
326,549
|
4,061,125
|
||||||||
Net Assets:
|
||||||||||
Beginning of period
|
4,161,125
|
100,000
|
||||||||
End of period
|
$
|
4,487,674
|
$
|
4,161,125
|
||||||
Undistributed Net Investment Income
|
$
|
3,048
|
$
|
7,545
|
||||||
Share Information:
|
||||||||||
Shares Sold |
189,067
|
537,653
|
||||||||
Reinvested Distributions |
4,585
|
1,400
|
||||||||
Shares repurchased |
(155,380)
|
(122,396)
|
||||||||
Net Increase in Shares of Beneficial Interest |
38,272
|
416,657
|
||||||||
(a)
|
Unaudited.
|
|||||||||
(b)
|
For the period from October 14, 2014 (Date of Initial Public Investment) through September 30, 2015.
|
|||||||||
See Notes to Financial Statements
|
Aspiration Flagship Fund
|
|||||||||
Financial Highlights
|
|||||||||
For a share outstanding during
|
March 31,
|
September 30,
|
|||||||
each of the periods ended
|
2016
|
(g)
|
2015
|
(h)
|
|||||
Net Asset Value, Beginning of Period
|
$
|
9.75
|
$
|
10.00
|
|||||
Income from Investment Operations
|
|||||||||
Net investment income
|
0.12
|
0.16
|
|||||||
Net realized and unrealized loss on investments
|
(0.11)
|
(0.27)
|
|||||||
Total from Investment Operations
|
0.01
|
(0.11)
|
|||||||
Less Distributions to Shareholders:
|
|||||||||
Net investment income
|
(0.11)
|
(0.14)
|
|||||||
Total Distributions
|
(0.11)
|
(0.14)
|
|||||||
Net Asset Value, End of Period
|
$
|
9.65
|
$
|
9.75
|
|||||
Total Return (b)(e)
|
0.07%
|
(3.21)%
|
|||||||
Total Return (b)(f)
|
2.07%
|
(1.21)%
|
|||||||
Net Assets, End of Period (in thousands)
|
$
|
4,488
|
$
|
4,161
|
|||||
Ratios of:
|
|||||||||
Gross Expenses to Average Net Assets (c)
|
6.56%
|
(a)
|
19.23%
|
(a)
|
|||||
Net Expenses to Average Net Assets (c)
|
0.50%
|
(a)
|
0.50%
|
(a)
|
|||||
Net Investment Income to Average Net Assets (c)(d)
|
1.98%
|
(a)
|
0.95%
|
(a)
|
|||||
Portfolio turnover rate
|
24.72%
|
(b)
|
67.24%
|
(b)
|
|||||
(a)
|
Annualized
|
||||||||
(b)
|
Not annualized.
|
||||||||
(c)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||
(d)
|
Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||
(e)
|
Performance with maximum assumed contribution reduction of 2%. Contribution reduction assumes a maximum 2% management fee.
|
||||||||
(f)
|
Performance without maximum assumed contribution reduction of 2%.
|
||||||||
(g)
|
Unaudited.
|
||||||||
(h)
|
For the period from October 14, 2014 (Date of Initial Public Investment) through September 30, 2015.
|
||||||||
See Notes to Financial Statements
|
1.
|
Organization and Significant Accounting Policies
|
Aspiration Flagship Fund
|
||||||||
Investments in Securities (a)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Assets
|
||||||||
Exchange-Traded Products
|
$
|
1,159,028
|
$
|
1,159,028
|
$
|
-
|
$
|
-
|
Open-End Funds
|
2,897,213
|
2,897,213
|
-
|
-
|
||||
Short-Term Investment
|
347,198
|
347,198
|
-
|
-
|
||||
Total Assets
|
$
|
4,403,439
|
$
|
4,403,439
|
$
|
-
|
$
|
-
|
(a)
|
The Fund had no transfers into or out of Level 1, 2, or 3 during the period ended March 31, 2016. It is the Fund's policy to record transfers at the end of the period.
|
2.
|
Transactions with Related Parties and Service Providers
|
3.
|
Distribution and Service Fees
|
4.
|
Purchases and Sales of Investment Securities
|
Purchases of Securities
|
Proceeds from Sales of Securities
|
$1,521,831
|
$966,897
|
5.
|
Federal Income Tax
|
March 31, 2016
|
September 30, 2015 | |
Ordinary Income
|
$ 44,574 | $ 14,087 |
Cost of Investments
|
$
|
4,561,289 | |||||
Unrealized Appreciation
|
$
|
8,635 | |||||
Unrealized Depreciation
|
(166,485)
|
||||||
Net Unrealized Depreciation
|
$
|
(157,850) | |||||
6.
|
Beneficial Ownership
|
7.
|
Commitments and Contingencies
|
8.
|
Subsequent Events
|
1.
|
Proxy Voting Policies and Voting Record
|
2.
|
Quarterly Portfolio Holdings
|
3.
|
Tax Information
|
4.
|
Schedule of Shareholder Expenses
|
Investor Class Shares
|
Beginning
Account Value
October 1, 2015
|
Ending
Account Value
March 31, 2016
|
Expenses Paid
During Period*
|
Actual
Hypothetical (5% annual return before expenses)
|
|||
$1,000.00
|
$1,000.70
|
$2.50
|
|
$1,000.00
|
$1,022.50
|
$2.53
|
For Shareholder Service Inquiries:
|
For Investment Advisor Inquiries:
|
|
|
Nottingham Shareholder Services, LLC
|
Aspiration Fund Adviser, LLC
|
116 South Franklin Street
|
4640 Admiralty Way
|
Post Office Box 69
|
Marina Del Rey, CA 90292
|
Rocky Mount, North Carolina 27802-0069
|
|
|
|
Telephone:
|
Telephone:
|
|
|
800-773-3863
|
800-683-8529
|
World Wide Web @: | World Wide Web @: |
ncfunds.com | aspiration.com |
Item 2.
|
CODE OF ETHICS.
|
Item 3.
|
AUDIT COMMITTEE FINANCIAL EXPERT.
|
Item 4.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
|
Item 5.
|
AUDIT COMMITTEE OF LISTED REGISTRANTS.
|
Item 6.
|
SCHEDULE OF INVESTMENTS.
|
Item 7.
|
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
Item 8.
|
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
Item 9.
|
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
|
Item 10.
|
SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS.
|
Item 11.
|
CONTROLS AND PROCEDURES.
|
(a) | The Principal Executive Officer and the Principal Financial Officer have concluded that the registrant's disclosure controls and procedures are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing of this report. |
(b) | There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 12.
|
EXHIBITS.
|
(a)(1)
|
Not applicable.
|
(a)(2)
|
Certifications required by Item 12.(a)(2) of Form N-CSR are filed herewith as Exhibit 12.(a)(2).
|
(a)(3)
|
Not applicable.
|
(b)
|
Certifications required by Item 12.(b) of Form N-CSR are filed herewith as Exhibit 12.(b).
|
By: (Signature and Title)
|
/s/ Andrei Cherny
|
Date: June 9, 2016
|
Andrei Cherny
President and Principal Executive Officer
Aspiration Funds
|
By: (Signature and Title)
|
/s/ Andrei Cherny
|
Date: June 9, 2016
|
Andrei Cherny
President and Principal Executive Officer
Aspiration Funds
|
By: (Signature and Title)
|
/s/ Ashley E. Harris
|
Date: May 31, 2016
|
Ashley E. Harris
Treasurer and Principal Financial Officer
Aspiration Funds
|
Date: June 9, 2016
|
/s/ Andrei Cherny
|
Andrei Cherny
President and Principal Executive Officer
Aspiration Funds
|
Date: May 31, 2016
|
/s/ Ashley E. Harris
|
Ashley E. Harris
Treasurer and Principal Financial Officer
Aspiration Funds
|
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Funds. |
Date: June 9, 2016
|
By:
|
/s/ Andrei Cherny
|
Andrei Cherny
President and Principal Executive Officer
Aspiration Funds
|
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Funds. |
Date: May 31, 2016
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By:
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/s/ Ashley E. Harris
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Ashley E. Harris
Treasurer and Principal Financial Officer
Aspiration Funds
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