N-CSR Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-22981

AVONDALE FUNDS

(Exact name of registrant as specified in charter)

c/o Avondale Investment Company, LLC

2001 Santa Monica Blvd., Suite 1165W

Santa Monica, CA 90404

(Address of principal executive offices)(Zip code)

Copies to:

c/o Avondale Investment Company, LLC

2001 Santa Monica Blvd., Suite 1165W

Santa Monica, CA 90404

Law Office of C. Richard Ropka, LLC

215 Fries Mill Road

Turnersville, NJ 08012

(856) 374-1744

(Name and address of agent for service)

Registrant's telephone number, including area code: (310) 779-7383

Date of fiscal year end: October 31

Date of reporting period: October 31, 2016

Item 1. Reports to Stockholders.

ANNUAL REPORT

AVONDALE CORE

INVESTMENT FUND

Ticker: (COREX)

October 31, 2016

This Page Was Left Blank Intentionally

AVONDALE CORE INVESTMENT FUND

SHAREHOLDER LETTER

OCTOBER 31, 2016 (UNAUDITED)

Dear Shareholders,

I should probably start this year’s letter by addressing the elephant in the room: our fund holds almost all of its capital in cash equivalents. I’d like to use this letter to help explain why. The short reason is that we believe that this is the best course of action to maximize the long term returns of our shareholders. The longer reason is that we continue to operate in an extreme environment in which real interest rates are negative.

Financial assets around the world are trading at values that have rarely been seen in history. Prices do not reflect the fundamental earnings power of companies. Equity values primarily reflect ultra-low interest rates, which are being set by government policy.

We adamantly believe that if these policies were not in place then equity values would be significantly lower than their current levels, perhaps by as much as 40%. That’s because interest rates are far below normal levels. If interest rates were raised purely to meet the current rate of inflation they would be ~200 basis points higher than where they currently sit. If they rose to historical norms they could increase by 300-400 basis points. Such increases in interest rates would lead to a widespread repricing of global financial assets.

The average high quality company that we analyze currently sells for 20-25x earnings, or a 4-5% earnings yield. If interest rates were to rise to 2%, we would expect earnings yields to rise to 6-7%, and if they rose to 4% we would expect those yields to rise to 8-9%. The 6-7% level corresponds with a PE multiple of 14-16x earnings. The 8-9% level corresponds with a PE multiple of 11-13x earnings. A drop from 20x to 11x works out to a 45% decline in price if you hold earnings constant.

This is not a unique insight, it’s just arithmetic. If interest rates are raised even a little bit, stock prices are likely to fall significantly. This is why most investors are obsessed with the Federal Reserve and when it will raise interest rates. We wish that we had the answer to that question, but unfortunately, we don’t. However, we do know that the Fed does have to raise interest rates eventually.

The important thing to remember is that these low interest rates are not a natural occurrence, they are the result of a policy decision and that policy decision can change at any time. Most of our colleagues are operating as if these rates will stay in place forever. We strongly believe the opposite. The government’s policy will not stay in place primarily because it doesn’t work. In a democracy, the voters make the ultimate determination. Case in point, in 2016 the voters chose to elect a radically different regime, which may fundamentally restructure current economic policy, including interest rates.

It’s not a sure thing that this new President will change course, but it is a strong likelihood. And either way, if it’s not Trump that places new theorists at the top of the Fed it will be the next President or the one thereafter. The longer that the economy goes

AVONDALE CORE INVESTMENT FUND

SHAREHOLDER LETTER (CONTINUED)

OCTOBER 31, 2016 (UNAUDITED)

with lackluster performance, the more agitated the electorate becomes and the more it seeks change.

There are other feedback mechanisms that ensure change will come too. The longer that policies don’t work, the more likely that the theorists themselves will seek out new solutions. And if that fails, generational change is the ultimate certainty. Father time will always keep marching and new stakeholders will take control of the economy. Those stakeholders will enact policies which benefit them. Millennials stand to benefit massively if asset prices are allowed to decline.

When we weigh these factors, we continue to believe that time is on our side and that eventually we will be able to purchase assets at spectacular bargains purely because we were patient when other investors weren’t. This is why we believe that the best strategy is to wait for the environment to change. Cash will be the way to take advantage when that eventually comes.

Unfortunately, our strategy led to disappointing reported performance in 2016. But even though market indexes didn’t go our way the fundamentals did. Major political change took place in the United States and Europe and the Federal Reserve is under increasing pressure to raise interest rates. Meanwhile valuations remain near historic highs. We can’t control the markets, but we know that eventually the fundamentals matter. When prices fall to match fundamentals we will be prepared to act.

Sincerely,

Scott Krisiloff

AVONDALE CORE INVESTMENT FUND

PERFORMANCE ILLUSTRATION

OCTOBER 31, 2016 (UNAUDITED)

AVERAGE ANNUALIZED TOTAL RETURNS FOR THE PERIOD

SINCE INCEPTION THROUGH OCTOBER 31, 2016


	One Year	Since Inception *	Ending Value
Avondale Core Investment Fund	-1.41%	-1.12%	$ 9,780
Morningstar Moderate Target Risk TR USD Index	4.67%	2.38%	$ 10,475

Cumulative Performance Comparison of $10,000 Investment Since Inception *

[avondaleannual002.gif]

* Date of commencement of investment operations (November 10, 2014).

This chart assumes an initial investment of $10,000 made on the closing of November 10, 2014 (commencement of investment operations). Total return is based on the net change in NAV and assuming reinvestment of all dividends and other distributions. Investment return and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The performance also reflects reinvestment of all dividend and capital gain distributions. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. Performance data current to the most recent month-end may be obtained by calling (800) 564-3899.

The Morningstar Target Risk Index family is designed to meet the needs of investors who would like to maintain a target level of equity exposure through a portfolio diversified across equities, bonds and inflation-hedged instruments. The Morningstar Moderate Target Risk Index seeks approximately 60% exposure to global equity markets.

The performance information shown represents past performance and should not be interpreted as indicative of the Fund's future performance.

AVONDALE CORE INVESTMENT FUND

PORTFOLIO ILLUSTRATION

OCTOBER 31, 2016 (UNAUDITED)

The following chart gives a visual breakdown of the Fund by the sector classification of the underlying securities represented as a percentage of the portfolio of investments.

[avondaleannual004.gif]

Sectors are categorized using Morningstar^® classifications.

AVONDALE CORE INVESTMENT FUND

SCHEDULE OF INVESTMENTS

OCTOBER 31, 2016


Shares		Value

COMMON STOCKS - 2.77%

Computer & Office Equipment - 0.36%
20	International Business Machines Corp.	$ 3,074

Crude Petroleum & Natural Gas - 0.14%
20	Apache Corp.	1,190

Deep Sea Foreign Transportation - 0.15%
500	Diana Shipping, Inc. (Greece) *	1,250

National Commercial Banks - 1.68%
200	Bank of America Corp.	3,300
50	Capital One Financial Corp.	3,702
50	Cullen/Frost Bankers, Inc.	3,799
50	JP Morgan Chase & Co.	3,463
		14,264
Radio Telephone Communications - 0.44%
75	T-Mobile US, Inc. *	3,730

TOTAL FOR COMMON STOCKS (Cost $24,534) - 2.77%		23,508

MONEY MARKET FUND - 94.48%
803,745	Fidelity Institutional Money Market Fund, Class II 0.30% **	803,745
TOTAL FOR MONEY MARKET FUND (Cost $803,745) - 94.48%		803,745

TOTAL INVESTMENTS (Cost $828,279) - 97.25%		827,253

OTHER ASSETS LESS LIABILITIES, NET - 2.75%		23,417

NET ASSETS - 100.00%		$ 850,670

Above percentages are calculated as a percentage of net assets.

* Non-income producing securities during the period.

** Variable rate security; the money market rate shown represents the yield at October 31, 2016.

The accompanying notes are an integral part of these financial statements.

AVONDALE CORE INVESTMENT FUND

STATEMENT OF ASSETS AND LIABILITIES

OCTOBER 31, 2016


Assets:
Investments in Securities, at Value (Cost $828,279)		$ 827,253
Cash		27,350
Receivables:
Dividends and Interest		166
Total Assets		854,769
Liabilities:
Due to Adviser		4,099
Total Liabilities		4,099

Net Assets		$ 850,670

Net Assets Consist of:
Paid In Capital		$ 855,895
Accumulated Net Investment Loss		(4,199)
Unrealized Depreciation in Value of Investments		(1,026)
Net Assets, for 87,012 Shares Outstanding		$ 850,670

Net Asset Value Per Share		$ 9.78

Short-Term Redemption Price Per Share ($9.78 x 0.99) *		$ 9.68

* The Fund will impose a 1.00% redemption fee on shares redeemed within 90 days of purchase.

The accompanying notes are an integral part of these financial statements.

AVONDALE CORE INVESTMENT FUND

STATEMENT OF OPERATIONS

FOR THE YEAR ENDED OCTOBER 31, 2016


Investment Income:
Dividends		$ 452
Interest		1,197
Total Investment Income		1,649

Expenses:
Advisory Fees		8,119
Total Expenses		8,119
Fees Waived by the Adviser		(1,894)
Net Expenses		6,225

Net Investment Loss		(4,576)

Realized and Unrealized Gain (Loss) on Investments:
Realized Gain on Investments		-
Net Change in Unrealized Depreciation on Investments		(169)
Realized and Unrealized Loss on Investments		(169)

Net Decrease in Net Assets Resulting from Operations		$ (4,745)

The accompanying notes are an integral part of these financial statements.

AVONDALE CORE INVESTMENT FUND

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended	Period Ended _(a)
	10/31/2016	10/31/2015
Net Decrease in Net Assets Resulting From Operations:
Net Investment Loss	$ (4,576)	$ (1,755)
Net Realized Gain on Investments	-	-
Net Change in Unrealized Depreciation on Investments	(169)	(857)
Net Decrease in Net Assets Resulting from Operations	(4,745)	(2,612)

Capital Share Transactions	613,748	135,279

Total Increase in Net Assets	609,003	132,667

Net Assets:
Beginning of Year/Period	241,667	109,000

End of Year/Period (Including Undistributed Net Investment Loss of $(4,199) and $(1,580), respectively)	$ 850,670	$ 241,667

(a) For the period November 10, 2014 (commencement of investment operations) through October 31, 2015.

The accompanying notes are an integral part of these financial statements.

AVONDALE CORE INVESTMENT FUND

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding throughout the period.


	Year Ended	Period Ended _(a)
	10/31/2016	10/31/2015

Net Asset Value, at Beginning of Year/Period	$ 9.92	$ 10.00

Income From Investment Operations:
Net Investment Loss *	(0.08)	(0.08)
Net Loss on Investments (Realized and Unrealized)	(0.06)	-
Total from Investment Operations	(0.14)	(0.08)

Proceeds from Redemption Fees _(d)	-	-

Net Asset Value, at End of Year/Period	$ 9.78	$ 9.92

Total Return **	(1.41)%	(0.80)%_(b)

Ratios/Supplemental Data:
Net Assets at End of Year/Period (Thousands)	$ 851	$ 242
Ratio of Expenses to Average Net Assets
Before Waivers	1.50%	1.50% _(c)
After Waivers	1.15%	1.15% _(c)
Ratio of Net Investment Loss to Average Net Assets
Before Waivers	(1.19)%	(1.30)%_(c)
After Waivers	(0.84)%	(0.95)%_(c)
Portfolio Turnover	0.00%	0.00% _(b)

* Per share net investment loss has been determined on the basis of average shares outstanding during the period.

** Assumes reinvestment of dividends.

(a) For the period November 10, 2014 (commencement of investment operations) through October 31, 2015.

(b) Not Annualized.

(d) The Fund will impose a 1.00% redemption fee on shares redeemed within 90 days of purchase.

The accompanying notes are an integral part of these financial statements.

AVONDALE CORE INVESTMENT FUND

NOTES TO FINANCIAL STATEMENTS

OCTOBER 31, 2016

Note 1. Organization

The Avondale Funds (the “Trust”), an Ohio business trust, is registered under the Investment Company Act of 1940, as amended (the "1940 Act") as an open-end management investment company. The Trust was formed by an Agreement and Declaration of Trust on July 10, 2014. The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Trust currently consists of the Avondale Core Investment Fund (the "Fund"), a non-diversified fund whose investment objective is to seek long-term capital appreciation while utilizing asset allocation techniques to help preserve principal value. The Fund commenced operations on November 10, 2014. There are currently no other series in the Trust. The Adviser of the Fund is the Avondale Investment Company, LLC (“Adviser”).

Note 2. Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. The Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.

Security Valuation: All investments in securities are recorded at their estimated fair value according to the procedures described in Note 3.

Foreign currency: 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 Fund does 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.

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the 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.

Federal Income Taxes: The Fund’s policy is to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute all its taxable income to its shareholders. The Company also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and capital gains. Therefore, no federal income tax provision is required.

AVONDALE CORE INVESTMENT FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

OCTOBER 31, 2016

In addition, Generally Accepted Accounting Principles (“GAAP”) requires management of the Fund to analyze all open tax years, fiscal years 2015 (inception) -2016, as defined by IRS statute of limitations for all major industries, including federal tax authorities and certain state tax authorities. As of and during the year ended October 31, 2016, the Fund did not have a liability for any unrecognized tax benefits. The Fund has no examination in progress and is not aware of any tax positions for which it is reasonably possible that the total tax amounts of unrecognized tax benefits will significantly change in the next twelve months.

Distributions to Shareholders: The Fund intends to distribute to its shareholders substantially all of its net realized capital gains and net investment income, if any, at year-end. Distributions will be recorded on ex-dividend date.

Other: The Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

Redemption Fees: The Board of Trustees has adopted a redemption policy to discourage short term traders and/or market timers from investing in the Fund. A 1.00% short-term redemption fee will be assessed by the Fund against investment proceeds withdrawn within 90 calendar days of investment. Fund shares received from reinvested distributions or capital gains are not subject to the redemption fee. After excluding any shares that are associated with reinvested distributions from the redemption fee calculation, the Fund uses a “first-in, first-out” method to determine the 30-day holding period. During the year ended October 31, 2016, the Fund did not collect any redemption fees.

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

Underlying Fund Risk: The Fund may invest in money market funds and short term high quality debt securities such as commercial paper, repurchase agreements and certificates of deposit. Money market funds typically invest in short term instruments and attempt to maintain a stable net asset value. While the risk is low, these funds may lose value. At October 31, 2016 the Fund held approximately 94% of net assets in a money market fund. The money market fund the Fund is invested in at October 31, 2016 is Fidelity Institutional Money Market Fund, Class II. Further information on this money market fund is available at www.sec.gov.

AVONDALE CORE INVESTMENT FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

OCTOBER 31, 2016

Reclassifications: In accordance with GAAP, the Fund recorded a permanent book/tax difference of $1,957 from net investment loss to paid-in capital for the year ending October 31, 2016. This reclassification has no impact on the net asset value of the Fund and is designed generally to present undistributed income and paid-in capital on a tax basis, which is considered to be more informative to shareholders.

Note 3. Security Valuations

Processes and Structure

The Fund’s Board of Trustees has adopted guidelines for valuing securities including in circumstances in which market quotes are not readily available and has delegated to the Adviser the responsibility for determining fair value prices, subject to review by the Board of Trustees.

Hierarchy of Fair Value Inputs

The Fund utilizes various methods to measure the fair value of most of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three Levels of inputs are as follows:

Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has 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 that relevant observable inputs are not available, representing the Fund's own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that 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 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

AVONDALE CORE INVESTMENT FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

OCTOBER 31, 2016

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.

Fair Value Measurements

A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis follows.

Equity securities (common stocks). Securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary Receipts (“ADR”), financial futures, Exchange Traded Funds, and the movement of the certain indexes of securities based on a statistical analysis of the historical relationship and that are categorized in Level 2. Preferred stock and other equities traded on inactive markets or valued by reference to similar instruments are also categorized in Level 2.

Short term investments. Short term investments are valued using amortized cost, which approximates fair value. These securities will be categorized in Level 1 of the fair value hierarchy.

Investments in open-end mutual funds including money market funds are valued at their closing net asset value each business day and are classified in Level 1 of the fair value hierarchy.

The following table summarizes the inputs used to value each Fund’s assets and liabilities measured at fair value as of October 31, 2016:


	Financial Instruments—Assets
*Categories*	*Level 1*	*Level 2*	*Level 3*	*Fair Value*

Common Stocks	$ 23,508	$ -	$ -	$ 23,508
Money Market Fund	803,745	-	-	803,745
	$ 827,253	$ -	$ -	$ 827,253

The Fund did not hold any Level 3 assets during the year ended October 31, 2016. The Fund did not hold any derivative instruments at any time during the year ended October 31, 2016. There were no significant transfers into or out of Level 1 or Level 2 during the year ended October 31, 2016. It is the Fund's policy to recognize transfers into and out of Levels at the end of the reporting period.

AVONDALE CORE INVESTMENT FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

OCTOBER 31, 2016

Note 4. Fees and Other Transactions with Affiliates

Under the terms of the management agreement (the “Agreement”), the Adviser manages the Fund’s investments subject to approval of the Board of Trustees. As compensation for its management services, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.50% of the average daily net assets of the Fund. The Adviser contractually has agreed to waive its fee and/or reimburse certain Fund operating expenses, but only to the extent necessary so that the Fund’s total operating expenses, excluding brokerage fees and commissions, any 12b-1 fees, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, extraordinary expenses and any indirect expenses (such as fees and expenses of acquired funds), do not exceed, 1.15% of its average daily net assets as to the Fund. The contractual agreement is in effect through March 1, 2017. The waiver or reimbursement by the Adviser is subject to repayment by the Fund within the three fiscal years following the fiscal year in which the particular waiver or expense was incurred; provided that the Fund is able to make the repayment without exceeding the 1.15% as to the Fund’s expense limitation. For the year ended October 31, 2016, the Adviser earned advisory fees of $8,119. For the year ended October 31, 2016, the Adviser waived $1,894 in fees pursuant to the expense limitation agreement. As of October 31, 2016, the Fund owed the Advisor $4,099.

The amounts subject to repayment by the Fund to the Adviser, pursuant to the aforementioned conditions, at October 31, 2016, were as follows:


	Subject to Repayment
Amount	by October 31,
$ 646	2018
$1,894	2019

The Adviser pays all of the operating expenses of the Fund except brokerage fees and commissions, borrowing costs, front-end or contingent deferred loads, taxes, leverage, interest, extraordinary expenses such as litigation and any indirect expenses (such as Fees and Expenses of Acquired Funds), and expenses incurred in connection with any merger or reorganization, borrowing costs (such as interest and dividend expenses on securities sold short); fees and expenses of non-interested person trustees; and expenses incurred pursuant to Rule 12b-1 under the 1940 Act (if any). Accordingly, the Adviser pays all of the operating expenses including the compensation and expenses of any trustees, officers and employees of the Fund and of any other persons rendering any services to the Fund including any sub-adviser; clerical and shareholder service staff salaries; office space and other office expenses; fees and expenses incurred by the Fund in connection with membership in investment company organizations; legal, auditing and accounting expenses; expenses of registering shares under federal and state securities laws; insurance expenses; fees and expenses of the custodian, transfer agent, dividend disbursing agent, shareholder service agent, plan agent, administrator, accounting and pricing services

AVONDALE CORE INVESTMENT FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

OCTOBER 31, 2016

agent and underwriter of the Fund; expenses, including clerical expenses, of issue, sale, redemption or repurchase of shares of the Fund; the cost of preparing and distributing reports and notices to shareholders, the cost of printing or preparing prospectuses and statements of additional information for delivery to the Fund's current and prospective shareholders; the cost of printing or preparing stock certificates or any other documents, statements or reports to shareholders; expenses of shareholders' meetings and proxy solicitations; advertising, promotion and other expenses incurred directly or indirectly in connection with the sale or distribution of the Fund's shares (excluding expenses which the Fund is authorized to pay pursuant to Rule 12b-1 under the 1940 Act); and all other operating expenses not specifically assumed by the Fund. For this purpose, operating expenses do not include indirect expenses, such as expenses incurred by other investment companies in which the Fund may invest. In this regard, it should be noted that most investment companies pay their own operating expenses directly, while the Fund’s expenses, except those specified above, are paid by the investment adviser.

Related Party

Umberto Anastasi is an officer of the Trust, and therefore an interested person. Mr. Anastasi is an employee of Mutual Shareholder Services, LLC (“MSS”). MSS is the transfer agent and fund accountant of the Fund. For the year ended October 31, 2016, MSS earned $12,000. These fees are paid by the Adviser and not by the Fund.

Greg B. Getts is the President and owner of both MSS and Arbor Court Capital, LLC (“Arbor Court”). Arbor Court is the Fund’s distributor. For the year ending October 31, 2016, Arbor Court earned $1,800. These fees are paid by the Adviser and not by the Fund.

Note 5. Distribution (12b-1) Agreement

The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that the Fund will pay the Adviser and/or any registered securities dealer, financial institution or any other person (the “Recipient”) a shareholder servicing fee of up to 0.25% of the average daily net assets of the Fund in connection with the promotion and distribution of Fund shares or the provision of personal services to shareholders, including, but not necessarily limited to, advertising, compensation to underwriters, dealers and selling personnel, the printing and mailing of prospectuses to other than current Fund shareholders, the printing and mailing of sales literature and servicing shareholder accounts (“12b-1 Expenses”). The Fund or Adviser may pay all or a portion of these fees to any Recipient who renders assistance in distributing or promoting the sale of shares, or who provides certain shareholder services, pursuant to a written agreement. The Plan is a compensation plan, which means that compensation is provided regardless of 12b-1 expenses actually incurred. It is anticipated that the Plan will benefit shareholders because an effective sales program typically is necessary in order for the Fund to reach and maintain a sufficient size to achieve efficiently its investment objectives and to realize economies of scale. The Plan is not currently activated and the plan will not be activated through March 1, 2017.

AVONDALE CORE INVESTMENT FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

OCTOBER 31, 2016

Note 6. Capital Share Transactions

The Fund is authorized to issue an unlimited number of shares of separate series with no par value. The total paid-in capital was $855,895 as of October 31, 2016. Transactions in capital for the year ended October 31, 2016, and the period November 10, 2014 (commencement of investment operations) through October 31, 2015 were as follows:


	November 1, 2015 through October 31, 2016		November 10, 2014 (commencement of investment operations) through October 31, 2015

	Shares	Amount	Shares	Amount
Shares sold	70,139	$ 687,000	15,454	$ 155,000
Shares reinvested	-	-	-	-
Redemption Fees	-	-	-	-
Shares redeemed	(7,490)	(73,252)	(1,990)	(19,721)
Net Increase	62,649	$ 613,748	13,464	$ 135,279

On October 27, 2014, 10,900 shares for $109,000 were issued as seed capital and reported in the Fund’s Form 497 filing filed on November 13, 2014.

Note 7. Investment Transactions

For the year ended October 31, 2016, purchases and sales of investment securities other than U.S. Government obligations and short-term investments aggregated $0 and $0, respectively.

Note 8. Tax Matters

The Fund’s distributable earnings on a tax basis are determined only at the end of each fiscal year. As of October 31, 2016, the Fund’s most recent fiscal year-end, the components of distributable earnings on a tax basis were as follows:

Unrealized Depreciation

$(1,026)

Deferral of Post-December Ordinary Loss

(4,199)

Total Distributable Earnings

$(5,225)

Under current tax law, net capital losses realized after October 31st and net ordinary losses incurred after December 31 may be deferred and treated as occurring on the first day of the following fiscal year. The Fund’s carryforward losses, post-October losses and post-December losses are determined only at the end of each fiscal year. As of November 30, 2016, the Fund elected to defer net ordinary losses as indicated in the chart below.

Post-December Losses

Deferred Utilized

$ 4,199 $ 1,957

AVONDALE CORE INVESTMENT FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

OCTOBER 31, 2016

As of October 31, 2016, the tax basis components of unrealized appreciation (depreciation) and cost of investment securities were as follows:


Federal tax cost of investments, including short-term investments	$ 828,279

Gross tax appreciation of investments	$ 2,143
Gross tax depreciation of investments	(3,169)
Net tax depreciation of investments	$ (1,026)

No distributions were paid by the Fund for the year ended October 31, 2016.

No distributions were paid by the Fund for the period November 10, 2014 (commencement of investment operations) through October 31, 2015.

Note 9. Control and Ownership

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the Fund, under section 2 (a) (9) of the Investment Company Act of 1940, as amended. As of October 31, 2016, Charles Schwab & Co. Inc., for the benefit of its customers, owned approximately 80.61% of the Fund.

Note 10. Indemnifications

In the normal course of business, the Fund will enter into contracts that contain general indemnification to other parties. The Fund’s maximum exposure under these contracts is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The Fund expects the risk of loss to be remote.

Note 11. Money Market Fund Concentration

The Fund may invest in money market funds. Money market funds typically invest in short term instruments and attempt to maintain a stable net asset value. While the risk is low, these funds may lose value. At October 31, 2016 the Fund held approximately 94% of net assets in a money market fund.

Note 12. Subsequent Events

Management has evaluated the impact of all subsequent events through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in these financial statements.

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees

of Avondale Core Investment Fund,

a series of Avondale Funds

We have audited the accompanying statement of assets and liabilities of Avondale Core Investment Fund (the “Fund”), a series of Avondale Funds (the “Trust”), including the schedule of investments in securities, as of October 31, 2016 and the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended and for the period from November 10, 2014 (commencement of operations) through October 31, 2015 and the financial highlights for the year then ended and for the period from November 10, 2014 (commencement of operations) through October 31, 2015. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Avondale Core Investment Fund, a series of Avondale Funds, as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for the year then ended and for the period from November 10, 2014 (commencement of operations) through October 31, 2015 and the financial highlights for the year then ended and for the period from November 10, 2014 (commencement of operations) through October 31, 2015, in conformity with accounting principles generally accepted in the United States of America.

Abington, Pennsylvania

December 19, 2016

[avondaleannual005.jpg]

AVONDALE CORE INVESTMENT FUND

EXPENSE ILLUSTRATION

OCTOBER 31, 2016 (UNAUDITED)

Expense Example

As a shareholder of Avondale Core Investment Fund, you incur ongoing costs which typically consist of management fees and transactional costs. This Example does not take into account transactional costs such as redemption fees. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six month period, May 1, 2016 through October 31, 2016.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second line of the table is useful in comparing your ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transactional costs were included where applicable, your costs may be higher.


	Beginning Account Value	Ending Account Value	Expenses Paid During the Period*
	May 1, 2016	October 31, 2016	May 1, 2016 to October 31, 2016

Actual	$1,000.00	$998.98	$5.79
Hypothetical
(5% Annual Return before expenses)	$1,000.00	$1,019.41	$5.85

* Expenses are equal to the Fund's annualized expense ratio of 1.15%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

AVONDALE CORE INVESTMENT FUND

ADDITIONAL INFORMATION

OCTOBER 31, 2016 (UNAUDITED)

Portfolio Holdings – The Fund files a complete schedule of investments with the SEC for the first and third quarter of each fiscal year on Form N-Q. The Fund’s first and third fiscal quarters end on January 31 and July 31. The Form N-Q filing must be made within 60 days of the end of the quarter. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov, or they may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room). You may also obtain copies by calling the Fund at 1-800-564-3899, free of charge.

Proxy Voting - A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, are available without charge upon request by (1) calling the Fund at (800) 564-3899 and (2) from Fund documents filed with the Securities and Exchange Commission ("SEC") on the SEC's website at www.sec.gov. A review of how the Fund voted on company proxies can be obtained at our transfer agent’s website, www.mutualss.com.

Additional Information - The Fund's Statement of Additional Information ("SAI") includes additional information about the trustees and is available, without charge, upon request. You may call toll-free (800) 564-3899 to request a copy of the SAI or to make shareholder inquiries.

Advisory Agreement Renewal – Avondale Investment Company (“AIC” or “Advisor”) is retained to manage the investments of the following series (referred to herein as a “Fund”) of the Avondale Funds (the “Trust”): the Avondale Core Investment Fund (the pursuant to the Management Service Agreement and Expense Limitation Agreement (the “Agreements”) between the Advisor and the Trust with respect to the Fund. At the in-person regular meeting of the Board of Trustees (the “Board”) of the Trust that was held on November 10, 2016, the Independent Trustees, trustees who are not parties to the Agreement or interested persons of any party to the Agreement (the “Independent Trustees”) as such are defined under the Investment Company Act of 1940, after a lengthy discussion of the continuation of the Agreements between AIC and the Trust on behalf of its respective Fund, unanimously approved the renewal of the Agreement for another one year term.

The Board of Trustees in reviewing and approving the renewal of the Agreements were led by the Fund’s legal counsel in a discussion of the information and factors that should be considered by the Board to make an informed decision regarding the approval of the continuation of the Agreement. The discussion surrounded the following material factors: (i) the nature, extent, and quality of the services provided by AIC; (ii) the investment performance of the Fund; (iii) the costs of the services to be provided and profits to be realized by AIC from the relationship with the Fund; (iv) the extent to which economies of scale would be realized if the Fund grow and whether advisory fee levels reflect those economies of scale for the benefit of the Fund’s investors; and (v) AIC’s practices regarding possible conflicts of interest.

AVONDALE CORE INVESTMENT FUND

ADDITIONAL INFORMATION (CONTINUED)

OCTOBER 31, 2016 (UNAUDITED)

In assessing these factors and reaching its decisions, the Independent Trustees took into consideration information furnished for the Board’s review and consideration throughout the year at regular Board meetings, as well as information specifically prepared and/or presented by AIC pursuant to the Board’s request about the annual renewal process. The Board, requested and was provided information and reports relevant to the annual renewal of the Agreement, including: (i) reports regarding the services and organizational support provided to the Fund and its shareholders by AIC; (ii) quarterly assessments of the investment performance of the Fund by personnel of AIC; (iii) commentary on the Fund’s performance; (iv) presentations by the Fund’s portfolio manager of AIC’s investment philosophy, investment strategy, personnel and operations; (v) the Fund and AIC compliance and audit reports; (vi) disclosure information contained in the registration statement of the Trust and the Form ADV of AIC; and (vii) a memorandum from the Fund’s legal counsel, that summarized the fiduciary duties and responsibilities of the Board in reviewing and approving the Agreement, including the material factors and corresponding relevant information that should be considered by the Board in order to make an informed decision. The Board also requested and received materials prepared by AIC (“AIC 15(c) Response”), including, without limitation: (i) documents containing information about AIC; (ii) a description of personnel and the services provided to each Fund; (iii) information on investment advice, performance; (iv) summaries of fund expenses, compliance program, current legal matters, and other general information; (v) comparative expense and performance information for other mutual funds with strategies similar to the Fund; (vi) the effect of the Fund’s size on its performance and expenses; (vii) benefits to be realized by AIC from its relationship with the Fund, and (viii) the Advisor’s practices regarding possible conflicts of interest.

The Independent Trustee did not identify any single piece of information that was most relevant to its consideration to approve the continuation of the Fund’s Management Services Agreement and each Independent Trustee may have afforded different weight to the various factors that are specifically required to be considered for purposes of disclosure in the Fund’s next set of financial statements.

Nature, Extent and Quality of the Services Provided by AIC. In considering the nature, extent, and quality of the services provided by AIC, the Trustees reviewed the responsibilities of AIC under the Agreement. The Trustees reviewed the services being provided by AIC to the Fund including, without limitation: the quality of AIC investment advisory services (including research and recommendations with respect to portfolio securities) and assuring compliance with each Fund’s investment objectives and limitations, as well as for ensuring compliance with regulatory requirements; its coordination of services for the Fund among the service providers and the Independent Trustees; and its efforts to promote the Fund and grow the Fund’s assets. The Trustees noted AIC’s continuity of, and commitment to retain and enhance, qualified personnel; and AIC’s continued cooperation with the Independent Trustees and Legal Counsel for the Fund. The Trustees noted that several of the officers of the Trust, including the principal executive officer and president for the Trust were employees of AIC, and they served the Trust without additional compensation. The Trustees noted the continued

AVONDALE CORE INVESTMENT FUND

ADDITIONAL INFORMATION (CONTINUED)

OCTOBER 31, 2016 (UNAUDITED)

efforts of AIC in marketing the Fund and its continued desire to expand its reach through advisor representatives and the Avondale brand. After reviewing the foregoing information and further information in the materials provided by AIC (including AIC’s Form ADV), the Board concluded that the nature, extent, and quality of the services provided by AIC were reasonable and consistent with the Board’s expectations and those set forth in the current and proposed Management Services Agreement.

Investment Performance of the Fund and AIC. In considering the investment performance of the Fund and AIC, the Trustees compared the short and long-term performance of the Fund. The Trustees also considered the consistency of AIC’s management of the Fund with its commitment to the investment objectives and policies along with the overall performance of the Fund along with the materials which the Board has reviewed at each quarterly Board meeting throughout the year.

Overall, the Trustees concluded that the performance of the Fund was acceptable, although the Trustees while monitoring the Fund’s performance against its benchmark and peer group they continue to encourage AIC to seek additional opportunities to expand the breadth of the portfolio’s investments in the market remaining consistent with the Fund’s investment objective and policies.

Costs of the Services to be provided and Profits to be Realized by AIC. In considering the costs of the services to be provided and profits to be realized by AIC from the relationship with the Fund, the Trustees considered: (1) AIC’s financial condition (as reported by the company) and the level of commitment to the Fund and by the principals of AIC; (2) AIC continued desire to increase asset levels of the Fund; (3) the overall low expenses of the Fund; (4) the nature and frequency of advisory fee payments; and (5) AIC’s desire to partner with other advisors seeking to secure new assets and establish new series under the Trust. The Trustees noted that the Fund’s advisory fees remain slightly higher than other funds, however, AIC reflects a desire to remain competitive in its desire to reduce the fees to the shareholders. The Trustees concluded that given the relatively small asset levels of the Fund, it would be difficult for any adviser to operate the Fund at average cost levels and that AIC had put forth efforts to control the operating expenses of the Fund and increase the assets. The Trustees noted AIC’s continued efforts to manage the expenses of the Fund. The Board concluded that although Fund expenses were higher than peer averages, such expenses were justified and unavoidable given the complex regulatory requirements, and most importantly, the relatively small levels of assets in the Fund. Based on the foregoing, the Board concluded that the fees to be paid to AIC by the Fund were fair and reasonable in relation to the nature and quality of the services provided by AIC.

Economies of Scale. The Board also considered the extent to which economies of scale would be realized as the Fund grows and whether the level of the advisory fee reflects those economies of scale for the benefit of the Fund’s shareholders. In this regard, the Trustees considered AIC’s continued desire to increase the assets of the Fund, its continued efforts to maintain low fund expenses and its desire to attract new assets.

AVONDALE CORE INVESTMENT FUND

ADDITIONAL INFORMATION (CONTINUED)

OCTOBER 31, 2016 (UNAUDITED)

After considering these factors, the Board concluded that the fee level was satisfactory and adequate to reflect economies of scale for the benefit of the Fund’s shareholders if the Fund grew.

Advisor’s Practices Regarding Possible Conflicts of Interest and Benefits to the Adviser. In considering AIC’s practices regarding conflicts of interest, the Trustees evaluated the potential for conflicts of interest and considered such matters as the experience and ability of AIC’s advisory personnel assigned to the Fund; the basis of decisions to buy or sell securities for the Fund and/or AIC’s other accounts; and the substance and administration of AIC’s code of ethics. Based on the foregoing, the Board determined that AIC’s standards and practices relating to the identification and mitigation of possible conflicts of interest were satisfactory.

Conclusion. Having requested and received such information from the Adviser as the Independent Trustees of the Board of Trustees believed to be reasonably necessary to evaluate renewing the Management Services Agreement, and as assisted by the advice of legal counsel, the Board, including the Independent Trustees, concluded that the overall arrangement provided under the terms of the Management Services Agreement was a reasonable business arrangement and that renewal of the Management Services Agreement was in the best interests of the Trust and the Fund’s shareholders.

AVONDALE CORE INVESTMENT FUND

TRUSTEES & OFFICERS

OCTOBER 31, 2016 (UNAUDITED)

The following table provides information regarding the Trustees who are not “interested persons” of the Trust, as defined in the 1940 Act (“Independent Trustees”).


Name, Address and Date of Birth	Position(s) Held with the Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee	Principal Occupation(s) During the Past Five Years	Other Directorships Held by Trustee
*Independent Trustees*
Cyrus Amini 20750 Ventura Blvd. Woodland Hills, CA 91364 DOB: 8/13/84	Trustee	Indefinite Term; Since August 2014	One	Vice President, Co-Portfolio manager and Consultant at Charlesworth & Rugg, Inc.; Student at Boston College Law School	None
Jonathan Rugg 20750 Ventura Blvd. Woodland Hills, CA 91364 DOB: 11/14/83	Trustee	Indefinite Term; Since August 2014	One	Vice President, Co-Portfolio manager and Consultant at Charlesworth & Rugg, Inc.; Associate at Urdang Capital Management	None

AVONDALE CORE INVESTMENT FUND

TRUSTEES & OFFICERS (CONTINUED)

OCTOBER 31, 2016 (UNAUDITED)

The following table provides information regarding the Trustee who is an “interested person” of the Trust, and the officers of the Trust.


Name, Address and Date of Birth	Position(s) Held with the Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee	Principal Occupation(s) During the Past Five Years	Other Directorships Held by Trustee
*Interested Trustee and Officers*
Scott Krisiloff 2001 Santa Monica Blvd. Suite 1165w Santa Monica, CA 90404 DOB: 9/19/86	President & Trustee	Indefinite Term; Since August 2014	One	CEO, Avondale Investment Company, LLC Securities Analyst as Transamerica Investment Management	None
Umberto Anastasi 8000 Town Centre Drive Suite 400 Broadview Hts., OH 44147 DOB: 9/21/74	Treasurer	Indefinite Term; Since November 2015	N/A	Vice President Mutual Shareholder Services	N/A
Charles R. Ropka, Esq. 215 Fries Mill Road Turnersville, NJ 08012 DOB: 10/21/63	Secretary	Indefinite Term; Since August 2014	N/A	Attorney-at-Law – Law Office of C. Richard Ropka, LLC; Rabil, Ropka, Kingett & Stewart, LLC	N/A

No fees were paid to any trustee during the fiscal year ended October 31, 2016.

INVESTMENT ADVISOR

Avondale Investment Company, LLC

2001 Santa Monica Blvd., Suite 1165W

Santa Monica, CA 90404

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Sanville & Company

1514 Old York Road

Abington, PA 19001

LEGAL COUNSEL

Law Office of C. Richard Ropka, LLC

215 Fries Mill Road

Turnersville, NJ 08012

CUSTODIAN

Huntington National Bank

41 South Street

Columbus, OH 43125

DISTRIBUTOR

Arbor Court Capital, LLC

8000 Town Centre Drive, Suite 400

Broadview Heights, OH 44147

TRANSFER AGENT AND FUND ACCOUNTANT

Mutual Shareholder Services

8000 Town Centre Drive, Suite 400

Broadview Heights, OH 44147

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

Item 2. Code of Ethics.

(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(b) For purposes of this item, “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:

(1) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

(2) Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant;

(3) Compliance with applicable governmental laws, rules, and regulations;

(4) The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and

(5) Accountability for adherence to the code.

(c) Amendments: During the period covered by the report, there have not been any amendments to the provisions of the code of ethics.

(d) Waivers: During the period covered by the report, the registrant has not granted any express or implicit waivers from the provisions of the code of ethics.

(e) The Code of Ethics is not posted on registrant’s website.

(f) A copy of the Code of Ethics is attached as an exhibit.

Item 3. Audit Committee Financial Expert.

(a)

The registrant’s Board of Trustees has determined that it does not have an audit committee financial expert serving on its audit committee. At this time, the registrant believes that the experience provided by each member of the audit committee together offer the registrant adequate oversight for the registrant’s level of financial complexity.

Item 4. Principal Accountant Fees and Services.

(a)

Audit Fees

FY 2016

$ 6,000

FY 2015

$ 7,500

(b)

Audit-Related Fees

Registrant

FY 2016

$ 0

FY 2015

$ 0

Nature of the fees:

Not applicable.

(c)

Tax Fees

Registrant

FY 2016

$ 1,400

FY 2015

$ 1,800

Nature of the fees:

Tax preparation and filing.

(d)

All Other Fees

Registrant

FY 2016

$ 0

FY 2015

$ 0

Nature of the fees:

Not applicable.

(e)

(1)

Audit Committee’s Pre-Approval Policies

The audit committee approves all audit and non-audit related services and, therefore, has not adopted pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

(2)

Percentages of Services Approved by the Audit Committee

None of the services described in paragraph (b) through (d) of this Item were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)

During audit of registrant's financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant's engagement were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

(g)

The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant:

Registrant

FY 2016

$ 1,400

FY 2015

$ 1,800

(h)

The registrant's audit committee has not considered whether the provision of non-audit services to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence.

Item 5. Audit Committee of Listed Companies. Not applicable.

Item 6. Schedule of Investments. Not applicable – schedule filed with Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable.

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

The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

Item 11. Controls and Procedures.

(a) The registrant’s president and chief financial officer concluded that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) were effective as of a date within 90 days of the filing date of this report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act.

(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 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) Code of Ethics. Filed herewith.

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(b) Certification pursuant to Section 906 Certification of the Sarbanes-Oxley Act of 2002. Filed herewith.

SIGNATURES

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

AVONDALE FUNDS

By: /s/ Scott Krisiloff

Scott Krisiloff, President

Date: January 9, 2017

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

By: /s/ Scott Krisiloff

Scott Krisiloff, President

Date: January 9, 2017

AVONDALE CORE INVESTMENT FUND

CODE OF ETHICS

(Adopted: September 16, 2014)

STATEMENT OF PRINCIPLES

Avondale Core Investment Fund (the "Trust") has adopted this Code of Ethics to govern personal securities investment activities of the officers and trustees of the Trust (collectively, "Trust Personnel"), persons affiliated with the investment advisers to each series of the Trust listed on Schedule A of this Code (each, an "Adviser" and collectively, the "Advisers"). This Code shall also serve as the Code of Ethics for each Adviser and the Underwriter for purposes of the Investment Company Act of 1940. Although this Code contains a number of specific standards and policies, there are three key principles embodied throughout the Code.

The Interests of Trust Shareholders Must Always Be Paramount

Trust Personnel have a legal and fiduciary duty to place the interests of clients first. In any decision relating to their personal investments, Trust Personnel must scrupulously avoid serving their own interests ahead of those of any client.

Trust Personnel May Not Take Inappropriate Advantage Of Their Relationship To Our Shareholders

Trust Personnel should avoid any situation (including unusual investment opportunities, perquisites, accepting gifts of more than token value from persons seeking to do business with the Advisers or the Trust) that might compromise, or call into question, the exercise of their fully independent judgment in the interests of trust shareholders.

All Personal Securities Transactions Should Avoid Any Actual, Potential or Apparent Conflicts Of Interest

Although all personal securities transactions by Trust Personnel must be conducted in a manner consistent with this Code, the Code itself is based upon the premise that Trust Personnel owe a fiduciary duty to clients, and should therefore avoid any activity that creates an actual, potential or apparent conflict of interest. This includes executing transactions through or for the benefit of a third party when the transaction is not in keeping with the general principles of this Code.

Trust Personnel must adhere to these general principles as well as comply with the specific provisions of this Code. Technical compliance with the Code and its procedures will not automatically prevent scrutiny of trades that show a pattern of abuse or violation of an individual's fiduciary duties to clients.

DEFINITIONS

"Act" means the Investment Company Act of 1940, as amended.

"Advisers" means the Advisers listed on Schedule A to this Code, as such schedule may be amended from time to time.

"Affiliated Funds" means: (1) for Adviser Personnel who are affiliated with an Adviser, the Fund(s) for which such Adviser serves as investment adviser; (2) for Adviser Personnel who are in a control relationship with any Fund, that Fund; and (3) for Adviser Personnel who are employees of the Trust, all Funds.

"Adviser Personnel" means: (1) any employee of the Trust or an Adviser who, in connection with his or her regular functions or duties, makes, participates in or obtains information regarding the purchase or sale of Securities by any Fund, or whose functions relate to the making of any recommendations with respect to the purchase or sale of Securities by any Fund; (2) any officer, general partner or director of an Adviser; and (3) any natural person in a control relationship to any Fund or any Adviser who obtains information concerning recommendations made to a Fund with regard to the purchase or sale of a Security by a Fund. Any provisions of this Code that apply directly to Adviser Personnel equally apply to accounts in the names of other persons in which Adviser Personnel have Beneficial Ownership.

"Beneficial Ownership" means the opportunity, directly or indirectly, to profit or share in any profit derived from the purchase or sale of the subject Securities. Beneficial Ownership includes, but is not limited to, ownership of Securities held by members of the family. For these purposes, a person's family includes the spouse, minor children, any person living in the home and any relative to whose support the person directly or indirectly contributes.

"Control" means the power to exercise a controlling influence over the management or policies of the Trust, unless such power is solely the result of an official position with the Trust. Any person who beneficially owns, either directly or through one or more controlled companies, more than 25 percent of the voting securities of any present Fund of a Trust shall be presumed to control such Fund. Any such presumption may be rebutted by evidence, in accordance with Section 2(a)(9) of the Act.

"Compliance Officer" means, for Adviser Personnel, the person designated as the Compliance Officer by such Adviser; and for Adviser Personnel who are not affiliated with an Adviser and for Trust Personnel, the person or persons designated by the President of the Trust.

"Fund" means each series of the Trust.

"Portfolio Managers" means those Adviser Personnel entrusted with the direct responsibility and authority to make investment decisions affecting any Fund. Any provisions of this Code that apply directly to Personal Securities Transactions by a Fund Portfolio Manager equally apply to transactions in accounts in the names of other persons in which the Fund Portfolio Manager has Beneficial Ownership.

"Personal Securities Transaction(s)" means transactions in Securities for the account(s) in the names of Trust Personnel, or for accounts in which Trust Personnel have Beneficial Ownership.

"Trust" means Avondale Core Investment Fund.

"Trust Personnel" means: (1) any officer or director of the Underwriter who, in the ordinary course of business, makes, participates in or obtains information regarding, the purchase or sale of securities by any Fund, or whose functions or duties in the ordinary course of business relate to the making of any recommendation to any Fund regarding the purchase or sale of securities; or (2) any officer or Trustee of the Trust. Any provisions of this Code that apply directly to Trust Personnel equally apply to accounts in the names of other persons in which Trust Personnel have Beneficial Ownership.

"Security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, pre-organization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas or other mineral rights, or, in general, any interest or instrument commonly known as "security," or any certificate or interest or participation in temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase (including options) any of the foregoing.

The term "Security" shall not include the following securities: (i) shares of registered open-end investment companies; (ii) securities issued by the United States government; (iii) short term debt securities which are government securities within the meaning of Section 2(a)(16) of the Act; (iv) bankers' acceptances; (v) bank certificates of deposit; (vi) commercial paper and (vii) such other money market instruments as may be designated by the Trust's Board of Trustees (collectively, the "Excluded Securities").

"Purchase or Sale of a Security" includes the writing of an option to purchase or sell a Security. A Security shall be deemed "being considered for Purchase or Sale" by a Fund when a recommendation to purchase or sell has been made and communicated and, with respect to the person making the recommendation, when such person seriously considers making such a recommendation. A Security shall not be deemed to be one which is "being considered for Purchase or Sale" by a Fund if such Security is reviewed as part of a general industrial survey or other broad monitoring of the securities market.

PROHIBITED PURCHASES AND SALES OF SECURITIES

In a Personal Securities Transaction, Portfolio Managers may not:

Purchase or Sell a Security within three calendar days before, or on the same day as, the execution of a trade in the same Security or an equivalent Security by the Affiliated Fund (unless the Personal Securities Transaction is combined ("blocked") with the Affiliated Fund’s transaction).

Adviser Personnel may not:

In any calendar year, receive a gift or anything else (for example, air fare, hotel accommodations, etc.) with a value of more than $100 from any single person or entity that does business with or on behalf of an Affiliated Fund;

Serve on the board of directors of a publicly traded company without prior authorization from the Board of Trustees of the Trust based upon a determination that such service would be consistent with the interests of the Trust and its shareholders. Adviser Personnel that serve on such boards of directors are not permitted to participate in any investment decisions made by the Trust involving Securities of a company on whose board they serve;

Execute a Personal Securities Transaction without the prior written authorization of the Compliance Officer;

Execute a Personal Securities Transaction on a day during which an Affiliated Fund has a pending "buy" or "sell" order in that Security or an equivalent Security, until the Affiliated Fund's order is executed or withdrawn (unless the Personal Securities Transaction is combined ("blocked") with the Affiliated Fund's transaction). In the case of "good until canceled" orders placed by a Fund, this provision applies only if the market price is within 2 points or 10% of the "good until canceled" price; or

Execute a Personal Securities Transaction in a Security or an equivalent Security that is being considered for Purchase or Sale by an Affiliated Fund (unless the Personal Securities Transaction is combined ("blocked") with the Affiliated Fund's transaction).

In a Personal Securities Transaction, Adviser Personnel may not:

Acquire any Security in an initial public offering or in a private placement without prior written authorization of the acquisition by the Compliance Officer. Any decision by a Fund to invest in or sell such Securities must be approved solely by Adviser Personnel with no investment in the issuer.

EXEMPTED TRANSACTIONS

The provisions described above under the heading Prohibited Purchases and Sales of Securities and the Pre-clearance procedures under the heading Pre-clearance of Personal Securities Transactions do not apply to:

Purchases or Sales of Excluded Securities;

Purchases or Sales of Securities involving less than 2,000 shares of any Security included in the Standard & Poor's 500 Index;

Purchases or Sales of Securities involving less than 2,000 shares of a Security of a company with a market capitalization in excess of $200 million and average daily trading volume in excess of 50,000 shares for the past ten trading days;

Purchases or Sales of options contracts on a broad-based market index;

Purchases or Sales of Securities effected in any account in which the applicable Adviser Personnel has no Beneficial Ownership;

Purchases or Sales of Securities which are non-volitional on the part of either Adviser Personnel or a Fund (for example, the receipt of stock dividends);

Purchases of Securities made as part of automatic dividend reinvestment plans;

Purchases of Securities made as part of an employee benefit plan involving the periodic purchase of company stock or mutual funds; and

Purchases of Securities effected upon the exercise of rights issued by an issuer pro rata to all holders of a class of its securities, to the extent such rights were acquired from such issuer, and sale of such rights so acquired; provided, however, that this section shall not exempt acquisitions of any Security in an initial public offering or in a private placement from the requirement that prior written authorization be obtained from the Compliance Officer.

PRECLEARANCE OF PERSONAL SECURITIES TRANSACTIONS.

All Adviser Personnel wishing to engage in a Personal Securities Transaction must obtain prior written authorization of any such Personal Securities Transaction from the Compliance Officer or such person or persons that such Compliance Officer may from time to time designate to make such written authorizations. Personal Securities Transactions by a Compliance Officer (for Adviser Personnel) shall require prior written authorization of the President of the Adviser with whom the Compliance Officer is affiliated, or his designate, who shall perform the review and approval functions relating to reports and trading by the Compliance Officer. The Adviser shall adopt the appropriate forms and procedures for implementing this Code of Ethics.

Any authorization so provided is effective until the close of business on the fifth trading day after the authorization is granted. In the event that an order for the Personal Securities Transaction is not placed within that time period, a new authorization must be obtained. If the order for the transaction is placed but not executed within that time period, no new authorization is required unless the person placing the original order amends the order in any manner. Authorization for "good until canceled" orders are effective until the order conflicts with a Fund order. If a person is authorized to acquire a security in a private placement or initial public offering, the Compliance Officer must maintain a record of the decision and the reasons supporting the decision.

If a person wishing to effect a Personal Securities Transaction learns, while the order is pending that the same Security is being considered for purchase or Sale by the Fund, such person shall cancel the trade.

Notification of Fund Trading Activity

In addition to placing Purchase or Sale Orders for the Funds, the Portfolio Managers, or their designates, shall notify their respective Compliance Officers of daily purchases and sales and of Securities being considered for Purchase or Sale by the Affiliated Fund (other than anticipated transactions in Excluded Securities). In the alternative, a Compliance Officer must consult with the respective Portfolio Manager prior to authorizing a Personal Securities Transaction.

TRANSACTION AND ACCOUNT POSITION REPORTING REQUIREMENTS

The following reporting requirements do not apply to any Trustee of the Trust who is not an "interested person" of the Trust within the meaning of section 2(a)(19) of the Act, and who would be required to make a report solely by reason of being a Trustee ("Disinterested Trustee"). If, however, a Disinterested Trustee knew or, in the ordinary course of fulfilling his or her duties as a Trustee of the Trust, should have known, that during the fifteen day period immediately preceding or after the date of a Personal Security Transaction in a Security by the Trustee such Security is or was purchased or sold by a Fund or such purchase or sale by a Fund is or was considered by a Fund or the Adviser, the Disinterested Trustee shall make the quarterly disclosures described below to the Board of Trustees, but only with respect to the applicable Personal Security Transactions.

A. Disclosure Of Personal Brokerage Accounts and Securities Holdings

Within ten (10) days of the commencement of employment with an Adviser, the Underwriter or the Trust, all Adviser Personnel and Trust Personnel shall submit to the Compliance Officer: a) the names and account numbers of all of their personal brokerage accounts, brokerage accounts of members of their immediate families, and any brokerage accounts which they control or in which they or an immediate family member has Beneficial Ownership when the person became an employee; b) a list of all personal Securities holdings when the person became an employee; c) certification that they have read and understand this Code; and d) the date the report was submitted.

Each of these brokerage accounts shall furnish duplicate confirmations and statements to the Adviser with whom the person is affiliated or the Trust.

B. Annual Reporting Requirements

At the beginning of the first quarter of each fiscal year, all Adviser Personnel and Trust Personnel shall submit to the Compliance Officer: a) the names and account numbers of all of their personal brokerage accounts, brokerage accounts of members of their immediate families, and any brokerage accounts which they control or in which they or an immediate family member has Beneficial Ownership as of a date no more than 30 days before the report was submitted; b) a list of all personal Securities holdings as of a date no more than 30 days before the report was submitted; c) certification that they have read and understand this Code and whether they have complied with its requirements throughout the prior fiscal year; and d) the date the report was submitted.

C. Quarterly Reporting Requirements

All Adviser Personnel and Trust Personnel shall report to the Compliance Officer the following information with respect to transactions in any Security in which such person has, or by reason of such transaction acquires, any direct or indirect Beneficial Ownership in the Security:

The date of the transaction, the title and the number of shares, and the principal amount of each Security involved;

The nature of the transaction (i.e., purchase, sale or any other type of acquisition or disposition);

The price at which the transaction was effected; and

The name of the broker, dealer or bank with or through whom the transaction was effected.

Trust Personnel and Adviser Personnel shall also identify any trading account established by the person during the previous quarter with a broker, dealer or bank.

Reports pursuant to this section of this Code shall be made no later than 10 days after the end of the calendar quarter in which the transaction to which the report relates was effected, and shall include a certification that the reporting person has reported all Personal Securities Transactions required to be disclosed or reported pursuant to the requirements of this Code. Any such report may contain a statement that the report shall not be construed as an admission by the person making such report that he or she has any direct or indirect Beneficial Ownership in the Security to which the report relates. Adviser Personnel and Trust Personnel need not make such a report with respect to transactions effected for any account in which they may have Beneficial Ownership, but over which they do not have any direct or indirect influence or control (for example, a blind trust).

ENFORCEMENT AND PENALTIES

With respect to Adviser Personnel affiliated with an Adviser, each Compliance Officer shall identify all Adviser Personnel, inform those persons of their reporting obligations, and maintain a record of all current and former Adviser Personnel. With respect to Trust Personnel and Adviser Personnel who are not affiliated with an Adviser, the Compliance Officer shall identify all such persons, inform those persons of their reporting obligations, and maintain a record of all current and former such persons. The Compliance Officer shall review the transaction information supplied by Adviser Personnel who are not affiliated with an Adviser, by Trust Personnel and by their affiliates. If a transaction appears to be in violation of this Code of Ethics, the transaction will be reported to the Adviser with whom the person is affiliated (if any) as well as the Board of Trustees of the Trust.

Upon being informed of a violation of this Code of Ethics, an Adviser may impose such sanctions as it deems appropriate, including but not limited to, a letter of censure or suspension, termination of the employment of the violator or a request for disgorgement of any profits received from a securities transaction effected in violation of this Code of Ethics. The Adviser shall impose sanctions in accordance with the principle that no Trust Personnel may profit at the expense of the shareholders of the Trust. Any sanctions imposed with respect thereto shall be reported periodically to the Board of Trustees of the Trust.

DUTIES AND POWERS OF THE BOARD OF TRUSTEES

Each of the Underwriter, Advisers and an officer of the Trust shall submit to the Board of Trustees at each regular meeting of the Board, a report of Personal Securities Transactions by Trust Personnel. Such reports shall be reviewed by the Board of Trustees in order to determine whether any violation of this Code or any section of the Act or the regulations promulgated there under has occurred.

Annually, each of the Underwriter, Advisers and an officer of the Trust shall submit to the Board of Trustees a report that:

Summarizes existing procedures concerning Personal Securities investing and any changes in the procedures made during the prior year;

Identifies any violations of this Code and any significant remedial action taken during the prior year;

Identifies any recommended changes in existing restrictions or procedures based upon the experience under the Code, evolving industry practices or developments in applicable laws and regulations; and

Certifies that the Adviser, the Trust and the Underwriter have each adopted procedures reasonably designed to prevent violations of this Code.

The Board of Trustees of the Trust may, in its discretion, take any actions and impose any penalty it deems appropriate upon any person that has violated the Code of Ethics of the Trust or engaged in a course of conduct which, although in technical compliance with this Code, shows a pattern of abuse by that person of his or her fiduciary duties to the Trust.

The above actions of the Board of Trustees may be in addition to any action taken by the applicable Adviser against the person or persons involved.

Schedule A - Advisers

AVONDALE CORE INVESTMENT FUND

Code of Ethics

Avondale Investment Company, LLC