ITEM 1.
|
REPORT TO STOCKHOLDERS
|
Company
|
Market Value
|
Percentage of Portfolio
|
||||||
Colgate-Palmolive Co.
|
$
|
5,137,209
|
16.3
|
%
|
||||
T. Rowe Price Group Inc.
|
$
|
2,597,350
|
8.2
|
%
|
||||
Franklin Resources, Inc.
|
$
|
1,612,440
|
5.1
|
%
|
||||
Automatic Data Processing, Inc.
|
$
|
1,588,130
|
5.0
|
%
|
||||
eBay Inc.
|
$
|
1,571,400
|
5.0
|
%
|
||||
Cabela's Incorporated
|
$
|
1,544,920
|
4.9
|
%
|
||||
Stryker Corp.
|
$
|
1,526,580
|
4.8
|
%
|
||||
Paychex, Inc.
|
$
|
1,508,910
|
4.8
|
%
|
||||
White Mountains Insurance Group, Ltd.
|
$
|
1,389,808
|
4.4
|
%
|
||||
Berkshire Hathaway Inc. B
|
$
|
1,354,960
|
4.3
|
%
|
Luke E. Sims
|
David C. Sims
|
Email: luke@simscapital.com
|
Email: dave@simscapital.com
|
414/530-5680
|
414/765-1107
|
Assets
|
||||||||
Common stock--at market value (cost $16,986,537)
|
$
|
26,536,488
|
||||||
Money market funds
|
5,010,083
|
|||||||
Short-term interest receivable
|
3,116
|
|||||||
Dividends receivable
|
26,560
|
|||||||
Prepaid fees
|
14,162
|
|||||||
$
|
31,590,409
|
|||||||
Liabilities
|
||||||||
Accounts payable
|
$
|
1,829
|
||||||
Investment advisor fee payable
|
23,350
|
|||||||
$
|
25,179
|
|||||||
Total net assets
|
$
|
31,565,230
|
||||||
Shareholders' Equity
|
||||||||
Common stock- $0.001 par value per share; authorized 50,000,000 shares, outstanding 3,588,977 shares
|
$
|
3,589
|
||||||
Paid-in capital
|
20,763,929
|
|||||||
Undistributed net investment losses
|
(53,984
|
)
|
||||||
Undistributed capital gains
|
1,301,745
|
|||||||
Unrealized appreciation on investments
|
9,549,951
|
|||||||
Shareholders' equity
|
$
|
31,565,230
|
||||||
Net asset value per share
|
$
|
8.80
|
Investment Income
|
||||||||||||
Dividends
|
$
|
126,045
|
||||||||||
Interest
|
23,899
|
|||||||||||
Total investment income
|
$
|
149,944
|
||||||||||
Expenses
|
||||||||||||
Advisory fees
|
$
|
113,804
|
||||||||||
Legal fees
|
1,965
|
|||||||||||
Insurance
|
6,492
|
|||||||||||
Transfer agent
|
33,665
|
|||||||||||
Directors’ fees and expenses
|
32,000
|
|||||||||||
Custodian fees
|
3,771
|
|||||||||||
Listing fee
|
7,439
|
|||||||||||
Other fees and expenses
|
4,908
|
|||||||||||
Total expenses
|
$
|
204,044
|
||||||||||
Net investment loss
|
$
|
(54,100
|
)
|
|||||||||
Realized Gain and Unrealized Appreciation on Investments
|
||||||||||||
Realized gain on investments:
|
||||||||||||
Proceeds from sale of investment securities
|
$
|
9,706,270
|
||||||||||
Less: cost of investment securities sold
|
8,445,392
|
|||||||||||
Net realized gain on investments
|
$
|
1,260,878
|
||||||||||
Unrealized appreciation on investments:
|
||||||||||||
Unrealized appreciation at end of period
|
$
|
9,549,951
|
||||||||||
Less: unrealized appreciation at beginning of period
|
8,832,581
|
|||||||||||
Net change in unrealized appreciation on investments
|
$
|
717,370
|
||||||||||
Net realized gain and change in unrealized appreciation on investments
|
$
|
1,978,248
|
||||||||||
Net increase from operations
|
$
|
1,924,148
|
From Operations:
|
Year Ended
12/31/2016 |
Six Months Ended
6/30/2017 |
||||||
(unaudited)
|
||||||||
Net investment income (loss)
|
$
|
49,438
|
$
|
(54,100
|
)
|
|||
Net realized gain on investments
|
3,894,649
|
1,260,878
|
||||||
Net change in unrealized appreciation on investments
|
(672,835
|
)
|
717,370
|
|||||
Net increase from operations
|
$
|
3,271,252
|
$
|
1,924,148
|
||||
Distributions to Shareholders from:
|
||||||||
Net investment income
|
$
|
(29,562
|
)
|
--
|
||||
Net realized gain from investment transactions
|
(3,853,782
|
)
|
--
|
|||||
Total distributions
|
$
|
(3,883,344
|
)
|
--
|
||||
From Capital Stock Transactions:
|
||||||||
Reinvested capital from distribution of shares
|
$
|
2,465,266
|
--
|
|||||
Total Net Assets:
|
||||||||
Beginning of year
|
$
|
27,787,908
|
$
|
29,641,082
|
||||
End of period (including undistributed net investment income of $116 and gain of $40,867 in 2016 and undistributed net investment loss of $53,984 and gains of $1,301,754 in 2017)
|
$
|
29,641,082
|
$
|
31,565,230
|
||||
Shares:
|
||||||||
Shares issued to shareholders under the Dividend
|
325,663
|
--
|
||||||
Reinvestment and Cash Purchase Plan
|
||||||||
Shares at beginning of year
|
3,263,314
|
3,588,977
|
||||||
Shares at end of period
|
3,588,977
|
3,588,977
|
For the periods ended December 31:
|
2012
|
2013
|
2014
|
2015
|
2016
|
June 30, 2017
|
||||||||||||||||||
Six months
(unaudited)
|
||||||||||||||||||||||||
Net asset value at beginning of year
|
$
|
7.12
|
$
|
7.61
|
$
|
8.69
|
$
|
9.00
|
$
|
8.52
|
$
|
8.26
|
||||||||||||
Net investment income (loss)
|
$
|
0.06
|
$
|
0.03
|
$
|
0.02
|
$
|
0.04
|
$
|
0.01
|
$
|
(0.01
|
)
|
|||||||||||
Net realized gain and unrealized appreciation on investments
|
$
|
0.79
|
$
|
2.07
|
$
|
0.66
|
$
|
0.04
|
$
|
0.99
|
$
|
0.55
|
||||||||||||
Total from investment operations
|
$
|
0.85
|
$
|
2.10
|
$
|
0.68
|
$
|
0.08
|
$
|
1.00
|
$
|
0.54
|
||||||||||||
Distribution from:
|
||||||||||||||||||||||||
Net investment income
|
$
|
(0.03
|
)
|
$
|
(0.07
|
)
|
$
|
(0.02
|
)
|
$
|
(0.05
|
)
|
$
|
(0.01
|
)
|
-
|
||||||||
Realized gains
|
$
|
(0.33
|
)
|
$
|
(0.95
|
)
|
$
|
(0.35
|
)
|
$
|
(0.45
|
)
|
$
|
(1.18
|
)
|
-
|
||||||||
Total distributions
|
$
|
(0.36
|
)
|
$
|
(1.02
|
)
|
$
|
(0.37
|
)
|
$
|
(0.50
|
)
|
$
|
(1.19
|
)
|
-
|
||||||||
Dilution from share issuance
|
-
|
-
|
-
|
$
|
(0.06
|
)
|
$
|
(0.07
|
)
|
-
|
||||||||||||||
Net asset value at end of period
|
$
|
7.61
|
$
|
8.69
|
$
|
9.00
|
$
|
8.52
|
$
|
8.26
|
$
|
8.80
|
||||||||||||
Per share market price, end of period last traded price
|
$
|
7.10
|
$
|
8.19
|
$
|
8.70
|
$
|
7.59
|
$
|
7.35
|
$
|
7.85
|
||||||||||||
For the periods ended December 31:
|
2012
|
2013
|
2014
|
2015
|
2016
|
June 30, 2017
|
||||||||||||||||||
Total Investment Return:
|
||||||||||||||||||||||||
Average annual return, based on market value:
|
||||||||||||||||||||||||
1 Year
|
7
|
%
|
30
|
%
|
11
|
%
|
(7
|
%)
|
12
|
%
|
17
|
%
|
||||||||||||
5 Year
|
3
|
%
|
18
|
%
|
15
|
%
|
12
|
%
|
10
|
%
|
13
|
%
|
||||||||||||
10 Year
|
4
|
%
|
7
|
%
|
8
|
%
|
6
|
%
|
7
|
%
|
6
|
%
|
||||||||||||
From inception
|
8
|
%
|
9
|
%
|
9
|
%
|
9
|
%
|
9
|
%
|
9
|
%
|
||||||||||||
Average annual return, based on net asset value:
|
||||||||||||||||||||||||
1 Year
|
12
|
%
|
28
|
%
|
8
|
%
|
1
|
%
|
12
|
%
|
13
|
%
|
||||||||||||
5 Year
|
4
|
%
|
17
|
%
|
13
|
%
|
11
|
%
|
12
|
%
|
12
|
%
|
||||||||||||
10 Year
|
6
|
%
|
7
|
%
|
7
|
%
|
7
|
%
|
6
|
%
|
7
|
%
|
||||||||||||
From inception
|
9
|
%
|
9
|
%
|
9
|
%
|
9
|
%
|
9
|
%
|
9
|
%
|
||||||||||||
Net assets, end of year (000s omitted)
|
$
|
23,796
|
$
|
27,164
|
$
|
28,114
|
$
|
27,788
|
$
|
29,641
|
$
|
31,565
|
||||||||||||
Ratios to average net assets (annualized):
|
||||||||||||||||||||||||
Ratio of expenses to average net assets (A):
|
1.43
|
%
|
1.37
|
%
|
1.40
|
%
|
1.43
|
%
|
1.41
|
%
|
1.36
|
%
|
||||||||||||
Ratio of net investment income (loss) to average net assets
|
0.83
|
%
|
0.34
|
%
|
0.27
|
%
|
0.42
|
%
|
0.17
|
%
|
(0.36
|
%)
|
||||||||||||
Portfolio turnover (annualized)
|
22
|
%
|
44
|
%
|
6
|
%
|
26
|
%
|
59
|
%
|
65
|
%
|
||||||||||||
Average commission paid per share
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
$
|
0.04
|
(A) |
Expense ratio does not reflect fees and expenses incurred by the Fund as a result of its investments in shares of investment companies. If fees for Fund investments in investment companies were included in the expense ratio, the net impact would be an increase of approximately 0.21% for the year ended December 31, 2016, 0.06% for the year ended December 31, 2014, 0.07% for the year ended December 31, 2013, and 0.07% for the year ended December 31, 2012. For the year ended December 31, 2015, there would have been no increase in the expense ratio. For the six months ended June 30, 2017, there would have been no increase in the expense ratio.
|
Common Stock (84.1% of total investments)
|
LEVEL ONE
|
|||||||||||||||
Industry
|
Shares
|
Cost
|
Market Value
|
% of Total Investments
|
||||||||||||
Consumer
|
||||||||||||||||
Colgate-Palmolive Co.
|
69,300
|
$
|
4,347,559
|
$
|
5,137,209
|
|||||||||||
PepsiCo, Inc.
|
10,000
|
168,296
|
1,154,900
|
|||||||||||||
$
|
6,292,109
|
19.9
|
%
|
|||||||||||||
Data Processing
|
||||||||||||||||
Automatic Data Processing, Inc.
|
15,500
|
827,769
|
1,588,130
|
|||||||||||||
Paychex, Inc.
|
26,500
|
1,005,569
|
1,508,910
|
|||||||||||||
$
|
3,097,040
|
9.8
|
%
|
|||||||||||||
Drug/Medical Device
|
||||||||||||||||
Abbott Laboratories Inc.
|
7,500
|
175,588
|
364,575
|
|||||||||||||
Johnson & Johnson
|
4,000
|
45,500
|
529,160
|
|||||||||||||
Stryker Corp.
|
11,000
|
47,141
|
1,526,580
|
|||||||||||||
$
|
2,420,315
|
7.7
|
%
|
|||||||||||||
Industrial
|
||||||||||||||||
CSW Industrials, Inc.*
|
25,750
|
756,821
|
995,238
|
|||||||||||||
Illinois Tool Works Inc.
|
9,000
|
379,352
|
1,289,250
|
|||||||||||||
Waters Corp.*
|
6,000
|
302,341
|
1,103,040
|
|||||||||||||
$
|
3,387,528
|
10.7
|
%
|
|||||||||||||
Insurance
|
||||||||||||||||
Berkshire Hathaway Inc. B*
|
8,000
|
590,996
|
1,354,960
|
|||||||||||||
Markel Corp.*
|
1,300
|
831,360
|
1,268,618
|
|||||||||||||
White Mountains Insurance Group, Ltd.
|
1,600
|
1,245,568
|
1,389,808
|
|||||||||||||
$
|
4,013,386
|
12.7
|
%
|
|||||||||||||
Mutual Fund Managers
|
||||||||||||||||
Franklin Resources, Inc.
|
36,000
|
1,203,445
|
1,612,440
|
|||||||||||||
T. Rowe Price Group Inc.
|
35,000
|
2,445,055
|
2,597,350
|
|||||||||||||
$
|
4,209,790
|
13.4
|
%
|
|||||||||||||
Retail
|
||||||||||||||||
Cabela's Incorporated*
|
26,000
|
1,482,217
|
1,544,920
|
|||||||||||||
eBay Inc.*
|
45,000
|
1,131,960
|
1,571,400
|
|||||||||||||
$
|
3,116,320
|
9.9
|
%
|
|||||||||||||
Total common stock investments
|
$
|
26,536,488
|
84.1
|
%
|
||||||||||||
Money Market Funds (15.9% of total investments)
|
LEVEL ONE
|
|||||||||||||||
Market Value
|
% of Total Investments
|
|||||||||||||||
Federated Government Oblig. #5 Inst., 0.83% yield
|
$
|
5,010,083
|
||||||||||||||
$
|
5,010,083
|
15.9
|
%
|
|||||||||||||
Total investments
|
$
|
31,546,571
|
||||||||||||||
All other assets
|
43,838
|
|||||||||||||||
Accrued investment advisory fees
|
(23,350
|
)
|
||||||||||||||
All other liabilities
|
(1,829
|
)
|
||||||||||||||
Total net assets
|
$
|
31,565,230
|
||||||||||||||
*Non-dividend paying security
|
(1) |
Organization.
|
(2) |
Significant Accounting Policies.
|
Gross unrealized appreciation
|
$
|
9,590,329
|
||
Gross unrealized depreciation
|
(40,378
|
)
|
||
Net unrealized appreciation
|
$
|
9,549,951
|
||
Federal income tax basis
|
$
|
16,986,537
|
(3) |
Certain Service Providers Arrangements
|
(4) |
Dividend Reinvestment and Cash Purchase Plan.
|
(5) |
Fund Investment Transactions
|
(6) |
Financial Highlights.
|
1. |
To elect two (2) Directors to the Board.
|
2. |
To ratify the selection of Plante & Moran, PLLC as the independent registered public accountants of the Fund for the calendar year ending December 31, 2017.
|
For
|
Withheld
|
|||||||
Robert M. Bilkie, Jr.
|
2,259,446
|
32,537
|
||||||
Phillip J. Hanrahan
|
2,236,740
|
55,243
|
For
|
Against | Abstain | Withheld | ||||||||
2,267,788
|
24,252 | 1,597 |
0
|
Name, Position
|
Aggregate
Compensation
From Fund
|
Pension or Retirement
Benefits Accrued as
part of Fund
Expenses
|
Estimated
Annual
Benefits upon
Retirement
|
Total
Compensation
from Fund and
Complex paid
to Directors
|
||||||||||||
David C. Sims,
Director, CFO, CCO, |
None
|
None
|
None
|
None
|
||||||||||||
Luke E. Sims,
Director, President, |
None
|
None
|
None
|
None
|
Name, Position
|
Aggregate
Compensation
From Fund
|
Pension or Retirement
Benefits Accrued as
part of Fund
Expenses
|
Estimated
Annual
Benefits upon
Retirement
|
Total
Compensation
from Fund and
Complex paid
to Directors
|
||||||
Robert M. Bilkie, Jr.,
Director |
$
|
5,000
|
None
|
None
|
$
|
5,000
|
||||
Phillip J. Hanrahan
Director |
$
|
5,500
|
None
|
None
|
$
|
5,500
|
||||
Carl A. Holth,
Director |
$
|
5,500
|
None
|
None
|
$
|
5,500
|
||||
Peggy L. Schmeltz,
Director |
$
|
5,000
|
None
|
None
|
$
|
5,000
|
||||
Donald G. Tyler,
Director |
$
|
5,500
|
None
|
None
|
$
|
5,500
|
||||
Neal F. Zalenko,
Director |
$
|
5,500
|
None
|
None
|
$
|
5,500
|
Board of Directors
|
||
Robert M. Bilkie, Jr.
Chairman of the Board |
Carl A. Holth
Director |
Phillip J. Hanrahan
Director |
Peggy L. Schmeltz
Director
Bowling Green, OH
Bayside, WI
|
Luke E. Sims
President & CEO
Milwaukee, WI
|
David C. Sims
CFO, CCO, Treasurer &
Secretary
|
Donald G. Tyler
Director
Shorewood, WI
|
Neal F. Zalenko
Director
Birmingham, MI
|
ITEM 2.
|
CODE OF ETHICS
|
ITEM 3.
|
AUDIT COMMITTEE FINANCIAL EXPERT
|
ITEM 4.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
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ITEM 5.
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AUDIT COMMITTEE OF LISTED REGISTRANTS
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ITEM 6.
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INVESTMENTS
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ITEM 7.
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DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES
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ITEM 8.
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INVESTMENTS
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(a) |
Not required for the semi-annual report.
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(b) |
There have been no changes to the Fund’s Portfolio Managers.
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ITEM 9.
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PURCHASE OF EQUITY SECURITIES BY CLOSED END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
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ITEM 10.
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SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
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ITEM 11.
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CONTROLS AND PROCEDURES
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(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
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(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
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(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: August 18, 2017
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/s/ Luke E. Sims
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Luke E. Sims
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President and Chief Executive Officer (principal executive officer)
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(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
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(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
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(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: August 18, 2017
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/s/ David C. Sims
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David C. Sims
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Chief Financial Officer (principal financial officer)
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By: /s/ Luke E. Sims
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Luke E. Sims
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President and Chief Executive Officer (principal executive officer)
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Dated: August 18, 2017
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By: /s/ David C. Sims
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David C. Sims
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Chief Financial Officer (principal financial officer)
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Dated: August 18, 2017
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