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 (811-06260)
Quaker Investment Trust
(Exact name of registrant as specified in charter)
309 Technology Drive
Malvern, PA 19355
(Address of principal executive offices) (Zip code)
Jeffry H. King, Sr.
Quaker Investment Trust
309 Technology Drive
Malvern, PA 19355
(Name and address of agent for service)
(800) 220-8888
Registrant’s telephone number, including area code
Date of fiscal year end: June 30, 2014
Date of reporting period: December 31, 2013
|
Item 1. Report to Stockholders.
Semi-Annual Report
2 0 1 3
Quaker Akros Absolute Return Fund
Quaker Event Arbitrage Fund
Quaker Global Tactical Allocation Fund
Quaker Mid-Cap Value Fund
Quaker Small-Cap Growth Tactical Allocation Fund
Quaker Small Cap Value Fund
Quaker Strategic Growth Fund
|
Mutual fund investing involves risk. Principal loss is possible.
Investing in the Quaker Funds may involve special risk including, but not limited to, investments in smaller companies, short sales, foreign securities, special situations, debt securities and value growth investing. Please refer to the prospectus for more complete information.
This report must be preceded or accompanied by a current prospectus.
The opinions expressed are those of the sub-advisers through the end of the period for this report, are subject to change, are not a guarantee, and should not be considered investment advice.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security. Current and future holdings are subject to risk.
|
Chairman’s Letter to the Shareholders
December 31, 2013
Dear Fellow Shareholder:
The premise upon which Quaker Funds, Inc. was founded was the desire to afford everyday investors access to the same tactical and allocation strategies used by professional money managers to augment traditional investing strategies within a holistic asset allocation mix. Our commitment to this principle is still as strong today as it was the day we opened our doors.
Our management team continually strives to provide our shareholders with innovative investment alternatives and advisers that constantly seek superior returns. Thank you for your trust and investment in the Quaker Funds.
Sincerely,
Jeffry H. King, Sr.
Chairman & CEO
Quaker Investment Trust
|
Quaker Akros Absolute Return Fund (AARFX, QASDX, QASIX)
OBJECTIVES AND PRINCIPAL STRATEGIES
The Quaker Akros Absolute Return Fund (“Fund”) seeks to provide long-term capital appreciation and income, while seeking to protect principal during unfavorable market conditions.
Average Annualized Total Return | |||||||||||||||||||||
Commencement | |||||||||||||||||||||
Expense | Inception | of Operations | |||||||||||||||||||
Ratio | Date | One Year | Five Year | Ten Year | through 12/31/2013 | ||||||||||||||||
with | without | with | without | with | without | with | without | ||||||||||||||
sales | sales | sales | sales | sales | sales | sales | sales | ||||||||||||||
charge | charge | charge | charge | charge | charge | charge | charge | ||||||||||||||
Class A | 4.46% | 9/30/2005 | -8.25% | -2.87% | -0.69% | 0.44% | N/A | N/A | -0.71% | -0.03% | |||||||||||
Class C | 5.21% | 10/4/2010 | -3.56% | -3.56% | N/A | N/A | N/A | N/A | -4.74% | -4.74% | |||||||||||
Institutional Class | 4.21% | 10/4/2010 | -2.61% | -2.61% | N/A | N/A | N/A | N/A | -3.75% | -3.75% | |||||||||||
S&P 500® Total Return Index* | 32.39% | 32.39% | 17.94% | 17.94% | N/A | N/A | 7.33% | 7.33% |
* | The benchmark since inception returns are calculated for the period September 30, 2005 through December 31, 2013. |
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Performance data current to the most recent month end is available at www.quakerfunds.com or by calling us toll free at 800-220-8888. Total return includes reinvestment of dividends and capital gains.
Class A shares of the Fund have a maximum sales charge of 5.50%.
The performance table does not reflect the deduction of taxes that a shareholder might pay on fund distributions or the redemption of fund shares. Total return calculations reflect expense reimbursements and fee waivers in the applicable periods. See financial highlights for periods where fees were waived or reimbursed.
The Fund’s portfolio holdings may differ significantly from the securities held in the index and, unlike a mutual fund, an unmanaged index assumes no transaction costs, taxes, management fees or other expenses. You cannot invest directly in an index.
The S&P 500® Total Return Index (“Index”) is a widely recognized, unmanaged index consisting of the approximately 500 largest companies in the United States as measured by market capitalization. The Index assumes reinvestment of all dividends and distributions.
SUB-ADVISER: Akros Capital, LLC | |
TOTAL NET ASSETS: AS OF DECEMBER 31, 2013 $3,283,366 | |
Top Ten Holdings ** (% of net assets) | ||||
(unaudited) | ||||
Barrick Gold Corp. | 1.6 | % | ||
Agnico Eagle Mines Ltd. | 1.6 | % | ||
Yamana Gold, Inc. | 1.1 | % | ||
Professional Diversity Network, Inc. | 0.8 | % | ||
Newmont Mining Corp. | 0.7 | % | ||
Synta Pharmaceuticals Corp. | 0.7 | % | ||
Alient Technology Series A | 0.6 | % | ||
Synergy Pharmaceuticals, Inc., Expiration: November 2016 | 0.5 | % | ||
Interleukin Genetics, Inc. | 0.4 | % | ||
Alcobra Ltd. | 0.4 | % | ||
% Fund Total | 8.4 | % |
** Excludes Short-Term Investments
Sectors (% of net assets) (unaudited) | ||||
¢ | 3.2 | % | Domestic Common Stocks | |
0.7 | % | Basic Materials | ||
2.3 | % | Consumer, Non-cyclical | ||
0.2 | % | Industrial | ||
¢ | 4.9 | % | Foreign Common Stocks | |
¢ | 0.6 | % | Domestic Private Placements | |
¢ | 0.5 | % | Warrants | |
¢ | 22.8 | % | Short-Term Investments | |
¢ | 1.1 | % | Investments Purchased with Proceeds from Securities Lending | |
33.1 | % | Total Market Value of Investments | ||
¢ | 66.9 | % | Other Assets in Excess of Liabilities, Net | |
100.0 | % | Total Net Assets |
2 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Performance Update
Quaker Event Arbitrage Fund (QEAAX, QEACX, QEAIX)
OBJECTIVES AND PRINCIPAL STRATEGIES
The Quaker Event Arbitrage Fund (the “Fund”) seeks to provide long-term growth of capital. The Fund generally invests in the securities of publicly traded companies involved in mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations or similar events.
Average Annualized Total Return | |||||||||||||||||||||
Expense | Inception | Commencement of Operations |
|||||||||||||||||||
Ratio | Date | One Year | Five Year | Ten Year | through 12/31/2013 | ||||||||||||||||
with | without | with | without | with | without | with | without | ||||||||||||||
sales | sales | sales | sales | sales | sales | sales | sales | ||||||||||||||
charge | charge | charge | charge | charge | charge | charge | charge | ||||||||||||||
Class A | 1.99% | 11/21/2003 | 6.06% | 12.28% | 7.78% | 9.02% | 5.54% | 6.13% | 5.87% | 6.46% | |||||||||||
Class C | 2.74% | 6/7/2010 | 11.47% | 11.47% | N/A | N/A | N/A | N/A | 3.28% | 3.28% | |||||||||||
Institutional Class | 1.74% | 6/7/2010 | 12.60% | 12.60% | N/A | N/A | N/A | N/A | 4.27% | 4.27% | |||||||||||
S&P 500® Total Return Index* | 32.39% | 32.39% | 17.94% | 17.94% | 7.41% | 7.41% | 8.10% | 8.10% |
* | The benchmark since inception returns are calculated for the period November 21, 2003 through December 31, 2013. |
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Performance data current to the most recent month end is available at www.quakerfunds.com or by calling us toll free at 800-220-8888. Total return includes reinvestment of dividends and capital gains.
Class A shares of the Fund have a maximum sales charge of 5.50%.
The performance table does not reflect the deduction of taxes that a shareholder might pay on fund distributions or the redemption of fund shares. Total return calculations reflect expense reimbursements and fee waivers in the applicable periods. See financial highlights for periods where fees were waived or reimbursed.
The Fund’s portfolio holdings may differ significantly from the securities held in the index and, unlike a mutual fund, an unmanaged index assumes no transaction costs, taxes, management fees or other expenses. You cannot invest directly in an index.
The S&P 500® Total Return Index (the “Index”) is a widely recognized, unmanaged index consisting of the approximately 500 largest companies in the United States as measured by market capitalization. The Index assumes reinvestment of all dividends and distributions.
ADVISER:
Quaker Funds, Inc. | |
TOTAL NET ASSETS: AS OF DECEMBER 31, 2013 $90,868,349 | |
Top Ten Holdings ** (% of net assets) | ||||
(unaudited) | ||||
Calgon Carbon Corp. | 3.3 | % | ||
Wausau Paper Corp. | 2.6 | % | ||
Fairpoint Communications, Inc. | 2.3 | % | ||
Ambac Financial Group, Inc. | 1.9 | % | ||
Riverbed Technology, Inc. | 1.9 | % | ||
Abercrombie & Fitch Co. | 1.8 | % | ||
Twenty-First Century Fox, Inc. | 1.8 | % | ||
Vodafone Group PLC-ADR | 1.7 | % | ||
News Corp. Class A | 1.7 | % | ||
FTD Cos., Inc. | 1.7 | % | ||
% Fund Total | 20.7 | % |
** | Includes Long Holdings Only and Excludes Short-Term Investments |
Sectors (% of net assets) (unaudited) | ||||
¢ | 69.4 | % | Domestic Common Stocks | |
4.9 | % | Basic Materials | ||
15.0 | % | Communications | ||
6.7 | % | Consumer, Cyclical | ||
14.3 | % | Consumer, Non-cyclical | ||
0.6 | % | Diversified | ||
3.2 | % | Energy | ||
2.6 | % | Financial | ||
1.0 | % | Healthcare | ||
10.1 | % | Industrial | ||
11.0 | % | Technology | ||
¢ | 7.6 | % | Foreign Common Stocks | |
¢ | 1.6 | % | Preferred Stocks | |
¢ | 2.6 | % | Real Estate Investment Trusts | |
¢ | 0.2 | % | Rights | |
¢ | 0.6 | % | Warrants | |
¢ | 2.6 | % | Asset Backed Securities | |
¢ | 1.4 | % | Convertible Bonds | |
¢ | 1.5 | % | Corporate Bonds | |
¢ | 0.2 | % | Foreign Government Note/Bond | |
¢ | 1.7 | % | Mortgage Backed Securities | |
¢ | 1.5 | % | Municipal Bonds | |
¢ | 0.6 | % | Term Loan | |
¢ | 2.1 | % | Purchased Options | |
¢ | 4.5 | % | Investments Purchased with Proceeds | |
from Securities Lending | ||||
98.1 | % | Total Market Value of Investments | ||
¢ | 1.9 | % | Other Assets in Excess of Liabilities, Net | |
100.0 | % | Total Net Assets |
2 0 1 3 S E M I - A N N U A L R E P O R T │ 3
|
Performance Update
Quaker Global Tactical Allocation Fund (QTRAX, QTRCX, QTRIX)
OBJECTIVES AND PRINCIPAL STRATEGIES
The Quaker Global Tactical Allocation Fund (the “Fund) seeks to provide long-term growth of capital. The Fund invests in the common stocks of U.S. companies and American Depository Receipts (“ADRs”) of foreign companies without regard to market capitalization. Under normal circumstances, the Fund will invest at least 40% of its total assets in common stocks and ADRs of foreign companies.
Average Annualized Total Return | |||||||||||||||||||||
Expense | Inception | Commencement of Operations |
|||||||||||||||||||
Ratio | Date | One Year | Five Year | Ten Year | through 12/31/2013 | ||||||||||||||||
with | without | with | without | with | without | with | without | ||||||||||||||
sales | sales | sales | sales | sales | sales | sales | sales | ||||||||||||||
charge | charge | charge | charge | charge | charge | charge | charge | ||||||||||||||
Class A | 2.83% | 5/1/2008 | 26.59% | 33.92% | 12.18% | 13.47% | N/A | N/A | -1.08% | -0.09% | |||||||||||
Class C | 3.58% | 5/1/2008 | 32.91% | 32.91% | 12.62% | 12.62% | N/A | N/A | -0.85% | -0.85% | |||||||||||
Institutional Class | 2.58% | 7/23/2008 | 34.32% | 34.32% | 13.68% | 13.68% | N/A | N/A | 2.42% | 2.42% | |||||||||||
MSCI World Index* | 26.68% | 26.68% | 15.02% | 15.02% | N/A | N/A | 3.89% | 3.89% |
* | The benchmark since inception returns are calculated since commencement of May 1, 2008 through December 31, 2013. |
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Performance data current to the most recent month end is available at www.quakerfunds.com or by calling us toll free at 800-220-8888. Total return includes reinvestment of dividends and capital gains.
Class A shares of the Fund have a maximum sales charge of 5.50%.
The performance table does not reflect the deduction of taxes that a shareholder might pay on fund distributions or the redemption of fund shares. Total return calculations reflect expense reimbursements and fee waivers in the applicable periods. See financial highlights for periods where fees were waived or reimbursed.
The Fund’s portfolio holdings may differ significantly from the securities held in the index and, unlike a mutual fund, an unmanaged index assumes no transaction costs, taxes, management fees or other expenses. You cannot invest directly in an index.
The Morgan Stanley Capital International World Index (“MSCI World Index”) measures developed–market equity performance throughout the world. The MSCI World Index assumes reinvestment of all dividends and distributions.
SUB-ADVISER:
DG Capital Management, Inc. | |
TOTAL NET ASSETS: AS OF DECEMBER 31, 2013 $7,862,282 | |
Top Ten Holdings ** (% of net assets) | ||||
(unaudited) | ||||
Biogen Idec, Inc. | 3.9 | % | ||
Gilead Sciences, Inc. | 3.4 | % | ||
Amgen, Inc. | 2.8 | % | ||
Koninklijke Philips NV - ADR | 2.6 | % | ||
Allied World Assurance Co. Holdings AG | 2.5 | % | ||
Adidas AG - ADR | 2.5 | % | ||
Morgan Stanley | 2.5 | % | ||
Google, Inc. Class A | 2.5 | % | ||
ACE Ltd. | 2.4 | % | ||
Arch Capital Group Ltd. | 2.4 | % | ||
% Fund Total | 27.5 | % |
** | Excludes Short-Term Investments |
Country Allocation (% of net assets) | ||||
(unaudited) | ||||
¢ | 96.8 | % | Common Stocks | |
1.4 | % | Belgium | ||
2.4 | % | Bermuda | ||
1.2 | % | Cayman Islands | ||
0.9 | % | Curacao | ||
2.1 | % | France | ||
4.8 | % | Germany | ||
1.7 | % | Ireland | ||
2.4 | % | Japan | ||
0.5 | % | Mexico | ||
3.7 | % | Netherlands | ||
10.2 | % | Switzerland | ||
8.0 | % | United Kingdom | ||
57.5 | % | United States | ||
¢ | 28.6 | % | Investments Purchased with Proceeds from Securities Lending | |
125.4 | % | Total Market Value of Investments | ||
¢ | (25.4) | % | Liabilities in Excess of Other Assets, Net | |
100.0 | % | Total Net Assets |
4 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Performance Update
Quaker Mid-Cap Value Fund (QMCVX, QMCCX, QMVIX)
OBJECTIVES AND PRINCIPAL STRATEGIES
The Quaker Mid-Cap Value Fund (the “Fund”) seeks to provide long-term growth of capital. Current income is not a significant investment consideration and any such income realized will be considered incidental to the Fund’s investment objective. The Fund invests primarily in common stocks comparable to the companies included in the Russell Midcap® Value Index (“Russell Index”).
Average Annualized Total Return | |||||||||||||||||||||
Expense | Inception | Commencement of Operations |
|||||||||||||||||||
Ratio | Date | One Year | Five Year | Ten Year | through 12/31/2013 | ||||||||||||||||
with | without | with | without | with | without | with | without | ||||||||||||||
sales | sales | sales | sales | sales | sales | sales | sales | ||||||||||||||
charge | charge | charge | charge | charge | charge | charge | charge | ||||||||||||||
Class A | 2.19% | 12/31/1997 | 23.80% | 30.99% | 17.87% | 19.21% | 6.42% | 7.02% | 7.18% | 7.55% | |||||||||||
Class C | 2.94% | 7/31/2000 | 30.01% | 30.01% | 18.34% | 18.34% | 6.23% | 6.23% | 7.99% | 7.99% | |||||||||||
Institutional Class | 1.94% | 11/21/2000 | 31.34% | 31.34% | 19.52% | 19.52% | 7.30% | 7.30% | 9.31% | 9.31% | |||||||||||
Russell Mid-Cap Value Index* | 33.46% | 33.46% | 21.16% | 21.16% | 10.25% | 10.25% | 9.45% | 9.45% | |||||||||||||
* | The benchmark since inception returns are calculated since commencement of December 31, 1997 through December 31, 2013. |
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Performance data current to the most recent month end is available at www.quakerfunds.com or by calling us toll free at 800-220-8888. Total return includes reinvestment of dividends and capital gains.
Class A shares of the Fund have a maximum sales charge of 5.50%.
The performance table does not reflect the deduction of taxes that a shareholder might pay on fund distributions or the redemption of fund shares. Total return calculations reflect expense reimbursements and fee waivers in the applicable periods. See financial highlights for periods where fees were waived or reimbursed.
The Fund’s portfolio holdings may differ significantly from the securities held in the index and, unlike a mutual fund, an unmanaged index assumes no transaction costs, taxes, management fees or other expenses. You cannot invest directly in an index.
The Russell Midcap® Value Index is a widely recognized, unmanaged index of companies included in the Russell 1000 Index with current market capitalizations between $888.21 million and $26.16 billion. The Russell Midcap® Value Index assumes reinvestment of all dividends.
SUB-ADVISER:
Kennedy Capital Management, Inc. | |
TOTAL NET ASSETS: AS OF DECEMBER 31, 2013 $9,500,321 | |
Top Ten Holdings ** (% of net assets) | ||||
(unaudited) | ||||
Protective Life Corp. | 2.5 | % | ||
Parker Hannifin Corp. | 2.5 | % | ||
Southwest Airlines Co. | 2.5 | % | ||
Axiall Corp. | 2.3 | % | ||
Foot Locker, Inc. | 2.3 | % | ||
Hospira, Inc. | 2.3 | % | ||
Steel Dynamics, Inc. | 2.2 | % | ||
Harman International Industries, Inc. | 2.2 | % | ||
AGCO Corp. | 2.2 | % | ||
Zimmer Holdings, Inc. | 2.2 | % | ||
% Fund Total | 23.2 | % |
** | Excludes Short-Term Investments |
Sectors (% of net assets) (unaudited) | ||||
¢ | 84.6 | % | Domestic Common Stocks | |
5.8 | % | Basic Materials | ||
3.1 | % | Communications | ||
14.9 | % | Consumer, Cyclical | ||
8.3 | % | Consumer, Non-cyclical | ||
6.7 | % | Energy | ||
12.6 | % | Financial | ||
16.4 | % | Industrial | ||
9.6 | % | Technology | ||
7.2 | % | Utilities | ||
¢ | 5.0 | % | Foreign Common Stocks | |
¢ | 8.5 | % | Real Estate Investment Trusts | |
¢ | 41.7 | % | Investments Purchased with Proceeds | |
from Securities Lending | ||||
139.8 | % | Total Market Value of Investments | ||
¢ | (39.8) | % | Liabilities in Excess of Other Assets, Net | |
100.0 | % | Total Net Assets |
2 0 1 3 S E M I - A N N U A L R E P O R T │ 5
|
Performance Update
Quaker Small-Cap Growth Tactical Allocation Fund (QGASX, QGCSX, QGISX)
OBJECTIVES AND PRINCIPAL STRATEGIES
The Quaker Small-Cap Growth Tactical Allocation Fund (the “Fund”) seeks to provide long-term growth of capital. The Fund invests at least 80% of its total assets in common stocks, American Depository Receipts (“ADRs”) and foreign securities traded on U.S. stock exchanges with market capitalizations within the range of companies included in the Russell 2000® Growth Index (the “Russell 2000 Index”).
Average Annualized Total Return | |||||||||||||||||||||
Expense | Inception | Commencement of Operations |
|||||||||||||||||||
Ratio | Date | One Year | Five Year | Ten Year | through 12/31/2013 | ||||||||||||||||
with | without | with | without | with | without | with | without | ||||||||||||||
sales | sales | sales | sales | sales | sales | sales | sales | ||||||||||||||
charge | charge | charge | charge | charge | charge | charge | charge | ||||||||||||||
Class A | 2.50% | 9/30/2008 | 9.52% | 15.90% | 5.13% | 6.33% | N/A | N/A | 3.72% | 4.84% | |||||||||||
Class C | 3.25% | 9/30/2008 | 15.08% | 15.08% | 5.51% | 5.51% | N/A | N/A | 4.05% | 4.05% | |||||||||||
Institutional Class | 2.25% | 9/30/2008 | 16.26% | 16.26% | 6.63% | 6.63% | N/A | N/A | 5.12% | 5.12% | |||||||||||
Russell 2000 Growth Index* | 43.30% | 43.30% | 22.58% | 22.58% | N/A | N/A | 14.19% | 14.19% | |||||||||||||
* | The benchmark since inception returns are calculated since commencement of September 30, 2008 through December 31, 2013. |
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Performance data current to the most recent month end is available at www.quakerfunds.com or by calling us toll free at 800-220-8888. Total return includes reinvestment of dividends and capital gains.
Class A shares of the Fund have a maximum sales charge of 5.50%.
The performance table does not reflect the deduction of taxes that a shareholder might pay on fund distributions or the redemption of fund shares. Total return calculations reflect expense reimbursements and fee waivers in the applicable periods. See financial highlights for periods where fees were waived or reimbursed.
The Fund’s portfolio holdings may differ significantly from the securities held in the index and, unlike a mutual fund, an unmanaged index assumes no transaction costs, taxes, management fees or other expenses. You cannot invest directly in an index.
The Russell 2000® Growth Index in an unmanaged index that measures the performance of the small-cap growth segment of the U.S. equity universe. It includes the Russell 2000 companies with higher price-to-value ratios and higher forecasted growth values. The Index assumes reinvestment of all dividends and distributions.
SUB-ADVISER:
Century Management, Inc. | |
TOTAL NET ASSETS: AS OF DECEMBER 31, 2013 $2,490,030 | |
Top Ten Holdings ** (% of net assets) | ||||
(unaudited) | ||||
Harris Teeter Supermarkets, Inc. | 6.3 | % | ||
ProShares UltraPro Short Russell 2000 | 4.9 | % | ||
Direxion Daily Small Cap Bear 3X Shares | 4.9 | % | ||
Seabridge Gold, Inc. | 4.7 | % | ||
Given Imaging Ltd. | 4.3 | % | ||
Maxwell Technologies, Inc. | 3.8 | % | ||
Layne Christensen Co. | 3.7 | % | ||
MoSys, Inc. | 3.1 | % | ||
Advanced Energy Industries, Inc. | 2.7 | % | ||
Aspen Insurance Holdings Ltd. | 2.7 | % | ||
% Fund Total | 41.1 | % |
** | Excludes Short-Term Investments |
Sectors (% of net assets) (unaudited) | ||||
¢ | 59.9 | % | Domestic Common Stocks | |
3.0 | % | Basic Materials | ||
6.3 | % | Communications | ||
3.0 | % | Consumer, Cyclical | ||
15.4 | % | Consumer, Non-cyclical | ||
4.3 | % | Energy | ||
2.3 | % | Financial | ||
14.6 | % | Industrial | ||
11.0 | % | Technology | ||
¢ | 16.3 | % | Foreign Common Stocks | |
¢ | 9.8 | % | Exchange Traded Funds | |
¢ | 26.5 | % | Investments Purchased with Proceeds from Securities Lending | |
112.5 | % | Total Market Value of Investments | ||
¢ | (12.5) | % | Liabilities in Excess of Other Assets, Net | |
100.0 | % | Total Net Assets |
6 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Performance Update
Quaker Small-Cap Value Fund (QUSVX, QSVCX, QSVIX)
OBJECTIVES AND PRINCIPAL STRATEGIES
The Quaker Small-Cap Value Fund (the “Fund”) seeks to provide long-term growth of capital. Current income is not a significant investment consideration and any such income realized will be considered as incidental to the Fund’s investment objective. The Fund invests primarily in common stocks of U.S. companies with market capitalizations similar to the market capitalizations of companies included in the Russell 2000® Index and Russell 2500™ Index. The Fund invests in companies considered by the Fund’s sub-adviser to have consistent earnings and above-average core assets, selling at relatively low market valuations, with attractive growth and momentum characteristics.
Average Annualized Total Return | |||||||||||||||||||||
Expense | Inception | Commencement of Operations |
|||||||||||||||||||
Ratio | Date | One Year | Five Year | Ten Year | through 12/31/2013 | ||||||||||||||||
with | without | with | without | with | without | with | without | ||||||||||||||
sales | sales | sales | sales | sales | sales | sales | sales | ||||||||||||||
charge | charge | charge | charge | charge | charge | charge | charge | ||||||||||||||
Class A | 1.93% | 11/25/1996 | 30.09% | 37.66% | 17.27% | 18.61% | 8.15% | 8.76% | 10.37% | 10.73% | |||||||||||
Class C | 2.68% | 7/28/2000 | 36.60% | 36.60% | 17.70% | 17.70% | 7.95% | 7.95% | 9.57% | 9.57% | |||||||||||
Institutional Class | 1.68% | 9/12/2000 | 37.99% | 37.99% | 18.89% | 18.89% | 9.03% | 9.03% | 9.83% | 9.83% | |||||||||||
Russell 2000® Index* | 38.82% | 38.82% | 20.08% | 20.08% | 9.07% | 9.07% | 8.66% | 8.66% |
* | The benchmark since inception returns are calculated since commencement of November 25, 1996 through December 31, 2013. |
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Performance data current to the most recent month end is available at www.quakerfunds.com or by calling us toll free at 800-220-8888. Total return includes reinvestment of dividends and capital gains.
Class A shares of the Fund have a maximum sales charge of 5.50%
The performance table does not reflect the deduction of taxes that a shareholder might pay on fund distributions or the redemption of fund shares. Total return calculations reflect expense reimbursements and fee waivers in the applicable periods. See financial highlights for periods where fees were waived or reimbursed.
The Fund’s portfolio holdings may differ significantly from the securities held in the index and, unlike a mutual fund, an unmanaged index assumes no transaction costs, taxes, management fees or other expenses. You cannot invest directly in an index.
The Russell 2000® Index is a widely recognized, unmanaged index comprised of the smallest 2000 companies represented in the Russell 3000® Index. The Russell 2000 Index currently represents approximately 8% of the market capitalization of the Russell 3000® Index.
SUB-ADVISER:
Aronson Johnson Ortiz, L.P. | |
TOTAL NET ASSETS: AS OF DECEMBER 31, 2013 $37,887,531 | |
Top Ten Holdings ** (% of net assets) | ||||
(unaudited) | ||||
United Therapeutics Corp. | 1.4 | % | ||
Huntington Ingalls Industries, Inc. | 1.3 | % | ||
Nu Skin Enterprises, Inc. | 1.3 | % | ||
Assurant, Inc. | 1.3 | % | ||
Lear Corp. | 1.3 | % | ||
Huntington Bancshares, Inc. | 1.3 | % | ||
Exelis, Inc. | 1.3 | % | ||
Domtar Corp. | 1.2 | % | ||
VAALCO Energy, Inc. | 1.2 | % | ||
Dupont Fabros Technology, Inc. | 1.2 | % | ||
% Fund Total | 12.8 | % |
** | Excludes Short-Term Investments |
Sectors (% of net assets) (unaudited) | ||||
¢ | 84.2 | % | Domestic Common Stocks | |
4.2 | % | Basic Materials | ||
4.7 | % | Communications | ||
13.8 | % | Consumer, Cyclical | ||
18.4 | % | Consumer, Non-cyclical | ||
5.6 | % | Energy | ||
12.8 | % | Financial | ||
17.3 | % | Industrial | ||
4.3 | % | Technology | ||
3.1 | % | Utilities | ||
¢ | 10.8 | % | Foreign Common Stocks | |
¢ | 4.4 | % | Real Estate Investment Trusts | |
¢ | 21.2 | % | Investments Purchased with Proceeds from Securities Lending | |
120.6 | % | Total Market Value of Investments | ||
¢ | (20.6) | % | Liabilities in Excess of Other Assets, Net | |
100.0 | % | Total Net Assets |
2 0 1 3 S E M I - A N N U A L R E P O R T │ 7
|
Performance Update
Quaker Strategic Growth Fund (QUAGX, QAGCX, QAGIX)
OBJECTIVES AND PRINCIPAL STRATEGIES
The Quaker Strategic Growth Fund (the “Fund”) seeks to provide long-term growth of capital. Current income is not a significant investment consideration. The Fund invests primarily in equity securities of domestic U.S. companies which the Fund’s sub-adviser believes show a high probability for superior growth.
Average Annualized Total Return | |||||||||||||||||||||
Commencement | |||||||||||||||||||||
Expense | Inception | of Operations | |||||||||||||||||||
Ratio | Date | One Year | Five Year | Ten Year | through 12/31/2013 | ||||||||||||||||
with | without | with | without | with | without | with | without | ||||||||||||||
sales | sales | sales | sales | sales | sales | sales | sales | ||||||||||||||
charge | charge | charge | charge | charge | charge | charge | charge | ||||||||||||||
Class A | 2.24% | 11/25/1996 | 30.95% | 38.57% | 11.91% | 13.18% | 5.90% | 6.50% | 11.58% | 11.95% | |||||||||||
Class C | 2.99% | 7/11/2000 | 37.52% | 37.52% | 12.32% | 12.32% | 5.70% | 5.70% | 3.88% | 3.88% | |||||||||||
Institutional Class | 1.99% | 7/20/2000 | 38.86% | 38.86% | 13.41% | 13.41% | 6.75% | 6.75% | 4.80% | 4.80% | |||||||||||
S&P 500® Total Return Index* | 32.39% | 32.39% | 17.94% | 17.94% | 7.41% | 7.41% | 7.30% | 7.30% |
* | The benchmark since inception returns are calculated since commencement of November 25, 1996 through December 31, 2013. |
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Performance data current to the most recent month end is available at www.quakerfunds.com or by calling us toll free at 800-220-8888. Total return includes reinvestment of dividends and capital gains.
Class A shares of the Fund have a maximum sales charge of 5.50%.
The performance table does not reflect the deduction of taxes that a shareholder might pay on fund distributions or the redemption of fund shares. Total return calculations reflect expense reimbursements and fee waivers in the applicable periods. See financial highlights for periods where fees were waived or reimbursed.
The Fund’s portfolio holdings may differ significantly from the securities held in the index and, unlike a mutual fund, an unmanaged index assumes no transaction costs, taxes, management fees or other expenses. You cannot invest directly in an index.
The S&P 500® Total Return Index is a widely recognized, unmanaged index consisting of the approximately 500 largest companies in the United States as measured by market capitalization. The Index assumes reinvestment of all dividends and distributions.
SUB-ADVISER:
DG Capital Management, Inc. | |
TOTAL NET ASSETS: AS OF DECEMBER 31, 2013 $173,257,224 | |
Top Ten Holdings ** (% of net assets) | ||||
(unaudited) | ||||
Biogen Idec, Inc. | 4.5 | % | ||
Gilead Sciences, Inc. | 3.5 | % | ||
Amgen, Inc. | 3.0 | % | ||
Google, Inc. Class A | 2.6 | % | ||
Morgan Stanley | 2.5 | % | ||
ACE Ltd. | 2.3 | % | ||
Allied World Assurance Co. Holdings AG | 2.2 | % | ||
Novartis AG - ADR | 2.2 | % | ||
CBS Corp. | 2.1 | % | ||
Twenty-First Century Fox, Inc. Class A | 2.1 | % | ||
% Fund Total | 27.0 | % |
** | Excludes Short-Term Investments |
Sectors (% of net assets) (unaudited) | ||||
¢ | 74.7 | % | Domestic Common Stocks | |
1.5 | % | Basic Materials | ||
16.8 | % | Communications | ||
11.7 | % | Consumer, Cyclical | ||
26.9 | % | Consumer, Non-cyclical | ||
2.0 | % | Energy | ||
9.1 | % | Financial | ||
2.0 | % | Industrial | ||
4.7 | % | Technology | ||
¢ | 20.5 | % | Foreign Common Stocks | |
¢ | 7.0 | % | Investments Purchased with Proceeds from Securities Lending | |
102.2 | % | Total Market Value of Investments | ||
¢ | (2.2) | % | Liabilities in Excess of Other Assets, Net | |
100.0 | % | Total Net Assets |
8 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Expense Information (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including applicable sales charges and redemption fees; and (2) ongoing costs,including management fees, distribution (12b-1) fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the (six-month) period and held for the entire period July 1, 2013 through December 31, 2013.
ACTUAL EXPENSES
The first section of each table below provides information about actual account values and actual expenses for each of the Funds. You may use this information, 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 applicable 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 section of each 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 the Fund to other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 9
|
Expense Information (unaudited)
Beginning Account | Annualized Expense | Ending Account | Expenses Paid | |||||||||||||||||
Value 7/01/13 | Ratio For the Period | Value 12/31/2013 | During the Period* | |||||||||||||||||
Akros Absolute Return | ||||||||||||||||||||
Actual return based on actual return of: | ||||||||||||||||||||
Class A | 0.65 | % | $ | 1,000.00 | 3.30 | % | $ | 1,006.50 | $ | 16.69 | ||||||||||
Class C | 0.13 | % | 1,000.00 | 4.05 | % | 1,001.30 | 20.43 | |||||||||||||
Institutional Class | 0.64 | % | 1,000.00 | 3.05 | % | 1,006.40 | 15.42 | |||||||||||||
Hypothetical return based on assumed 5% return: | ||||||||||||||||||||
Class A | 1,000.00 | 3.30 | % | 1,008.57 | 16.71 | |||||||||||||||
Class C | 1,000.00 | 4.05 | % | 1,004.79 | 20.47 | |||||||||||||||
Institutional Class | 1,000.00 | 3.05 | % | 1,009.83 | 15.45 | |||||||||||||||
Event Arbitrage | ||||||||||||||||||||
Actual return based on actual return of: | ||||||||||||||||||||
Class A | 6.23 | % | 1,000.00 | 1.99 | % | 1,062.30 | 10.34 | |||||||||||||
Class C | 5.88 | % | 1,000.00 | 2.74 | % | 1,058.80 | 14.22 | |||||||||||||
Institutional Class | 6.39 | % | 1,000.00 | 1.74 | % | 1,063.90 | 9.05 | |||||||||||||
Hypothetical return based on assumed 5% return: | ||||||||||||||||||||
Class A | 1,000.00 | 1.99 | % | 1,015.17 | 10.11 | |||||||||||||||
Class C | 1,000.00 | 2.74 | % | 1,011.39 | 13.89 | |||||||||||||||
Institutional Class | 1,000.00 | 1.74 | % | 1,016.43 | 8.84 | |||||||||||||||
Global Tactical Allocation | ||||||||||||||||||||
Actual return based on actual return of: | ||||||||||||||||||||
Class A | 19.88 | % | 1,000.00 | 2.37 | % | 1,198.80 | 13.13 | |||||||||||||
Class C | 19.42 | % | 1,000.00 | 3.12 | % | 1,194.20 | 17.26 | |||||||||||||
Institutional Class | 20.02 | % | 1,000.00 | 2.12 | % | 1,200.20 | 11.76 | |||||||||||||
Hypothetical return based on assumed 5% return: | ||||||||||||||||||||
Class A | 1,000.00 | 2.37 | % | 1,013.26 | 12.03 | |||||||||||||||
Class C | 1,000.00 | 3.12 | % | 1,009.48 | 15.80 | |||||||||||||||
Institutional Class | 1,000.00 | 2.12 | % | 1,014.52 | 10.76 | |||||||||||||||
Mid-Cap Value | ||||||||||||||||||||
Actual return based on actual return of: | ||||||||||||||||||||
Class A | 13.95 | % | 1,000.00 | 2.00 | % | 1,139.50 | 10.79 | |||||||||||||
Class C | 13.48 | % | 1,000.00 | 2.75 | % | 1,134.80 | 14.80 | |||||||||||||
Institutional Class | 14.12 | % | 1,000.00 | 1.75 | % | 1,141.20 | 9.44 | |||||||||||||
Hypothetical return based on assumed 5% return: | ||||||||||||||||||||
Class A | 1,000.00 | 2.00 | % | 1,015.12 | 10.16 | |||||||||||||||
Class C | 1,000.00 | 2.75 | % | 1,011.34 | 13.94 | |||||||||||||||
Institutional Class | 1,000.00 | 1.75 | % | 1,016.38 | 8.89 | |||||||||||||||
Small-Cap Growth Tactical Allocation | ||||||||||||||||||||
Actual return based on actual return of: | ||||||||||||||||||||
Class A | 7.92 | % | 1,000.00 | 2.55 | % | 1,079.20 | 13.36 | |||||||||||||
Class C | 7.59 | % | 1,000.00 | 3.30 | % | 1,075.90 | 17.27 | |||||||||||||
Institutional Class | 8.13 | % | 1,000.00 | 2.30 | % | 1,081.30 | 12.07 | |||||||||||||
Hypothetical return based on assumed 5% return: | ||||||||||||||||||||
Class A | 1,000.00 | 2.55 | % | 1,012.35 | 12.93 | |||||||||||||||
Class C | 1,000.00 | 3.30 | % | 1,008.57 | 16.71 | |||||||||||||||
Institutional Class | 1,000.00 | 2.30 | % | 1,013.61 | 11.67 | |||||||||||||||
Small-Cap Value | ||||||||||||||||||||
Actual return based on actual return of: | ||||||||||||||||||||
Class A | 18.87 | % | 1,000.00 | 1.81 | % | 1,188.70 | 9.99 | |||||||||||||
Class C | 18.37 | % | 1,000.00 | 2.56 | % | 1,183.70 | 14.09 | |||||||||||||
Institutional Class | 18.94 | % | 1,000.00 | 1.56 | % | 1,189.40 | 8.61 | |||||||||||||
Hypothetical return based on assumed 5% return: | ||||||||||||||||||||
Class A | 1,000.00 | 1.81 | % | 1,016.08 | 9.20 | |||||||||||||||
Class C | 1,000.00 | 2.56 | % | 1,012.30 | 12.98 | |||||||||||||||
Institutional Class | 1,000.00 | 1.56 | % | 1,017.34 | 7.93 | |||||||||||||||
Strategic Growth | ||||||||||||||||||||
Actual return based on actual return of: | ||||||||||||||||||||
Class A | 19.63 | % | 1,000.00 | 2.18 | % | 1,196.30 | 12.07 | |||||||||||||
Class C | 19.20 | % | 1,000.00 | 2.93 | % | 1,192.00 | 16.19 | |||||||||||||
Institutional Class | 19.76 | % | 1,000.00 | 1.93 | % | 1,197.60 | 10.69 | |||||||||||||
Hypothetical return based on assumed 5% return: | ||||||||||||||||||||
Class A | 1,000.00 | 2.18 | % | 1,014.22 | 11.07 | |||||||||||||||
Class C | 1,000.00 | 2.93 | % | 1,010.44 | 14.85 | |||||||||||||||
Institutional Class | 1,000.00 | 1.93 | % | 1,015.48 | 9.80 |
* | Expenses are equal to the Funds’ annualized six-month expense ratios (including reimbursements) multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half year (184) divided by 365 to reflect the one-half year period. |
10 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Quaker Akros Absolute Return Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Domestic Common Stocks — 3.2% | ||||||||
Basic Materials — 0.7% | ||||||||
Mining — 0.7% | ||||||||
Newmont Mining Corp. | 1,000 | $ | 23,030 | |||||
Total Basic Materials (Cost $43,107) | 23,030 | |||||||
Consumer, Non-cyclical — 2.3% | ||||||||
Beverages — 0.4% | ||||||||
Pulse Beverage Corp. (a)(b) | 30,000 | 12,300 | ||||||
Commercial Services — 0.8% | ||||||||
Professional Diversity Network, Inc. (a)(b) | 6,000 | 27,660 | ||||||
Pharmaceuticals — 1.1% | ||||||||
Interleukin Genetics, Inc. (a) | 40,000 | 14,000 | ||||||
Synta Pharmaceuticals Corp. (a) | 4,000 | 20,960 | ||||||
34,960 | ||||||||
Total Consumer, Non-cyclical (Cost $118,027) | 74,920 | |||||||
Industrial — 0.2% | ||||||||
Miscellaneous Manufacturing — 0.2% | ||||||||
LiqTech International, Inc. (a) | 4,000 | 9,000 | ||||||
Total Industrial (Cost $9,764) | 9,000 | |||||||
Total Domestic Common Stocks (Cost $170,898) | 106,950 | |||||||
Foreign Common Stocks — 4.9% | ||||||||
Bermuda — 0.2% | ||||||||
Semiconductors — 0.2% | ||||||||
Marvell Technology Group Ltd. | 500 | 7,190 | ||||||
Total Bermuda (Cost $6,778) | 7,190 | |||||||
Canada — 4.3% | ||||||||
Mining — 4.3% | ||||||||
Agnico Eagle Mines, Ltd. | 2,000 | 52,760 | ||||||
Barrick Gold Corp. | 3,000 | 52,890 | ||||||
Yamana Gold, Inc. | 4,000 | 34,480 | ||||||
140,130 | ||||||||
Total Canada (Cost $167,109) | 140,130 | |||||||
Israel — 0.4% | ||||||||
Pharmaceuticals — 0.4% | ||||||||
Alcobra Ltd. (a) | 689 | 12,395 | ||||||
Total Israel (Cost $11,894) | 12,395 | |||||||
Total Foreign Common Stocks (Cost $185,781) | 159,715 | |||||||
Domestic Private Placements — 0.6% | ||||||||
Technology — 0.6% | ||||||||
Alien Technology (a)^* | 64 | 253 | ||||||
Alient Technology Series A (a)^* | 4,627 | 18,277 | ||||||
Total Technology (Cost $123,610) | 18,530 | |||||||
Total Domestic Private Placements (Cost $123,610) | 18,530 | |||||||
Warrants — 0.5% | ||||||||
Synergy Pharmaceuticals, Inc., Expiration: November, 2016 (a) | 8,565 | 18,415 | ||||||
Total Warrants (Cost $21,635) | 18,415 |
Par Value | Fair Value | |||||||
Short-Term Investments — 22.8% | ||||||||
U.S. Treasury Bills — 22.8% | ||||||||
U.S. Treasury Bills, 0.12%, 02/06/2014 —® | $ | 748,000 | $ | 747,910 | ||||
Total Short-Term Investments (Cost $747,910) | 747,910 | |||||||
Number of Shares | ||||||||
Investments Purchased with Proceeds from Securities Lending — 1.1% | ||||||||
Money Market Funds — 1.1% | ||||||||
Mount Vernon Securities Lending Trust Prime Portfolio, 0.17% (c)(d) | 35,800 | 35,800 | ||||||
Total Investments Purchased with Proceeds from Securities Lending (Cost $35,800) | 35,800 | |||||||
Total Investments | ||||||||
(Cost $1,285,634) — 33.1% | 1,087,320 | |||||||
Other Assets in Excess of Liabilities, Net 66.9% | 2,196,046 | |||||||
Total Net Assets — 100.0% | $ | 3,283,366 | ||||||
Schedule of Securities Sold Short (e) | ||||||||
Common Stocks | ||||||||
Canadian Pacific Railway Ltd. | 500 | 75,660 | ||||||
Chipotle Mexican Grill, Inc. | 100 | 53,278 | ||||||
Cincinnati Financial Corp. | 2,150 | 112,596 | ||||||
Sherwin-Williams Co. | 1,000 | 183,500 | ||||||
Toro Co. | 1,400 | 89,040 | ||||||
Total Common Stocks | 514,074 | |||||||
Exchange-Traded Funds | ||||||||
iShares Dow Jones U.S. Healthcare Providers Index Fund | 2,000 | 186,500 | ||||||
SPDR S&P Homebuilders | 1,900 | 63,270 | ||||||
SPDR S&P Retail | 3,000 | 264,300 | ||||||
Total Exchange-Traded Funds | 514,070 | |||||||
Total Securities Sold Short (Proceeds $607,040) | $ | 1,028,144 |
(a) | Non-income producing security. |
(b) | All or a portion of the security out on loan. |
(c) | The rate shown is the annualized seven-day effective yield at period end. |
(d) | Represents investments of collateral received from securities lending transactions. |
(e) | Securities sold short are non-income producing. |
^ | Indicates a fair valued security. Total market value for fair valued securities is $18,530, representing 0.6% of net assets and Level 3 securities. |
* | Indicates an illiquid security. Total market value for illiquid securities is $18,530, representing 0.6% of net assets. |
— | Level 2 securities. |
® | Yield to maturity. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 11
|
Schedule of Investments
Quaker Event Arbitrage Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Domestic Common Stocks — 69.4% | ||||||||
Basic Materials — 4.9% | ||||||||
Chemicals — 1.7% | ||||||||
Ashland, Inc. | 15,500 | $ | 1,504,120 | |||||
Forest Products & Paper — 3.2% | ||||||||
International Paper Co. | 6,100 | 299,083 | ||||||
KapStone Paper and Packaging Corp. (a) | 4,900 | 273,714 | ||||||
Wausau Paper Corp. (b) | 187,100 | 2,372,428 | ||||||
2,945,225 | ||||||||
Total Basic Materials (Cost $4,115,429) | 4,449,345 | |||||||
Communications — 15.0% | ||||||||
Internet — 2.7% | ||||||||
30DC, Inc. (a) — | 50,000 | 5,500 | ||||||
Equinix, Inc. (a) | 1,700 | 301,665 | ||||||
FTD Cos., Inc. (a) | 47,500 | 1,547,550 | ||||||
Unwired Planet, Inc. (a)(b) | 431,372 | 595,293 | ||||||
2,450,008 | ||||||||
Media — 5.6% | ||||||||
News Corp. Class A (a) | 87,200 | 1,571,344 | ||||||
Time Warner Cable, Inc. | 6,500 | 880,750 | ||||||
Tribune Co. Class A (a)(b) | 12,500 | 967,500 | ||||||
Twenty-First Century Fox, Inc. | 47,664 | 1,649,175 | ||||||
5,068,769 | ||||||||
Telecommunications — 6.7% | ||||||||
Comverse, Inc. (a)(b) | 34,700 | 1,346,360 | ||||||
Fairpoint Communications, Inc. (a) | 183,500 | 2,075,385 | ||||||
Telephone & Data Systems, Inc. | 51,100 | 1,317,358 | ||||||
tw telecom Inc. (a) | 44,900 | 1,368,103 | ||||||
6,107,206 | ||||||||
Total Communications (Cost $12,434,751) | 13,625,983 | |||||||
Consumer, Cyclical — 6.7% | ||||||||
Lodging — 0.0% | ||||||||
Trump Entertainment Resorts, Inc. (a)^* | 8,949 | 0 | ||||||
Trump Entertainment Resorts, Inc. (a)^* | 135 | 409 | ||||||
409 | ||||||||
Retail — 6.7% | ||||||||
Abercrombie & Fitch Co. | 51,000 | 1,678,410 | ||||||
CST Brands, Inc. | 27,300 | 1,002,456 | ||||||
Darden Restaurants, Inc. | 26,300 | 1,429,931 | ||||||
Regis Corp. | 106,000 | 1,538,060 | ||||||
The Wet Seal, Inc. (a)(b) | 164,500 | 449,085 | ||||||
6,097,942 | ||||||||
Total Consumer, Cyclical (Cost $6,148,939) | 6,098,351 | |||||||
Consumer, Non-cyclical — 14.3% | ||||||||
Biotechnology — 0.0% | ||||||||
Maxygen, Inc. (a)(b)^ | 68,000 | 2,040 | ||||||
Commercial Services — 3.1% | ||||||||
Science Applications International Corp. | 105 | 3,472 | ||||||
Sotheby’s | 25,500 | 1,356,600 | ||||||
The Western Union Co. | 83,200 | 1,435,200 | ||||||
2,795,272 | ||||||||
Cosmetics & Personal Care — 0.5% | ||||||||
Physicians Formula Holdings, Inc. (a)^* | 95,600 | 468,440 |
Number of Shares | Fair Value | |||||||
Domestic Common Stocks (Continued) | ||||||||
Food — 4.1% | ||||||||
Harris Teeter Supermarkets, Inc. | 20,000 | $ | 987,000 | |||||
Mondelez International, Inc. | 37,300 | 1,316,690 | ||||||
WhiteWave Foods Co. Class A (a) | 62,500 | 1,433,750 | ||||||
3,737,440 | ||||||||
Healthcare-Products — 4.9% | ||||||||
Hologic, Inc. (a) | 62,300 | 1,392,405 | ||||||
Life Technologies Corp. (a) | 11,700 | 886,860 | ||||||
Solta Medical, Inc. (a) | 248,000 | 731,600 | ||||||
Synovis Life Technologies, Inc. (a)^* | 43,000 | 30,410 | ||||||
Volcano Corp. (a)(b) | 65,300 | 1,426,805 | ||||||
4,468,080 | ||||||||
Pharmaceuticals — 1.7% | ||||||||
INYX, Inc. (a) | 167,850 | 151 | ||||||
Savient Pharmaceuticals, Inc. (a)^+ | 1,000 | 697,500 | ||||||
ViroPharma Inc (a) | 16,000 | 797,600 | ||||||
1,495,251 | ||||||||
Schools — 0.0% | ||||||||
Bridgepoint Education, Inc. (a) | 57 | 1,010 | ||||||
Total Consumer, Non-cyclical (Cost $12,347,843) | 12,967,533 | |||||||
Diversified — 0.6% | ||||||||
Holding Companies-Diversified — 0.6% | ||||||||
Levy Acquisition Corp. (a) | 52,800 | 528,528 | ||||||
Stoneleigh Partners Acquisition Corp. (a)^* | 400 | 0 | ||||||
528,528 | ||||||||
Total Diversified (Cost $527,088) | 528,528 | |||||||
Energy — 3.2% | ||||||||
Oil & Gas — 3.2% | ||||||||
Devon Energy Corp. | 25,000 | 1,546,750 | ||||||
QEP Resources, Inc. | 44,500 | 1,363,925 | ||||||
2,910,675 | ||||||||
Total Energy (Cost $2,979,528) | 2,910,675 | |||||||
Financial — 2.6% | ||||||||
Insurance — 1.9% | ||||||||
Ambac Financial Group, Inc. (a) | 69,700 | 1,711,832 | ||||||
Savings & Loans — 0.7% | ||||||||
Fox Chase Bancorp, Inc. | 37,635 | 654,096 | ||||||
Total Financial (Cost $2,190,543) | 2,365,928 | |||||||
Healthcare — 1.0% | ||||||||
Healthcare-Services — 1.0% | ||||||||
Diagnostic Services Holdings, Inc. (a)^ | 10,221 | 870,232 | ||||||
Total Healthcare (Cost $735,000) | 870,232 | |||||||
Industrial — 10.1% | ||||||||
Aerospace & Defense — 1.5% | ||||||||
API Technologies Corp. (a)(b) | 398,070 | 1,357,419 | ||||||
Electronics — 1.7% | ||||||||
Agilent Technologies, Inc | 26,600 | 1,521,254 | ||||||
Environmental Control — 3.3% | ||||||||
Calgon Carbon Corp. (a) | 148,000 | 3,044,360 | ||||||
Metal Fabricate/Hardware — 1.6% | ||||||||
Timken Co. | 26,500 | 1,459,355 |
The accompanying notes are an integral part of the financial statements.
12 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Schedule of Investments
Quaker Event Arbitrage Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Domestic Common Stocks (Continued) | ||||||||
Miscellaneous Manufacturing — 1.6% | ||||||||
LSB Industries, Inc. (a) | 35,000 | $ | 1,435,700 | |||||
Packaging & Containers — 0.4% | ||||||||
Rock Tenn Co. | 3,800 | 399,038 | ||||||
Total Industrial (Cost $8,768,911) | 9,217,126 | |||||||
Technology — 11.0% | ||||||||
Computers — 4.7% | ||||||||
Computer Horizons Corp. ^ | 65,000 | 0 | ||||||
EMC Corp. (b) | 48,000 | 1,207,200 | ||||||
NetApp, Inc. | 33,800 | 1,390,532 | ||||||
Riverbed Technology, Inc. (a) | 93,000 | 1,681,440 | ||||||
4,279,172 | ||||||||
Semiconductors — 3.3% | ||||||||
DSP Group, Inc. (a) | 92,685 | 899,971 | ||||||
Emulex Corp. (a) | 50,000 | 358,000 | ||||||
Integrated Device Technology, Inc. (a) | 45,000 | 458,550 | ||||||
Tessera Technologies, Inc. (b) | 67,100 | 1,322,541 | ||||||
3,039,062 | ||||||||
Software — 3.0% | ||||||||
Contra Softbrands, Inc. (a)^* | 5,000 | 0 | ||||||
Network-1 Technologies, Inc. (a) | 235,000 | 371,300 | ||||||
Nuance Communications, Inc. (a) | 70,100 | 1,065,520 | ||||||
Seachange International, Inc. (a) | 105,005 | 1,276,861 | ||||||
2,713,681 | ||||||||
Total Technology (Cost $9,505,622) | 10,031,915 | |||||||
Total Domestic Common Stocks | ||||||||
(Cost $59,753,654) | 63,065,616 | |||||||
Foreign Common Stocks — 7.6% | ||||||||
Bermuda — 1.0% | ||||||||
Real Estate — 1.0% | ||||||||
Brookfield Property Partners LP (b) | 47,000 | 937,180 | ||||||
Total Bermuda (Cost $989,431) | 937,180 | |||||||
Canada — 1.4% | ||||||||
Mining — 0.0% | ||||||||
Sacre-Coeur Minerals Ltd. (a) | 109,444 | 7,212 | ||||||
Oil & Gas — 1.1% | ||||||||
Talisman Energy, Inc. | 84,500 | 984,425 | ||||||
Pharmaceuticals — 0.1% | ||||||||
Knight Therapeutics (a)^ | 50,000 | 103,554 | ||||||
Real Estate — 0.2% | ||||||||
Brookfield Office Properties, Inc. | 11,000 | 211,750 | ||||||
Total Canada (Cost $1,365,958) | 1,306,941 | |||||||
Ireland — 0.6% | ||||||||
Electronics — 0.6% | ||||||||
Allegion PLC (a) | 11,700 | 517,023 | ||||||
Total Ireland (Cost $500,856) | 517,023 | |||||||
United Kingdom — 4.6% | ||||||||
Media — 1.3% | ||||||||
Liberty Global PLC Class A (a) | 3,091 | 275,068 | ||||||
Liberty Global PLC Class C (a) | 10,448 | 880,975 | ||||||
1,156,043 |
Number of Shares | Fair Value | |||||||
Foreign Common Stocks (Continued) | ||||||||
Oil & Gas — 1.6% | ||||||||
Noble Corp PLC | 37,949 | $ | 1,421,949 | |||||
Telecommunications — 1.7% | ||||||||
Vodafone Group PLC — ADR | 40,000 | 1,572,400 | ||||||
Total United Kingdom (Cost $3,406,990) | 4,150,392 | |||||||
Total Foreign Common Stocks | ||||||||
(Cost $6,263,235) | 6,911,536 | |||||||
Preferred Stocks — 1.6% | ||||||||
Diagnostic Services Holdings, Inc. (a)^ | 613 | 613,000 | ||||||
Federal Home Loan Mortgage Corp. (a) | 4,500 | 62,550 | ||||||
Federal Home Loan Mortgage Corp. (a) | 9,500 | 128,440 | ||||||
Federal Home Loan Mortgage Corp. (a) | 10,000 | 132,100 | ||||||
Federal Home Loan Mortgage Corp. (a)^ | 1,000 | 13,700 | ||||||
GeoMet, Inc., 9.60%(a) | 3 | 26 | ||||||
MBIA Insurance Corp. (a)^# | 10 | 490,000 | ||||||
1,439,816 | ||||||||
Total Preferred Stocks | ||||||||
(Cost $1,354,368) | 1,439,816 | |||||||
Real Estate Investment Trusts — 2.6% | ||||||||
American Homes 4 Rent — Preferred (a)^ | 10,000 | 250,000 | ||||||
Brookfield DTLA Fund Office Trust Investor, Inc. — Preferred (a) | 30,000 | 794,100 | ||||||
CommonWealth | 56,600 | 1,319,346 | ||||||
2,363,446 | ||||||||
Total Real Estate Investment Trusts | ||||||||
(Cost $2,384,498) | 2,363,446 | |||||||
Rights — 0.2% | ||||||||
Petrocorp, Inc. Escrow (a)^* | 200 | 0 | ||||||
Sanofi (a) | 650,000 | 221,000 | ||||||
221,000 | ||||||||
Total Rights | ||||||||
(Cost $215,670) | 221,000 | |||||||
Warrants — 0.6% | ||||||||
Barclays Bank PLC, Expiration: December, 2014 (a)— | 37,853 | 541,298 | ||||||
Total Warrants | ||||||||
(Cost $430,010) | 541,298 | |||||||
Par | ||||||||
Value | ||||||||
Asset Backed Securities — 2.6% | ||||||||
United States — 2.6% | ||||||||
AFC Home Equity
Loan Trust Class 1A, Series 2000-2, 0.95%, 06/25/2030 ▲— | $ | 14,051 | 12,672 | |||||
Citigroup
Mortgage Loan Trust, Inc. Class M3, Series 2005-OPT1, 0.86%, 02/25/2035 ▲— | 302,614 | 269,904 | ||||||
Countrywide
Asset-Backed Certificates Class 2M2, Series 2007-11, 0.48%, 06/25/2047 ▲— | 816,728 | 635 | ||||||
Countrywide
Asset-Backed Certificates Class A1, Series 2006-SD4, 0.50%, 12/25/2036 # ▲— | 111,536 | 63,138 |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 13
|
Schedule of Investments
Quaker Event Arbitrage Fund
December 31, 2013 (unaudited)
Par Value | Fair Value | |||||||
Asset Backed Securities — (Continued) | ||||||||
United States (Continued) | ||||||||
Countrywide Asset-Backed Certificates | ||||||||
Class A6, Series 2006-S6, 5.66%, 03/25/2034 ▲— | $ | 76,091 | $ | 95,159 | ||||
Countrywide Asset-Backed Certificates | ||||||||
Class M1, Series 2006-23, 0.41%, 05/25/2037 ▲— | 1,800,000 | 15,514 | ||||||
Countrywide Asset-Backed Certificates | ||||||||
Class M1, Series 2006-BC4, 0.45%, 11/25/2036 ▲— | 3,500,000 | 279,765 | ||||||
Countrywide Asset-Backed Certificates | ||||||||
Class M2, Series 2006-BC4, 0.48%, 11/25/2036 ▲— | 1,075,365 | 28,604 | ||||||
Countrywide Home Equity Loan Trust | ||||||||
Class 2A, Series 2005-A, 0.41%, 04/15/2035 ▲— | 38,412 | 31,411 | ||||||
Countrywide Home Equity Loan Trust | ||||||||
Class 2A, Series 2006-G, 0.32%, 10/15/2036 ▲— | 145,779 | 108,896 | ||||||
Long Beach Mortgage Loan Trust | ||||||||
Class 2M1, Series 2002-1, 1.29%, 05/25/2032 ▲— | 764,825 | 721,715 | ||||||
Structured Asset Investment Loan Trust | ||||||||
Class M1, Series 2003-BC9, 1.21%, 08/25/2033 ▲— | 494,760 | 456,600 | ||||||
Structured Asset Securities Corp. | ||||||||
Class M6, Series 2005-WF2, 0.82%, 05/25/2035 ▲— | 406,076 | 228,488 | ||||||
2,312,501 | ||||||||
Total United States (Cost $2,678,394) | 2,312,501 | |||||||
Total Asset Backed Securities | ||||||||
(Cost $2,678,394) | 2,312,501 | |||||||
Convertible Bonds — 1.4% | ||||||||
Finland — 0.4% | ||||||||
Talvivaara Mining Co. PLC 4.00%, 12/16/2015 —+ | 3,000,000 | 371,440 | ||||||
371,440 | ||||||||
Total Finland (Cost $681,219) | 371,440 | |||||||
United States — 1.0% | ||||||||
Frontline Bermuda Ltd. 4.50%, 04/14/2015 — | 1,100,000 | 814,000 | ||||||
U.S. Concrete, Inc. 9.50%, 08/31/2015 ^# | 100,000 | 100,000 | ||||||
914,000 | ||||||||
Total United States (Cost $812,060) | 914,000 | |||||||
Total Convertible Bonds | ||||||||
(Cost $1,493,279) | 1,285,440 | |||||||
Corporate Bonds — 1.5% | ||||||||
Basic Materials — 0.0% | ||||||||
Forest Products & Paper — 0.0% | ||||||||
NewPage Corp. 0.00%, 05/01/2012 ^*+ | 300,000 | 0 | ||||||
Total Basic Materials (Cost $198,770) | 0 | |||||||
Consumer, Cyclical — 0.8% | ||||||||
Auto Parts & Equipment — 0.8% | ||||||||
Exide Technologies 8.63%, 02/01/2018 (b)+— | 1,000,000 | 715,000 | ||||||
Total Consumer, Cyclical (Cost $583,750) | 715,000 | |||||||
Energy — 0.2% | ||||||||
Oil, Gas & Coal — 0.2% | ||||||||
OGX Petroleo e Gas Participacoes SA 8.50%, 06/01/2018 +— | 2,500,000 | 200,000 | ||||||
Total Energy (Cost $625,625) | 200,000 |
Par Value | Fair Value | |||||||
Corporate Bonds (Continued) | ||||||||
Financial — 0.5% | ||||||||
Diversified Financial Services — 0.2% | ||||||||
Lehman Brothers Holdings, Inc. 4.55%, 07/08/2014 +— | $ | 110,000 | $ | 23,100 | ||||
Lehman Brothers Holdings, Inc. 5.32%, 02/17/2015 +— | 130,000 | 26,325 | ||||||
Lehman Brothers Holdings, Inc. 7.00%, 01/28/2020 +— | 100,000 | 20,250 | ||||||
Lehman Brothers Holdings, Inc. 5.50%, 02/27/2020 +— | 100,000 | 20,250 | ||||||
Lehman Brothers Holdings, Inc. 8.25%, 09/23/2020 +— | 100,000 | 18,780 | ||||||
Lehman Brothers Holdings, Inc. 8.75%, 02/14/2023 +— | 200,000 | 40,500 | ||||||
149,205 | ||||||||
Insurance — 0.3% | ||||||||
Ambac Assurance Corp. 5.10%, 06/07/2020 (b)#— | 300,000 | 271,500 | ||||||
Venture Capital — 0.0% | ||||||||
Infinity Capital Group 7.00%, 12/31/2049 ^*+ | 25,000 | 0 | ||||||
Total Financial (Cost $431,747) | 420,705 | |||||||
Utilities — 0.0% | ||||||||
Electric — 0.0% | ||||||||
Mirant Corp. 2.50%, 06/15/2021 ^*+ | 20,000 | 0 | ||||||
Total Utilities (Cost $0) | 0 | |||||||
Total Corporate Bonds | ||||||||
(Cost $1,839,892) | 1,335,705 | |||||||
Foreign Government Bond — 0.2% | ||||||||
Germany — 0.2% | ||||||||
GSW Immobilien AG | ||||||||
2.00%, 11/20/2019— | 100,000 | 145,231 | ||||||
145,231 | ||||||||
Total Germany (Cost $149,004) | 145,231 | |||||||
Total Foreign Government Bond | ||||||||
(Cost $149,004) | 145,231 | |||||||
Mortgage Backed Securities — 1.7% | ||||||||
United States — 1.7% | ||||||||
Countrywide Alternative Loan Trust | ||||||||
Class 2A2A, Series 2006-OC5, 0.33%, 06/25/2046 ▲— | 88,329 | 70,454 | ||||||
GSR Mortgage Loan Trust | ||||||||
Class B2, Series 2005-5F, 5.77%, 06/25/2035 ▲— | 628,584 | 394,955 | ||||||
LB-UBS Commercial Mortgage Trust | ||||||||
Class C, Series 2006-C3, 5.70%, 03/15/2039 ▲— | 750,000 | 615,900 | ||||||
Wachovia Commercial Mortgage Securities Inc Pass-Thru Certificates | ||||||||
Class E, Series 2003-C9, 5.29%, 12/15/2035 ▲— | 500,000 | 498,726 | ||||||
1,580,035 | ||||||||
Total United States (Cost $1,646,335) | 1,580,035 | |||||||
Total Mortgage Backed Securities | ||||||||
(Cost $1,646,335) | 1,580,035 | |||||||
Municipal Bonds — 1.5% | ||||||||
United States — 1.5% | ||||||||
City of Detroit MI Sewage Disposal System Revenue, Second Lien, Series A, | ||||||||
4.50%, 07/01/2035 — | 355,000 | 293,780 | ||||||
City of Detroit MI Water Supply System Revenue, Second Lien, Series B, | ||||||||
5.00%, 07/01/2034 — | 50,000 | 44,636 | ||||||
City of Detroit MI Water Supply System Revenue, Second Lien, Series C, | ||||||||
4.50%, 07/01/2029 — | 205,000 | 189,453 |
The accompanying notes are an integral part of the financial statements.
14 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Schedule of Investments
Quaker Event Arbitrage Fund
December 31, 2013 (unaudited)
Par Value | Fair Value | |||||||
Municipal Bonds (Continued) | ||||||||
United States (Continued) | ||||||||
City of Detroit MI Water Supply System Revenue, Senior Lien, Series A, | ||||||||
5.00%, 07/01/2034 — | $ | 500,000 | $ | 450,195 | ||||
City of Detroit MI Water Supply System Revenue, Senior Lien, Series A, | ||||||||
4.50%, 07/01/2035 — | 75,000 | 62,066 | ||||||
City of Detroit MI Water Supply System Revenue, Senior Lien, Series A, | ||||||||
5.00%, 07/01/2036 — | 200,000 | 176,158 | ||||||
City of Detroit MI Water Supply System Revenue, Senior Lien, Series C, | ||||||||
5.00%, 07/01/2041 — | 95,000 | 82,513 | ||||||
Puerto Rico Sales Tax Financing Corp., Series A | ||||||||
0.00%, 08/01/2054 — | 1,300,000 | 76,934 | ||||||
1,375,735 | ||||||||
Total United States (Cost $1,482,074) | 1,375,735 | |||||||
Total Municipal Bonds | ||||||||
(Cost $1,482,074) | 1,375,735 | |||||||
Term Loan — 0.6% | ||||||||
United States — 0.6% | ||||||||
Diagnostic Services
Holdings, Inc. 14.50%, 05/05/2016 ^ | 511,054 | 511,054 | ||||||
Total United States (Cost $511,054) | 511,054 | |||||||
Total Term Loan | ||||||||
(Cost $511,054) | 511,054 | |||||||
Number of Contracts | ||||||||
Purchased Options — 2.1% | ||||||||
Call Options — 1.5% | ||||||||
Aeropostale, Inc., Expiration: April, 2014 | ||||||||
Exercise Price: $11.00 | 2,000 | 104,000 | ||||||
American Tower Corp., Expiration: January, 2014 | ||||||||
Exercise Price: $77.50 | 385 | 103,950 | ||||||
Merck & Co., Inc., Expiration: April, 2014 | ||||||||
Exercise Price: $46.00 — | 1,900 | 850,250 | ||||||
Time Warner Cable, Inc., Expiration: April, 2014 | ||||||||
Exercise Price: $135.00 | 325 | 211,900 | ||||||
Time Warner Cable, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $135.00 | 465 | 139,500 | ||||||
Total Call Options (Cost $979,153) | 1,409,600 | |||||||
Put Options — 0.6% | ||||||||
Applied Materials, Inc., Expiration: April, 2014 | ||||||||
Exercise Price: $23.00 — | 600 | 327,000 | ||||||
Crosstex Energy, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $40.00 — | 142 | 55,025 | ||||||
iShares U.S. Energy ETF, Expiration: January, 2014 | ||||||||
Exercise Price: $52.00 — | 215 | 34,400 | ||||||
Liberty Global PLC, Expiration: January, 2014 | ||||||||
Exercise Price: $85.00 — | 129 | 4,515 | ||||||
Packaging Corp of America, Expiration: January, 2014 | ||||||||
Exercise Price: $65.00 — | 150 | 32,625 | ||||||
Twenty-First Century Fox, Inc., Expiration: April, 2014 | ||||||||
Exercise Price: $33.00 — | 461 | 42,643 | ||||||
Verizon Communications, Inc., Expiration: March, 2014 | ||||||||
Exercise Price: $50.00 | 104 | 24,544 | ||||||
Total Put Options (Cost $848,305) | 520,752 | |||||||
Total Purchased Options | ||||||||
(Cost $1,827,458) | 1,930,352 |
Number of Shares | Fair Value | |||||||
Investments Purchased with Proceeds from Securities Lending — 4.5% | ||||||||
Money Market Funds — 4.5% | ||||||||
Mount Vernon Securities Lending Trust Prime Portfolio, 0.17% (c)(d) | 4,119,273 | $ | 4,119,273 | |||||
Total Investments Purchased with Proceeds from Securities Lending | ||||||||
(Cost $4,119,273) | 4,119,273 | |||||||
Total Investments | ||||||||
(Cost $86,148,198) — 98.1% | 89,138,038 | |||||||
Other Assets in Excess of Liabilities, Net 1.9% | 1,730,311 | |||||||
Total Net Assets — 100.0% | $ | 90,868,349 | ||||||
Schedule of Securities Sold Short (e) | ||||||||
Common Stocks | ||||||||
Brookfield Office Properties, Inc. | 18,700 | 359,975 | ||||||
Calgon Carbon Corp. | 94,000 | 1,933,580 | ||||||
Fairpoint Communications, Inc. | 160,000 | 1,809,600 | ||||||
VMware, Inc. | 7,680 | 688,973 | ||||||
Wausau Paper Corp. | 102,000 | 1,293,360 | ||||||
6,085,488 | ||||||||
Total Common Stocks | ||||||||
(Proceeds $5,630,318) | 6,085,488 | |||||||
Real Estate Investment Trusts | ||||||||
General Growth Properties, Inc. | 17,400 | 349,218 | ||||||
Total Real Estate Investment Trusts | ||||||||
(Proceeds $370,797) | 349,218 | |||||||
Total Securities Sold Short (Proceeds $6,001,115) | 6,434,706 | |||||||
Number of Contracts | ||||||||
Written Options | ||||||||
Call Options — 3.00% | ||||||||
Abercrombie & Fitch Co., Expiration: February, 2014 | ||||||||
Exercise Price: $27.00 — | 510 | 323,850 | ||||||
Aeropostale, Inc., Expiration: April, 2014 | ||||||||
Exercise Price: $14.00 — | 2,000 | 20,000 | ||||||
Agilent Technologies, Inc., Expiration: February, 2014 | ||||||||
Exercise Price: $52.50 | 266 | 148,960 | ||||||
American Tower Corp., Expiration: January, 2014 | ||||||||
Exercise Price: $85.00 | 385 | 1,925 | ||||||
Ashland, Inc., Expiration: February, 2014 | ||||||||
Exercise Price: $90.00 — | 155 | 130,200 | ||||||
Calgon Carbon Corp., Expiration: February, 2014 | ||||||||
Exercise Price: $20.00 — | 500 | 50,000 | ||||||
Comverse, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $28.25 ^ | 220 | 232,100 | ||||||
Comverse, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $30.00 — | 127 | 110,490 | ||||||
Crosstex Energy, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $40.00 — | 142 | 2,130 | ||||||
Darden Restaurants, Inc., Expiration: February, 2014 | ||||||||
Exercise Price: $52.50 | 95 | 25,650 | ||||||
Hologic, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $21.00 — | 357 | 51,765 | ||||||
iShares U.S. Energy ETF, Expiration: January, 2014 | ||||||||
Exercise Price: $52.00 — | 215 | 1,612 | ||||||
Liberty Global PLC, Expiration: January, 2014 | ||||||||
Exercise Price: $85.00 | 129 | 58,050 |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 15
|
Schedule of Investments
Quaker Event Arbitrage Fund
December 31, 2013 (unaudited)
Number of Contracts | Fair Value | |||||||
Written Options (Continued) | ||||||||
Call Options (Continued) | ||||||||
LSB Industries, Inc., Expiration: February, 2014 | ||||||||
Exercise Price: $40.00 — | 350 | $ | 97,125 | |||||
Merck & Co., Inc., Expiration: April, 2014 | ||||||||
Exercise Price: $50.00 | 1,900 | 302,100 | ||||||
Mondelez International, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $33.00 | 115 | 27,255 | ||||||
NetApp, Inc., Expiration: February, 2014 | ||||||||
Exercise Price: $36.00 | 75 | 40,125 | ||||||
Nuance Communications, Inc., Expiration: February, 2014 | ||||||||
Exercise Price: $13.00 — | 230 | 57,500 | ||||||
Packaging Corp. of America, Expiration: January, 2014 | ||||||||
Exercise Price: $65.00 | 150 | 6,000 | ||||||
Riverbed Technology, Inc., Expiration: February, 2014 | ||||||||
Exercise Price: $15.00 — | 930 | 306,900 | ||||||
Seachange International, Inc., Expiration: February, 2014 | ||||||||
Exercise Price: $12.10 ^ | 400 | 23,440 | ||||||
Tessera Technologies, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $18.00 — | 333 | 59,940 | ||||||
Tessera Technologies, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $19.35 ^ | 338 | 26,026 | ||||||
Time Warner Cable, Inc., Expiration: April, 2014 | ||||||||
Exercise Price: $145.00 | 325 | 63,375 | ||||||
Time Warner Cable, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $110.00 — | 56 | 139,160 | ||||||
Time Warner Cable, Inc., Expiration: January, 2014 | ||||||||
Exercise Price: $145.00 | 465 | 20,925 | ||||||
Timken Co., Expiration: February, 2014 | ||||||||
Exercise Price: $47.50 — | 84 | 66,360 |
Number of Contracts | Fair Value | |||||||
Written Options (Continued) | ||||||||
Call Options (Continued) | ||||||||
tw telecom Inc., Expiration: February, 2014 | ||||||||
Exercise Price: $30.00 — | 90 | $ | 12,375 | |||||
Twenty-First Century Fox, Inc., Expiration: April, 2014 | ||||||||
Exercise Price: $33.00 — | 461 | 135,995 | ||||||
Verizon Communications, Inc., Expiration: March, 2014 | ||||||||
Exercise Price: $50.00 | 104 | 10,192 | ||||||
Volcano Corp., Expiration: January, 2014 | ||||||||
Exercise Price: $20.00 — | 553 | 113,365 | ||||||
Wausau Paper Corp., Expiration: February, 2014 | ||||||||
Exercise Price: $12.50 — | 400 | 20,000 | ||||||
Total Call Options | 2,684,890 | |||||||
Total Written Options (Premiums Received $2,034,627) | 2,684,890 |
ADR - American Depositary Receipt
(a) | Non-income producing security. |
(b) | All or a portion of the security out on loan. |
(c) | Rate shown is the annualized seven-day yield at period end. |
(d) | Represents investments of collateral received from securities lending transactions. |
(e) | Securities sold short are non-income producing. |
^ | Indicates a fair valued security. Total market value for fair valued securities is $3,868,773, representing 4.3% of net assets and Level 3 securities. |
* | Indicates an illiquid security. Total market value for illiquid securities is $499,259, representing 0.5% of net assets. |
+ | Defaulted security. |
# | Restricted security that may be sold to “qualified institutional buyers” pursuant to the conditions of Rule 144A under the Securities Act of 1933, as amended. |
▲ | The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
— | Level 2 securities. |
The accompanying notes are an integral part of the financial statements.
16 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Schedule of Investments
Quaker Global Tactical Allocation Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Common Stocks — 96.8% | ||||||||
Belgium — 1.4% | ||||||||
Anheuser-Busch InBev NV — ADR | 1,065 | $ | 113,380 | |||||
Total Belgium (Cost $86,043) | 113,380 | |||||||
Bermuda — 2.4% | ||||||||
Arch Capital Group Ltd. (a) | 3,110 | 185,636 | ||||||
Total Bermuda (Cost $122,263) | 185,636 | |||||||
Cayman Islands — 1.2% | ||||||||
SINA Corp. (a) | 1,100 | 92,675 | ||||||
Total Cayman Islands (Cost $94,099) | 92,675 | |||||||
Curacao — 0.9% | ||||||||
Schlumberger Ltd. | 830 | 74,791 | ||||||
Total Curacao (Cost $68,219) | 74,791 | |||||||
France — 2.1% | ||||||||
Sanofi — ADR (b) | 3,040 | 163,035 | ||||||
Total France (Cost $140,555) | 163,035 | |||||||
Germany — 4.8% | ||||||||
Adidas AG — ADR | 3,030 | 194,617 | ||||||
Bayerische Motoren Werke AG — ADR | 4,590 | 180,983 | ||||||
375,600 | ||||||||
Total Germany (Cost $250,974) | 375,600 | |||||||
Ireland — 1.7% | ||||||||
Alkermes PLC (a)(b) | 3,395 | 138,041 | ||||||
Total Ireland (Cost $105,055) | 138,041 | |||||||
Japan — 2.4% | ||||||||
Mitsubishi UFJ Financial Group, Inc. — ADR | 14,500 | 96,860 | ||||||
Toyota Motor Corp. — ADR (b) | 740 | 90,221 | ||||||
187,081 | ||||||||
Total Japan (Cost $187,359) | 187,081 | |||||||
Mexico — 0.5% | ||||||||
Fomento Economico Mexicano SAB de CV — ADR | 425 | 41,595 | ||||||
Total Mexico (Cost $38,045) | 41,595 | |||||||
Netherlands — 3.7% | ||||||||
Koninklijke Philips NV — ADR | 5,585 | 206,477 | ||||||
Unilever NV — ADR | 2,120 | 85,288 | ||||||
291,765 | ||||||||
Total Netherlands (Cost $233,188) | 291,765 | |||||||
Switzerland — 10.2% | ||||||||
ABB Ltd. — ADR (b) | 3,440 | 91,366 | ||||||
ACE Ltd. | 1,830 | 189,460 | ||||||
Allied World Assurance Co. Holdings AG (b) | 1,770 | 199,674 | ||||||
Novartis AG — ADR | 2,165 | 174,023 | ||||||
Roche Holdings, Ltd. — ADR | 2,130 | 149,526 | ||||||
804,049 | ||||||||
Total Switzerland (Cost $622,753) | 804,049 | |||||||
United Kingdom — 8.0% | ||||||||
Diageo PLC — ADR (b) | 890 | 117,854 | ||||||
InterContinental Hotels Group PLC — ADR (b) | 4,882 | 163,205 | ||||||
Prudential PLC — ADR | 3,955 | 177,975 | ||||||
Rio Tinto PLC — ADR (b) | 2,990 | 168,726 | ||||||
627,760 | ||||||||
Total United Kingdom (Cost $526,444) | 627,760 |
Number of Shares | Fair Value | |||||||
Common Stocks (Continued) | ||||||||
United States — 57.5% | ||||||||
Abbott Laboratories | 1,000 | $ | 38,330 | |||||
AbbVie, Inc. | 2,235 | 118,030 | ||||||
Amazon.com, Inc. (a)(b) | 354 | 141,172 | ||||||
American Airlines Group, Inc. (a)(b) | 506 | 12,770 | ||||||
Amgen, Inc. | 1,930 | 220,329 | ||||||
AMR Corp. Escrow (a)^ | 7,600 | 90,668 | ||||||
Apple, Inc. | 213 | 119,516 | ||||||
Best Buy Co., Inc. (b) | 3,440 | 137,187 | ||||||
Biogen Idec, Inc. (a) | 1,105 | 309,124 | ||||||
CBS Corp. | 2,630 | 167,636 | ||||||
Celgene Corp. (a) | 955 | 161,357 | ||||||
Citigroup, Inc. | 2,265 | 118,029 | ||||||
Delta Air Lines, Inc. (a) | 5,430 | 149,162 | ||||||
DigitalGlobe, Inc. (a) | 1,380 | 56,787 | ||||||
eBay, Inc. (a) | 955 | 52,420 | ||||||
Expedia, Inc. | 1,520 | 105,883 | ||||||
Gilead Sciences, Inc. (a) | 3,505 | 263,401 | ||||||
Google, Inc. Class A (a) | 173 | 193,883 | ||||||
Kansas City Southern (b) | 1,292 | 159,988 | ||||||
Las Vegas Sands Corp. | 2,000 | 157,740 | ||||||
Mastercard, Inc. Class A | 195 | 162,915 | ||||||
Mead Johnson Nutrition Co. | 1,810 | 151,606 | ||||||
Micron Technology, Inc. (a)(b) | 5,010 | 109,018 | ||||||
Mondelez International, Inc. | 2,370 | 83,661 | ||||||
Monsanto Co. | 1,030 | 120,047 | ||||||
Morgan Stanley | 6,200 | 194,432 | ||||||
Red Hat, Inc. (a) | 2,030 | 113,761 | ||||||
Regeneron Pharmaceuticals, Inc. (a)(b) | 510 | 140,372 | ||||||
Time Warner, Inc. | 1,670 | 116,432 | ||||||
Twenty-First Century Fox, Inc. Class A (b) | 4,350 | 153,033 | ||||||
United Continental Holdings, Inc. (a)(b) | 3,980 | 150,563 | ||||||
Vertex Pharmaceuticals, Inc. (a) | 300 | 22,290 | ||||||
Viacom, Inc. | 1,160 | 101,314 | ||||||
Visa, Inc. Class A (b) | 570 | 126,928 | ||||||
4,519,784 | ||||||||
Total United States (Cost $3,537,963) | 4,519,784 | |||||||
Total Common Stocks | ||||||||
(Cost $6,012,960) | 7,615,192 | |||||||
Investments Purchased with Proceeds from Securities Lending — 28.6% | ||||||||
Money Market Funds — 28.6% | ||||||||
Mount Vernon Securities Lending Trust Prime Portfolio, 0.17% (c)(d) | 2,247,332 | 2,247,332 | ||||||
Total Investments Purchased with Proceeds from Securities Lending | ||||||||
(Cost $2,247,332) | 2,247,332 | |||||||
Total Investments | ||||||||
(Cost $8,260,292) — 125.4% | 9,862,524 | |||||||
Liabilities in Excess of Other Assets, Net (25.4)% | (2,000,242 | ) | ||||||
Total Net Assets — 100.0% | $ | 7,862,282 | ||||||
Schedule of Securities Sold Short (e) | ||||||||
Exchange-Traded Funds | ||||||||
CurrencyShares Australian Dollar Trust | 1,530 | 136,828 | ||||||
Total Exchange-Traded Funds | 136,828 | |||||||
Total Securities Sold Short (Proceeds: $154,611) | 136,828 |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 17
|
Schedule of Investments
Quaker Global Tactical Allocation Fund
December 31, 2013 (unaudited)
ADR - American Depositary Receipt
(a) | Non-income producing security. |
(b) | All or a portion of the security out on loan. |
(c) | The rate shown is the annualized seven-day effective yield at period end. |
(d) | Represents investments of collateral received from securities lending transactions. |
(e) | Securities sold short are non-income producing. |
^ | Indicates a fair valued security. Total market value for fair valued securities is $90,668, representing 1.2% of net assets and Level 3 securities. |
The accompanying notes are an integral part of the financial statements.
18 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Schedule of Investments
Quaker Mid-Cap Value Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Domestic Common Stocks — 84.6% | ||||||||
Basic Materials — 5.8% | ||||||||
Chemicals — 3.6% | ||||||||
Axiall Corp. | 4,660 | $ | 221,070 | |||||
FMC Corp. (b) | 1,597 | 120,510 | ||||||
341,580 | ||||||||
Iron & Steel Production — 2.2% | ||||||||
Steel Dynamics, Inc. (b) | 10,813 | 211,286 | ||||||
Total Basic Materials (Cost $350,891) | 552,866 | |||||||
Communications — 3.1% | ||||||||
Internet — 1.5% | ||||||||
Symantec Corp. | 6,110 | 144,074 | ||||||
Telecommunications — 1.6% | ||||||||
JDS Uniphase Corp. (a)(b) | 11,352 | 147,349 | ||||||
Total Communications (Cost $276,065) | 291,423 | |||||||
Consumer, Cyclical — 14.9% | ||||||||
Airlines — 2.5% | ||||||||
Southwest Airlines Co. | 12,408 | 233,767 | ||||||
Auto Parts & Equipment — 2.0% | ||||||||
Dana Holding Corp. (a)(b) | 9,526 | 186,900 | ||||||
Home Furnishings — 3.2% | ||||||||
Harman International Industries, Inc. | 2,579 | 211,091 | ||||||
Whirlpool Corp. (b) | 628 | 98,508 | ||||||
309,599 | ||||||||
Retail — 7.2% | ||||||||
Foot Locker, Inc. | 5,325 | 220,668 | ||||||
JC Penney Co., Inc. (a)(b) | 9,314 | 85,223 | ||||||
Kohl’s Corp. (b) | 3,212 | 182,281 | ||||||
Nordstrom, Inc. (b) | 3,154 | 194,917 | ||||||
683,089 | ||||||||
Total Consumer, Cyclical (Cost $1,140,641) | 1,413,355 | |||||||
Consumer, Non-cyclical — 8.3% | ||||||||
Healthcare-Products — 4.5% | ||||||||
Hospira, Inc. (a) | 5,211 | 215,110 | ||||||
Zimmer Holdings, Inc. | 2,235 | 208,280 | ||||||
423,390 | ||||||||
Healthcare-Services — 1.8% | ||||||||
Community Health Systems, Inc. (a)(b) | 4,345 | 170,628 | ||||||
Pharmaceuticals — 2.0% | ||||||||
Forest Laboratories, Inc. (a) | 3,234 | 194,137 | ||||||
Total Consumer, Non-cyclical (Cost $556,754) | 788,155 | |||||||
Energy — 6.7% | ||||||||
Oil & Gas — 6.7% | ||||||||
Atwood Oceanics, Inc. (a) | 3,045 | 162,573 | ||||||
Denbury Resources, Inc. (a) | 8,505 | 139,737 | ||||||
Helmerich & Payne, Inc. | 2,296 | 193,048 | ||||||
Whiting Petroleum Corp. (a) | 2,270 | 140,445 | ||||||
635,803 | ||||||||
Total Energy (Cost $466,147) | 635,803 | |||||||
Financial — 12.6% | ||||||||
Banks — 5.8% | ||||||||
Huntington Bancshares, Inc. (b) | 20,216 | 195,084 | ||||||
Keycorp | 14,359 | 192,698 | ||||||
Number of Shares | Fair Value | |||||||
Domestic Common Stocks (Continued) | ||||||||
Banks (Continued) | ||||||||
Regions Financial Corp. | 16,868 | $ | 166,825 | |||||
554,607 | ||||||||
Insurance — 6.8% | ||||||||
Protective Life Corp. | 4,718 | 239,014 | ||||||
Reinsurance Group of America, Inc., Class A | 2,657 | 205,678 | ||||||
Torchmark Corp. (b) | 2,523 | 197,173 | ||||||
641,865 | ||||||||
Total Financial (Cost $714,079) | 1,196,472 | |||||||
Industrial — 16.4% | ||||||||
Electrical Components & Equipment — 2.0% | ||||||||
Energizer Holdings, Inc. | 1,748 | 189,204 | ||||||
Electronics — 1.0% | ||||||||
Woodward, Inc. | 2,140 | 97,605 | ||||||
Hand & Machine Tools — 3.2% | ||||||||
Regal-Beloit Corp. | 2,027 | 149,430 | ||||||
Stanley Black & Decker, Inc. | 1,955 | 157,749 | ||||||
307,179 | ||||||||
Machinery-Diversified — 4.1% | ||||||||
AGCO Corp. (b) | 3,529 | 208,882 | ||||||
Roper Industries, Inc. (b) | 1,337 | 185,415 | ||||||
394,297 | ||||||||
Miscellaneous Manufacturing — 6.1% | ||||||||
Dover Corp. (b) | 2,071 | 199,934 | ||||||
Parker Hannifin Corp. | 1,820 | 234,125 | ||||||
Trinity Industries, Inc. | 2,597 | 141,588 | ||||||
575,647 | ||||||||
Total Industrial (Cost $1,280,704) | 1,563,932 | |||||||
Technology — 9.6% | ||||||||
Computers — 3.9% | ||||||||
Cadence Design Systems, Inc. (a)(b) | 14,174 | 198,719 | ||||||
NCR Corp. (a) | 5,041 | 171,696 | ||||||
370,415 | ||||||||
Semiconductors — 5.7% | ||||||||
KLA-Tencor Corp. | 2,642 | 170,303 | ||||||
Skyworks Solutions, Inc. (a)(b) | 6,473 | 184,869 | ||||||
Teradyne, Inc. (a)(b) | 10,915 | 192,322 | ||||||
547,494 | ||||||||
Total Technology (Cost $806,813) | 917,909 | |||||||
Utilities — 7.2% | ||||||||
Electric — 2.8% | ||||||||
Westar Energy, Inc. (b) | 4,363 | 140,358 | ||||||
Xcel Energy, Inc. (b) | 4,558 | 127,351 | ||||||
267,709 | ||||||||
Gas — 4.4% | ||||||||
Centerpoint Energy, Inc. | 6,205 | 143,832 | ||||||
Questar Corp. | 7,937 | 182,472 | ||||||
UGI Corp. | 2,108 | 87,398 | ||||||
413,702 | ||||||||
Total Utilities (Cost $516,486) | 681,411 | |||||||
Total Domestic Common Stocks (Cost $6,108,580) | 8,041,326 |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 19
|
Schedule of Investments
Quaker Mid-Cap Value Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Foreign Common Stocks — 5.0% | ||||||||
Bermuda — 1.4% | ||||||||
Diversified Financial Services — 1.4% | ||||||||
Invesco Ltd. | 3,711 | $ | 135,080 | |||||
Total Bermuda (Cost $55,653) | 135,080 | |||||||
Canada — 3.6% | ||||||||
Apparel — 1.6% | ||||||||
Gildan Activewear, Inc., Class A (b) | 2,842 | 151,507 | ||||||
Oil & Gas — 2.0% | ||||||||
Ultra Petroleum Corp. (a)(b) | 8,792 | 190,347 | ||||||
Total Canada (Cost $261,548) | 341,854 | |||||||
Total Foreign Common Stocks (Cost $317,201) | 476,934 | |||||||
Real Estate Investment Trusts — 8.5% | ||||||||
BioMed Realty Trust Inc. (b) | 8,267 | 149,798 | ||||||
Camden Property Trust (b) | 2,708 | 154,031 | ||||||
DDR Corp. (b) | 10,020 | 154,007 | ||||||
Host Hotels & Resorts, Inc. (b) | 9,332 | 181,414 | ||||||
Mid-America Apartment Communities, Inc. | 2,735 | 166,124 | ||||||
805,374 | ||||||||
Total Real Estate Investment Trusts (Cost $766,465) | 805,374 | |||||||
Investments Purchased with Proceeds from Securities Lending — 41.7% | ||||||||
Money Market Funds — 41.7% | ||||||||
Mount Vernon Securities Lending Trust Prime Portfolio, 0.17% (c)(d) | 3,956,427 | 3,956,427 | ||||||
Total Investments Purchased with Proceeds from Securities Lending (Cost $3,956,427) | 3,956,427 | |||||||
Total Investments (Cost $11,148,673) — 139.8% | 13,280,061 | |||||||
Liabilities in Excess of Other Assets, Net (39.8)% | (3,779,740 | ) | ||||||
Total Net Assets — 100.0% | $ | 9,500,321 |
(a) | Non-income producing security. |
(b) | All or a portion of the security out on loan. |
(c) | The rate shown is the annualized seven-day effective yield at period end. |
(d) | Represents investments of collateral received from securities lending transactions. |
The accompanying notes are an integral part of the financial statements.
20 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Schedule of Investments
Quaker Small-Cap Growth Tactical Allocation Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Domestic Common Stocks — 59.9% | ||||||||
Basic Materials — 3.0% | ||||||||
Chemicals — 0.9% | ||||||||
Intrepid Potash, Inc. (a)(b) | 1,300 | $ | 20,592 | |||||
Mining — 2.1% | ||||||||
Comstock Mining, Inc. (a)(b) | 30,000 | 52,500 | ||||||
Total Basic Materials (Cost $69,304) | 73,092 | |||||||
Communications — 6.3% | ||||||||
Internet — 2.0% | ||||||||
Blucora, Inc. (a) | 1,700 | 49,572 | ||||||
Telecommunications — 4.3% | ||||||||
Finisar Corp. (a)(b) | 2,600 | 62,192 | ||||||
Inteliquent, Inc. | 4,000 | 45,680 | ||||||
107,872 | ||||||||
Total Communications (Cost $154,191) | 157,444 | |||||||
Consumer, Cyclical — 3.0% | ||||||||
Distribution & Wholesale — 1.8% | ||||||||
Core-Mark Holding Co., Inc. | 600 | 45,558 | ||||||
Home Builders — 1.2% | ||||||||
UCP, Inc. (a) | 2,000 | 29,280 | ||||||
Total Consumer, Cyclical (Cost $53,690) | 74,838 | |||||||
Consumer, Non-cyclical — 15.4% | ||||||||
Beverages — 0.8% | ||||||||
Truett-Hurst, Inc. (a) | 4,500 | 18,765 | ||||||
Commercial Services — 2.0% | ||||||||
Great Lakes Dredge & Dock Co. | 5,500 | 50,600 | ||||||
Food — 6.3% | ||||||||
Harris Teeter Supermarkets, Inc. | 3,200 | 157,920 | ||||||
Pharmaceuticals — 6.3% | ||||||||
BioSpecifics Technologies Corp. (a) | 2,100 | 45,507 | ||||||
Enanta Pharmaceuticals, Inc. (a) | 1,200 | 32,736 | ||||||
Insys Therapeutics, Inc. (a) | 1,000 | 38,710 | ||||||
Lannett Co., Inc. (a) | 1,200 | 39,720 | ||||||
156,673 | ||||||||
Total Consumer, Non-cyclical (Cost $381,267) | 383,958 | |||||||
Energy — 4.3% | ||||||||
Oil & Gas — 4.3% | ||||||||
Matador Resources Co. (a)(b) | 3,300 | 61,512 | ||||||
SEACOR Holdings, Inc. (a)(b) | 500 | 45,600 | ||||||
107,112 | ||||||||
Total Energy (Cost $112,031) | 107,112 | |||||||
Financial — 2.3% | ||||||||
Diversified Financial Services — 2.3% | ||||||||
Gain Capital Holdings, Inc. | 7,700 | 57,827 | ||||||
Total Financial (Cost $87,371) | 57,827 | |||||||
Industrial — 14.6% | ||||||||
Building Materials — 2.6% | ||||||||
Comfort Systems U.S.A., Inc. | 3,400 | 65,926 | ||||||
Electrical Components & Equipment — 2.7% | ||||||||
Advanced Energy Industries, Inc. (a) | 2,900 | 66,294 | ||||||
Electronics — 2.6% | ||||||||
Methode Electronics, Inc. | 1,900 | 64,961 |
Number of Shares | Fair Value | |||||||
Domestic Common Stocks (Continued) | ||||||||
Engineering & Construction — 3.7% | ||||||||
Layne Christensen Co. (a)(b) | 5,325 | $ | 90,951 | |||||
Machinery-Diversified — 2.3% | ||||||||
Manitex International, Inc. (a) | 3,600 | 57,168 | ||||||
Miscellaneous Manufacturing — 0.7% | ||||||||
Synalloy Corp. | 1,200 | 18,432 | ||||||
Total Industrial (Cost $359,524) | 363,732 | |||||||
Technology — 11.0% | ||||||||
Computers — 3.8% | ||||||||
Maxwell Technologies, Inc. (a) | 12,000 | 93,240 | ||||||
Semiconductors — 7.2% | ||||||||
Integrated Device Technology, Inc. (a) | 6,000 | 61,140 | ||||||
Mattson Technology, Inc. (a) | 15,000 | 41,100 | ||||||
MoSys, Inc. (a)(b) | 14,000 | 77,280 | ||||||
179,520 | ||||||||
Total Technology (Cost $225,601) | 272,760 | |||||||
Total Domestic Common Stocks (Cost $1,442,979) | 1,490,763 | |||||||
Foreign Common Stocks — 16.3% | ||||||||
Bermuda — 2.7% | ||||||||
Insurance — 2.7% | ||||||||
Aspen Insurance Holdings Ltd. (b) | 1,600 | 66,096 | ||||||
Total Bermuda (Cost $61,520) | 66,096 | |||||||
Canada — 4.7% | ||||||||
Mining — 4.7% | ||||||||
Seabridge Gold, Inc. (a)(b) | 16,000 | 116,800 | ||||||
Total Canada (Cost $144,564) | 116,800 | |||||||
Israel — 8.9% | ||||||||
Electronics — 2.5% | ||||||||
Orbotech Ltd. (a) | 4,700 | 63,544 | ||||||
Healthcare-Products — 4.3% | ||||||||
Given Imaging Ltd. (a)(b) | 3,550 | 106,784 | ||||||
Telecommunications — 2.1% | ||||||||
AudioCodes Ltd. (a) | 7,300 | 52,049 | ||||||
Total Israel (Cost $205,830) | 222,377 | |||||||
Total Foreign Common Stocks (Cost $411,914) | 405,273 | |||||||
Exchange-Traded Funds — 9.8% | ||||||||
Direxion Daily Small Cap Bear 3X Shares (b) | 7,200 | 122,184 | ||||||
ProShares UltraPro Short Russell 2000 (b) | 11,400 | 122,550 | ||||||
Total Exchange-Traded Funds (Cost $297,431) | 244,734 |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 21
|
Schedule of Investments
Quaker Small-Cap Growth Tactical Allocation Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Investments Purchased with Proceeds from Securities Lending — 26.5% | ||||||||
Money Market Funds — 26.5% | ||||||||
Mount Vernon Securities Lending Trust Prime Portfolio, 0.17% (c)(d) | 660,476 | $ | 660,476 | |||||
Total Investments Purchased with Proceeds from Securities Lending (Cost $660,476) |
660,476 | |||||||
Total Investments (Cost $2,812,800) — 112.5% | 2,801,246 | |||||||
Liabilities in Excess of Other Assets, Net (12.5)% | (311,216 | ) | ||||||
Total Net Assets — 100.0% | $ | 2,490,030 |
(a) | Non-income producing security. |
(b) | All or a portion of the security is out on loan. |
(c) | The rate shown is the annualized seven-day effective yield at period end. |
(d) | Represents investments of collateral received from securities lending transactions. |
The accompanying notes are an integral part of the financial statements.
22 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Schedule of Investments
Quaker Small-Cap Value Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Domestic Common Stocks — 84.2% | ||||||||
Basic Materials — 4.2% | ||||||||
Chemicals — 1.1% | ||||||||
Ferro Corp. (a) | 32,700 | $ | 419,541 | |||||
Forest Products & Paper — 2.6% | ||||||||
Domtar Corp. | 5,000 | 471,700 | ||||||
P.H. Glatfelter Co. | 2,800 | 77,392 | ||||||
Resolute Forest Products, Inc. (a) | 27,500 | 440,550 | ||||||
989,642 | ||||||||
Iron/Steel — 0.5% | ||||||||
Cliffs Natural Resources, Inc. (b) | 7,600 | 199,196 | ||||||
Total Basic Materials (Cost $1,285,640) | 1,608,379 | |||||||
Communications — 4.7% | ||||||||
Internet — 2.2% | ||||||||
Blue Nile, Inc. (a) | 6,300 | 296,667 | ||||||
Constant Contact, Inc. (a) | 5,300 | 164,671 | ||||||
FTD Cos., Inc. (a) | 7,640 | 248,911 | ||||||
Stamps.com, Inc. (a) | 1,600 | 67,360 | ||||||
United Online, Inc. | 5,457 | 75,089 | ||||||
852,698 | ||||||||
Telecommunications — 2.5% | ||||||||
ADTRAN, Inc. | 8,900 | 240,389 | ||||||
Inteliquent, Inc. | 30,300 | 346,026 | ||||||
LogMeIn, Inc. (a)(b) | 6,900 | 231,495 | ||||||
Telenav, Inc. (a) | 18,800 | 123,892 | ||||||
941,802 | ||||||||
Total Communications (Cost $1,468,151) | 1,794,500 | |||||||
Consumer, Cyclical — 13.8% | ||||||||
Airlines — 0.9% | ||||||||
JetBlue Airways Corp. (a)(b) | 39,000 | 333,450 | ||||||
Auto Manufacturers — 0.7% | ||||||||
Oshkosh Corp. | 5,200 | 261,976 | ||||||
Auto Parts & Equipment — 3.1% | ||||||||
The Goodyear Tire & Rubber Co. (a) | 11,200 | 267,120 | ||||||
Lear Corp. (b) | 5,900 | 477,723 | ||||||
Tower International, Inc. (a) | 20,400 | 436,560 | ||||||
1,181,403 | ||||||||
Distribution & Wholesale — 3.0% | ||||||||
Arrow Electronics, Inc. (a) | 8,400 | 455,700 | ||||||
Core-Mark Holding Co., Inc. | 1,200 | 91,116 | ||||||
Ingram Micro, Inc. (a) | 18,900 | 443,394 | ||||||
Owens & Minor, Inc. (b) | 3,900 | 142,584 | ||||||
1,132,794 | ||||||||
Leisure Time — 0.8% | ||||||||
Arctic Cat, Inc. (b) | 5,100 | 290,598 | ||||||
Retail — 5.3% | ||||||||
ANN, Inc. (a)(b) | 2,500 | 91,400 | ||||||
The Cato Corp. (b) | 10,600 | 337,080 | ||||||
CEC Entertainment, Inc. (b) | 2,900 | 128,412 | ||||||
Destination Maternity Corp. | 5,300 | 158,364 | ||||||
GameStop Corp. (b) | 4,400 | 216,744 | ||||||
Jack in the Box, Inc. (a) | 2,600 | 130,052 | ||||||
Kirkland’s, Inc. (a)(b) | 17,700 | 418,959 |
Number of Shares | Fair Value | |||||||
Domestic Common Stocks (Continued) | ||||||||
Retail (Continued) | ||||||||
Nu Skin Enterprises, Inc. | 3,600 | $ | 497,592 | |||||
PetMed Express, Inc. | 2,400 | 39,912 | ||||||
2,018,515 | ||||||||
Total Consumer, Cyclical (Cost $4,413,995) | 5,218,736 | |||||||
Consumer, Non-cyclical — 18.4% | ||||||||
Agriculture — 1.1% | ||||||||
Andersons, Inc. (b) | 4,900 | 436,933 | ||||||
Biotechnology — 5.0% | ||||||||
AMAG Pharmaceuticals, Inc. (a)(b) | 4,700 | 114,069 | ||||||
Cubist Pharmaceuticals, Inc. (a) | 5,800 | 399,446 | ||||||
Myriad Genetics, Inc. (a)(b) | 18,300 | 383,934 | ||||||
PDL BioPharma, Inc. (b) | 53,800 | 454,072 | ||||||
United Therapeutics Corp. (a) | 4,700 | 531,476 | ||||||
1,882,997 | ||||||||
Commercial Services — 4.3% | ||||||||
The Brink’s Co. | 6,300 | 215,082 | ||||||
Consolidated Graphics, Inc. (a)(b) | 5,400 | 364,176 | ||||||
Global Cash Access Holdings, Inc. (a) | 29,900 | 298,701 | ||||||
ITT Educational Services, Inc. (a)(b) | 7,800 | 261,924 | ||||||
MoneyGram International, Inc. (a) | 10,500 | 218,190 | ||||||
The Providence Services Corp. (a) | 10,600 | 272,632 | ||||||
1,630,705 | ||||||||
Food — 1.0% | ||||||||
Cal-Maine Foods, Inc. | 900 | 54,207 | ||||||
Nutrisystem, Inc. | 19,700 | 323,868 | ||||||
378,075 | ||||||||
Healthcare-Products — 2.2% | ||||||||
Align Technology, Inc. (a) | 6,700 | 382,905 | ||||||
Hill-Rom Holdings, Inc. | 10,800 | 446,472 | ||||||
829,377 | ||||||||
Healthcare-Services — 1.3% | ||||||||
Addus HomeCare Corp. (a)(b) | 7,300 | 163,885 | ||||||
LHC Group, Inc. (a) | 4,600 | 110,584 | ||||||
Magellan Health Services, Inc. (a) | 2,200 | 131,802 | ||||||
Wellcare Health Plans, Inc. (a) | 1,300 | 91,546 | ||||||
497,817 | ||||||||
Household Products & Wares — 0.5% | ||||||||
Jarden Corp. (a) | 2,800 | 171,780 | ||||||
Pharmaceuticals — 3.0% | ||||||||
Omega Protein Corp. (a) | 13,000 | 159,770 | ||||||
Omnicare, Inc. | 7,500 | 452,700 | ||||||
PharMerica Corp. (a) | 7,200 | 154,800 | ||||||
Questcor Pharmaceuticals, Inc. (b) | 6,200 | 337,590 | ||||||
Sciclone Pharmaceuticals, Inc. (a)(b) | 5,100 | 25,704 | ||||||
1,130,564 | ||||||||
Total Consumer, Non-cyclical (Cost $6,023,649) | 6,958,248 | |||||||
Energy — 5.6% | ||||||||
Energy-Alternate Sources — 0.7% | ||||||||
Renewable Energy Group, Inc. (a) | 23,500 | 269,310 |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 23
|
Schedule of Investments
Quaker Small-Cap Value Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Domestic Common Stocks (Continued) | ||||||||
Oil & Gas — 4.0% | ||||||||
Gran Tierra Energy, Inc. (a)(b) | 55,400 | $ | 404,974 | |||||
Parker Drilling Co. (a)(b) | 23,000 | 186,990 | ||||||
SM Energy Co. | 5,200 | 432,172 | ||||||
VAALCO Energy, Inc. (a) | 67,800 | 467,142 | ||||||
1,491,278 | ||||||||
Oil & Gas Services — 0.9% | ||||||||
Oceaneering International, Inc. | 2,900 | 228,752 | ||||||
RPC, Inc. (b) | 6,400 | 114,240 | ||||||
342,992 | ||||||||
Total Energy (Cost $2,066,085) | 2,103,580 | |||||||
Financial — 12.8% | ||||||||
Banks — 5.7% | ||||||||
Banner Corp. (b) | 4,500 | 201,690 | ||||||
First Interstate BancSystem, Inc. | 16,400 | 465,268 | ||||||
Huntington Bancshares, Inc. | 49,500 | 477,675 | ||||||
Lakeland Financial Corp. (b) | 4,400 | 171,600 | ||||||
United Community Banks, Inc. (a) | 14,400 | 255,600 | ||||||
Wilshire Bancorp, Inc. | 11,500 | 125,695 | ||||||
Wintrust Financial Corp. (b) | 10,100 | 465,812 | ||||||
2,163,340 | ||||||||
Diversified Financial Services — 4.0% | ||||||||
Manning & Napier, Inc. | 16,900 | 298,285 | ||||||
MarketAxess Holdings, Inc. | 4,900 | 327,663 | ||||||
Waddell & Reed Financial, Inc. | 7,000 | 455,840 | ||||||
World Acceptance Corp. (a)(b) | 4,900 | 428,897 | ||||||
1,510,685 | ||||||||
Insurance — 2.8% | ||||||||
American Financial Group, Inc. | 4,600 | 265,512 | ||||||
Assurant, Inc. | 7,300 | 484,501 | ||||||
HCI Group, Inc. (b) | 2,400 | 128,400 | ||||||
Unum Group | 5,000 | 175,400 | ||||||
1,053,813 | ||||||||
Real Estate — 0.3% | ||||||||
CBRE Group, Inc. (a) | 4,600 | 120,980 | ||||||
Total Financial (Cost $3,962,825) | 4,848,818 | |||||||
Industrial — 17.3% | ||||||||
Aerospace & Defense — 3.6% | ||||||||
AAR Corp. (b) | 15,600 | 436,956 | ||||||
Alliant Techsystems, Inc. | 3,800 | 462,384 | ||||||
Exelis, Inc. | 25,000 | 476,500 | ||||||
1,375,840 | ||||||||
Building Materials — 2.1% | ||||||||
Comfort Systems U.S.A., Inc. | 23,300 | 451,787 | ||||||
Drew Industries, Inc. | 1,800 | 92,160 | ||||||
Nortek, Inc. (a) | 2,100 | 156,660 | ||||||
Patrick Industries, Inc. (a) | 3,000 | 86,790 | ||||||
787,397 | ||||||||
Electrical Components & Equipment — 0.7% | ||||||||
Coleman Cable, Inc. (b) | 9,200 | 241,224 | ||||||
Electronics — 1.9% | ||||||||
Avnet, Inc. | 6,600 | 291,126 | ||||||
Benchmark Electronics, Inc. (a) | 19,100 | 440,828 | ||||||
731,954 |
Number of Shares | Fair Value | |||||||
Domestic Common Stocks (Continued) | ||||||||
Engineering & Construction — 2.9% | ||||||||
AECOM Technology Corp. (a)(b) | 4,500 | $ | 132,435 | |||||
Dycom Industries, Inc. (a) | 16,000 | 444,640 | ||||||
Tutor Perini Corp. (a) | 7,700 | 202,510 | ||||||
URS Corp. | 6,000 | 317,940 | ||||||
1,097,525 | ||||||||
Miscellaneous Manufacturing — 3.0% | ||||||||
Park-Ohio Holdings Corp. (a) | 4,800 | 251,520 | ||||||
Smith & Wesson Holding Corp. (a)(b) | 34,600 | 466,754 | ||||||
Sturm, Ruger & Company, Inc. (b) | 5,900 | 431,231 | ||||||
1,149,505 | ||||||||
Packaging & Containers — 1.8% | ||||||||
Packaging Corp. of America | 6,900 | 436,632 | ||||||
Rock Tenn Co. | 2,100 | 220,521 | ||||||
657,153 | ||||||||
Shipbuilding — 1.3% | ||||||||
Huntington Ingalls Industries, Inc. | 5,600 | 504,056 | ||||||
Total Industrial (Cost $5,001,235) | 6,544,654 | |||||||
Technology — 4.3% | ||||||||
Computers — 1.8% | ||||||||
Insight Enterprises, Inc. (a) | 6,900 | 156,699 | ||||||
Lexmark International, Inc. (b) | 2,200 | 78,144 | ||||||
Manhattan Associates, Inc. (a) | 3,800 | 446,424 | ||||||
681,267 | ||||||||
Semiconductors — 1.9% | ||||||||
Cirrus Logic, Inc. (a)(b) | 6,300 | 128,709 | ||||||
Intersil Corp. | 11,900 | 136,493 | ||||||
QLogic Corp. (a) | 38,400 | 454,272 | ||||||
719,474 | ||||||||
Software — 0.6% | ||||||||
Progress Software Corp. (a)(b) | 9,300 | 240,219 | ||||||
Total Technology (Cost $1,433,541) | 1,640,960 | |||||||
Utilities — 3.1% | ||||||||
Electric — 1.5% | ||||||||
CMS Energy Corp. | 3,300 | 88,341 | ||||||
El Paso Electric Co. | 10,200 | 358,122 | ||||||
Pinnacle West Capital Corp. | 2,600 | 137,592 | ||||||
584,055 | ||||||||
Gas — 1.6% | ||||||||
Atmos Energy Corp. | 5,800 | 263,436 | ||||||
New Jersey Resources Corp. (b) | 1,800 | 83,232 | ||||||
Vectren Corp. | 7,300 | 259,150 | ||||||
605,818 | ||||||||
Total Utilities (Cost $1,149,268) | 1,189,873 | |||||||
Total Domestic Common Stocks (Cost $26,804,389) | 31,907,748 |
The accompanying notes are an integral part of the financial statements.
24 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Schedule of Investments
Quaker Small-Cap Value Fund
December 31, 2013 (unaudited)
Number of Shares | Fair Value | |||||||
Foreign Common Stocks — 10.8% | ||||||||
Bermuda — 5.5% | ||||||||
Computers — 0.9% | ||||||||
Xyratex Ltd. | 26,700 | $ | 354,843 | |||||
Insurance — 3.4% | ||||||||
Aspen Insurance Holdings Ltd. | 11,100 | 458,541 | ||||||
Axis Capital Holdings Ltd. | 5,900 | 280,663 | ||||||
Everest Re Group, Ltd. | 2,900 | 452,023 | ||||||
Platinum Underwriters Holdings Ltd. | 1,400 | 85,792 | ||||||
1,277,019 | ||||||||
Semiconductors — 1.2% | ||||||||
Marvell Technology Group Ltd. | 30,500 | 438,590 | ||||||
Total Bermuda (Cost $1,694,870) | 2,070,452 | |||||||
Canada — 1.0% | ||||||||
Electronics — 1.0% | ||||||||
Celestica, Inc. (a) | 37,300 | 387,920 | ||||||
Total Canada (Cost $366,087) | 387,920 | |||||||
Cayman Islands — 1.6% | ||||||||
Insurance — 1.2% | ||||||||
Greenlight Capital Re Ltd. (a) | 13,200 | 444,972 | ||||||
Pharmaceuticals — 0.4% | ||||||||
Herbalife Ltd. (b) | 2,100 | 165,270 | ||||||
Total Cayman Islands (Cost $537,664) | 610,242 | |||||||
Guernsey — 1.1% | ||||||||
Telecommunications — 1.1% | ||||||||
Amdocs Ltd. | 10,100 | 416,524 | ||||||
Total Guernsey (Cost $297,999) | 416,524 | |||||||
Netherlands — 1.1% | ||||||||
Diversified Financial Services — 1.1% | ||||||||
AerCap Holdings N.V. (a) | 10,700 | 410,345 | ||||||
Total Netherlands (Cost $178,538) | 410,345 | |||||||
Switzerland — 0.5% | ||||||||
Insurance — 0.5% | ||||||||
Allied World Assurance Co. Holdings AG (b) | 1,900 | 214,339 | ||||||
Total Switzerland (Cost $151,391) | 214,339 | |||||||
Total Foreign Common Stocks (Cost $3,226,549) | 4,109,822 | |||||||
Real Estate Investment Trusts — 4.4% | ||||||||
Ashford Hospitality Prime, Inc. | 2,800 | 50,960 | ||||||
Ashford Hospitality Trust, Inc. | 14,000 | 115,920 | ||||||
CubeSmart (b) | 19,700 | 314,018 | ||||||
DiamondRock Hospitality Co. (b) | 6,600 | 76,230 | ||||||
Dupont Fabros Technology, Inc. (b) | 18,900 | 467,019 | ||||||
RLJ Lodging Trust | 18,400 | 447,488 | ||||||
Sunstone Hotel Investors, Inc. | 15,000 | 201,000 | ||||||
1,672,635 | ||||||||
Total Real Estate Investment Trusts (Cost $1,749,311) | 1,672,635 | |||||||
Number of Shares | Fair Value | |||||||
Investments Purchased with Proceeds from Securities Lending — 21.2% | ||||||||
Money Market Funds — 21.2% | ||||||||
Mount Vernon Securities Lending Trust Prime Portfolio, 0.17% (c)(d) | 8,020,202 | $ | 8,020,202 | |||||
Total Investments Purchased with Proceeds from Securities Lending (Cost $8,020,202) |
8,020,202 | |||||||
Total Investments (Cost $39,800,451) — 120.6% | 45,710,407 | |||||||
Liabilities in Excess of Other Assets, Net (20.6)% | (7,822,876 | ) | ||||||
Total Net Assets — 100.0% | $ | 37,887,531 |
(a) | Non-income producing security. |
(b) | All or a portion of the security out on loan. |
(c) | The rate shown is the annualized seven-day effective yield at period end. |
(d) | Represents investments of collateral received from securities lending transactions. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 25
|
Schedule of Investments
Quaker Strategic Growth Fund
December 31, 2013 (unaudited)
Number | Fair | |||||||
of Shares | Value | |||||||
Domestic Common Stocks — 74.7% | ||||||||
Basic Materials — 1.5% | ||||||||
Chemicals — 1.5% | ||||||||
Monsanto Co. | 23,005 | $ | 2,681,233 | |||||
Total Basic Materials (Cost $2,290,071) | 2,681,233 | |||||||
Communications — 16.8% | ||||||||
Internet — 9.0% | ||||||||
Amazon.com, Inc. (a) | 8,820 | 3,517,328 | ||||||
eBay, Inc. (a) | 39,190 | 2,151,139 | ||||||
Expedia, Inc. | 44,210 | 3,079,669 | ||||||
Google, Inc. Class A (a) | 4,065 | 4,555,686 | ||||||
Groupon, Inc. (a) | 110,885 | 1,305,116 | ||||||
Yahoo! Inc (a) | 25,490 | 1,030,816 | ||||||
15,639,754 | ||||||||
Media — 7.1% | ||||||||
CBS Corp. | 57,855 | 3,687,678 | ||||||
Time Warner, Inc. | 38,295 | 2,669,927 | ||||||
Twenty-First Century Fox, Inc. Class A (b) | 102,350 | 3,600,673 | ||||||
Viacom, Inc. | 26,680 | 2,330,231 | ||||||
12,288,509 | ||||||||
Telecommunications — 0.7% | ||||||||
DigitalGlobe, Inc. (a) | 30,290 | 1,246,434 | ||||||
Total Communications (Cost $23,157,608) | 29,174,697 | |||||||
Consumer, Cyclical — 11.7% | ||||||||
Airlines — 5.5% | ||||||||
American Airlines Group, Inc. (a) | 14,057 | 354,929 | ||||||
AMR Corp. Escrow (a)^ | 211,235 | 2,520,034 | ||||||
Delta Air Lines, Inc. (a) | 120,980 | 3,323,321 | ||||||
United Continental Holdings, Inc. (a)(b) | 87,365 | 3,305,018 | ||||||
9,503,302 | ||||||||
Auto Parts & Equipment — 1.0% | ||||||||
TRW Automotive Holdings Corp. (a) | 22,450 | 1,670,055 | ||||||
Lodging — 2.0% | ||||||||
Las Vegas Sands Corp. | 44,504 | 3,510,030 | ||||||
Retail — 3.2% | ||||||||
Best Buy Co., Inc. | 75,350 | 3,004,958 | ||||||
Dunkin’ Brands Group, Inc. | 51,825 | 2,497,965 | ||||||
5,502,923 | ||||||||
Total Consumer, Cyclical (Cost $14,280,889) | 20,186,310 | |||||||
Consumer, Non-cyclical — 26.9% | ||||||||
Biotechnology — 16.1% | ||||||||
Amgen, Inc. | 45,085 | 5,146,904 | ||||||
Biogen Idec, Inc. (a) | 27,605 | 7,722,499 | ||||||
Celgene Corp. (a) | 20,975 | 3,543,936 | ||||||
Gilead Sciences, Inc. (a) | 81,625 | 6,134,119 | ||||||
Regeneron Pharmaceuticals, Inc. (a)(b) | 12,798 | 3,522,521 | ||||||
Vertex Pharmaceuticals, Inc. (a) | 25,200 | 1,872,360 | ||||||
27,942,339 | ||||||||
Commercial Services — 2.8% | ||||||||
Mastercard, Inc. Class A | 4,285 | 3,579,946 | ||||||
Verisk Analytics, Inc. Class A (a) | 19,360 | 1,272,339 | ||||||
4,852,285 |
Number | Fair | |||||||
of Shares | Value | |||||||
Domestic Common Stocks (Continued) | ||||||||
Food — 1.3% | ||||||||
Mondelez International, Inc. | 62,540 | $2,207,662 | ||||||
Healthcare-Services — 1.5% | ||||||||
Cigna Corp. | 30,440 | 2,662,891 | ||||||
Pharmaceuticals — 5.2% | ||||||||
Abbott Laboratories | 55,425 | 2,124,440 | ||||||
AbbVie, Inc. | 64,825 | 3,423,408 | ||||||
Mead Johnson Nutrition Co. | 40,350 | 3,379,716 | ||||||
8,927,564 | ||||||||
Total Consumer, Non-cyclical (Cost $36,282,316) | 46,592,741 | |||||||
Energy — 2.0% | ||||||||
Oil & Gas — 2.0% | ||||||||
Anadarko Petroleum Corp. | 21,785 | 1,727,986 | ||||||
Marathon Oil Corp. | 48,665 | 1,717,875 | ||||||
3,445,861 | ||||||||
Total Energy (Cost $3,365,158) | 3,445,861 | |||||||
Financial — 9.1% | ||||||||
Banks — 4.5% | ||||||||
Citigroup, Inc. | 66,305 | 3,455,154 | ||||||
Morgan Stanley | 136,180 | 4,270,605 | ||||||
7,725,759 | ||||||||
Diversified Financial Services — 3.1% | ||||||||
The Charles Schwab Corp. (b) | 101,515 | 2,639,390 | ||||||
Visa, Inc. Class A (b) | 12,440 | 2,770,139 | ||||||
5,409,529 | ||||||||
Insurance — 1.5% | ||||||||
Marsh & McLennan Cos., Inc. | 53,383 | 2,581,602 | ||||||
Total Financial (Cost $13,405,261) | 15,716,890 | |||||||
Industrial — 2.0% | ||||||||
Transportation — 2.0% | ||||||||
Kansas City Southern | 28,359 | 3,511,695 | ||||||
Total Industrial (Cost $3,273,225) | 3,511,695 | |||||||
Technology — 4.7% | ||||||||
Computers — 1.5% | ||||||||
Apple, Inc. | 4,575 | 2,567,078 | ||||||
Semiconductors — 1.7% | ||||||||
Micron Technology, Inc. (a) | 134,365 | 2,923,782 | ||||||
Software — 1.5% | ||||||||
Red Hat, Inc. (a) | 46,225 | 2,590,449 | ||||||
Total Technology (Cost $7,167,416) | 8,081,309 | |||||||
Total Domestic Common Stocks
(Cost $103,221,944) | 129,390,736 |
The accompanying notes are an integral part of the financial statements.
26 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Schedule of Investments
Quaker Strategic Growth Fund
December 31, 2013 (unaudited)
Number | Fair | |||||||
of Shares | Value | |||||||
Foreign Common Stocks — 20.5% | ||||||||
Belgium — 1.5% | ||||||||
Beverages — 1.5% | ||||||||
Anheuser-Busch InBev NV - ADR | 24,745 | $2,634,353 | ||||||
Total Belgium (Cost $2,112,982) | 2,634,353 | |||||||
Bermuda — 2.0% | ||||||||
Insurance — 2.0% | ||||||||
Arch Capital Group Ltd. (a) | 57,980 | 3,460,826 | ||||||
Total Bermuda (Cost $2,274,893) | 3,460,826 | |||||||
Cayman Islands — 1.3% | ||||||||
Internet — 1.3% | ||||||||
SINA Corp. (a) | 27,180 | 2,289,915 | ||||||
Total Cayman Islands (Cost $2,127,656) | 2,289,915 | |||||||
Curacao — 2.0% | ||||||||
Oil & Gas Services — 2.0% | ||||||||
Schlumberger Ltd. | 38,715 | 3,488,609 | ||||||
Total Curacao (Cost $3,316,107) | 3,488,609 | |||||||
France — 2.1% | ||||||||
Pharmaceuticals — 2.1% | ||||||||
Sanofi - ADR | 66,350 | 3,558,350 | ||||||
Total France (Cost $3,217,998) | 3,558,350 | |||||||
Germany — 1.4% | ||||||||
Apparel — 1.4% | ||||||||
Adidas AG - ADR | 36,490 | 2,343,753 | ||||||
Total Germany (Cost $1,409,752) | 2,343,753 | |||||||
Switzerland — 8.7% | ||||||||
Insurance — 4.5% | ||||||||
ACE Ltd. | 38,460 | 3,981,764 | ||||||
Allied World Assurance Co. Holdings AG | 34,410 | 3,881,792 | ||||||
7,863,556 | ||||||||
Pharmaceuticals — 4.2% | ||||||||
Novartis AG — ADR | 48,125 | 3,868,287 | ||||||
Roche Holdings, Ltd. — ADR | 48,700 | 3,418,740 | ||||||
7,287,027 | ||||||||
Total Switzerland (Cost $12,308,244) | 15,150,583 | |||||||
United Kingdom — 1.5% | ||||||||
Beverages — 1.5% | ||||||||
Diageo PLC — ADR | 20,005 | 2,649,062 | ||||||
Total United Kingdom (Cost $2,267,233) | 2,649,062 | |||||||
Total Foreign Common Stocks
(Cost $29,034,865) | 35,575,451 |
Number | Fair | |||||||
of Shares | Value | |||||||
Investments Purchased with Proceeds from Securities Lending — 7.0% | ||||||||
Money Market Funds — 7.0% | ||||||||
Mount Vernon Securities Lending Trust Prime Portfolio, 0.17% (c)(d) | 12,050,096 | $ | 12,050,096 | |||||
Total Investments Purchased with Proceeds from Securities Lending (Cost $12,050,096) |
12,050,096 | |||||||
Total Investments (Cost $144,306,905) — 102.2.% | 177,016,283 | |||||||
Liabilities in Excess of Other Assets, Net (2.2)% | (3,759,059 | ) | ||||||
Total Net Assets — 100.0% | $ | 173,257,224 |
ADR - American Depositary Receipt
(a) | Non-income producing security. |
(b) | All or a portion of the security out on loan. |
(c) | The rate shown is the annualized seven-day effective yield at period end. |
(d) | Represents investments of collateral received from securities lending transactions. |
^ | Indicates a fair valued security. Total market value for fair valued securities is $2,520,034, representing 1.5% of net assets and Level 3 securities. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 27
|
Statements of Assets and Liabilities
December 31, 2013 (unaudited)
Quaker Akros | Quaker | Quaker | Quaker Small-Cap | Quaker | Quaker | |||||||||||||||||||||||
Absolute Return | Quaker Event | Global Tactical | Mid-Cap | Growth Tactical | Small-Cap | Strategic | ||||||||||||||||||||||
Fund | Arbitrage Fund | Allocation Fund | Value Fund | Allocation Fund | Value Fund | Growth Fund | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||
Investments, at value (Note 10) | $ | 1,087,320 | $ | 89,138,038 | $ | 9,862,524 | $ | 13,280,061 | $ | 2,801,246 | $ | 45,710,407 | $ | 177,016,283 | ||||||||||||||
Cash | 639,488 | 17,210,337 | 34,077 | 142,003 | 406,185 | 99,114 | 9,323,766 | |||||||||||||||||||||
Foreign currency, at value | — | 2,035,994 | — | — | — | — | — | |||||||||||||||||||||
Cash held at brokers | 2,673,150 | 10,065,071 | 414,803 | — | — | — | — | |||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Dividends and interest | 221 | 98,469 | 5,645 | 15,499 | 480 | 39,432 | 112,266 | |||||||||||||||||||||
Capital shares sold | — | 974,284 | — | 230 | — | 7,266 | 433,674 | |||||||||||||||||||||
Investment securities sold | 45,695 | 91,678 | — | 73,154 | — | 128,819 | 364,029 | |||||||||||||||||||||
Prepaid expenses and other assets | 3,263 | 68,653 | 7,444 | 9,018 | 2,031 | 33,158 | 97,527 | |||||||||||||||||||||
Total Assets | 4,449,137 | 119,682,524 | 10,324,493 | 13,519,965 | 3,209,942 | 46,018,196 | 187,347,545 | |||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||||
Call options written, at value | $ | — | $ | 2,684,890 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Securities sold short, at value | 1,028,144 | 6,434,706 | 136,828 | — | — | — | — | |||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Due to advisor (Note 3) | 3,615 | 91,219 | 8,241 | 8,381 | 2,185 | 31,598 | 188,653 | |||||||||||||||||||||
Capital shares redeemed | 66,469 | 44,098 | 41,030 | 38,807 | 50 | 36,757 | 582,323 | |||||||||||||||||||||
Upon return of securities loaned | 35,800 | 4,119,273 | 2,247,332 | 3,956,427 | 660,476 | 8,020,202 | 12,050,096 | |||||||||||||||||||||
Investment securities purchased | 3,306 | 15,361,136 | — | — | 40,098 | 5,858 | 1,006,615 | |||||||||||||||||||||
Dividends on securities sold short | 1,348 | 2,436 | — | — | — | — | — | |||||||||||||||||||||
Distributions | — | 49 | — | — | — | 17 | — | |||||||||||||||||||||
Distribution fees | 486 | 14,132 | 2,863 | 2,919 | 1,034 | 3,290 | 39,920 | |||||||||||||||||||||
Trustee expenses | 527 | 5,048 | 766 | 723 | 576 | 2,998 | 15,084 | |||||||||||||||||||||
Chief compliance officer fees | 484 | 1,542 | 535 | 235 | 891 | 1,677 | 11,116 | |||||||||||||||||||||
Accrued expenses | 25,592 | 55,646 | 24,616 | 12,152 | 14,602 | 28,268 | 196,514 | |||||||||||||||||||||
Total liabilities | 1,165,771 | 28,814,175 | 2,462,211 | 4,019,644 | 719,912 | 8,130,665 | 14,090,321 | |||||||||||||||||||||
Net Assets | $ | 3,283,366 | $ | 90,868,349 | $ | 7,862,282 | $ | 9,500,321 | $ | 2,490,030 | $ | 37,887,531 | $ | 173,257,224 | ||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $ | 4,614,358 | $ | 86,300,298 | $ | 18,560,568 | $ | 14,714,552 | $ | 3,304,020 | $ | 33,637,817 | $ | 548,832,997 | ||||||||||||||
Accumulated net investment income (loss) | (50,719 | ) | 2,984,052 | (102,645 | ) | (60,415 | ) | (35,791 | ) | (15,269 | ) | (1,695,334 | ) | |||||||||||||||
Accumulated net realized loss on investments | (660,855 | ) | (304,279 | ) | (12,215,656 | ) | (7,285,204 | ) | (766,645 | ) | (1,644,973 | ) | (406,589,817 | ) | ||||||||||||||
Net unrealized appreciation (depreciation) on investments: | ||||||||||||||||||||||||||||
Securities | (198,314 | ) | 2,989,840 | 1,602,232 | 2,131,388 | (11,554 | ) | 5,909,956 | 32,709,378 | |||||||||||||||||||
Securities sold short | (421,104 | ) | (433,591 | ) | 17,783 | — | — | — | — | |||||||||||||||||||
Written option contracts | — | (650,264 | ) | — | — | — | — | — | ||||||||||||||||||||
Foreign currency transactions | — | (17,707 | ) | — | — | — | — | — | ||||||||||||||||||||
Total net assets | $ | 3,283,366 | $ | 90,868,349 | $ | 7,862,282 | $ | 9,500,321 | $ | 2,490,030 | $ | 37,887,531 | $ | 173,257,224 | ||||||||||||||
Total investments, at cost | $ | 1,285,634 | $ | 86,148,198 | $ | 8,260,292 | $ | 11,148,673 | $ | 2,812,800 | $ | 39,800,451 | $ | 144,306,905 | ||||||||||||||
Total foreign currency, at cost | $ | — | $ | 2,055,414 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Proceeds from securities sold short | 607,040 | 6,001,115 | 154,611 | — | — | — | — | |||||||||||||||||||||
Premiums on options | — | 2,034,627 | — | — | — | — | — | |||||||||||||||||||||
Class A shares: | ||||||||||||||||||||||||||||
Net Assets | $ | 1,749,936 | $ | 42,762,936 | $ | 4,429,395 | $ | 6,402,443 | $ | 1,102,530 | $ | 8,713,946 | $ | 92,175,767 | ||||||||||||||
Shares of beneficial interest outstanding(1) | 225,036 | 3,159,841 | 445,268 | 295,798 | 106,475 | 377,096 | 3,990,157 | |||||||||||||||||||||
Net asset value per share and redemption price per share | $ | 7.78 | $ | 13.53 | $ | 9.95 | $ | 21.64 | $ | 10.35 | $ | 23.11 | $ | 23.10 | ||||||||||||||
Offering price per share (100/94.50 x net asset value per share) | $ | 8.23 | $ | 14.32 | $ | 10.53 | $ | 22.90 | $ | 10.95 | $ | 24.46 | $ | 24.44 | ||||||||||||||
Class C shares: | ||||||||||||||||||||||||||||
Net Assets | $ | 71,586 | $ | 6,397,322 | $ | 2,288,638 | $ | 1,887,095 | $ | 932,820 | $ | 1,724,313 | $ | 24,438,302 | ||||||||||||||
Shares of beneficial interest outstanding(1) | 9,446 | 483,184 | 240,107 | 98,320 | 94,014 | 88,337 | 1,192,819 | |||||||||||||||||||||
Net asset value per share and redemption price per share | $ | 7.58 | $ | 13.24 | $ | 9.53 | $ | 19.19 | $ | 9.92 | $ | 19.52 | $ | 20.49 | ||||||||||||||
Institutional Class shares: | ||||||||||||||||||||||||||||
Net Assets | $ | 1,461,844 | $ | 41,708,091 | $ | 1,144,249 | $ | 1,210,783 | $ | 454,680 | $ | 27,449,272 | $ | 56,643,155 | ||||||||||||||
Shares of beneficial interest outstanding(1) | 186,401 | 3,068,954 | 100,453 | 53,501 | 43,262 | 1,141,218 | 2,366,123 | |||||||||||||||||||||
Net asset value per share and redemption price per share | $ | 7.84 | $ | 13.59 | $ | 11.39 | $ | 22.63 | $ | 10.51 | $ | 24.05 | $ | 23.94 |
(1) | Unlimited number of shares of beneficial interest with a 0.01 par value authorized. |
The accompanying notes are an integral part of the financial statements.
28 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
For the Six-Month Period Ended December 31, 2013 (unaudited)
Quaker Akros | Quaker | Quaker | Quaker Small-Cap | Quaker | Quaker | |||||||||||||||||||||||
Absolute Return | Quaker Event | Global Tactical | Mid-Cap | Growth Tactical | Small-Cap | Strategic | ||||||||||||||||||||||
Fund | Arbitrage Fund | Allocation Fund | Value Fund | Allocation Fund | Value Fund | Growth Fund | ||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||
Dividends (net of foreign withholding taxes) | $ | 3,923 | $ | 210,343 | $ | 36,927 | $ | 72,053 | $ | 8,676 | $ | 294,545 | $ | 719,084 | ||||||||||||||
Interest | 559 | 1,748,826 | 5 | 77 | 102 | 92 | 1,500 | |||||||||||||||||||||
Securities Lending Income | 7,167 | 15,489 | 1,181 | 1,611 | 9,781 | 30,036 | 15,351 | |||||||||||||||||||||
Total Income | 11,649 | 1,974,658 | 38,113 | 73,741 | 18,559 | 324,673 | 735,935 | |||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||
Investment advisory fees (Note 3) | 24,213 | 503,398 | 46,008 | 49,358 | 15,422 | 178,927 | 1,091,661 | |||||||||||||||||||||
Funds administration and accounting fees | 31,474 | 50,180 | 5,637 | 7,097 | 3,088 | 25,010 | 104,348 | |||||||||||||||||||||
Transfer agent fees | 2,004 | 78,465 | 9,088 | 11,473 | 4,117 | 20,917 | 206,060 | |||||||||||||||||||||
Custody fees | 2,765 | 3,842 | 4,228 | 1,743 | 23 | 9,550 | 8,844 | |||||||||||||||||||||
Trustee fees and meeting expenses | 784 | 11,363 | 1,292 | 1,464 | 633 | 5,809 | 29,041 | |||||||||||||||||||||
Legal fees | 380 | 7,110 | 605 | 786 | 347 | 2,923 | 14,060 | |||||||||||||||||||||
Audit fees | — | 11,086 | 1,027 | 1,439 | — | 5,342 | 25,104 | |||||||||||||||||||||
Distribution fee — Class A | 2,747 | 48,613 | 5,285 | 7,963 | 1,732 | 10,443 | 114,785 | |||||||||||||||||||||
Distribution fee — Class C | 508 | 30,626 | 11,172 | 9,377 | 5,146 | 8,587 | 120,183 | |||||||||||||||||||||
Insurance | 1,258 | 20,215 | 1,806 | 2,993 | 1,487 | 10,036 | 42,680 | |||||||||||||||||||||
Officers’ compensation fees | 1,267 | 20,734 | 2,235 | 2,602 | 1,069 | 10,494 | 52,830 | |||||||||||||||||||||
Registration and filing expenses | 33,006 | 4,514 | 575 | 617 | 348 | 2,451 | 14,203 | |||||||||||||||||||||
Printing expenses | 941 | 13,802 | 1,338 | 1,783 | 671 | 6,657 | 31,980 | |||||||||||||||||||||
Dividends and Interest on securities sold short | 5,947 | 2,436 | 1,596 | — | — | — | — | |||||||||||||||||||||
Other operating expenses | 10,285 | 1,032 | 2,529 | 803 | 8,336 | 898 | 1,203 | |||||||||||||||||||||
Total expenses | 117,579 | 807,416 | 94,421 | 99,498 | 42,419 | 298,044 | 1,856,982 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Investment advisory fees waived & reimbursed (Note 3) | (55,211 | ) | (55,027 | ) | — | — | — | — | — | |||||||||||||||||||
Net expenses | 62,368 | 752,389 | 94,421 | 99,498 | 42,419 | 298,044 | 1,856,982 | |||||||||||||||||||||
Net investment income (loss) | (50,719 | ) | 1,222,269 | (56,308 | ) | (25,757 | ) | (23,860 | ) | 26,629 | (1,121,047 | ) | ||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||||||||||||||
Net realized gain (loss) on investments: | ||||||||||||||||||||||||||||
Securities | (149,519 | ) | 1,094,426 | 425,826 | 832,818 | (53,218 | ) | 3,539,106 | 17,020,639 | |||||||||||||||||||
Securities sold short | (145,779 | ) | (137,551 | ) | 6,386 | — | — | — | — | |||||||||||||||||||
Written options | 11,552 | 264,694 | — | — | — | — | — | |||||||||||||||||||||
Foreign currency transactions | 1 | 8,224 | — | — | — | — | — | |||||||||||||||||||||
Forwards | — | (14,974 | ) | — | — | — | — | — | ||||||||||||||||||||
Futures | (5,931 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments: | ||||||||||||||||||||||||||||
Securities | 405,891 | 3,205,651 | 939,308 | 395,486 | 327,486 | 2,555,921 | 13,762,168 | |||||||||||||||||||||
Securities sold short | (33,708 | ) | (428,107 | ) | (4,242 | ) | — | — | — | — | ||||||||||||||||||
Written options | (1,305 | ) | (535,569 | ) | — | — | — | — | — | |||||||||||||||||||
Foreign currency transactions | — | (13,501 | ) | — | — | — | — | — | ||||||||||||||||||||
Forwards | — | 420 | — | — | — | — | — | |||||||||||||||||||||
Futures | — | — | — | — | — | — | — | |||||||||||||||||||||
Net realized and unrealized gain on investments | 81,202 | 3,443,713 | 1,367,278 | 1,228,304 | 274,268 | 6,095,027 | 30,782,807 | |||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 30,483 | $ | 4,665,982 | $ | 1,310,970 | $ | 1,202,547 | $ | 250,408 | $ | 6,121,656 | $ | 29,661,760 | ||||||||||||||
(Foreign withholding taxes on dividends)/tax reclaims | $ | (338 | ) | $ | (2,157 | ) | $ | (546 | ) | $ | (106 | ) | $ | (38 | ) | $ | — | $ | (6,761 | ) |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 29
|
Statements of Changes in Net Assets
For the Six-Month Period Ended December 31, 2013 (unaudited)
Quaker Akros Absolute Return Fund | Quaker Event Arbitrage Fund | Quaker Global Tactical Allocation Fund | Quaker Mid-Cap Value Fund | Quaker Small-Cap Growth Tactical Allocation Fund | Quaker Small-Cap Value Fund | Quaker Strategic Growth Fund | ||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | $ | (50,719 | ) | $ | 1,222,269 | $ | (56,308 | ) | $ | (25,757 | ) | $ | (23,860 | ) | $ | 26,629 | $ | (1,121,047 | ) | |||||||||
Net realized gain (loss) on investment transactions: | ||||||||||||||||||||||||||||
Securities | (149,519 | ) | 1,094,426 | 425,826 | 832,818 | (53,218 | ) | 3,539,106 | 17,020,639 | |||||||||||||||||||
Securities sold short | (145,779 | ) | (137,551 | ) | 6,386 | — | — | — | — | |||||||||||||||||||
Written options | 11,552 | 264,694 | — | — | — | — | — | |||||||||||||||||||||
Foreign currency | 1 | 8,224 | — | — | — | — | — | |||||||||||||||||||||
Forwards | — | (14,974 | ) | — | — | — | — | — | ||||||||||||||||||||
Futures | (5,931 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investment transactions: | ||||||||||||||||||||||||||||
Securities | 405,891 | 3,205,651 | 939,308 | 395,486 | 327,486 | 2,555,921 | 13,762,168 | |||||||||||||||||||||
Securities sold short | (33,708 | ) | (428,107 | ) | (4,242 | ) | — | — | — | — | ||||||||||||||||||
Written options | (1,305 | ) | (535,569 | ) | — | — | — | — | — | |||||||||||||||||||
Foreign currency | — | (13,501 | ) | — | — | — | — | — | ||||||||||||||||||||
Forwards | — | 420 | — | — | — | — | — | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 30,483 | 4,665,982 | 1,310,970 | 1,202,547 | 250,408 | 6,121,656 | 29,661,760 | |||||||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||||||
Net investment income — Class A | — | (27,673 | ) | — | — | — | (21,954 | ) | — | |||||||||||||||||||
Net investment income — Institutional Class | — | (65,885 | ) | — | — | — | (95,111 | ) | — | |||||||||||||||||||
Net realized capital gain — Class A | — | (216,479 | ) | — | — | — | — | — | ||||||||||||||||||||
Net realized capital gain — Class C | — | (33,170 | ) | — | — | — | — | — | ||||||||||||||||||||
Net realized capital gain — Institutional Class | — | (207,848 | ) | — | — | — | — | — | ||||||||||||||||||||
Total distributions | — | (551,055 | ) | — | — | — | (117,065 | ) | — | |||||||||||||||||||
Capital share transactions: | ||||||||||||||||||||||||||||
Increase (decrease) in net assets from fund share transactions (Note 8) | (949,340 | ) | 20,638,622 | (54,375 | ) | (606,538 | ) | (1,204,263 | ) | (862,319 | ) | (14,194,229 | ) | |||||||||||||||
Total increase (decrease) in net assets | (918,857 | ) | 24,753,549 | 1,256,595 | 596,009 | (953,855 | ) | 5,142,272 | 15,467,531 | |||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Beginning of period | 4,202,223 | 66,114,800 | 6,605,687 | 8,904,312 | 3,443,885 | 32,745,259 | 157,789,693 | |||||||||||||||||||||
End of period | $ | 3,283,366 | $ | 90,868,349 | $ | 7,862,282 | $ | 9,500,321 | $ | 2,490,030 | $ | 37,887,531 | $ | 173,257,224 | ||||||||||||||
Undistributed (Accumulated) net investment income (loss), at end of period | $ | (50,719 | ) | $ | 2,984,052 | $ | (102,645 | ) | $ | (60,415 | ) | $ | (35,791 | ) | $ | (15,269 | ) | $ | (1,695,334 | ) | ||||||||
For the Fiscal Year Ended June 30, 2013 | ||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | $ | (70,474 | ) | $ | 1,719,627 | $ | (119,641 | ) | $ | (76,923 | ) | $ | (67,900 | ) | $ | 194,525 | $ | (1,511,147 | ) | |||||||||
Net realized gain (loss) on investment transactions: | ||||||||||||||||||||||||||||
Securities | (293,537 | ) | (4,811,477 | ) | 1,133,487 | 1,127,978 | 851,143 | 4,025,085 | 22,222,065 | |||||||||||||||||||
Securities sold short | (26,885 | ) | (915,912 | ) | (79,072 | ) | — | — | — | — | ||||||||||||||||||
Written options | 63,051 | 6,102,873 | 1,230 | — | — | — | 21,331 | |||||||||||||||||||||
Foreign currency | (2 | ) | 64,001 | — | — | — | — | — | ||||||||||||||||||||
Forwards | — | 91,691 | — | — | — | — | — | |||||||||||||||||||||
Futures | (66,028 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investment transactions: | ||||||||||||||||||||||||||||
Securities | 292,884 | 2,252,194 | 284,065 | 439,560 | (456,408 | ) | 2,301,123 | 8,287,981 | ||||||||||||||||||||
Securities sold short | (247,360 | ) | (54,987 | ) | 36,139 | — | — | — | — | |||||||||||||||||||
Written options | (4,918 | ) | 326,361 | 107 | — | — | — | 1,704 | ||||||||||||||||||||
Foreign currency | — | (7,798 | ) | — | — | — | — | — | ||||||||||||||||||||
Forwards | — | (23,831 | ) | — | — | — | — | — | ||||||||||||||||||||
Futures | 27,354 | — | — | — | — | — | — | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (325,915 | ) | 4,742,742 | 1,256,315 | 1,490,615 | 326,835 | 6,520,733 | 29,021,934 | ||||||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||||||
Net investment income — Class A | — | (39,234 | ) | — | — | — | (8,724 | ) | — | |||||||||||||||||||
Net investment income — Institutional Class | — | (61,271 | ) | — | — | — | (77,784 | ) | — | |||||||||||||||||||
Net realized capital gain — Class A | (32,569 | ) | (351,265 | ) | — | — | — | — | — | |||||||||||||||||||
Net realized capital gain — Class C | (2,967 | ) | (74,102 | ) | — | — | — | — | — | |||||||||||||||||||
Net realized capital gain — Institutional Class | (14,505 | ) | (174,648 | ) | — | — | — | — | — | |||||||||||||||||||
Total distributions | (50,041 | ) | (700,520 | ) | — | — | — | (86,508 | ) | — | ||||||||||||||||||
Capital share transactions: | ||||||||||||||||||||||||||||
Increase (decrease) in net assets from fund share transactions (Note 8) | (2,169,002 | ) | 6,860,869 | (4,414,061 | ) | (1,001,539 | ) | (3,187,848 | ) | (3,927,430 | ) | (50,399,652 | ) | |||||||||||||||
Total increase (decrease) in net assets | (2,544,958 | ) | 10,903,091 | (3,157,746 | ) | 489,076 | (2,861,013 | ) | 2,506,795 | (21,377,718 | ) | |||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Beginning of period | 6,747,181 | 55,211,709 | 9,763,433 | 8,415,236 | 6,304,898 | 30,238,464 | 179,167,411 | |||||||||||||||||||||
End of period | $ | 4,202,223 | $ | 66,114,800 | $ | 6,605,687 | $ | 8,904,312 | $ | 3,443,885 | $ | 32,745,259 | $ | 157,789,693 | ||||||||||||||
Undistributed (Accumulated) net investment income (loss), at end of period | $ | — | $ | 1,855,341 | $ | (46,337 | ) | $ | (34,658 | ) | $ | (11,931 | ) | $ | 75,167 | $ | (574,287 | ) |
The accompanying notes are an integral part of the financial statements.
30 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Quaker Akros Absolute Return
(For a Share Outstanding Throughout the Period)
Class A | ||||||||||||||||||||||||
(unaudited) For the Six-Month Period from July 1, 2013 to December 31, 2013 | Year Ended June 30, 2013 | Year Ended June 30, 2012 | For the Period September 1, 2010 to June 30, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2009 | |||||||||||||||||||
Net asset value, beginning of period | $7.73 | $8.29 | $8.84 | $9.16 | $9.84 | $9.68 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.11 | ) | (0.11 | ) | (0.09 | ) | (0.11 | ) | (0.09 | ) | (0.06 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.16 | (0.37 | ) | (0.46 | ) | 0.08 | (0.06 | ) | 0.51 | |||||||||||||||
Total from investment operations | 0.05 | (0.48 | ) | (0.55 | ) | (0.03 | ) | (0.15 | ) | 0.45 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | (0.07 | ) | |||||||||||||||||
Net realized capital gain | — | (0.08 | ) | — | (0.25 | ) | (0.53 | ) | (0.22 | ) | ||||||||||||||
Return of Capital | — | — | — | (0.04 | ) | — | — | |||||||||||||||||
Total distributions | — | (0.08 | ) | — | (0.29 | ) | (0.53 | ) | (0.29 | ) | ||||||||||||||
Paid-in capital from redemption fees | — | — | — | — | 0.00 | ^ | — | |||||||||||||||||
Net asset value, end of period | $7.78 | $7.73 | $8.29 | $8.84 | $9.16 | $9.84 | ||||||||||||||||||
Total Return(2) | 0.65 | %* | (5.82 | )% | (6.22 | )% | (0.39 | )%* | (1.45 | )% | (5.30 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $1,750 | $2,445 | $4,697 | $9,809 | $9,983 | $4,064 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Expenses before reductions(3) | 6.15 | %** | 4.45 | % | 2.67 | % | 3.27 | %** | 4.77 | % | 7.52 | % | ||||||||||||
Expenses net of fee waivers, if any(3) | 3.30 | %** | 1.99 | % | 1.99 | % | 2.00 | %** | 2.28 | % | 2.03 | % | ||||||||||||
Expenses before reductions (excluding dividend and interest expense for securities sold short)(3) | 5.84 | %** | 4.09 | % | 2.56 | % | 2.97 | %** | 4.48 | % | 7.48 | % | ||||||||||||
Expenses net of all reductions (excluding dividend and interest expense for securities sold short)(3) | 2.99 | %** | 1.63 | % | 1.88 | % | 1.69 | %** | 1.99 | % | 1.99 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets***: | ||||||||||||||||||||||||
Before waiver and expense reimbursement(3) | (5.55 | )%** | (3.78 | )% | (1.71 | )% | (2.72 | )%** | (4.12 | )% | (6.25 | )% | ||||||||||||
After waiver and expense reimbursement(3) | (2.70 | )%** | (1.32 | )% | (1.03 | )% | (1.44 | )%** | (1.63 | )% | (0.77 | )% | ||||||||||||
Portfolio turnover rate | 156.40 | %* | 215.38 | % | 103.42 | % | 136.57 | %* | 373.76 | % | 456.41 | % | ||||||||||||
Class C | |||||||||||||||||
(unaudited) For the Six-Month Period from July 1, 2013 to December 31, 2013 | Year Ended June 30, 2013 | Year Ended June 30, 2012 | For the Period October 4, 2010 (commencement of operations) to June 30, 2011 | ||||||||||||||
Net asset value, beginning of period | $7.56 | $8.18 | $8.78 | $9.25 | |||||||||||||
Income from investment operations: | |||||||||||||||||
Net investment loss(1) | (0.13 | ) | (0.16 | ) | (0.16 | ) | (0.12 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 0.15 | (0.38 | ) | (0.44 | ) | (0.06 | ) | ||||||||||
Total from investment operations | 0.02 | (0.54 | ) | (0.60 | ) | (0.18 | ) | ||||||||||
Distributions to shareholders from: | |||||||||||||||||
Net investment income | — | — | — | — | |||||||||||||
Net realized capital gain | — | (0.08 | ) | — | (0.25 | ) | |||||||||||
Return of Capital | — | — | — | (0.04 | ) | ||||||||||||
Total distributions | — | (0.08 | ) | — | (0.29 | ) | |||||||||||
Net asset value, end of period | $7.58 | $7.56 | $8.18 | $8.78 | |||||||||||||
Total Return(2) | 0.13 | %* | (6.64 | )% | (6.83 | )% | (2.02 | )%* | |||||||||
Ratios/supplemental data: | |||||||||||||||||
Net assets, end of period (000’ omitted) | $72 | $155 | $381 | $296 | |||||||||||||
Ratio of expenses to average net assets: | |||||||||||||||||
Expenses before reductions(3) | 6.90 | %** | 5.20 | % | 3.42 | % | 3.94 | %** | |||||||||
Expenses net of fee waivers, if any(3) | 4.05 | %** | 2.74 | % | 2.74 | % | 2.74 | %** | |||||||||
Expenses before reductions (excluding dividend and interest expense for securities sold short)(3) | 6.59 | %** | 4.84 | % | 3.29 | % | 3.84 | %** | |||||||||
Expenses net of all reductions (excluding dividend and interest expense for securities sold short)(3) | 3.74 | %** | 2.38 | % | 2.61 | % | 2.65 | %** | |||||||||
Ratio of net investment income (loss) to average net assets***: | |||||||||||||||||
Before waiver and expense reimbursement(3) | (6.30 | )%** | (4.53 | )% | (2.52 | )% | (3.05 | )%** | |||||||||
After waiver and expense reimbursement(3) | (3.45 | )%** | (2.07 | )% | (1.84 | )% | (1.86 | )%** | |||||||||
Portfolio turnover rate | 156.40 | %* | 215.38 | % | 103.42 | % | 136.57 | %(4)* |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
(3) | Expense waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, had such reductions not occurred. |
(4) | Portfolio turnover for this class is for the period September 1, 2010 to June 30, 2011. |
^ | Amount is less than $0.005 per share. |
* | Not annualized. |
** | Annualized. |
*** | The net investment income (loss) ratios include dividends on short positions. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 31
|
Financial Highlights
Quaker Akros Absolute Return
(For a Share Outstanding Throughout the Period)
Institutional Class | ||||||||||||||||
(unaudited) For the Six-Month Period from July 1, 2013 to December 31, 2013 | Year Ended June 30, 2013 | Year Ended June 30, 2012 | For the Period October 4, 2010 (commencement of operations) to June 30, 2011 | |||||||||||||
Net asset value, beginning of period | $7.79 | $8.33 | $8.86 | $9.25 | ||||||||||||
Income from investment operations: | ||||||||||||||||
Net investment loss(1) | (0.10 | ) | (0.09 | ) | (0.06 | ) | (0.07 | ) | ||||||||
Net realized and unrealized loss on investments | 0.15 | (0.37 | ) | (0.47 | ) | (0.03 | ) | |||||||||
Total from investment operations | 0.05 | (0.46 | ) | (0.53 | ) | (0.10 | ) | |||||||||
Distributions to shareholders from: | ||||||||||||||||
Net investment income | — | — | — | — | ||||||||||||
Net realized capital gain | — | (0.08 | ) | — | (0.25 | ) | ||||||||||
Return of Capital | — | — | — | (0.04 | ) | |||||||||||
Total distributions | — | (0.08 | ) | — | (0.29 | ) | ||||||||||
Net asset value, end of period | $7.84 | $7.79 | $8.33 | $8.86 | ||||||||||||
Total Return(2) | 0.64 | %* | (5.56 | )% | (5.98 | )% | (1.14 | )%* | ||||||||
Ratios/supplemental data: | ||||||||||||||||
Net assets, end of period (000’ omitted) | $1,462 | $1,602 | $1,670 | $2,418 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||
Expenses before reductions(3) | 5.90 | %** | 4.20 | % | 2.42 | % | 2.93 | %** | ||||||||
Expenses net of fee waivers, if any(3) | 3.05 | %** | 1.74 | % | 1.74 | % | 1.74 | %** | ||||||||
Expenses before reductions (excluding dividend and interest expense for securities sold short)(3) | 5.59 | %** | 3.84 | % | 2.31 | % | 2.62 | %** | ||||||||
Expenses net of all reductions (excluding dividend and interest expense for securities sold short)(3) | 2.74 | %** | 1.38 | % | 1.63 | % | 1.44 | %** | ||||||||
Ratio of net investment income (loss) to average net assets***: | ||||||||||||||||
Before waiver and expense reimbursement(3) | (5.30 | )%** | (3.53 | )% | (1.44 | )% | (2.17 | )%** | ||||||||
After waiver and expense reimbursement(3) | (2.45 | )%** | (1.07 | )% | (0.76 | )% | (0.99 | )%** | ||||||||
Portfolio turnover rate | 156.40 | %* | 215.38 | % | 103.42 | % | 136.57 | %(4)* |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
(3) | Expense waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, had such reductions not occurred. |
(4) | Portfolio turnover for this class is for the period September 1, 2010 to June 30, 2011. |
* | Not annualized. |
** | Annualized. |
*** | The net investment income (loss) ratios include dividends on short positions. |
The accompanying notes are an integral part of the financial statements.
32 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Financial Highlights
Quaker Event Arbitrage
(For a Share Outstanding Throughout the Period)
Class A | ||||||||||||||||||||||||||||
(unaudited) For the Six-Month Period from July 1, 2013 | Years Ended June 30, | For the Period January 1, 2010 | Years Ended December 31, | |||||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | to June 30, 2010 | 2009 | 2008 | ||||||||||||||||||||||
Net asset value, beginning of period | $12.81 | $11.93 | $12.50 | $12.54 | $11.80 | $9.23 | $12.43 | |||||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss)(1) | 0.21 | 0.37 | 0.11 | — | 0.34 | (0.05 | ) | (0.01 | ) | |||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.59 | 0.65 | (0.41 | ) | 0.06 | 0.40 | 2.62 | (3.19 | ) | |||||||||||||||||||
Total from investment operations | 0.80 | 1.02 | (0.30 | ) | 0.06 | 0.74 | 2.57 | (3.20 | ) | |||||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||||||
Net investment income | (0.01 | ) | (0.01 | ) | — | (0.06 | ) | — | — | — | ||||||||||||||||||
Net realized capital gain | (0.07 | ) | (0.13 | ) | (0.27 | ) | (0.04 | ) | — | — | — | |||||||||||||||||
Total distributions | (0.08 | ) | (0.14 | ) | (0.27 | ) | (0.10 | ) | — | — | — | |||||||||||||||||
Net asset value, end of period | $13.53 | $12.81 | $11.93 | $12.50 | $12.54 | $11.80 | $9.23 | |||||||||||||||||||||
Total Return(2) | 6.23 | %* | 8.70 | % | (2.31 | )% | 0.47 | % | 6.27 | %* | 27.84 | % | (25.74 | )% | ||||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $42,763 | $35,232 | $34,725 | $25,413 | $4,283 | $2,918 | $1,847 | |||||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Expense before reductions(3) | 2.13 | %** | 2.37 | % | 2.37 | % | 2.30 | % | 3.25 | %** | 3.86 | % | 3.51 | % | ||||||||||||||
Expense net of fee waivers, if any(3) | 1.99 | %** | 1.99 | % | 1.99 | % | 1.99 | % | 2.44 | %** | 1.91 | % | 2.00 | % | ||||||||||||||
Expense before reductions (excluding dividend and interest expense for securities sold short)(3) | 2.13 | %** | 2.34 | % | 2.35 | % | 2.24 | % | 2.56 | %** | 3.46 | % | 3.02 | % | ||||||||||||||
Expenses net of all reductions (excluding dividend and interest expenses for securities sold short)(3) | 1.99 | %** | 1.96 | % | 1.98 | % | 1.93 | % | 1.76 | %** | 1.50 | % | 1.50 | % | ||||||||||||||
Ratio of net investment income (loss) to average net assets***: | ||||||||||||||||||||||||||||
Before waiver and expense reimbursement(3) | 2.97 | %** | 2.64 | % | 0.55 | % | (0.28 | )% | 5.59 | ** | (0.47 | )% | (0.13 | )% | ||||||||||||||
After waiver and expense reimbursement(3) | 3.11 | %** | 3.02 | % | 0.92 | % | 0.04 | % | 5.59 | ** | (0.47 | )% | (0.13 | )% | ||||||||||||||
Portfolio turnover rate | 125.62 | %* | 186.15 | % | 156.57 | % | 98.65 | % | 138.58 | %* | 226.00 | % | 224.66 | % | ||||||||||||||
Class C | ||||||||||||||||||||
Years Ended June 30, | For the Period | |||||||||||||||||||
(unaudited) | June 7, 2010 | |||||||||||||||||||
For the Six-Month | (commencement | |||||||||||||||||||
Period from July 1, 2013 | of operations) to | |||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | June 30, 2010 | ||||||||||||||||
Net asset value, beginning of period | $12.57 | $11.78 | $12.45 | $12.55 | $12.35 | |||||||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income (loss)(1) | 0.15 | 0.28 | 0.02 | (0.07 | ) | (0.21 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.59 | 0.64 | (0.42 | ) | 0.04 | 0.41 | ||||||||||||||
Total from investment operations | 0.74 | 0.92 | (0.40 | ) | (0.03 | ) | 0.20 | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | — | — | — | (0.03 | ) | — | ||||||||||||||
Net realized capital gain | (0.07 | ) | (0.13 | ) | (0.27 | ) | (0.04 | ) | — | |||||||||||
Total distributions | (0.07 | ) | (0.13 | ) | (0.27 | ) | (0.07 | ) | — | |||||||||||
Net asset value, end of period | $13.24 | $12.57 | $11.78 | $12.45 | $12.55 | |||||||||||||||
Total Return(2) | 5.88 | %* | 7.91 | % | (3.13 | )% | (0.24 | )% | 1.62 | %* | ||||||||||
Ratios/supplemental data: | ||||||||||||||||||||
Net assets, end of period (000’ omitted) | $6,397 | $5,954 | $7,195 | $4,369 | $231 | |||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||
Expense before reductions(3) | 2.88 | %** | 3.12 | % | 3.12 | % | 3.08 | % | 2.74 | %** | ||||||||||
Expense net of fee waivers, if any(3) | 2.74 | %** | 2.74 | % | 2.74 | % | 2.74 | % | 2.74 | %** | ||||||||||
Expense before reductions (excluding dividend and interest expense for securities sold short)(3) | 2.88 | %** | 3.09 | % | 3.10 | % | 3.02 | % | 2.52 | %** | ||||||||||
Expenses net of all reductions (excluding dividend and interest expenses for securities sold short)(3) | 2.74 | %** | 2.71 | % | 2.73 | % | 2.68 | % | 2.52 | %** | ||||||||||
Ratio of net investment income (loss) to average net assets***: | ||||||||||||||||||||
Before waiver and expense reimbursement(3) | 2.22 | %** | 1.89 | % | (0.17 | )% | (0.91 | )% | (29.65 | )** | ||||||||||
After waiver and expense reimbursement(3) | 2.36 | %** | 2.27 | % | 0.21 | % | (0.57 | )% | (29.65 | )** | ||||||||||
Portfolio turnover rate | 125.62 | %* | 186.15 | % | 156.57 | % | 98.65 | % | 138.58 | %(4)* |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
(3) | Expense waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, had such reductions not occurred. |
(4) | Portfolio turnover for this class is for the period January 1, 2010 to June 30, 2010. |
* | Not annualized. |
** | Annualized. |
*** | The net investment income (loss) ratios include dividends on short positions. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 33
|
Financial Highlights
Quaker Event Arbitrage
(For a Share Outstanding Throughout the Period)
Institutional Class | ||||||||||||||||||||
For the Period | ||||||||||||||||||||
(unaudited) | June 7, 2010 | |||||||||||||||||||
For the Six-Month | (commencement | |||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | of operations) to | ||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | June 30, 2010 | ||||||||||||||||
Net asset value, beginning of period | $12.86 | $11.97 | $12.52 | $12.54 | $12.35 | |||||||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income (loss)(1) | 0.23 | 0.40 | 0.13 | 0.08 | (0.03 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.59 | 0.67 | (0.41 | ) | 0.02 | 0.22 | ||||||||||||||
Total from investment operations | 0.82 | 1.07 | (0.28 | ) | 0.10 | 0.19 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.02 | ) | (0.05 | ) | — | (0.08 | ) | — | ||||||||||||
Net realized capital gain | (0.07 | ) | (0.13 | ) | (0.27 | ) | (0.04 | ) | — | |||||||||||
Total distributions | (0.09 | ) | (0.18 | ) | (0.27 | ) | (0.12 | ) | — | |||||||||||
Net asset value, end of period | $13.59 | $12.86 | $11.97 | $12.52 | $12.54 | |||||||||||||||
Total Return(2) | 6.39 | %* | 9.04 | % | (2.14 | )% | 0.72 | % | 1.54 | %* | ||||||||||
Ratios/supplemental data: | ||||||||||||||||||||
Net assets, end of period (000’ omitted) | $41,708 | $24,929 | $13,292 | $19,941 | $743 | |||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||
Expense before reductions(3) | 1.88 | %** | 2.12 | % | 2.09 | % | 2.11 | % | 3.00 | %** | ||||||||||
Expense net of fee waivers, if any(3) | 1.74 | %** | 1.74 | % | 1.74 | % | 1.74 | % | 3.00 | %** | ||||||||||
Expense before reductions (excluding dividend and interest expense for securities sold short)(3) | 1.88 | %** | 2.09 | % | 2.08 | % | 2.06 | % | 2.88 | %** | ||||||||||
Expenses net of all reductions (excluding dividend and interest expenses for securities sold short)(3) | 1.74 | %** | 1.71 | % | 1.73 | % | 1.70 | % | 2.88 | %** | ||||||||||
Ratio of net investment income (loss) to average net assets***: | ||||||||||||||||||||
Before waiver and expense reimbursement(3) | 3.22 | %** | 2.89 | % | 0.75 | % | 0.26 | % | (3.81 | )** | ||||||||||
After waiver and expense reimbursement(3) | 3.36 | %** | 3.27 | % | 1.11 | % | 0.62 | % | (3.81 | )** | ||||||||||
Portfolio turnover rate | 125.62 | %* | 186.15 | % | 156.57 | % | 98.65 | % | 138.58 | %(4)* |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
(3) | Expense waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, had such reductions not occurred. |
(4) | Portfolio turnover for this class is for the period January 1, 2010 to June 30, 2010. |
* | Not annualized. |
** | Annualized. |
*** | The net investment income (loss) ratios include dividends on short positions. |
The accompanying notes are an integral part of the financial statements.
34 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Financial Highlights
Quaker Global Tactical Allocation Fund
(For a Share Outstanding Throughout the Period)
Class A | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $8.30 | $7.12 | $7.51 | $5.92 | $5.37 | $10.19 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.06 | ) | (0.09 | ) | (0.10 | ) | (0.09 | ) | (0.07 | ) | (0.05 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.71 | 1.27 | (0.29 | ) | 1.68 | 0.62 | (4.77 | ) | ||||||||||||||||
Total from investment operations | 1.65 | 1.18 | (0.39 | ) | 1.59 | 0.55 | (4.82 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | — | — | — | — | — | — | ||||||||||||||||||
Net asset value, end of period | $9.95 | $8.30 | $7.12 | $7.51 | $5.92 | $5.37 | ||||||||||||||||||
Total Return(2) | 19.88 | %* | 16.57 | % | (5.19 | )% | 26.86 | % | 10.24 | % | (47.30 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $4,429 | $3,856 | $5,707 | $11,708 | $12,889 | $16,380 | ||||||||||||||||||
Ratio of expenses to average net assets | 2.37 | %** | 2.83 | % | 2.68 | % | 2.41 | % | 2.32 | % | 2.38 | % | ||||||||||||
Ratio of expenses to average net assets (excluding dividend and interest expense for securities sold short) | 2.32 | %** | 2.83 | % | — | — | — | — | ||||||||||||||||
Ratio of net investment income (loss) to average net assets | (1.33 | )%** | (1.22 | )% | (1.41 | )% | (1.30 | )% | (1.12 | )% | (0.85 | )% | ||||||||||||
Portfolio turnover rate | 55.42 | %* | 484.31 | % | 879.75 | % | 732.27 | % | 1212.89 | % | 760.99 | % |
Class C | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $7.98 | $6.90 | $7.34 | $5.82 | $5.32 | $10.17 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.09 | ) | (0.14 | ) | (0.15 | ) | (0.14 | ) | (0.11 | ) | (0.09 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.64 | 1.22 | (0.29 | ) | 1.66 | 0.61 | (4.76 | ) | ||||||||||||||||
Total from investment operations | 1.55 | 1.08 | (0.44 | ) | 1.52 | 0.50 | (4.85 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | — | — | — | — | — | — | ||||||||||||||||||
Net asset value, end of period | $9.53 | $7.98 | $6.90 | $7.34 | $5.82 | $5.32 | ||||||||||||||||||
Total Return(2) | 19.42 | %* | 15.65 | % | (5.99 | )% | 26.12 | % | 9.40 | % | (47.69 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $2,289 | $2,124 | $3,158 | $6,880 | $9,512 | $11,386 | ||||||||||||||||||
Ratio of expenses to average net assets | 3.12 | %** | 3.58 | % | 3.43 | % | 3.16 | % | 3.07 | % | 3.13 | % | ||||||||||||
Ratio of expenses to average net assets (excluding dividend and interest expense for securities sold short) | 3.07 | %** | 3.58 | % | — | — | — | — | ||||||||||||||||
Ratio of net investment income (loss) to average net assets | (2.08 | )%** | (1.97 | )% | (2.15 | )% | (2.07 | )% | (1.87 | )% | (1.60 | )% | ||||||||||||
Portfolio turnover rate | 55.42 | %* | 484.31 | % | 879.75 | % | 732.27 | % | 1212.89 | % | 760.99 | % |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 35
|
Financial Highlights
Quaker Global Tactical Allocation Fund
(For a Share Outstanding Throughout the Period)
Institutional Class | ||||||||||||||||||||||||
For the Period | ||||||||||||||||||||||||
(unaudited) | July 23, 2008 | |||||||||||||||||||||||
For the Six-Month | (commencement | |||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | of operations) to | ||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | June 30, 2009 | |||||||||||||||||||
Net asset value, beginning of period | $9.49 | $8.12 | $8.55 | $6.71 | $6.08 | $10.00 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.06 | ) | (0.08 | ) | (0.09 | ) | (0.08 | ) | (0.05 | ) | (0.05 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.96 | 1.45 | (0.34 | ) | 1.92 | 0.68 | (3.87 | ) | ||||||||||||||||
Total from investment operations | 1.90 | 1.37 | (0.43 | ) | 1.84 | 0.63 | (3.92 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | — | — | — | — | — | — | ||||||||||||||||||
Net asset value, end of period | $11.39 | $9.49 | $8.12 | $8.55 | $6.71 | $6.08 | ||||||||||||||||||
Total Return(2) | 20.02 | %* | 16.87 | % | (5.03 | )% | 27.42 | % | 10.36 | % | (39.20 | )%* | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $1,144 | $625 | $899 | $987 | $877 | $226 | ||||||||||||||||||
Ratio of expenses to average net assets | 2.12 | %** | 2.58 | % | 2.47 | % | 2.16 | % | 1.86 | % | 2.23 | %** | ||||||||||||
Ratio of expenses to average net assets (excluding dividend and interest expense for securities sold short) | 2.07 | %** | 2.58 | % | — | — | — | — | ||||||||||||||||
Ratio of net investment income (loss) to average net assets | (1.08 | )%** | (0.97 | )% | (1.12 | )% | (1.05 | )% | (0.70 | )% | (0.74 | )%** | ||||||||||||
Portfolio turnover rate | 55.42 | %* | 484.31 | % | 879.75 | % | 732.27 | % | 1212.89 | % | 760.99 | %(3)* |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
(3) | Portfolio turnover for this class is for the period July 1, 2008 to June 30, 2009. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
36 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Financial Highlights
Quaker Mid-Cap Value Fund
(For a Share Outstanding Throughout the Period)
Class A | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $18.99 | $15.73 | $16.03 | $11.99 | $9.39 | $14.42 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(1) | (0.04 | ) | (0.14 | ) | (0.11 | ) | (0.13 | ) | (0.05 | ) | 0.01 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.69 | 3.40 | (0.19 | ) | 4.17 | 2.65 | (5.04 | ) | ||||||||||||||||
Total from investment operations | 2.65 | 3.26 | (0.30 | ) | 4.04 | 2.60 | (5.03 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | — | — | — | — | — | — | ||||||||||||||||||
Net asset value, end of period | $21.64 | $18.99 | $15.73 | $16.03 | $11.99 | $9.39 | ||||||||||||||||||
Total Return(2) | 13.95 | %* | 20.72 | % | (1.87 | )% | 33.69 | % | 27.69 | % | (34.88 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $6,402 | $6,029 | $6,114 | $7,229 | $6,796 | $6,967 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements and waived fees | 2.00 | %** | 2.19 | % | 2.21 | % | 2.13 | % | 2.09 | % | 1.96 | % | ||||||||||||
After expense reimbursements and waived fees | 2.00 | %** | 2.19 | % | 2.21 | % | 2.13 | % | 2.09 | % | 1.94 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.43 | )%** | (0.80 | )% | (0.70 | )% | (0.88 | )% | (0.41 | )% | 0.11 | % | ||||||||||||
Portfolio turnover rate | 37.31 | %* | 46.91 | % | 41.70 | % | 27.10 | % | 50.53 | % | 184.80 | % | ||||||||||||
Class C | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $16.91 | $14.11 | $14.48 | $10.92 | $8.61 | $13.32 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.11 | ) | (0.24 | ) | (0.20 | ) | (0.22 | ) | (0.12 | ) | (0.06 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 2.39 | 3.04 | (0.17 | ) | 3.78 | 2.43 | (4.65 | ) | ||||||||||||||||
Total from investment operations | 2.28 | 2.80 | (0.37 | ) | 3.56 | 2.31 | (4.71 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | — | — | — | — | — | — | ||||||||||||||||||
Net asset value, end of period | $19.19 | $16.91 | $14.11 | $14.48 | $10.92 | $8.61 | ||||||||||||||||||
Total Return(2) | 13.48 | %* | 19.84 | % | (2.56 | )% | 32.60 | % | 26.83 | % | (35.36 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $1,887 | $1,815 | $1,950 | $2,577 | $2,427 | $2,629 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements and waived fees | 2.75 | %** | 2.94 | % | 2.96 | % | 2.88 | % | 2.83 | % | 2.71 | % | ||||||||||||
After expense reimbursements and waived fees | 2.75 | %** | 2.94 | % | 2.96 | % | 2.88 | % | 2.83 | % | 2.69 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (1.18 | )%** | (1.55 | )% | (1.45 | )% | (1.63 | )% | (1.16 | )% | (0.62 | )% | ||||||||||||
Portfolio turnover rate | 37.31 | %* | 46.91 | % | 41.70 | % | 27.10 | % | 50.53 | % | 184.80 | % |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 37
|
Financial Highlights
Quaker Mid-Cap Value Fund
For a Share Outstanding Throughout the Period)
Institutional Class | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $19.83 | $16.39 | $16.66 | $12.43 | $9.70 | $14.87 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(1) | (0.02 | ) | (0.10 | ) | (0.07 | ) | (0.10 | ) | (0.02 | ) | 0.04 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.82 | 3.54 | (0.20 | ) | 4.33 | 2.75 | (5.21 | ) | ||||||||||||||||
Total from investment operations | 2.80 | 3.44 | (0.27 | ) | 4.23 | 2.73 | (5.17 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | — | — | — | — | — | — | ||||||||||||||||||
Net asset value, end of period | $22.63 | $19.83 | $16.39 | $16.66 | $12.43 | $9.70 | ||||||||||||||||||
Total Return(2) | 14.12 | %* | 20.99 | % | (1.62 | )% | 34.03 | % | 28.14 | % | (34.77 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $1,211 | $1,060 | $351 | $433 | $245 | $227 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements and waived fees | 1.75 | %** | 1.94 | % | 1.96 | % | 1.87 | % | 1.84 | % | 1.70 | % | ||||||||||||
After expense reimbursements and waived fees | 1.75 | %** | 1.94 | % | 1.96 | % | 1.87 | % | 1.84 | % | 1.68 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.18 | )%** | (0.55 | )% | (0.45 | )% | (0.62 | )% | (0.19 | )% | 0.36 | % | ||||||||||||
Portfolio turnover rate | 37.31 | %* | 46.91 | % | 41.70 | % | 27.10 | % | 50.53 | % | 184.80 | % |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
38 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Financial Highlights
Quaker Small-Cap Growth Tactical Allocation Fund
(For a Share Outstanding Throughout the Period)
Class A | ||||||||||||||||||||||||
Years Ended June 30, | For the Period | |||||||||||||||||||||||
(unaudited) | September 30, 2008 | |||||||||||||||||||||||
For the Six-Month | (commencement | |||||||||||||||||||||||
Period from July 1, 2013 | of operations) to | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | June 30, 2009 | |||||||||||||||||||
Net asset value, beginning of period | $9.59 | $8.88 | $10.28 | $9.77 | $10.09 | $10.00 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.07 | ) | (0.11 | ) | (0.14 | ) | (0.16 | ) | (0.16 | ) | (0.15 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.83 | 0.82 | (0.84 | ) | 0.90 | 1.29 | 0.24 | |||||||||||||||||
Total from investment operations | 0.76 | 0.71 | (0.98 | ) | 0.74 | 1.13 | 0.09 | |||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | (0.42 | ) | (0.23 | ) | (1.45 | ) | — | |||||||||||||||
Total distributions | — | — | (0.42 | ) | (0.23 | ) | (1.45 | ) | — | |||||||||||||||
Net asset value, end of period | $10.35 | $9.59 | $8.88 | $10.28 | $9.77 | $10.09 | ||||||||||||||||||
Total Return(2) | 7.92 | %* | 8.00 | % | (9.51 | )% | 7.79 | % | 11.75 | % | 0.90 | %* | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $1,103 | $1,594 | $2,507 | $9,082 | $13,281 | $3,728 | ||||||||||||||||||
Ratio of expenses to average net assets | 2.55 | %** | 2.45 | % | 2.24 | % | 2.02 | % | 1.89 | % | 2.64 | %** | ||||||||||||
Ratio of net investment income (loss) to average net assets | (1.35 | )%** | (1.24 | )% | (1.54 | )% | (1.70 | )% | (1.61 | )% | (2.15 | )%** | ||||||||||||
Portfolio turnover rate | 263.35 | %* | 441.74 | % | 625.61 | % | 879.32 | % | 991.29 | % | 714.79 | %* |
Class C | ||||||||||||||||||||||||
Years Ended June 30, | For the Period | |||||||||||||||||||||||
(unaudited) | September 30, 2008 | |||||||||||||||||||||||
For the Six-Month | (commencement | |||||||||||||||||||||||
Period from July 1, 2013 | of operations) to | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | June 30, 2009 | |||||||||||||||||||
Net asset value, beginning of period | $9.22 | $8.61 | $10.06 | $9.64 | $10.04 | $10.00 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.10 | ) | (0.18 | ) | (0.20 | ) | (0.23 | ) | (0.24 | ) | (0.19 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.80 | 0.79 | (0.83 | ) | 0.88 | 1.29 | 0.23 | |||||||||||||||||
Total from investment operations | 0.70 | 0.61 | (1.03 | ) | 0.65 | 1.05 | 0.04 | |||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | (0.42 | ) | (0.23 | ) | (1.45 | ) | — | |||||||||||||||
Total distributions | — | — | (0.42 | ) | (0.23 | ) | (1.45 | ) | — | |||||||||||||||
Net asset value, end of period | $9.92 | $9.22 | $8.61 | $10.06 | $9.64 | $10.04 | ||||||||||||||||||
Total Return(2) | 7.59 | %* | 7.08 | % | (10.23 | )% | 6.95 | % | 10.94 | % | 0.40 | %* | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $933 | $1,027 | $1,900 | $5,896 | $9,180 | $5,081 | ||||||||||||||||||
Ratio of expenses to average net assets | 3.30 | %** | 3.20 | % | 2.97 | % | 2.78 | % | 2.65 | % | 3.33 | %** | ||||||||||||
Ratio of net investment income (loss) to average net assets | (2.10 | )%** | (1.99 | )% | (2.25 | )% | (2.45 | )% | (2.35 | )% | (2.80 | )%** | ||||||||||||
Portfolio turnover rate | 263.35 | %* | 441.74 | % | 625.61 | % | 879.32 | % | 991.29 | % | 714.79 | %* |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 39
|
Financial Highlights
Quaker Small-Cap Growth Tactical Allocation Fund
(For a Share Outstanding Throughout the Period)
Institutional Class | ||||||||||||||||||||||||
Years Ended June 30, | For the Period | |||||||||||||||||||||||
(unaudited) | September 30, 2008 | |||||||||||||||||||||||
For the Six-Month | (commencement | |||||||||||||||||||||||
Period from July 1, 2013 | of operations) to | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | June 30, 2009 | |||||||||||||||||||
Net asset value, beginning of period | $9.72 | $8.98 | $10.37 | $9.84 | $10.13 | $10.00 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.06 | ) | (0.09 | ) | (0.12 | ) | (0.14 | ) | (0.14 | ) | (0.12 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.85 | 0.83 | (0.85 | ) | 0.90 | 1.30 | 0.25 | |||||||||||||||||
Total from investment operations | 0.79 | 0.74 | (0.97 | ) | 0.76 | 1.16 | 0.13 | |||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | (0.42 | ) | (0.23 | ) | (1.45 | ) | — | |||||||||||||||
Total distributions | — | — | (0.42 | ) | (0.23 | ) | (1.45 | ) | — | |||||||||||||||
Net asset value, end of period | $10.51 | $9.72 | $8.98 | $10.37 | $9.84 | $10.13 | ||||||||||||||||||
Total Return(2) | 8.13 | %* | 8.24 | % | (9.33 | )% | 7.93 | % | 12.01 | % | 1.30 | %* | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $455 | $823 | $1,898 | $5,087 | $4,499 | $721 | ||||||||||||||||||
Ratio of expenses to average net assets | 2.30 | %** | 2.20 | % | 1.99 | % | 1.81 | % | 1.65 | % | 2.30 | %** | ||||||||||||
Ratio of net investment income (loss) to average net assets | (1.10 | )%** | (0.99 | )% | (1.26 | )% | (1.47 | )% | (1.37 | )% | (1.76 | )%** | ||||||||||||
Portfolio turnover rate | 263.35 | %* | 441.74 | % | 625.61 | % | 879.32 | % | 991.29 | % | 714.79 | %* |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
40 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Financial Highlights
Quaker Small-Cap Value Fund
(For a Share Outstanding Throughout the Period)
Class A | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $19.50 | $15.85 | $16.53 | $11.54 | $9.90 | $13.88 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(1) | 0.00 | ^ | 0.09 | (0.08 | ) | (0.05 | ) | (0.07 | ) | (0.01 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.67 | 3.58 | (0.60 | ) | 5.04 | 1.71 | (3.96 | ) | ||||||||||||||||
Total from investment operations | 3.67 | 3.67 | (0.68 | ) | 4.99 | 1.64 | (3.97 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.02 | ) | — | — | — | — | ||||||||||||||||
Net realized capital gain | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.06 | ) | (0.02 | ) | — | — | — | (0.01 | ) | |||||||||||||||
Net asset value, end of period | $23.11 | $19.50 | $15.85 | $16.53 | $11.54 | $9.90 | ||||||||||||||||||
Total Return(2) | 18.87 | %* | 23.17 | % | (4.11 | )% | 43.24 | % | 16.57 | % | (28.61 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $8,714 | $7,727 | $8,347 | $14,168 | $19,398 | $20,210 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements and waived fees | 1.81 | %** | 1.93 | % | 1.96 | % | 1.98 | % | 1.89 | % | 1.83 | % | ||||||||||||
After expense reimbursements and waived fees | 1.81 | %** | 1.93 | % | 1.96 | % | 1.98 | % | 1.83 | % | 1.74 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | 0.01 | %** | 0.49 | % | (0.52 | )% | (0.35 | )% | (0.60 | )% | (0.09 | )% | ||||||||||||
Portfolio turnover rate | 96.02 | %* | 142.27 | % | 157.77 | % | 130.60 | % | 112.61 | % | 122.83 | % | ||||||||||||
Class C | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $16.49 | $13.49 | $14.17 | $9.98 | $8.62 | $12.18 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.07 | ) | (0.04 | ) | (0.16 | ) | (0.14 | ) | (0.14 | ) | (0.08 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 3.10 | 3.04 | (0.52 | ) | 4.33 | 1.50 | (3.47 | ) | ||||||||||||||||
Total from investment operations | 3.03 | 3.00 | (0.68 | ) | 4.19 | 1.36 | (3.55 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Net asset value, end of period | $19.52 | $16.49 | $13.49 | $14.17 | $9.98 | $8.62 | ||||||||||||||||||
Total Return(2) | 18.37 | %* | 22.24 | % | (4.80 | )% | 41.98 | % | 15.78 | % | (29.16 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $1,724 | $1,625 | $1,863 | $2,524 | $2,085 | $2,688 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements and waived fees | 2.56 | %** | 2.68 | % | 2.70 | % | 2.73 | % | 2.63 | % | 2.58 | % | ||||||||||||
After expense reimbursements and waived fees | 2.56 | %** | 2.68 | % | 2.70 | % | 2.73 | % | 2.57 | % | 2.49 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.74 | )%** | (0.26 | )% | (1.25 | )% | (1.15 | )% | (1.36 | )% | (0.86 | )% | ||||||||||||
Portfolio turnover rate | 96.02 | %* | 142.27 | % | 157.77 | % | 130.60 | % | 112.61 | % | 122.83 | % |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
^ | Amount is less than $0.005 per share. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 41
|
Financial Highlights
Quaker Small-Cap Value Fund
(For a Share Outstanding Throughout the Period)
Institutional Class | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $20.29 | $16.50 | $17.15 | $11.96 | $10.24 | $14.32 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(1) | 0.03 | 0.13 | (0.04 | ) | (0.01 | ) | (0.04 | ) | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.81 | 3.73 | (0.61 | ) | 5.20 | 1.77 | (4.09 | ) | ||||||||||||||||
Total from investment operations | 3.84 | 3.86 | (0.65 | ) | 5.19 | 1.73 | (4.07 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.07 | ) | — | — | (0.01 | ) | — | |||||||||||||||
Net realized capital gain | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.08 | ) | (0.07 | ) | — | — | (0.01 | ) | (0.01 | ) | ||||||||||||||
Net asset value, end of period | $24.05 | $20.29 | $16.50 | $17.15 | $11.96 | $10.24 | ||||||||||||||||||
Total Return(2) | 18.94 | %* | 23.44 | % | (3.79 | )% | 43.39 | % | 16.90 | % | (28.43 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $27,449 | $23,393 | $20,028 | $23,073 | $61,004 | $60,675 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements and waived fees | 1.56 | %** | 1.68 | % | 1.71 | % | 1.73 | % | 1.64 | % | 1.59 | % | ||||||||||||
After expense reimbursements and waived fees | 1.56 | %** | 1.68 | % | 1.71 | % | 1.73 | % | 1.58 | % | 1.50 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | 0.26 | %** | 0.74 | % | (0.25 | )% | (0.07 | )% | (0.35 | )% | 0.19 | % | ||||||||||||
Portfolio turnover rate | 96.02 | %* | 142.27 | % | 157.77 | % | 130.60 | % | 112.61 | % | 122.83 | % |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
42 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Financial Highlights
Quaker Strategic Growth Fund
(For a Share Outstanding Throughout the Period)
Class A | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $19.31 | $16.13 | $16.53 | $13.33 | $12.33 | $28.45 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.14 | ) | (0.15 | ) | (0.15 | ) | (0.14 | ) | (0.10 | ) | (0.07 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 3.93 | 3.33 | (0.25 | ) | 3.34 | 1.10 | (14.08 | ) | ||||||||||||||||
Total from investment operations | 3.79 | 3.18 | (0.40 | ) | 3.20 | 1.00 | (14.15 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | (1.97 | ) | |||||||||||||||||
Total distributions | — | — | — | — | — | (1.97 | ) | |||||||||||||||||
Net asset value, end of period | $23.10 | $19.31 | $16.13 | $16.53 | $13.33 | $12.33 | ||||||||||||||||||
Total Return(2) | 19.63 | %* | 19.71 | % | (2.42 | )% | 24.01 | % | 8.11 | % | (49.61 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $92,176 | $88,970 | $111,778 | $186,877 | $306,523 | $436,015 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements and waived fees(3) | 2.18 | %** | 2.36 | % | 2.30 | % | 2.21 | % | 1.99 | % | 1.89 | % | ||||||||||||
After expense reimbursements and waived fees(3) | 2.18 | %** | 2.24 | % | 2.24 | % | 1.99 | % | 1.99 | % | 1.89 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before expense reimbursement and waived fees(3) | (1.31 | )%** | (0.98 | )% | (1.03 | )% | (1.14 | )% | (0.69 | )% | (0.45 | )% | ||||||||||||
After expense reimbursement and waived fees(3) | (1.31 | )%** | (0.86 | )% | (0.98 | )% | (0.92 | )% | (0.69 | )% | (0.45 | )% | ||||||||||||
Portfolio turnover rate | 76.80 | %* | 294.35 | % | 178.23 | % | 136.18 | % | 276.31 | % | 468.72 | % | ||||||||||||
Class C | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $17.19 | $14.47 | $14.94 | $12.14 | $11.31 | $26.61 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.20 | ) | (0.25 | ) | (0.24 | ) | (0.23 | ) | (0.19 | ) | (0.17 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 3.50 | 2.97 | (0.23 | ) | 3.03 | 1.02 | (13.16 | ) | ||||||||||||||||
Total from investment operations | 3.30 | 2.72 | (0.47 | ) | 2.80 | 0.83 | (13.33 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | (1.97 | ) | |||||||||||||||||
Total distributions | — | — | — | — | — | (1.97 | ) | |||||||||||||||||
Net asset value, end of period | $20.49 | $17.19 | $14.47 | $14.94 | $12.14 | $11.31 | ||||||||||||||||||
Total Return(2) | 19.20 | %* | 18.80 | % | (3.15 | )% | 23.06 | % | 7.34 | % | (49.99 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $24,438 | $22,968 | $27,102 | $42,729 | $63,002 | $92,152 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements and waived fees(3) | 2.93 | %** | 3.11 | % | 3.04 | % | 2.96 | % | 2.74 | % | 2.64 | % | ||||||||||||
After expense reimbursements and waived fees(3) | 2.93 | %** | 2.99 | % | 2.99 | % | 2.74 | % | 2.74 | % | 2.64 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before expense reimbursement and waived fees(3) | (2.06 | )%** | (1.74 | )% | (1.77 | )% | (1.90 | )% | (1.44 | )% | (1.21 | )% | ||||||||||||
After expense reimbursement and waived fees(3) | (2.06 | )%** | (1.62 | )% | (1.72 | )% | (1.68 | )% | (1.44 | )% | (1.21 | )% | ||||||||||||
Portfolio turnover rate | 76.80 | %* | 294.35 | % | 178.23 | % | 136.18 | % | 276.31 | % | 468.72 | % |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
(3) | Expense waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, had such reductions not occurred. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 43
|
Financial Highlights
Quaker Strategic Growth Fund
(For a Share Outstanding Throughout the Period)
Institutional Class | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the Six-Month | ||||||||||||||||||||||||
Period from July 1, 2013 | Years Ended June 30, | |||||||||||||||||||||||
to December 31, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $19.99 | $16.66 | $17.03 | $13.71 | $12.65 | $29.03 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment loss(1) | (0.12 | ) | (0.11 | ) | (0.11 | ) | (0.11 | ) | (0.07 | ) | (0.04 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 4.07 | 3.44 | (0.26 | ) | 3.43 | 1.13 | (14.37 | ) | ||||||||||||||||
Total from investment operations | 3.95 | 3.33 | (0.37 | ) | 3.32 | 1.06 | (14.41 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Net realized capital gain | — | — | — | — | — | (1.97 | ) | |||||||||||||||||
Total distributions | — | — | — | — | — | (1.97 | ) | |||||||||||||||||
Net asset value, end of period | $23.94 | $19.99 | $16.66 | $17.03 | $13.71 | $12.65 | ||||||||||||||||||
Total Return(2) | 19.76 | %* | 19.99 | % | (2.17 | )% | 24.22 | % | 8.38 | % | (49.51 | )% | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’ omitted) | $56,643 | $45,851 | $40,288 | $41,519 | $20,355 | $46,136 | ||||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements and waived fees(3) | 1.93 | %** | 2.11 | % | 2.03 | % | 1.97 | % | 1.75 | % | 1.64 | % | ||||||||||||
After expense reimbursements and waived fees(3) | 1.93 | %** | 1.99 | % | 1.99 | % | 1.74 | % | 1.75 | % | 1.64 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before expense reimbursement and waived fees(3) | (1.06 | )%** | (0.74 | )% | (0.72 | )% | (0.89 | )% | (0.46 | )% | (0.23 | )% | ||||||||||||
After expense reimbursement and waived fees(3) | (1.06 | )%** | (0.62 | )% | (0.68 | )% | (0.66 | )% | (0.46 | )% | (0.23 | )% | ||||||||||||
Portfolio turnover rate | 76.80 | %* | 294.35 | % | 178.23 | % | 136.18 | % | 276.31 | % | 468.72 | % |
(1) | The average shares outstanding method has been applied for per share information. |
(2) | Total investment return is based on the change in net asset value of a share during the period, assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
(3) | Expense waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, had such reductions not occurred. |
* | Not annualized. |
** | Annualized. |
The accompanying notes are an integral part of the financial statements.
44 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Notes to the Financial Statements (unaudited)
Note 1 — Organization
The Quaker Investment Trust (“Trust”), a diversified, open-end management investment company, was organized as a Massachusetts business trust on October 24, 1990, and is registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Trust’s Amended and Restated Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest. The Trust currently has seven series: Quaker Akros Absolute Return Fund (formerly, Quaker Akros Absolute Strategies Fund) (“Akros Absolute Return”), Quaker Event Arbitrage Fund (“Event Arbitrage”), Quaker Global Tactical Allocation Fund (“Global Tactical Allocation”), Quaker Mid-Cap Value Fund (“Mid-Cap Value”), Quaker Small-Cap Growth Tactical Allocation Fund (“Small-Cap Growth Tactical Allocation”), Quaker Small-Cap Value Fund (“Small-Cap Value”) and Quaker Strategic Growth Fund (“Strategic Growth”) (each a “Fund” and collectively, “Funds”). All Funds are diversified. The investment objectives of each Fund are set forth below.
Akros Absolute Return commenced operations on October 4, 2010 in conjunction with the reorganization of the Akros Absolute Return Fund. The predecessor Absolute Return Fund commenced operations on September 30, 2005. Strategic Growth and Small-Cap Value commenced operations on November 25, 1996. Mid-Cap Value commenced operations on December 31, 1997. Global Tactical Allocation commenced operations on May 1, 2008. Small-Cap Growth Tactical Allocation commenced operations on September 30, 2008. Event Arbitrage commenced operations on June 7, 2010 in conjunction with the reorganization of the Pennsylvania Avenue Event Driven Fund (“Event Driven Fund”). The predecessor Event Driven Fund commenced operations on September 19, 2002. The investment objective of these Funds is to seek long-term growth of capital. The investment objective of these funds is non-fundamental in that this objective may be changed by the Board of Trustees (“Board” or “Trustees”) without shareholder approval.
The Funds currently offer three classes of shares (Class A, Class C and Institutional Class Shares). Class A Shares are charged a front-end sales charge and a distribution and servicing fee; Class C shares are charged a distribution fee, but bear no front-end sales charge or contingent deferred sales charge (“CDSC”); and Institutional Class Shares bear no front-end sales charge or CDSC, but have higher minimum investment thresholds. Quaker Funds, Inc.(“QFI”), the investment adviser to each of the Funds, has the ability to waive the minimum investment for Institutional Class shares at its discretion.
Note 2 — Summary of Significant Accounting Policies and Other Information
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
A. Security Valuation. The Funds’ investments in securities are carried at market value. Securities listed on an exchange or quoted on a national market system are generally valued at the last quoted sales price at the time of valuation. Other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price. Each security reported on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price.
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board.
Short-term investments, if any, are valued at amortized cost, which approximates fair market value.
The Funds may enter into forward foreign currency contracts to lock in the U.S. dollar cost of purchase and sale transactions or to defend the portfolio against currency fluctuations. A forward foreign currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated rate. These contracts are valued daily, and the Fund’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting, is included in the Statements of Assets and Liabilities. Realized and unrealized gains and losses are included in the Statements of Operations. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of the contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
The Funds have adopted fair valuation procedures to value securities at fair market value in certain circumstances, and the Trust has established a Valuation Committee responsible for determining when fair valuing a security is necessary and appropriate. The Funds will value securities at fair market value when market quotations are not readily available or when securities cannot be accurately valued within established pricing procedures. The Valuation Committee may also fair value foreign securities whose prices may have been affected by events occurring after the close of trading in their respective markets but prior to the time the Fund holding the foreign securities calculates its net asset value. The Funds’ fair valuation procedures are designed to help ensure that prices at which Fund shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders.
The Fund is required to disclose information regarding the fair value measurements of the Fund’s assets and liabilities. Fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. The disclosure requirements utilize a three-tier hierarchy to maximize the use of observable market data, minimize the use of unobservable inputs and establish classification of fair value measurements for disclosure purposes. A financial instrument’s level within the fair value hierarchy is based on the lowest level that is significant to the fair value measurement. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including the pricing model used and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The significant unobservable inputs used in the fair value measurement of the reporting entity’s private equity holdings are the cost of prior transactions in the secondary market, prior stock repurchase offers from the company, single broker quotes and discounts applied for a lack of marketability. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement.
Various inputs may be used to determine the value of each Fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level I — Quoted prices in active markets for identical securities.
Level II — Prices determined using significant other observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Municipal securities, long-term U.S. Government obligations and corporate debt securities
2 0 1 3 S E M I - A N N U A L R E P O R T │ 45
|
Notes to the Financial Statements (unaudited)
Note 2 — Summary of Significant Accounting Policies and Other Information (Continued)
are valued in accordance with the evaluated price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Other securities that are categorized as Level 2 in the hierarchy include, but are not limited to, warrants that do not trade on an exchange, OTC options and international equity securities valued by an independent third party in order to adjust for stale pricing and foreign market holidays.
Level III — Prices determined using significant unobservable inputs (including the Fund’s own assumptions). For restricted equity securities where observable inputs are limited, assumptions about market activity and risk are used in determining fair value. These are categorized as Level 3 in the hierarchy.
For international equity securities traded on a foreign exchange or market which closes prior to a Fund’s Valuation Time, in order to adjust for events which occur between the close of the foreign exchange they are traded on and the close of the New York Stock Exchange, a fair valuation model is used, and these securities are categorized as Level 2.
A Fund may hold securities, some of which are classified as Level 3 investments (as defined below). Level 3 investments have significant unobservable inputs, as they trade infrequently. In determining the fair value of these investments, management uses the market approach which includes as the primary input the capital balance reported; however, adjustments to the reported capital balance may be made based on various factors, including, but not limited to, the attributes of the interest held, including the
rights and obligations, and any restrictions or illiquidity of such interests, and the fair value of these securities.
The value of a foreign security is generally determined as of the close of trading on the foreign stock exchange on which the security is primarily traded, or as of the close of trading on the New York Stock Exchange (“NYSE”), if earlier. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at the close of the NYSE (generally 4:00 p.m. Eastern time) on the day that the value of the foreign security is determined. If no sale is reported at that time, the foreign security will be valued within the range of the most recent quoted bid and ask prices. If market quotations are not readily available for a foreign security or an event has occurred that caused a quotation to be unavailable or unreliable, the Valuation Committee will fair value foreign securities using the procedures described below.
The Trust has adopted fair valuation procedures to value securities at fair market value when independent prices are unavailable or unreliable, and the Trust has established a Valuation Committee that is responsible for determining when fair valuing a security is necessary and appropriate. Securities and assets for which market quotations are not readily available may be valued based upon valuation methods that include: (i) multiple of earnings; (ii) yield to maturity with respect to debt issues; (iii) discounts from market prices of similar freely traded securities; or (iv) a combination of these methods. Securities may also be priced using fair value pricing methods when their closing prices do not reflect their market values at the time the Fund calculates its net asset value (“NAV”) because an event had occurred since the closing prices were established on the domestic or foreign exchange or market but before the Fund’s NAV calculation.
The following is a summary of the fair valuations according to the inputs used as of December 31, 2013 in valuing the Fund’s assets and liabilities:
Description QUAKER AKROS ABSOLUTE RETURN FUND | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Domestic Common Stocks | $ | 106,950 | $ | — | $ | — | $ | 106,950 | ||||||||
Foreign Common Stocks | $ | 159,715 | — | — | 159,715 | |||||||||||
Domestic Private Placements | — | — | 18,530 | 18,530 | ||||||||||||
Warrants | 18,415 | — | — | 18,415 | ||||||||||||
Short-Term Investments | — | 747,910 | — | 747,910 | ||||||||||||
Investments Purchased with Proceeds from Security Lending | 35,800 | — | — | 35,800 | ||||||||||||
Total Investments in Securities | $ | 320,880 | $ | 747,910 | $ | 18,530 | $ | 1,087,320 | ||||||||
Common Stocks sold short | $ | (514,074 | ) | $ | — | $ | — | $ | (514,074 | ) | ||||||
Exchange-Traded Funds sold short | (514,070 | ) | — | — | (514,070 | ) | ||||||||||
Total Investments in Securities sold short | $ | (1,028,144 | ) | $ | — | $ | — | $ | (1,028,144 | ) | ||||||
Description QUAKER EVENT ARBITRAGE FUND | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Domestic Common Stocks | $ | 60,991,085 | $ | 5,500 | $ | 2,069,031 | $ | 63,065,616 | ||||||||
Foreign Common Stocks | 6,807,982 | — | 103,554 | 6,911,536 | ||||||||||||
Preferred Stocks | 323,116 | — | 1,116,700 | 1,439,816 | ||||||||||||
Real Estate Investment Trusts | 2,113,446 | — | 250,000 | 2,363,446 | ||||||||||||
Rights | 221,000 | — | — | 221,000 | ||||||||||||
Warrants | — | 541,298 | — | 541,298 | ||||||||||||
Asset Backed Securities | — | 2,312,501 | — | 2,312,501 | ||||||||||||
Convertible Bonds | — | 1,185,440 | 100,000 | 1,285,440 | ||||||||||||
Corporate Bonds | — | 1,335,705 | — | 1,335,705 | ||||||||||||
Foreign Government Bond | — | 145,231 | — | 145,231 | ||||||||||||
Mortgage Backed Securities | — | 1,580,035 | — | 1,580,035 | ||||||||||||
Municipal Bonds | — | 1,375,735 | — | 1,375,735 | ||||||||||||
Term Loan | — | — | 511,054 | 511,054 | ||||||||||||
Purchased Options | 583,894 | 1,346,458 | — | 1,930,352 | ||||||||||||
Investments Purchased with Proceeds from Securities Lending | 4,119,273 | — | — | 4,119,273 | ||||||||||||
Total Investments in Securities | $ | 75,159,796 | $ | 9,827,903 | $ | 4,150,339 | $ | 89,138,038 | ||||||||
Common Stocks sold short | $ | (6,085,488 | ) | $ | — | $ | — | $ | (6,085,488 | ) | ||||||
Real Estate Investment Trusts sold short | (349,218 | ) | — | — | (349,218 | ) | ||||||||||
Written Options | (704,557 | ) | (1,698,767 | ) | (281,566 | ) | (2,684,890 | ) | ||||||||
Total Investments in Securities sold short | $ | (7,139,263 | ) | $ | (1,698,767 | ) | $ | (281,566 | ) | $ | (9,119,596 | ) | ||||
Description QUAKER GLOBAL TACTICAL ALLOCATION FUND | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 7,524,524 | $ | — | $ | 90,668 | $ | 7,615,192 | ||||||||
Investments Purchased with Proceeds from Securities Lending | 2,247,332 | — | — | 2,247,332 | ||||||||||||
Total Investments in Securities | $ | 9,771,856 | $ | — | $ | 90,668 | $ | 9,862,524 | ||||||||
Exchange-Traded Funds sold short | 136,828 | — | — | 136,828 | ||||||||||||
Total Investments in Securities sold short | $ | 136,828 | $ | — | $ | — | $ | 136,828 |
46 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Note 2 — Summary of Significant Accounting Policies and Other Information (Continued)
Description | QUAKER MID-CAP VALUE FUND | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Domestic Common Stocks | $ | 8,041,326 | $ | — | $ | — | $ | 8,041,326 | |||||||||
Foreign Common Stocks | 476,934 | — | — | 476,934 | |||||||||||||
Real Estate Investment Trusts | 805,374 | — | — | 805,374 | |||||||||||||
Investments Purchased with Proceeds from Securities Lending | 3,956,427 | — | — | 3,956,427 | |||||||||||||
Total Investments in Securities | $ | 13,280,061 | $ | — | $ | — | $ | 13,280,061 | |||||||||
Description | QUAKER SMALL-CAP GROWTH TACTICAL ALLOCATION FUND | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Domestic Common Stocks | $ | 1,490,763 | $ | — | $ | — | $ | 1,490,763 | |||||||||
Foreign Common Stocks | 405,273 | — | — | 405,273 | |||||||||||||
Exchange-Traded Funds | 244,734 | — | — | 244,734 | |||||||||||||
Investments Purchased with Proceeds from Securities Lending | 660,476 | — | — | 660,476 | |||||||||||||
Total Investments in Securities | $ | 2,801,246 | $ | — | $ | — | $ | 2,801,246 | |||||||||
Description | QUAKER SMALL-CAP VALUE FUND | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Domestic Common Stocks | $ | 31,907,748 | $ | — | $ | — | $ | 31,907,748 | |||||||||
Foreign Common Stocks | 4,109,822 | — | — | 4,109,822 | |||||||||||||
Real Estate Investment Trusts | 1,672,635 | — | — | 1,672,635 | |||||||||||||
Investments Purchased with Proceeds from Securities Lending | 8,020,202 | — | — | 8,020,202 | |||||||||||||
Total Investments in Securities | $ | 45,710,407 | $ | — | $ | — | $ | 45,710,407 | |||||||||
Description | QUAKER STRATEGIC GROWTH FUND | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Domestic Common Stocks | $ | 126,870,702 | $ | — | $ | 2,520,034 | $ | 129,390,736 | |||||||||
Foreign Common Stocks | 35,575,451 | — | — | 35,575,451 | |||||||||||||
Investments Purchased with Proceeds from Securities Lending | 12,050,096 | — | — | 12,050,096 | |||||||||||||
Total Investments in Securities | $ | 174,496,249 | $ | — | $ | 2,520,034 | $ | 177,016,283 |
Refer to the Fund’s Schedules of Investments for industry classifications.
Transfers are recognized at the end of the reporting period.
Level 3 Reconciliation
The following is a reconciliation of Akros Absolute Return’s Event Arbitrage’s, Global Tactical Allocation’s and Strategic Growth’s Level 3 investments for which significant unobservable inputs were used in determining value. See the schedules of investments for industry breakout:
Net Unrealized | Amortized | |||||||||||||||||||||||||||||||||||
Balance as of | Realized | appreciation | discounts/ | Transfers in | Transfers out | Balance as of | ||||||||||||||||||||||||||||||
QUAKER AKROS ABSOLUTE RETURN FUND | June 30, 2013 | Purchases | Sales | gain (loss) | (depreciation) | premiums | to Level 3 | of Level 3 | 12/31/2013 | |||||||||||||||||||||||||||
Common Stocks | $ | 8 | $— | $ | — | $ | (24,344 | ) | $ | 24,336 | $— | $— | $— | $ | — | |||||||||||||||||||||
Preferred Stocks | 112,500 | — | (150,000 | ) | 82,650 | (45,150 | ) | — | — | — | — | |||||||||||||||||||||||||
Private Placements | 18,771 | — | — | — | (241 | ) | — | — | — | 18,530 | ||||||||||||||||||||||||||
Warrants | 4,889 | — | (4,500 | ) | 4,200 | (4,589 | ) | — | — | — | — | |||||||||||||||||||||||||
$ | 136,168 | $— | $ | (154,500 | ) | $ | 62,506 | $ | (25,644 | ) | $— | $— | $— | $ | 18,530 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) for Level 3 investments still held as of December 31, 2013 | $ | (241 | ) | |||||||||||||||||||||||||||||||||
Net Unrealized | Amortized | |||||||||||||||||||||||||||||||||||
Balance as of | Realized | appreciation | discounts/ | Transfers in | Transfers out | Balance as of | ||||||||||||||||||||||||||||||
QUAKER EVENT ARBITRAGE FUND | June 30, 2013 | Purchases | Sales | gain (loss) | (depreciation) | premiums | to Level 3 | of Level 3 | 12/31/2013 | |||||||||||||||||||||||||||
Common Stocks | $ | 1,248,016 | $ | 803,598 | $ | — | $ | — | $ | 118,931 | $ | — | $ | 2,040 | $ | — | $ | 2,172,585 | ||||||||||||||||||
Preferred Stocks | 613,000 | 556,900 | — | — | (53,200 | ) | — | — | — | 1,116,700 | ||||||||||||||||||||||||||
Real Estate Investment Trusts | — | 250,000 | — | — | — | — | — | — | 250,000 | |||||||||||||||||||||||||||
Asset Backed Securities | 240,000 | 50,000 | — | — | 241,435 | (251,670 | ) | — | (279,765 | ) | — | |||||||||||||||||||||||||
Convertible Bonds | 503,750 | 65,000 | — | — | 145,614 | 99,636 | 100,000 | (814,000 | ) | 100,000 | ||||||||||||||||||||||||||
Term Loan | 511,054 | — | — | — | — | — | — | — | 511,054 | |||||||||||||||||||||||||||
Purchased Options | 626,467 | — | (514,847 | ) | (23,450 | ) | (88,170 | ) | — | — | — | — | ||||||||||||||||||||||||
$ | 3,742,287 | $ | 1,725,498 | $ | (514,847 | ) | $ | (23,450 | ) | $ | 364,610 | $ | (152,034 | ) | $ | 102,040 | $ | (1,093,765 | ) | $ | 4,150,339 | |||||||||||||||
Written Options | $ | (916,623 | ) | $ | (138,067 | ) | $ | 817,986 | $ | (212,068 | ) | $ | 167,206 | $ | — | $ | — | $ | — | $ | (281,566 | ) | ||||||||||||||
Net change in unrealized appreciation (depreciation) for Level 3 investments still held as of December 31, 2013 | $ | (152,440 | ) | |||||||||||||||||||||||||||||||||
Net Unrealized | Amortized | |||||||||||||||||||||||||||||||||||
Balance as of | Realized | appreciation | discounts/ | Transfers in | Transfers out | Balance as of | ||||||||||||||||||||||||||||||
QUAKER GLOBAL TACTICAL ALLOCATION FUND | June 30, 2013 | Purchases | Sales | gain (loss) | (depreciation) | premiums | to Level 3 | of Level 3 | 12/31/2013 | |||||||||||||||||||||||||||
Common Stocks | $— | $60,391 | $— | $— | $ | 30,277 | $— | $— | $— | $ | 90,668 | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) for Level 3 investments still held as of December 31, 2013 | $ | 30,277 |
2 0 1 3 S E M I - A N N U A L R E P O R T │ 47
|
Notes to the Financial Statements (unaudited)
Note 2 — Summary of Significant Accounting Policies and Other Information (Continued)
Net Unrealized | Amortized | |||||||||||||||||||||||||||||||||||
Balance as of | Realized | appreciation | discounts/ | Transfers in | Transfers out | Balance as of | ||||||||||||||||||||||||||||||
QUAKER STRATEGIC GROWTH FUND | June 30, 2013 | Purchases | Sales | gain (loss) | (depreciation) | premiums | to Level 3 | of Level 3 | 12/31/2013 | |||||||||||||||||||||||||||
Common Stocks | $— | $ | 1,480,168 | $— | $— | $ | 1,039,866 | $— | $— | $— | $2,520,034 | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) for Level 3 investments still held as of December 31, 2013 | $1,039,866 |
There have been no transfers in and out of Level 1 and Level 2 fair value measurements as of December 31, 2013, except for the Quaker Event Arbitrage Fund listed below:
Transfers out of Level 1 into Level 3 | $ | 2,040 | Due to a decrease of market activity. | ||
Transfers out of Level 2 into Level 1 | $ | 26 | Due to an increase of market activity. | ||
Transfers out of Level 2 into Level 3 | $ | 100,000 | Due to a decrease of market activity. | ||
Transfers out of Level 3 into Level 2 | $ | 1,093,765 | Due to an increase of market activity. |
The following presents information about significant unobservable inputs related to Level 3 investments at December 31, 2013
QUAKER AKROS | Fair Value at | Valuation | Unobservable | |||
ABSOLUTE RETURN FUND | December 31, 2013 | Technique | Input | |||
Private Placements | $18,530 | Qualitative assessment | Prior transaction cost | |||
QUAKER EVENT | Fair Value at | Valuation | Unobservable | |||
ARBITRAGE FUND | December 31, 2013 | Technique | Input | |||
Common Stocks | $468,440 | Qualitative assessment | Based on buyout prior to | |||
appraisal action | ||||||
Common Stocks | 801,054 | Qualitative assessment | Single broker quote | |||
Common Stocks | 30,410 | Qualitative assessment | Discount to market price to | |||
reflect transfer restrictions | ||||||
Common Stocks | 872,272 | Qualitative assessment | Last traded price | |||
Common Stocks | 409 | Qualitative assessment | Last traded price of pre-conversion | |||
bond adjusted to post-reorg. equity | ||||||
Common Stocks | — | Qualitative | Uncertainty of | |||
assessment | any additional future payout | |||||
Preferred Stocks | 490,000 | Qualitative assessment | Single broker quote | |||
Preferred Stocks | 626,700 | Qualitative assessment | Last traded price | |||
Real Estate Investment Trusts | 250,000 | Qualitative assessment | Last traded price | |||
Convertible Bonds | — | Qualitative assessment | Uncertainty of any additional | |||
future payout | ||||||
Convertible Bonds | 100,000 | Qualitative assessment | Principal after changes in | |||
indenture | ||||||
Term Loan | 511,054 | Qualitative assessment | Prior transaction cost | |||
Written Options | (281,566) | Options pricing model | Implied volatility | |||
QUAKER GLOBAL TACTICAL | Fair Value at | Valuation | Unobservable | |||
ALLOCATION FUND | December 31, 2013 | Technique | Input | |||
Common Stocks | $90,668 | Qualitative assessment | Projected final distribution | |||
QUAKER STRATEGIC | Fair Value at | Valuation | Unobservable | |||
GROWTH FUND | December 31, 2013 | Technique | Input | |||
Common Stocks | $2,520,034 | Qualitative assessment | Projected final distribution |
B. Federal Income Taxes. It is the Funds’ policy to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all of their taxable income to shareholders. Therefore, no federal income tax provision is required.
In accordance with Financial Accounting Standards Board (“FASB”) Interpretation ASC 740, (“ASC 740”), each Fund recognizes a tax benefit from an uncertain position only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority’s widely understood administrative practices and precedents. If this threshold is met, a Fund measures the tax benefit as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Management has reviewed the tax positions for each of the four open tax years as of December 31, 2013 and has determined that the implementation of ASC 740 does not have a material impact on the Funds’ financial statements. Each Fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.
Net investment income or loss and net realized gains or losses may differ for financial statement and income tax purposes primarily due to investments that have a different basis for financial statement and income tax purposes. The character of distributions
made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains were recorded by each Fund. Permanent differences in the recognition of earnings are reclassified to additional paid-in capital. Distributions in excess of tax-basis earnings are recorded as a return of capital.
C. Security Transactions and Investment Income. Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification cost method. Interest income on debt securities is recorded daily on the accrual basis. Discounts and premiums on debt securities are amortized over their respective lives. Dividend income is recorded on the ex-dividend date, or as soon as information is available to the Fund.
Certain Funds may make short sales of investments, which are transactions in which a Fund sells a security it does not own in anticipation of a decline in the fair value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing it at the market price at the time of replacement. The broker retains the proceeds of short sales to the extent necessary to meet margin requirements until the short position is closed out.
If a security pays a dividend while the Fund holds it short, the Fund will need to pay the dividend to the original owner of the security. Since the Fund borrowed the shares and sold them to a third party, the third party will receive the dividend from the security and the Fund will pay the original owner the dividend directly. The Fund is not entitled to the dividend because it does not own the shares. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of a short sale.
D. Options Contracts Written. Certain Funds may write options to manage exposure to certain changes in the market. When a Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability, which is marked-to-market daily to reflect the current market value of the option written. If the option expires, the Fund realizes a gain from investments equal to the amount of the premium received. When a written call option is exercised, the difference between the premium and the amount for effecting a closing purchase transaction, including brokerage commission, is also treated as a realized gain or loss. When a written put option is exercised, the amount of the premium received reduces the cost of the security purchased by the Fund.
A risk in writing a covered call option is that the Fund may forego the opportunity of profit if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the underlying security decreases and the option is exercised.
In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.
48 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Note 2 — Summary of Significant Accounting Policies and Other Information (Continued)
E. Purchased Options. Certain Funds may purchase call options in anticipation of an increase in the market value of securities of the type in which they may invest. The purchase of a call option will entitle a Fund, in return for the premium paid, to purchase specified securities at a specified price during the option period. A Fund will ordinarily realize a gain if, during the option period, the value of such securities exceeded the sum of the exercise price, the premium paid and transaction costs; otherwise, the Fund will realize either no gain or a loss on the purchase of the call option. A Fund will normally purchase put options in anticipation of a decline in the market value of securities in its portfolio (“protective puts”) or in securities in which it may invest. The purchase of a put option will entitle the Fund, in exchange for the premium paid, to sell specified securities at a specified price during the option period. The purchase of protective puts is designed to offset or hedge against a decline in the market value of the Fund’s securities. Put options may also be purchased by a Fund for the purpose of affirmatively benefiting from a decline in the price of securities which it does not own. The Fund will ordinarily realize a gain if, during the option period, the value of the underlying securities decreased below the exercise price sufficiently to more than cover the premium and transaction costs; otherwise the Fund will realize either no gain or a loss on the purchase of the put option. Gains and losses on the purchase of protective put options would tend to be offset by countervailing changes in the value of the underlying portfolio securities.
F. Futures Contracts. Certain Funds may enter into financial futures contracts, to the extent permitted by their investment policies and objectives, for bona fide hedging and other permissible risk management purposes including protecting against anticipated changes in the value of securities a Fund intends to purchase. Upon entering into a financial futures contract, a Fund is required to deposit cash or securities as initial margin.
Additional securities are also segregated as collateral up to the current market value of the financial futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund, depending on the fluctuation in the value of the underlying financial instruments. The Fund recognizes an unrealized gain or loss equal to the variation margin. When the financial futures contracts are closed, a realized gain or loss is recognized equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts. The risks associated with entering into financial futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. In addition, investing in financial futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.
G. Foreign Currency Transactions. Securities and other assets and liabilities denominated in foreign currencies are converted each business day into U.S. dollars based on the prevailing rates of exchange. Purchases and sales of portfolio securities and income and expenses are converted into U.S. dollars on the respective dates of such transactions.
Gains and losses resulting from changes in exchange rates applicable to foreign securities are not reported separately from gains and losses arising from movements in securities prices.
Net realized foreign exchange gains and losses include gains and losses from sales and maturities of foreign currency exchange contracts, gains and losses realized between the trade and settlement dates of foreign securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes on the Funds’ books and the U.S. dollar equivalent of the amounts actually received. Net unrealized foreign exchange gains and losses include gains and losses from changes in the fair value
of assets and liabilities denominated in foreign currencies other than portfolio securities, resulting from changes in exchange rates.
H. Forward Foreign Currency Contracts. Certain Funds may enter into forward foreign currency contracts to hedge against foreign currency exchange rate risk on their non-U.S. dollar denominated securities or to facilitate settlement of foreign currency denominated portfolio transactions. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The contract is marked-to-market daily and the change in value is recorded by a Fund as an unrealized gain or loss. When a forward foreign currency contract is extinguished, through either delivery or offset by entering into another forward foreign currency contract, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was extinguished.
Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.
I. Portfolio Investment Risks. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries. Certain countries may also impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
J. Multiple Class Allocations. Each class of shares has equal rights as to earnings and assets except that each class bears different distribution and shareholder servicing expenses. Each class of shares has exclusive voting rights with respect to matters that affect just that class. Income, expenses (other than expenses attributable to a specific class) and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
K. Expense Allocations. Expenses that are not series (Fund) specific are allocated to each series based upon its relative proportion of net assets to the Trust’s total net assets.
L. Distributions to Shareholders. Each Fund generally declares dividends at least annually, payable in December, on a date selected by the Board. In addition, distributions may be made annually in December out of net realized gains through October 31 of that calendar year. Distributions to shareholders are recorded on the ex-dividend date. Each Fund may make a supplemental distribution subsequent to the end of its fiscal year ending June 30.
M. 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 the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and those differences could be significant.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 49
|
Notes to the Financial Statements (unaudited)
Note 2 — Summary of Significant Accounting Policies and Other Information (Continued)
N. Security Loans. The Funds receive compensation in the form of fees, or retain a portion of interest on the investment of any cash received as collateral. The Funds also continue to receive interest or dividends on the securities loaned. The loans are secured by collateral at least equal, at all times, to 102% of the market value of the loaned securities. Gain or loss in the fair value of the securities loaned that may occur during the term of the loan will be for the account of the Funds. The Funds have the right under the lending agreement to recover the securities from the borrower on demand.
O. Derivative Instruments. The Funds have adopted amendments to authoritative guidance on disclosures about derivative instruments and hedging activities which require that the Funds disclose: a) how and why an entity uses derivative instruments; and b) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows.
The Funds traded financial instruments where they are considered to be a seller of credit derivatives in accordance with authoritative guidance under GAAP on derivatives and hedging.
The fair value of derivative instruments and whose primary underlying risk exposure is equity price risk at December 31, 2013 was as follows:
Akros Absolute Return
Fair Value | ||||||||
Derivative | Asset Derivatives(1) | Liability Derivatives(2) | ||||||
Warrants | 18,415 | — | ||||||
Event Arbitrage | ||||||||
Fair Value | ||||||||
Derivative | Asset Derivatives(1) | Liability Derivatives(2) | ||||||
Written Options | — | 2,684,890 | ||||||
Purchased Options | 1,930,352 | — | ||||||
Warrants | 541,298 | — |
(1) | Statement of Assets and Liabilities location: Investments, at value. |
(2) | Statement of Assets and Liabilities location: Call Options Written, at value. |
The effect of derivative instruments on the Statements of Operations and whose underlying risk exposure is equity price risk for the six-month period ended December 31, 2013 was as follows:
Akros Absolute Return
Change in Unrealized | ||||||||
Realized Gain(Loss) | Appreciation | |||||||
on Derivatives | (Depreciation) on | |||||||
Recognized in | Derivatives Recognized | |||||||
Derivative | Income(1) | in Income(2) | ||||||
Written Options | 11,552 | (1,305 | ) | |||||
Purchased Options | 471 | 3,651 | ||||||
Futures | (5,931 | ) | — | |||||
Warrants | 6,108 | 4,337 | ||||||
Event Arbitrage | ||||||||
Change in Unrealized | ||||||||
Realized Gain(Loss) | Appreciation | |||||||
on Derivatives | (Depreciation) on | |||||||
Recognized in | Derivatives Recognized | |||||||
Derivative | Income(1) | in Income(2) | ||||||
Written Options | 264,694 | (535,569 | ) | |||||
Purchased Options | 231,530 | 135,926 | ||||||
Forward Currency Contracts | (14,974 | ) | 420 | |||||
Warrants | — | 48,452 |
(1) | Statement of Operations location: Net realized gain (loss) from written options, net realized gain (loss) from investments and net realized gain (loss) from futures and forward currency contracts. |
(2) | Statement of Operations location: Net unrealized appreciation (depreciation) on written options, net unrealized appreciation (depreciation) on investments and net unrealized appreciation (depreciation) on futures and forward currency contracts. |
The average notional amounts of written options, purchased options, futures and forward currency contracts outstanding during the six-month period ended December 31, 2013 were approximately as follows:
Forward | ||||||||||||
Written | Purchased | Currency | ||||||||||
Options | Options | Contracts | ||||||||||
Akros Absolute Return | $ | 1,810 | $ | 80 | $ | — | ||||||
Event Arbitrage | 2,555,740 | 1,933,416 | 258,653 |
Note 3 — Investment Advisory Fee and Other Related Party Transactions
QFI serves as investment adviser to each Fund. Pursuant to separate investment sub-advisory agreements, QFI has selected the following investment advisory firms to serve as sub-advisers:
Fund | Sub-adviser | |
Akros Absolute Return | Akros Capital, LLC | |
Event Arbitrage | N/A | |
Global Tactical Allocation Inc. | DG Capital Management, Inc. | |
Mid-Cap Value Fund | Kennedy Capital Management, Inc. | |
Small-Cap Growth Tactical Allocation | Century Management, Inc. | |
Small-Cap Value | Aronson Johnson Ortiz, L.P. | |
Strategic Growth | DG Capital Management, Inc. |
QFI or the sub-advisers provide each Fund with a continuous program of supervision of the Fund’s assets, including the composition of its portfolio, and furnish advice and recommendations with respect to investments, investment policies and the purchase and sale of securities.
Each Fund paid QFI aggregate fees shown in the table below for the six-month period ending December 31, 2013. Amounts are expressed as an annualized percentage of average net assets.
Subadvisory fee paid by QFI to the sub-adviser | Advisory & subadvisory fees waived & reimbursed | |||||||||||
Aggregate | ||||||||||||
advisory fee | ||||||||||||
Fund | paid to QFI | |||||||||||
Akros Absolute Return | 1.25 | % | 0.75% | 2.85% | ||||||||
Event Arbitrage | 1.30 | % | N/A | 0.14% | ||||||||
Global Tactical Allocation | 1.25 | % | 0.75% | N/A | ||||||||
Mid-Cap Value | 1.05 | % | 0.75% | N/A | ||||||||
Small-Cap Growth Tactical Allocation | 1.00 | % | 0.50% | N/A | ||||||||
Small-Cap Value | 1.00 | % | 0.65% | N/A | ||||||||
Strategic Growth | 1.30 | % | 0.75% | N/A |
For the six-month period ending December 31, 2013, QFI and the sub-advisers earned and reimbursed fees as follows:
Advisory & | ||||||||||||
Aggregate | Subadvisory | subadvisory | ||||||||||
advisory fee | fee paid by QFI | fees waived & | ||||||||||
paid to QFI | to the sub-adviser | reimbursed | ||||||||||
Akros Absolute Return | $ | 24,213 | $ | 14,528 | $ | 55,211 | ||||||
Event Arbitrage | 503,398 | N/A | 55,027 | |||||||||
Global Tactical Allocation | 46,008 | 27,605 | N/A | |||||||||
Mid-Cap Value | 49,358 | 35,256 | N/A | |||||||||
Small-Cap Growth Tactical Allocation | 15,422 | 7,711 | N/A | |||||||||
Small-Cap Value | 178,927 | 116,303 | N/A | |||||||||
Strategic Growth | 1,091,661 | 629,804 | N/A |
Akros Capital, LLC the sub-adviser to Akros Absolute Return waived a portion of its sub-advisory fee to the extent that the total operating expenses of Akros Absolute Return (exclusive of 12b-1 fees) exceeded the annual rate of 1.99% for Class A shares, 2.74% for Class C shares, and 1.74% for Institutional Class shares of the average net assets of each class, respectively. If, at any time, the annualized expenses of Akros Absolute Return
50 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Note 3 — Investment Advisory Fee and Other Related Party Transactions (Continued)
were less than the annualized expense ratio, the Trust, on behalf of Akros Absolute Return, would reimburse QFI for any fees previously waived and/or expenses previously assumed; provided, however, that repayment would be payable only to the extent that it (a) can be made during the three (3) years following the time at which the adviser waived fees or assumed expenses for Akros Absolute Return, and (b) can be repaid without causing the expenses of Akros Absolute Return to exceed the annualized expense ratio. This fee waiver agreement was in effect from July 1, 2013 until October 28, 2013. The agreement automatically terminated on October 29, 2013, due to the announcement of the plan of liquidation of the Akros Absolute Return Fund.
QFI voluntarily agreed to waive its management fee to the extent that the total operating expenses of Event Arbitrage (exclusive of interest, taxes, brokerage commissions and other costs incurred in connection with the purchase or sale of portfolio securities, and extraordinary items) exceed the annual rate of 1.99% for Class A shares, 2.74% for Class C shares, and 1.74% for Institutional Class shares of the average net assets of each class, respectively. QFI currently has no intention to terminate this arrangement; however, it may do so at any time in its sole discretion. If, at any time, the annualized expenses of Event Arbitrage were less than the annualized expense ratio, the Trust, on behalf of Event Arbitrage, would reimburse QFI for any fees previously waived and/or expenses previously assumed; provided, however, that repayment would be payable only to the extent that it (a) can be made during the three (3) years following the time at which the adviser waived fees or assumed expenses for Event Arbitrage, and (b) can be repaid without causing the expenses of Event Arbitrage to exceed the annualized expense ratio. This fee waiver agreement shall continue in effect from October 28, 2013 until October 28, 2014. This agreement shall automatically terminate upon termination of the advisory agreement between QFI and the Trust or, with respect to Event Arbitrage, in the event of its merger or liquidation.
Additionally, QFI voluntarily agreed to waive its management fee to the extent that the total operating expenses of Small-Cap Value (exclusive of interest, taxes, brokerage commissions and other costs incurred in connection with the purchase or sale of portfolio securities, and extraordinary items) exceed the annual rate of 2.60% for Class A shares, 3.35% for Class C shares, and 2.35% for Institutional Class shares of the average net assets of each class, respectively. QFI currently has no intention to terminate this arrangement; however, it may do so at any time in its sole discretion.
Additionally, QFI voluntarily agreed to waive its management fee to the extent that the total operating expenses of Strategic Growth (exclusive of interest, taxes, brokerage commissions and other costs incurred in connection with the purchase or sale of portfolio securities, and extraordinary items) exceed the annual rate of 2.24% for Class A shares, 2.99% for Class C shares, and 1.99% for Institutional Class shares of the average net assets of each class, respectively. QFI currently has no intention to terminate this arrangement; however, it may do so at any time in its sole discretion. If, at any time, the annualized expenses of Strategic Growth were less than the annualized expense ratio, the Trust, on behalf of Strategic Growth, would reimburse the sub-adviser for any fees previously waived and/or expenses previously assumed, provided, however, that the repayment shall be payable only to the extent that it: (a) can be made during the three years following the time at which the sub-adviser waived fees or assumed expenses for Strategic Growth, and (b) can be repaid without causing the expenses of Strategic Growth to exceed the annualized expense ratio. This fee waiver agreement shall continue in effect from October 28, 2013 until October 28, 2014. This agreement shall automatically terminate upon termination of the advisory agreement, sub-advisory agreement or, with respect to Strategic Growth, in the event of its merger or liquidation.
At December 31, 2013, the cumulative unreimbursed amount paid and/or waived by the Advisor on behalf of Akros Absolute Return, Event Arbitrage and Strategic Growth that may be recouped was $365,727, $545,802 and $751,125, respectively. The Advisor may recapture portions of the above amounts no later than the dates stated below.
June 30, 2014 | June 30, 2015 | June 30, 2016 | June 30, 2017 | |||||||||||||
Akros Absolute Return | $ | 120,543 | $ | 55,214 | $ | 134,759 | $ | 55,211 | ||||||||
Event Arbitrage | 85,149 | 187,347 | 218,279 | 55,027 | ||||||||||||
Strategic Growth | — | — | 751,125 | — |
Foreside Fund Services, LLC (“Distributor”) serves as principal underwriter for the Trust. The Trust has adopted distribution and shareholder servicing plans pursuant to Rule 12b-1 of the 1940 Act for Class A and Class C shares described below. There is no Rule 12b-1 distribution plan for Institutional Class shares of the Funds. The Class A Plan provides that each Fund may pay a servicing or Rule 12b-1 fee at an annual rate of 0.25% of the Class A average net assets on a monthly basis to persons or institutions for performing certain servicing functions for the Class A shareholders. The Class A Plan also allows the Fund to pay or reimburse expenditures in connection with sales and promotional services related to distribution of the Fund’s shares, including personal services provided to prospective and existing shareholders. The Class C Plan provides that each Fund may compensate QFI and others for services provided and expenses incurred in the distribution of shares at an annual rate of 1.00% of the average net assets of each class on a monthly basis.
For the six-month period ending December 31, 2013, the Distributor received underwriter concessions from the sale of Funds shares as follows:
Fund | Amount | |||
Akros Absolute Return | $ | 6 | ||
Event Arbitrage | 3,055 | |||
Global Tactical Allocation | 70 | |||
Mid-Cap Value | 223 | |||
Small-Cap Growth Tactical Allocation | 179 | |||
Small-Cap Value | 35 | |||
Strategic Growth | 2,857 |
Except for the Trust’s Chief Compliance Officer (“CCO”), employees and Officers of QFI do not receive any compensation from the Trust. The CCO of the Trust also serves as general counsel to QFI. For the six-month period ending December 31, 2013, the Funds compensated the CCO as follows:
Fund | Amount | |||
Akros Absolute Return | $ | 1,267 | ||
Event Arbitrage | 20,734 | |||
Global Tactical Allocation | 2,235 | |||
Mid-Cap Value | 2,602 | |||
Small-Cap Growth Tactical Allocation | 1,069 | |||
Small-Cap Value | 10,494 | |||
Strategic Growth | 52,830 |
Note 4 — Purchases and Sales of Investments
For the six-month period ending December 31, 2013 aggregate purchases and sales of investment securities (excluding short-term investments) for each Fund were as follows:
Purchases | Sales | |||||||
Akros Absolute Return | $ | 1,399,865 | $ | 2,882,007 | ||||
Event Arbitrage | 104,070,203 | 74,496,222 | ||||||
Global Tactical Allocation | 3,869,414 | 4,139,968 | ||||||
Mid-Cap Value | 3,354,332 | 3,598,418 | ||||||
Small-Cap Growth Tactical Allocation | 6,912,881 | 8,121,178 | ||||||
Small-Cap Value | 33,653,272 | 34,401,461 | ||||||
Strategic Growth | 121,101,043 | 138,083,724 |
2 0 1 3 S E M I - A N N U A L R E P O R T │ 51
|
Notes to the Financial Statements (unaudited)
Note 5 — Options Written
A summary of option contracts written by the Trust during the six-month period ended December 31, 2013 are as follows:
Akros Absolute Return | Event Arbitrage | |||||||||||||||||
Number of | Option | Number of | Option | |||||||||||||||
Contracts | Premiums | Contracts | Premiums | |||||||||||||||
Options outstanding at beginning of period | 142 | $ | 6,735 | Options outstanding at beginning of period | 18,941 | $ | 1,667,720 | |||||||||||
Options written | 201 | 9,028 | Options written | 56,313 | 7,302,963 | |||||||||||||
Options closed | (22 | ) | (822 | ) | Options closed | (19,789 | ) | (2,914,997 | ) | |||||||||
Options exercised | (45 | ) | (3,303 | ) | Options exercised | (19,505 | ) | (3,078,757 | ) | |||||||||
Options expired | (276 | ) | (11,638 | ) | Options expired | (23,500 | ) | (942,302 | ) | |||||||||
Options outstanding at end of period | — | $ | — | Options outstanding at end of period | 12,460 | $ | 2,034,627 |
Note 6 — Tax Matters
For U.S. federal income tax purposes, the cost of securities owned, gross appreciation, gross depreciation, and net unrealized appreciation (depreciation) of investments at June 30, 2013 for each Fund were as follows:
Gross | Gross | Net Appreciation | ||||||||||||||
Fund | Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
Akros Absolute Return | $ | 3,332,135 | $ | 70,147 | $ | (680,408 | ) | $ | (610,261 | ) | ||||||
Event Arbitrage | 62,833,934 | 3,024,122 | (3,545,540 | ) | (521,418 | ) | ||||||||||
Global Tactical Allocation | 7,522,847 | 666,693 | (67,175 | ) | 599,518 | |||||||||||
Mid-Cap Value | 9,531,618 | 1,797,124 | (117,911 | ) | 1,679,213 | |||||||||||
Small-Cap Growth Tactical Allocation | 4,991,050 | 197,033 | (825,916 | ) | (628,883 | ) | ||||||||||
Small-Cap Value | 36,000,490 | 4,056,510 | (762,847 | ) | 3,293,663 | |||||||||||
Strategic Growth | 170,082,162 | 19,067,108 | (1,228,839 | ) | 17,838,269 |
As of June 30, 2013, the components of distributable earnings on a tax basis were as follows:
Unrealized | Total | |||||||||||||||||||||||
Appreciation | Undistributed | Undistributed | Capital Loss | Late Year | Distributable | |||||||||||||||||||
Fund | (Depreciation) | Ordinary Income | Capital Gain | Carryforward | Loss | Earnings/(Loss) | ||||||||||||||||||
Akros Absolute Return | $ | (996,352 | ) | $ | — | $ | — | $ | (92,213 | ) | $ | (272,910 | ) | $ | (1,361,475 | ) | ||||||||
Event Arbitrage | (645,803 | ) | 1,854,920 | — | — | (755,993 | ) | 453,124 | ||||||||||||||||
Global Tactical Allocation | 621,543 | — | — | (12,584,462 | ) | (46,337 | ) | (12,009,256 | ) | |||||||||||||||
Mid-Cap Value | 1,679,213 | — | — | (8,061,333 | ) | (34,658 | ) | (6,416,778 | ) | |||||||||||||||
Small-Cap Growth Tactical Allocation | (628,883 | ) | — | — | (423,584 | ) | (11,931 | ) | (1,064,398 | ) | ||||||||||||||
Small-Cap Value | 3,293,663 | 117,065 | — | (5,165,605 | ) | — | (1,754,877 | ) | ||||||||||||||||
Strategic Growth | 17,838,269 | — | — | (422,501,515 | ) | (574,287 | ) | (405,237,533 | ) |
The difference between book basis and tax basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales and straddles from options, the differing book/tax treatment of unrealized appreciation/depreciation on forward foreign currency contracts, and outstanding PFIC adjustments.
The undistributed ordinary income, capital gains and carryforward losses shown above differ from the corresponding accumulated net investment income and accumulated net realized gain (loss) figures reported in the statements of assets and liabilities due to differing book/tax treatment of short-term capital gains, and certain temporary book/tax differences such as the deferral of realized losses on wash sales, straddles from options and net losses realized after October 31 and from ordinary losses incurred after December 31.
Under current tax law, foreign currency and net capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. The Funds elected to defer net capital and currency losses as indicated in the chart below.
At June 30, 2013, the capital loss carryovers for the Funds were as follows:
Post
December 31, 2010 Capital Losses No Expiration | |||||||||||||||||||||||||||||
Capital Loss Carryovers Expiring | Post-October Capital Loss | ||||||||||||||||||||||||||||
Fund | Short-Term | Long-Term | 2018 | 2017 | 2016 | Deferred | Utilized | ||||||||||||||||||||||
Akros Absolute Return | $ | — | $ | 92,213 | $ | — | $ | — | $— | $272,910 | $ | — | |||||||||||||||||
Event Arbitrage | — | — | — | — | — | 755,993 | (413,363 | ) | |||||||||||||||||||||
Global Tactical Allocation | — | — | 2,718,683 | 9,865,779 | — | — | — | ||||||||||||||||||||||
Mid-Cap Value | — | — | 1,170,572 | 6,890,761 | — | — | — | ||||||||||||||||||||||
Small-Cap Growth Tactical Allocation | 423,584 | — | — | — | — | — | — | ||||||||||||||||||||||
Small-Cap Value | — | — | 5,165,605 | — | — | — | — | ||||||||||||||||||||||
Strategic Growth | — | — | 164,714,298 | 257,787,217 | — | — | — |
52 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Note 7 — Distributions to Shareholders
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. The information set forth below is for each Fund’s fiscal year as required by federal securities laws.
The tax character of dividends and distributions paid during the fiscal years of 2013 and 2012 were as follows:
Ordinary Income | Long-Term Capital Gain | Return of Capital | ||||||||||||||||||||||
Fund | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Akros Absolute Return | $ | 50,041 | $ | — | $— | $— | $— | $— | ||||||||||||||||
Event Arbitrage | 700,520 | 1,103,905 | — | — | — | — | ||||||||||||||||||
Global Tactical Allocation | — | — | — | — | — | — | ||||||||||||||||||
Mid-Cap Value | — | — | — | — | — | — | ||||||||||||||||||
Small-Cap Growth Tactical Allocation | — | 548,581 | — | — | — | — | ||||||||||||||||||
Small-Cap Value | 86,508 | — | — | — | — | — | ||||||||||||||||||
Strategic Growth | — | — | — | — | — | — |
For the six-month period ended December 31, 2013 (unaudited)*:
Fund | Ordinary Income | Long-Term Capital Gain | ||||||
Akros Absolute Return Fund | $ | — | $ | — | ||||
Event Arbitrage | 551,055 | — | ||||||
Global Tactical Allocation | — | — | ||||||
Mid-Cap Value | — | — | ||||||
Small-Cap Growth Tactical Allocation | — | — | ||||||
Small-Cap Value | 117,065 | — | ||||||
Strategic Growth | — | — |
* | Tax information for the period ended December 31, 2013, is an estimate and the tax character of dividends and distributions may be redesignated at the fiscal year end. |
Note 8 — Fund Share Transactions
At December 31, 2013, there were an unlimited number of shares of beneficial interest with a $0.01 par value authorized. The following table summarizes the activity in shares of each Fund:
Akros Absolute Return | ||||||||||||||||||||||||||||||||
For the Six-Month Period Ended December 31, 2013 | For the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||||||||||||
Sold | Redeemed | Reinvested | End Shares | Sold | Redeemed | Reinvested | End Shares | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares | 5,352 | (96,507 | ) | — | 225,036 | 125,350 | (379,152 | ) | 3,728 | 316,191 | ||||||||||||||||||||||
Value | $ | 41,865 | $ | (754,088 | ) | $ | — | $ | 1,015,336 | $ | (3,052,660 | ) | $ | 29,822 | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares | — | (11,075 | ) | — | 9,446 | 8,538 | (34,965 | ) | 378 | 20,521 | ||||||||||||||||||||||
Value | $ | — | $ | (84,261 | ) | $ | — | $ | 67,264 | $ | (275,232 | ) | $ | 2,967 | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Shares | 733 | (20,023 | ) | — | 186,401 | 38,131 | (34,584 | ) | 1,802 | 205,691 | ||||||||||||||||||||||
Value | $ | 5,797 | $ | (158,653 | ) | $ | — | $ | 306,528 | $ | (277,532 | ) | $ | 14,505 | ||||||||||||||||||
Event Arbitrage | ||||||||||||||||||||||||||||||||
For the Six-Month Period Ended December 31, 2013 | For the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||||||||||||
Sold | Redeemed | Reinvested | End Shares | Sold | Redeemed | Reinvested | End Shares | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares | 971,684 | (579,743 | ) | 16,919 | 3,159,841 | 1,020,896 | (1,212,671 | ) | 30,835 | 2,750,981 | ||||||||||||||||||||||
Value | $ | 12,867,675 | $ | (7,640,824 | ) | $ | 228,577 | $ | 12,620,599 | $ | (14,814,872 | ) | $ | 371,562 | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares | 71,887 | (64,668 | ) | 2,324 | 483,184 | 113,780 | (256,519 | ) | 5,746 | 473,641 | ||||||||||||||||||||||
Value | $ | 936,965 | $ | (837,085 | ) | $ | 30,719 | $ | 1,388,619 | $ | (3,121,760 | ) | $ | 68,205 | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Shares | 1,476,075 | (362,400 | ) | 16,277 | 3,068,954 | 1,161,683 | (349,132 | ) | 16,200 | 1,939,002 | ||||||||||||||||||||||
Value | $ | 19,653,250 | $ | (4,821,530 | ) | $ | 220,875 | $ | 14,462,851 | $ | (4,310,034 | ) | $ | 195,699 |
2 0 1 3 S E M I - A N N U A L R E P O RT │ 53
|
Notes to the Financial Statements (unaudited)
Note 8 — Fund Share Transactions (Continued)
Global Tactical Allocation | ||||||||||||||||||||||||||||||||
For the Six-Month Period Ended December 31, 2013 | For the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||||||||||||
Sold | Redeemed | Reinvested | End Shares | Sold | Redeemed | Reinvested | End Shares | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares | 38,118 | (57,442 | ) | — | 445,268 | 41,787 | (379,191 | ) | — | 464,592 | ||||||||||||||||||||||
Value | $ | 344,363 | $ | (527,128 | ) | $ | — | $ | 309,689 | $ | (2,905,906 | ) | $ | — | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares | 8,482 | (34,561 | ) | — | 240,107 | 2,199 | (193,971 | ) | — | 266,186 | ||||||||||||||||||||||
Value | $ | 77,952 | $ | (307,547 | ) | $ | — | $ | 15,378 | $ | (1,436,277 | ) | $ | — | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Shares | 34,819 | (234 | ) | — | 100,453 | 1,318 | (46,164 | ) | — | 65,868 | ||||||||||||||||||||||
Value | $ | 360,410 | $ | (2,425 | ) | $ | — | $ | 12,075 | $ | (409,020 | ) | $ | — | ||||||||||||||||||
Mid-Cap Value | ||||||||||||||||||||||||||||||||
For the Six-Month Period Ended December 31, 2013 | For the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||||||||||||
Sold | Redeemed | Reinvested | End Shares | Sold | Redeemed | Reinvested | End Shares | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares | 15,636 | (37,269 | ) | — | 295,798 | 74,459 | (145,642 | ) | — | 317,431 | ||||||||||||||||||||||
Value | $ | 316,791 | $ | (760,272 | ) | $ | — | $ | 1,379,496 | $ | (2,506,200 | ) | $ | — | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares | 160 | (9,209 | ) | — | 98,320 | 3,057 | (33,899 | ) | — | 107,369 | ||||||||||||||||||||||
Value | $ | 2,973 | $ | (165,507 | ) | $ | — | $ | 46,032 | $ | (520,042 | ) | $ | — | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Shares | 3,179 | (3,121 | ) | — | 53,501 | 48,215 | (16,203 | ) | — | 53,443 | ||||||||||||||||||||||
Value | $ | 66,933 | $ | (67,456 | ) | $ | — | $ | 907,883 | $ | (308,708 | ) | $ | — | ||||||||||||||||||
Small-Cap Growth Tactical Allocation | ||||||||||||||||||||||||||||||||
For the Six-Month Period Ended December 31, 2013 | For the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||||||||||||
Sold | Redeemed | Reinvested | End Shares | Sold | Redeemed | Reinvested | End Shares | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares | 3,848 | (63,557 | ) | — | 106,475 | 4,676 | (120,797 | ) | — | 166,184 | ||||||||||||||||||||||
Value | $ | 39,271 | $ | (645,639 | ) | $ | — | $ | 42,664 | $ | (1,103,618 | ) | $ | — | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares | 98 | (17,447 | ) | — | 94,014 | 229 | (109,683 | ) | — | 111,363 | ||||||||||||||||||||||
Value | $ | 1,000 | $ | (170,997 | ) | $ | — | $ | 2,000 | $ | (964,669 | ) | $ | — | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Shares | — | (41,372 | ) | — | 43,262 | 9,010 | (135,670 | ) | — | 84,634 | ||||||||||||||||||||||
Value | $ | — | $ | (427,898 | ) | $ | — | $ | 83,566 | $ | (1,247,791 | ) | $ | — | ||||||||||||||||||
Small-Cap Value | ||||||||||||||||||||||||||||||||
For the Six-Month Period Ended December 31, 2013 | For the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||||||||||||
Sold | Redeemed | Reinvested | End Shares | Sold | Redeemed | Reinvested | End Shares | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares | 3,802 | (23,945 | ) | 872 | 377,096 | 17,706 | (148,506 | ) | 489 | 396,367 | ||||||||||||||||||||||
Value | $ | 82,360 | $ | (517,664 | ) | $ | 20,125 | $ | 302,337 | $ | (2,558,282 | ) | $ | 8,059 | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares | 843 | (11,074 | ) | — | 88,337 | 2,096 | (41,640 | ) | — | 98,568 | ||||||||||||||||||||||
Value | $ | 14,609 | $ | (202,514 | ) | $ | — | $ | 31,188 | $ | (617,552 | ) | $ | — | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Shares | 9,035 | (23,845 | ) | 2,892 | 1,141,218 | 64,487 | (128,787 | ) | 3,255 | 1,153,136 | ||||||||||||||||||||||
Value | $ | 200,509 | $ | (529,176 | ) | $ | 69,432 | $ | 1,183,195 | $ | (2,332,157 | ) | $ | 55,782 | ||||||||||||||||||
Strategic Growth | ||||||||||||||||||||||||||||||||
For the Six-Month Period Ended December 31, 2013 | For the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||||||||||||
Sold | Redeemed | Reinvested | End Shares | Sold | Redeemed | Reinvested | End Shares | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares | 110,480 | (727,548 | ) | — | 3,990,157 | 530,779 | (2,851,509 | ) | — | 4,607,225 | ||||||||||||||||||||||
Value | $ | 2,336,895 | $ | (15,387,565 | ) | $ | — | $ | 9,819,661 | $ | (50,010,445 | ) | $ | — | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares | 8,299 | (151,529 | ) | — | 1,192,819 | 23,191 | (559,927 | ) | — | 1,336,049 | ||||||||||||||||||||||
Value | $ | 154,557 | $ | (2,867,451 | ) | $ | — | $ | 364,184 | $ | (8,702,474 | ) | $ | — | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Shares | 384,009 | (312,020 | ) | — | 2,366,123 | 931,177 | (1,055,174 | ) | — | 2,294,134 | ||||||||||||||||||||||
Value | $ | 8,441,276 | $ | (6,871,941 | ) | $ | — | $ | 16,754,902 | $ | (18,625,480 | ) | $ | — |
54 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
Note 9 — Offsetting Assets and Liabilities
The Funds are subject to various Master Netting Arrangements (“MNA”), which govern the terms of certain transactions with select counterparties. The MNA allow the Funds to close out and net their total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single agreement with a counterparty. The MNA also specify collateral posting arrangements at pre-arranged exposure levels.
Under the MNA, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant MNA with a counterparty in a given account exceeds a specified threshold depending on the counterparty and the type of MNA.
The following is a summary of the Assets and Liabilities for each Fund subject to offsets as of December 31, 2013:
Liabilities: | ||||||||||||||||||||||||||||||
Gross | Net | |||||||||||||||||||||||||||||
Amounts | Amounts | Gross Amounts not | ||||||||||||||||||||||||||||
Offset | Presented | offset in the statement | ||||||||||||||||||||||||||||
in the | in the | of financial position | ||||||||||||||||||||||||||||
Gross Amounts | Statement | Statement | Collateral | |||||||||||||||||||||||||||
of Recognized | of Financial | of Financial | Financial | Pledged | Net | |||||||||||||||||||||||||
Description | Liabilities | Position | Position | Instruments | (Received) | Amount | ||||||||||||||||||||||||
Akros Absolute Return | ||||||||||||||||||||||||||||||
Securities Lending | $ | 35,800 | $ | — | $ | 35,800 | $ | 35,800 | $ | — | $ | — | ||||||||||||||||||
Event Arbitrage | ||||||||||||||||||||||||||||||
Written Options | 2,684,890 | — | 2,684,890 | — | 2,684,890 | — | ||||||||||||||||||||||||
Securities Lending | 4,119,273 | — | 4,119,273 | 4,119,273 | — | |||||||||||||||||||||||||
6,804,163 | — | 6,804,163 | 4,119,273 | 2,684,890 | — | |||||||||||||||||||||||||
Global Tactical Allocation | ||||||||||||||||||||||||||||||
Securities Lending | 2,247,332 | — | 2,247,332 | 2,247,332 | — | — | ||||||||||||||||||||||||
Mid-Cap Value | ||||||||||||||||||||||||||||||
Securities Lending | 3,956,427 | — | 3,957,427 | 3,956,427 | — | — | ||||||||||||||||||||||||
Small-Cap Growth Tactical Allocation | ||||||||||||||||||||||||||||||
Securities Lending | 660,476 | — | 660,476 | 660,476 | — | — | ||||||||||||||||||||||||
Small-Cap Value | ||||||||||||||||||||||||||||||
Securities Lending | 8,020,202 | — | 8,020,202 | 8,020,202 | — | — | ||||||||||||||||||||||||
Strategic Growth | ||||||||||||||||||||||||||||||
Securities Lending | 12,050,096 | — | 12,050,096 | 12,050,096 | — | — |
Note 10 — Indemnifications
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications.
The Trust’s maximum exposure under these arrangements is dependant on future claims that may be made against the Trust, and, therefore, cannot be estimated; however, based on experience, risk of loss from such claims is considered remote.
Note 11 — Securities Lending
The Funds hold the Mount Vernon Securities Lending Trust Prime Portfolio as cash collateral, which is a registered money market fund whose main objective is to maximize current income to the extent consistent with the preservation of capital and liquidity. It primarily invests in Certificates of Deposits, Asset Backed and Financial Company Commercial Paper, and Repurchase Agreements.
At December 31, 2013, the aggregate market value of loaned securities and the value of the cash collateral the Funds received is as follows:
Loaned Securities Market Value | Value of Cash Collateral | % of Net Assets | ||||||||||
Akros Absolute | $ | 28,850 | $ | 35,800 | 1.1 | % | ||||||
Event Arbitrage | 3,910,490 | 4,119,273 | 4.5 | % | ||||||||
Global Tactical Allocation | 2,200,361 | 2,247,332 | 28.6 | % | ||||||||
Mid-Cap Value | 3,824,615 | 3,956,427 | 41.7 | % | ||||||||
Small-Cap Growth Tactical Allocation | 623,769 | 660,476 | 26.5 | % | ||||||||
Small-Cap Value | 7,717,898 | 8,020,202 | 21.2 | % | ||||||||
Strategic Growth | 11,712,712 | 12,050,096 | 7.0 | % |
Note 12 — Fund Liquidations
On November 21, 2013, the Board, including all of the Trustees who are not “interested persons” (as that term is defined in the 1940 Act) approved the liquidation and dissolution of the Quaker Akros Absolute Return Fund and the Quaker Small-Cap Growth Tactical Allocation Fund. The liquidations and dissolutions were approved by the Board and a majority shareholders of each of the Fund’s in accordance with the requirements of the 1940 Act, the Securities Exchange Act of 1934, as amended (the “1934 Act”) and the Trust’s Amended and Restated Declaration of Trust. The liquidation and dissolution of the Quaker Absolute Return Fund was approved on January 31, 2014 and the liquidation and dissolution of the Quaker Small-Cap Growth Tactical Allocation Fund was approved on February 13, 2014, both by more than 50% of the outstanding voting securities of such Fund entitled to vote. The results of the votes are shown below:
Akros Absolute Return Fund | For | Against | Abstain | ||||
Proposal: Approval of the Liquidation | 288,415 | 328 | 228 | ||||
and dissolution of the Fund, a series of the | |||||||
Trust, pursuant to the Plan of Liquidation | |||||||
and Dissolution. | |||||||
Small-Cap Growth Tactical Allocation Fund | For | Against | Abstain | ||||
Proposal: Approval of the Liquidation | 116,918 | — | 19,545 | ||||
and dissolution of the Fund, a series of the | |||||||
Trust, pursuant to the Plan of Liquidation | |||||||
and Dissolution. |
2 0 1 3 S E M I - A N N U A L R E P O R T │ 55
|
Board Consideration of the Sub-Advisory Agreements (unaudited)
At a meeting held on September 19, 2013, the Trustees of the Board of the Trust (“Trustees” or “Board”) considered the continuation of the Sub-Advisory Agreements between Quaker Funds, Inc. (the “Adviser”) and Akros Capital, LLC (“Akros Capital”), sub-adviser to the Quaker Akros Absolute Return Fund (the “Quaker Akros Fund”); and the Adviser and Century Capital Management, Inc. (“Century Management”), sub-adviser to the Quaker Small-Cap Growth Tactical Allocation Fund (the “Quaker Small-Cap Growth Fund” and together with the Quaker Akros Fund, the “Funds”) (each an “Agreement” and collectively, the “Agreements”). At the meeting, the Independent Trustees reported to the full Board their considerations with respect to the Agreements, and the Board, including a majority of Independent Trustees, considered and approved the continuation of the Agreements for an additional six-month period or until the Funds could be liquidated (if such period was shorter than six-months).
In considering the continuation of the Agreements, the Trustees considered the nature, quality and extent of the services provided by each of the sub-advisers. The Trustees reviewed information relating to each sub-adviser’s investment management process, including the experience and capability of the sub-adviser’s management, investment professionals, and other personnel; the financial position of the sub-adviser; and the quality each of the sub-adviser’s compliance policies, procedures, and systems.
The Trustees considered the qualifications, experience and track record of the portfolio managers at each sub-adviser who are responsible for the day-to-day management of each Fund’s portfolio. The Trustees also considered, with respect to each sub-adviser, the specific investment approach and level of expertise with its particular asset class. The Trustees considered each sub-adviser’s performance record to its relevant benchmark.
Based on their consideration and review of the foregoing factors, the Trustees concluded that the nature, quality and extent of the sub-advisory services to be provided by each sub-adviser, as well as each sub-adviser’s ability to render such services based on its experience, organization and resources, were appropriate for each Fund, in light of the Trust’s intention to liquidate the Funds’ in the near future.
With respect to the Funds’ investment performance, the Trustees reviewed each Fund’s performance compared to both its Morningstar peer group and relative benchmark indices over one-year, three-year, five-year and since inception periods, as applicable. The Trustees considered factors, including but not limited to the sub-advisers’ management style and overall market conditions that had affected the performance of each Fund relative to its benchmark. The Trustees noted that the Funds continued to underperform against their benchmarks, which was a principal factor in the Board concluding that the Funds should liquidated.
With respect to each sub-adviser, the Trustees considered the fees paid by the Adviser to each sub-adviser. The Trustees concluded that each sub-adviser’s fees were generally similar to the fees charged by each sub-adviser to other comparable funds and accounts and that they were fair in light of Fund performance and asset levels.
The Trustees considered whether there are any “fall out” or ancillary benefits that may accrue to the sub-advisers as a result of their relationship with the Funds. Based on the information provided, the Trustees noted that there did not appear to be any significant benefits in this regard.
Based on the totality of the information considered, the Trustees concluded that pending the solicitation of shareholders to approve the Funds’ liquidations, the Funds were likely to benefit from the nature, extent and quality of each of the sub-advisers’ services, as applicable, and that each of the sub-advisers have the ability to continue to provide these services based on their respective experience, operations and resources.
After evaluation of the performance, fees and expense information, ancillary benefits and other considerations as described above, and in light of the nature, extent and quality of services to be provided by each of the sub-advisers, the Trustees determined the level of fees to be paid to each of the sub-advisers to be reasonable.
The Board discussed in detail the content of the information provided and raised specific questions they had from their individual reviews. In voting unanimously to approve the Agreements, based on the various considerations discussed above, the Trustees, including a majority of the Independent Trustees, determined that the approval of each of the Agreements was in the best interests of the respective Fund. Accordingly, the Agreements would be renewed for a six-month period or until each of the Funds could be liquidated (if such period was shorter than six-months).
56 │ 2 0 1 3 S E M I - A N N U A L R E P O R T
|
General Information (unaudited)
The Statement of Additional Information for the Trust including additional information about the Trustees and Officers is available, without charge upon request by calling (800) 220-8888. The Statement of additional information is also available on the website of the Securities and Exchange Commission (“SEC”) at http://www.sec.gov.
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Fund’s Forms N-Q, as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities is available without charge: (i) upon request, by calling (800) 220-8888; and (ii) on the SEC’s web-site at http://www.sec.gov. Each Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available: (i) without charge, upon request, by calling (800) 220-8888; and (ii) on the SEC’s web-site at http://www.sec.gov.
2 0 1 3 S E M I - A N N U A L R E P O R T │ 57
|
The Quaker Funds are distributed by
Foreside Fund Services, LLC.
Contact us:
Quaker Funds, Inc.
c/o U.S. Bancorp Fund Services, LLC.
PO Box 701
Milwaukee, WI 53201-0701
800-220-8888
www.quakerfunds.com
©2013 Quaker® Investment Trust
QKSAR 122013 |
|
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Schedule of Investments.
(a) | A Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1, Report to Shareholders, of this Form N-CSR. | |
(b) | Not Applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees, where those changes were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
|
Item 11. Controls and Procedures.
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, have reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
(b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a) | (1) Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Incorporate by reference to previous Form N-CSR filing. |
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies. | |
(b) | Certification pursuant to Section 906 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.
(Registrant) | Quaker Investment Trust | |
By (Signature and Title) | /s/ Jeffry H. King, Sr. | |
Jeffry H. King, Sr., | ||
Chief Executive Officer | ||
Date | 3/5/14 |
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 (Signature and Title) | /s/ Jeffry H. King, Sr. | |
Jeffry H. King, Sr., | ||
Chief Executive Officer | ||
Date | 3/5/14 |
By (Signature and Title) | /s/ Laurie Keyes | |
Laurie Keyes, | ||
Treasurer | ||
Date | 3/5/14 |
Exhibit 99.Cert
CERTIFICATIONS
I, Jeffry H. King, Sr., certify that:
1. | I have reviewed this report on Form N-CSR of Quaker Investment Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | 3/5/14 | /s/ Jeffry H. King, Sr. | ||
Jeffry H. King, Sr. Chief Executive Officer |
CERTIFICATIONS
I, Laurie Keyes, certify that:
1. | I have reviewed this report on Form N-CSR of Quaker Investment Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | 3/5/14 | /s/ Laurie Keyes | ||
Laurie Keyes Treasurer |
Exhibit 99.906.Cert
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Quaker Investment Trust, does hereby certify, to such officer’s knowledge, that the report on Form N-CSR of Quaker Investment Trust for the Semi-annual period ended December 31, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable, and that the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of Quaker Investment Trust for the stated period.
/s/ Jeffry H. King, Sr. | /s/ Laurie Keyes | |||
Jeffry H. King, Sr. Chief Executive Officer |
Laurie Keyes Treasurer | |||
Dated: | 3/5/14 | Dated: | 3/5/14 |
This statement accompanies this report on Form N-CSR pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed as filed by Quaker Investment Trust for purposes of the Securities Exchange Act of 1934.
2U]=_MX>$G\(_M5?$Y1#Y-GXI;0/&VFG.5F@\0Z+:#4I5P`#_P`5 M-8Z_'O*B1MH#@*L8'R)7;2_AQ]'^;L`4449`_P`_Y]*L`J.25(E+.=J@%F)S MA5!`+-@'"@LH+'"AF4,1N%>F?#3X1^/_`(MZDUAX*T0W5K!>V>GZCXAOWELO M#6CWFH.J6-CJ&JK!<-+K5^2W]E>%='M=7\7ZZRI%H/A_5)9D0>B>/OC=^S/^ MQ.TVF>#K#2?VI/VIK)G5M1\06\LGP2^#VK1,(WFN=,L;ISK_`(FTBYBD":'% MN)E)13>]K:+?7\@,*Q^"T/AWP1'\7_V@O&%C\!O M@U*A?2M6\2V$]]X^^)$J0PW2Z/\`"?X<1O!KWBJ\O(9K !X/@O\2OVTEE^!OP"\/Z[)I>K_ M`+0T?POUK19-0^(/QI^+/BZ);2[TC6[KX=W-P_A/P5X$.E>&?A1JOQ"^'NHS M76IZYXH>XTG@O@C!XC^._B'QG^WY^V[JGBGXN?#KX22V-GX.\#O;076J?M!? M&.[U?2[#X=?L^?"CP>@M="70M2^(?B'PGX X1;FX\(P?$6(_"7X87UW+ +M-AR/X[B!0,LYK\.Z_JA_X-2OA)-KW[47[47QSEA5M/\`AA\#O"GP MSMY)HSAM;^,GCB;Q&LEG(RE6GT[2/@S?071@;S((-=B2Y58[NU+@']#G_!5K MX7/)I7PS^,5A;O*VDW-Q\//$LZHTK1V6J&ZUCPM=7!X6"TM+Z/Q'8"9R ^T/6+6PUBQ$F4-W8PAPR%E/\R6H_`37OA]KCZ7\;M0N?A\5\17?A MK1O#FB:+-XU^+'Q3U:SU&;38['X.?"_3IH=9\366KW4"VFF>.- U> MX^R:3HFBV%UJFK:G<@,S0V.G644UW=/&B22R^3$PAACDGF:.%&D'T'I/PN^' M/P_T;4O'/QM\4>';G1_#^H2:)KD-OX@N4^&7A7Q/%$;D>$_%/Q"\'KJFI_$O MXAI;I//)\$_V=_\`A)/%4!A0>._B%\)[&WNM7@XKXI_M`^`?@%H^M>!8M#33 M_$EU;W>DZI\!/!_C*2_\83O";:)(/VR_VB/#4.F7\T6Y7OM1_9;^`]UX4TN` M.FB?$37/"UPT4FH?EM\4/BOX\^,6OVVO>/-9AOO[)LET?PKX>TC3K+P[X)\! M^'8=BVWA?X?>#-'@LO#W@[PW;I#$5T_1=.LVNY`]UJ\FH:G<7]]>U4J:6BT[ MIIV=VM%VT6[V;UZZ-`?7GQ^_;U\8>.=,D^''P5CU7X7?"^WT^\T9M1M+;3O# M7C+7],U!W&IZ1I.E^%Y9?#WPA\!:S`PBU;P9X*N[[Q1XJBMK7_A;/Q2^*ES( M7M/ESX$_!N[^,?C*+P_%/>:!X.T"VLM8\=^)=)TDZO>^'?#ESJ]IX?TG2_#6 M@0`3^)?B%X]\4W^C?#7X1^"=.BEO?%_Q(\2>']%2&+3QJEY8>?>%?"WB7QSX MH\.>"O!NBWOB3Q;XMUO3O#WAO0-."?;-7UG5+J.ULK*)Y"L-NDLC_P"DWMP\ M5II]J)M0O)H;2UGE7Z=^.GQK\/?LA_L\6^B?";7=-UKQ?XDUSQ/H7P?\<^%K MF^:]^)?Q1L$NO!'QD_;"TIX(HYKSX6_!C3;OQ)^SQ^P\KB*+7OB-K/QE_:/T M^WN=<\):5!HO,!/^US^UUIO@O2O''B'X;1:/X;^$W_!/NRTSX9?`_1]`>#6? M#OB/_@HE\4]#\6>#_A]+H^M7%M-:_$+3/V*/`]K\;_B?:>/+E(H/'OQTT+QQ M\8FMK:V^/WA?3]-_E*B4I&B%F [DDL[8W. &6+7_VPOC%:^&M7^-D=]-:SW%M? MR_!/PYX<^''[-=I*PCFM=<^$_C._01R>)=0,?Y]T`%%%%`!1110`4444`'ID MA1D98Y(49Y.`"3@9.`">.`>E?Z+/_!N3^S!=?`'_`()R^$?B!K^GFP\7_M2^ M+=6^/MXMS;HM]%X'U33]/\*_"FV%P"_F:9JG@?P]I_C[3%C=XX_^$ZNRC%IY MR_\`#U_P3R_8U\3?M[?M=?"C]F_1(-1B\-Z_J?\`PDWQ=\1Z>)$/@OX+^%KF MQN_B#X@>\2&Y6PU*^L;BV\&^$;B>VGM)?'GBSPI:7:1VES<75M_JM>'/#^C> M%-!T?PQX ",CT-?C[_P51^"?Q*A^&GBCX_?LWZ?I^A?$2QT M:+1OC;KOA?1$3XM>)?@YI^GWT;Q^#O&445WJ_A=?#WVR>?QG'X2ATKQ)XM\% M1G3]0U^31_#-EH&I?L%3'3>NW)7E3D`'H0<$$$%6`VMC#`$E&1PKJ`?YTT6P MHAC"A"B^6$"JJQG+*$",ZJA)+!4=T&3M9A\Q)9%B1Y&("QHSL20H"HI8Y9BJ M+P.KLJJ#N=E0%A^['_!3+_@E]J7PZU'Q+^T5^S;X9GO?AI=RZAK_`,3?AGHE MFT]_\.[C,MYJGBWP9ID"[[KX?W`\RXUC0K*-[GP.R+=6$$O@6`6O@K\I_AK: M:'\+O!C?M,^/_#6F^,]-T[Q%)X1_9_\`A;JL$^HVOQQ^.EI:VM[:KJ>A6F^Z MU[X0?"@ZAHWB;XGPQIY7B[6;WP/\*]--Y<^+=;_L@`]9\'>$]+^$'A_5_#OB MS7Y?`?COQM\([[XG_M$?$&T1)/$?[)W[%UY!9G4-%T*SNX\6O[3G[6D&J>'/ M`?@'0)8?[:T7P?\`$'POX?EBL;KXKZ^?#_Y_>'OC0GCKXO?%C]O?QUX3T?0? MA;^QUX+\+:]\%_A%+(^J>"M!\76-VGP^_8<_9KT5G>TEU?2M"\ 2Q MQ17?C7P7\)_C;XXU2`7NMZ_)+9_;B^*&O>"+36/V8]0\57OB;XF7WCP?&;]N MKX@WE]IUW>>-/VEXTUQ]*^%SZII;S:?>>%_V;M/\1:WI&KV5C-+H-U\;O$GQ M(U"PAM]+\(^`9;;Y+_;0U>?X0?"OX'_L;6D;:=XATVVTS]J/]I>W"2VUZWQJ M^+?@VRA^$GPWUF.>`74)^!7[.E_HF_2)IA'H7Q#^./QALS:1ZDMS<1@'YYZI MJVKZ_JFIZ]XAU2_USQ!KNHZAK>OZ[JMR][JNNZ[K%[/J>LZYJMY(%>[U75]3 MNKK4-2NW&^ZO+B6XD)>1L4J**`"BBB@`HHHH`*GM+2]U&]L=,TRQU#5-3U2^ ML]+TS2])L;K5-6U34]2NHK'3M,TK3+&*>]U+4]0O9X+.QT^SAEN[RYFCM[6& M:XDBADC@AN+RZM+"RMKJ^O\`4+RTT[3["PMI[Z_O]0O[F.SL;&QLK2*>[O+V M\NYHK>UM+6":XN9G$4$3OD#^Y?\`X(:_\$.;G]GVY\-_MD?ME>%8D^.\MLNK M?!7X+:M#' W[4GQYM=`\1_%A\QWDOPYT"SM MWN_"/P6TZ^CWV^?"[7MSK'CB^L)+F+6?'FJ:G9IJ>M>'/#'@Z\A_<6D`P`.N M`!2T`%%%%`$4L22@;UR5.5.2"""&!!!!X958 -?&.B6MM:#PIXC^+UYX0\8>+[=!H6HW6H_K]2$!@58` M@C!!`((/4$'@@^AH`_S8_!?[*OC[]GWX^>+]8_;;^$WC#P9X#_9?\':W^T7\ M9M$\ !/A[H_C076JZ!X]@_:"^.'B/X>_!K_A(O#OB/7K M2\M_&_B+Q!_:=POACQ+-IWX_^/\`Q[XP^*WC[QS\5/B%JCZWX^^)GC#Q'X_\ M<:N\:0_VGXM\7:S?^(-?O%MX_P!U;12ZIJ=Y]FM(0L%G:^19VZ1V]O$B_P"N M?\7_`(,?"CX^>`=:^%WQH^&_@?XJ?#WQ!Y!U?P;X_P##6E^*/#UY-:2+/97O M]GZI;7$-MJNG7")=Z1K-JL.J:+?Q0:CIEU;7MM!,G\X_[3O_``:U_LF_$=[_ M`%S]F7XN_$7]F;7+AWG3PUK5JWQO^%L.")?*LM)\2ZYH/Q)T]I7#Q>?/\5-9 MM+:%U8:/<^68I@#^#VBOZ'OBE_P;'?\`!1_P1-<2_#S5/V?OC=I!GD^PMX;^ M(VK^#/$DUIO<6\M[HWQ%\+:!H5E [LOCK^S'-`P VC"J,NRL0 ME`'Y*45^P7AW_@@=_P`%:?$ ZW\=_V;EM?*D6-EE*:'\7 MM?O=FV5#C['YO)'E9!%?<7PA_P"#6G]M[Q==Z?+\9/C/^SY\$]%N9(A>KHLW MC+XQ^,+"-PK,1X )_B-J32>'/A-X"EF< M1SOXQ^(E]:RZ'97=BK27+>&M*77O&FJ)9W$/AWPMK,JR>5_;-^R]_P`&S_[! M/P1ETSQ!\9[OQU^U?XTL1:W#Q?$B]3PM\*8]3MI%D:YL?A;X*FL'OK& 50QD_H"\&^"O!WP[\*Z%X'\`^$O#/@;P7X8T^#2O#?A# MP=H6E>&?"WA[3+92+?3="T#1;2PTG2=/MP2(+.PL[:WB!(CB0'%`'XG?\$N_ M^"%WP#_8`ET?XM?$&[LOC_\`M4+9KM^(NK:4+3P1\+)KR)AJ-E\%_"=Z]W-I ME\T;1Z;>_$77YKOQIJ]K!<_V1_PA&C:WJOA63]UD18U"(,*N<#)/4D\DY).3 0R223U))R:=10`4444`?_V3\_ ` end
%?@C\,?$\%U