OMB APPROVAL
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OMB Number: 3235-0570
Expires: January 31, 2014
Estimated average burden hours per response: 20.6
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525 Bigham Knoll Jacksonville, Oregon
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97530
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(Address of principal executive offices)
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(Zip code)
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Item 1.
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Reports to Stockholders.
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![]() |
The
Cutler
Trust
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Page
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Letter to Shareholders
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2
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Performance Information
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3
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Portfolio Information
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5
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Schedules of Investments
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6
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Statements of Assets and Liabilities
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14
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Statements of Operations
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15
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Statements of Changes in Net Assets
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16
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Financial Highlights
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18
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Notes to Financial Statements
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20
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About Your Fund’s Expenses
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27
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Additional Information
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29
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Privacy Policy
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30
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![]() |
![]() |
Matt Patten
President
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Xavier Urpi
Director of Fixed Income
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Average Annual Total Returns(a)
(for periods ended December 31, 2012)
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|||||
1 Year
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5 Years
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10 Years
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|||
Cutler Equity Fund
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9.44%
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3.31%
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7.23%
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S&P 500 Total Return Index
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16.00%
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1.66%
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7.10%
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(a)
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Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
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Average Annual Total Returns(a)
(for periods ended December 31, 2012)
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|||||
1 Year
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5 Years
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10 Years
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|||
Cutler Income Fund
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2.66%
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5.95%
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4.62%
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Barclays Intermediate U.S. Government/Credit Index
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3.89%
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5.18%
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4.62%
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Barclays Short-Term U.S. Government Index
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0.51%
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2.49%
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2.83%
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(a)
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Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
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COMMON STOCKS — 97.0%
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Shares
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Value
|
||||||
Consumer Discretionary — 13.7%
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||||||||
Hotels, Restaurants & Leisure — 2.8%
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||||||||
McDonald's Corporation
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28,405 | $ | 2,505,605 | |||||
Media — 3.4%
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||||||||
Walt Disney Company (The)
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60,975 | 3,035,945 | ||||||
Multiline Retail — 3.4%
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||||||||
Nordstrom, Inc.
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56,385 | 3,016,597 | ||||||
Specialty Retail — 4.1%
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||||||||
Home Depot, Inc. (The)
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58,420 | 3,613,277 | ||||||
Consumer Staples — 12.0%
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||||||||
Beverages — 2.5%
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||||||||
PepsiCo, Inc.
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32,745 | 2,240,740 | ||||||
Food & Staples Retailing — 2.2%
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||||||||
Sysco Corporation
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60,595 | 1,918,438 | ||||||
Food Products — 1.9%
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||||||||
Archer-Daniels-Midland Company
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62,135 | 1,701,878 | ||||||
Household Products — 5.4%
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||||||||
Kimberly-Clark Corporation
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30,490 | 2,574,271 | ||||||
Procter & Gamble Company (The)
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32,430 | 2,201,673 | ||||||
4,775,944 | ||||||||
Energy — 10.2%
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||||||||
Oil, Gas & Consumable Fuels — 10.2%
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||||||||
Chevron Corporation
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29,820 | 3,224,735 | ||||||
ConocoPhillips
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41,830 | 2,425,722 | ||||||
Exxon Mobil Corporation
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29,355 | 2,540,675 | ||||||
Phillips 66
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16,930 | 898,983 | ||||||
9,090,115 | ||||||||
Financials — 12.7%
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||||||||
Capital Markets — 2.4%
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||||||||
Charles Schwab Corporation (The)
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145,095 | 2,083,564 | ||||||
Commercial Banks — 3.1%
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||||||||
M&T Bank Corporation
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28,340 | 2,790,640 | ||||||
Consumer Finance — 3.8%
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||||||||
American Express Company
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59,205 | 3,403,103 |
COMMON STOCKS — 97.0% (Continued)
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Shares
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Value
|
||||||
Financials — 12.7% (Continued)
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||||||||
Insurance — 3.4%
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||||||||
Chubb Corporation (The)
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39,670 | $ | 2,987,944 | |||||
Health Care — 10.4%
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||||||||
Health Care Equipment & Supplies — 2.1%
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||||||||
Becton, Dickinson and Company
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24,325 | 1,901,972 | ||||||
Pharmaceuticals — 8.3%
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||||||||
Bristol-Myers Squibb Company
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67,240 | 2,191,352 | ||||||
Johnson & Johnson
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37,170 | 2,605,617 | ||||||
Merck & Company, Inc.
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62,790 | 2,570,623 | ||||||
7,367,592 | ||||||||
Industrials — 10.4%
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||||||||
Aerospace & Defense — 5.8%
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||||||||
Honeywell International, Inc.
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36,540 | 2,319,194 | ||||||
United Technologies Corporation
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34,010 | 2,789,160 | ||||||
5,108,354 | ||||||||
Electrical Equipment — 2.3%
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||||||||
Emerson Electric Company
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38,735 | 2,051,406 | ||||||
Machinery — 2.3%
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||||||||
Caterpillar, Inc.
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22,980 | 2,058,548 | ||||||
Information Technology — 12.0%
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||||||||
IT Services — 4.0%
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||||||||
International Business Machines Corporation
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18,565 | 3,556,126 | ||||||
Semiconductors & Semiconductor Equipment — 5.5%
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||||||||
Intel Corporation
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109,965 | 2,268,578 | ||||||
Texas Instruments, Inc.
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83,900 | 2,595,866 | ||||||
4,864,444 | ||||||||
Software — 2.5%
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||||||||
Microsoft Corporation
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82,425 | 2,203,220 | ||||||
Materials — 7.2%
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||||||||
Chemicals — 5.2%
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||||||||
E.I. du Pont de Nemours and Company
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56,905 | 2,559,018 | ||||||
Monsanto Company
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21,715 | 2,055,325 | ||||||
4,614,343 | ||||||||
Metals & Mining — 2.0%
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||||||||
Nucor Corporation
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40,620 | 1,753,971 |
COMMON STOCKS — 97.0% (Continued)
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Shares
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Value
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||||||
Telecommunication Services — 5.6%
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||||||||
Diversified Telecommunication Services — 5.6%
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||||||||
AT&T, Inc.
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68,940 | $ | 2,323,967 | |||||
Verizon Communications, Inc.
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60,960 | 2,637,739 | ||||||
4,961,706 | ||||||||
Utilities — 2.8%
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||||||||
Gas Utilities — 2.8%
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||||||||
National Fuel Gas Company
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49,545 | 2,511,436 | ||||||
Total Common Stocks (Cost $72,455,749)
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$ | 86,116,908 |
MONEY MARKET FUNDS — 2.9%
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Shares
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Value
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||||||
Invesco STIT - STIC Prime Portfolio - Institutional Class, 0.09% (a) (Cost $2,611,664)
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2,611,664 | $ | 2,611,664 | |||||
Total Investments at Value — 99.9% (Cost $75,067,413)
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$ | 88,728,572 | ||||||
Other Assets in Excess of Liabilities — 0.1%
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94,983 | |||||||
Net Assets — 100.0%
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$ | 88,823,555 |
(a)
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The rate shown is the 7-day effective yield as of December 31, 2012.
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U.S. TREASURY OBLIGATIONS — 16.8%
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Maturity
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Coupon
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Par Value
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Value
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|||||||||
U.S. Treasury Notes
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04/30/13
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0.625 | % | $ | 416,000 | $ | 416,731 | ||||||
U.S. Treasury Notes
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09/30/16
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1.000 | % | 1,125,000 | 1,146,445 | ||||||||
U.S. Treasury Bonds
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08/15/23
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6.250 | % | 400,000 | 573,500 | ||||||||
U.S. Treasury Bonds
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02/15/26
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6.000 | % | 320,000 | 463,050 | ||||||||
U.S. Treasury Bonds
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11/15/28
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5.250 | % | 300,000 | 414,469 | ||||||||
Total U.S. Treasury Obligations (Cost $2,826,039)
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$ | 3,014,195 |
U.S. GOVERNMENT AGENCY OBLIGATIONS — 18.6%
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Maturity
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Coupon
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Par Value
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Value
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|||||||||
Federal Farm Credit Bank — 0.3%
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|||||||||||||
Federal Farm Credit Bank
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08/15/22
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2.250 | % | $ | 65,000 | $ | 64,846 | ||||||
Federal Home Loan Bank — 2.8%
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|||||||||||||
Federal Home Loan Bank
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12/13/19
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1.460 | % | 500,000 | 497,349 | ||||||||
Federal Home Loan Mortgage Corporation — 3.4%
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|||||||||||||
Federal Home Loan Mortgage Corporation
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04/12/17
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1.450 | % | 50,000 | 49,946 | ||||||||
Federal Home Loan Mortgage Corporation
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11/30/17
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1.250 | % | 65,000 | 65,501 | ||||||||
Federal Home Loan Mortgage Corporation
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06/24/20
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1.500 | % | 500,000 | 497,045 | ||||||||
612,492 | |||||||||||||
Federal National Mortgage Association — 5.1%
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|||||||||||||
Federal National Mortgage Association
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02/27/17
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1.000 | % | 350,000 | 353,791 | ||||||||
Federal National Mortgage Association
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04/25/19
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1.200 | % | 500,000 | 499,234 | ||||||||
Federal National Mortgage Association
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03/27/20
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2.000 | % | 60,000 | 60,842 | ||||||||
913,867 | |||||||||||||
Private Export Funding Corporation — 3.5%
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|||||||||||||
Private Export Funding Corporation
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08/15/13
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4.974 | % | 200,000 | 205,933 | ||||||||
Private Export Funding Corporation
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12/15/21
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4.300 | % | 350,000 | 422,728 | ||||||||
628,661 | |||||||||||||
Tennessee Valley Authority — 2.5%
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|||||||||||||
Tennessee Valley Authority
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08/01/13
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4.750 | % | 250,000 | 256,597 | ||||||||
Tennessee Valley Authority
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07/15/45
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6.235 | % | 150,000 | 189,474 | ||||||||
446,071 |
U.S. GOVERNMENT AGENCY OBLIGATIONS —
18.6% (Continued)
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Maturity
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Coupon
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Par Value
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Value
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|||||||||
U.S. Department of Housing and Urban Development — 1.0%
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|||||||||||||
U.S. Department of Housing and Urban Development
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08/01/25
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4.130 | % | $ | 150,000 | $ | 174,914 | ||||||
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|||||||||||||
Total U.S. Government Agency Obligations (Cost $3,291,451)
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$ | 3,338,200 |
OTHER GOVERNMENT OBLIGATIONS — 4.9%
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Maturity
|
Coupon
|
Par Value
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Value
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|||||||||
Province of Manitoba
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04/28/14
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1.375 | % | $ | 200,000 | $ | 202,712 | ||||||
Province of Manitoba
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04/03/17
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1.300 | % | 350,000 | 357,630 | ||||||||
Province of Nova Scotia
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07/21/15
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2.375 | % | 300,000 | 313,830 | ||||||||
Total Other Government Obligations (Cost $866,453)
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$ | 874,172 |
MORTGAGE-BACKED SECURITIES — 4.4%
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Maturity
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Coupon
|
Par Value
|
Value
|
|||||||||
Federal Home Loan Mortgage Corporation — 1.4%
|
|||||||||||||
FHLMC, Series 2962-YE
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09/01/18
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4.500 | % | $ | 109,678 | $ | 111,098 | ||||||
FHLMC, Pool #J13584
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11/01/25
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3.500 | % | 92,542 | 98,791 | ||||||||
FHLMC, Series 1963-Z
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01/01/27
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7.500 | % | 42,407 | 49,643 | ||||||||
259,532 | |||||||||||||
Federal National Mortgage Association — 2.9%
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|||||||||||||
FNMA, Series 2003-3-HJ
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02/01/18
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5.000 | % | 45,143 | 48,202 | ||||||||
FNMA, Pool #899237
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03/01/22
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5.000 | % | 38,016 | 41,207 | ||||||||
FNMA, Series 2002-93-A1
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03/01/32
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6.500 | % | 69,157 | 76,892 | ||||||||
FNMA, Series 2006-65-TD
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10/01/32
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5.500 | % | 68,441 | 68,777 | ||||||||
Multifamily REMIC Trust, Series 2006-M1-D
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06/01/19
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5.385 | % | 250,000 | 279,004 | ||||||||
514,082 | |||||||||||||
Government National Mortgage Association — 0.1%
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|||||||||||||
GNMA, Pool #577742
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09/01/17
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5.500 | % | 12,804 | 13,836 | ||||||||
Total Mortgage-Backed Securities (Cost $761,004)
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$ | 787,450 |
ASSET-BACKED SECURITIES — 7.4%
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Maturity
|
Coupon
|
Par Value
|
Value
|
|||||||||
Ford Credit Auto Owner Trust, Series 2009-E-A4
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11/15/14
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2.420 | % | $ | 289,115 | $ | 291,700 | ||||||
Ford Credit Auto Owner Trust, Series 2012-A-A3
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04/15/15
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0.840 | % | 213,000 | 214,111 | ||||||||
FPL Recovery Funding, Series 2007-A-A2
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08/01/15
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5.044 | % | 70,774 | 71,773 | ||||||||
FPL Recovery Funding, Series 2007-A-A3
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08/01/17
|
5.127 | % | 220,000 | 236,552 | ||||||||
Massachusetts RRB Special Purpose Trust, Series 2005-1-A4
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03/15/15
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4.400 | % | 37,553 | 37,862 | ||||||||
Mercedes-Benz Auto Receivables Trust, Series 2009-1-A3
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01/15/14
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1.670 | % | 18,530 | 18,548 | ||||||||
Mercedes-Benz Auto Receivables Trust, Series 2011-1-A3
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03/15/14
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0.850 | % | 249,261 | 249,847 | ||||||||
RSB Bond Company, LLC, Series 2007-A-A2
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04/01/16
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5.720 | % | 193,108 | 208,792 | ||||||||
Total Asset-Backed Securities (Cost $1,338,381)
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$ | 1,329,185 |
CORPORATE BONDS — 42.8%
|
Maturity
|
Coupon
|
Par Value
|
Value
|
|||||||||
Consumer Discretionary — 6.6%
|
|||||||||||||
DIRECTV Holdings, LLC
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03/01/16
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3.500 | % | $ | 500,000 | $ | 529,703 | ||||||
Fortune Brands, Inc.
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01/15/16
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5.375 | % | 321,000 | 358,600 | ||||||||
Starbucks Corporation
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08/15/17
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6.250 | % | 250,000 | 300,715 | ||||||||
1,189,018 | |||||||||||||
Energy — 7.8%
|
|||||||||||||
Anadarko Petroleum Corporation
|
09/15/16
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5.950 | % | 400,000 | 460,452 | ||||||||
Boardwalk Pipelines, LLC
|
06/01/18
|
5.200 | % | 300,000 | 332,478 | ||||||||
Buckeye Partners, L.P.
|
02/01/21
|
4.875 | % | 200,000 | 207,136 | ||||||||
Energy Transfer Partners, L.P.
|
07/01/13
|
6.000 | % | 250,000 | 255,926 | ||||||||
Energy Transfer Partners, L.P.
|
02/01/22
|
5.200 | % | 125,000 | 142,589 | ||||||||
1,398,581 | |||||||||||||
Financials — 14.0%
|
|||||||||||||
Bank of America Corporation
|
07/12/16
|
3.750 | % | 250,000 | 267,232 | ||||||||
Biomed Realty, L.P.
|
04/15/16
|
3.850 | % | 200,000 | 210,939 | ||||||||
Citigroup, Inc.
|
10/15/14
|
5.500 | % | 205,000 | 219,932 | ||||||||
Digital Realty Trust, L.P.
|
03/15/21
|
5.250 | % | 100,000 | 110,678 | ||||||||
Ford Motor Credit Company, LLC
|
05/15/15
|
2.750 | % | 200,000 | 204,114 | ||||||||
People's United Financial, Inc.
|
12/06/22
|
3.650 | % | 500,000 | 502,601 | ||||||||
Senior Housing Properties Trust
|
01/15/16
|
4.300 | % | 250,000 | 259,192 | ||||||||
Wachovia Corporation
|
08/01/13
|
5.700 | % | 250,000 | 257,793 | ||||||||
Wells Fargo & Company
|
10/28/15
|
0.513 | %(a) | 300,000 | 297,326 |
CORPORATE BONDS — 42.8% (Continued)
|
Maturity
|
Coupon
|
Par Value
|
Value
|
|||||||||
Financials — 14.0% (Continued)
|
|||||||||||||
Zions Bancorp
|
09/23/14
|
7.750 | % | $ | 164,000 | $ | 179,114 | ||||||
2,508,921 | |||||||||||||
Industrials — 0.9%
|
|||||||||||||
Domtar Corporation
|
06/01/17
|
10.750 | % | 120,000 | 155,462 | ||||||||
Information Technology — 1.3%
|
|||||||||||||
Oracle Corporation
|
04/15/18
|
5.750 | % | 200,000 | 243,401 | ||||||||
Telecommunication Services — 4.5%
|
|||||||||||||
Iron Mountain, Inc.
|
08/15/21
|
8.375 | % | 150,000 | 166,500 | ||||||||
Qwest Corporation
|
10/01/14
|
7.500 | % | 175,000 | 191,536 | ||||||||
Rogers Communications, Inc.
|
03/01/14
|
6.375 | % | 120,000 | 127,844 | ||||||||
Scripps Networks Interactive, Inc.
|
12/15/16
|
2.700 | % | 300,000 | 314,156 | ||||||||
800,036 | |||||||||||||
Utilities — 7.7%
|
|||||||||||||
AEP Texas Central Transmission Funding, LLC
|
07/01/13
|
4.980 | % | 66,315 | 66,476 | ||||||||
CenterPoint Energy Houston Electric, LLC
|
07/01/23
|
5.600 | % | 359,000 | 439,022 | ||||||||
NV Energy, Inc.
|
11/15/20
|
6.250 | % | 150,000 | 176,385 | ||||||||
Sempra Energy
|
06/01/16
|
6.500 | % | 125,000 | 146,544 | ||||||||
Union Electric Company
|
06/15/17
|
6.400 | % | 150,000 | 183,219 | ||||||||
Valmont Industries, Inc.
|
04/20/20
|
6.625 | % | 150,000 | 176,606 | ||||||||
Verizon Communications, Inc.
|
11/01/16
|
2.000 | % | 185,000 | 191,463 | ||||||||
1,379,715 | |||||||||||||
Total Corporate Bonds (Cost $7,330,434)
|
$ | 7,675,134 |
PREFERRED STOCKS — 1.3%
|
Shares
|
Value
|
||||||
Citigroup Capital XIII (Cost $208,800)
|
8,000 | $ | 223,200 |
MONEY MARKET FUNDS — 3.0%
|
Shares
|
Value
|
||||||
Invesco STIT-STIC Prime Portfolio (The) - Institutional Class, 0.09% (b) (Cost $544,070)
|
544,070 | $ | 544,070 | |||||
Total Investments at Value — 99.2% (Cost $17,166,632)
|
$ | 17,785,606 | ||||||
Other Assets in Excess of Liabilities — 0.8%
|
143,674 | |||||||
Net Assets — 100.0%
|
$ | 17,929,280 |
(a)
|
Variable rate security. The rate shown is the effective interest rate as of December 31, 2012.
|
(b)
|
The rate shown is the 7-day effective yield as of December 31, 2012.
|
|
Cutler
Equity Fund
|
Cutler
Income Fund
|
||||||
ASSETS
|
||||||||
Investments in securities:
|
||||||||
At acquisition cost
|
$ | 75,067,413 | $ | 17,166,632 | ||||
At value (Note 2)
|
$ | 88,728,572 | $ | 17,785,606 | ||||
Dividends and interest receivable
|
98,545 | 160,098 | ||||||
Receivable for capital shares sold
|
121,706 | 160 | ||||||
Other assets
|
22,408 | 8,038 | ||||||
Total assets
|
88,971,231 | 17,953,902 | ||||||
LIABILITIES
|
||||||||
Dividends payable
|
3,827 | 2,604 | ||||||
Payable for capital shares redeemed
|
51,652 | 1,949 | ||||||
Payable to Adviser (Note 3)
|
56,524 | 7,581 | ||||||
Payable to administrator (Note 3)
|
11,400 | 6,000 | ||||||
Other accrued expenses
|
24,273 | 6,488 | ||||||
Total liabilities
|
147,676 | 24,622 | ||||||
NET ASSETS
|
$ | 88,823,555 | $ | 17,929,280 | ||||
NET ASSETS CONSIST OF:
|
||||||||
Paid-in capital
|
$ | 82,801,748 | $ | 17,538,835 | ||||
Accumulated undistributed (distributions in excess of)
net investment income
|
4,933 | (279,013 | ) | |||||
Accumulated net realized gains (losses) from security transactions
|
(7,644,285 | ) | 50,484 | |||||
Net unrealized appreciation on investments
|
13,661,159 | 618,974 | ||||||
NET ASSETS
|
$ | 88,823,555 | $ | 17,929,280 | ||||
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value)
|
6,809,167 | 1,738,258 | ||||||
Net asset value, offering price and redemption
price per share (Note 2)
|
$ | 13.04 | $ | 10.31 |
Cutler
Equity Fund
|
Cutler
Income Fund
|
|||||||||||
|
Six Months
Ended
December 31,
2012
(Unaudited)
|
Three Months
Ended
December 31,
2012(a)
(Unaudited)
|
Year
Ended
September 30,
2012
|
|||||||||
INVESTMENT INCOME
|
||||||||||||
Dividend income (net of foreign tax withheld of
$0, $38 and $1,305, respectively)
|
$ | 1,011,440 | $ | 7,026 | $ | 110,721 | ||||||
Interest
|
— | 125,043 | 624,919 | |||||||||
Securities lending (Note 2)
|
— | — | 4,737 | |||||||||
Total investment income
|
1,011,440 | 132,069 | 740,377 | |||||||||
EXPENSES
|
||||||||||||
Investment advisory fees (Note 3)
|
268,514 | 23,556 | 145,526 | |||||||||
Administration fees (Note 3)
|
54,077 | 18,000 | — | |||||||||
Transfer agent fees
|
— | — | 49,535 | |||||||||
Professional fees
|
20,449 | 7,897 | 20,654 | |||||||||
Fund accounting fees
|
— | — | 42,302 | |||||||||
Custody and bank service fees
|
14,156 | 1,802 | 14,615 | |||||||||
Trustees’ fees and expenses
|
12,727 | 1,648 | 10,080 | |||||||||
Shareholder servicing fees (Note 3)
|
20,304 | 531 | — | |||||||||
Compliance service fees
|
— | — | 18,898 | |||||||||
Registration and filing fees
|
13,021 | 4,264 | 1,134 | |||||||||
Insurance expense
|
9,432 | 221 | 6,825 | |||||||||
Printing of shareholder reports
|
3,869 | 2,751 | 2,629 | |||||||||
Other expenses
|
8,833 | 902 | 4,749 | |||||||||
Total expenses
|
425,382 | 61,572 | 316,947 | |||||||||
NET INVESTMENT INCOME
|
586,058 | 70,497 | 423,430 | |||||||||
REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS
|
||||||||||||
Net realized gains from
investment transactions
|
3,360,788 | 224,544 | 48,861 | |||||||||
Net change in unrealized appreciation/
depreciation on investments
|
(2,649,734 | ) | (284,083 | ) | 564,710 | |||||||
NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS
|
711,054 | (59,539 | ) | 613,571 | ||||||||
NET INCREASE IN NET ASSETS
FROM OPERATIONS
|
$ | 1,297,112 | $ | 10,958 | $ | 1,037,001 |
(a)
|
Fund changed fiscal year end to June 30.
|
|
Six Months
Ended
December 31, 2012
(Unaudited)
|
Year
Ended
June 30,
2012
|
||||||
FROM OPERATIONS
|
||||||||
Net investment income
|
$ | 586,058 | $ | 720,242 | ||||
Net realized gains from investment transactions
|
3,360,788 | 1,887,458 | ||||||
Net change in unrealized appreciation/
depreciation on investments
|
(2,649,734 | ) | 283,247 | |||||
Net increase in net assets from operations
|
1,297,112 | 2,890,947 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS
|
||||||||
From net investment income
|
(585,865 | ) | (720,038 | ) | ||||
CAPITAL SHARE TRANSACTIONS
|
||||||||
Net assets received in conjunction with fund merger (Note 1)
|
39,854,719 | — | ||||||
Proceeds from shares sold
|
5,970,194 | 5,049,061 | ||||||
Net asset value of shares issued in reinvestment
of distributions to shareholders
|
579,945 | 717,866 | ||||||
Payments for shares redeemed
|
(7,708,306 | ) | (3,907,611 | ) | ||||
Net increase from capital share transactions
|
38,696,552 | 1,859,316 | ||||||
TOTAL INCREASE IN NET ASSETS
|
39,407,799 | 4,030,225 | ||||||
NET ASSETS
|
||||||||
Beginning of period
|
49,415,756 | 45,385,531 | ||||||
End of period
|
$ | 88,823,555 | $ | 49,415,756 | ||||
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME
|
$ | 4,933 | $ | 1,970 | ||||
CAPITAL SHARE ACTIVITY
|
||||||||
Shares issued in conjunction with fund merger (Note 1)
|
3,000,712 | — | ||||||
Shares sold
|
461,370 | 424,545 | ||||||
Shares reinvested
|
44,297 | 59,331 | ||||||
Shares redeemed
|
(586,905 | ) | (321,734 | ) | ||||
Net increase in shares outstanding
|
2,919,474 | 162,142 | ||||||
Shares outstanding at beginning of period
|
3,889,693 | 3,727,551 | ||||||
Shares outstanding at end of period
|
6,809,167 | 3,889,693 |
|
Three Months Ended
December 31, 2012
(Unaudited)(a)
|
Year
Ended
September 30,
2012
|
Year
Ended
September 30,
2011
|
|||||||||
FROM OPERATIONS
|
||||||||||||
Net investment income
|
$ | 70,497 | $ | 423,430 | $ | 546,592 | ||||||
Net realized gains from investment transactions
|
224,544 | 48,861 | 605,901 | |||||||||
Net change in unrealized appreciation/
depreciation on investments
|
(284,083 | ) | 564,710 | (727,573 | ) | |||||||
Net increase in net assets from operations
|
10,958 | 1,037,001 | 424,920 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS
|
||||||||||||
From net investment income
|
(161,959 | ) | (759,169 | ) | (920,496 | ) | ||||||
From net realized gains
|
— | — | (500,999 | ) | ||||||||
Decrease in net assets from distributions to shareholders
|
(161,959 | ) | (759,169 | ) | (1,421,495 | ) | ||||||
CAPITAL SHARE TRANSACTIONS
|
||||||||||||
Proceeds from shares sold
|
885,672 | 1,315,387 | 4,077,055 | |||||||||
Net asset value of shares issued in reinvestment
of distributions to shareholders
|
159,356 | 748,299 | 1,402,466 | |||||||||
Payments for shares redeemed
|
(2,657,689 | ) | (3,890,718 | ) | (4,560,424 | ) | ||||||
Net increase (decrease) from
capital share transactions
|
(1,612,661 | ) | (1,827,032 | ) | 919,097 | |||||||
TOTAL DECREASE IN NET ASSETS
|
(1,763,662 | ) | (1,549,200 | ) | (77,478 | ) | ||||||
NET ASSETS
|
||||||||||||
Beginning of period
|
19,692,942 | 21,242,142 | 21,319,620 | |||||||||
End of period
|
$ | 17,929,280 | $ | 19,692,942 | $ | 21,242,142 | ||||||
DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME
|
$ | (279,013 | ) | $ | (187,551 | ) | $ | (60,990 | ) | |||
CAPITAL SHARE ACTIVITY
|
||||||||||||
Shares sold
|
84,930 | 125,933 | 383,651 | |||||||||
Shares reinvested
|
15,457 | 72,122 | 135,025 | |||||||||
Shares redeemed
|
(254,957 | ) | (372,758 | ) | (427,488 | ) | ||||||
Net increase (decrease) in shares outstanding
|
(154,570 | ) | (174,703 | ) | 91,188 | |||||||
Shares outstanding at beginning of period
|
1,892,828 | 2,067,531 | 1,976,343 | |||||||||
Shares outstanding at end of period
|
1,738,258 | 1,892,828 | 2,067,531 |
(a)
|
Fund changed fiscal year end to June 30.
|
Six Months
Ended
Dec. 31,
2012
|
Years Ended June 30,
|
|||||||||||||||||||||||
(Unaudited)
|
2012
|
2011
|
2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at
beginning of period
|
$ | 12.70 | $ | 12.18 | $ | 9.18 | $ | 8.00 | $ | 10.80 | $ | 12.34 | ||||||||||||
Income (loss) from
investment operations:
|
||||||||||||||||||||||||
Net investment income
|
0.09 | 0.19 | 0.18 | 0.17 | 0.21 | 0.18 | ||||||||||||||||||
Net realized and unrealized
gains (losses) on
investments
|
0.34 | 0.52 | 3.00 | 1.18 | (2.80 | ) | (1.54 | ) | ||||||||||||||||
Total from investment operations
|
0.43 | 0.71 | 3.18 | 1.35 | (2.59 | ) | (1.36 | ) | ||||||||||||||||
Less distributions from:
|
||||||||||||||||||||||||
Net investment income
|
(0.09 | ) | (0.19 | ) | (0.18 | ) | (0.17 | ) | (0.21 | ) | (0.18 | ) | ||||||||||||
Net asset value at end of period
|
$ | 13.04 | $ | 12.70 | $ | 12.18 | $ | 9.18 | $ | 8.00 | $ | 10.80 | ||||||||||||
Total return (a)
|
3.35% | (b) | 5.90% | 34.73% | 16.82% | (24.06% | ) | (11.13% | ) | |||||||||||||||
Net assets at end of period (000’s)
|
$ | 88,824 | $ | 49,416 | $ | 45,386 | $ | 31,115 | $ | 27,590 | $ | 34,549 | ||||||||||||
Ratios/supplementary data:
|
||||||||||||||||||||||||
Ratio of net expenses to
average net assets (c)
|
1.18% | (d) | 1.27% | 1.33% | 1.40% | 1.40% | 1.31% | |||||||||||||||||
Ratio of net investment income
to average net assets
|
1.63% | (d) | 1.57% | 1.59% | 1.76% | 2.45% | 1.48% | |||||||||||||||||
Portfolio turnover rate
|
38% | (b) | 9% | 15% | 13% | 21% | 13% |
(a)
|
Total return is a measure of the change in value of an investment in the Fund over the period covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
(b)
|
Not annualized.
|
(c)
|
Absent voluntary fee waivers by the Fund’s investment adviser, the ratio of total expenses to average net assets would have been 1.42% and 1.50% for the years ended June 30, 2010 and 2009, respectively.
|
(d)
|
Annualized.
|
Three
Months
Ended
Dec. 31,
2012(a)
|
Years Ended September 30,
|
|||||||||||||||||||||||
(Unaudited)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||||||
Net asset value at
beginning of period
|
$ | 10.40 | $ | 10.27 | $ | 10.79 | $ | 10.33 | $ | 9.20 | $ | 9.73 | ||||||||||||
Income (loss) from
investment operations:
|
||||||||||||||||||||||||
Net investment income
|
0.03 | 0.21 | 0.28 | 0.33 | 0.39 | 0.42 | ||||||||||||||||||
Net realized and unrealized
gains (losses) on
investments
|
(0.03 | ) | 0.31 | (0.09 | ) | 0.55 | 1.09 | (0.50 | ) | |||||||||||||||
Total from investment operations
|
0.00 | (b) | 0.52 | 0.19 | 0.88 | 1.48 | (0.08 | ) | ||||||||||||||||
Less distributions from:
|
||||||||||||||||||||||||
Net investment income
|
(0.09 | ) | (0.39 | ) | (0.46 | ) | (0.38 | ) | (0.35 | ) | (0.45 | ) | ||||||||||||
Net realized gains
|
— | — | (0.25 | ) | (0.04 | ) | — | — | ||||||||||||||||
Total distributions
|
(0.09 | ) | (0.39 | ) | (0.71 | ) | (0.42 | ) | (0.35 | ) | (0.45 | ) | ||||||||||||
Net asset value at end of period
|
$ | 10.31 | $ | 10.40 | $ | 10.27 | $ | 10.79 | $ | 10.33 | $ | 9.20 | ||||||||||||
Total return (c)
|
0.04% | (d) | 5.07% | 1.87% | 8.74% | 16.53% | (0.90% | ) | ||||||||||||||||
Net assets at end of period (000’s)
|
$ | 17,929 | $ | 19,693 | $ | 21,242 | $ | 21,320 | $ | 17,199 | $ | 15,211 | ||||||||||||
Ratios/supplementary data:
|
||||||||||||||||||||||||
Ratio of net expenses to
average net assets (e)
|
1.31% | (f) | 1.52% | 1.28% | 1.33% | 1.48% | 1.05% | |||||||||||||||||
Ratio of net investment income
to average net assets
|
1.50% | (f) | 2.03% | 2.51% | 3.20% | 4.11% | 4.30% | |||||||||||||||||
Portfolio turnover rate
|
16% | (d) | 53% | 83% | 75% | 100% | 106% |
(a)
|
Fund changed fiscal year end to June 30.
|
(b)
|
Amount rounds to less than a penny per share.
|
(c)
|
Total return is a measure of the change in value of an investment in the Fund over the period covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
(d)
|
Not annualized.
|
(e)
|
Absent voluntary fee waivers by the Fund’s investment adviser, the ratio of total expenses to average net assets would have been 1.56% and 1.24% for the years ended September 30, 2009 and 2008, respectively.
|
(f)
|
Annualized.
|
1.
|
Organization
|
2.
|
Significant Accounting Policies
|
Cutler Equity Fund
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Common Stocks
|
$ | 86,116,908 | $ | — | $ | — | $ | 86,116,908 | ||||||||
Money Market Funds
|
2,611,664 | — | — | 2,611,664 | ||||||||||||
Total
|
$ | 88,728,572 | $ | — | $ | — | $ | 88,728,572 |
Cutler Income Fund
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
U.S. Treasury Obligations
|
$ | — | $ | 3,014,195 | $ | — | $ | 3,014,195 | ||||||||
U.S. Government Agency Obligations
|
— | 3,338,200 | — | 3,338,200 | ||||||||||||
Other Government Obligations
|
— | 874,172 | — | 874,172 | ||||||||||||
Mortgage-Backed Securities
|
— | 787,450 | — | 787,450 | ||||||||||||
Asset-Backed Securities
|
— | 1,329,185 | — | 1,329,185 | ||||||||||||
Corporate Bonds
|
— | 7,675,134 | — | 7,675,134 | ||||||||||||
Preferred Stocks
|
223,200 | — | — | 223,200 | ||||||||||||
Money Market Funds
|
544,070 | — | — | 544,070 | ||||||||||||
Total
|
$ | 767,270 | $ | 17,018,336 | $ | — | $ | 17,785,606 |
Period Ended
|
Ordinary
Income
|
Long-Term Capital Gains
|
Total Distributions
|
|||||||||
12/31/2012
|
$ | 161,959 | $ | — | $ | 161,959 | ||||||
9/30/2012
|
$ | 759,169 | $ | — | $ | 759,169 | ||||||
9/30/2011
|
$ | 1,164,984 | $ | 256,511 | $ | 1,421,495 |
|
Cutler Equity
Fund
|
Cutler Income
Fund
|
||||||
Tax cost of portfolio investments
|
$ | 75,087,112 | $ | 17,347,082 | ||||
Gross unrealized appreciation
|
$ | 15,105,969 | $ | 555,061 | ||||
Gross unrealized depreciation
|
(1,464,509 | ) | (116,537 | ) | ||||
Net unrealized appreciation on investments
|
13,641,460 | 438,524 | ||||||
Accumulated ordinary income
|
8,760 | 3,141 | ||||||
Capital loss carryforwards
|
(10,985,374 | ) | (173,967 | ) | ||||
Other gains
|
3,360,788 | 125,351 | ||||||
Other temporary differences
|
(3,827 | ) | (2,604 | ) | ||||
Accumulated earnings
|
$ | 6,021,807 | $ | 390,445 |
3.
|
Transactions with Affiliates
|
4.
|
Securities Transactions
|
5.
|
Contingencies and Commitments
|
6.
|
Subsequent Events
|
Cutler Equity Fund
|
Beginning
Account Value
July 1, 2012
|
Ending
Account Value
December 31, 2012
|
Expenses Paid
During Period*
|
Based on Actual Fund Return
|
$ 1,000.00
|
$ 1,033.50
|
$ 6.03
|
Based on Hypothetical 5% Return (before expenses)
|
$ 1,000.00
|
$ 1,019.20
|
$ 5.99
|
*
|
Expenses are equal to the Cutler Equity Fund’s annualized expense ratio of 1.18% for the period, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
|
Cutler Income Fund
|
Beginning
Account Value
July 1, 2012
|
Ending
Account Value
December 31, 2012
|
Expenses Paid
During Period*
|
Based on Actual Fund Return
|
$ 1,000.00
|
$ 1,011.90
|
$ 8.60
|
Based on Hypothetical 5% Return (before expenses)
|
$ 1,000.00
|
$ 1,016.59
|
$ 8.62
|
*
|
Expenses are equal to the Cutler Income Fund’s annualized expense ratio of 1.70% for the period, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
|
PRIVACY NOTICE
|
|||
FACTS
|
WHAT DOES THE CUTLER TRUST DO WITH YOUR PERSONAL INFORMATION?
|
||
Why?
|
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
|
||
What?
|
The types of personal information we collect and share depend on the product or service you have with us. This information can include:
§ Social Security number
§ Assets
§ Retirement Assets
§ Transaction History
§ Checking Account Information
§ Purchase History
§ Account Balances
§ Account Transactions
§ Wire Transfer Instructions
When you are no longer our customer, we continue to share your information as described in this notice.
|
||
How?
|
All financial companies need to share your personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons The Cutler Trust chooses to share; and whether you can limit this sharing.
|
||
Reasons we can share your personal information
|
Does The Cutler
Trust share?
|
Can you limit
this sharing?
|
|
For our everyday business purposes –
Such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus
|
Yes
|
No
|
|
For our marketing purposes –
to offer our products and services to you
|
No
|
We don’t share
|
|
For joint marketing with other financial companies
|
No
|
We don’t share
|
|
For our affiliates’ everyday business purposes –
information about your transactions and experiences
|
No
|
We don’t share
|
|
For our affiliates’ everyday business purposes –
information about your creditworthiness
|
No
|
We don’t share
|
|
For nonaffiliates to market to you
|
No
|
We don’t share
|
|
Questions?
|
Call 1-888-288-5374
|
Who we are
|
|
Who is providing this notice?
|
The Cutler Trust
Ultimus Fund Distributors, LLC (Distributor)
Ultimus Fund Solutions, LLC (Administrator)
|
What we do
|
|
How does The Cutler Trust protect my personal information?
|
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.
|
How does The Cutler Trust collect my personal information?
|
We collect your personal information, for example, when you
§ Open an account
§ Provide account information
§ Give us your contact information
§ Make deposits or withdrawals from your account
§ Make a wire transfer
§ Tell us where to send the money
§ Tell us who receives the money
§ Show your government-issued ID
§ Show your driver’s license
We also collect your personal information from other companies.
|
Why can’t I limit all sharing?
|
Federal law gives you the right to limit only
§ Sharing for affiliates’ everyday business purposes – information about your creditworthiness
§ Affiliates from using your information to market to you
§ Sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing.
|
Definitions
|
|
Affiliates
|
Companies related by common ownership or control. They can be financial and nonfinancial companies.
§ Cutler Investment Counsel, LLC, the investment adviser to The Cutler Trust, could be deemed to be an affiliate.
|
Nonaffiliates
|
Companies not related by common ownership or control. They can be financial and nonfinancial companies
§ The Cutler Trust does not share with nonaffiliates so they can market to you.
|
Joint marketing
|
A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
§ The Cutler Trust does not jointly market.
|
Item 2.
|
Code of Ethics.
|
Item 3.
|
Audit Committee Financial Expert.
|
Item 4.
|
Principal Accountant Fees and Services.
|
Item 5.
|
Audit Committee of Listed Registrants.
|
Item 6.
|
Schedule of Investments.
|
(a)
|
Not applicable [schedule filed with Item 1]
|
(b)
|
Not applicable
|
Item 7.
|
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
|
Item 8.
|
Portfolio Managers of Closed-End Management Investment Companies.
|
Item 9.
|
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
|
Item 10.
|
Submission of Matters to a Vote of Security Holders.
|
Item 11.
|
Controls and Procedures.
|
Item 12.
|
Exhibits.
|
Exhibit 99.CERT
|
Certifications required by Rule 30a-2(a) under the Act
|
Exhibit 99.906CERT
|
Certifications required by Rule 30a-2(b) under the Act
|
By (Signature and Title)*
|
/s/ Erich M. Patten
|
||
Erich M. Patten, President
|
|||
Date
|
March 5, 2013
|
||
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/ Erich M. Patten
|
||
Erich M. Patten, President
|
|||
Date
|
March 5, 2013
|
||
By (Signature and Title)*
|
/s/ Matthew C. Patten
|
||
Matthew C. Patten, Treasurer
|
|||
Date
|
March 5, 2013
|
Date: March 5, 2013
|
/s/ Erich M. Patten
|
|
Erich M. Patten, President
|
Date: March 5, 2013
|
/s/ Matthew C. Patten
|
|
Matthew C. Patten, Treasurer
|
|
1.
|
The Registrant’s periodic report on Form N-CSR for the period ended December 31, 2012 (the “Form N-CSR”) fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
2.
|
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
CHIEF EXECUTIVE OFFICER
|
CHIEF FINANCIAL OFFICER
|
|
The Cutler Trust
|
The Cutler Trust
|
|
/s/ Erich M. Patten
|
/s/ Matthew C. Patten
|
|
Erich M. Patten, President
|
Matthew C. Patten, Treasurer
|
|
Date: March 5, 2013
|
Date: March 5, 2013
|