N-CSR 1 d787769dncsr.htm TIMOTHY PLAN FAMILY OF FUNDS Timothy Plan Family of Funds

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     811-08228                                                                                                  

The Timothy Plan                                                                                                                          

(Exact name of registrant as specified in charter)

1055 Maitland Center Commons, Maitland, FL 32751                                                                                      

                (Address of principal executive offices)                 (Zip code)

Art Ally, The Timothy Plan                                                                                      

1055 Maitland Center Commons, Maitland, FL 32751

(Name and address of agent for service)

Registrant’s telephone number, including area code:            800-846-7526                                                     

Date of fiscal year end:  9/30

Date of reporting period: 9/30/14

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Registrant’s audited annual financial reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 are as follows:

 

LOGO

Letter from the President

September 30, 2014

Arthur D. Ally

 

 

Dear Fellow Shareholder,

As you review the important information that each of our sub-advisors have provided on the following pages, I hope you will share my satisfaction with how all of our funds have performed for our past fiscal year (10-1-13 thru 9-30-14). Of course, as you are no doubt aware, past performance does not guarantee future results.

However as I report each year, although we cannot guarantee, or even predict, future performance, I continue to believe that all of our sub-advisors are among the best in the industry. Additionally, each one continues to honor our policy of investing in strict conformity with our screening restrictions and with conservation of capital a foremost consideration.

Please find each of our sub-advisor’s annual review letters in the pages that follow. Each one discusses their respective Fund’s past performance, the reasons behind that performance, and their economic outlook for the next fiscal year.

Finally, I would once again like to thank you for your moral convictions that led you to becoming part of the Timothy Plan Family.

Yours in Christ,

 

LOGO

Arthur D. Ally

President

 

1

Letter from the Manager

September 30, 2014

Aggressive Growth Fund

 

 

The Aggressive Growth Fund Class A advanced 8.2% over the 12 months ending September 30, 2014. This compares to +14.4% for the Russell MidCap Growth Index and +8.1% for the Russell 2500 Growth Index for the same period.

The upward march of the equity markets has been quite remarkable not only for its magnitude, but also for the absence of significant corrections during the climb. Except for the reverberations from the “polar vortex” of last winter, economic growth has accelerated from the “new-normal” +/- 2% to now averaging around +3% (GDP). This step-up in growth, accompanied by unusually-low inflation and contained interest rates, has provided for the “goldilocks” environment that has buoyed stocks. The market has also taken the end of Q.E. in stride and is preparing for the Fed to start raising rates in mid/later 2015. Europe continues to provide angst, as some countries teeter on the verge of recession, and deflation looms as a risk. Between this and China “hard-landing” fears, the U.S. stands out as relatively stable. Corporate profits are strong and balance sheets have rarely been in better shape. Volatility in energy markets and the normalization of interest rates could well provide the script for the year to come.

For the portfolio, there has been no change to our time-tested, bottom up fundamental approach to managing small and mid-cap growth investments, although we have increased our turnover around market rallies and pullbacks. Our commitment to identifying quality investments at a time of unprecedented challenges is unaltered and should be rewarded as leading companies gain market share, protect margins, and manage ample capital for shareholder benefit over time.

Chartwell Investment Partners, Inc.

 

2

Fund Performance - (Unaudited)

September 30, 2014

Aggressive Growth Fund

 

 

Fund/Index   

1 Year

 

    Total Return    

   

5 Year

 

Average

 

    Annual Return    

   

10 Year

 

Average

 

    Annual Return    

      

Timothy Aggressive Growth Fund - Class A (With Sales Charge)

    2.31%    15.35%    7.13%     

Russell Mid-Cap Growth Index

    14.43%    17.12%    10.24%     

Timothy Aggressive Growth Fund - Class C *

    6.50%    15.75%    6.96%     

Russell Mid-Cap Growth Index

    14.43%    17.12%    10.24%     

Timothy Aggressive Growth Fund - Class I

    8.43%    N/A    8.65%    (a)

Russell Mid-Cap Growth Index

    14.43%    17.12%    13.30%    (a)

 

(a)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

*

With Maximum Deferred Sales Charge

Timothy Plan Aggressive Growth Fund vs. Russell Mid-Cap Growth Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the Russell Mid-Cap Growth Index on September 30, 2004 and held through September 30, 2014. The Russell Mid-Cap Growth Index is a widely recognized, unmanaged index of common stock prices. Performance figures include the change in value of the stocks in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

3

Letter from the Manager

September 30, 2014

International Fund

 

 

The Fund performed well during a difficult period. Weakening economic conditions in Europe and Japan together with increased geopolitical risks induced episodes of sharp swings in equity prices and volatility during this period.

Japan’s consumption tax increase in April led to a sharp decline in economic conditions in the country that proved too difficult to overcome. With a surprise announcement to hold snap elections, PM Shinzo Abe appears to be focused on gaining momentum to delay the next round of tax increases. A sharp acceleration in the expansion of Japan’s quantitative easing that includes buying equity ETFs and REITs led to another sharp depreciation of the Yen against most major currencies. While Japan’s economy failed to gain any momentum, the UK continued to perform well while the Eurozone decelerated throughout the year. With Eurozone inflation at dangerously low levels, economic growth decelerating, and a lack of bank lending, the European Central Bank maintained the foot on the accelerator with new monetary stimulus. With the US ending its QE program while Japan and the Eurozone expand theirs, the US dollar is likely to stay stronger for longer versus these currencies leading to some positive tailwinds for exporters from the Eurozone and Japan.

The good relative performance of the Fund during this period was mostly on the back of very good stock selection but sector allocation was also positive. An underweight to the Materials sector added the most from sector allocation as commodity prices declined markedly during the period on the back of a strong dollar, weaker Chinese demand, and supply increases. The soft commodity prices, the Russian incursion into Ukraine and subsequent Western sanctions as well as mismanagement of Brazil’s economy led to underperformance of the Fund’s positions in the emerging markets. Although, strong stock selection in the Health Care, Consumer Discretionary, IT, Consumer Staples, and Industrials sectors more than offset those headwinds. Of note was the Fund’s overweight to the global auto parts sector at a time of consolidation, margin improvement, and improving auto sales as both Valeo (France) and Magna (Canada) performed well. Other positive areas included good stock selection in Japanese IT with Fujifilm and Hitachi performing well in addition to Health Care where the Fund’s European holdings benefitted from M&A activity in the sector. The best country performance for the Fund relative to the benchmark was in the UK, France, and Canada.

We remain constructive on the attractive valuations of international equities relative to US equities. With the US slowly taking away the QE punch bowl while the Eurozone and Japan add to theirs, volatility is likely to remain for global equities, interest rates, and currencies on the back of uncertain monetary conditions. We are positive on international equities and believe companies outside the US have an opportunity to begin a margin upgrade cycle over the next few years that should benefit equity prices.

Eagle Global Advisors, LLC

 

4

Fund Performance - (Unaudited)

September 30, 2014

International Fund

 

 

Fund/Index   

1 Year

 

    Total Return    

   

5 Year

 

Average

 

    Annual Return    

   

Average

 

    Annual Return    

 

Since Inception

Timothy International Fund - Class A (With Sales Charge)

    (0.99)%    3.89%    (1.01)%    (a)

MSCI EAFE Index

    1.53%    3.52%    (2.56)%    (a)

Timothy International Fund - Class C *

    2.87%    4.29%    (1.03)%    (a)

MSCI EAFE Index

    1.53%    3.52%    (2.56)%    (a)

Timothy International Fund - Class I

    4.85%    N/A    6.15%    (b)

MSCI EAFE Index

    1.53%    3.52%    5.12%    (b)

 

(a)

For the period May 3, 2007 (commencement of investment in accordance with objective) to September 30, 2014.

 

(b)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

*

With Maximum Deferred Sales Charge

Timothy Plan International Fund vs. MSCI EAFE Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the MSCI EAFE Index on May 3, 2007 and held through September 30, 2014. The MSCI EAFE Index is a widely recognized unmanaged index of equity prices and is representative of equity market performance of developed countries, excluding the U.S. and Canada. Performance figures include the change in value of the stocks in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

5

Letter from the Manager

September 30, 2014

Large/Mid Cap Growth Fund

 

 

The Large/Mid Cap Growth Fund Class A advanced 14.7% over the last 12 months ending September 30, 2014, while the return of the benchmark, the Russell 1000 Growth Index, was up 19.2% for the same period.

The upward march of the equity markets has been quite remarkable not only for its magnitude, but also for the absence of significant corrections during the climb. Except for the reverberations from the “polar vortex” of last winter, economic growth has accelerated from the “new-normal” +/- 2% to now averaging around +3% (GDP). This step-up in growth, accompanied by unusually-low inflation and contained interest rates, has provided for the “goldilocks” environment that has buoyed stocks. The market has also taken the end of Q.E. in stride and is preparing for the Fed to start raising rates in mid/later 2015. Europe continues to provide angst, as some countries teeter on the verge of recession, and deflation looms as a risk. Between this and China “hard-landing” fears, the U.S. stands out as relatively stable. Corporate profits are strong and balance sheets have rarely been in better shape. Volatility in energy markets and the normalization of interest rates could well provide the script for the year to come.

For the portfolio, there has been no change to our time-tested, bottom up fundamental approach to managing large and mid-cap growth investments, although we have increased our turnover around market rallies and pullbacks. Our commitment to identifying quality investments at a time of unprecedented challenges is unaltered and should be rewarded as leading companies gain market share, protect margins, and manage ample capital for shareholder benefit over time.

Chartwell Investment Partners, Inc.

 

6

Fund Performance - (Unaudited)

September 30, 2014

Large/Mid Cap Growth Fund

 

 

Fund/Index   

1 Year

    Total Return    

   

5 Year

Average

    Annual Return    

   

10 Year

Average

    Annual Return    

Timothy Large/Mid Cap Growth Fund - Class A (With Sales Charge)

    8.08%    13.42%    5.98%     

Russell 1000 Growth Index

    19.15%    16.50%    8.94%     

Timothy Large/Mid Cap Growth Fund - Class C *

    12.48%    13.83%    5.75%     

Russell 1000 Growth Index

    19.15%    16.50%    8.94%     

Timothy Large/Mid Cap Growth Fund - Class I

    14.66%    N/A     13.17%    (a)

Russell 1000 Growth Index

    19.15%    16.50%     17.46%    (a)

 

(a)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

*

With Maximum Deferred Sales Charge

Timothy Plan Large/Mid Cap Growth Fund vs. Russell 1000 Growth Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the Russell 1000 Growth Index on September 30, 2004 and held through September 30, 2014. The Russell 1000 Growth Index is a widely recognized, unmanaged index of common stock prices. Performance figures include the change in value of the stocks in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

7

Letter from the Manager

September 30, 2014

Small Cap Value Fund

 

 

We are pleased to provide you with our report for the Timothy Plan Small-Cap Value Fund for the twelve months ending September 30, 2014 and would like to thank you for entrusting your assets with us.

Over the past twelve months equity markets, while withstanding brief corrections, generally moved higher. Equity market gains were fueled by US economic data, new relative stability in the US fiscal situation and better than expected 4Q corporate earnings. Despite concerns about the impact of weaker emerging market economies and ongoing conflicts in the Ukraine and with global terrorism, investors remained favorable to the equity asset class. Additionally, the anticipation of reduced monetary stimulus contributed to greater market volatility throughout the fiscal year, as well as higher dispersion among stock prices. This has historically caused a differentiated performance environment that favors higher quality, fundamentally sound companies with predictable earnings growth.

For the twelve months ending September 30, 2014, the Timothy Plan Small-Cap Value Fund Class A again produced a strong return of 7.6%, while the Russell 2000 Index produced a return of 3.9%. Small caps, however, have underperformed their large cap counterparts over this time period. Investors have shown a preference for large cap over this time period and small cap Energy, a top performer in 2013, has underperformed most recently through the 3rd quarter 2014. Security selection was the primary driver of relative outperformance and centered in the Health Care, Materials & Processing, Energy and Producer Durables sectors. Top performing securities were in sectors levered to economic growth and included Trex Company, KapStone Paper and Packaging, US Silica and Synergy Resources. Materials & Processing was the largest overall driver of relative outperformance with several holdings producing returns over 50% for the last 12 months.

Security selection in Consumer Discretionary coupled with overweight allocations in the Energy and Producer Durables sectors detracted from relative performance. Consumer Discretionary holding Arctic Cat was a bottom performer on an absolute basis, after it reported lower than expected guidance for 2015 revenues and earnings. Allocations to Energy and Producer Durables also negatively impacted performance as these sectors underperformed the index as a whole.

The Small Cap Value team is focusing on well-run companies with growth prospects that are underappreciated by the marketplace. We look for companies with above average growth and strong balance sheets that are generating good cash flows and superior relative returns. We have been finding many opportunities in the Energy, Materials & Processing and Producer Durables spaces leading us to overweight positions in these sectors. In Energy, we are finding exploration and production companies with best in class production growth that are selling at or below peer group multiples. In Materials & Processing, we have found value in stocks that are tied to a housing recovery that the market is somewhat skeptical about. In the Producer Durables space, our businesses will benefit from improving economic activity, while generating strong free cash flow and earnings growth. As economic growth continues, we feel our companies are positioned to achieve higher earnings and our portfolio should perform well.

We thank you for your continued confidence in the Westwood process and investment teams and we look forward to serving your investment needs through the years ahead.

Westwood Management Corporation

 

8

Fund Performance - (Unaudited)

September 30, 2014

Small Cap Value Fund

 

 

Fund/Index   

1 Year

 

    Total Return      

   

5 Year

 

Average

 

    Annual Return    

   

10 Year

 

Average

 

Annual Return    

Timothy Small Cap Value Fund - Class A (With Sales Charge)

    1.51%    15.01%    7.73%     

Russell 2000 Index

    3.93%    14.29%    8.19%     

Timothy Small Cap Value Fund - Class C *

    5.72%    15.46%    7.53%     

Russell 2000 Index

    3.93%    14.29%    8.19%     

Timothy Small Cap Value Fund - Class I

    7.69%    N/A    9.40%    (a)

Russell 2000 Index

    3.93%    14.29%    4.77%    (a)

 

(a)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

*

With Maximum Deferred Sales Charge

Timothy Plan Small Cap Value Fund vs. Russell 2000 Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the Russell 2000 Index on September 30, 2004 and held through September 30, 2014. The Russell 2000 Index is a widely recognized, unmanaged index of common stock prices. Performance figures include the change in value of the stocks in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

9

Letter from the Manager

September 30, 2014

Large/Mid Cap Value Fund

 

 

We are pleased to provide you with our report for the Timothy Plan Large/Mid-Cap Value Fund for the twelve months ending September 30, 2014 and would like to thank you for entrusting your assets with us.

Over the past twelve months equity markets, while withstanding brief corrections, generally moved higher. Equity market gains were fueled by US economic data, new relative stability in the US fiscal situation and better than expected 4Q corporate earnings. Despite concerns about the impact of weaker emerging market economies and ongoing conflicts in the Ukraine and with global terrorism, investors remained favorable to the equity asset class. Additionally, the anticipation of reduced monetary stimulus contributed to greater market volatility throughout the fiscal year, as well as higher dispersion among stock prices. This has historically caused a differentiated performance environment that favors higher quality, fundamentally sound companies with predictable earnings growth.

For the twelve months ending September 30, 2014, the Timothy Plan Large/Mid-Cap Value Fund Class A produced a return of 16.1%, while the S&P 500 Index produced a return of 19.7%. Security selection in Technology, Consumer Discretionary and Utilities sectors aided relative performance. The Technology sector has been a strong performer and produced significant returns for the fund. Many of the fund’s top performers were in sectors such as Technology, which are levered to economic growth. Optimism aided the performance of pro-cyclical companies, such as Avago Technologies, Skyworks Solutions and Advance Auto Parts.

Security selection in Health Care, Financial Services and Materials & Processing was the largest detractor to relative performance in the prior twelve months. Index sectors Health Care outperformed the market and our holdings failed to keep pace. Individual detractors to performance in the REIT sector included HCP Inc., which traded lower as investors rotated out of REITs on interest rate fears and the impact this could have on future acquisitions. Additionally, Energy holdings such as Oasis Petroleum and Anadarko Petroleum underperformed on falling oil and gas prices.

The Timothy Plan Large/Mid-Cap Value Fund performed well in the past twelve months on an absolute basis, producing a gross total return of nearly 18% in fiscal 2014.

The team remains focused on high-quality businesses with undervalued growth prospects, high returns on invested capital, strong balance sheets, and attractive future growth rates in earnings and cash flow. From a sector standpoint, we see value in many names within the industrial area. These businesses are able to benefit from improving economic activity, while maintaining stronger free cash flow profiles than other businesses in more commoditized areas of the market. Finally, many of our technology names continue to benefit from growth in mobile. As the number of handsets continues to grow, as well as the increased content within each handset, future earnings growth remains very attractive and underappreciated by the market in our view. As a result, we believe we are well-positioned. Given the current Fed outlook, we have historically outperformed when monetary stimulus is reduced, the economy matures and investor risk appetites fall. During such periods, a portfolio filled with high-quality companies that have visible earnings growth has provided an attractive risk-adjusted return for investors.

We thank you for your continued confidence in the Westwood process and investment teams and we look forward to serving your investment needs through the years ahead.

Westwood Management Corporation

 

10

Fund Performance - (Unaudited)

September 30, 2014

Large/Mid Cap Value Fund

 

 

Fund/Index   

1 Year

 

    Total Return    

   

5 Year

 

Average

 

    Annual Return    

   

10 Year    

 

Average    

 

Annual Return    

Timothy Large/Mid Cap Value Fund - Class A (With Sales Charge)

    9.74%    13.48%    9.00%     

S&P 500 Index

    19.73%    15.70%    8.11%     

Timothy Large/Mid Cap Value Fund - Class C *

    14.26%    13.90%    8.80%     

S&P 500 Index

    19.73%    15.70%    8.11%     

Timothy Large/Mid Cap Value Fund - Class I

    16.43%    N/A    13.64%    (a)

S&P 500 Index

    19.73%    15.70%    15.62%    (a)

 

(a)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

*

With Maximum Deferred Sales Charge

Timothy Plan Large/Mid Cap Value Fund vs. S&P 500 Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the S&P 500 Index on September 30, 2004 and held through September 30, 2014. The S&P 500 Index is a widely recognized, unmanaged index of common stock prices. Performance figures include the change in value of the stocks in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

11

Letter from the Manager

September 30, 2014

Fixed Income Fund

 

 

TIMOTHY PLAN FIXED INCOME MANAGER’S COMMENTARY SEPTEMBER 2014

BARROW, HANLEY, MEWHINNEY & STRAUSS

The broad investment grade U.S. bond market as defined by the Barclays Aggregate index began the last 12 months with a yield of 2.34% and ended at 2.36% on September 30, 2014. Examining only the endpoint yields of the U. S. bond market disguises the fact that significant changes took place. Rates across the Treasury yield curve moved in quite different directions as the U.S. Treasury (UST) five year rate increased 37 basis points while the UST 30 year rate declined 49 basis points. The shorter maturity end of the UST yield curve saw rates rise as the Federal Reserve’s Quantitative Easing tapered toward an end generating market debates about the timing of the first policy rate increase. Higher short rates flattened the yield curve back toward a more normal historical relationship.

However, the decline in long rates over the past 12 months further flattened the UST yield curve and was not expected by most market participants. The past year began with U.S. economic data stronger thanks to a string of solid payroll increases and a boost in capital goods spending that led to higher long UST rates in 4Q13. However, Global economic growth slowed with persistently weak European GDP and faltering Chinese and emerging market economies leading to tepid inflation data from slumping commodity prices. Slowing global growth and lower inflation has global central banks engaging in massive monetary stimulus. These global concerns have led to demand for UST long bonds as a safe haven driving their yields lower. Even with the decline in UST rates they remain well above their developed market sovereign peers.

The yield spread sectors of the bond market, corporate and mortgage back bonds, also showed significant changes over the past 12 months. Following the improvement in the U.S. economy yield spreads to UST issues narrowed. From the beginning of the period Investment Grade Credit spreads narrowed from 141 basis points (bps) to 98 bps on June 30th generating higher returns for spread sectors. However with increased concerns over global growth and shareholder friendly actions by company managements modestly diluting bond holders interests, yield spreads widened back out to 112 bps by September 30, 2014 giving back some of the early performance gains.

The Timothy Fixed Income Fund Class A shares returned 2.64% over the 12 months ended September 30, 2014 with most of the return simply income. The Barclays Aggregate index was slightly better at 3.96% over the trailing 12 months. The portfolio’s positioning favored intermediate over long maturities in corporate bonds and higher coupon GNMA mortgages with their shorter average life which detracted from results over the past 12 months. We are keeping a close watch on the timing of the Fed’s first policy-rate increase and their decisions about what to do with a $4.4 trillion bloated balance sheet. The portfolio’s positioning remains focused on generating income consistent with a prudent level of risk.

BARROW, HANLEY, MEWHINNEY & STRAUSS

 

12

Fund Performance - (Unaudited)

September 30, 2014

Fixed Income Fund

 

 

Fund/Index   

1 Year

    Total Return    

   

5 Year

Average

    Annual Return    

   

10 Year    

Average    

Annual Return    

Timothy Fixed Income Fund - Class A (With Sales Charge)

    (1.83)%    2.02%      2.88%     

Barclays Capital U.S. Aggregate Bond Index

    3.96%    4.12%      4.62%     

Timothy Fixed Income Fund - Class C *

    1.02%    2.22%      2.59%     

Barclays Capital U.S. Aggregate Bond Index

    3.96%    4.12%      4.62%     

Timothy Fixed Income Fund - Class I

    3.16%    N/A      3.50%    (a)

Barclays Capital U.S. Aggregate Bond Index

    3.96%    4.12%      4.25%    (a)

 

(a)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

*

With Maximum Deferred Sales Charge

Timothy Plan Fixed Income Fund vs. Barclays Capital U.S. Aggregate Bond Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the Barclays Capital U.S. Aggregate Bond Index on September 30, 2004 and held through September 30, 2014. The Barclays Capital U.S. Aggregate Bond Index is a widely recognized, unmanaged index of bond prices. Performance figures include the change in value of the bonds in the index and the reinvestment of interest. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

13

Letter from the Manager

September 30, 2014

High Yield Bond Fund

 

 

TIMOTHY PLAN HIGH YIELD MANAGER’S COMMENTARY SEPTEMBER 2014

BARROW, HANLEY, MEWHINNEY & STRAUSS

The U.S. High Yield bond market as defined by the Barclays BA/B index began the last 12 months with a yield of 5.53% and ended at 5.51% on September 30, 2014. Examining only these endpoint yields disguises the fact that significant changes took place. Rates across the Treasury yield curve moved in quite different directions as the U.S. Treasury (UST) five year rate increased 37 basis points while the 30 year rate declined 49 basis points. The short maturity end of the yield curve saw rates rise as the Federal Reserve’s Quantitative Easing tapered toward an end generating market debates about the timing of the first policy rate increase. The decline in long UST rates over the past 12 months was not expected by most market participants as global economic concerns led to demand for the safety of UST long bonds driving their yields lower.

The last 12 months began with U.S. economic data mostly stronger thanks to a string of solid payroll increases and a boost in capital goods spending. Against the backdrop of a good economy, corporate earnings gains, and the search for income High Yield bonds attracted significant buyers driving yield spreads narrower starting at 392 basis points (bps) at the beginning of the period down to 272 bps by June 30th for the Barclays BA/B index. The resultant rate decline from 5.53% to 4.45% generated significant market gains, and as 3Q14 began investors were quick to sell and recognize those gains.

Increased concern in the High Yield market from slowing global growth and slumping commodity prices led to yield spreads to widen to 361 bps. In 3Q14 High Yield rates rose over 100 bps from 4.45% to 5.51% ending the 12 month period only 2 bps from where it began. Price volatility came back to the High Yield market over the past 12 months, so income was essentially the primary source of returns.

The Timothy High Yield Fund Class A shares returned 5.71% over the 12 months ended September 30, 2014 with most of the return simply income. The Barclays Ba/B (3% cap) index was modestly higher at 7.25%. The portfolio’s positioning favored the energy sector and underweighted communications\media both of which detracted slightly from results. With today’s historically low yields and economic uncertainty we are keeping a close watch on any upticks in the default rate which remains very low. The portfolio’s positioning remains focused on generating income consistent with a reasonable level of risk.

 

BARROW, HANLEY, MEWHINNEY & STRAUSS

14

Fund Performance - (Unaudited)

September 30, 2014

High Yield Bond Fund

 

 

Fund/Index   

1 Year

    Total Return    

    5 Year
Average
    Annual Return    		    Average
    Annual Return    
Since Inception

Timothy High Yield Bond Fund - Class A (With Sales Charge)

    1.08%    7.21%    4.97%    (a)

Barclays Ba/B High Yield Index

    7.25%    9.99%    7.62%    (a)

Timothy High Yield Bond Fund - Class C *

    4.00%    7.42%    4.83%    (a)

Barclays Ba/B High Yield Index

    7.25%    9.99%    7.62%    (a)

Timothy High Yield Bond Fund - Class I

    6.07%    N/A    5.33%    (b)

Barclays Ba/B High Yield Index

    7.25%    9.99%    6.46%    (b)

 

(a)

For the period May 7, 2007 (commencement of investment in accordance with objective) to September 30, 2014.

 

(b)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

  *

With Maximum Deferred Sales Charge

Timothy Plan High Yield Bond Fund vs. Barclays Ba/B High Yield Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the Barclays Ba/B High Yield Index on May 7, 2007 and held through September 30, 2014. The Barclays Ba/B High Yield Index measures the performance of bonds with Ba or B ratings. Performance figures include the change in value of the bonds in the index and the reinvestment of interest. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

15

Letter from the Manager

September 30, 2014

Israel Common Values Fund

 

 

Israel equities overall struggled during this period as economic conditions decelerated on the back of a worsening external environment and the effects of the Gaza war Operation Protective Edge. With more than 1/3 of GDP made up from exports, disappointing global trade had a negative effect on Israeli economic growth. With slowing growth, a strong currency, and declining inflation expectations, the Bank of Israel, under the new leadership of Ms. Karnit Flug, acted quickly by surprising the market with several interest rate cuts bringing the short term rate from 1.25% to 0.25% during this 12-month period. The shekel finally reacted to the lower rates and lower economic growth by depreciating sharply in the third quarter of 2014. This should lead to some relief for the Israeli export sector.

The Timothy Plan Israel Common Values Fund struggled a bit during this period mostly as a couple of screened out health care companies that are large components of the Israel TA-100 index had a great year. In spite of this, the Fund had good stock selection in Materials and Information Technology although an overweight to the IT sector detracted from performance. Moreover, an allocation to the food retail industry hurt performance as the government competition commission investigated the industry due to high food prices. On the positive front, Given Imaging, which manufactures diagnostic products for gastrointestinal disorders, was acquired leading to strong gains for the stock. Frutarom Industries, a global leading manufacturer of flavors and ingredients continued to perform well for the Fund. Other notable positive performance occurred in semiconductors with Tower Semi performing well in addition to pharmaceuticals with strong performance from Taro Pharma.

The near term prospects for global trade have deteriorated somewhat leading to signs of headwinds for the country’s GDP growth. Yet, the recent currency depreciation should alleviate some of the pressures on export companies. We remain positive on the prospects for innovation from Israeli companies translating into positive long term equity returns. While geopolitical risks have risen lately, history suggests that Israeli corporates are prepared to weather storms and come out stronger in the end.

Eagle Global Advisors, LLC

 

16

Fund Performance - (Unaudited)

September 30, 2014

Israel Common Values Fund

 

 

Fund/Index   

1 Year

    Total Return    

    Average
    Annual Return    
Since Inception

Timothy Israel Common Values Fund - Class A (With Sales Charge)

    (3.35)%    7.10%    (a)

Israel TA 100 Index

    14.31%    10.10%    (a)

Timothy Israel Common Values Fund - Class C *

    0.52%    8.31%    (a)

Israel TA 100 Index

    14.31%    10.10%    (a)

Timothy Israel Common Values Fund - Class I

    2.44%    5.39%    (b)

Israel TA 100 Index

    14.31%    15.99%    (b)

 

(a)

For the period October 12, 2011 (commencement of investment in accordance with objective) to September 30, 2014.

 

(b)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

  *

With Maximum Deferred Sales Charge

Timothy Plan Israel Common Values Fund vs. Israel Tel Aviv 100 Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the Israel TA 100 Index on October 12, 2011 and held through September 30, 2014. The Israel Tel Aviv 100 Index is an unmanaged index of equity prices representing the 100 most highly capitalized companies listed on the Tel Aviv Stock Exchange . Performance figures include the change in value of the stocks in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

17

Letter from the Manager

September 30, 2014

Defensive Strategies Fund

 

 

The Defensive Strategies Fund has been designed and managed to do what its name implies, i.e. hedge against a possible scenario of hyper-inflation which could result from our nation’s leadership’s proven unwillingness to address our core problems of too much spending, too much taxation and too many onerous government regulations. We have, therefore, built in the flexibility to either adjust to a possible risk of extreme deflation with the ability to convert our inflation sensitive assets to cash and fixed income securities that should perform well during a deflationary environment or to a more normal, traditional investment strategy. As I stated in last year’s report, although we will do our very best to be successful, we cannot guarantee results in any of these scenarios.

I would also like to point out that, since there does not exist an appropriate benchmark index with which to compare our performance, we have created a blended index comprised of roughly 1/3 each of U.S. Government TIPs, FTSE NAREIT Equity Index and Dow Jones UBS Commodity Index (the “Blended Index”). We believe this better matches the makeup of our fund than the previously used Dow Jones US Moderate 40 Index which contains no commodities.

For the fiscal year ended September 30, 2014, the Defensive Strategies Fund Class A achieved a total return of 3.06%, vs a total return of 2.58% for the Blended Index, the Fund’s benchmark. This Fund invests in four different categories of securities, each category being managed by a sub-advisers to our other Funds. The sub-advisers have provided discussions of the factors that affected their Fund’s performance, as well as their thoughts for the next fiscal year, and I encourage you to read them carefully. During the last fiscal year, we managed the Fund with a decidedly conservative bias, and we plan to continue to manage this fund conservatively as we attempt to adjust to (what could be) rapidly changing economic conditions.

While no one can predict future events, as I stated in my President’s letter, I remain confident that our sub-advisors (i.e. money management firms that manage the various sleeves of this Fund) are, in our opinion, among the best in the industry and they each continue to honor our overall policy that they manage their respective Fund sleeve both in accordance with our screening restrictions and with a conservative bias.

Finally, I would once again like to thank you for your moral convictions that led you to become part of the Timothy Plan family.

Yours in Christ,

Arthur D. Ally

Fund Advisor

 

18

Fund Performance - (Unaudited)

September 30, 2014

Defensive Strategies Fund

 

 

Fund/Index   

1 Year

    Total Return    

    Average
    Annual Return    
Since Inception

Timothy Defensive Strategies Fund - Class A (With Sales Charge)

    (2.63)%    3.93%    (a)

Dow Jones Moderately Conservative U.S. Portfolio Index

    10.73%    12.16%    (a)

Timothy Defensive Strategies Fund Blended Index (c)

    2.58%    6.42%    (a)

Timothy Defensive Strategies Fund - Class C *

    1.27%    4.37%    (a)

Dow Jones Moderately Conservative U.S. Portfolio Index

    10.73%    12.16%    (a)

Timothy Defensive Strategies Fund Blended Index (c)

    2.58%    6.42%    (a)

Timothy Defensive Strategies Fund - Class I

    3.39%    2.90%    (b)

Dow Jones Moderately Conservative U.S. Portfolio Index

    10.73%    9.31%    (b)

Timothy Defensive Strategies Fund Blended Index (c)

    2.58%    1.92%    (b)

 

(a)

For the period November 4, 2009 (commencement of investment in accordance with objective) to September 30, 2014.

 

(b)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

(c)

The Timothy Defensive Strategies Fund Blended Index reflects an unmanaged portfolio of 33% of the Barclays U.S. TIPs Index, 33% of the FTSE NAREIT ALL REITs Index and 34% of the Dow Jones Commodity Total Return Index.

 

  *

With Maximum Deferred Sales Charge

Timothy Plan Defensive Strategies Fund vs. Dow Jones Moderately Conservative U.S. Portfolio Index vs. The Timothy Defensive Strategies Fund Blended Index (c)

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares, Dow Jones Moderately Conservative U.S. Portfolio Index and the Timothy Defensive Strategies Fund Blended Index (c) on November 4, 2009 and held through September 30, 2014. The Dow Jones Moderately Conservative U.S. Portfolio Index is a widely recognized unmanaged index of stocks, bonds and cash. Performance figures include the change in value of the asset classes in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

19

Letter from the Manager

September 30, 2014

Strategic Growth Fund

 

 

Dear Strategic Growth Fund Shareholder:

The Timothy Plan Strategic Growth Fund is an asset allocation fund that invests in a number of Timothy Plan underlying funds. The allocation percentages will vary somewhat from time to time as a result of changing economic conditions, At September 30, 2014, this Fund was invested in the following underlying Timothy Plan Funds:

 

Large/Mid-Cap Growth Fund    (13.5%)    Small-Cap Value Fund    (6.25%)
Large/Mid-Cap Value Fund    (13.0%)    Aggressive Growth Fund    (5.75%)
International Fund    (15.25%)    High-Yield Bond Fund    (12.75%)
Defensive Strategies Fund    (12.5%)    Israel Common Values Fund    (5.0%)
Emerging Markets Fund    (6.0%)    Growth & Income Fund    (10.0%)

For the fiscal year ended September 30, 2014, the Strategic Growth Fund Class A achieved a total return of 6.82%, vs a total return of 9.67% for the Dow Jones Global Moderate Index, the Fund’s benchmark. This Fund’s performance is directly affected by the factors that influence the performance of each of the underlying Funds. The sub-advisers to each underlying Fund have provided discussions of the factors that affected their Fund’s performance, as well as their thoughts for the next fiscal year, and I encourage you to read them carefully. During the last fiscal year, we managed the Fund with a decidedly conservative bias, and we plan to continue to manage this fund conservatively as we attempt to adjust to (what could be) rapidly changing economic conditions.

We continue to realize that the volatility and uncertainty of the markets may have been unsettling for many investors; however as a group, although our sub-advisors expect this pattern to continue into 2015, they also expect a somewhat upward bias with respect to performance in our underlying funds.

As you know, no one can guarantee future performance. However, the one thing that I can assure you of is that every one of our sub-advisors is doing their very best and our team here at Timothy is working very hard to provide you an investment with which you can feel comfortable.

Thank you for your continued support.

Arthur D. Ally

 

20

Fund Performance - (Unaudited)

September 30, 2014

Strategic Growth Fund

 

 

Fund/Index   

1 Year

    Total Return    

    5 Year
Average
    Annual Return    		   

10 Year

Average
Annual Return    

Timothy Strategic Growth Fund - Class A (With Sales Charge)

    0.89%    7.23%    4.06%

Dow Jones Global Moderately Aggressive Portfolio Index

    9.67%    10.95%    8.01%

Timothy Strategic Growth Fund - Class C *

    5.12%    7.64%    3.85%

Dow Jones Global Moderately Aggressive Portfolio Index

    9.67%    10.95%    8.01%

 

  *

With Maximum Deferred Sales Charge

Timothy Plan Strategic Growth Fund vs. Dow Jones Global Moderately Aggressive Portfolio Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the Dow Jones Global Moderately Aggressive Portfolio Index on September 30, 2004 and held through September 30, 2014. The Dow Jones Global Moderately Aggressive Portfolio Index is a widely recognized index that measures global stocks, bonds and cash which are in turn represented by multiple sub-indexes. Performance figures include the change in value of the investments in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

21

Letter from the Manager

September 30, 2014

Conservative Growth Fund

 

 

Dear Conservative Growth Fund Shareholder:

The Timothy Plan Conservative Growth Fund is an asset allocation fund that invests in a number of Timothy Plan underlying funds. The allocation percentages will vary slightly from time to time as a result of changing economic conditions, At September 30, 2014, the Fund was invested in the following underlying Timothy Plan Funds as follows:

 

Large/Mid-Cap Growth Fund    (8.25%)    Small-Cap Value Fund    (5.25%)
Large/Mid-Cap Value Fund    (7.75%)    Aggressive Growth Fund    (2.25%)
International Fund    (10.0%)    High-Yield Bond Fund    (8.5%)
Defensive Strategies Fund    (12.0%)    Fixed Income Fund    (29.0%)
Israel Common Values Fund    (4.0%)    Growth & Income Fund    (10.0%)
Emerging Markets Fund    (3.0%)      

For the fiscal year ended September 30, 2014, the Conservative Growth Fund Class A achieved a total return of 5.23%, vs a total return of 7.93% for the Dow Jones Global Moderate Index, the Fund’s benchmark. This Fund’s performance is directly affected by the factors that influence the performance of each of the underlying Funds. The sub-advisers to each underlying Fund have provided discussions of the factors that affected their Fund’s performance, as well as their thoughts for the next fiscal year, and I encourage you to read them carefully. During the last fiscal year, we managed the Fund with a decidedly conservative bias, and we plan to continue to manage this fund conservatively as we attempt to adjust to (what could be) rapidly changing economic conditions.

We continue to realize that the volatility and uncertainty of the markets may have been unsettling for many investors; however as a group, although our sub-advisors expect this pattern to continue into 2015, they also expect a somewhat upward bias with respect to performance in our underlying funds.

As you know, no one can guarantee future performance. However, the one thing that I can assure you of is that every one of our sub-advisors is doing their very best and our team here at Timothy is working very hard to provide you an investment with which you can feel comfortable.

Thank you for your continued support.

Arthur D. Ally

 

22

Fund Performance - (Unaudited)

September 30, 2014

Conservative Growth Fund

 

 

Fund/Index   

1 Year

    Total Return    

    5 Year
Average
    Annual Return    		   

10 Year

Average
Annual Return    

Timothy Conservative Growth Fund - Class A (With Sales Charge)

    (0.45)%    5.49%    3.95%

Dow Jones Global Moderate Portfolio Index

    7.93%    9.12%    7.08%

Timothy Conservative Growth Fund - Class C *

    3.50%    5.88%    3.77%

Dow Jones Global Moderate Portfolio Index

    7.93%    9.12%    7.08%

 

  *

With Maximum Deferred Sales Charge

Timothy Plan Conservative Growth Fund vs. Dow Jones Global Moderate Portfolio Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the Dow Jones Global Moderate Portfolio Index on September 30, 2004 and held through September 30, 2014. The Dow Jones Global Moderate Portfolio Index is a widely recognized index that measures global stocks, bonds and cash which are in turn represented by multiple sub-indexes. Performance figures include the change in value of the investments in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

23

Letter from the Manager

September 30, 2014

Emerging Markets Fund

 

 

We will discuss sector-, country- and stock-specific factors that affected the Fund’s performance and describe changes in the Fund’s composition during the 12 months ended September 30th, 2014. In addition, we will share insight into how the Fund is currently positioned for the future.

The Markets

Emerging-market stocks declined in the third quarter of 2014 as the investor optimism that propelled them during the first half of the year seemed to dissipate. Fears that the U.S. Federal Reserve was moving closer to raising interest rates caused market concern about a potential repeat of last year’s sell-off and led investors to take a more cautious stance toward the asset class.

Russian equities fell on the heels of the Russia-Ukraine crisis escalation, while Brazilian stocks and currency suffered as investors’ hope of an economic reform was dimmed when President Dilma Rousseff regained popularity ahead of the upcoming presidential election.

Additionally, uncertainty over the ongoing pro-democracy protest in Hong Kong against the Chinese government further weighed on market sentiment toward emerging markets.

The Fund

As one might expect given the portfolio activity over the past year, the strategy’s allocations at the end of the third quarter were very similar to those earlier in 2014.

Allocation to companies in Russia continues to be a key investment topic. As of September 30, 2014, Russian equities, as a whole, traded at what we considered very attractive valuation multiples—lower than emerging markets as a group, or any other region/country in the world for that matter. We have maintained our holdings in Russia, and, in some cases, selectively averaged down on our positions. Additionally, as discussed earlier, we initiated a position in ITE Group, which is effectively a Russian company.

As the situation remains fluid with many unknowns, we have re-assessed the intrinsic value estimates of our holdings in Russia and are searching new opportunities there, while also considering the shorter-term implications of current or potential future sanctions. For example, Sberbank is being sanctioned by the European Union (EU) in regards to dealing with or purchasing securities issued after August 1, 2014. We continue to monitor the situation very closely. At the moment, Sberbank’s stock price seems depressed by current EU sanctions and the fear of more severe sanctions against Russia or Russian companies. Moreover, our analysis shows that the stock price also implies a very bleak scenario for Sberbank’s earnings, including margin compression on net interest income, a slowdown in loan and fee income growth, and deteriorating credit quality.

While the EU sanctions are designed to restrict Sberbank’s access to funding, Sberbank has actually low dependency on external funding, with its wholesale foreign-currency debt representing only 3% of total liabilities. Due to its systemic importance to the banking system in Russia and being approximately 51% owned by the Central Bank of Russia, Sberbank will likely have incremental access to central bank funding support if necessary.

 

24

Letter from the Manager

September 30, 2014

Emerging Markets Fund - Continued

 

 

We believe Sberbank has very attractive long-term growth prospects as the dominant retail and commercial banking franchise in Russia. We also think that the risk/reward proposition presented by Sberbank’s current stock price appears very favorable for the long-term investor.

Outlook

The number of events—and the gravity of some of them—evolving in emerging markets seemed to have led many short-term oriented investors and speculators to take on a “risk on, risk off” approach to emerging-market stocks. This can be seen in the market sentiment swings toward the asset class just over the last several months.

As long-time investors in emerging markets, however, we understand that while macroeconomic events need to be considered, they affect each emerging-market company differently. Our established global research infrastructure, which encompasses a team of analysts with extensive knowledge about their specific industries, allows us to think and invest independently from the market consensus.

Our willingness and ability to look beyond the short term give us confidence that the Brandes Emerging Market Strategy continues to offer compelling valuations and investment opportunities. As always, thank you for your business and continued trust.

Brandes Investment Partners, L.P.

 

 

This material is intended for informational purposes only. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Portfolio holdings and allocations are subject to change at any time. Strategies discussed herein are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance.

International and emerging markets investing is subject to certain risks such as currency fluctuation and social and political changes, differences in financial reporting standards and less stringent regulation of securities markets which may result in greater share price volatility; such risks are increased when investing in emerging markets. Additional risks associated with emerging markets investing include smaller-sized markets, liquidity risks, and less established legal, political, social, and business systems to support securities markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Index Guide

The MSCI Emerging Markets Index with gross dividends measures equity market performance of emerging markets.

 

25

Fund Performance - (Unaudited)

September 30, 2014

Emerging Markets Fund

 

 

Fund/Index   

1 Year

    Total Return    

    Average
    Annual Return    
Since Inception

Timothy Emerging Markets Fund - Class A (With Sales Charge)

    (4.81)%    0.07%    (a)

MSCI Emerging Markets Index

    1.81%    (0.13)%    (a)

Timothy Emerging Markets Fund - Class C *

    (1.14)%    2.45%    (a)

MSCI Emerging Markets Index

    1.81%    (0.13)%    (a)

Timothy Emerging Markets Fund - Class I

    0.81%    5.62%    (b)

MSCI Emerging Markets Index

    1.81%    4.59%    (b)

 

(a)

For the period December 3, 2012 (commencement of investment in accordance with objective) to September 30, 2014.

 

(b)

For the period August 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

  *

With Maximum Deferred Sales Charge

Timothy Plan Emerging Markets Fund vs. MSCI Emerging Markets Index

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the MSCI Emerging Markets Index on December 3, 2012 and held through September 30, 2014. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. Performance figures include the change in value of the stocks in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

26

Letter from the Manager

September 30, 2014

Growth & Income Fund

 

We are pleased to provide you with our first report for the Timothy Plan Growth and Income Fund for the period ending September 30, 2014. Like you, our company and some of our officers have invested some of corporate retirement and personal assets into the fund. We certainly thank you for entrusting your assets with us.

This is the first year of operation for the fund and it was an interesting time. Large capitalization stocks, with just a few minor setbacks, moved ahead. The same cannot be said of small capitalization stocks. They experienced a lot more volatility and didn’t make much progress. During this time bonds surprised many as longer term interest rates fell, leading to gains in those bonds. One of the major contributors to market activities was the Federal Reserve and its move to taper Quantitative Easing. This has certainly forced investors to revaluate risk and potential reward.

For the period starting 1 October 2013 through 30 September 2014, the Growth & Income Fund Class A returned 9.50%. A combination of 50% of the Russell 3000 Total Return Index and 50% Barclay’s Intermediate US/Govt Corp Index returned 9.36%. The Industrial and Basic Material sectors were the top performers while Consumer Cyclical and Utility stocks did the worst. Two of the top performers were American Railcar, which is a manufacturer of oil tanker railcars, and Trinity Industries, which supports the Energy and Transportation sectors.

This fund has two main objectives, growth and income but also the preservation of capital in declining markets. We have been managing similar assets for over 40 years. We will adjust equity and fixed income levels according to our analysis of risk. We do this on a weekly basis. Over the last year we saw lower risks in larger companies but higher risks in smaller companies. At the end of September, we actually saw over six in ten small stocks (less than $1 billion in market capitalization) in their personal bear market. That is falling 20% or more from their recent highs. At the time only about one in ten stocks in the S&P 500 were suffering in a like manner.

Our outlook has shifted some from seeing the better risk/reward opportunity moving from bonds to stocks. We don’t think interest rates will surge higher, but we think the best returns in bonds are probably behind us. At the same time, the September swoon in stocks appears to present some better opportunities for adding to equity levels. Our research points to a reasonably healthy outlook for stocks in the year ahead. However, we think volatility will tend to rise. If our research works well, this actually could give us opportunities to take advantage of these shifts.

We thank you for your trust in the James Investment Research Inc., we are grateful for the opportunity to serve you.

James Investment Research Inc.

 

27

Fund Performance - (Unaudited)

September 30, 2014

Growth & Income Fund

 

 

Fund/Index    Average
    Annual Return    
Since Inception

Timothy Growth & Income Fund - Class A (With Sales Charge)

    4.58%    (a)

Timothy Growth & Income Fund Blended Index (b)

    9.36%    (a)

Timothy Growth & Income Fund - Class C *

    7.70%    (a)

Timothy Growth & Income Fund Blended Index (b)

    9.36%    (a)

Timothy Growth & Income Fund - Class I

    9.60%    (a)

Timothy Growth & Income Fund Blended Index (b)

    9.36%    (a)

 

(a)

For the period October 1, 2013 (commencement of investment in accordance with objective) to September 30, 2014.

 

(b)

The Timothy Growth & Income Fund Blended Index reflects an unmanaged portfolio of 50% of the Barclays Intermediate Government/Credit Index and 50% of the Russell 3000 Total Return Index.

 

  *

With Maximum Deferred Sales Charge

Timothy Growth & Income Fund vs. Timothy Growth & Income Fund Blended Index (b)

 

LOGO

The chart shows the value of a hypothetical initial investment of $10,000 in the Fund’s Class A shares and the Timothy Growth & Income Fund Blended Index on October 1, 2013 and held through September 30, 2014. The Timothy Growth & Income Fund Blended Index reflects an unmanaged portfolio of 50% of the Barclays Intermediate Government/Credit Index and 50% of the Russell 3000 Total Return Index. Performance figures include the change in value of the stocks in the index and the reinvestment of dividends. The index return does not reflect expenses, which have been deducted from the Fund’s return. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.

 

28

Fund Profile

As of September 30, 2014 (Unaudited)

 

 

 

Aggressive Growth Fund

Top Ten Industries

(% of Net Assets)

Commercial Services

      12.3 % 

Banks

      8.5 % 

Diversified Financial Services

      7.7 % 

Retail

      7.3 % 

Healthcare

      7.1 % 

Software

      6.8 % 

Computers

      5.5 % 

Apparel

      4.8 % 

Oil & Natural Gas

      3.7 % 

Telecommunications

      3.7 % 

Other Assets Less Liabilities - Net

      32.6 % 
     100.0 % 

Large/Mid Cap Growth Fund

Top Ten Industries

(% of Net Assets)

Retail

      12.9 % 

Semiconductors

      10.0 % 

Oil & Natural Gas

      8.2 % 

Electronics

      6.1 % 

Software

      5.9 % 

Banks

      5.6 % 

Chemicals

      4.8 % 

Commercial Services

      4.1 % 

Food

      3.8 % 

Insurance

      3.5 % 

Other Assets Less Liabilities - Net

      35.1 % 
     100.0 % 

Large/Mid Cap Value Fund

Top Ten Industries

(% of Net Assets)

Electronics

      9.7 % 

Oil & Natural Gas

      9.4 % 

Semiconductors

      6.2 % 

Banks

      6.1 % 

Diversified Financial Services

      6.1 % 

Food

      5.8 % 

Retail

      5.1 % 

Money Market Fund

      5.1 % 

Healthcare Products

      4.0 % 

Miscellaneous Manufacturing

      3.7 % 

Other Assets Less Liabilities - Net

      38.8 % 
     100.0 % 

High Yield Bond Fund

Top Ten Industries

(% of Net Assets)

Corporate Bonds

      97.4 % 

Money Market Fund

      1.5 % 

Other Assets Less Liabilities - Net

      1.1 % 
     100.0 % 

International Fund

Top Ten Industries

(% of Net Assets)

Banks

      12.6 % 

Automotive

      8.8 % 

Insurance

      8.8 % 

Healthcare

      8.6 % 

Food

      5.8 % 

Money Market Fund

      5.1 % 

Oil & Natural Gas

      4.8 % 

Pharmaceutical

      4.7 % 

Diversified Financial Services

      4.6 % 

Telecommunications

      4.4 % 

Other Assets Less Liabilities - Net

      31.8 % 
     100.0 % 

Small Cap Value Fund

Top Ten Industries

(% of Net Assets)

Banks

      14.8 % 

Oil & Natural Gas

      9.3 % 

REITs

      8.9 % 

Building Materials

      7.9 % 

Machinery

      5.2 % 

Healthcare

      4.3 % 

Insurance

      4.2 % 

Electric

      3.9 % 

Retail

      3.9 % 

Transportation

      3.9 % 

Other Assets Less Liabilities - Net

      33.7 % 
     100.0 % 

Fixed Income Fund

Top Ten Industries

(% of Net Assets)

Corporate Bonds

      39.8 % 

Government Mortgage - Backed Securities

      28.8 % 

Government Notes & Bonds

      27.3 % 

Money Market Fund

      3.7 % 

Other Assets Less Liabilities - Net

      0.4 % 
     100.0 % 

Israel Common Values Fund

Top Ten Industries

(% of Net Assets)

Oil & Natural Gas

      11.9 % 

Real Estate

      11.2 % 

Telecommunications

      10.8 % 

Banks

      10.3 % 

Software

      8.8 % 

Semiconductors

      6.7 % 

Pharmaceuticals

      5.0 % 

Food

      4.5 % 

Chemicals

      4.3 % 

Electronics

      4.2 % 

Other Assets Less Liabilities - Net

      22.3 % 
     100.0 % 
 

 

29

Fund Profile (Continued)

As of September 30, 2014 (Unaudited)

 

 

 

Defensive Strategies Fund

Top Ten Industries

(% of Net Assets)

REITs

      30.0 % 

TIPS

      25.2 % 

Oil & Natural Gas

      8.5 % 

Exchange Traded Funds

      8.4 % 

Mining

      6.6 % 

Chemicals

      5.5 % 

Money Market Fund

      4.8 % 

Corporate Bonds

      3.3 % 

Government Mortgage - Backed Securities

      2.8 % 

Oil & Gas Services

      1.9 % 

Other Assets Less Liabilities - Net

      3.0 % 
     100.0 % 

Conservative Growth Fund

Top Ten Industries

(% of Net Assets)

Mutual Funds

      99.7 % 

Money Market Fund

      0.3 % 
     100.0 % 

Growth & Income Fund

Top Ten Industries

(% of Net Assets)

Government Notes & Bonds

      49.0 % 

Money Market Fund

      6.5 % 

Commercial Services

      5.7 % 

Oil & Natural Gas

      5.7 % 

Insurance

      5.2 % 

Chemicals

      4.3 % 

Electric

      2.6 % 

Retail

      2.3 % 

Auto Parts & Equipment

      2.2 % 

Miscellaneous Manufacturing

      2.1 % 

Other Assets Less Liabilities - Net

      14.4 % 
     100.0 % 

Strategic Growth Fund

Top Ten Industries

(% of Net Assets)

Mutual Funds

      100.3 % 

Other Assets Less Liabilities - Net

      (0.3 %) 
     100.0 % 

 

 

Emerging Markets Fund

Top Ten Industries

(% of Net Assets)

Banks

      14.4 % 

Food

      7.2 % 

Retail

      7.2 % 

Electric

      6.6 % 

Diversified Financial Services

      6.4 % 

Oil & Natural Gas

      6.3 % 

Iron/Steel

      5.2 % 

Automotive

      4.7 % 

Preferred Stock

      4.7 % 

Reits

      4.0 % 

Other Assets Less Liabilities - Net

      33.3 % 
     100.0 % 
 

 

30

Schedule of Investments  |  Aggressive Growth

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

COMMON STOCK - 96.2 %

   
 

APPAREL - 4.8 %

   
2,725  

Carter’s, Inc.

      $             211,242   
1,330  

Hanesbrands, Inc.

      142,895   
17,560  

Steven Madden Ltd. *

      565,959   
2,710  

VF Corp.

      178,941   
    

 

 

  
       1,099,037   
    

 

 

  
 

BANKS - 8.5 %

   
4,280  

Cardinal Financial Corp.

      73,059   
19,975  

First Horizon National Corp.

      245,293   
3,670  

First NBC Bank Holding Co. *

      120,193   
3,700  

PacWest Bancorp.

      152,551   
8,465  

Popular, Inc. *

      249,167   
11,745  

PrivateBancorp, Inc.

      351,293   
32,079  

Synovus Financial Corp.

      758,348   
    

 

 

  
       1,949,904   
    

 

 

  
 

BIOTECHNOLOGY - 2.0 %

   
695  

Alexion Pharmaceuticals, Inc. *

      115,245   
1,800  

BioMarin Pharmaceutical, Inc. *

      129,888   
3,030  

Incyte Corp. Ltd. *

      148,622   
2,845  

MacroGenics, Inc. *

      59,461   
    

 

 

  
       453,216   
    

 

 

  
 

COMMERCIAL SERVICES - 12.3 %

   
2,900  

Advisory Board Co. *

      135,111   
2,490  

Cardtronics, Inc. *

      87,648   
1,150  

DeVry Education Group, Inc.

      49,232   
2,270  

Euronet Worldwide, Inc. *

      108,483   
1,179  

FleetCor Technologies, Inc. *

      167,559   
3,050  

H&E Equipment Services, Inc.

      122,854   
5,655  

Heartland Payment Systems, Inc.

      269,856   
24,210  

Information Services Group, Inc. *

      91,998   
2,195  

MAXIMUS, Inc.

      88,085   
3,255  

Monro Muffler Brake, Inc.

      157,965   
10,740  

SEI Investments Co.

      388,358   
1,575  

United Rentals, Inc. *

      174,983   
6,525  

Vantiv, Inc. - Cl. A *

      201,623   
34,170  

WNS Holdings Ltd. - Cl. A *

      769,167   
    

 

 

  
       2,812,922   
    

 

 

  
 

COMPUTERS - 5.5 %

   
6,595  

Cognizant Technology Solutions Corp. *

      295,258   
8,625  

Electronics For Imaging, Inc. *

      380,966   
2,605  

iGATE Corp. *

      95,655   
1,550  

IHS, Inc. - Cl. A *

      194,045   
2,080  

Manhattan Associates, Inc. *

      69,513   
1,967  

NetScout Systems, Inc. *

      90,088   
3,775  

VeriFone Systems, Inc. *

      129,785   
    

 

 

  
       1,255,310   
    

 

 

  
 

COSMETICS/PERSONAL CARE - 0.6 %

   
5,400  

Inter Parfums, Inc.

      148,500   
    

 

 

  
 

DISTRIBUTION/WHOLESALE - 1.5 %

   
4,295  

Wesco International, Inc. *

      336,127   
    

 

 

  
 

DIVERSIFIED FINANCIAL SERVICES - 7.7 %

   
24,020  

Cowen Group, Inc. *

      90,075   
8,835  

E*TRADE Financial Corp. *

      199,582   
6,400  

Encore Capital Group, Inc. *

      283,584   
2,975  

Evercore Partners, Inc. - Cl. A

      139,825   
2,980  

IntercontinentalExchange Group, Inc.

      581,249   
10,880  

Invesco Ltd.

      429,542   
800  

MarketAxess Holdings, Inc.

      49,488   
    

 

 

  
       1,773,345   
    

 

 

  
 

ELECTRICAL - 0.4 %

   
675  

Acuity Brands, Inc.

      79,454   
    

 

 

  
 

ELECTRONICS - 2.7 %

   
430  

Mettler-Toledo International, Inc. *

      110,136   
2,895  

Thermo Fisher Scientific, Inc.

      352,322   
4,785  

Trimble Navigation Ltd. *

      145,943   
    

 

 

  
       608,401   
    

 

 

  

 

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

 

31

Schedule of Investments  |  Aggressive Growth (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

ENVIRONMENTAL CONTROL - 1.2 %

  

2,310  

MSA Safety, Inc.

      $             114,114   
3,060  

Waste Connections, Inc.

      148,471   
    

 

 

  
       262,585   
    

 

 

  
 

FOOD - 1.1 %

   
2,515  

Hain Celestial Group, Inc. *

      257,410   
    

 

 

  
 

HEALTHCARE - 7.1 %

   
14,425  

Bruker biosciences Corp. *

      267,079   
4,700  

Globus Medical, Inc. - Cl. A *

      92,449   
4,580  

ICON PLC *

      262,113   
1,350  

IPC The Hospitalist Co., Inc. *

      60,467   
2,450  

LDR Holding Corp. *

      76,269   
3,225  

NuVasive, Inc. *

      112,455   
5,475  

Spectranetics Corp *

      145,471   
12,195  

Tornier NV *

      291,461   
3,375  

Trinity Biotech PLC

      61,661   
8,605  

Wright Medical Group, Inc. *

      260,732   
    

 

 

  
       1,630,157   
    

 

 

  
 

HOLDING COMPANIES - 0.6 %

  

11,330  

Horizon Pharma Plc *

      139,132   
    

 

 

  
 

HOME BUILDERS - 0.9 %

   
5,155  

Lennar Corp.

      200,168   
    

 

 

  
 

INSURANCE - 2.7 %

   
12,475  

Assured Guaranty Ltd.

      276,446   
23,868  

Radian Group, Inc.

      340,358   
    

 

 

  
       616,804   
    

 

 

  
 

INTERNET - 2.8 %

   
3,950  

Endurance International Group Holdings, Inc. *

      64,266   
16,725  

Move, Inc. *

      350,556   
4,200  

SPS Commerce, Inc. *

      223,230   
    

 

 

  
       638,052   
    

 

 

  
 

LEISURE - 2.4 %

   
12,775  

Brunswick Corp.

      538,338   
    

 

 

  
 

MACHINERY-DIVERSIFIED - 2.0 %

  

5,220  

Columbus McKinnon Corp.

      114,788   
2,495  

Flowserve Corp.

      175,947   
2,250  

Nordson Corp.

      171,158   
    

 

 

  
       461,893   
    

 

 

  
 

METAL FABRICATE/HARDWARE - 0.6 %

  

4,970  

Rexnord Corp. *

      141,397   
    

 

 

  
 

MISCELLANEOUS MANUFACTURING - 1.2 %

  

3,075  

Hexcel Corp. *

      122,078   
5,995  

TriMas Corp. *

      145,858   
    

 

 

  
       267,936   
    

 

 

  
 

OIL & NATURAL GAS - 3.7 %

  

6,780  

Cabot Oil & Gas Corp. - Cl. A

      221,638   
2,300  

Carrizo Oil & Gas, Inc. *

      123,786   
10,900  

Kodiak Oil & Gas Corp. *

      147,913   
17,359  

Rex Energy Corp. *

      219,939   
1,600  

Whiting Petroleum Corp. *

      124,080   
    

 

 

  
       837,356   
    

 

 

  
 

PHARMACEUTICALS - 1.7 %

   
6,517  

Akorn, Inc. *

      236,371   
1,865  

Catamaran Corp. *

      78,609   
475  

Salix Pharmaceuticals Ltd. *

      74,214   
    

 

 

  
       389,194   
    

 

 

  
 

REAL ESTATE - 0.9 %

   
7,455  

HFF, Inc. - Cl. A

      215,822   
    

 

 

  

 

 

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

32

Schedule of Investments  |  Aggressive Growth (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

RETAIL - 7.3 %

   
3,150  

Advance Auto Parts, Inc.

      $             410,445   
4,900  

Cheesecake Factory, Inc.

      222,950   
3,535  

Del Frisco’s Restaurant Group, Inc. *

      67,660   
3,890  

DSW, Inc. - Cl. A

      117,128   
6,545  

Express, Inc. *

      102,167   
1,200  

Fiesta Restaurant Group, Inc. *

      59,616   
1,600  

Five Below, Inc. *

      63,376   
4,470  

Krispy Kreme Doughnuts, Inc. *

      76,705   
1,445  

Men’s Wearhouse, Inc.

      68,233   
6,025  

Rush Enterprises, Inc. *

      201,536   
5,485  

Sonic Corp. *

      122,645   
2,350  

Tractor Supply Co.

      144,549   
    

 

 

  
       1,657,010   
    

 

 

  
 

SEMICONDUCTORS - 2.4 %

   
1,650  

Avago Technologies Ltd.

      143,550   
4,375  

Cypress Semiconductor Corp.

      43,203   
3,275  

NXP Semiconductor NV *

      224,108   
5,305  

Semtech Corp. *

      144,031   
    

 

 

  
       554,892   
    

 

 

  
 

SOFTWARE - 6.8 %

   
6,865  

Aspen Technology, Inc. *

      258,948   
5,450  

Cerner Corp. *

      324,657   
2,500  

Informatica Corp. *

      85,600   
1,700  

Interactive Intelligence Group, Inc. *

      71,060   
1,850  

Proofpoint, Inc. *

      68,709   
7,775  

PTC, Inc. *

      286,898   
3,200  

SS&C Technologies Holdings, Inc. *

      140,448   
2,060  

Synchronoss Technologies, Inc. *

      94,307   
2,575  

Tyler Technologies, Inc. *

      227,630   
    

 

 

  
       1,558,257   
    

 

 

  
 

TELECOMMUNICATIONS - 3.7 %

   
11,660  

8x8, Inc. *

      77,889   
4,370  

CalAmp Corp. *

      76,999   
4,450  

Polycom, Inc. *

      54,668   
5,795  

SBA Communications Corp. - Cl. A *

      642,666   
    

 

 

  
       852,222   
    

 

 

  
 

TRANSPORTATION - 1.1 %

   
1,000  

Genesee & Wyoming, Inc. - Cl. A *

      95,310   
7,455  

Swift Transportation Co. - Cl. A *

      156,406   
    

 

 

  
       251,716   
    

 

 

  
 

TOTAL COMMON STOCK (Cost - $19,530,931)

      21,986,557   
    

 

 

  
 

MASTER LIMITED PARTNERSHIPS - 2.0%

   
8,925  

Lazard Ltd. - Cl. A (Cost $406,753)

      452,498   
    

 

 

  
 

REITs - 0.4 %

   
9,125  

Lexington Realty Trust - REIT (Cost $102,281)

      89,334   
    

 

 

  
 

MONEY MARKET FUND - 1.6 %

   
377,838  

Fidelity Institutional Money Market Portfolio, 0.01% (Cost $377,838)(A)

      377,838   
    

 

 

  
 

TOTAL INVESTMENTS - 100.2 % (Cost - $20,417,803)(B)

      $ 22,906,227   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - (0.2) %

      (40,090)   
    

 

 

  
 

NET ASSETS - 100.0%

      $ 22,866,137   
    

 

 

  

* Non-income producing securities

REIT - Real Estate Investment Trust

(A) Variable rate security; the rate shown represents the yield at September 30, 2014.

(B) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $20,432,944 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

  

  

  

   

  Unrealized appreciation      $ 3,058,426   
  Unrealized depreciation      (585,143 ) 
    

 

 

  
  Net unrealized appreciation      $ 2,473,283   
    

 

 

  

 

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

33

Schedule of Investments  |  International

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

COMMON STOCK - 94.5 %

   
 

AIRLINES - 1.6 %

   
9,000  

Copa Holdings SA - Cl. A

      $             965,610   
    

 

 

  
 

AUTO MANUFACTURERS - 1.3 %

   
93,000  

Porsche Automobil Holding SE (ADR)

      739,350   
    

 

 

  
 

AUTOMOTIVE - 8.8 %

   
27,500  

Continental AG (ADR)

      1,041,425   
20,100  

Magna International, Inc.

      1,907,691   
39,700  

Valeo SA (ADR)

      2,203,350   
    

 

 

  
       5,152,466   
    

 

 

  
 

BANKS - 12.6 %

   
30,000  

Bank Hapoalim BM (ADR)

      847,200   
197,000  

Bank of East Asia Ltd. (ADR)

      783,469   
29,439  

DBS Group Holdings Ltd. (ADR)

      1,701,574   
23,300  

ICICI Bank Ltd. (ADR)

      1,144,030   
49,100  

Intesa Sanpaolo SpA (ADR)

      886,992   
172,200  

Sumitomo Mitsui Financial Group, Inc. (ADR)

      1,412,040   
24,100  

Swedbank AB (ADR)

      604,669   
    

 

 

  
       7,379,974   
    

 

 

  
 

BUILDING MATERIALS - 1.5 %

   
49,000  

Lafarge SA (ADR)

      882,000   
    

 

 

  
 

CHEMICALS - 0.6 %

   
4,000  

Agrium, Inc.

      356,000   
    

 

 

  
 

DIVERSIFIED FINANCIAL SERVICES - 4.6 %

   
116,500  

Daiwa Securities Group, Inc. (ADR)

      921,515   
25,900  

ORIX Corp. (ADR)

      1,787,100   
    

 

 

  
       2,708,615   
    

 

 

  
 

ELECTRIC POWER- 3.6 %

   
91,300  

Cia Energetica de Minas Gerais (ADR) *

      568,799   
23,300  

Huaneng Power International, Inc. (ADR)

      1,017,278   
59,900  

Power Assets Holdings Ltd. (ADR)

      524,125   
    

 

 

  
       2,110,202   
    

 

 

  
 

ELECTRICAL - 2.1 %

   
16,100  

Hitachi Ltd. (ADR)

      1,231,650   
    

 

 

  
 

ELECTRONICS - 1.0 %

   
36,000  

Orbotech Ltd. *

      560,880   
    

 

 

  
 

ENGINEERING & CONSTRUCTION - 2.2 %

   
88,000  

Vinci SA (ADR)

      1,272,480   
    

 

 

  
 

FOOD - 5.8 %

   
14,000  

Kerry Group PLC (ADR)

      994,000   
81,800  

Marine Harvest ASA (ADR)

      1,150,108   
15,800  

Seven & I Holdings Co. Ltd. (ADR)

      1,226,712   
    

 

 

  
       3,370,820   
    

 

 

  
 

HAND/MACHINE TOOLS - 2.5 %

   
103,100  

Techtronic Industries Co. (ADR)

      1,467,113   
    

 

 

  
 

HEALTHCARE - 8.6 %

   
59,800  

Fresenius Medical Care AG & Co. (ADR)

      2,075,060   
35,200  

Smith & Nephew PLC (ADR)

      2,963,488   
    

 

 

  
       5,038,548   
    

 

 

  
 

HOME BUILDERS - 1.4 %

   
70,000  

Sekisui House Ltd. (ADR)

      823,900   
    

 

 

  
 

INSURANCE - 8.8 %

   
224,000  

Aegon NV (ADR)

      1,841,280   
49,900  

Ageas (ADR)

      1,641,960   
40,700  

Muenchener Rueckversicherungs AG (ADR)

      804,232   
28,900  

Zurich Insurance Group AG (ADR)

      861,480   
    

 

 

  
       5,148,952   
    

 

 

  
 

INTERNET - 1.8 %

   
70,000  

Tencent Holdings Ltd. (ADR)

      1,037,400   
    

 

 

  

 

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

34

Schedule of Investments  |  International (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

MACHINERY - 1.3 %

   
30,000  

Atlas Copco AB (ADR)

      $             773,085   
    

 

 

  
 

METAL FABRICATE/HARDWARE - 0.9 %

   
20,000  

Assa Abloy AB (ADR)

      513,100   
    

 

 

  
 

MINERALS & MINING - 1.2 %

   
14,000  

Rio Tinto PLC (ADR)

      688,520   
    

 

 

  
 

MISCELLANEOUS MANUFACTURING - 2.3 %

   
44,538  

FUJIFILM Holdings Corp. (ADR)

      1,369,053   
    

 

 

  
 

OIL & NATURAL GAS - 4.8 %

   
189,000  

Gran Tierra Energy, Inc. *

      1,047,060   
64,468  

Statoil ASA - (ADR)

      1,750,951   
    

 

 

  
       2,798,011   
    

 

 

  
 

OIL & GAS SERVICES - 1.0 %

   
42,788  

Subsea 7 SA (ADR)

      608,445   
    

 

 

  
 

PHARMACEUTICAL - 4.7 %

   
10,500  

Shire PLC (ADR)

      2,720,025   
    

 

 

  
 

RETAIL - 1.4 %

   
77,000  

Home Retail Group PLC (ADR)

      833,140   
    

 

 

  
 

SOFTWARE - 1.5 %

   
16,000  

Open Text Corp.

      886,720   
    

 

 

  
 

TELECOMMUNICATIONS - 4.4 %

   
15,000  

Globe Telecom, Inc. (ADR)

      541,725   
43,000  

Nippon Telegraph & Telephone Corp. (ADR)

      1,337,730   
10,000  

Philippine Long Distance Telephone Co. (ADR)

      689,800   
    

 

 

  
       2,569,255   
    

 

 

  
 

TRANSPORTATION - 2.2 %

   
6,200  

Canadian Pacific Railway Ltd.

      1,286,314   
    

 

 

  
 

TOTAL COMMON STOCK (Cost - $48,385,290)

      55,291,628   
    

 

 

  
 

MONEY MARKET FUND - 5.1%

   
2,972,365  

Fidelity Institutional Money Market Portfolio, 0.01% (Cost $2,972,365)(A)

      2,972,365   
    

 

 

  
 

TOTAL INVESTMENTS (Cost - $51,357,655)(B) - 99.6 %

      $             58,263,993   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - 0.4 %

      241,583   
    

 

 

  
 

NET ASSETS - 100.00%

      $             58,505,576   
    

 

 

  

* Non-income producing securities.

(ADR) American Depositary Receipt

(A) Variable rate security; the rate shown represents the yield at September 30, 2014.

(B) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $51,723,516 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

  

  

  

   

 

Unrealized appreciation

      $ 9,216,553     
 

Unrealized depreciation

      (2,676,076)    
    

 

 

  
 

Net unrealized appreciation

      $ 6,540,477     
    

 

 

  

 

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

35

Schedule of Investments  |  International (Continued)

As of September 30, 2014

 

Diversification of Assets       

 

  
Country    % of Net Assets  

 

  
Belgium      2.81%   
Brazil      0.97%   
Britain      8.71%   
Canada      9.37%   
China      3.51%   
France      7.45%   
Germany      7.97%   
Hong Kong      4.74%   
India      1.95%   
Ireland      6.35%   
Israel      2.41%   
Italy      1.52%   
Japan      17.28%   
Netherlands      3.15%   
Norway      4.96%   
Panama      1.65%   
Philippines      2.10%   
Singapore      2.91%   
Sweden      3.23%   
Switzerland                  1.47%   
  

 

 

  
Total      94.51%   
Money Market Fund      5.08%   
Other Assets in Excess of Liabilities      0.41%   
  

 

 

  
Grand Total      100.00%   
  

 

 

  

 

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

36

Schedule of Investments | Large/Mid Cap Growth

As of September 30, 2014

 

 

 

  
Shares        Fair Value  

 

  
 

COMMON STOCK - 94.9 %

   
 

AEROSPACE/DEFENSE - 1.3 %

   
6,540  

General Dynamics Corp.

      $             831,169   
    

 

 

  
 

APPAREL - 3.2 %

   
6,625  

Carter’s, Inc.

      513,570   
1,420  

Hanesbrands, Inc.

      152,565   
19,575  

VF Corp.

      1,292,537   
    

 

 

  
       1,958,672   
    

 

 

  
 

BANKS - 5.6 %

   
35,085  

BB&T Corp.

      1,305,513   
42,475  

First Horizon National Corp.

      521,593   
16,725  

Popular, Inc. *

      492,300   
12,750  

PrivateBancorp, Inc.

      381,352   
34,088  

Synovus Financial Corp.

      805,840   
    

 

 

  
       3,506,598   
    

 

 

  
 

BIOTECHNOLOGY - 3.1 %

   
775  

Alexion Pharmaceuticals, Inc. *

      128,511   
5,725  

BioMarin Pharmaceutical, Inc. *

      413,116   
12,685  

Celgene Corp. *

      1,202,284   
3,550  

Incyte Corp. *

      174,128   
    

 

 

  
       1,918,039   
    

 

 

  
 

CHEMICALS - 4.8 %

   
13,720  

LyondellBasell Industries NV

      1,490,815   
11,360  

Praxair, Inc.

      1,465,440   
    

 

 

  
       2,956,255   
    

 

 

  
 

COMMERCIAL SERVICES - 4.1 %

   
1,250  

DeVry Education Group, Inc.

      53,513   
3,467  

FleetCor Technologies, Inc. *

      492,730   
32,425  

SEI Investments Co.

      1,172,488   
3,435  

United Rentals, Inc. *

      381,629   
14,945  

Vantiv, Inc. - Cl. A *

      461,801   
    

 

 

  
       2,562,161   
    

 

 

  
 

COMPUTERS - 2.3 %

   
10,350  

Cognizant Technology Solutions Corp. - Cl. A *

      463,370   
9,340  

Electronics For Imaging, Inc. *

      412,548   
3,550  

IHS, Inc. - Cl. A *

      444,425   
4,075  

VeriFone Systems, Inc. *

      140,099   
    

 

 

  
       1,460,442   
    

 

 

  
 

DISTRIBUTION/WHOLESALE - 0.6 %

   
4,565  

Wesco International, Inc. *

      357,257   
    

 

 

  
 

DIVERSIFIED FINANCIAL SERVICES - 3.1 %

   
20,585  

E* TRADE Financial Corp. *

      465,015   
4,165  

IntercontinentalExchange, Inc.

      812,383   
17,174  

Invesco Ltd.

      678,030   
    

 

 

  
       1,955,428   
    

 

 

  
 

ELECTRONICS - 6.1 %

   
15,640  

Amphenol Corp.

      1,561,810   
980  

Mettler-Toledo International, Inc. *

      251,007   
13,525  

Thermo Fisher Scientific, Inc.

      1,645,992   
11,270  

Trimble Navigation Ltd. *

      343,735   
    

 

 

  
       3,802,544   
    

 

 

  
 

ENVIRONMENTAL CONTROL - 0.6 %

   
7,270  

Waste Connections, Inc.

      352,740   
    

 

 

  
 

FOOD - 3.8 %

   
6,075  

Hain Celestial Group, Inc. *

      621,776   
10,290  

JM Smucker Co.

      1,018,607   
20,730  

Mondelez International, Inc. - Cl. A

      710,313   
    

 

 

  
       2,350,696   
    

 

 

  

 

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

37

Schedule of Investments | Large/Mid Cap Growth (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

HEALTHCARE - 1.3 %

   
24,700  

Bruker Biosciences, Corp. *

      $             457,321   
5,785  

ICON PLC *

      331,076   
    

 

 

  
       788,397   
    

 

 

  
 

HOME BUILDERS - 0.7 %

   
11,455  

Lennar Corp.

      444,798   
    

 

 

  
 

INSURANCE - 3.5 %

   
17,905  

ACE Ltd.

      1,877,697   
13,475  

Assured Guaranty Ltd.

      298,606   
    

 

 

  
       2,176,303   
    

 

 

  
 

LEISURE TIME - 0.9 %

   
13,850  

Brunswick Corp.

      583,639   
    

 

 

  
 

MACHINERY - 3.0 %

   
5,535  

Flowserve Corp.

      390,328   
5,225  

Nordson Corp.

      397,465   
9,565  

Rockwell Automation, Inc.

      1,051,002   
    

 

 

  
       1,838,795   
    

 

 

  
 

MINING - 2.8 %

   
53,360  

Freeport-McMoRan, Inc.

      1,742,204   
    

 

 

  
 

OIL & NATURAL GAS - 8.2 %

   
6,620  

Cabot Oil & Gas Corp.

      216,408   
15,485  

ConocoPhillips

      1,184,912   
12,985  

Exxon Mobil Corp.

      1,221,239   
23,340  

Occidental Petroleum Corp.

      2,244,141   
2,825  

Whiting Petroleum Corp. *

      219,079   
    

 

 

  
       5,085,779   
    

 

 

  
 

PHARMACEUTICALS - 2.2 %

   
17,725  

AbbVie, Inc.

      1,023,796   
4,100  

Catamaran Corp. *

      172,815   
1,025  

Salix Pharmaceuticals Ltd. *

      160,146   
    

 

 

  
       1,356,757   
    

 

 

  
 

RETAIL - 12.9 %

   
6,475  

Advance Auto Parts, Inc.

      843,693   
3,825  

AutoZone, Inc. *

      1,949,450   
13,600  

Cheesecake Factory, Inc.

      618,800   
11,585  

Costco Wholesale Corp.

      1,451,832   
24,530  

Kohl’s Corp.

      1,497,066   
25,445  

Lowe’s Cos, Inc.

      1,346,549   
5,250  

Tractor Supply Co.

      322,928   
    

 

 

  
       8,030,318   
    

 

 

  
 

SEMICONDUCTORS - 10.0 %

   
3,875  

Avago Technologies Ltd.

      337,125   
44,920  

Linear Technology Corp.

      1,993,999   
34,055  

Maxim Integrated Products, Inc.

      1,029,823   
75,525  

NVIDIA Corp.

      1,393,436   
7,225  

NXP Semiconductor NV *

      494,407   
23,780  

Xilinx, Inc.

      1,007,083   
    

 

 

  
       6,255,873   
    

 

 

  

 

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

38

Schedule of Investments | Large/Mid Cap Growth (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

SOFTWARE - 5.9 %

   
7,475  

Aspen Technology, Inc. - Cl. A *

      $             281,957   
15,325  

Cerner Corp. *

      912,910   
10,750  

Check Point Software Technologies Ltd. *

      744,330   
2,705  

Informatica Corp. *

      92,619   
11,435  

PTC, Inc. *

      421,951   
13,060  

VMware, Inc. - Cl. A *

      1,225,550   
    

 

 

  
       3,679,317   
    

 

 

  
 

TELECOMMUNICATIONS - 1.8 %

   
10,050  

SBA Communications Corp. - Cl. A *

      1,114,545   
    

 

 

  
 

TRANSPORTATION - 3.1 %

   
2,155  

Genesee & Wyoming, Inc. - Cl. A *

      205,393   
12,425  

Norfolk Southern Corp.

      1,386,630   
16,145  

Swift Transportation Co. - Cl. A *

      338,722   
    

 

 

  
       1,930,745   
    

 

 

  
 

TOTAL COMMON STOCK (Cost - $50,555,035)

      59,039,471   
    

 

 

  
 

MASTER LIMITED PARTNERSHIPS - 1.6%

   
19,455  

Lazard Ltd. - Cl. A (Cost $862,121)

      986,369   
    

 

 

  
 

MONEY MARKET FUND - 3.3 %

   
2,017,276  

Fidelity Institutional Money Market Portfolio, 0.01% (Cost $2,017,276)(A)

      2,017,276   
    

 

 

  
 

TOTAL INVESTMENTS ( Cost - $53,434,432)(B) - 99.8 %

      $ 62,043,116   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - 0.2 %

      148,269   
    

 

 

  
 

NET ASSETS - 100.0%

      $ 62,191,385   
    

 

 

  

* Non-income producing securities.

(A) Variable rate security; the rate shown represents the yield at September 30, 2014.

(B) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $53,473,316 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

  

  

   

 

Unrealized appreciation

      $             9,077,397    
 

Unrealized depreciation

      (507,597)   
    

 

 

  
 

Net unrealized appreciation

      $ 8,569,800    
    

 

 

  

 

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

39

Schedule of Investments | Small Cap Value

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

COMMON STOCK - 88.8 %

   
 

AEROSPACE/EQUIPMENT- 2.1 %

   
43,022  

Kaman Corp.

      $             1,690,765   
    

 

 

  
 

APPAREL - 2.0 %

   
65,400  

Wolverine World Wide, Inc.

      1,638,924   
    

 

 

  
 

BANKS - 14.8 %

   
14,323  

BancFirst Corp.

      896,047   
108,899  

BBCN Bancorp, Inc.

      1,588,836   
62,047  

Chemical Financial Corp.

      1,668,444   
67,308  

Columbia Banking System, Inc.

      1,669,912   
63,800  

First Financial Bancorp

      1,009,954   
28,575  

Opus Bank *

      875,252   
61,657  

Pacific Continental Corp.

      792,292   
59,330  

WesBanco, Inc.

      1,814,905   
35,954  

Wintrust Financial Corp.

      1,606,065   
    

 

 

  
       11,921,707   
    

 

 

  
 

BUILDING MATERIALS - 7.9 %

   
37,211  

Apogee Enterprises, Inc.

      1,480,998   
53,050  

Boise Cascade Co. *

      1,598,927   
114,486  

Continental Building Products, Inc. *

      1,671,496   
46,126  

Trex Co., Inc. *

      1,594,576   
    

 

 

  
       6,345,997   
    

 

 

  
 

CHEMICALS - 2.1 %

   
46,590  

A. Schulman, Inc.

      1,684,694   
    

 

 

  
 

COMMERCIAL SERVICES - 2.1 %

   
106,000  

Kelly Services, Inc. - Cl. A

      1,661,020   
    

 

 

  
 

COMPUTERS - 1.9 %

   
31,600  

J2 Global, Inc.

      1,559,776   
    

 

 

  
 

DISTRIBUTION/WHOLESALE - 1.1 %

   
34,367  

Beacon Roofing Supply, Inc. *

      875,671   
    

 

 

  
 

ELECTRIC - 3.9 %

   
35,300  

ALLETE, Inc.

      1,566,967   
34,800  

NorthWestern Corp.

      1,578,528   
    

 

 

  
       3,145,495   
    

 

 

  
 

ELECTRICAL & EQUIPMENT - 3.7 %

   
19,445  

Littelfuse, Inc.

      1,656,325   
22,210  

Coherent, Inc. *

      1,363,028   
    

 

 

  
       3,019,353   
    

 

 

  
 

FOOD - 2.1 %

   
18,363  

J & J Snack Foods Corp.

      1,718,042   
    

 

 

  
 

HEALTHCARE - 4.3 %

   
26,700  

Haemonetics Corp. *

      932,364   
19,765  

Integra LifeSciences Holdings Corp. *

      981,135   
131,758  

Merit Medical Systems, Inc. *

      1,565,285   
    

 

 

  
       3,478,784   
    

 

 

  
 

HOME FURNISHINGS - 2.1 %

   
65,128  

DTS, Inc. *

      1,644,482   
    

 

 

  
 

INSURANCE - 4.2 %

   
23,945  

AMERISAFE, Inc.

      936,489   
86,000  

Employers Holdings, Inc.

      1,655,500   
15,097  

Safety Insurance Group, Inc.

      813,879   
    

 

 

  
       3,405,868   
    

 

 

  

 

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

40

Schedule of Investments | Small Cap Value (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

MACHINERY - 5.2 %

   
21,262  

Alamo Group, Inc.

      $             871,742   
53,193  

Gorman-Rupp Co.

      1,597,918   
23,405  

Hurco Cos, Inc.

      881,432   
12,162  

Hyster-Yale Materials Handling, Inc. - CL. A

      871,042   
    

 

 

  
       4,222,134   
    

 

 

  
 

MEDIA - 1.1 %

   
19,700  

Meredith Corp.

      843,160   
    

 

 

  
 

OFFICE FURNISHINGS - 1.0 %

   
48,215  

Knoll, Inc.

      834,602   
    

 

 

  
 

OIL & NATURAL GAS - 9.3 %

   
14,972  

Bonanza Creek Energy, Inc. *

      851,907   
47,694  

Contango Oil & Gas Co. *

      1,585,349   
170,400  

PetroQuest Energy, Inc. *

      957,648   
126,388  

Rex Energy Corp. *

      1,601,336   
32,800  

RSP Permian, Inc. *

      838,368   
137,892  

Synergy Resources Corp. *

      1,680,903   
    

 

 

  
       7,515,511   
    

 

 

  
 

OIL & GAS SERVICES - 1.0 %

   
32,831  

Matrix Service Co. *

      791,884   
    

 

 

  
 

PIPELINES - 1.1 %

   
31,200  

Primoris Services Corp.

      837,408   
    

 

 

  
 

RETAIL - 3.9 %

   
20,000  

Lithia Motors, Inc.

      1,513,800   
49,282  

Rush Enterprises, Inc. *

      1,648,483   
    

 

 

  
       3,162,283   
    

 

 

  
 

SEMICONDUCTORS - 2.2 %

   
64,183  

Semtech Corp. *

      1,742,568   
    

 

 

  
 

SOFTWARE - 3.8 %

   
81,700  

AVG Technologies NV *

      1,354,586   
63,021  

Omnicell, Inc. *

      1,722,364   
    

 

 

  
       3,076,950   
    

 

 

  
 

TRANSPORTATION - 3.9 %

   
69,015  

Heartland Express, Inc.

      1,653,599   
66,600  

Roadrunner Transportation Systems, Inc. *

      1,517,814   
    

 

 

  
       3,171,413   
    

 

 

  
 

TRUCKING & LEASING - 2.0 %

   
38,896  

TAL International Group, Inc.

      1,604,460   
    

 

 

  
 

TOTAL COMMON STOCK (Cost - $66,657,222)

      71,592,951   
    

 

 

  
 

MASTER LIMITED PARTNERSHIPS - 1.8 %

   
24,900  

Cone Midstream Partners LP *

      699,690   
39,170  

World Point Terminals LP

      744,622   
    

 

 

  
 

TOTAL MASTER LIMITED PARTNERSHIPS (Cost - $1,474,844)

      1,444,312   
    

 

 

  

 

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

41

Schedule of Investments | Small Cap Value (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

REITs - 8.9%

   
67,093  

CyrusOne, Inc.

      $             1,612,916   
73,100  

Inland Real Estate Corp.

      724,421   
38,500  

Potlatch Corp.

      1,548,085   
78,708  

STAG Industrial, Inc.

      1,630,043   
155,897  

Summit Hotel Properties, Inc.

      1,680,569   
    

 

 

  
 

TOTAL REITs (Cost - $6,460,597)

      7,196,034   
    

 

 

  
 

MONEY MARKET FUND - 0.5 %

   
411,973  

Fidelity Institutional Money Market Portfolio, 0.01% (Cost - $411,973)(A)

      411,973   
    

 

 

  
 

TOTAL INVESTMENTS (Cost - $75,004,636)(B) - 100.0 %

      $ 80,645,270   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - 0.0 %

      17,917   
    

 

 

  
 

NET ASSETS - 100.0 %

      $ 80,663,187   
    

 

 

  

* Non-income producing securities.

REIT - Real Estate Investment Trust

(A) Variable rate security; the rate shown represents the yield at September 30, 2014.

(B) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $75,216,736 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

  

  

  

   

 

Unrealized appreciation

      $ 8,762,057    
 

Unrealized depreciation

      (3,333,523)   
    

 

 

  
 

Net unrealized appreciation

      $ 5,428,534    
    

 

 

  

 

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

 

42

Schedule of Investments | Large/Mid Cap Value

As of September 30, 2014

 

 

 

  
Shares        Fair Value  

 

  
 

COMMON STOCK - 95.1 %

   
 

AEROSPACE/DEFENSE - 1.8 %

   
33,550  

B/E Aerospace, Inc. *

      $             2,816,187   
    

 

 

  
 

AUTO - 1.7 %

   
50,400  

BorgWarner, Inc.

      2,651,544   
    

 

 

  
 

BANKS - 6.1 %

   
69,900  

CIT Group, Inc.

      3,212,604   
89,800  

East West Bancorp, Inc.

      3,053,200   
29,786  

SVB Financial Group *

      3,338,713   
    

 

 

  
       9,604,517   
    

 

 

  
 

BEVERAGES - 2.3 %

   
56,900  

Dr. Pepper Snapple Group, Inc.

      3,659,239   
    

 

 

  
 

CHEMICALS - 3.1 %

   
20,300  

Rockwood Holdings, Inc.

      1,551,935   
14,850  

Sherwin-Williams Co.

      3,252,002   
    

 

 

  
       4,803,937   
    

 

 

  
 

COMPUTERS - 2.4 %

   
18,900  

SanDisk Corp.

      1,851,255   
19,900  

Western Digital Corp.

      1,936,668   
    

 

 

  
       3,787,923   
    

 

 

  
 

DISTRIBUTION/WHOLESALE - 3.6 %

   
34,600  

WESCO International, Inc. *

      2,707,796   
11,900  

WW Grainger, Inc.

      2,994,635   
    

 

 

  
       5,702,431   
    

 

 

  
 

DIVERSIFIED FINANCIAL SERVICES - 6.1 %

   
85,800  

Eaton Vance Corp.

      3,237,234   
55,800  

Franklin Resources, Inc.

      3,047,238   
84,000  

Invesco Ltd.

      3,316,320   
    

 

 

  
       9,600,792   
    

 

 

  
 

ELECTRIC POWER - 1.9 %

   
31,900  

NextEra Energy, Inc.

      2,994,772   
    

 

 

  
 

ELECTRONICS - 9.7 %

   
33,100  

Amphenol Corp.

      3,305,366   
65,600  

PerkinElmer, Inc.

      2,860,160   
52,200  

TE Connectivity Ltd.

      2,886,138   
25,100  

Thermo Fisher Scientific, Inc.

      3,054,670   
65,900  

Woodward, Inc.

      3,138,158   
    

 

 

  
       15,244,492   
    

 

 

  
 

FOOD - 5.8 %

   
30,000  

JM Smucker Co.

      2,969,700   
43,200  

McCormick & Co., Inc.

      2,890,080   
83,750  

Sysco Corp.

      3,178,313   
    

 

 

  
       9,038,093   
    

 

 

  
 

GAS - 2.0 %

   
61,130  

New Jersey Resources Corp.

      3,087,676   
    

 

 

  
 

HEALTHCARE - 4.0 %

   
23,100  

CR Bard, Inc.

      3,296,601   
65,700  

DENTSPLY International, Inc.

      2,995,920   
    

 

 

  
       6,292,521   
    

 

 

  
 

HOUSEHOLD PRODUCTS/WARES - 0.8 %

   
18,900  

Tupperware Brands Corp.

      1,304,856   
    

 

 

  
 

INSURANCE - 2.7 %

   
59,000  

Axis Capital Holdings Ltd.

      2,792,470   
41,100  

Unumprovident Corp.

      1,413,018   
    

 

 

  
       4,205,488   
    

 

 

  

 

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

 

43

Schedule of Investments | Large/Mid Cap Value (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

MACHINERY - 1.9 %

   
43,000  

Flowserve Corp.

      $             3,032,360   
    

 

 

  
 

METAL FABRICATE/HARDWARE - 1.7 %

   
11,500  

Precision Castparts Corp.

      2,724,120   
    

 

 

  
 

MISCELLANEOUS MANUFACTURING - 3.7 %

   
63,600  

AO Smith Corp.

      3,007,008   
29,200  

SPX Corp.

      2,742,756   
    

 

 

  
       5,749,764   
    

 

 

  
 

OIL & NATURAL GAS - 9.4 %

   
33,750  

EOG Resources, Inc.

      3,341,925   
14,700  

EQT Corp.

      1,345,638   
34,700  

Marathon Petroleum Corp.

      2,938,049   
20,400  

National Oilwell Varco, Inc.

      1,552,440   
62,500  

Oasis Petroleum, Inc. *

      2,613,125   
30,900  

Occidental Petroleum Corp.

      2,971,035   
    

 

 

  
       14,762,212   
    

 

 

  
 

PHARMACEUTICALS - 2.0 %

   
44,200  

Express Scripts Holding Co. *

      3,121,846   
1  

Mallinckrodt PLC *

      90   
    

 

 

  
       3,121,936   
    

 

 

  
 

RETAIL - 5.1 %

   
24,575  

Advance Auto Parts, Inc.

      3,202,122   
33,725  

MSC Industrial Direct Co., Inc.

      2,882,138   
26,600  

PetSmart, Inc.

      1,864,394   
    

 

 

  
       7,948,654   
    

 

 

  
 

SEMICONDUCTORS - 6.2 %

   
42,400  

Avago Technologies Ltd.

      3,688,800   
32,000  

Microchip Technology, Inc.

      1,511,360   
78,300  

Skyworks Solutions, Inc.

      4,545,315   
    

 

 

  
       9,745,475   
    

 

 

  
 

TELECOMMUNICATIONS - 2.8 %

   
95,500  

Amdocs Ltd.

      4,381,540   
    

 

 

  
 

TEXTILES - 2.1 %

   
24,100  

Mohawk Industries, Inc. *

      3,249,162   
    

 

 

  
 

TRANSPORTATION - 2.1 %

   
30,800  

Union Pacific Corp.

      3,339,336   
    

 

 

  
 

TOTAL COMMON STOCK (Cost - $110,627,306)

      142,849,027   
    

 

 

  
 

MASTER LIMITED PARTNERSHIPS - 1.9%

   
60,600  

Lazard Ltd. - Cl. A (Cost $2,278,082)

      3,072,420   
    

 

 

  
 

REITs - 2.2 %

   
26,600  

Regency Centers Corp.

      1,431,878   
31,500  

Ventas, Inc.

      1,951,425   
    

 

 

  
 

TOTAL REITs (Cost $3,708,336)

      3,383,303   
    

 

 

  

 

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

 

44

Schedule of Investments | Large/Mid Cap Value (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

MONEY MARKET FUND - 5.1 %

   
8,000,633  

Fidelity Institutional Money Market Portfolio, 0.01% (Cost $8,000,633)(A)

      $             8,000,633   
    

 

 

  
 

TOTAL INVESTMENTS (Cost - $124,614,357)(B) - 100.2 %

      $ 157,305,383   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - (0.2) %

      (264,960 ) 
    

 

 

  
 

NET ASSETS - 100.0%

      $ 157,040,423   
    

 

 

  

* Non-income producing securities.

REIT - Real Estate Investment Trust

(A) Variable rate security; the rate shown represents the yield at September 30, 2014.

(B) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $124,581,871 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

  

  

  

   

 

Unrealized appreciation

      $     33,988,758    
 

Unrealized depreciation

      (1,265,246)   
    

 

 

  
 

Net unrealized appreciation

      $     32,723,512    
    

 

 

  

 

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

 

45

Schedule of Investments  |  Fixed Income

As of September 30, 2014

 

 

 

  
Par Value        Fair Value  

 

  
 

BONDS AND NOTES - 95.9 %

   
 

CORPORATE BONDS - 39.8 %

   
$          1,000,000  

ABB Finance USA, Inc., 2.875%, 5/08/2022

      $ 990,020   
1,000,000  

Altera Corp., 1.750%, 5/15/2017

      1,005,903   
740,000  

Analog Devices, Inc., 3.000%, 4/15/2016

      763,216   
1,000,000  

Boardwalk Pipelines LP, 5.750%, 9/15/2019

      1,092,364   
750,000  

Canadian National Railway Co., 5.800%, 6/01/2016

      813,030   
500,000  

Covidien International Finance SA, 2.800%, 6/15/2015

      508,197   
800,000  

DCP Midstream Operating LP, 2.700%, 4/01/2019

      802,805   
1,000,000  

Delphi Automotive Systems Corp., 4.150%, 3/15/2024

      1,022,079   
325,000  

Eaton Corp., 5.600%, 5/15/2018

      365,685   
1,200,000  

Enable Midstream Partners LP, 3.900% 5/15/2024 (A)

      1,195,890   
1,000,000  

Energy Transfer Partners LP, 6.700%, 7/01/2018

      1,152,174   
500,000  

Enterprise Products Operating, LLC, 6.125%, 10/15/2039

      605,110   
900,000  

Equity Residential, 5.125%, 3/15/2016

      955,895   
1,000,000  

Glencore Funding, LLC., 4.125%, 5/30/2023 (A)

      991,492   
1,000,000  

Health Care REIT, Inc., 3.750%, 3/15/2023

      989,076   
750,000  

Husky Energy, Inc., 3.950%, 4/15/2022

      778,580   
966,973  

John Sevier Combined Cycle Generation LLC, 4.626%, 1/15/2042

      1,053,308   
750,000  

Johnson Controls, Inc., 5.000%, 3/30/2020

      829,591   
1,000,000  

Kennametal, Inc., 3.875%, 2/15/2022

      1,008,816   
1,200,000  

L-3 Comm Corp, 3.950%, 5/28/2024

      1,193,020   
800,000  

LYB International Finance BV, 4.000%, 7/15/2023

      829,205   
500,000  

Oneok, Inc., 4.250%, 2/01/2022

      493,693   
1,000,000  

Petrobras Intl. Financial Co., 3.500%, 2/06/2017

      1,019,880   
1,000,000  

Phillips 66, 2.950%, 5/01/2017

      1,039,650   
1,000,000  

Plains All American Pipeline, 3.650%, 6/01/2022

      1,019,028   
1,000,000  

Rabobank Nederland, 2.125%, 10/13/2015

      1,017,162   
750,000  

Rio Tinto Finance USA, Ltd., 2.500%, 5/20/2016

      769,774   
1,000,000  

Simon Property Group LP, 6.125%, 5/30/2018

      1,148,302   
1,200,000  

Sunoco Logistics Partners LP, 4.250%, 4/1/2024

      1,218,138   
500,000  

Transocean, Inc., 6.000%, 3/15/2018

      539,557   
750,000  

Trinity Acquisition PLC, 4.625%, 8/15/2023

      782,234   
750,000  

Tyco Electronics Group SA, 6.550%, 10/01/2017

      854,606   
1,200,000  

Venta Realty LP/CAP Corp., 3.250% 8/15/2022

      1,168,894   
    

 

 

  
 

TOTAL CORPORATE BONDS (Cost - $29,345,103)

      30,016,374   
    

 

 

  
 

U.S. GOVERNMENT & AGENCY OBLIGATIONS - 56.1 %

   
 

GOVERNMENT NOTES & BONDS - 27.3 %

   
2,500,000  

Federal Farm Credit Bank, 5.125%, 8/25/2016

      2,712,358   
1,000,000  

Federal Home Loan Bank, 5.000%, 11/17/2017

      1,115,050   
2,500,000  

U.S. Treasury Bond, 4.500%, 2/15/2036

      3,086,720   
2,000,000  

U.S. Treasury Note, 2.125%, 8/31/2020

      2,010,859   
9,000,000  

U.S. Treasury Note, 3.125%, 5/15/2021

      9,538,947   
2,000,000  

U.S. Treasury Note, 3.875%, 5/15/2018

      2,177,110   
    

 

 

  
 

TOTAL GOVERNMENT NOTES & BONDS (Cost - $20,879,067)

                20,641,044   
    

 

 

  

 

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

 

46

Schedule of Investments  |  Fixed Income (Continued)

As of September 30, 2014

 

 

  
Par Value        Fair Value  

 

  
 

GOVERNMENT MORTGAGE-BACKED SECURITIES - 28.8 %

   
$          44,022      

GNMA Pool 3584, 6.000%, 7/20/2034

      $ 50,716   
110,001      

GNMA Pool 3612, 6.500%, 9/20/2034

      129,190   
328,478      

GNMA Pool 3625, 6.000%, 10/20/2034

      377,824   
126,212      

GNMA Pool 3637, 5.500%, 11/20/2034

      143,325   
208,352      

GNMA Pool 3665, 5.500%, 1/20/2035

      236,640   
109,976      

GNMA Pool 3679, 6.000%, 2/20/2035

      126,681   
234,174      

GNMA Pool 3711, 5.500%, 5/20/2035

      265,972   
190,752      

GNMA Pool 3865, 6.000%, 6/20/2036

      217,207   
132,547      

GNMA Pool 3910, 6.000%, 10/20/2036

      151,320   
265,210      

GNMA Pool 4058, 5.000%, 12/20/2037

      292,128   
278,318      

GNMA Pool 4072, 5.500%, 1/20/2038

      315,557   
1,038,275      

GNMA Pool 4520, 5.000%, 8/20/2039

      1,154,511   
652,829      

GNMA Pool 4541, 5.000%, 9/20/2039

      725,904   
1,143,961      

GNMA Pool 4947, 5.000%, 2/20/2041

      1,272,649   
483,960      

GNMA Pool 5204, 4.500%, 10/20/2041

      526,765   
9,331      

GNMA Pool 585163, 5.000%, 2/15/2018

      9,902   
9,623      

GNMA Pool 585180, 5.000%, 2/15/2018

      10,212   
6,098      

GNMA Pool 592492, 5.000%, 3/15/2018

      6,494   
7,819      

GNMA Pool 599821, 5.00%, 1/15/2018

      8,255   
169,161      

GNMA Pool 604182, 5.500%, 4/15/2033

      189,158   
106,235      

GNMA Pool 663776, 6.500%, 1/15/2037

      120,590   
1,429,657      

GNMA Pool 701961, 4.500%, 6/15/2039

      1,552,966   
440,366      

GNMA Pool 734437, 4.500%, 5/15/2041

      479,408   
1,140,204      

GNMA Pool 737556, 4.500%, 10/15/2040

      1,241,419   
47,112      

GNMA Pool 781694, 6.000%, 12/15/2031

      53,688   
1,188,546      

GNMA Pool 783060, 4.000%, 8/15/2040

      1,264,374   
3,878,808      

GNMA Pool AD8801, 3.500%, 3/15/2043

      4,017,386   
4,056,051      

GNMA Pool MA0155, 4.000%, 6/20/2042

      4,308,716   
2,403,852      

GNMA Pool MA0220, 3.500%, 7/20/2042

      2,490,148   
    

 

 

  
 

TOTAL GOVERNMENT MORTGAGE-BACKED SECURITIES (Cost - $21,581,449)

                21,739,105   
    

 

 

  
 

TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS (Cost - $42,460,516)

      42,380,149   
    

 

 

  
 

TOTAL BONDS AND NOTES (Cost - $71,805,619)

      72,396,523   
    

 

 

  
    
Shares           
 

MONEY MARKET FUND - 3.7 %

   
2,777,823      

Fidelity Institutional Money Market Portfolio, 0.01% (Cost - $2,777,823)(B)

      2,777,823   
    

 

 

  
 

TOTAL INVESTMENTS (Cost - $74,583,442)(C) - 99.6 %

      $ 75,174,346   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - 0.4 %

      322,646   
    

 

 

  
 

NET ASSETS - 100.0 %

      $ 75,496,992   
    

 

 

  

GNMA - Government National Mortgage Association

(A) 144A Security - Security exempt from registration under Rule 144A of the Securities Act of 1933. The 144A securities represent 2.90% of total net assets. The securities may be resold in transactions exempt from registration typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.

(B) Variable rate security; the rate shown represents the yield at September 30, 2014.

(C) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $74,583,442 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

 

 

Unrealized appreciation

      $             1,577,171    
 

Unrealized depreciation

      (986,267)   
    

 

 

  
 

Net unrealized appreciation

      $             590,904    
    

 

 

  

 

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

 

47

Schedule of Investments  |  High Yield Bond

As of September 30, 2014

 

 

 

  
Par Value        Fair Value  

 

  
 

CORPORATE BONDS - 97.4 %

   
$          500,000      

Access Midstream Partners LP, 5.875%, 4/15/2021

    $           530,000   
500,000      

Actuant Corp., 5.625%, 6/15/2022

      522,500   
500,000      

AmeriGas Partners LP, 7.000%, 5/20/2022

      526,250   
500,000      

Amstead Industries, Inc., 5.000%, 3/15/2022 (A)

      487,500   
250,000      

Amstead Industries, Inc., 5.375%, 9/15/2024 (A)

      243,750   
500,000      

Anixter, Inc., 5.625%, 5/01/2019

      528,125   
500,000      

Antero Resources Finance Corp., 5.375%, 11/1/2021

      499,375   
500,000      

ArcelorMittal, 6.750%, 2/25/2022 (C)

      539,375   
500,000      

Atlas Pipeline Partners LP, 5.875%, 8/01/2023

      491,250   
500,000      

Basic Energy Services, Inc., 7.750%, 10/15/2022

      522,500   
450,000      

Biomet, Inc., 6.500%, 8/01/2020

      478,125   
500,000      

Bombardier, Inc., 6.125%, 1/15/2023 (A)

      503,125   
500,000      

Braskem Finance, Ltd., 6.450%, 2/3/2024

      521,250   
500,000      

Calfrac Holdings LP, 7.500%, 12/01/2020 (A)

      525,000   
250,000      

California Resources Corp., 6.000%, 11/5/2024 (A)

      257,500   
500,000      

Calumet Specialty Product Partners, 6.500%, 4/15/2021 (A)

      477,500   
250,000      

Cascades, Inc., 5.500%, 7/15/2022 (A)

      243,437   
415,000      

Catamaran Corp., 4.750%, 3/15/2021

      400,216   
500,000      

Cemex Finance LLC, 6.000%, 4/1/2024 (A)

      499,850   
500,000      

CGG Veritas, 6.500%, 6/1/2021

      440,000   
500,000      

Cloud Peak Energy Resources LLC, 8.500%, 12/15/2019

      521,250   
500,000      

CommScope, Inc., 5.000%, 6/15/2021 (A)

      492,500   
125,000      

Corrections Corp. of America, 4.125%, 4/01/2020

      123,125   
500,000      

Crestwood Midstream Partners LP, 6.000%, 12/15/2020

      505,000   
500,000      

Crestwood Midstream Partners LP, 7.750%, 4/01/2019

      526,250   
500,000      

DCP Midstream, LLC., 5.850%, 5/21/2043 (A)(B)

      496,250   
500,000      

Denbury Resources, Inc., 5.500%, 5/1/2022

      495,625   
500,000      

Digicel, Ltd., 6.000%, 4/15/2021 (A)

      496,250   
350,000      

DuPont Fabros Technology LP, 5.875%, 9/15/2021

      357,875   
500,000      

Eldorado Gold Corp., 6.125%, 12/15/2020 (A)

      498,750   
500,000      

Energy Transfer Equity LP, 5.875%, 1/15/2024

      508,750   
500,000      

EV Energy Partners/Fin, 8.000%, 4/15/2019

      520,000   
500,000      

Ferrellgas LP, 6.750%, 1/15/2022

      490,000   
500,000      

FTI Consulting, Inc., 6.000%, 11/15/2022

      508,750   
500,000      

General Cable Corp., 5.750%, 10/01/2022 (C)

      467,500   
500,000      

Genesis Energy LP, 5.750%, 2/15/2021

      490,625   
500,000      

Geo Group, Inc., 5.125%, 4/01/2023

      483,750   
500,000      

Gibraltar Industries, Inc., 6.250%, 2/01/2021 (C)

      515,000   
500,000      

Global Part/GLP Finance, 6.250%, 7/15/2022(A)

      500,000   
500,000      

Group 1 Automotive, Inc., 5.000%, 6/1/2022 (A)

      486,250   
500,000      

Hiland Partners LP, 5.500%, 5/15/2022 (A)

      487,500   
350,000      

Hiland Partners LP, 7.250%, 10/1/2020 (A)

      372,750   
500,000      

HJ Heinz Co., 4.250%, 10/15/2020

      498,125   
500,000      

Hologic, Inc., 6.250%, 8/01/2020

      517,500   
500,000      

Hornbeck Offshore Services, Inc., 5.000%, 3/01/2021

      477,500   
750,000      

Iron Mountain, 6.000%, 8/15/2023

      772,500   
500,000      

Iron Mountain, 7.750%, 10/1/2019

      536,250   
500,000      

Jaguar Land Rover PLC, 8.125%, 5/15/2021 (A)

      549,375   
500,000      

Kinder Morgan, Inc., 5.000%, 2/15/2021 (A)

      523,750   
500,000      

Kodiak Oil & Gas Corp., 5.500%, 2/01/2022

      505,000   
500,000      

Land O’ Lakes, Inc., 6.000%, 11/15/2022 (A)

      536,850   
125,000      

LKQ Corp., 4.750%, 5/15/2023

      121,250   
400,000      

Mcron Finance Sub LLC, 8.375%, 5/15/2019 (A)

      432,000   
500,000      

MedAssets, Inc., 8.000%, 11/15/2018

      521,250   
500,000      

Millicom International Cellular SA, 4.750%, 5/22/2020 (A)

      478,750   
500,000      

MPT Operating Partnership LP, 6.375%, 2/15/2022

      536,250   

 

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

 

48

Schedule of Investments  |  High Yield Bond (Continued)

As of September 30, 2014

 

 

  
Par Value        Fair Value  

 

  
 

CORPORATE BONDS - 97.4 % (continued)

   
$          500,000      

Martin Midstream Partners LP, 7.250%, 2/15/2021

      $ 501,250   
250,000      

NGL Energy Partners LP, 5.125%, 7/15/2019 (A)

      245,313   
500,000      

NGL Energy Partners LP, 6.875%, 10/15/2021 (A)

      522,500   
500,000      

NuStar Logistics LP, 6.750%, 2/01/2021

      546,250   
500,000      

Omnicare, Inc., 7.750%, 6/01/2020

      531,250   
500,000      

Oshkosh Corp., 8.500%, 3/1/2020

      530,000   
500,000      

Pacific Drilling V, Ltd., 5.375%, 6/01/2020 (A)

      460,000   
250,000      

Parker Drilling Co., 6.750%, 7/15/2022 (A)

      252,500   
250,000      

Parker Drilling Co., 7.500%, 8/01/2020 (A)

      262,500   
500,000      

PolyOne Corp., 7.375%, 9/15/2020

      528,125   
500,000      

Regency Energy Partners LP, 4.500%, 11/01/2023

      486,250   
500,000      

Resolute Energy Corp., 8.500%, 5/01/2020

      503,750   
500,000      

Reynolds Group Issuer, Inc., 9.000%, 4/15/2019

      523,125   
500,000      

Rose Rock Midstream, 5.625%, 7/15/2022 (A)

      496,250   
1,000,000      

Rosetta Resources, Inc., 5.875%, 6/1/2024

      983,750   
500,000      

Samson Investment Co., 9.750%, 2/15/2020 (C)

      456,250   
500,000      

Sealed Air Corp., 5.250%, 4/01/2023 (A)

      492,500   
200,000      

Sealed Air Corp., 6.500%, 12/01/2020 (A)

      214,250   
500,000      

SemGroup LP, 7.500%, 6/15/2021

      527,500   
500,000      

Steel Dynamics, Inc., 5.250%, 4/15/2023

      506,250   
500,000      

Suburban Propane Partners, 5.500%, 6/1/2024

      478,750   
500,000      

Summit Midstream Holdings LLC, 7.500%, 7/1/2021

      537,500   
182,000      

Suncoke Energy, 7.625%, 8/01/2019

      192,147   
500,000      

Targa Resources Partners LP, 4.250%, 11/15/2023

      482,500   
500,000      

Tesoro Corp., 5.375%, 10/01/2022

      505,000   
391,000      

Tesoro Logistics LP, 5.875%, 10/01/2020

      406,640   
500,000      

Tullow Oil PLC, 6.000%, 11/1/2020 (A)

      502,500   
500,000      

Ultra Pertoleum Corp., 6.125%, 10/1/2024 (A)

      480,000   
500,000      

United States Steel Corp., 7.500%, 3/15/2022

      541,250   
100,000      

USG Corp., 5.875%, 11/1/2021 (A)

      102,500   
500,000      

USG Corp., 9.750%, 1/15/2018 (C)

      582,500   
500,000      

VeriSign, Inc., 4.625%, 5/01/2023

      485,000   
500,000      

VimpelCom Holdings BV, 5.950%, 2/13/2023 (A)

      461,250   
250,000      

WhiteWave Foods Co., 5.375%, 10/1/2022

      253,125   
500,000      

WPX Energy, Inc., 5.250%, 9/15/2024

      486,250   
250,000      

WR Grace & Co., 5.125%, 10/1/2021 (A)

      254,688   
    

 

 

  
 

TOTAL CORPORATE BONDS (Cost $42,695,477)

      42,907,891   
    

 

 

  
    
Shares           
 

MONEY MARKET FUND - 1.5 %

   
676,549      

Fidelity Institutional Money Market Portfolio, 0.01% (Cost $676,549)(B)

      676,549   
    

 

 

  
 

TOTAL INVESTMENTS (Cost $43,372,026)(D) - 98.9 %

      $           43,584,440   
    

 

 

  
 

OTHER ASSETS IN EXCESS OF LIABILITIES - NET - 1.1 %

      465,043   
    

 

 

  
 

NET ASSETS - 100.0 %

      $ 44,049,483   
    

 

 

  

(A) 144A Security - Security exempt from registration under Rule 144A of the Securities Act of 1933. The 144A securities represent 32.5% of total net assets. The securities may be resold in transactions exempt from registration typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.

(B) Variable rate security; the rate shown represents the yield at September 30, 2014.

(C) Step coupon security; interest rate shown reflects the rate currently in effect.

(D) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $43,372,026 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

 

 

Unrealized appreciation

      $             885,897    
 

Unrealized depreciation

      (673,483)   
    

 

 

  
 

Net unrealized appreciation

      $             212,414    
    

 

 

  

 

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

 

49

Schedule of Investments  |  Israel Common Values

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

COMMON STOCK - 94.1 %

   
 

AEROSPACE/DEFENSE - 2.7 %

   
7,001  

Elbit Systems Ltd.

      $ 434,692   
    

 

 

  
 

BANKS - 10.3 %

   
13,900  

Bank Hapoalim BM (ADR)

      392,536   
92,000  

Bank Leumi Le-Israel BM *

      372,585   
19,300  

First International Bank Of Israel BM.

      295,202   
170,000  

Israel Discount Bank Ltd. *

      292,555   
26,000  

Mizrahi Tefahot Bank Ltd. *

      310,735   
    

 

 

  
                   1,663,613   
    

 

 

  
 

BUILDING MATERIALS - 2.3 %

   
7,200  

Caesar Stone SDot Yam Ltd.

      372,096   
    

 

 

  
 

CHEMICALS - 4.3 %

   
17,000  

Frutarom Industries Ltd.

      431,449   
37,400  

Israel Chemicals Ltd. (ADR)

      265,914   
    

 

 

  
       697,363   
    

 

 

  
 

COMMERCIAL SERVICES - 1.7 %

   
17,000  

Nitsba Holdings 1995 Ltd. *

      278,111   
    

 

 

  
 

COMPUTERS - 0.8 %

   
24,210  

Matrix IT Ltd.

      131,233   
    

 

 

  
 

ELECTRONICS - 4.2 %

   
14,896  

Ituran Location and Control Ltd.

      315,050   
23,500  

Orbotech Ltd. *

      366,130   
    

 

 

  
       681,180   
    

 

 

  
 

ENERGY ALTERNATE SOURCES - 1.9 %

   
43,300  

Ormat Industries

      304,761   
    

 

 

  
 

FOOD - 4.5 %

   
13,000  

Osem Investments Ltd.

      278,942   
5,700  

Rami Levi Chain Stores

      282,362   
59,000  

Shufersal Ltd.

      166,874   
    

 

 

  
       728,178   
    

 

 

  
 

HOME BUILDERS - 1.8 %

   
1,000  

Bayside Land Corp.

      280,394   
    

 

 

  
 

HOUSEHOLD PRODUCTS/WARES - 1.9 %

   
10,500  

SodaStream International Ltd. *

      309,645   
    

 

 

  
 

INTERNET - 1.2 %

   
34,000  

Perion Network Ltd. *

      189,040   
    

 

 

  
 

INVESTMENT COMPANIES - 2.1 %

   
600  

Israel Corp. Ltd *

      337,613   
    

 

 

  
 

OIL & NATURAL GAS - 11.9 %

   
338,000  

Avner Oil Exploration LLP

      334,413   
61,000  

Delek Drilling LP

      333,802   
1,536,664  

Isramco Negev 2 LP *

      329,932   
5,000  

Noble Energy Inc.

      341,800   
1,900  

Paz Oil Co. Ltd.

      300,310   
2,100,000  

Ratio Oil Exploration LP *

      277,028   
    

 

 

  
       1,917,285   
    

 

 

  
 

PHARMACEUTICALS - 5.0 %

   
39,000  

OPKO Health Inc. *

      331,890   
3,100  

Taro Pharmaceutical Industries Ltd. *

      476,966   
    

 

 

  
       808,856   
    

 

 

  

 

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

 

50

Schedule of Investments  |  Israel Common Values (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

REAL ESTATE - 11.2 %

   
105,000  

Amot Investments Ltd.

      $ 344,860   
7,500  

Azrieli Group

      257,526   
27,000  

Gazit-Globe Ltd.

      336,758   
162,000  

Industrial Buildings Corp.

      290,176   
34,000  

Jerusalem Economy Ltd.

      271,051   
11,366  

Melisron Ltd.

      305,540   
    

 

 

  
       1,805,911   
    

 

 

  
 

SEMICONDUCTORS - 6.7 %

   
7,000  

Mellanox Technologies Ltd. *

      314,090   
33,533  

Nova Measuring Instruments Ltd. *

      362,156   
40,100  

Tower Semiconductor Ltd. *

      407,817   
    

 

 

  
       1,084,063   
    

 

 

  
 

SOFTWARE - 8.8 %

   
5,100  

Check Point Software Technologies Ltd. *

      353,124   
42,900  

Magic Software Enterprises Ltd.

      297,297   
18,000  

RADWARE Ltd. *

      317,880   
8,000  

Verint Systems Inc. *

      444,880   
    

 

 

  
                   1,413,181   
    

 

 

  
 

TELECOMMUNICATIONS - 10.8 %

   
15,400  

Allot Communications Ltd. *

      175,868   
28,200  

Cellcom Israel, Ltd. *

      309,636   
14,000  

EZchip Semiconductor Ltd.

      337,680   
8,700  

NICE Systems Ltd. (ADR)

      354,873   
43,000  

Partner Communications Co. Ltd. (ADR) *

      303,150   
9,200  

Silicom Ltd.

      268,180   
    

 

 

  
       1,749,387   
    

 

 

  
 

TOTAL COMMON STOCKS (Cost - $12,872,458)

      15,186,602   
    

 

 

  
 

REITs - 2.0 %

   
45,000  

Alony Hetz Properties & Investments Ltd. (Cost - $274,334)

      324,910   
    

 

 

  
 

MONEY MARKET FUND - 4.2 %

   
676,183  

Fidelity Institutional Money Market Portfolio, 0.01% (Cost $676,183)(A)

      676,183   
    

 

 

  
 

TOTAL INVESTMENTS (Cost $13,822,975)(B) - 100.3 %

      $ 16,187,695   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - (0.3) %

      (40,710)   
    

 

 

  
 

NET ASSETS - 100.0 %

      $ 16,146,985   
    

 

 

  

* Non-income producing securities.

(ADR) American Depositary Receipt

REIT - Real Estate Investment Trust

(A) Variable rate security; the rate shown represents the yield at September 30, 2014.

(B) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $14,624,723 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

 

Unrealized appreciation      $             2,897,151    

Unrealized depreciation

      (1,334,179)   
  

 

 

  

Net unrealized appreciation

      $             1,562,972    
  

 

 

  

 

Diversification of Assets  

 

  
Country    % of Net Assets  

 

  

Israel

      89.14%   

United States

      11.12%   
  

 

 

  

Total

      100.25%   
  

 

 

  

Other Assets Less Liabilities - Net

      -0.25%   
  

 

 

  

Grand Total

                          100.00%   
  

 

 

  

 

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

51

Schedule of Investments  |  Defensive Strategies

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

COMMON STOCK - 26.0 %

   
 

CHEMICALS - 5.5 %

   
3,996  

Agrium, Inc.

      $             355,644   
959  

American Vanguard Corp.

      10,741   
4,448  

CF Industries Holdings, Inc.

      1,241,971   
1,323  

FMC Corp.

      75,662   
5,759  

Intrepid Potash, Inc. *

      88,977   
11,989  

K+S AG

      339,989   
7,761  

Mosaic Co.

      344,666   
19,011  

Potash Corp. of Saskatchewan, Inc.

      657,020   
768  

Rayonier Advanced Materials, Inc.

      25,275   
8,356  

Sociedad Quimica y Minera de Chile SA (ADR)

      218,426   
4,328  

Syngenta AG (ADR)

      274,265   
5,904  

Uralkali OJSC (GDR)

      104,370   
    

 

 

  
       3,737,006   
    

 

 

  
 

COAL - 0.0 %

   
1,103  

Peabody Energy Corp.

      13,655   
    

 

 

  
 

ENVIRONMENTAL CONTROL - 0.1 %

   
3,171  

Darling Ingredients, Inc. *

      58,093   
    

 

 

  
 

FOOD - 0.7 %

   
888  

Hormel Foods Corp.

      45,634   
2,468  

Ingredion, Inc.

      187,050   
6,770  

Tyson Foods, Inc.

      266,535   
    

 

 

  
       499,219   
    

 

 

  
 

IRON / STEEL - 1.8 %

   
1,178  

Allegheny Technologies, Inc.

      43,704   
6,888  

ArcelorMittal

      94,297   
6,601  

JFE Holdings, Inc.

      131,725   
55,828  

Nippon Steel & Sumitomo Metal Corp.

      144,877   
979  

POSCO (ADR)

      74,306   
502  

Reliance Steel & Aluminum Co.

      34,337   
11,215  

Severstal OAO (ADR)

      111,569   
2,358  

ThyssenKrupp AG *

      61,866   
49,261  

Vale SA (ADR)

      542,364   
    

 

 

  
                   1,239,045   
    

 

 

  
 

MACHINERY - 0.5 %

   
3,416  

AGCO Corp.

      155,291   
2,315  

CNH Industrial NV

      18,358   
2,525  

Joy Global, Inc.

      137,714   
    

 

 

  
       311,363   
    

 

 

  
 

MINING - 6.6 %

   
4,028  

Agnico Eagle Mines Ltd.

      116,933   
3,102  

Allied Nevada Gold Corp. *

      10,268   
7,252  

Anglo American PLC

      162,746   
        28,418  

AngloGold Ashanti Ltd. (ADR) *

      341,016   
2,159  

Antofagasta PLC

      25,241   
11,197  

BHP Billiton Ltd. (ADR)

      659,279   
234  

BHP Billiton PLC (ADR)

      12,994   
451  

Cameco Corp.

      7,965   
8,295  

Cia de Minas Buenaventura SA (ADR)

      96,056   
1,877  

Coeur d’Alene Mines Corp. *

      9,310   
20,805  

Eldorado Gold Corp.

      140,226   
1,198  

First Quantum Minerals Ltd.

      23,169   
3,802  

Franco-Nevada Corp.

      185,842   
15,487  

Freeport-McMoRan Copper & Gold, Inc.

      505,651   
47,005  

Glencore International PLC

      261,582   
9,446  

Gold Fields Ltd. (ADR)

      36,839   
8,495  

Goldcorp, Inc.

      195,640   
7,047  

Harmony Gold Mining Co. Ltd. (ADR) *

      15,222   
5,932  

Hecla Mining Co.

      14,711   
6,495  

IAMGOLD Corp. *

      17,926   
549  

Kazakhmys PLC *

      2,345   

 

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

 

52

Schedule of Investments  |  Defensive Strategies (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

MINING (Continued) - 6.6 %

   
39,028  

Kinross Gold Corp. *

      $ 128,792   
5,670  

MMC Norilsk Nickel OJSC (ADR)

      105,349   
4,211  

New Gold, Inc. *

      21,266   
4,098  

Newmont Mining Corp.

      94,459   
2,912  

Pan American Silver Corp.

      31,974   
2,323  

Randgold Resources Ltd. (ADR)

      157,012   
8,492  

Rio Tinto PLC (ADR)

      417,637   
2,101  

Royal Gold, Inc.

      136,439   
987  

Sesa Goa, Ltd. (ADR)

      17,036   
16,167  

Silver Wheaton Corp.

      322,208   
5,122  

Southern Copper Corp.

      151,867   
3,943  

Teck Resources Ltd.

      74,811   
7,265  

Yamana Gold, Inc.

      43,590   
    

 

 

  
                   4,543,401   
    

 

 

  
 

OIL & NATURAL GAS - 8.5 %

   
492  

Anadarko Petroleum Corp.

      49,908   
2,775  

Apache Corp.

      260,489   
14,836  

BG Group PLC

      274,245   
1,428  

Canadian Natural Resources Ltd.

      55,463   
1,966  

Cenovus Energy, Inc.

      52,988   
901  

Chesapeake Energy Corp.

      20,714   
9,965  

ConocoPhillips

      762,522   
2,644  

Devon Energy Corp.

      180,268   
1,870  

Encana Corp.

      39,663   
1,233  

Ensco PLC - Cl. A

      50,935   
1,914  

EOG Resources, Inc.

      189,524   
        23,500  

Inpex Corp.

      332,025   
15,277  

Lukoil OAO (ADR)

      779,127   
14,378  

Marathon Oil Corp.

      540,469   
647  

Noble Energy, Inc.

      44,229   
901  

NOVATEK OAO (GDR)

      93,884   
5,432  

Occidental Petroleum Corp.

      522,287   
7,011  

Petroleo Brasileiro SA (ADR)

      99,486   
244  

Pioneer Natural Resources Co.

      48,060   
2,957  

Reliance Industries Ltd. (GDR)

      90,189   
13,084  

Rosneft OAO (GDR)

      76,240   
64  

Seventy Seven Energy, Inc. *

      1,519   
2,812  

Southwestern Energy Co. *

      98,279   
2,782  

Statoil ASA (ADR)

      75,559   
14,122  

Total SA

      917,594   
2,350  

Transocean Ltd.

      75,130   
2,181  

Valero Energy Corp.

      100,915   
    

 

 

  
       5,831,711   
    

 

 

  
 

OIL & GAS SERVICES - 1.9 %

   
2,827  

Baker Hughes, Inc.

      183,924   
1,449  

Cameron International Corp. *

      96,184   
1,954  

FMC Technologies, Inc. *

      106,122   
11,405  

Halliburton Co.

      735,737   
2,210  

National Oilwell Varco, Inc.

      168,181   
552  

NOW, Inc. *

      16,786   
    

 

 

  
       1,306,934   
    

 

 

  
 

PIPELINES - 0.3 %

   
3,591  

Kinder Morgan, Inc.

      137,679   
1,592  

TransCanada Corp.

      82,142   
    

 

 

  
       219,821   
    

 

 

  
 

WATER - 0.1 %

   
10,864  

Cia de Saneamento Basico do Estado de Sao Paulo

      88,107   
    

 

 

  
 

TOTAL COMMON STOCK (Cost - $18,864,652)

      17,848,355   
    

 

 

  

 

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

 

53

Schedule of Investments  |  Defensive Strategies (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

REITs - 29.3 %

   
5,000      

Acadia Realty Trust

      $ 137,900   
4,000      

Apartment Investment & Management Co.

      127,280   
4,350      

AvalonBay Communities, Inc.

      613,220   
8,600      

Boston Properties, Inc.

      995,536   
10,700      

Brandywine Realty Trust

      150,549   
5,700      

Camden Property Trust

      390,621   
13,000      

CBL & Associates Properties, Inc.

      232,700   
31,100      

DDR Corp.

      520,303   
39,700      

DiamondRock Hospitality Co.

      503,396   
10,300      

Douglas Emmett, Inc.

      264,401   
16,600      

Education Realty Trust, Inc.

      170,648   
4,700      

Equity Lifestyle Properties, Inc.

      199,092   
16,300      

Equity Residential

      1,003,754   
4,754      

Essex Property Trust, Inc.

      849,778   
7,800      

Extra Space Storage, Inc.

      402,246   
2,500      

Federal Realty Investment Trust

      296,150   
10,100      

FelCor Lodging Trust, Inc.

      94,536   
18,800      

First Industrial Realty Trust, Inc.

      317,908   
7,400      

First Potomac Realty Trust

      86,950   
17,700      

HCP, Inc.

      702,867   
8,700      

Health Care REIT, Inc.

      542,619   
5,400      

Highwoods Properties, Inc.

      210,060   
20,300      

Hospitality Properties Trust

      545,055   
5,500      

Kilroy Realty Corp.

      326,920   
27,000      

Kimco Realty Corp.

      591,570   
23,700      

Lexington Realty Trust

      232,023   
11,000      

Liberty Property Trust

      365,860   
13,963      

Macerich Co.

      891,258   
4,208      

Mid-America Apartment Communities, Inc.

      276,255   
6,900      

National Retail Properties, Inc.

      238,533   
1,183      

Plum Creek Timber Co., Inc.

      46,149   
21,494      

Prologis, Inc.

      810,324   
4,000      

PS Business Parks, Inc.

      304,560   
5,700      

Public Storage

      945,288   
6,406      

Rayonier, Inc.

      199,483   
3,700      

Regency Centers Corp.

      199,171   
12,229      

Simon Property Group, Inc.

      2,010,692   
8,150      

SL Green Realty Corp.

      825,758   
27,200      

Strategic Hotels & Resorts, Inc. *

      316,880   
7,200      

Summit Hotel Properties, Inc.

      77,616   
5,700      

Taubman Centers, Inc.

      416,100   
14,200      

UDR, Inc.

      386,950   
13,259      

Ventas, Inc.

      821,395   
6,514      

Washington Prime Group, Inc.

      113,864   
10,100      

Weingarten Realty Investors

      318,150   
    

 

 

  
 

TOTAL REITs (Cost - $17,674,951)

                  20,072,368   
    

 

 

  
 

EXCHANGE TRADED FUNDS - 8.4 %

   
19,000      

iShares Silver Trust *

      310,650   
82,100      

PowerShares DB Agriculture Fund *

      2,097,655   
69,700      

PowerShares DB Base Metals Fund *

      1,178,627   
49,800      

PowerShares DB Commodity Index Tracking Fund *

      1,156,356   
25,000      

PowerShares DB Energy Fund *

      672,997   
2,900      

SPDR Gold Shares *

      337,009   
    

 

 

  
 

TOTAL EXCHANGE TRADED FUNDS (Cost - $6,464,282)

      5,753,294   
    

 

 

  
Par Value           
 

BONDS & NOTES - 31.3 %

   
 

GOVERNMENT MORTGAGE-BACKED SECURITIES - 2.8 %

   
$            884,844      

GNMA Pool MA0155, 4.000%, 6/20/2042

      939,964   
483,959      

GNMA Pool 5204, 4.500%, 10/20/2041

      526,765   
432,652      

GNMA Pool 4947, 5.000%, 2/20/2041

      481,323   
    

 

 

  
 

TOTAL GOVERNMENT MORTGAGE-BACKED SECURITIES (Cost - $1,924,816)

      1,948,052   
    

 

 

  

 

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

 

54

Schedule of Investments  |  Defensive Strategies (Continued)

As of September 30, 2014

 

 

  
Par Value        Fair Value  

 

  
 

COPORATE BONDS - 3.3 %

   
 

CHEMICALS - 0.6 %

   
$        400,000      

LYB International Finance BV, 4.000%, 7/15/2023

      $ 414,602   
    

 

 

  
 

OIL & GAS - 0.7 %

   
500,000      

Petrobras International Finance Co. SA, 3.50%, 2/6/2017

      509,940   
    

 

 

  
 

PIPELINES - 1.3 %

   
400,000      

DCP Midstream Operating LP, 2.700%, 4/1/2019

      401,402   
400,000      

Energy Transfer Partners LP, 6.700%, 7/1/2018

      460,870   
    

 

 

  
       862,272   
    

 

 

  
 

REITs - 0.7 %

   
500,000      

Health Care REIT, Inc., 3.75%, 3/15/2023

      494,538   
    

 

 

  
 

TOTAL CORPORATE BONDS (Cost - $2,242,898)

      2,281,352   
    

 

 

  
 

TREASURY INFLATION PROTECTED SECURITIES (TIPS) - 25.2 %

   
2,575,000      

TIPS, 1.125%, 1/15/2021

      2,943,860   
500,000      

TIPS, 1.250%, 7/15/2020

      580,369   
1,650,000      

TIPS, 1.625%, 1/15/2018

      1,993,888   
2,535,000      

TIPS, 1.750%, 1/15/2028

      3,212,776   
745,000      

TIPS, 2.000%, 1/15/2016

      926,219   
850,000      

TIPS, 2.000%, 1/15/2026

      1,162,501   
1,550,000      

TIPS, 2.125%, 1/15/2019

      1,880,196   
625,000      

TIPS, 2.125%, 2/15/2041

      847,244   
1,050,000      

TIPS, 2.375%, 1/15/2017

      1,325,290   
395,000      

TIPS, 2.375%, 1/15/2025

      585,305   
1,350,000      

TIPS, 2.500%, 1/15/2029

      1,830,000   
    

 

 

  
 

TOTAL TREASURY INFLATION PROTECTED SECURITIES (TIPS) (Cost - $17,675,207)

                  17,287,648   
    

 

 

  
Shares           
 

MONEY MARKET FUND - 4.8 %

   
3,262,240      

Fidelity Institutional Money Market Portfolio, 0.01% (Cost - $3,262,240)(A)

      3,262,240   
    

 

 

  
 

TOTAL INVESTMENTS (Cost - $68,109,046)(B) - 99.8 %

      $ 68,453,309   
    

 

 

  
 

OTHER ASSETS IN EXCESS OF LIABILITIES - NET - 0.2 %

      158,466   
    

 

 

  
 

NET ASSETS - 100.0 %

      $ 68,611,775   
    

 

 

  

* Non-income producing securities.

GNMA - Government National Mortgage Association

REIT - Real Estate Investment Trust

(ADR) American Depositary Receipt

(GDR) Global Depositary receipt

(A) Variable rate security; the rate shown represents the yield at September 30, 2014.

(B) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $68,098,755 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

 

Unrealized appreciation

      $             4,800,117    

Unrealized depreciation

      (4,445,563)   
  

 

 

  

Net unrealized appreciation

      $             354,554    
  

 

 

  

 

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

 

55

Schedule of Investments  |  Strategic Growth

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

MUTUAL FUNDS (A) - 100.3 %

   
290,580  

Timothy Plan Aggressive Growth Fund

      $ 2,667,524   
502,579  

Timothy Plan Defensive Strategies Fund

      5,719,354   
248,955  

Timothy Plan Emerging Markets Fund

      2,546,812   
426,068  

Timothy Plan Growth & Income Fund *

      4,665,444   
630,532  

Timothy Plan High Yield Bond Fund

      5,983,749   
784,166  

Timothy Plan International Fund

      6,971,235   
187,486  

Timothy Plan Israel Common Values Fund

      2,307,955   
726,025  

Timothy Plan Large/Mid Cap Growth Fund

      6,287,374   
304,326  

Timothy Plan Large/Mid Cap Value Fund

      5,967,827   
143,014  

Timothy Plan Small Cap Value Fund

      2,828,821   
    

 

 

  
 

TOTAL MUTUAL FUNDS (Cost - $39,869,793)

      45,946,095   
    

 

 

  
 

TOTAL INVESTMENTS (Cost - $39,869,793)(B) - 100.3 %

      $ 45,946,095   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - (0.3) %

      (153,210)   
    

 

 

  
 

NET ASSETS - 100.0 %

      $             45,792,885   
    

 

 

  

* Non-income producing securities.

(A) Affiliated Funds - Class A

(B) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $41,316,672 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

 

Unrealized appreciation

      $             6,346,552    

Unrealized depreciation

      (1,717,129)   
  

 

 

  

Net unrealized appreciation

      $             4,629,423    
  

 

 

  

 

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

56

Schedule of Investments  |  Conservative Growth

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

MUTUAL FUNDS (A) - 99.7 %

   
146,706  

Timothy Plan Aggressive Growth Fund

      $ 1,346,760   
629,393  

Timothy Plan Defensive Strategies Fund

      7,162,496   
171,606  

Timothy Plan Emerging Markets Fund

      1,755,528   
1,672,013  

Timothy Plan Fixed Income Fund

      17,439,094   
544,933  

Timothy Plan Growth & Income Fund *

      5,967,016   
537,887  

Timothy Plan High Yield Bond Fund

      5,104,545   
666,622  

Timothy Plan International Fund

      5,926,273   
194,497  

Timothy Plan Israel Common Values Fund

      2,394,258   
566,804  

Timothy Plan Large/Mid Cap Growth Fund

      4,908,520   
234,925  

Timothy Plan Large/Mid Cap Value Fund

      4,606,876   
157,007  

Timothy Plan Small Cap Value Fund

      3,105,603   
    

 

 

  
 

TOTAL MUTUAL FUNDS (Cost - $56,247,717)

      59,716,969   
    

 

 

  
 

MONEY MARKET FUND - 0.3 %

   
162,747  

Fidelity Institutional Money Market Portfolio, 0.01% (Cost - $162,747)(B)

      162,747   
    

 

 

  
 

TOTAL INVESTMENTS (Cost - $56,410,464)(C) - 100.0 %

                $ 59,879,716   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - 0.0 %

      22,124   
    

 

 

  
 

NET ASSETS - 100.0 %

      $ 59,901,840   
    

 

 

  

* Non-income producing securities.

(A) Affiliated Funds - Class A

(B) Variable rate security; the rate shown represents the yield at September 30, 2014.

(C) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $56,979,023 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

 

Unrealized appreciation

      $             3,972,612    

Unrealized depreciation

      (1,071,919)   
  

 

 

  

Net unrealized appreciation

      $             2,900,693    
  

 

 

  

 

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

 

57

Schedule of Investments  |  Emerging Markets

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

COMMON STOCK - 85.9 %

   
 

AEROSPACE/DEFENSE - 2.5 %

   
7,820  

Embraer SA (ADR)

      $ 306,700   
    

 

 

  
 

AGRICULTURE- 2.1 %

   
28,300  

Adecoagro SA *

      249,040   
    

 

 

  
 

AIRLINES - 1.8 %

   
2,067  

Copa Holdings SA - Cl. A

      221,769   
    

 

 

  
 

APPAREL - 0.7 %

   
29,000  

Yue Yuen Industrial Holdings Ltd.

      87,949   
    

 

 

  
 

AUTOMOTIVE - 4.7 %

   
4,270  

China Yuchai International Ltd.

      79,166   
1,250  

Hyundai Mobis Co. Ltd.

      304,442   
3,700  

Kia Motors Corp.

      188,294   
    

 

 

  
       571,902   
    

 

 

  
 

BANKS - 14.4 %

   
7,600  

Banco Bradesco SA

      109,564   
12,800  

Banco do Brasil SA

      133,054   
2,880  

Banco Latinoamericano de Comercio Exterior SA

      88,358   
13,480  

Erste Group Bank AG

      308,728   
31,760  

Sberbank of Russia (ADR)

      249,888   
12,730  

Standard Chartered PLC

      235,419   
13,440  

TCS Group Holding PLC (GDR) *

      63,034   
78,000  

Turkiye Garanti Bankasi AS

      273,720   
144,200  

Turkiye Vakiflar Bankasi Tao

      266,932   
    

 

 

  
                   1,728,697   
    

 

 

  
 

BUILDING MATERIALS - 2.1 %

   
15,284  

Cemex SAB de CV (ADR) *

      199,303   
145,724  

Desarrolladora Homex SAB de CV * (A)

      24,041   
373,450  

Urbi Desarrollos Urbanos SAB de CV * (A)

      25,593   
    

 

 

  
       248,937   
    

 

 

  
 

CHEMICALS - 1.6 %

   
198,500  

Yingde Gases

      187,628   
    

 

 

  
 

COMMERCIAL SERVICES - 1.2 %

   
52,200  

ITE Group PLC

      143,469   
    

 

 

  
 

DISTRIBUTION / WHOLESALE - 2.0 %

   
60,530  

Aygaz AS

                  246,931   
    

 

 

  
 

DIVERSIFIED FINANCIAL SERVICES - 6.4 %

   
6,400  

Hana Financial Group, Inc.

      233,508   
6,840  

KB Financial Group, Inc.

      249,886   
6,100  

Shinham Financial Group Co., Ltd.

      280,949   
    

 

 

  
       764,343   
    

 

 

  
 

ELECTRIC - 6.6 %

   
7,590  

APR Energy PLC

      66,705   
55,830  

Centrais Eletricas Brasileiras SA (ADR)

      150,741   
8,600  

Cia Paranaense de Energia

      82,092   
10,480  

Cia Paranaense de Energia (ADR)

      143,262   
9,670  

Reliance Infrastructure Ltd. (GDR)

      268,826   
46,980  

RusHydro JSC (ADR)

      84,564   
    

 

 

  
       796,190   
    

 

 

  

 

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

58

Schedule of Investments  |  Emerging Markets (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

FOOD - 7.2 %

   
344,000  

First Pacific Co., Ltd.

      $ 358,384   
90  

Lotte Confectionery Co., Ltd.

      185,849   
115,100  

Marfrig Alimentos SA *

      316,733   
    

 

 

  
       860,966   
    

 

 

  
 

HOLDING COMPANY - 0.6 %

   
10,260  

Haw Par Corp., Ltd.

      70,562   
    

 

 

  
 

INVESTMENT COMPANIES - 1.0 %

   
8,670  

Grupo Aval Acciones y Valores (ADR)

      117,478   
    

 

 

  
 

IRON/STEEL - 5.2 %

   
1,460  

POSCO

      454,516   
6,900  

Ternium SA (ADR)

      165,945   
    

 

 

  
       620,461   
    

 

 

  
 

OIL & NATURAL GAS - 6.3 %

   
7,664  

Lukoil OAO (ADR)

      390,098   
25,099  

Petroleo Brasileiro SA (ADR)

      373,724   
    

 

 

  
       763,822   
    

 

 

  
 

PHARMACEUTICAL - 0.7 %

   
89,780  

Selcuk Ecza Deposu Ticaret ve Sanayi A.S.

      82,309   
    

 

 

  
 

RETAIL - 7.2 %

   
2,110,000  

Bosideng International Holdings Ltd.

      304,328   
50,000  

Chow Tai Fook Jewellery Group Ltd.

      65,033   
136,000  

Lifestyle International Holdings Ltd. (A)

      255,702   
82,000  

Luk Fook Holdings International Ltd.

      238,123   
    

 

 

  
       863,186   
    

 

 

  
 

SEMICONDUCTORS - 4.1 %

   
440  

Samsung Electronics Co., Ltd.

      494,051   
    

 

 

  
 

TELECOMMUNICATIONS - 2.2 %

   
510,700  

XL Axiata TBK PT

      259,792   
    

 

 

  
 

TEXTILES - 0.7 %

   
164,000  

Weiqiao Textile Co.

      81,944   
    

 

 

  
 

TRANSPORTATION - 1.3 %

   
18,500  

Globaltrans Investment PLC (GDR)

      155,400   
    

 

 

  
 

WATER - 3.3 %

   
48,900  

Cia de Saneamento Basico do Estado de Sao Paulo

      396,303   
    

 

 

  
 

TOTAL COMMON STOCK (Cost - $11,025,583)

                  10,319,829   
    

 

 

  
 

PREFERRED STOCK - 4.7 %

   
6,700  

Banco Bradesco SA

      95,742   
2,050  

Hyundai Mobis

      229,243   
346,500  

Surgutneftegas OAO *

      238,899   
    

 

 

  
 

TOTAL PREFERRED STOCK (Cost - $489,027)

      563,884   
    

 

 

  

 

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

59

Schedule of Investments  |  Emerging Markets (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

REITs - 4.0 %

   
175,710  

Mexico Real Estate Management SA de CV

      $ 310,053   
76,862  

PLA Administradora Industrial S de RL de CV

      169,336   
    

 

 

  
 

TOTAL REITs (Cost - $459,488)

      479,389   
    

 

 

  
 

MONEY MARKET FUND - 2.9 %

   
350,124  

Fidelity Institutional Money Market Portfolio, 0.01% (Cost - $350,124)(B)

      350,124   
    

 

 

  
 

TOTAL INVESTMENTS (Cost - $12,324,222)(C) - 97.5 %

      $             11,713,226   
    

 

 

  
 

OTHER ASSETS IN EXCESS OF LIABILITIES - NET - 2.5 %

      305,775   
    

 

 

  
 

NET ASSETS - 100.0 %

      $ 12,019,001   
    

 

 

  

* Non-income producing securities.

(ADR) American Depositary Receipt

(GDR) Global Depositary receipt

REITs - Real Estate Investment Trusts

(A) Illiquid security; the Advisor has determined the security to be illiquid. At September 30, 2014, the securities amounted to 2.5% of net assets.

(B) Variable rate security; the rate shown represents the yield at September 30, 2014.

(C) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $12,363,822 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized appreciation

     $               735,112     

Unrealized depreciation

     (1,385,708)    
 

 

 

  

Net unrealized depreciation

     $               (650,596)    
 

 

 

  

 

Diversification of Assets       

 

  
Country    % of Net Assets    

 

  

Austria

      2.57%   

Brazil

      17.54%   

Britain

      3.15%   

China

      0.68%   

Colombia

      0.98%   

Cyprus

      1.82%   

Hong Kong

      12.46%   

India

      2.24%   

Indonesia

      2.16%   

Luxembourg

      3.45%   

Mexico

      6.06%   

Panama

      2.58%   

Russia

      8.02%   

United States

      3.47%   

Singapore

      1.25%   

South Korea

      21.80%   

Turkey

      7.24%   
  

 

 

  

Total

      97.47%   
  

 

 

  

Other Assets in Excess of Liabilities - Net

      2.53%   
  

 

 

  

Grand Total

          100.00%   
  

 

 

  

 

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

60

Schedule of Investments  |  Growth & Income

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

COMMON STOCK - 44.4 %

   
 

AEROSPACE/DEFENSE - 0.6 %

   
1,300  

Alliant Techsystems, Inc.

      $ 165,932   
    

 

 

  
 

AGRICULTURE - 0.9 %

   
4,000  

Andersons, Inc.

      251,520   
    

 

 

  
 

AUTO PARTS & EQUIPMENT - 2.2 %

   
6,500  

Goodyear Tire & Rubber Co.

      146,803   
3,300  

Magna International, Inc.

      313,203   
4,000  

Standard Motor Products, Inc.

      137,720   
    

 

 

  
       597,726   
    

 

 

  
 

BANKS - 0.6 %

   
5,145  

Southside Bancshares, Inc.

      171,071   
    

 

 

  
 

BEVERAGES - 0.9 %

   
4,000  

Dr Pepper Snapple Group, Inc.

      257,240   
    

 

 

  
 

BIOTECHNOLOGY - 0.3 %

   
10,000  

PDL BioPharma, Inc.

      74,700   
    

 

 

  
 

CHEMICALS - 4.3 %

   
3,500  

Celanese Corp.

      204,820   
900  

CF Industries Holdings, Inc.

      251,298   
10,000  

Huntsman Corp.

      259,900   
5,000  

Olin Corp.

      126,250   
4,000  

Westlake Chemical Corp.

      346,360   
    

 

 

  
       1,188,628   
    

 

 

  
 

COMMERCIAL SERVICES - 5.7 %

   
2,800  

Deluxe Corp.

      154,448   
5,000  

DeVry Education Group, Inc.

      214,050   
7,000  

H&R Block, Inc.

      217,070   
6,000  

Multi-Color Corp.

      272,880   
18,200  

RR Donnelley & Sons Co.

      299,572   
3,900  

United Rentals, Inc. *

      433,290   
    

 

 

  
                   1,591,310   
    

 

 

  
 

COMPUTERS - 1.8 %

   
6,000  

Insight Enterprises, Inc. *

      135,780   
3,900  

Western Digital Corp.

      379,548   
    

 

 

  
       515,328   
    

 

 

  
 

DISTRIBUTION/WHOLESALE - 0.6 %

   
2,800  

Arrow Electronics, Inc. *

      154,980   
    

 

 

  
 

DIVERSIFIED FINANCIAL SERVICES - 0.7 %

   
4,000  

Piper Jaffray Cos *

      208,960   
    

 

 

  
 

ELECTRIC - 2.6 %

   
10,500  

Empire District Electric Co.

      253,575   
5,200  

IDACORP, Inc.

      278,772   
5,700  

Westar Energy, Inc.

      194,484   
    

 

 

  
       726,831   
    

 

 

  
 

ELECTRONICS - 0.8 %

   
5,600  

Avnet, Inc.

      232,400   
    

 

 

  

 

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

61

Schedule of Investments  |  Growth & Income (Continued)

As of September 30, 2014

 

 

  
Shares        Fair Value  

 

  
 

ENERGY-ALTERNATE SOURCES - 0.8 %

   
6,000  

Green Plains, Inc.

      $ 224,340   
    

 

 

  
 

FOOD - 0.9 %

   
3,000  

Sanderson Farms, Inc.

      263,850   
    

 

 

  
 

GAS - 0.8 %

   
6,600  

UGI Corp.

      224,994   
    

 

 

  
 

HOUSEHOLD PRODUCTS/WARES - 1.6 %

   
3,900  

Helen of Troy Ltd. *

      204,828   
4,000  

Jarden Corp. *

      240,440   
    

 

 

  
       445,268   
    

 

 

  
 

INSURANCE - 5.2 %

   
4,000  

Allied World Assurance Co. Holdings AG

      147,360   
4,000  

American Financial Group, Inc.

      231,560   
7,800  

Montpelier Re Holdings Ltd.

      242,502   
7,400  

Protective Life Corp.

      513,634   
9,100  

Unum Group

      312,858   
    

 

 

  
                   1,447,914   
    

 

 

  
 

MISCELLANEOUS MANUFACTURING - 2.1 %

   
4,700  

American Railcar Industries, Inc.

      347,424   
6,000  

Smith & Wesson Holding Corp. *

      56,640   
4,000  

Trinity Industries, Inc.

      186,880   
    

 

 

  
       590,944   
    

 

 

  
 

OIL & NATURAL GAS - 5.7 %

   
70,000  

Abraxas Petroleum Corp. *

      369,600   
2,800  

Cimarex Energy Co.

      354,284   
2,800  

ConocoPhillips

      214,256   
50,000  

SandRidge Energy, Inc. *

      214,500   
5,000  

Valero Energy Corp.

      231,350   
40,000  

Warren Resources, Inc. *

      212,000   
    

 

 

  
       1,595,990   
    

 

 

  
 

OIL & GAS SERVICES - 1.3 %

   
3,000  

Baker Hughes, Inc.

      195,180   
2,500  

Halliburton Co.

      161,275   
    

 

 

  
       356,455   
    

 

 

  
 

PHARMACEUTICALS - 1.0 %

   
4,300  

Omnicare, Inc.

      267,718   
    

 

 

  
 

RETAIL - 2.3 %

   
2,200  

Asbury Automotive Group, Inc. *

      141,724   
2,300  

Dillard’s, Inc.

      250,654   
4,400  

Foot Locker, Inc.

      244,860   
    

 

 

  
       637,238   
    

 

 

  
 

TELECOMMUNICATIONS - 0.7 %

   
57,000  

Vonage Holdings Corp. *

      186,960   
    

 

 

  
 

TOTAL COMMON STOCK (Cost - $11,383,343)

      12,378,297   
    

 

 

  

 

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

62

Schedule of Investments  |  Growth & Income (Continued)

As of September 30, 2014

 

 

  
Par Value        Fair Value  

 

  
 

BONDS & NOTES - 49.0 %

   
 

GOVERNMENT NOTES & BONDS - 49.0 %

   
$            200,000      

Federal Home Loan Bank, 2.000%, 8/22/2014 (A)

      $ 190,370   
250,000      

Federal Home Loan Mortgage Corp., 1.500%, 12/27/2018 (A)

      250,590   
3,000,000      

United States Treasury Note/Bond, 0.250%, 5/15/2016

      2,992,089   
650,000      

United States Treasury Note/Bond, 0.375%, 2/15/2016

      650,889   
1,900,000      

United States Treasury Note/Bond, 1.000%, 9/30/2016

      1,914,472   
1,000,000      

United States Treasury Note/Bond, 1.000%, 3/31/2017

      1,003,164   
1,000,000      

United States Treasury Note/Bond, 1.625%, 8/15/2022

      949,727   
1,000,000      

United States Treasury Note/Bond, 1.750%, 5/15/2023

      947,969   
1,000,000      

United States Treasury Note/Bond, 2.750%, 11/15/2023

      1,025,156   
1,400,000      

United States Treasury Note/Bond, 4.625%, 2/15/2017

      1,525,782   
500,000      

United States Treasury Note/Bond, 3.125%, 2/15/2042

      495,234   
1,500,000      

United States Treasury Note/Bond, 3.825%, 8/15/2040

      1,698,633   
    

 

 

  
 

TOTAL BONDS & NOTES (Cost - $13,441,476)

      13,644,075   
    

 

 

  
    
Shares           
 

MONEY MARKET FUND - 6.5 %

   
1,819,491      

Fidelity Institutional Money Market Portfolio, 0.01% (Cost - $1,819,491)(B)

      1,819,491   
    

 

 

  
 

TOTAL INVESTMENTS - 99.9 % (Cost - $26,644,310)(C)

      $ 27,841,863   
    

 

 

  
 

OTHER ASSETS LESS LIABILITIES - NET - 0.1 %

      17,854   
    

 

 

  
 

TOTAL NET ASSETS - 100.0 %

      $             27,859,717   
    

 

 

  

* Non-income producing securities.

(A) Step coupon security; interest rate shown reflects the rate currently in effect.

(B) Variable rate security; the rate shown represents the yield at September 30, 2014.

(C) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $26,646,038 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

 

Unrealized appreciation

      $           1,643,021     

Unrealized depreciation

      (447,196)    
  

 

 

  

Net unrealized appreciation

      $ 1,195,825     
  

 

 

  

 

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

63

Timothy Plan Funds

 

Statements of Assets and Liabilities

September 30, 2014

 

 

 

   

Aggressive
Growth

Fund

 

    

International

Fund

 

    

Large/Mid Cap
Growth

Fund

 

    

Small Cap Value
Fund

 

    

Large/Mid Cap
Value

Fund

 

    

Fixed Income
Fund

 

  

 

  

ASSETS:

            

Investments, at cost

     $ 20,417,803          $ 51,357,655          $ 53,434,432          $ 75,004,636          $ 124,614,357          $ 74,583,442     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investments, at value

     $ 22,906,227          $ 58,263,993          $ 62,043,116          $ 80,645,270          $ 157,305,383          $ 75,174,346     

Cash

     528          -          1,240          -          13,568          -     

Dividends and interest receivable

     6,947          48,637          43,275          74,776          174,231          573,925     

Receivable for fund shares sold

     3,822          176,099          131,154          86,885          276,809          88,580     

Receivable for securities sold

     303,587          601,324          394,433          405,031          -          -     

Receivable for foreign tax reclaims

     -          58,288          -          -          3,901          -     

Prepaid expenses and other assets

     23,731          11,136          10,741          12,540          11,670          12,669     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

     23,244,842          59,159,477          62,623,959          81,224,502          157,785,562          75,849,520     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LIABILITIES:

            

Payable for fund shares redeemed

     37,577          29,269          165,886          30,197          513,439          256,390     

Accrued advisory fees

     15,571          49,535          44,702          58,708          113,271          26,173     

Accrued 12b-1 fees

     7,378          14,999          17,465          23,340          45,148          20,284     

Payable for securities purchased

     284,926          518,315          164,917          400,833          -          -     

Accrued expenses and other liabilities

     33,253          41,783          39,604          48,237          73,281          49,681     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Liabilities

     378,705          653,901          432,574          561,315          745,139          352,528     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Assets

     $ 22,866,137          $ 58,505,576          $ 62,191,385          $ 80,663,187          $ 157,040,423          $ 75,496,992     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS CONSIST OF:

            

Paid in capital

     $ 17,798,346          $ 65,455,462          $ 47,365,243          $ 60,395,924          $ 109,486,531          $ 74,240,388     

Accumulated net investment income (loss)

     5,312          (365,861)         11,070          38,593          38,030          505,149     

Accumulated net realized gain (loss) from investments

     2,574,055          (13,490,349)         6,206,388          14,588,036          14,825,068          160,551     

Net unrealized appreciation on investments

     2,488,424          6,906,324          8,608,684          5,640,634          32,690,794          590,904     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Assets

     $     22,866,137          $       58,505,576          $     62,191,385          $     80,663,187          $     157,040,423          $     75,496,992     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Class A

            

Net Assets

     $ 19,267,763          $ 54,709,241          $ 56,073,171          $ 71,996,880          $ 138,820,620          $ 68,274,360     

Shares of beneficial interest outstanding

     2,099,141          6,157,267          6,474,980          3,638,298          7,080,003          6,548,984     

Net Asset Value, offering price and redemption price per share

     $ 9.18          $ 8.89          $ 8.66          $ 19.79          $ 19.61          $ 10.43     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Offering Price Per Share (NAV / 0.945) *(NAV / 0.955)

     $ 9.71          $ 9.41          $ 9.16          $ 20.94          $ 20.75          $ 10.92   * 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Class C

            

Net Assets

     $ 3,458,316          $ 3,335,730          $ 5,928,547          $ 8,134,779          $ 16,778,291          $ 7,119,958     

Shares of beneficial interest outstanding

     425,324          384,593          779,665          494,661          975,883          707,343     

Net Asset Value, offering price and redemption price per share

     $ 8.13          $ 8.67          $ 7.60          $ 16.45          $ 17.19          $ 10.07     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Minimum Redemption Price Per Share (NAV * 0.99)

     $ 8.05          $ 8.58          $ 7.52          $ 16.28          $ 17.02          $ 9.97     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Class I

            

Net Assets

     $ 140,058          $ 460,605          $ 189,667          $ 531,528          $ 1,441,512          $ 102,674     

Shares of beneficial interest outstanding

     15,205          51,856          21,816          26,793          73,441          9,913     

Net Asset Value, offering price and redemption price per share

     $ 9.21          $ 8.88          $ 8.69          $ 19.84          $ 19.63          $ 10.36     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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

64

Timothy Plan Funds

 

Statements of Assets and Liabilities (continued)

September 30, 2014

 

 

 

   

High Yield

Bond

Fund

 

    

Israel Common

Values

Fund

 

    

Defensive

Strategies

Fund

 

    

Strategic Growth

Fund

 

    

Conservative

Growth

Fund

 

    

Emerging

Markets

Fund

 

    

Growth & Income

Fund

 

  
               
               

 

  

ASSETS:

              

Investments, at cost

     $ 43,372,026          $ 13,822,975          $ 68,109,046          $ 39,869,793          $ 56,410,464          $ 12,324,222          $ 26,644,310     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investments, at value

     $ 43,584,440          $ 16,187,695          $ 68,453,309          $ 45,946,095          $ 59,879,716          $ 11,713,226          $ 27,841,863     

Cash

     -          -          351          -          -          -          -     

Brazilian Real (BRL)(Cost $1,495)

     -          -          -          -          -          1,495          -     

New Taiwan Dollar (TWD)(Cost $46,358)

     -          -          -          -          -          45,788          -     

Dividends and interest receivable

     781,378          5,619          162,783          -          -          7,722          53,067     

Receivable for fund shares sold

     67,797          7,512          126,638          4,152          163,293          266,859          121,941     

Receivable for securities sold

     -          -          -          -          -          66,436          -     

Deposit with broker

     -          -          -          -          -            -     

Receivable for foreign tax reclaims

     -          -          13,191          -          -          2,338          446     

Prepaid expenses and other assets

     12,499          19,407          26,018          12,825          15,793          8,585          19,812     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

     44,446,114          16,220,233          68,782,290          45,963,072          60,058,802          12,112,449          28,037,129     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LIABILITIES:

              

Payable for securities purchased

     250,000          -          -          -          -          47,945          -     

Payable for fund shares redeemed

     80,601          31,473          72,690          58,985          79,550          4,703          127,760     

Accrued advisory fees

     21,602          14,275          33,730          26,912          34,675          12,389          19,193     

Accrued 12b-1 fees

     11,422          5,090          22,462          5,436          7,738          3,266          6,824     

Due to broker

     -          -          -          45,995          -          -          -     

Accrued expenses and other liabilities

     33,006          22,410          41,633          32,859          34,999          25,145          23,635     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Liabilities

     396,631          73,248          170,515          170,187          156,962          93,448          177,412     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Assets

     $ 44,049,483          $ 16,146,985          $ 68,611,775          $ 45,792,885          $ 59,901,840          $ 12,019,001          $ 27,859,717     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS CONSIST OF:

              

Paid in capital

     $ 44,550,250          $ 14,754,400          $ 67,791,197          $ 46,443,097          $ 55,030,653          $ 12,009,753          $ 26,704,582     

Accumulated net investment income (loss)

     63,801          (801,748)         652,468          534,610          448,836          (18,863)         (22,909)    

Accumulated net realized gain (loss) from investments

     (776,982)         (170,357)         (175,234)         (7,261,124)         953,099          650,530          (19,509)    

Net unrealized appreciation (depreciation) investments

     212,414          2,364,690          343,344          6,076,302          3,469,252          (622,419)         1,197,553     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Assets

     $     44,049,483          $     16,146,985          $     68,611,775          $     45,792,885          $     59,901,840          $     12,019,001          $     27,859,717     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Class A

              

Net Assets

     $ 41,037,575          $ 13,792,081          $ 54,053,939          $ 36,951,284          $ 47,542,815          $ 10,803,108          $ 24,271,700     

Shares of beneficial interest outstanding

     4,324,334          1,120,850          4,749,938          4,152,678          4,319,272          1,056,457          2,217,253     

Net Asset Value, offering price and redemption price per share

     $ 9.49          $ 12.31          $ 11.38          $ 8.90          $ 11.01          $ 10.23          $ 10.95     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Offering Price Per Share (NAV / 0.945) *(NAV / 0.955)

     $ 9.94   *      $ 13.03          $ 12.04          $ 9.42          $ 11.65          $ 10.83          $ 11.59     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Class C

              

Net Assets

     $ 2,771,112          $ 2,342,191          $ 14,460,730          $ 8,841,601          $ 12,359,025          $ 882,947          $ 2,080,656     

Shares of beneficial interest outstanding

     289,471          194,356          1,309,704          1,085,199          1,209,496          87,468          191,405     

Net Asset Value, offering price and redemption price per share

     $ 9.57          $ 12.05          $ 11.04          $ 8.15          $ 10.22          $ 10.09          $ 10.87     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Minimum Redemption Price Per Share (NAV * 0.99)

     $ 9.47          $ 11.93          $ 10.93          $ 8.07          $ 10.12          $ 9.99          $ 10.76     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Class I

              

Net Assets

     $ 240,796          $ 12,713          $ 97,106          $ -          $ -          $ 332,946          $ 1,507,361     

Shares of beneficial interest outstanding

     25,348          1,035          8,545          -          -          32,479          137,573     

Net Asset Value, offering price and redemption price per share

     $ 9.50          $ 12.29          $ 11.36          $ -          $ -          $ 10.25          $ 10.96     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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

65

Timothy Plan Funds

 

Statements of Operations

For the Year Ended September 30, 2014

 

 

 

    Aggressive           Large/Mid Cap           Large/Mid Cap        
    Growth     International     Growth     Small Cap Value     Value     Fixed Income  
   

Fund

 

    

Fund

 

    

Fund

 

    

Fund

 

    

Fund

 

    

Fund

 

  

 

  

Investment Income:

            

Interest income

     $ 70          $ 219          $ 218          $ 170          $ 508          $ 2,120,482     

Dividend income

     122,791          1,298,711          819,529          1,017,967          2,164,537          -     

Foreign tax withheld

     -          (186,200)         1,184          -          (5,884)         -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Investment Income

     122,861          1,112,730          820,931          1,018,137          2,159,161          2,120,482     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating Expenses:

            

Investment advisory fees

     190,679          503,579          500,518          682,180          1,250,651          439,299     

12b-1 Fees:

            

Class A

     47,679          117,669          132,932          179,532          326,700          164,725     

Class C

     33,318          30,930          56,020          81,234          156,461          73,234     

Administration fees

     49,091          107,275          122,969          170,122          313,471          155,161     

Registration fees

     26,079          27,916          32,681          35,284          38,934          30,746     

Custody fees

     18,998          7,796          15,666          17,358          22,303          12,708     

Printing expenses

     14,811          28,082          31,987          49,240          66,295          34,655     

Non 12b-1 shareholder servicing fees

     14,814          25,904          47,012          39,854          92,080          63,725     

Audit fees

     12,450          13,583          13,793          11,994          13,793          13,231     

Compliance officer fees

     2,305          3,729          4,622          8,445          14,564          6,221     

Miscellaneous expenses

     2,048          143          1,538          1,539          1,544          801     

Trustees’ fees

     2,521          5,408          6,234          8,701          19,404          7,922     

Insurance expenses

     613          1,244          1,829          2,059          4,365          2,347     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Operating Expenses

     415,406          873,258          967,801          1,287,542          2,320,565          1,004,775     

Less: Expenses waived by Advisor

     (2,076)         (2,607)         (2,794)         (3,669)         (7,079)         (113,094)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Operating Expenses

     413,330          870,651          965,007          1,283,873          2,313,486          891,681     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Investment Income (Loss)

     (290,469)         242,079          (144,076)         (265,736)         (154,325)         1,228,801     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized and Unrealized
Gain (Loss) on Investments:

            

Net realized gain (loss) on investments

     3,103,465          2,085,424          7,211,427          16,166,118          15,007,444          381,634     

and foreign currency translations

       (7)             (72)      

Capital gain dividends from REITs

     511          -          -          68,810          92,262          -     

Net change in unrealized appreciation (depreciation) on investments

     (1,227,201)            (964,003)            627,222             (10,727,779)            5,781,747          266,574     

and foreign currency translations

     -          (14)         -          -          (232)         -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Realized and Unrealized Gain on Investments

     1,876,775          1,121,400             7,838,649          5,507,149          20,881,149             648,208     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase in Net Assets
Resulting From Operations

     $       1,586,306          $       1,363,479          $       7,694,573          $       5,241,413          $       20,726,824          $       1,877,009     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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

66

Timothy Plan Funds

 

Statements of Operations (continued)

For the Year Ended September 30, 2014

 

 

 

   

High Yield

Bond

Fund

 

    

Israel Common

Values

Fund

 

    

Defensive

Strategies

Fund

 

    

Strategic Growth

Fund

 

    

Conservative

Growth

Fund

 

    

Emerging

Markets

Fund

 

    

Growth & Income

Fund (1)

 

  
               
               

 

  

Investment Income:

              

Interest income

     $ 2,458,507          $ 63          $ 485,024          $ 18        $ 20          $ 47          $ 125,979     

Dividend income

     -          249,053          931,973          -          -          278,815          154,132     

Dividend income from affiliated funds

     -          -          -          1,089,252          1,340,039          -          -     

Foreign tax withheld

     -          (56,302)         (42,979)         -          -          (28,397)         (670)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Investment Income

     2,458,507          192,814          1,374,018          1,089,270          1,340,059          250,465          279,441     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating Expenses:

              

Investment advisory fees

     253,560          143,113          402,264          295,758          380,680          127,053          161,937     

12b-1 fees:

              

Class A

     98,933          31,005          129,329          -          -          24,693          44,859     

Class C

     26,073          19,008          152,936          64,014          85,548          5,233          6,551     

Administration fees

     87,784          30,024          142,533          96,035          121,075          22,567          40,483     

Registration fees

     28,721          30,411          33,130          29,109          29,540          31,932          23,595     

Printing expenses

     23,772          7,205          37,916          25,508          28,812          6,746          14,511     

Non 12b-1 shareholder servicing fees

     13,324          1,616          14,145          11,861          13,526          1,523          2,103     

Audit fees

     13,246          12,947          13,445          13,345          12,848          14,936          11,996     

Custody fees

     6,787          19,942          32,067          9,299          11,266          35,347          6,691     

Compliance officer fees

     3,496          466          6,458          3,677          5,277          950          1,990     

Trustees’ fees

     4,624          1,426          6,760          1,742          6,668          959          2,397     

Insurance expenses

     1,464          310          1,983          1,518          1,960          167          363     

Miscellaneous expenses

     686          1,150          965          452          1,155          1,554          3,360     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Operating Expenses

     562,470          298,623          973,931          552,318          698,355          273,660          320,836     

Less: Expenses waived by Advisor

     (1,964)         -          (3,066)         -          -          (541)         (1,200)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Operating Expenses

     560,506          298,623          970,865          552,318          698,355          273,119          319,636     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Investment Income (Loss)

     1,898,001         (105,809)         403,153          536,952          641,704          (22,654)         (40,195)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized and Unrealized
Gain (Loss) on Investments:

              

Net realized gain (loss) on investments

     594,758          (57,758)         68,440          1,042,265          2,930,268          763,428          (19,509)    

and foreign currency translations

       2,070          (33,444)             (6,678)      

Capital gain distributions from affiliated funds

     -          -          -          946,902          945,023          -          -   

Capital gain dividends from REITs

     -          -          227,729          -          -          -          -   

Net change in unrealized appreciation (depreciation) on investments

     (313,447)         200,476          979,641          274,480          (1,732,417)         (737,022)         1,197,553     

and foreign currency translations

     -          (30)         (919)           -          (11,860)      
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Realized and Unrealized Gain on Investments

     281,311          144,758          1,241,447          2,263,647          2,142,874          7,868          1,178,044     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Net Assets Resulting From Operations

     $       2,179,312          $         38,949          $         1,644,600          $       2,800,599        $       2,784,578            $      (14,786)         $       1,137,849     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

(1) The Growth & Income Fund commenced operations on October 1, 2013.

 

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

67

Timothy Plan Funds

 

Statements of Changes in Net Assets

 

    Aggressive Growth Fund     International Fund     Large/Mid Cap Growth Fund  
    Year Ended     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    September 30, 2014     September 30, 2013     September 30, 2014     September 30, 2013     September 30, 2014     September 30, 2013  

Operations:

            

Net investment income (loss)

     $ (290,469)         $ (225,177)         $ 242,079          $ 230,090          $ (144,076)         $ (154,694)    

Net realized gain from investments and foreign currency translations

     3,103,465          2,105,187          2,085,417          783,962          7,211,427          4,956,086     

Capital gain dividends from REITs

     511          2,235          -          -          -          -     

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

     (1,227,201)         2,256,985          (964,017)         5,027,081          627,222          4,941,630     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from operations

     1,586,306          4,139,230          1,363,479          6,041,133          7,694,573          9,743,022     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions to Shareholders:

            

Net investment income

            

  Class A

     -          -          (786,429)         (230,752)         -          -     

  Class C

     -          -          (36,943)         -          -          -     

  Class I

     -          -          (2,495)         -          -          -     

Net realized gains

            

  Class A

     (1,036,995)         -          -          -          (4,768,553)         (2,446,061)    

  Class C

     (210,803)         -          -          -          (570,867)         (296,634)    

  Class I

     (6)         -          -          -          (7,416)         -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total dividends and distributions to shareholders

     (1,247,804)         -          (825,867)         (230,752)         (5,346,836)         (2,742,695)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share Transactions of Beneficial Interest:

            

Net proceeds from shares sold

            

  Class A

     6,409,636          4,388,489          25,864,557          10,977,091          13,745,035          9,051,293     

  Class C

     878,189          717,887          1,267,689          755,818          1,589,248          1,516,639     

  Class I

     140,850          100          478,803          100          187,251          100     

Reinvestment of dividends and distributions

            

  Class A

     982,936          -          668,018          202,277          4,397,355          2,267,318     

  Class C

     199,968          -          29,829          -          457,708          239,483     

  Class I

     6          -          865          -          4,941          -     

Cost of shares redeemed

            

  Class A

     (6,177,331)         (4,678,771)         (10,760,223)         (8,018,394)         (12,696,431)         (10,724,659)    

  Class C

     (525,919)         (546,416)         (451,935)         (260,483)         (1,284,759)         (1,827,870)    

  Class I

     -          -          (8,160)         -          (8,100)         -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from share transactions of beneficial interest

     1,908,335          (118,711)         17,089,443          3,656,409          6,392,248          522,304     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase in Net Assets

     2,246,837          4,020,519          17,627,055          9,466,790          8,739,985          7,522,631     

Net Assets:

            

Beginning of year

     20,619,300          16,598,781          40,878,521          31,411,731          53,451,400          45,928,769     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of year*

     $     22,866,137          $     20,619,300          $     58,505,576          $     40,878,521          $     62,191,385          $     53,451,400     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

* Includes undistributed net investment income (loss) at end of period

     $ 5,312          $ (183,314)         $ (365,861)         $ 100,574          $ 11,070          $ 2,846     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share Activity:

            

Shares Sold

            

  Class A

     695,133          545,659          2,793,998          1,370,275          1,628,883          1,187,169     

  Class C

     107,432          97,012          142,416          96,698          212,413          221,194     

  Class I

     15,193          11          52,600          12          22,116          12     

Shares Reinvested

            

  Class A

     109,215          -          74,472          26,720          547,621          324,831     

  Class C

     24,934          -          3,386          -          64,557          38,074     

  Class I

     1          -          97          -          615          -     

Shares Redeemed

            

  Class A

     (674,852)         (603,346)         (1,152,122)         (1,029,883)         (1,490,365)         (1,398,597)    

  Class C

     (64,605)         (81,776)         (50,205)         (33,866)         (170,215)         (262,121)    

  Class I

     -          -          (853)         -          (927)         -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares of beneficial interest outstanding

     212,451          (42,440)         1,863,789          429,956          814,698          110,562     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

  

 

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

68

Timothy Plan Funds

 

Statements of Changes in Net Assets (Continued)

 

    Small Cap Value Fund     Large/Mid Cap Value Fund     Fixed Income Fund  
    Year Ended     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    September 30, 2014     September 30, 2013     September 30, 2014     September 30, 2013     September 30, 2014     September 30, 2013  

Operations:

            

Net investment income (loss)

     $ (265,736)         $ 20,961          $ (154,325)         $ 596,162        $ 1,228,801          $ 1,317,522     

Net realized gain from investments and foreign currency translations

     16,166,118          8,776,714          15,007,372          20,643,211          381,634          901,715     

Capital gain dividends from REITs

     68,810          36,191          92,262          12,601          -          -     

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

     (10,727,779)         10,680,831          5,781,515          3,763,115          266,574          (4,713,356)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     5,241,413          19,514,697          20,726,824          25,015,089          1,877,009          (2,494,119)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions to Shareholders:

            

Net investment income

            

  Class A

     (11)         (88,849)         (547,767)         (358,626)         (1,586,832)         (903,855)    

  Class C

     (1)         -          (24,189)         -          (127,779)         (54,237)    

  Class I

     -          -          (3,894)         -          (504)         -     

Net realized gains

            

  Class A

     (6,644,863)         -          (7,988,763)         -          (148,647)         -     

  Class C

     (874,075)         -          (1,077,063)         -          (17,627)         -     

  Class I

     (22,910)         -          (44,330)         -          -          -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total dividends and distributions to shareholders

     (7,541,860)         (88,849)         (9,686,006)         (358,626)         (1,881,389)         (958,092)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share Transactions of Beneficial Interest:

            

Net proceeds from shares sold

            

  Class A

     16,704,368          11,969,015          36,404,955          30,287,293          14,643,117          22,378,103     

  Class C

     2,073,355          2,004,285          3,741,165          3,183,229          1,555,940          2,874,242     

  Class I

     545,152          100          1,526,368          100          102,000          100     

Reinvestment of dividends and distributions

            

  Class A

     6,271,941          84,074          7,682,226          307,962          1,583,093          801,878     

  Class C

     810,924          -          930,680          -          119,773          45,593     

  Class I

     20,825          -          45,334            503       

Cost of shares redeemed

            

  Class A

     (14,065,378)         (12,650,070)         (29,948,477)         (38,910,448)         (15,512,285)         (27,243,493)    

  Class C

     (1,895,500)         (1,235,150)         (2,539,469)         (2,518,994)         (2,506,127)         (3,570,618)    

  Class I

     (12,961)         -          (149,957)         -          -          -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from share transactions of beneficial interest

     10,452,726          172,254          17,692,825          (7,650,858)         (13,986)         (4,714,195)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

     8,152,279          19,598,102          28,733,643          17,005,605          (18,366)         (8,166,406)    

Net Assets:

            

Beginning of year

     72,510,908          52,912,806          128,306,780          111,301,175          75,515,358          83,681,764     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of year*

     $     80,663,187          $     72,510,908          $     157,040,423          $     128,306,780          $     75,496,992          $     75,515,358     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

* Includes undistributed net investment income (loss) at end of period

     $ 38,593          $ 26,038          $ 38,030          $ 583,125          $ 505,149          $ 770,920     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share Activity:

            

Shares Sold

            

  Class A

     818,649          692,720          1,891,091          1,833,499          1,405,402          2,088,605     

  Class C

     121,983          132,413          221,857          212,010          154,641          277,316     

  Class I

     26,381          5          78,493          5          9,854          10     

Shares Reinvested

            

  Class A

     311,572          5,349          421,869          20,092          153,197          76,046     

  Class C

     48,183          -          57,950          -          12,022          4,489     

  Class I

     1,034          -          2,492          -          49          -     

Shares Redeemed

            

  Class A

     (692,550)         (752,629)         (1,553,204)         (2,333,513)         (1,489,933)         (2,557,054)    

  Class C

     (111,199)         (87,460)         (150,588)         (173,444)         (249,215)         (347,595)    

  Class I

     (627)         -          (7,549)         -          -          -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares of beneficial interest outstanding

     523,426          (9,602)         962,411          (441,351)         (3,983)         (458,183)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

  

 

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

69

Timothy Plan Funds

 

Statements of Changes in Net Assets (Continued)

 

    High Yield Bond Fund     Israel Common Values Fund     Defensive Strategies Fund  
    Year Ended     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    September 30, 2014     September 30, 2013     September 30, 2014     September 30, 2013     September 30, 2014     September 30, 2013  

Operations:

            

Net investment income (loss)

     $ 1,898,001          $ 1,966,215          $ (105,809)         $ (52,970)         $ 403,153          $ 240,974     

Net realized gain(loss) from investments and foreign currency translations

     594,758          232,096          (55,688)         (30,117)         34,996          380,305     

Capital gain dividends from REITs

     -          -          -          -          227,729          95,795     

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

     (313,447)         (707,158)         200,446          2,064,869          978,722            (7,225,344)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     2,179,312          1,491,153          38,949          1,981,782          1,644,600          (6,508,270)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions to Shareholders:

            

Net investment income

            

  Class A

     (1,823,248)         (1,782,597)         (566,559)         -          (229,323)         (28)    

  Class C

     (100,879)         (88,820)         (68,279)         -          -          (10)    

  Class I

     (4,871)         -          (429)           (140)      

From net realized gains

            

  Class A

     -          -          -          -          (110,890)         (97,172)    

  Class C

     -          -          -          -          (35,481)         (35,276)    

  Class I

     -          -          -          -          (37)         -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total dividends and distributions to shareholders

     (1,928,998)         (1,871,417)         (635,267)         -          (375,871)         (132,486)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share Transactions of Beneficial Interest:

            

Net proceeds from shares sold

            

  Class A

     12,655,436          15,564,006          5,259,493          3,295,264          14,684,600          20,337,684     

  Class C

     964,695          1,124,628          1,885,221          738,558          2,536,965          5,060,845     

  Class I

     242,798          100          12,976          100          98,526          100     

Reinvestment of dividends and distributions

            

  Class A

     1,587,067          1,572,663          557,945          -          328,384          92,047     

  Class C

     78,579          69,721          67,882          -          35,220          34,945     

  Class I

     3,261          -          429            177       

Cost of shares redeemed

            

  Class A

     (9,020,977)         (14,596,227)         (1,843,406)         (2,878,944)         (13,798,083)         (16,279,364)    

  Class C

     (525,058)         (616,056)         (435,915)         (98,800)         (5,120,707)         (5,357,105)    

  Class I

     (159)         -          -          -          -          -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from share transactions of beneficial interest

     5,985,642          3,118,835          5,504,625          1,056,178          (1,234,918)         3,889,152     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

     6,235,956          2,738,571          4,908,307          3,037,960          33,811          (2,751,604)    

Net Assets:

            

Beginning of year

     37,813,527          35,074,956          11,238,678          8,200,718          68,577,964          71,329,568     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of year*

     $     44,049,483          $     37,813,527          $     16,146,985          $     11,238,678          $     68,611,775          $     68,577,964     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

* Includes undistributed net investment income (loss) at end of period

     $ 63,801          $ 94,798          $ (801,748)         $ (86,069)         $ 652,468          $ 464,351     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share Activity:

            

Shares Sold

            

  Class A

     1,306,702          1,615,799          408,112          286,237          1,278,221          1,733,384     

  Class C

     99,011          116,063          148,327          63,533          225,931          437,490     

  Class I

     25,013          11          993          8          8,520          9     

Shares Reinvested

            

  Class A

     165,224          165,588          44,671          -          30,210          7,703     

  Class C

     8,113          7,288          5,519          -          3,323          2,990     

  Class I

     341          -          34            16       

Shares Redeemed

            

  Class A

     (933,867)         (1,523,719)         (143,196)         (260,162)         (1,220,070)         (1,415,033)    

  Class C

     (53,559)         (63,809)         (34,987)         (9,559)         (464,150)         (478,799)    

  Class I

     (16)         -          -          -          -          -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares of beneficial interest outstanding

     616,962          317,221          429,473          80,057          (137,999)         287,744     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

  

 

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

70

Timothy Plan Funds

 

Statements of Changes in Net Assets (Continued)

 

    Strategic Growth Fund     Conservative Growth Fund     Emerging Markets Fund  
    Year Ended     Year Ended     Year Ended     Year Ended     Year Ended     Period Ended  
    September 30, 2014     September 30, 2013     September 30, 2014     September 30, 2013     September 30, 2014     September 30, 2013 (1)  

Operations:

            

Net investment income (loss)

     $ 536,952          $ 41,481          $ 641,704          $ 55,679         $ (22,654)         $ (58,775)    

Net realized gain from investments and foreign currency translations

     1,042,265          1,365,460          2,930,268          2,008,053          756,750          287,405     

Capital gain distributions from affiliated funds

     946,902          184,843          945,023          165,162          -          -     

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

     274,480          3,100,731          (1,732,417)         834,809          (748,882)         126,463     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     2,800,599          4,692,515          2,784,578          3,063,703          (14,786)         355,093     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions to Shareholders:

            

Net Investment Income

            

  Class A

     (35,399)         (190,626)         (207,808)         (306,948)         -          -     

  Class C

     -          (5)         -          (6)         -          -     

From net realized gains

            

  Class A

     -          -          -          -          (317,280)         -     

  Class C

     -          -          -          -          (11,694)         -     

  Class I

     -          -          -          -          (5,929)         -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total dividends and distributions to shareholders

     (35,399)         (190,631)         (207,808)         (306,954)         (334,903)         -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share Transactions of Beneficial Interest:

            

Net proceeds from shares sold

            

  Class A

     6,219,152          5,923,646          9,569,686          9,364,096          4,724,864          9,641,956     

  Class C

     2,148,616          1,239,023          3,641,417          2,556,007          660,089          323,894     

  Class I

             342,547          100     

Reinvestment of dividends and distributions

            

  Class A

     34,264          185,872          192,204          283,789          304,324          -     

  Class C

     -          -          -          -          11,626          -     

  Class I

             5,375          -     

Cost of shares redeemed

            

  Class A

     (6,076,309)         (7,599,802)         (8,588,545)         (7,690,796)         (2,603,515)         (1,321,810)    

  Class C

     (1,431,283)         (1,203,822)         (2,146,521)         (1,846,027)         (42,881)         (32,972)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from share transactions of beneficial interest

     894,440          (1,455,083)         2,668,241          2,667,069          3,402,429          8,611,168     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase in Net Assets

     3,659,640          3,046,801          5,245,011          5,423,818          3,052,740          8,966,261     

Net Assets:

            

Beginning of year

     42,133,245          39,086,444          54,656,829          49,233,011          8,966,261          -     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of year*

     $ 45,792,885          $     42,133,245          $     59,901,840          $     54,656,829          $     12,019,001          $     8,966,261     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

* Includes undistributed net investment income (loss) at end of period

     $ 534,610          $ 33,057          $ 448,836          $ 14,940          $ (18,863)         $ (12,505)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share Activity:

            

Shares Sold

            

Class A

     702,938          745,072          873,829          913,784          451,606          953,198     

Class C

     262,144          168,878          355,488          266,950          62,680          31,033     

Class I

     -          -          -          -          31,939          10     

Shares Reinvested

            

Class A

     3,929          24,765          17,846          28,489          29,983          -     

Class C

     -          -          -          -          1,153          -     

Class I

     -          -          -          -          530          -     

Shares Redeemed

            

Class A

     (685,657)         (970,634)         (782,148)         (756,030)         (249,044)         (129,286)    

Class C

     (174,222)         (166,611)         (210,639)         (194,209)         (4,169)         (3,229)    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares of beneficial interest outstanding

     109,132          (198,530)         254,376          258,984          324,678          851,726     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

(1) The Emerging Markets Fund commenced operations on December 3, 2012.

 

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

71

Timothy Plan Funds

 

Statements of Changes in Net Assets (Continued)

 

     Growth & Income Fund  
     Period Ended  
    

September 30, 2014 (1)

  

Operations:

   

Net investment loss

      $ (40,195)    

Net realized loss from investments

      (19,509)    

Net change in unrealized appreciation on investments

      1,197,553     
  

 

 

  

Net increase in net assets resulting from operations

      1,137,849     
  

 

 

  

Share Transactions of Beneficial Interest:

   

Net proceeds from shares sold

   

  Class A

      25,295,734     

  Class C

      2,142,623     

  Class I

      1,571,449     

Cost of shares redeemed

   

  Class A

      (2,187,755)    

  Class C

      (54,308)    

  Class I

      (45,875)    
  

 

 

  

Net increase in net assets from share transactions of beneficial interest

      26,721,868     
  

 

 

  

Total Increase in Net Assets

      27,859,717     

Net Assets:

   

Beginning of period

      -     
  

 

 

  

End of period*

      $     27,859,717     
  

 

 

  

* Includes accumulated net investment loss at end of period

      $ (22,909)    
  

 

 

  

Share Activity:

   

Shares Sold

   

Class A

      2,421,373     

Class C

      196,355     

Class I

      141,740     

Shares Redeemed

   

Class A

      (204,120)    

Class C

      (4,950)    

Class I

      (4,167)    
  

 

 

  

Net increase in shares of beneficial interest outstanding

      2,546,231     
  

 

 

  

 

 

(1) The Growth & Income Fund commenced operations on October 1, 2013.

 

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

72

Timothy Aggressive Growth Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

      $ 9.00          $ 7.10          $ 5.57          $ 5.42          $ 4.51     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME FROM INVESTMENT OPERATIONS:

           

Net investment loss

      (0.11)  (A)      (0.09)  (A)      (0.12)  (A)      (0.10)  (A)      (0.09)    

Net realized and unrealized gain on investments

      0.84          1.99          1.65          0.25          1.00     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.73          1.90          1.53          0.15          0.91     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net realized gains on investments

      (0.55)         -              -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.55)         -              -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 9.18          $ 9.00          $ 7.10          $ 5.57          $ 5.42     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      8.22%         26.76%         27.47%         2.77%         20.18%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 19,268          $ 17,727         $ 14,398          $ 12,259          $ 13,247     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      1.74%         -              -              -              -         

Expenses, net waiver and reimbursement

      1.73%         1.86%         2.12%         1.81%         1.88%    

Net investment loss, before waiver and reimbursement

      (1.19)%         -              -              -              -         

Net investment loss, net waiver and reimbursement

      (1.18)%         (1.20)%         (1.78)%         (1.52)%         (1.61)%    

Portfolio turnover rate

      91%         120%         147%         201%         89%    

 

(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

    

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

73

Timothy Aggressive Growth Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

      $ 8.09          $ 6.43          $ 5.06          $ 4.98          $ 4.18     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME FROM INVESTMENT OPERATIONS:

           

Net investment loss

      (0.16)  (A)      (0.14)  (A)      (0.16)  (A)      (0.13)  (A)      (0.11)    

Net realized and unrealized gain on investments

      0.75          1.80          1.53          0.21          0.91     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.59          1.66          1.37          0.08          0.80     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net realized gains on investments

      (0.55)         -              -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.55)         -              -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 8.13          $ 8.09          $ 6.43          $ 5.06          $ 4.98     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      7.37%         25.82%         27.08%         1.61%         19.14%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 3,458          $ 2,892          $ 2,201          $ 1,766          $ 1,670     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      2.49%         -              -              -              -         

Expenses, net waiver and reimbursement

      2.48%         2.60%         2.87%         2.57%         2.63%    

Net investment loss, before waiver and reimbursement

      (1.94)%         -              -              -              -         

Net investment loss, net waiver and reimbursement

      (1.93)%         (1.94)%         (2.53)%         (2.28)%         (2.35)%    

Portfolio turnover rate

      91%         120%         147%         201%         89%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect redemption fee.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

    

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

74

Timothy Aggressive Growth Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

      For the Year
ended
September 30,
2014		     

For the

Period ended

September 30, 2013
(A)

       
       

Net asset value, beginning of period

      $ 9.01           $ 8.87       
  

 

 

     

 

 

    

INCOME FROM INVESTMENT OPERATIONS:

        

Net investment income (loss) (B)

      (0.07)          - *     

Net realized and unrealized gain on investments

      0.82           0.14       
  

 

 

     

 

 

    

Total from investment operations

      0.75           0.14       
  

 

 

     

 

 

    

LESS DISTRIBUTIONS:

        

From net realized gains on investments

      (0.55)          -         
  

 

 

     

 

 

    

Total distributions

      (0.55)          -         
  

 

 

     

 

 

    

Net asset value, end of period

      $ 9.21           $ 9.01       
  

 

 

     

 

 

    

Total return (C)

      8.43%          1.58%  (D)   

RATIOS/SUPPLEMENTAL DATA:

        

Net assets, end of period

      $ 140           $ 102       

Ratios to average net assets

        

Expenses, before waiver and reimbursement

      1.33%          -         

Expenses, net waiver and reimbursement

      1.28%          1.61%  (E)   

Net investment loss, before waiver and reimbursement

      (0.78)%          -         

Net investment loss, net waiver and reimbursement

      (0.73)%          (0.95)%  (E)   

Portfolio turnover rate

      91%          120%  (D)     
*

Amount is less than $0.005 per share.

(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

    

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

 

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

75

Timothy International Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

     $ 8.65         $ 7.31          $ 6.54          $ 7.71          $ 7.52     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income

      0.05   (A)      0.06   (A)      0.03   (A)      0.20   (A)      0.04     

Net realized and unrealized gain (loss) on investments

      0.36          1.34          0.97          (1.33)         0.26     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.41          1.40          1.00          (1.13)         0.30     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.17)         (0.06)         (0.23)         (0.04)         (0.11)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.17)         (0.06)         (0.23)         (0.04)         (0.11)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 8.89          $ 8.65          $ 7.31          $ 6.54          $ 7.71     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      4.74%         19.25%         15.73%         (14.72)%         3.93%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 54,709          $ 38,432          $ 29,794          $ 28,423          $ 35,206     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      1.69%         -              -              -              -         

Expenses, net waiver and reimbursement

      1.68%         1.73%         1.82%         1.70%         1.74%    

Net investment income, before waiver and reimbursement

      0.52%         -              -              -              -         

Net investment income, net waiver and reimbursement

      0.52%         0.70%         0.38%         2.45%         0.58%    

Portfolio turnover rate

      31%         29%         34%         62%         41%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

76

Timothy International Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

      $ 8.46          $ 7.15          $ 6.39          $ 7.58          $ 7.41     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)

      (0.02)  (A)      -     * (A)      (0.02)   (A)       0.13   (A)      (0.01)    

Net realized and unrealized gain (loss) on investments

      0.35   (D)      1.31          0.95          (1.29)         0.25     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.33          1.31          0.93          (1.16)         0.24     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.12)         -              (0.17)         (0.03)         (0.07)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.12)         -              (0.17)         (0.03)         (0.07)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 8.67          $ 8.46          $ 7.15          $ 6.39          $ 7.58     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      3.87%         18.32%         14.88%         (15.40)%         3.27%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 3,336          $ 2,446          $ 1,617          $ 1,427        $ 1,941     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      2.44%         -              -              -              -         

Expenses, net waiver and reimbursement

      2.44%         2.47%         2.57%         2.45%         2.49%    

Net investment income (loss), before waiver and reimbursement

      (0.21)%         -              -              -              -         

Net investment income (loss), net waiver and reimbursement

      (0.20)%         (0.01)%         (0.32)%         1.58%         (0.15)%    

Portfolio turnover rate

      31%         29%         34%         62%         41%    

*Amount is less than $0.005 per share.

(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect redemption fee.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

 

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

Realized and unrealized gains per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period.

 

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

77

Timothy International Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

      For the Year
ended
September 30,
2014		     

For the

Period ended
September 30, 2013
(A)

       
       

Net asset value, beginning of period

      $ 8.65           $ 8.46       
  

 

 

     

 

 

    

INCOME FROM INVESTMENT OPERATIONS:

        

Net investment income (B)

      0.08           0.02       

Net realized and unrealized gain on investments

      0.34           0.17       
  

 

 

     

 

 

    

Total from investment operations

      0.42           0.19       
  

 

 

     

 

 

    

LESS DISTRIBUTIONS:

        

From net investment income

      (0.19)          -           
  

 

 

     

 

 

    

Total distributions

      (0.19)          -           
  

 

 

     

 

 

    

Net asset value, end of period

      $ 8.88           $ 8.65       
  

 

 

     

 

 

    

Total return (C)

      4.85%          2.25%  (D)   

RATIOS/SUPPLEMENTAL DATA:

        

Net assets, end of period

      $ 461           $ 102       

Ratios to average net assets

        

Expenses, before waiver and reimbursement

      1.38%          -           

Expenses, net waiver and reimbursement

      1.38%          1.48%  (E)   

Net investment income, before waiver and reimbursement

      0.85%          -           

Net investment income, net waiver and reimbursement

      0.86%          0.95%  (E)   

Portfolio turnover rate

      31%          29%  (D)     
(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

 

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

78

Timothy Large/Mid Cap Growth Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

      $ 8.36          $ 7.30          $ 6.05          $ 5.99          $ 5.37     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME FROM INVESTMENT OPERATIONS:

           

Net investment loss

      (0.01)  (A)      (0.02)  (A)      (0.04)  (A)      (0.04)  (A)      (0.04)    

Net realized and unrealized gain on investments

      1.15          1.51          1.61          0.10          0.66     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.14          1.49          1.57          0.06          0.62     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net realized gains on investments

      (0.84)         (0.43)         (0.32)         -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.84)         (0.43)         (0.32)         -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 8.66          $ 8.36          $ 7.30          $ 6.05          $ 5.99     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      14.70%         21.62%         26.61%         1.00%         11.55%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 56,073          $ 48,411          $ 41,446          $ 34,252          $ 38,865     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      1.57%         -              -              -              -         

Expenses, net waiver and reimbursement

      1.57%         1.59%         1.68%         1.60%         1.66%    

Net investment loss, before waiver and reimbursement

      (0.18)%         -              -              -              -         

Net investment loss, net waiver and reimbursement

      (0.17)%         (0.24)%         (0.63)%         (0.64)%         (0.74)%    

Portfolio turnover rate

      61%         91%         127%         150%         78%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

 

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

79

Timothy Large/Mid Cap Growth Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

      $ 7.49          $ 6.63          $ 5.57          $ 5.55          $ 5.01     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment loss

      (0.07)  (A)      (0.07)  (A)      (0.09)  (A)      (0.09)  (A)      (0.08)    

Net realized and unrealized gain on investments

      1.02          1.36          1.47          0.11          0.62     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.95          1.29          1.38          0.02          0.54     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net realized gains on investments

      (0.84)         (0.43)         (0.32)         -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.84)         (0.43)         (0.32)         -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 7.60          $ 7.49          $ 6.63          $ 5.57          $ 5.55     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      13.84%         20.74%         25.47%         0.36%         10.78%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 5,929          $ 5,041          $ 4,483          $ 2,726          $ 2,523     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      2.32%         -              -              -              -         

Expenses, net waiver and reimbursement

      2.32%         2.34%         2.44%         2.35%         2.41%    

Net investment loss, before waiver and reimbursement

      (0.93)%         -              -              -              -         

Net investment loss, net waiver and reimbursement

      (0.93)%         (0.99)%         (1.38)%         (1.38)%         (1.49)%    

Portfolio turnover rate

      61%         91%         127%         150%         78%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

 

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

80

Timothy Large/Mid Cap Growth Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

      For the Year
ended
September 30,
2014		    

For the

Period ended
September 30, 2013
(A)

       
      

Net asset value, beginning of period

      $ 8.37          $ 8.31       
  

 

 

    

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

       

Net investment income (B)

      0.01          0.01       

Net realized and unrealized gain on investments

      1.15   (F)      0.05       
  

 

 

    

 

 

    

Total from investment operations

      1.16          0.06       
  

 

 

    

 

 

    

LESS DISTRIBUTIONS:

       

From net realized gains on investments

      (0.84)         -           
  

 

 

    

 

 

    

Total distributions

      (0.84)         -           
  

 

 

    

 

 

    

Net asset value, end of period

      $ 8.69          $ 8.37       
  

 

 

    

 

 

    

Total return (C)

      14.94%         0.72%  (D)   

RATIOS/SUPPLEMENTAL DATA:

       

Net assets, end of period

      $ 190          $ 101       

Ratios to average net assets

       

Expenses, before waiver and reimbursement

      1.30%         -           

Expenses, net waiver and reimbursement

      1.29%         1.34%  (E)   

Net investment income, before waiver and reimbursement

      0.13%         -           

Net investment income, net waiver and reimbursement

      0.14%         0.01%  (E)   

Portfolio turnover rate

      61%         91%  (D)     
(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

 

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

(F)

Realized and unrealized gains per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period.

 

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

81

Timothy Small Cap Value Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

    $ 20.30        $ 14.74        $ 10.82        $ 11.28        $ 10.25     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)

      (0.04)  (A)      0.02   (A)      0.03   (A)      (0.05)  (A)      (0.06)    

Net realized and unrealized gain (loss) on investments

      1.57          5.57          3.89          (0.41)  (B)      1.09     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.53          5.59          3.92          (0.46)         1.03     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      -              (0.03)         -              -              -         

From net realized gains on investments

      (2.04)         -              -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (2.04)         (0.03)         -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

    $ 19.79        $ 20.30        $ 14.74        $ 10.82        $ 11.28     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (C)(D)

      7.61%         37.97%         36.23%         (4.08)%         10.05%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

    $ 71,997        $ 64,972        $ 47,976        $ 39,145        $ 40,482     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      1.53%         -              -              -              -         

Expenses, net waiver and reimbursement

      1.52%         1.55%         1.59%         1.53%         1.59%    

Net investment income (loss), before waiver and reimbursement

      (0.25)%         -              -              -              -         

Net investment income (loss), net waiver and reimbursement

      (0.25)%         0.11%         0.19%         (0.36)%         (0.51)%    

Portfolio turnover rate

      71%         73%         65%         102%         64%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not agree to the aggregate gains and losses in the Statement of Operations due to the fluctuations in share transactions.

(C)

Total return calculation does not reflect sales load.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

  

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

82

Timothy Small Cap Value Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

      $ 17.30          $ 12.63          $ 9.35          $ 9.82          $ 8.99     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment loss

      (0.17)  (A)      (0.10)  (A)      (0.06)  (A)      (0.13)  (A)      (0.12)    

Net realized and unrealized gain (loss) on investments

      1.36          4.77          3.34          (0.34)   (B)      0.95     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.19          4.67          3.28          (0.47)         0.83    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net realized gains on investments

      (2.04)         -              -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (2.04)         -              -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 16.45          $ 17.30          $ 12.63          $ 9.35          $ 9.82     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (C)(D)

      6.96%         36.98%         35.08%         (4.79)%         9.23%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 8,135          $ 7,539          $ 4,937          $ 3,809          $ 4,186     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      2.28%         -              -              -              -         

Expenses, net waiver and reimbursement

      2.27%         2.30%         2.34%         2.28%         2.34%    

Net investment loss, before waiver and reimbursement

      (1.01)%         -              -              -              -         

Net investment loss, net waiver and reimbursement

      (1.01)%         (0.65)%         (0.55)%         (1.12)%         (1.26)%    

Portfolio turnover rate

      71%         73%         65%         102%         64%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not agree to the aggregate gains and losses in the Statement of Operations due to the fluctuations in share transactions.

(C)

Total return calculation does not reflect redemption fee.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

 

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

83

Timothy Small Cap Value Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

      For the Year
ended
September 30,
2014		    

For the

Period ended
September 30, 2013
(A)

       
      

Net asset value, beginning of period

      $ 20.29          $ 19.68       
  

 

 

    

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

       

Net investment income (loss) (B)

      0.02          (0.01)      

Net realized and unrealized gain on investments

      1.57   (F)      0.62       
  

 

 

    

 

 

    

Total from investment operations

      1.59          0.61       
  

 

 

    

 

 

    

LESS DISTRIBUTIONS:

       

From net realized gains on investments

      (2.04)         -           
  

 

 

    

 

 

    

Total distributions

      (2.04)         -           
  

 

 

    

 

 

    

Net asset value, end of period

      $ 19.84          $ 20.29       
  

 

 

    

 

 

    

Total return (C)

      7.93%         3.10%  (D)   

RATIOS/SUPPLEMENTAL DATA:

       

Net assets, end of period

      $ 532          $ 103       

Ratios to average net assets

       

Expenses, before waiver and reimbursement

      1.27%         -           

Expenses, net waiver and reimbursement

      1.27%         1.30%  (E)   

Net investment income, before waiver and reimbursement

      0.06%         -           

Net investment income, net waiver and reimbursement

      0.07%         0.36%  (E)   

Portfolio turnover rate

      71%         73%  (D)     
(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

 

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

(F)

Realized and unrealized gains per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period.

 

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

84

Timothy Large/Mid Cap Value Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each year

 

     

For the Year

ended

    September 30,    

2014

    

For the Year

ended

    September 30,    

2013

    

For the Year

ended

    September 30,    

2012

    

For the Year

ended

    September 30,    

2011

    

For the Year

ended

    September 30,    

2010

  

Net asset value, beginning of year

      $ 18.14          $ 14.80          $ 11.83          $ 11.84          $ 10.72     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)

      (0.01)   (A)      0.09    (A)      0.06   (A)      0.04   (A)      0.05     

Net realized and unrealized gain (loss) on investments

      2.83          3.30          2.94          (0.01)   (B)      1.12     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      2.82          3.39          3.00          0.03          1.17     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.09)         (0.05)         (0.03)         (0.04)         (0.05)    

From net realized gains on investments

      (1.26)         -              -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (1.35)         (0.05)         (0.03)         (0.04)         (0.05)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 19.61          $ 18.14          $ 14.80          $ 11.83          $ 11.84     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (C)(D)

      16.13%         23.00%         25.39%         0.20%        10.94%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

    $ 138,821         $ 114,657         $ 100,632         $ 78,255         $ 80,700    

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      1.50%         -              -              -              -         

Expenses, net waiver and reimbursement

      1.49%         1.49%         1.57%         1.51%         1.58%    

Net investment loss, before waiver and reimbursement

      (0.03)%         -              -              -              -         

Net investment income (loss), net waiver and reimbursement

      (0.03)%         0.55%         0.42%         0.33%         0.39%    

Portfolio turnover rate

      37%         64%         7%         19%         38%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not agree to the aggregate gains and losses in the Statement of Operations due to the fluctuations in share transactions.

(C)

Total return calculation does not reflect sales load.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

85

Timothy Large/Mid Cap Value Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each year

 

     

For the Year

ended

    September 30,    

2014

    

For the Year

ended

    September 30,    

2013

    

For the Year

ended

    September 30,    

2012

    

For the Year

ended

    September 30,    

2011

    

For the Year

ended

    September 30,    

2010

  

Net asset value, beginning of year

      $ 16.12          $ 13.20          $ 10.61          $ 10.68          $ 9.73     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment loss

      (0.13)   (A)      (0.03)   (A)      (0.04)   (A)      (0.05)   (A)      (0.05)    

Net realized and unrealized gain (loss) on investments

      2.49          2.95          2.63          -       *(B)      1.03     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      2.36          2.92          2.59          (0.05)         0.98     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.03)         -              -              (0.02)         (0.03)    

From net realized gains on investments

      (1.26)         -              -              -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (1.29)         -              -              (0.02)         (0.03)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 17.19          $ 16.12          $ 13.20          $ 10.61          $ 10.68     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (C)(D)

      15.21%         22.12%         24.41%         (0.52)%         10.12%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 16,778         $ 13,649         $ 10,669         $ 8,903         $ 9,484    

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      2.25%         -                -              -              -         

Expenses, net waiver and reimbursement

      2.24%         2.23%         2.32%         2.26%         2.33%    

Net investment loss, before waiver and reimbursement

      (0.78)%         -                -             -              -         

Net investment loss, net waiver and reimbursement

      (0.77)%         (0.19)%         (0.32)%         (0.43)%         (0.35)%    

Portfolio turnover rate

      37%         64%         7%         19%         38%    

*Amount is less than $0.005 per share.

(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(B)

Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not agree to the aggregate gains and losses in the Statement of Operations due to the fluctuations in share transactions.

(C)

Total return calculation does not reflect redemption fee.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

86

Timothy Large/Mid Cap Value Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

                                                                                                                                      
     

For the Year

ended

    September 30,    

2014

    

For the

Period ended

    September 30, 2013    
(A)

                   
            

Net asset value, beginning of period

      $ 18.13          $ 18.19             
  

 

 

    

 

 

          

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

             

Net investment income (B)

      0.05          0.03             

Net realized and unrealized gain (loss) on investments

      2.82    (F)      (0.09)            
  

 

 

    

 

 

          

Total from investment operations

      2.87          (0.06)            
  

 

 

    

 

 

          

LESS DISTRIBUTIONS:

             

From net investment income

      (0.11)         -                 

From net realized gains on investments

      (1.26)         -                 
  

 

 

    

 

 

          

Total distributions

      (1.37)         -                 
  

 

 

    

 

 

          

Net asset value, end of period

      $ 19.63          $ 18.13             
  

 

 

    

 

 

          

Total return (C)

      16.09%         (0.33)%  (D)         

RATIOS/SUPPLEMENTAL DATA:

             

Net assets, end of period

      $ 1,442          $ 100             

Ratios to average net assets

             

Expenses, before waiver and reimbursement

      1.23%         -                 

Expenses, net waiver and reimbursement

      1.23%         1.24%  (E)         

Net investment income, before waiver and reimbursement

      0.25%         -                 

Net investment income, net waiver and reimbursement

      0.26%         0.80%  (E)         

Portfolio turnover rate

      37%         64%  (D)               
(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

(F)

Realized and unrealized gains per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period.

 

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

87

Timothy Fixed Income Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each year

 

     

For the Year

ended

    September 30,    

2014

     

For the Year

ended

    September 30,    

2013

     

For the Year

ended

    September 30,    

2012

     

For the Year

ended

    September 30,    

2011

     

For the Year

ended

    September 30,    

2010

  

Net asset value, beginning of year

      $ 10.43           $ 10.87           $ 10.72           $ 10.56           $ 10.14     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

               

Net investment income (A)

      0.18           0.18           0.22           0.28           0.29     

Net realized and unrealized gain (loss) on investments

      0.09           (0.49)          0.18           0.18           0.42     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.27           (0.31)          0.40           0.46           0.71     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

LESS DISTRIBUTIONS:

               

From net investment income

      (0.25)          (0.13)          (0.22)          (0.30)          (0.29)    

From net realized gains on investments

      (0.03)          -               -               -               -         

From return of capital

      -               -               (0.03)          -               -         
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.28)          (0.13)          (0.25)          (0.30)          (0.29)    
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

      $ 10.43           $ 10.43           $ 10.87           $ 10.72           $ 10.56     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total return (B)(C)

      2.64%          (2.82)%          3.73%          4.42%          7.07%    

RATIOS/SUPPLEMENTAL DATA:

               

Net assets, end of year (in 000’s)

      $ 68,274           $ 67,558           $ 74,685           $ 59,405         $ 58,831     

Ratios to average net assets

               

Expenses, before waiver and reimbursement

      1.30%          1.27%          1.31%          1.27%          1.36%    

Expenses, net waiver and reimbursement

      1.14%          1.12%          1.16%          1.15%          1.21%    

Net investment income, before waiver and reimbursement

      1.60%          1.54%          1.86%          2.58%          2.63%    

Net investment income, net waiver and reimbursement

      1.75%          1.69%          2.01%          2.71%          2.78%    

Portfolio turnover rate

      18%          25%          19%          22%          26%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

88

Timothy Fixed Income Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each year

 

     

For the Year

ended

    September 30,    

2014

    

For the Year

ended

    September 30,    
2013

    

For the Year

ended

    September 30,    

2012

    

For the Year

ended

    September 30,    

2011

    

For the Year

ended

    September 30,    

2010

  

Net asset value, beginning of year

      $ 10.07          $ 10.51          $ 10.38          $ 10.22          $ 9.82     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income

      0.10    (A)      0.10    (A)      0.13    (A)      0.20    (A)      0.21     

Net realized and unrealized gain (loss) on investments

      0.11          (0.48)         0.17          0.17          0.41     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.21          (0.38)         0.30          0.37          0.62     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.18)         (0.06)         (0.14)         (0.21)         (0.22)    

From net realized gains on investments

      (0.03)         -              -              -              -         

From return of capital

      -              -              (0.03)         -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.21)         (0.06)         (0.17)         (0.21)         (0.22)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 10.07          $ 10.07          $ 10.51          $ 10.38          $ 10.22     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      2.02%         (3.57)%         2.88%         3.68%         6.36%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 7,120          $ 7,958          $ 8,997          $ 8,265          $ 8,438     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      2.05%         2.03%         2.06%         2.23%         2.12%    

Expenses, net waiver and reimbursement

      1.90%         1.88%         1.91%         1.90%         1.97%    

Net investment income, before waiver and reimbursement

      0.85%         0.79%         1.12%         1.61%         1.88%    

Net investment income, net waiver and reimbursement

      1.00%         0.94%         1.27%         1.95%         2.03%    

Portfolio turnover rate

      18%         25%         19%         22%         26%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect redemption fee.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

89

Timothy Fixed Income Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

                                                                                                        
     

For the Year

ended

    September 30,    

2014

    

For the

Period ended

    September 30, 2013    

(A)

                   
            

Net asset value, beginning of period

      $ 10.34          $ 10.35             
  

 

 

    

 

 

          

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

             

Net investment income (B)

      0.41          0.04             

Net realized and unrealized gain (loss) on investments

      (0.08)   (F)      0.05             
  

 

 

    

 

 

          

Total from investment operations

      0.33          0.09             
  

 

 

    

 

 

          

LESS DISTRIBUTIONS:

             

From net investment income

      (0.28)         (0.10)            

From net realized gains on investments

      (0.03)         -                 
  

 

 

    

 

 

          

Total distributions

      (0.31)         (0.10)            
  

 

 

    

 

 

          

Net asset value, end of period

      $ 10.36          $ 10.34             
  

 

 

    

 

 

          

Total return (C)

      3.16%         0.90%   (D)         

RATIOS/SUPPLEMENTAL DATA:

             

Net assets, end of period

      $ 103          $ 101             

Ratios to average net assets

             

Expenses, before waiver and reimbursement

      (0.44)%         1.02%   (E)         

Expenses, net waiver and reimbursement

      (0.64)%         0.87%   (E)         

Net investment income, before waiver and reimbursement

      3.72%         1.79%   (E)         

Net investment income, net waiver and reimbursement

      3.92%         1.94%   (E)         

Portfolio turnover rate

      18%         25%   (D)               
(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

(F)

Realized and unrealized gains per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period.

 

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

90

Timothy High Yield Bond Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each year

 

     

For the Year

ended

    September 30,    

2014

    

For the Year

ended

    September 30,    

2013

    

For the Year

ended

    September 30,    

2012

    

For the Year

ended

    September 30,    

2011

    

For the Year

ended

    September 30,    

2010

  

Net asset value, beginning of year

      $ 9.40          $ 9.46          $ 8.71          $ 9.10          $ 8.46     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income

      0.44    (A)      0.49    (A)      0.54    (A)      0.54    (A)      0.60     

Net realized and unrealized gain (loss) on investments

      0.09          (0.08)         0.76          (0.39)         0.63     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.53          0.41          1.30          0.15          1.23     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.44)         (0.47)         (0.53)4        (0.54)         (0.59)    

From return of capital

      -              -              (0.02)         -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.44)         (0.47)         (0.55)         (0.54)         (0.59)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 9.49          $ 9.40          $ 9.46          $ 8.71          $ 9.10     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      5.71%         4.42%         15.17%         1.48%         14.98%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 41,038          $ 35,578          $ 33,392          $ 23,110          $ 21,617     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      1.28%         -              -              -              -         

Expenses, net waiver and reimbursement

      1.28%         1.33%         1.39%         1.30%         1.43%    

Net investment income, before waiver and reimbursement

      4.53%         -             -             -             -        

Net investment income, net waiver and reimbursement

      4.53%         5.13%         5.84%         5.81%         6.72%    

Portfolio turnover rate

      53%         56%         24%         60%         40%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

91

Timothy High Yield Bond Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each year

 

     

For the Year

ended

    September 30,    

2014

    

For the Year

ended

    September 30,    

2013

    

For the Year

ended

    September 30,    

2012

    

For the Year

ended

    September 30,    

2011

    

For the Year

ended

    September 30,    

2010

  

Net asset value, beginning of year

      $ 9.48        $ 9.55          $ 8.79          $ 9.17          $ 8.51     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income

      0.37    (A)      0.43   (A)      0.47   (A)      0.47    (A)      0.53   (A) 

Net realized and unrealized gain (loss) on investments

      0.09          (0.09)         0.77          (0.39)         0.66     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.46          0.34          1.24          0.08          1.19     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.37)         (0.41)         (0.46)         (0.46)         (0.53)    

From return of capital

      -              -              (0.02)         -              -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.37)         (0.41)         (0.48)         (0.46)         (0.53)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 9.57        $ 9.48          $ 9.55          $ 8.79          $ 9.17     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      4.89%         3.54%         14.33%         0.72%         14.36%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 2,771        $ 2,236          $ 1,683          $ 1,194          $ 1,039     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      2.03%         -              -              -              -         

Expenses, net waiver and reimbursement

      2.03%         2.07%         2.14%         2.05%         2.18%    

Net investment income, before waiver and reimbursement

      3.78%         -             -                -        

Net investment income, net waiver and reimbursement

      3.79%         4.39%         5.08%         5.06%         5.99%    

Portfolio turnover rate

      53%         56%         24%         60%         40%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect redemption fee.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

 

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

92

Timothy High Yield Bond Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

                                                                                                                                      
     

For the Year

ended

September 30,

2014

     

For the

Period ended

September 30, 2013

(A)

                   
             

Net asset value, beginning of period

      $ 9.40           $ 9.48             
  

 

 

     

 

 

          

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

              

Net investment income (B)

      0.47           0.07             

Net realized and unrealized gain (loss) on investments

      0.10           (0.06)            
  

 

 

     

 

 

          

Total from investment operations

      0.57           0.01             
  

 

 

     

 

 

          

LESS DISTRIBUTIONS:

              

From net investment income

      (0.47)          (0.09)            
  

 

 

     

 

 

          

Total distributions

      (0.47)          (0.09)            
  

 

 

     

 

 

          

Net asset value, end of period

      $ 9.50           $ 9.40             
  

 

 

     

 

 

          

Total return (C)

      6.07%           0.15%   (D)         

RATIOS/SUPPLEMENTAL DATA:

              

Net assets, end of period

      $ 241           $ 100             

Ratios to average net assets

              

Expenses, before waiver and reimbursement

      0.90%               

Expenses, net waiver and reimbursement

      0.89%          1.08%   (E)         

Net investment income, before waiver and reimbursement

      4.77%          -                 

Net investment income, net waiver and reimbursement

      4.78%          5.38%   (E)         

Portfolio turnover rate

      53%          56%   (D)               
(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

 

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

93

Timothy Israel Common Values Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each period

 

                                                                                                        
     

For the Year

ended

    September 30,    

2014

     

For the Year

ended

    September 30,    

2013

     

For the Period

ended

    September 30,    

2012 (A)

             
             

Net asset value, beginning of period

      $ 12.69           $ 10.17           $ 10.00          
  

 

 

     

 

 

     

 

 

       

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

              

Net investment loss(B)

      (0.08)          (0.06)          (0.15)         

Net realized and unrealized gain on investments

      0.37           2.58           0.32          
  

 

 

     

 

 

     

 

 

       

Total from investment operations

      0.29           2.52           0.17          
  

 

 

     

 

 

     

 

 

       

LESS DISTRIBUTIONS:

              

From net investment income

      (0.67)          -               -              
  

 

 

     

 

 

     

 

 

       

Total distributions

      (0.67)          -               -              
  

 

 

     

 

 

     

 

 

       

Net asset value, end of period

      $ 12.31           $ 12.69         $ 10.17          
  

 

 

     

 

 

     

 

 

       

Total return (C)(D)

      2.21%         24.78%          1.80%   (E)      

RATIOS/SUPPLEMENTAL DATA:

              

Net assets, end of period (in 000’s)

      $ 13,792         $ 10,295           $ 7,983           

Ratio of expenses to average net assets

      1.98%          2.24%          2.82%   (F)      

Ratio of net investment loss to average net assets

      (0.64%)          (0.57%)          (1.48%)   (F)      

Portfolio turnover rate

      11%          30%          37%   (E)          
(A)

For the period October 12, 2011 (Commencement of Operations) to September 30, 2012.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return calculation does not reflect sales load.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

(E)

For periods of less than one full year, total return and turnover are not annualized.

(F)

Annualized.

 

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

94

Timothy Israel Common Values Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each period

 

                                                                                                        
      For the Year
ended
September 30,
2014		      For the Year
ended
September 30,
2013		      For the Period
ended
September 30,
2012 (A)		             
             

Net asset value, beginning of period

      $ 12.50           $ 10.09           $ 10.00          
  

 

 

     

 

 

     

 

 

       

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

              

Net investment loss (B)

      (0.18)          (0.13)          (0.22)         

Net realized and unrealized gain on investments

      0.37           2.54           0.31          
  

 

 

     

 

 

     

 

 

       

Total from investment operations

      0.19           2.41           0.09          
  

 

 

     

 

 

     

 

 

       

LESS DISTRIBUTIONS:

              

From net investment income

      (0.64)          -               -              
  

 

 

     

 

 

     

 

 

       

Total distributions

      (0.64)          -               -              
  

 

 

     

 

 

     

 

 

       

Net asset value, end of period

      $ 12.05           $ 12.50           $ 10.09          
  

 

 

     

 

 

     

 

 

       

Total return (C)(D)

      1.40%          23.89%          1.00%   (E)      

RATIOS/SUPPLEMENTAL DATA:

              

Net assets, end of period (in 000’s)

      $ 2,342           $ 943           $ 217          

Ratio of expenses to average net assets

      2.74%          2.99%          3.53%   (F)      

Ratio of net investment loss to average net assets

      (1.38%)          (1.32%)          (2.21%)   (F)      

Portfolio turnover rate

      11%          30%          37%   (E)          
(A)

For the period October 12, 2011 (Commencement of Operations) to September 30, 2012.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return calculation does not reflect redemption fee.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

(E)

For periods of less than one full year, total return and turnover are not annualized.

(F)

Annualized.

 

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

95

Timothy Israel Common Values Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

      For the Year
ended
September 30,
2014		     For the Period
ended
September 30, 2013
(A)		       
      

Net asset value, beginning of period

      $ 12.67          $ 12.21       
  

 

 

    

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

       

Net investment income (loss) (B)

      (0.05 )       0.01       

Net realized and unrealized gain on investments

      0.37          0.45       
  

 

 

    

 

 

    

Total from investment operations

      0.32          0.46       
  

 

 

    

 

 

    

LESS DISTRIBUTIONS:

       

From net investment income

      (0.70 )       -           
  

 

 

    

 

 

    

Total distributions

      (0.70 )       -           
  

 

 

    

 

 

    

Net asset value, end of period

      $ 12.29          $ 12.67       
  

 

 

    

 

 

    

Total return (C)

      2.36 %       3.77 %  (D)   

RATIOS/SUPPLEMENTAL DATA:

       

Net assets, end of period (in 000’s)

      $ 13          $ 104       

Ratio of expenses to average net assets

      1.78 %       1.99 %  (E)   

Ratio of net investment loss to average net assets

      (0.36 %)       (0.32 %)  (E)   

Portfolio turnover rate

      11 %       30 %  (D)     
(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

 

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

96

Timothy Defensive Strategies Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each period

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Period
ended
September 30,
2010 (A)		  

Net asset value, beginning of period

      $ 11.12          $ 12.12          $ 11.28          $ 10.70          $ 10.00     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income

      0.09    (B)      0.06    (B)      0.02    (B)      0.09    (B)      0.02     

Net realized and unrealized gain (loss) on investments

      0.25          (1.04)         1.62          0.54          1.08     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.34          (0.98)         1.64          0.63          1.10     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.05)         -              (0.10)         -              -         

From net realized gains on investments

      (0.03)         (0.02)         (0.66)         (0.05)         (0.21)    

From return of capital

      -             -              (0.04)         -              (0.19)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.08)         (0.02)         (0.80)         (0.05)         (0.40)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

      $ 11.38          $ 11.12          $ 12.12          $ 11.28          $ 10.70     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (C)(D)

      3.06%         (8.09)%         14.87%         5.88%         10.97%   (E) 

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of period (in 000’s)

      $ 54,054          $ 51,859          $ 52,529          $ 43,670          $ 23,360     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      1.28%         -              -              -              -         

Expenses, net waiver and reimbursement

      1.28%         1.26%         1.33%          1.29%         1.51%   (F) 

Net investment income, before waiver and reimbursement

      0.78%         -              -              -              -         

Net investment income, net waiver and reimbursement

      0.78%         0.52%         0.20%         0.75%         0.13%   (F) 

Portfolio turnover rate

      24%         56%         247%         64%         41%   (E) 
(A)

For the period November 4, 2009 (Commencement of Operations) to September 30, 2010.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return calculation does not reflect sales load.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(E)

For periods of less than one full year, total return and turnover are not annualized.

(F)

Annualized.

 

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

97

Timothy Defensive Strategies Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each period

 

      For the Year
ended
    September 30,    
2014		     For the Year
ended
    September 30,    
2013		     For the Year
ended
    September 30,    
2012		     For the Year
ended
    September 30,    
2011		     For the Period
ended
    September 30,    
2010 (A)		  

Net asset value, beginning of period

      $ 10.82          $ 11.88          $ 11.09          $ 10.58          $ 10.00     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)

      -        *(B)      (0.03)  (B)      (0.07)  (B)      0.02   (B)      (0.06)    

Net realized and unrealized gain (loss) on investments

      0.25          (1.01)         1.58          0.54          1.08     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.25          (1.04)         1.51          0.56          1.02     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      -              -              (0.02)         -              -         

From net realized gains on investments

      (0.03)         (0.02)         (0.66)         (0.05)         (0.21)    

From return of capital

      -             -             (0.04)         -             (0.23)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.03)         (0.02)         (0.72)         (0.05)         (0.44)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

      $ 11.04          $ 10.82          $ 11.88          $ 11.09          $ 10.58     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (C)(D)

      2.27%         (8.75)%         13.91%         5.28%         10.18%  (E) 

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of period (in 000’s)

      $ 14,461          $ 16,718          $ 18,801        $ 13,100          $ 5,527     

Ratios to average net assets

           

Expenses, before waiver and reimbursement

      2.04%         -              -              -              -         

Expenses, net waiver and reimbursement

      2.03%         2.02%         2.09%         2.03%         2.28%  (F) 

Net investment loss, before waiver and reimbursement

      (0.02)%         -              -              -              -         

Net investment income (loss), net waiver and reimbursement

      (0.01)%         (0.25)%         (0.60)%         0.15%         (0.64)%  (F) 

Portfolio turnover rate

      24%         56%         247%         64%         41%  (E) 

*Amount is less than $0.005 per share.

(A)

For the period November 4, 2009 (Commencement of Operations) to September 30, 2010.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return calculation does not reflect redemption fee.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

    

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(E)

For periods of less than one full year, total return and turnover are not annualized.

(F)

Annualized.

 

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

98

Timothy Defensive Strategies Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

      For the Year
ended
    September 30,    
2014		     

For the Period ended
    September 30, 2013    

(A)

       
       

Net asset value, beginning of period

      $ 11.11           $ 11.11       
  

 

 

     

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

        

Net investment income (B)

      0.18           0.01       

Net realized and unrealized gain (loss) on investments

      0.20           (0.01)      
  

 

 

     

 

 

    

Total from investment operations

      0.38           0.00       
  

 

 

     

 

 

    

LESS DISTRIBUTIONS:

        

From net investment income

      (0.10)          -           

From net realized gains on investments

      (0.03)          -           
  

 

 

     

 

 

    

Total distributions

      (0.13)          -           
  

 

 

     

 

 

    

Net asset value, end of period

      $ 11.36           $ 11.11       
  

 

 

     

 

 

    

Total return (C)

      3.39%          0.00%  (D)   

RATIOS/SUPPLEMENTAL DATA:

        

Net assets, end of period

      $ 97           $ 100       

Ratios to average net assets

        

Expenses, before waiver and reimbursement

      0.74%          -           

Expenses, net waiver and reimbursement

      0.72%          1.01%  (E)   

Net investment income, before waiver and reimbursement

      1.50%          -           

Net investment income , net waiver and reimbursement

      1.52%          0.77%  (E)   

Portfolio turnover rate

      24%          56%  (D)     
(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

    

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

 

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

99

Timothy Strategic Growth Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
    September 30,    
2014		     For the Year
ended
    September 30,    
2013		     For the Year
ended
    September 30,    
2012		     For the Year
ended
    September 30,    
2011		     For the Year
ended
    September 30,    
2010		  

Net asset value, beginning of year

      $ 8.34          $ 7.44          $ 6.27          $ 6.49          $ 5.97     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)

      0.12   (A)      0.02   (A)      0.04   (A)      (0.02)   (A)      0.02     

Net realized and unrealized gain (loss) on investments

      0.45          0.93          1.13          (0.19)         0.50     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.57          0.95          1.17          (0.21)         0.52     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.01)         (0.05)         -              -              -         

From return of capital

      -              -              -              (0.01)         -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.01)         (0.05)         -              (0.01)         -         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 8.90           $ 8.34          $ 7.44          $ 6.27          $ 6.49     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      6.82%         12.78%         18.66%         (3.29)%         8.71%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 36,951          $ 34,466          $ 32,250          $ 31,269          $ 34,098     

Ratio of expenses to average net assets (D)

      1.07%         1.08%         1.15%         1.05%         1.11%    

Ratio of net investment income (loss), to average net assets (D)(E)

      1.34%         0.24%         (0.60)%         (0.23)%         0.30%    

Portfolio turnover rate

      14%         19%         33%         22%         25%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

    

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

These ratios exclude the impact of expenses of the underlying security holdings as represented in the Schedule of Investments.

(E)

Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

 

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

100

Timothy Strategic Growth Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each year

 

      For the Year
ended
    September 30,    
2014		     For the Year
ended
    September 30,    
2013		     For the Year
ended
    September 30,    
2012		     For the Year
ended
    September 30,    
2011		     For the Year
ended
    September 30,    
2010		  

Net asset value, beginning of year

      $ 7.69          $ 6.87          $ 5.82          $ 6.09          $ 5.64     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)

      0.03   (A)       (0.04)   (A)      (0.01)   (A)      (0.07)  (A)      (0.03)    

Net realized and unrealized gain (loss) on investments

      0.43          0.86           1.06           (0.20)         0.48     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.46          0.82          1.05          (0.27)         0.45     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 8.15          $ 7.69          $ 6.87          $ 5.82          $ 6.09     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      5.98%         11.94%         18.04%         (4.43)%         7.98%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 8,842          $ 7,668          $ 6,836          $ 6,446          $ 6,950       

Ratio of expenses to average net assets (D)

      1.82%         1.83%         1.90%         1.82%         1.86%    

Ratio of net investment income (loss), to average net assets (D)(E)

      0.50%         (0.52)%         (0.22)%         (1.00)%         (0.46)%    

Portfolio turnover rate

      14%         19%         33%         22%         25%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

    

Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

These ratios exclude the impact of expenses of the underlying security holdings as represented in the Schedule of Investments.

(E)

Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

 

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

101

Timothy Conservative Growth Fund (Class A Shares)

 

Selected data based on a share outstanding throughout each year

 

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

      $ 10.51          $ 9.95          $ 8.80          $ 8.83          $ 8.25     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income

      0.14  (A)      0.03  (A)      0.07  (A)      0.04  (A)      0.09    

Net realized and unrealized gain on investments

      0.41         0.61         1.09         0.01         0.60    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.55         0.64         1.16         0.05         0.69    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      (0.05)         (0.08)         (0.01)         (0.08)         (0.11)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.05)         (0.08)         (0.01)         (0.08)         (0.11)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 11.01          $ 10.51          $ 9.95          $ 8.80          $ 8.83     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      5.23%         6.44%         13.22%         0.50%         8.47%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 47,543          $ 44,238          $ 40,042        $ 35,331          $ 35,031     

Ratio of expenses to average net assets (D)

      1.05%         1.05%         1.11%         1.05%         1.13%    

Ratio of net investment income to average net assets (D)(E)

      1.26%         0.25%         0.71%         0.48%          1.07%    

Portfolio turnover rate

      19%         22%         32%         23%         31%    
(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

These ratios exclude the impact of expenses of the underlying security holdings as represented in the Schedule of Investments.

(E)

Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

 

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

102

Timothy Conservative Growth Fund (Class C Shares)

 

Selected data based on a share outstanding throughout each year

 

 

 

      For the Year
ended
September 30,
2014		     For the Year
ended
September 30,
2013		     For the Year
ended
September 30,
2012		     For the Year
ended
September 30,
2011		     For the Year
ended
September 30,
2010		  

Net asset value, beginning of year

      $ 9.79          $ 9.27          $ 8.24          $ 8.32          $ 7.83     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)

      0.03   (A)      (0.05)  (A)      (0.01)  (A)      (0.02)  (A)      0.02    

Net realized and unrealized gain (loss) on investments

      0.40          0.57         1.04         -       *      0.57    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.43          0.52         1.03         (0.02)         0.59    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS:

           

From net investment income

      -              -              -              (0.06)         (0.10)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      -              -              -              (0.06)         (0.10)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 10.22          $ 9.79          $ 9.27          $ 8.24          $ 8.32     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return (B)(C)

      4.39%         5.61%         12.50%         (0.25)%         7.57%    

RATIOS/SUPPLEMENTAL DATA:

           

Net assets, end of year (in 000’s)

      $ 12,359          $ 10,419          $ 9,191          $ 7,963          $ 7,365     

Ratio of expenses to average net assets (D)

      1.79%         1.80%         1.86%         1.80%         1.88%    

Ratio of net investment income (loss), to average net assets (D)(E)

      0.41%         (0.50)%         (0.06)%         (0.27)%         0.29%    

Portfolio turnover rate

      19%         22%         32%         23%         31%    

*Amount is less than $0.005 per share.

(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return calculation does not reflect sales load.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

These ratios exclude the impact of expenses of the underlying security holdings as represented in the Schedule of Investments.

(E)

Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

 

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

103

Timothy Emerging Markets Fund (Class A Shares)

 

Selected data based on a share outstanding throughout the period

 

 

     For the Year
ended
September 30,
2014		    

For the

Period ended
September 30, 2013
(A)

      

 

      

Net asset value, beginning of period

      $ 10.53         $ 10.00      
  

 

 

    

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

       

Net investment loss (B)

      (0.02)        (0.08)     

Net realized and unrealized gain (loss) on investments

      0.08         0.61      
  

 

 

    

 

 

    

Total from investment operations

      0.06         0.53      
  

 

 

    

 

 

    

LESS DISTRIBUTIONS:

       

From net investment income

      -             -          

From net realized gains on investments

      (0.36)        -          
  

 

 

    

 

 

    

Total distributions

      (0.36)        -          
  

 

 

    

 

 

    

Net asset value, end of period

      $ 10.23         $ 10.53      
  

 

 

    

 

 

    

Total return (C)(D)

      0.61%         5.30%   (E)   

RATIOS/SUPPLEMENTAL DATA:

       

Net assets, end of period (in 000’s)

      $ 10,803         $ 8,675      

Ratios to average net assets

       

Expenses, before waiver and reimbursement

      2.55%         -          

Expenses, net waiver and reimbursement

      2.55%         3.03%   (F)   

Net investment loss, before waiver and reimbursement

      (0.19%)         -          

Net investment loss, net waiver and reimbursement

      (0.19%)         (0.95%)   (F)   

Portfolio turnover rate

      39%         19%   (E)   

 

(A)

For the period December 3, 2012 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return calculation does not reflect sales load.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(E)

For periods of less than one full year, total return and turnover are not annualized.

(F)

Annualized.

 

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

104

Timothy Emerging Markets Fund (Class C Shares)

 

Selected data based on a share outstanding throughout the period

 

     For the Year
ended
September 30,
2014		     

For the

Period ended
September 30, 2013
(A)

      

 

       

Net asset value, beginning of period

      $             10.48          $             10.00      
  

 

 

     

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

        

Net investment loss(B)

      (0.09)         (0.12)     

Net realized and unrealized gain (loss) on investments

      0.06          0.60      
  

 

 

     

 

 

    

Total from investment operations

      (0.03)         0.48      
  

 

 

     

 

 

    

LESS DISTRIBUTIONS:

        

From net investment income

      -               -           

From net realized gains on investments

      (0.36)         -           
  

 

 

     

 

 

    

Total distributions

      (0.36)         -           
  

 

 

     

 

 

    

Net asset value, end of period

      $ 10.09          $ 10.48      
  

 

 

     

 

 

    

Total return (C)(D)

      (0.27)%         4.80%   (E)   

RATIOS/SUPPLEMENTAL DATA:

        

Net assets, end of period (in 000’s)

      $ 883          $ 291      

Ratios to average net assets

        

Expenses, before waiver and reimbursement

      3.25%         -           

Expenses, net waiver and reimbursement

      3.25%         3.76%   (F)   

Net investment loss, before waiver and reimbursement

      (0.83%)         -           

Net investment loss, net waiver and reimbursement

      (0.83%)         (1.39%)   (F)   

Portfolio turnover rate

      39%         19%   (E)   

 

(A)

For the period December 3, 2012 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return calculation does not reflect redemption fee.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(E)

For periods of less than one full year, total return and turnover are not annualized.

(F)

Annualized.

 

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

105

Timothy Emerging Markets Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

 

    

For the Year

ended

September 30,

2014

    

For the

Period ended

September 30, 2013
(A)

      

 

      

Net asset value, beginning of period

      $             10.53         $             9.96      
  

 

 

    

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

       

Net investment income (loss) (B)

      0.03         -        *   

Net realized and unrealized gain on investments

      0.05    (F)      0.57      
  

 

 

    

 

 

    

Total from investment operations

      0.08         0.57      
  

 

 

    

 

 

    

LESS DISTRIBUTIONS:

       

From net realized gains on investments

      (0.36)        -           
  

 

 

    

 

 

    

Total distributions

      (0.36)        -           
  

 

 

    

 

 

    

Net asset value, end of period

      $ 10.25         $ 10.53      
  

 

 

    

 

 

    

Total return (C)

      0.81%        5.72%   (D)   

RATIOS/SUPPLEMENTAL DATA:

       

Net assets, end of period

      $ 333         $ 106      

Ratios to average net assets

       

Expenses, before waiver and reimbursement

      2.25%        -           

Expenses, before waiver and reimbursement

      2.25%        2.78%   (E)   

Net investment income, before waiver and reimbursement

      0.25%        -           

Net investment income (loss), net waiver and reimbursement

      0.26%        (0.70%)   (E)   

Portfolio turnover rate

      39%        19%   (D)   

 

*Amount is less than $0.005 per share.

(A)

For the period August 1, 2013 (Commencement of Operations) to September 30, 2013.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been higher or lower if certain expenses had not been reimbursed, waived or recouped.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

(F)

Realized and unrealized gains per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period.

 

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

106

Timothy Growth & Income Fund (Class A Shares)

 

Selected data based on a share outstanding throughout the period

 

    

For the

Period ended
September 30, 2014
(A)

      

 

    

Net asset value, beginning of period

      $             10.00       
  

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

     

Net investment loss (B)

      (0.02)      

Net realized and unrealized gain on investments

      0.97       
  

 

 

    

Total from investment operations

      0.95       
  

 

 

    

Net asset value, end of period

      $ 10.95       
  

 

 

    

Total return (C)(D)

      9.50%  (E)   

RATIOS/SUPPLEMENTAL DATA:

     

Net assets, end of period (in 000’s)

      $ 24,272      

Ratios to average net assets

     

Expenses, before waiver and reimbursement

      1.68%  (F)   

Expenses, net waiver and reimbursement

      1.67%  (F)   

Net investment loss, before waiver and reimbursement

      (0.21%)  (F)   

Net investment loss, net waiver and reimbursement

      (0.21%)  (F)   

Portfolio turnover rate

      21%  (E)   

 

(A)

For the period October 1, 2013 (Commencement of Operations) to September 30, 2014.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return calculation does not reflect sales load.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

(E)

For periods of less than one full year, total return and turnover are not annualized.

(F)

Annualized.

 

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

107

Timothy Growth & Income Fund (Class C Shares)

 

Selected data based on a share outstanding throughout the period

 

     For the      
     Period ended      
     September 30, 2014      
     (A)      

 

    

Net asset value, beginning of period

      $             10.00       
  

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

     

Net investment loss (B)

      (0.08)      

Net realized and unrealized gain on investments

      0.95       
  

 

 

    

Total from investment operations

      0.87       
  

 

 

    

Net asset value, end of period

      $ 10.87       
  

 

 

    

Total return (C)(D)

      8.70%  (E)   

RATIOS/SUPPLEMENTAL DATA:

     

Net assets, end of period (in 000’s)

      $ 2,081       

Ratios to average net assets

     

Expenses, before waiver and reimbursement

      2.20%  (F)   

Expenses, net waiver and reimbursement

      2.19%  (F)   

Net investment loss, before waiver and reimbursement

      (0.72%)  (F)   

Net investment loss, net waiver and reimbursement

      (0.70%)  (F)   

Portfolio turnover rate

      21%  (E)   

 

(A)

For the period October 1, 2013 (Commencement of Operations) to September 30, 2014.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return calculation does not reflect redemption fee.

(D)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

(E)

For periods of less than one full year, total return and turnover are not annualized.

(F)

Annualized.

 

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

108

Timothy Growth & Income Fund (Class I Shares)

 

Selected data based on a share outstanding throughout the period

 

    

For the

Period ended
September 30, 2014
(A)

      

 

    

Net asset value, beginning of period

      $             10.00       
  

 

 

    

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

     

Net investment income (B)

      0.04       

Net realized and unrealized gain on investments

      0.92   (F)   
  

 

 

    

Total from investment operations

      0.96       
  

 

 

    

Net asset value, end of period

      $ 10.96       
  

 

 

    

Total return (C)

      9.60%  (D)   

RATIOS/SUPPLEMENTAL DATA:

     

Net assets, end of period (000’s)

      $ 1,507       

Ratios to average net assets

     

Expenses, before waiver and reimbursement

      1.18%  (E)   

Expenses, net waiver and reimbursement

      1.16%  (E)   

Net investment income (loss), before waiver and reimbursement

      0.30%  (E)   

Net investment income (loss), net waiver and reimbursement

      0.31%  (E)   

Portfolio turnover rate

      21%  (D)   

 

(A)

For the period October 1, 2013 (Commencement of Operations) to September 30, 2014.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

(D)

For periods of less than one full year, total return and turnover are not annualized.

(E)

Annualized.

(F)

Realized and unrealized gains per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period.

 

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

109

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

Note 1 | Significant Accounting Policies

The Timothy Plan (the “Trust”) is organized as a series of a Delaware business trust pursuant to a trust agreement dated December 16, 1993. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end diversified management investment company. As of September 30, 2014, the Trust consisted of fifteen series. These financial statements include the following thirteen series: Timothy Plan Aggressive Growth Fund, Timothy Plan International Fund, Timothy Plan Large/Mid Cap Growth Fund, Timothy Plan Small Cap Value Fund, Timothy Plan Large/Mid Cap Value Fund, Timothy Plan Fixed Income Fund, Timothy Plan High Yield Bond Fund, Timothy Plan Defensive Strategies Fund, Timothy Plan Israel Common Values Fund, Timothy Plan Strategic Growth Fund, Timothy Plan Conservative Growth Fund, Timothy Plan Emerging Markets Fund and Timothy Plan Growth & Income Fund (the “Funds”).

The Timothy Plan Aggressive Growth Fund’s investment objective is long-term growth of capital. The Fund seeks to achieve its investment objective by normally investing at least 80% of the Fund’s total assets in U.S. common stocks without regard to market capitalizations and investing in the securities of a limited number of companies which the Fund’s Advisor believes show a high probability for superior growth.

The Timothy Plan International Fund’s investment objective is long-term growth of capital. The Fund seeks to achieve its investment objective by normally investing at least 80% of the Fund’s total assets in the common stock and similar securities of foreign companies through the purchase of American Depositary Receipts (“ADRs”) without regard to market capitalization, investing its assets in the ADRs of companies which the Fund’s advisor believes show a high probability for superior growth, and allocating investments across countries and regions considering the size of the market in each country and region relative to the size of the international market as a whole. Although the Fund maintains a diversified investment portfolio, the political or economic developments within a particular country or region may have an adverse effect on the ability of domiciled issuers to meet their obligations. Additionally, political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings.

The Timothy Plan Large/Mid Cap Growth Fund’s investment objective is 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 seeks to achieve its investment objective by normally investing at least 80% of the Fund’s total assets in U.S. common stocks with market capitalizations in excess of $2 billion.

The Timothy Plan Small Cap Value Fund’s primary objective is long-term capital growth, with a secondary objective of current income. The Fund seeks to achieve its investment objective by primarily investing at least 80% of its assets in U.S. common stocks whose market capitalization is generally less than $2 billion.

The Timothy Plan Large/Mid Cap Value Fund’s investment objective is long-term capital growth, with a secondary objective of current income. The Fund seeks to achieve its investment objective by primarily investing in U.S. common stocks. The Fund will invest at least 80% of its assets in the common stock of companies whose total market capitalization generally exceeds $2 billion.

The Timothy Plan Fixed Income Fund seeks to generate a high level of current income consistent with prudent investment risk. To achieve its investment objective, the Fund normally invests in a diversified portfolio of debt securities. These include corporate bonds, U.S. Government and agency securities, convertible securities and preferred securities. The Fund will generally only purchase high quality securities.

The Timothy Plan High Yield Bond Fund’s investment objective is to generate a high level of current income. To achieve its investment objective, the Fund normally invests in a diversified portfolio of debt securities. These include corporate bonds, U.S. Government and agency securities, convertible securities and preferred securities. The Fund will generally purchase securities that are not investment-grade, meaning securities with a rating of “BBB” or lower as rated by Standard and Poor’s or a comparable rating by another nationally recognized rating agency. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment-grade securities.

 

110

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

The Timothy Plan Defensive Strategies Fund’s investment objective is the protection of principal through aggressive, proactive reactions to prevailing economic conditions. To achieve its investment objective, the Fund normally invests in Real Estate Investment Trusts (“REITs”), commodities based Exchange-Traded Funds (“ETFs”), and Treasury Inflation Protected Securities (“TIPS”).

The Timothy Plan Israel Common Values Fund seeks to provide long-term growth of capital. This Fund seeks to achieve its investment objectives by normally investing at least 80% of the Fund’s total assets in the common stock of companies domiciled and/or headquartered in Israel through the purchase of American Depository Receipts (ADRs) and direct investments in such companies on foreign stock exchanges, without regard to market capitalizations.

The Timothy Plan Strategic Growth Fund seeks to generate medium to high levels of long-term capital growth. The Fund seeks to achieve its investment objective by normally investing at least 75% of its net assets in the following Funds which are other series of the Trust: approximately 2-10% of its net assets in the Timothy Plan Small Cap Value Fund; approximately 10-20% of its net assets in the Timothy Plan Large/Mid Cap Value Fund; approximately 10-20% of its net assets in the Timothy Plan Large/Mid Cap Growth Fund; approximately 6-18% of its net assets in the Timothy Plan High Yield Bond Fund; approximately 10-20% of its net assets in the Timothy Plan International Fund; approximately 2-10% of its net assets in the Timothy Plan Aggressive Growth Fund; approximately 10-30% of its net assets in the Timothy Plan Defensive Strategies Fund; approximately 0-10% of its net assets in the Timothy Plan Israel Common Values Fund; approximately 0-10% of its net assets in the Timothy Plan Emerging Markets Fund; and approximately 5-20% of its net assets in the Timothy Plan Growth & Income Fund.

The Timothy Plan Conservative Growth Fund seeks to generate moderate levels of long-term capital growth with a secondary objective of current income. The Fund seeks to achieve its investment objective by normally investing at least 75% of its net assets in the following Funds which are other series of the Trust: approximately 2-10% of its net assets in the Timothy Plan Small Cap Value Fund; approximately 5-15% of its net assets in the Timothy Plan Large/Mid Cap Value Fund; approximately 5-15% of its net assets in the Timothy Plan Large/Mid Cap Growth Fund; approximately 2-5% of its net assets in the Timothy Plan Aggressive Growth Fund; approximately 6-15% of its net assets in the Timothy Plan High Yield Bond Fund; approximately 0-10% of its net assets in the Timothy Plan International Fund; approximately 20%-40% of its net assets in the Timothy Plan Fixed Income Fund; approximately 10-30% of its net assets in the Timothy Plan Defensive Strategies Fund; approximately 0-10% of its net assets in the Timothy Plan Israel Common Values Fund; approximately 0-10% of its net assets in the Timothy Plan Emerging Markets Fund; and approximately 5-20% of its net assets in the Timothy Plan Growth & Income Fund.

The Timothy Plan Emerging Markets Fund commenced operations on December 3, 2012. The Fund’s investment objective is long-term growth of capital. The Fund seeks to achieve its investment objectives by normally investing at least 80% of the Fund’s total assets in the common stock of companies domiciled and/or headquartered in countries that the Fund’s Advisor believes are experiencing rapid or above average growth or industrialization through the purchase of American Depository Receipts (ADRs) and direct investments in such companies on foreign stock exchanges, without regard to market capitalizations.

The Timothy Plan Growth & Income Fund commenced operations on October 1, 2013. The Fund’s investment objective is to provide total return through a combination of growth and income and preservation of capital in declining markets. The Fund seeks to achieve its investment objectives by employing a proprietary investment model to select equity securities for the Fund that the Fund’s Advisor believes are undervalued and more likely to appreciate. The Fund’s Advisor focuses on characteristics such as management commitment, value and neglect, and on equity securities that are underrepresented by institutional investors. The Fund’s Advisor also assesses a number of fundamental factors such as earnings, earnings trends, price earnings multiples, return on assets and other financial statement data, as well as other proprietary calculations. The model evaluates over 8,500 companies of all capitalization ranges. For the Fund, the Fund’s Advisor refines the model by using a capitalization screen and evaluates thousands of companies within the appropriate capitalization range. The Fund’s Advisor normally will sell a security when the investment no longer meets the Fund’s Advisor investment criteria.

 

111

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

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”) for investment companies.

 

  A.

SECURITY VALUATION AND FAIR VALUE MEASUREMENTS

All investments in securities are recorded at their estimated fair value as described in Note 2.

 

  B.

INVESTMENT INCOME AND SECURITIES TRANSACTIONS

Security transactions are accounted for on the date the securities are purchased or sold (trade date). The costing method for the Timothy Plan Funds is FIFO (first-in-first-out). Dividend income is recognized on the ex-dividend date. Interest income and expenses are recognized on an accrual basis. The Timothy Plan Aggressive Growth Fund, Large/Mid Cap Growth Fund, Large/Mid Cap Value Fund, Small Cap Value Fund, Israel Common Values Fund, Defensive Strategies Fund and Emerging Markets Fund have made certain investments in REITs and Master Limited Partnerships (“MLPs”). Dividend income from REITs and MLPs is recognized on the ex-dividend date. It is common for distributions from REITs and MLPs to exceed taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. Income or loss from the MLPs is reclassified upon receipt of the MLPs’ K-1. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds’ investments in REITS are reported to the Funds after the end of the calendar year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the calendar year. Estimates are based on the most recent REIT distribution information available. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Discounts and premiums on securities purchased are amortized over the lives of the respective securities. The ability of issuers of debt securities held by the Funds to meet their obligations may be affected by economic and political developments in a specific country or region.

 

  C.

FOREIGN CURRENCY

Investment securities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included in the net realized and unrealized gain or loss from investments. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

 

  D.

NET ASSET VALUE PER SHARE

The Net Asset Value (“NAV”) per share of the capital stock of the Funds is determined daily as of the close of trading on the New York Stock Exchange by dividing the value of its net assets by the number of Fund shares outstanding. The NAV is calculated separately for each class of each Fund in the Trust. The net asset value of the classes may differ because of different fees and expenses charged to each class.

 

  E.

EXPENSES

Expenses incurred by the Trust that do not relate to a specific Fund of the Trust are allocated to the individual Funds based on each Fund’s relative net assets or another appropriate basis as determined by the Board of Trustees (the “Board”).

 

112

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

  F.

CLASSES

There are three classes of shares currently offered by the Trust: Class A shares are offered with a front-end sales charge and ongoing service/distribution fees; Class C shares are offered with a contingent deferred sales charge (“CDSC”) that ends after the first year and ongoing service and distribution fees; Class I shares, which commenced operations on August 1, 2013, are offered without any sales charges or ongoing service distribution fees.

Class specific expenses are borne by each specific class. Income, expenses, and realized and unrealized gains/losses are allocated to the respective classes on the basis of relative daily net assets.

 

  G.

USE OF ESTIMATES

In the preparation of financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the year ended. Actual results could differ from those estimates.

 

  H.

FEDERAL INCOME TAXES

It is the policy of each Fund to continue to comply with all requirements under subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Each Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income or gains. Therefore, no federal income tax or excise provision is required.

As of September 30, 2014, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended September 30, 2014, the Funds did not incur any interest or penalties. The Funds are not subject to examination by U.S. federal tax authorities for tax years before 2011, or since inception if after 2011, and are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially within the next twelve months.

 

  I.

INDEMNIFICATION

The Trust indemnifies its officers and trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnities. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be remote.

 

  J.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations, or Net Asset Values (NAVs) per share of the Funds. Reclassifications for the fiscal year ended September 30, 2014 are as follows:

 

113

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

Fund    Paid In Capital     Undistributed
Ordinary
Income (Loss)		      Undistributed Long-
Term Gains (Loss)		  

Aggressive Growth Fund

    $ -          $ 479,095       $ (479,095 ) 

  International Fund

      (93,192 )      117,353         (24,161 ) 

  Large/Mid Cap Growth Fund

      -            152,300         (152,300 ) 

  Small Cap Value Fund

      -            278,303         (278,303 ) 

  Large/Mid Cap Value Fund

      24,511        185,080         (209,591 ) 

  Fixed Income Fund

      -            220,543         (220,543 ) 

  Israel Common Values Fund

      -            25,397         (25,397 ) 

  Defensive Strategies Fund

      (8,409 )      14,427         (6,018 ) 

  Emerging Markets Fund

      -            16,296         (16,296 ) 

  Growth & Income Fund

      (17,286 )      17,286         -       

Note 2 | Security Valuation and Fair Value Measurements

Fair value is defined as the price that a Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.

Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including such a pricing model 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 developed 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.

VALUATION OF FUND OF FUNDS

A Fund may invest in portfolios of open-end or closed-end investment companies (the “Underlying Funds”). The Underlying Funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value based upon methods established by the board of directors of the Underlying Funds.

Open-ended funds are valued at their respective net asset values as reported by such investment companies. The shares of many closed-end investment companies, after their initial public offering, frequently trade at a price per share, which is different than the net asset value per share. The difference represents a market premium or market discount of such shares. There can be no assurances that the market discount or market premium on shares of any closed-end investment company purchased by the Fund will not change.

The Trust utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

ŸLevel 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access.

ŸLevel 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

114

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

ŸLevel 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Each Fund generally determines the total value of each class of its shares by using market prices for the securities comprising its portfolio. Equity securities, including common stock, ADRs, REITs, MLPs, ETFs and warrants are generally valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Advisor or Sub-Advisor believes such prices more accurately reflect the fair value of such securities. Securities that are traded on any stock exchange are generally valued by the pricing service at the last quoted sale price. Lacking a last sale price, an exchange traded security is generally valued by the pricing service at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued by the pricing service at the NASDAQ Official Closing Price. When using the market quotations or close prices provided by the pricing service and when the market is considered active, the security will be classified as a Level 1 security. Equity securities traded on inactive markets or valued by reference to similar instruments are categorized as a Level 2. When market quotations are not readily available, when the Advisor or Sub-Advisor determines that the market quotation or the price provided by the pricing service does not accurately reflect the current fair value, or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the Advisor or Sub-Advisor, in conformity with guidelines adopted by and subject to review by the Board. These securities will generally be categorized as Level 3 securities.

Investments in mutual funds, including money market mutual funds, are generally priced at the ending NAV provided by the service agent of the funds. These securities will be categorized as Level 1 securities.

Fixed income securities such as corporate bonds, restricted corporate bonds, asset-backed securities, mortgage-backed securities, U.S. government securities, U.S. government agency securities and treasury inflation protected securities, when valued using market quotations in an active market, will be categorized as Level 1 securities. However, they may be valued on the basis of prices furnished by a pricing service when the Advisor or Sub-Advisor believes such prices more accurately reflect the fair value of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. These securities will generally be categorized as Level 2 securities. If the Advisor or Sub-Advisor decides that a price provided by the pricing service does not accurately reflect the fair value of the securities, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Advisor or Sub-Advisor, in conformity with guidelines adopted by and subject to review of the Board. These securities will be categorized as Level 3 securities.

Short-term investments in fixed income securities (those with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity) may be valued by using the amortized cost method of valuation, which the Board has determined will represent fair value. These securities will be classified as Level 2 securities.

The Board has delegated to the Advisor and/or Sub-Advisors responsibility for determining the value of Fund portfolio securities under certain circumstances. Under such circumstances, the Advisor or Sub-Advisor will use its best efforts to arrive at the fair value of a security held by the Fund under all reasonably ascertainable facts and circumstances. The Advisor must prepare a report for the Board not less than quarterly containing a complete listing of any securities for which fair value pricing was employed and detailing the specific reasons for such fair value pricing. The Board has adopted written policies and procedures to guide the Advisor and Sub-Advisors with respect to the circumstances under which, and the methods to be used, in fair valuing securities.

 

115

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

The following is a summary of the inputs used to value each Fund’s assets as of September 30, 2014:

Aggressive Growth Fund

 

     Assets

     Level 1        Level 2        Level 3        Total   

Common Stock

   $         21,986,557      $                       -      $                       -      $         21,986,557   

Master Limited Partnerships

     452,498        -        -        452,498   

REITs

     89,334        -        -        89,334   

Money Market Fund

     377,838        -        -        377,838   

Total 

   $ 22,906,227      $ -      $ -      $ 22,906,227   

     International Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Common Stock

   $ 55,291,628      $ -      $ -      $ 55,291,628   

Money Market Fund

     2,972,365        -        -        2,972,365   

Total 

   $ 58,263,993      $ -      $ -      $ 58,263,993   

     Large/Mid Cap Growth Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Common Stock

   $ 59,039,471      $ -      $ -      $ 59,039,471   

Master Limited Partnerships

     986,369        -        -        986,369   

Money Market Fund

     2,017,276        -        -        2,017,276   

Total 

   $ 62,043,116      $ -      $ -      $ 62,043,116   

     Small Cap Value Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Common Stock

   $ 71,592,951      $ -      $ -      $ 71,592,951   

Master Limited Partnerships

     1,444,312                        1,444,312   

REITs

     7,196,034        -        -        7,196,034   

Money Market Fund

     411,973        -        -        411,973   

Total 

   $ 80,645,270      $ -      $ -      $ 80,645,270   

     Large/Mid Cap Value Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Common Stock

   $ 142,849,027      $ -      $ -      $ 142,849,027   

Master Limited Partnerships

     3,072,420        -        -        3,072,420   

REITs

     3,383,303        -        -        3,383,303   

Money Market Fund

     8,000,633        -        -        8,000,633   

Total 

   $ 157,305,383      $ -      $ -      $ 157,305,383   

 

116

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

     Fixed Income Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Corporate Bonds

   $                       -      $ 30,016,374      $                       -      $ 30,016,374   

U.S. Government Notes & Bonds

     -        20,641,044        -        20,641,044   

Government Mortgage-Backed Securities

     -        21,739,105        -        21,739,105   

Money Market Fund

     2,777,823        -        -        2,777,823   

Total 

   $ 2,777,823      $ 72,396,523      $ -      $         75,174,346   

     High Yield Bond Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Corporate Bonds

   $ -      $ 42,907,891      $ -      $ 42,907,891   

Money Market Fund

     676,549        -        -        676,549   

Total 

   $ 676,549      $ 42,907,891      $ -      $ 43,584,440   

     Israel Common Values Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Common Stock

   $         15,186,602      $                       -      $ -      $ 15,186,602   

REITs

     324,910        -        -        324,910   

Money Market Fund

     676,183        -        -        676,183   

Total 

   $ 16,187,695      $ -      $ -      $ 16,187,695   

     Defensive Strategies Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Common Stock

   $ 17,848,355      $ -      $ -      $ 17,848,355   

REITs

     20,072,368        -        -        20,072,368   

Exchange Traded Funds

     5,753,294        -        -        5,753,294   

Government Mortgage-Backed Securities

     -        1,948,052        -        1,948,052   

Corporate Bonds

     -        2,281,352        -        2,281,352   

Treasury Inflation Protected Securities (TIPS)

     -        17,287,648        -        17,287,648   

Money Market Fund

     3,262,240        -        -        3,262,240   

Total 

   $ 46,936,257      $ 21,517,052      $ -      $ 68,453,309   

     Strategic Growth Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Mutual Funds

   $ 45,946,095      $ -      $ -      $ 45,946,095   

Total 

   $ 45,946,095      $ -      $ -      $ 45,946,095   

     Conservative Growth Fund

        

     Assets

     Level 1        Level 2        Level 3        Total   

Mutual Funds

   $ 59,716,969      $ -      $ -      $ 59,716,969   

Money Market Fund

     162,747        -        -        162,747   

Total 

   $ 59,879,716      $ -      $ -      $ 59,879,716   

 

117

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

     Emerging Markets Fund

            

     Assets

      Level 1         Level 2         Level 3         Total   

Common Stock

    $     10,014,493       $ 305,336       $ -       $ 10,319,829   

Preferred Stock

      563,884         -         -         563,884   

REITs

      479,389         -         -         479,389   

Money Market Fund

      350,124         -         -         350,124   

Total 

    $ 11,407,890       $ 305,336       $ -       $ 11,713,226   

     Growth & Income Fund

            

     Assets

      Level 1         Level 2         Level 3         Total   

Common Stock

    $ 12,378,297       $ -       $ -       $ 12,378,297   

Government Notes & Bonds

      -         13,644,075         -         13,644,075   

Money Market Fund

      1,819,491         -         -         1,819,491   

Total 

    $ 14,197,788       $     13,644,075       $ -       $     27,841,863   

Refer to the Schedules of Investments for industry classifications.

The Funds did not hold any assets at any time during the reporting year end in which significant unobservable inputs were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting year end. The Funds did not hold any derivative instruments during the reporting period. During the year ended September 30, 2014, transfers into and out of Level 1 and Level 2 are listed in the table below. The Funds’ policy is to recognize transfers at the end of the reporting period.

The following amounts were transfers in/(out) of Level 1/Level 2 assets:

 

 

Emerging Markets Fund

  

   

 

 
 
 

 

Common Stock -
Desarrolladora Homex
SAB de CV

 

  
  
  

    
 
 		 Common Stock -
Lifestyle International
Holdings Ltd		   
  
  		      Total   
 

Transfers into Level 2 from Level 1

     $                        24,041        $                255,702          $            279,743    
 

Transfers from Level 2 into Level 1

     -         -          -    
 

Net Transfers in/(Out) of Level 2

     $                         24,041        $                255,702          $            279,743    

There were no transfers from Level 2 to Level 1. Transfers that were made into Level 2 represent securities being fair valued using observable inputs. A quoted price was not available at the time of valuation; therefore a fair valued price using observable inputs was used. It is the Funds’ policy to recognize transfers into or out of Level 1 and Level 2 at the end of the reporting period.

 

118

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

Note 3 | Purchases and Sales of Securities

The following is a summary of the cost of purchases and proceeds from the sale of securities, other than short-term investments, for the year ended September 30, 2014:

 

      Purchases    Sales     
     U.S. Gov’t          U.S. Gov’t        
 Fund    Obligations    Other    Obligations    Other   

  Aggressive Growth

    $                -         $20,804,342     $                -         $19,911,004     

  International

    -         29,631,565     -         14,715,190     

  Large/Mid Cap Growth

    -         35,755,373     -         34,666,459     

  Small Cap Value

    -         59,524,427     -         56,057,763     

  Large/Mid Cap Value

    -         56,553,173     -         52,180,528     

  Fixed Income

    4,008,008     8,361,680     6,200,654     6,466,279     

  High Yield Bond

    -         28,264,621     -         21,509,267     

  Israel Common Values

    -         6,176,420     -         1,547,271     

  Defensive Strategies

    3,827,018     11,288,254     5,357,923     12,294,564     

  Strategic Growth

    -         11,142,305     -         6,447,005     

  Conservative Growth

    -         17,738,054     -         11,184,686     

  Emerging Markets

    -         6,533,155     -         3,941,902     

  Growth & Income

    14,149,575     14,422,931     664,385     3,002,661     

Note 4 | Payments by Affiliates

As a result of a trade error, the Small Cap Value Fund experienced a loss of $17 for the year ended September 30, 2014, which was reimbursed by the Advisor.

Note 5 | Investment Management Fee and Other Transactions with Affiliates

Timothy Partners, Ltd., (“TPL”) is the investment advisor for the Funds pursuant to an investment advisory agreement (the “Agreement”) that was renewed by the Board on February 28, 2014. TPL supervises the investment of the assets of each Fund in accordance with the objectives, policies and restrictions of the Trust. Under the terms of the Agreement, as amended, TPL receives a fee, accrued daily and paid monthly, at an annual rate of 1.20% of the average daily net assets of the Timothy Plan Emerging Markets Fund; 1.00% of the average daily net assets of the Timothy Plan International Fund and Timothy Plan Israel Common Values Fund; 0.85% of the average daily net assets of the Timothy Plan Aggressive Growth, the Timothy Plan Small Cap Value, the Timothy Plan Large/Mid Cap Growth, Timothy Plan Growth & Income, and the Timothy Plan Large/Mid Cap Value Funds; 0.60% of the average daily net assets of the Timothy Plan Fixed Income, the Timothy Plan High Yield Bond, and the Timothy Plan Defensive Strategies Funds; and 0.65% of the average daily net assets of the Timothy Plan Conservative Growth and the Timothy Plan Strategic Growth Funds. TPL has voluntarily agreed to reduce the fee it receives from the Emerging Markets Fund to 1.15%; from the International Fund to 0.95%; from the Small Cap Value Fund, the Large/Mid Cap Growth Fund, the Growth & Income Fund, and the Large/Mid Cap Value Fund to 0.80%; from the Aggressive Growth Fund to 0.75%; from the High Yield Bond Fund and the Defensive Strategies Fund to 0.55%; and from the Fixed Income Fund to 0.40% . Such voluntary fee reductions/reimbursements may be authorized by TPL at any time, but such action shall not obligate TPL to waive any fees in the near future. Such voluntary fee reductions/reimbursements are not subject to future recoupment. An officer and trustee of the Funds is also an officer and owner of the Advisor.

 

119

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

For the year ended September 30, 2014, TPL waived and reimbursed the Funds as follows:

 

      Year Ended     
Fund    September 30, 2014   

Aggressive Growth Fund

      $                        2,076     

International Fund

    2,607     

Large/Mid Cap Growth Fund

    2,794     

Small Cap Value Fund

    3,669     

Large/Mid Cap Value Fund

    7,079     

Fixed Income Fund

            113,094     

High Yield Bond Fund

    1,964     

Defensive Strategies Fund

    3,066     

Emerging Markets Fund

    541     

Growth & Income Fund

    1,200     

Gemini Fund Services, LLC (“GFS”) provides administrative, fund accounting, and transfer agency services to the Funds pursuant to agreements with the Trust, for which it receives from each Fund: (i) basis points in decreasing amounts as assets reach certain breakpoints; and (ii) any related out-of-pocket expenses. Fees are billed monthly as follows:

Fund Accounting and Fund Administration Fees:

     Fund Complex Base annual fee:

25 basis points (0.25%) on the first $200 million of net assets

15 basis points (0.15%) on the next $200 million of net assets;

8 basis points (0.08%) on the next $600 million of net assets; and

6 basis points (0.06%) on net assets greater than $1 billion.

Transfer agency fees for the Funds are combined with the Fund Accounting and Fund Administration fees under the Trust’s agreement with GFS. Therefore, there is no separate base annual fee per Fund or share class.

An officer of the Trust is also an employee of GFS, and is not paid any fees directly by the Trust for serving in such capacity.

The Timothy Plan Aggressive Growth, Timothy Plan International, Timothy Plan Large/Mid Cap Growth, Timothy Plan Small Cap Value, Timothy Plan Large/Mid Cap Value, Timothy Plan Fixed Income, Timothy Plan High Yield Bond, Timothy Plan Defensive Strategies, Timothy Plan Israel Common Values, Timothy Plan Emerging Markets, and Timothy Plan Growth & Income Funds have adopted shareholder services plans (the “Plans”) pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended. The Plans provide that the Funds will pay TPL or others for expenses that relate to the promotion or distribution of shares. Under the Class A Plan, the Funds will pay TPL a fee at an annual rate of 0.25%, payable monthly, of the average daily net assets attributable to such class of shares. Under the Class C Plan, the Funds will pay TPL a fee at an annual rate of 1.00%, payable monthly, of which, 0.25% may be a service fee and 0.75% may be payable to outside broker/dealers, of the average daily net assets attributable to such class of shares. Class I shares are not subject to the shareholder services plan.

The Timothy Plan Conservative Growth and Timothy Plan Strategic Growth Funds have adopted shareholder services plans (the “Plans”) pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended. The Plans provide that the Funds will pay TPL or others for expenses that relate to the promotion or distribution of shares. Class A shares of the Funds do not impose a service fee. Under the Class C Plan, the Funds will pay TPL a fee at an annual rate of 0.75%, payable monthly to outside broker/dealers, of the average daily net assets attributable to such class of shares.

 

120

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

For the year ended September 30, 2014, the Funds paid TPL under the terms of the Plans as follows:

 

 

   
 Fund    12b-1 Fees     
    

Year Ended

 

     
      September 30, 2014     

 Aggressive Growth

    $80,997   

 International

    148,599   

 Large/Mid Cap Growth

    188,952   

 Small Cap Value

    260,766   

 Large/Mid Cap Value

    483,161   

 Fixed Income

    237,959   

 High Yield Bond

    125,006   

 Israel Common Values

    50,013   

 Defensive Strategies

    282,265   

 Strategic Growth

    64,014   

 Conservative Growth

    85,548   

 Emerging Markets

    29,926   

 Growth & Income

    51,410   

TPL also serves as the principal underwriter of the Funds’ shares. An officer and trustee of the Funds is also an officer of the principal underwriter. For the year ended September 30, 2014, TPL received sales charges deducted from the proceeds of sales of Class A capital shares and CDSC fees deducted from the redemption of Class C capital shares as follows:

 

 Fund    (Class A)              (Class C)                 

 Aggressive Growth

      $10,513       $389     

 International

      17,889       99     

 Large/Mid Cap Growth

      22,777       1,488     

 Small Cap Value

      32,286       520     

 Large/Mid Cap Value

      57,688       757     

 Fixed Income

      26,220       991     

 High Yield Bond

      16,296       1,135     

 Israel Common Values

      11,812       221     

 Defensive Strategies

      25,654       1,050     

 Strategic Growth

      25,426       709     

 Conservative Growth

      37,496       1,940     

 Emerging Markets

      4,183       6     

 Growth & Income *

      21,952       24     

* The Growth & Income Fund commenced operations on October 1, 2013.

 

121

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

Note 6 | Control Ownership

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a Fund creates the presumption of control of the Fund under Section 2(a) 9 of the Investment Company Act of 1940. At September 30, 2014, there were no shareholders with ownership, either directly or indirectly, of more than 25% of the voting securities of a Fund.

Certain Timothy Plan Funds own shares of other Timothy Plan Funds. U.S. Bank, N.A., custodian of the Timothy Plan Funds, holds these shares in omnibus accounts, some of which are controlled by National Financial Services, Inc. The following shows the percentage of each Timothy Plan Fund that is held by U.S. Bank, N.A., as custodian of the Timothy Plan Funds. These accounts can be considered affiliated to the Timothy Plan.

 

   
     % of Fund Owned by Other Timothy   

                

 Fund - Class A    Plan Funds     

 Aggressive Growth

    27.91%   

 International

    35.51%   

 Large/Mid Cap Growth

    28.40%   

 Small Cap Value

    11.55%   

 Large/Mid Cap Value

    10.69%   

 Fixed Income

    34.98%   

 High Yield Bond

    40.42%   

 Israel Common Values

    46.46%   

 Defensive Strategies

    29.78%   

 Emerging Markets

    60.59%   

 Growth & Income

    60.24%   

Note 7 | Distributions to Shareholders

The tax character of distributions paid during the fiscal year ended September 30, 2014 and the fiscal year ended September 30, 2013 were as follows:

 

                                                                                                                                                          
  

 

 

     
     Aggressive Growth      International *      Large/Mid Cap Growth      Small Cap Value         
  

 

 

     

Year ended September 30, 2014

               

Ordinary Income

      $ -             $ 1,012,067         $ 2,876,614         $ 3,326,167        

Long-term Capital Gains

      1,247,804         -             2,470,222         4,215,693        

Return of Capital

      -             -             -             -            
  

 

 

     
     $ 1,247,804         $ 1,012,067         $ 5,346,836         $ 7,541,860        
  

 

 

     

Year ended September 30, 2013

               

Ordinary Income

      $ -             $ 340,389         $ 1,453,446         $ 88,849        

Long-term Capital Gains

      -             -             1,289,229         -            

Return of Capital

      -             -             -             -            
  

 

 

     
     $ -             $ 340,389         $ 2,742,675         $ 88,849        
  

 

 

     

 

122

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

                                                                                                                                                          
  

 

 

     
     Large/Mid Cap Value      Fixed Income      High Yield Bond      Israel Common Values*       
  

 

 

     

Year ended September 30, 2014

               

Ordinary Income

      $ 575,850         $ 1,715,115         $ 1,928,998         $ 683,503        

Long-term Capital Gains

      9,110,156         166,274         -             8,066        

Return of Capital

      -             -             -             -          
  

 

 

     
     $ 9,686,006         $ 1,881,389         $ 1,928,998         $ 691,569        
  

 

 

     

Year ended September 30, 2013

               

Ordinary Income

      $ 358,626         $ 958,092         $ 1,871,417         $ -          

Long-term Capital Gains

      -             -             -             -          

Return of Capital

      -             -             -             -          
  

 

 

     
     $ 358,626         $ 958,092         $ 1,871,417         $ -          
  

 

 

     
  

 

 

     
     Defensive Strategies      Strategic Growth      Conservative Growth      Emerging Markets*       
  

 

 

     

Year ended September 30, 2014

               

Ordinary Income

      $ 375,871         $ 35,399         $ 207,808         $ 363,300        

Long-term Capital Gains

      -             -             -             -          

Return of Capital

      -             -             -             -          
  

 

 

     
     $ 375,871         $ 35,399         $ 207,808         $ 363,300        
  

 

 

     

Year ended September 30, 2013

               

Ordinary Income

      $ 132,486         $ 190,631         $ 306,954         $ -          

Long-term Capital Gains

      -             -             -             -          

Return of Capital

      -             -             -             -          
  

 

 

     
     $ 132,486         $ 190,631         $ 306,954         $ -          
  

 

 

     

* The difference between ordinary distributions paid from book and ordinary distributions paid from tax relates to $186,200 and $109,637 of allowable foreign tax credits from fiscal years ended September 30, 2014 and September 30, 2013, respectively, for the International Fund and $56,302 and $28,397 for the Israel Common Values Fund and Emerging Markets Fund for the fiscal year ended September 30, 2014 which have been passed through to the Funds’ underlying shareholders.

 

123

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

As of September 30, 2014, the components of distributable earnings on a tax basis were as follows:

 

                                                                                                                                                          
  

 

 

     
     Aggressive Growth      International      Large/Mid Cap Growth      Small Cap Value       
  

 

 

     

Undistributed Ordinary Income

      $ 197,089         $ -             $ 1,104,440         $ 4,376,314        

Long-Term Capital Gains

      2,397,419           -               5,151,902           10,462,415        

Capital Loss Carry Forward

      -               (13,139,242)         -               -            

Post October and Other Losses

      -               (351,107)         -               -            

Unrealized Appreciation (Depreciation)

      2,473,283           6,540,463          8,569,800           5,428,534        
  

 

 

     
     $ 5,067,791         $ (6,949,886)       $ 14,826,142         $ 20,267,263        
  

 

 

     
  

 

 

     
     Large/Mid Cap Value         Fixed Income         High Yield Bond         Israel Common Values      
  

 

 

     

Undistributed Ordinary Income

      $ 1,373,623         $ 505,149        $ 63,801         $ -            

Long-Term Capital Gains

      13,456,989           160,551          -               -            

Capital Loss Carry Forward

      -               -               (776,982)          -            

Post October and Other Losses

      -               -               -               (170,357)       

Unrealized Appreciation (Depreciation)

      32,723,280           590,904          212,414           1,562,942        
  

 

 

     
     $ 47,553,892         $ 1,256,604        $ (500,767)        $ 1,392,585        
  

 

 

     
  

 

 

     
     Defensive Strategies         Strategic Growth         Conservative Growth         Emerging Markets      
  

 

 

     

Undistributed Ordinary Income

      $ 394,856         $ 534,610        $ 448,836         $ 135,308        

Long-Term Capital Gains

      72,087           -               1,521,658           535,959        

Capital Loss Carry Forward

      -               -               -               -            

Post October and Other Losses

      -               (5,814,245)         -               -            

Unrealized Appreciation (Depreciation)

      353,635           4,629,423          2,900,693           (662,019)       
  

 

 

     
     $ 820,578         $ (650,212)       $ 4,871,187         $ 9,248        
  

 

 

     
  

 

 

              
     Growth & Income                            
  

 

 

              

Undistributed Ordinary Income

      $ -                     

Long-Term Capital Gains

      -                     

Capital Loss Carry Forward

      -                     

Post October and Other Losses

      (40,690)                

Unrealized Appreciation (Depreciation)

      1,195,825                 
  

 

 

              
     $ 1,155,135                 
  

 

 

              

The difference between book basis and tax basis unrealized appreciation (depreciation), undistributed net investment income (loss) and accumulated net realized gain (loss) from investments are primarily attributable to the tax deferral of losses on wash sales, mark-to-market on passive foreign investment companies, and adjustments for grantor trusts, partnerships and C Corporation return of capital distributions.

 

124

Notes to Financial Statements

September 30, 2014

Timothy Plan Family of Funds

 

 

Note 8 | Capital Loss Carryforwards, Post October and Other Losses

At September 30, 2014, the following capital loss carryforwards are available to offset future capital gains.

 

             Capital Loss Carry Forward              Year    CLCF       
Fund    Short-Term      Long-Term      Expiring    Utilized       

International Fund

    $     2,868,555       $             -           2016    $     2,412,363          
     8,833,573         -           2017      -              
     592,985         -           2018      -              
     844,129         -           2019      -              

 

     

High Yield Bond Fund

      776,982         -           2017      594,758          

 

     

Strategic Growth Fund

      1,855,585         -           2017      1,490,367          
     125,171         -           2018      
     3,833,489         -           2019      

 

     

To the extent these loss carryforwards are used to offset future capital gains, it is probable that the amount, which is offset, will not be distributed to shareholders.

Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Growth & Income Fund incurred and elected to defer such late year losses of $22,909.

Late year losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The following Funds incurred and elected to defer such late year losses as follows:

 

                 

Fund

         Post October Losses       

International Fund

        $             351,107      

Israel Common Values Fund

          170,357      

Growth & Income Fund

          17,781      

Note 9 | SUBSEQUENT EVENTS

Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has concluded that there is no impact requiring adjustment or disclosure in the financial statements.

 

125

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of

The Timothy Plan

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of The Timothy Plan, comprising Timothy Plan Aggressive Growth Fund, Timothy Plan International Fund, Timothy Plan Large/Mid Cap Growth Fund, Timothy Plan Small Cap Value Fund, Timothy Plan Large/Mid Cap Value Fund, Timothy Plan Fixed Income Fund, Timothy Plan High Yield Bond Fund, Timothy Plan Israel Common Values Fund, Timothy Plan Defensive Strategies Fund, Timothy Plan Strategic Growth Fund, Timothy Plan Conservative Growth Fund, Timothy Plan Emerging Markets Fund and Timothy Plan Growth & Income Fund (the “Funds”), as of September 30, 2014, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the years or periods then ended, and the financial highlights for each of the years or periods indicated. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2014, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers or counterparties were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Timothy Plan Aggressive Growth Fund, Timothy Plan International Fund, Timothy Plan Large/Mid Cap Growth Fund, Timothy Plan Small Cap Value Fund, Timothy Plan Large/Mid Cap Value Fund, Timothy Plan Fixed Income Fund, Timothy Plan High Yield Bond Fund, Timothy Plan Israel Common Values Fund, Timothy Plan Defensive Strategies Fund, Timothy Plan

 

126

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (cont.)

Strategic Growth Fund, Timothy Plan Conservative Growth Fund, Timothy Plan Emerging Markets Fund and Timothy Plan Growth & Income Fund as of September 30, 2014, the results of their operations for the year or period then ended, the changes in their net assets and the financial highlights for each of the years or periods indicated in conformity with accounting principles generally accepted in the United States of America.

COHEN FUND AUDIT SERVICES, LTD.

Cleveland, Ohio

December 1, 2014

 

127

Expense Examples – (Unaudited)

September 30, 2014

 

 

 

As a shareholder of a Fund, you incur two types of costs: direct costs, such as wire fees and low balance fees; and indirect costs, including management fees, and other Fund operating expenses. This example is intended to help you understand your indirect costs, also referred to as “ongoing costs”, (in dollars) of investing in each Fund, and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period of April 1, 2014, through September 30, 2014.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The second line of the tables provides information about hypothetical account values and hypothetical expenses based on each 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 ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any direct costs, such as wire fees or low balance fees. Therefore, the second line 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 direct costs were included, your costs would be higher.

 

AGGRESSIVE GROWTH FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $   986.00       $  8.31

  Hypothetical - Class A **

    $1,000.00       $1,016.70       $  8.44

  Actual - Class C *

    $1,000.00       $   981.90       $12.01

  Hypothetical - Class C **

    $1,000.00       $1,012.95       $12.20

  Actual - Class I *

    $1,000.00       $   986.10       $  7.05

  Hypothetical - Class I **

    $1,000.00       $1,012.95       $12.20

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.67% for Class A, 2.42% for Class C and 1.42% for Class I, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Aggressive Growth Fund’s ending account value on the first line of each share class in the table is based on its actual total return of (1.40)% for Class A,(1.81)% for Class C and (1.39)% for Class I for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

128

Expense Examples – (Unaudited)(Continued)

September 30, 2014

 

 

 

INTERNATIONAL FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $   985.60       $   8.09

  Hypothetical - Class A **

    $1,000.00       $1,016.92       $   8.21

  Actual - Class C *

    $1,000.00       $   980.80       $11.78

  Hypothetical - Class C **

    $1,000.00       $1,013.17       $11.97

  Actual - Class I *

    $1,000.00       $   985.60       $   6.83

  Hypothetical - Class I **

    $1,000.00       $1,012.95       $12.20

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.62% for Class A, 2.37% for Class C and 1.37% for Class I, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The International Fund’s ending account value on the first line of each share class in the table is based on its actual total return of (1.44)% for Class A, (1.92)% for Class C, and (1.44)% for Class I for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

LARGE/MID CAP GROWTH FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $1,028.50       $  7.76

  Hypothetical - Class A **

    $1,000.00       $1,017.41       $  7.72

  Actual - Class C *

    $1,000.00       $1,024.30       $11.56

  Hypothetical - Class C **

    $1,000.00       $1,013.65       $11.50

  Actual - Class I *

    $1,000.00       $1,029.60       $  6.50

  Hypothetical - Class I **

    $1,000.00       $1,013.65       $  6.45

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.53% for Class A, 2.28% for Class C and 1.28% for Class I, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Large/Mid Cap Growth Fund’s ending account value on the first line of each share class in the table is based on its actual total return of 2.85% for Class A, 2.43% for Class C, and 2.96% for Class I for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

SMALL CAP VALUE FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $   961.60       $  7.43

  Hypothetical - Class A **

    $1,000.00       $1,017.50       $  7.64

  Actual - Class C *

    $1,000.00       $   958.00       $11.10

  Hypothetical - Class C **

    $1,000.00       $1,013.74       $11.41

  Actual - Class I *

    $1,000.00       $   963.10       $  6.19

  Hypothetical - Class I **

    $1,000.00       $1,013.74       $11.41

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.51% for Class A, 2.26% for Class C, and 1.26% for Class I which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Small Cap Value Fund’s ending account value on the first line of each share class in the table is based on its actual total return of (3.84)% for Class A, (4.20)% for Class C and (3.69)% for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

129

Expense Examples – (Unaudited)(Continued)

September 30, 2014

 

 

 

LARGE/MID CAP VALUE FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $1,027.80       $  7.45

  Hypothetical - Class A **

    $1,000.00       $1,017.72       $  7.41

  Actual - Class C *

    $1,000.00       $1,023.80       $11.24

  Hypothetical - Class C **

    $1,000.00       $1,013.97       $11.18

  Actual - Class I *

    $1,000.00       $1,029.40       $  6.18

  Hypothetical - Class I **

    $1,000.00       $1,013.97       $11.18

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.47% for Class A, 2.21% for Class C, and 1.21% for Class I which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Large/Mid Cap Value Fund’s ending account value on the first line of each share class in the table is based on its actual total return of 2.78% for Class A, 2.38% for Class C, and 2.94% for Class I for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

FIXED INCOME FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $1,017.10       $5.35

  Hypothetical - Class A **

    $1,000.00       $1,019.76       $5.36

  Actual - Class C *

    $1,000.00       $1,013.90       $9.12

  Hypothetical - Class C **

    $1,000.00       $1,016.01       $9.13

  Actual - Class I *

    $1,000.00       $1,019.70       $4.08

  Hypothetical - Class I **

    $1,000.00       $1,021.03       $9.15

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.06% for Class A, 1.81% for Class C, and 0.81% for Class I which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Fixed Income Fund’s ending account value on the first line of each share class in the table is based on its actual total return of 1.71% for Class A, 1.39% for Class C, and 1.97% for Class I for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

HIGH YIELD BOND FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $1,002.00       $6.04

  Hypothetical - Class A **

    $1,000.00       $1,019.04       $6.09

  Actual - Class C *

    $1,000.00       $   997.20       $9.77

  Hypothetical - Class C **

    $1,000.00       $1,015.28       $9.86

  Actual - Class I *

    $1,000.00       $1,003.20       $4.78

  Hypothetical - Class I **

    $1,000.00       $1,015.28       $9.86

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.20% for Class A, 1.95% for Class C, and 0.95% for Class I which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The High Yield Bond Fund’s ending account value on the first line of each share class in the table is based on its actual total return of 0.20% for Class A, (0.28)% for Class C, and 0.32% for Class I for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

130

Expense Examples – (Unaudited)(Continued)

September 30, 2014

 

 

 

DEFENSIVE STRATEGIES FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $   998.20       $5.97

  Hypothetical - Class A **

    $1,000.00       $1,019.09       $6.04

  Actual - Class C *

    $1,000.00       $   994.60       $9.70

  Hypothetical - Class C **

    $1,000.00       $1,015.34       $9.80

  Actual - Class I *

    $1,000.00       $   999.10       $4.71

  Hypothetical - Class I **

    $1,000.00       $1,020.35       $4.76

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.19% for Class A, 1.94% for Class C and 0.94% for Class I, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Defensive Strategies Fund’s ending account value on the first line of each share class in the table is based on its actual total return of (0.18)% for Class A, (0.54)% for Class C and (0.09)% for Class I for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

STRATEGIC GROWTH FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $   995.50       $5.00

  Hypothetical - Class A **

    $1,000.00       $1,020.06       $5.06

  Actual - Class C *

    $1,000.00       $   991.50       $8.72

  Hypothetical - Class C **

    $1,000.00       $1,016.31       $8.83

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.00% for Class A and 1.75% for Class C, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Strategic Growth Fund’s ending account value on the first line of each share class in the table is based on its actual total return of (0.45)% for Class A and (0.85)% for Class C for the six-month period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

CONSERVATIVE GROWTH FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $   998.20       $4.95

  Hypothetical - Class A **

    $1,000.00       $1,020.11       $5.01

  Actual - Class C *

    $1,000.00       $   994.20       $8.68

  Hypothetical - Class C **

    $1,000.00       $1,016.37       $8.77

 

*

Expenses are equal to the Fund’s annualized expense ratio of 0.99% for Class A and 1.74% for Class C, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Conservative Growth Fund’s ending account value on the first line of each share class in the table is based on its actual total return of (0.18)% for Class A and (0.58)% for Class C for the six-month period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

131

Expense Examples – (Unaudited)(Continued)

September 30, 2014

 

 

 

ISRAEL COMMON VALUES FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $   920.00       $10.12

  Hypothetical - Class A **

    $1,000.00       $1,014.53       $10.62

  Actual - Class C *

    $1,000.00       $   915.70       $13.64

  Hypothetical - Class C **

    $1,000.00       $1,010.83       $14.32

  Actual - Class I *

    $1,000.00       $   920.60       $  8.86

  Hypothetical - Class I **

    $1,000.00       $1,010.83       $14.32

 

*

Expenses are equal to the Fund’s annualized expense ratio of 2.10% for Class A, 2.84% for Class C and 1.84% for Class I, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Israel Common Values Fund’s ending account value on the first line of each share class in the table is based on its actual total return of (8.00)% for Class A, (8.43)% for Class C and (7.94)% for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

EMERGING MARKETS FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $1,014.90       $12.26

  Hypothetical - Class A **

    $1,000.00       $1,012.89       $12.25

  Actual - Class C *

    $1,000.00       $1,010.00       $16.03

  Hypothetical - Class C **

    $1,000.00       $1,009.12       $16.02

  Actual - Class I *

    $1,000.00       $1,015.90       $11.02

  Hypothetical - Class I **

    $1,000.00       $1,014.13       $11.01

 

*

Expenses are equal to the Fund’s annualized expense ratio of 2.43% for Class A, 3.18% for Class C and 2.18% for Class I, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Emerging Markets Fund’s ending account value on the first line of each share class in the table is based on its actual total return of 1.49% for Class A, 1.00% for Class C and 1.59% for Class I for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

GROWTH & INCOME FUND                         
     Beginning Account             Ending Account             Expenses Paid    
     Value             Value             During Period    
                        

 

4/1/2014 through

    

4/1/2014

 

        

9/30/2014

 

        

9/30/2014

 

  Actual - Class A *

    $1,000.00       $   993.40       $4.75

  Hypothetical - Class A **

    $1,000.00       $1,004.21       $4.02

  Actual - Class C *

    $1,000.00       $   989.60       $6.73

  Hypothetical - Class C **

    $1,000.00       $1,003.02       $5.20

  Actual - Class I ***

    $1,000.00       $1,057.20       $3.67

  Hypothetical - Class I **

    $1,000.00       $1,004.66       $3.57

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.50% for Class A, 2.25% for Class C and 1.25% for Class I , which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the partial year period). The Emerging Markets Fund’s ending account value on the first line of each share class in the table is based on its actual total return of 0.00%% for Class A, (0.46)% for Class C and 0.09% for Class I, for the period of April 1, 2014, to September 30, 2014.

**

Assumes a 5% return before expenses.

 

132

SUPPLEMENTAL INFORMATION – (Unaudited)

September 30, 2014

 

 

 

PROXY VOTING

At a Special Meeting of Shareholders on Friday, December 6, 2013, Trust shareholders of record as of the close of business on September 30, 2013 voted to approve the following proposal:

Proposal 1: Approval of a new investment sub-advisory agreement for the Timothy Plan Defensive Strategies Fund

 

FOR          AGAINST          ABSTAIN     
2,671,593       12,337       36,746   

At a Special Meeting of Shareholders on Tuesday, May 27, 2014, Trust shareholders of record as of the close of business on April 11, 2014 voted to approve the following proposal:

Proposal 1: Approval of a new investment sub-advisory agreement for the Timothy Plan Aggressive Growth Fund

 

FOR          AGAINST          ABSTAIN     
1,152,968       31,358       79,424   

Proposal 2: Approval of a new investment sub-advisory agreement for the Timothy Plan Large/Mid Cap Growth Fund

 

FOR          AGAINST          ABSTAIN     
3,568,185       3,261       110,186   

 

133

Officers and Trustees of the Trust

As of September 30, 2014 (Unaudited)

Timothy Plan Family of Funds

 

 

Name, Age and Address

  

Position(s)

Held With Trust

  

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

Arthur D. Ally*

1055 Maitland Center

Commons

Maitland, FL

  

Chairman, President and

Treasurer

 

   Indefinite; Trustee and President since 1994   13
  Principal Occupation During Past 5 Years  

Other Directorships

Held by Trustee

 

Born: 1942

  

President and controlling shareholder of Covenant Funds, Inc. (“CFI”), a holding company. President and general partner of Timothy Partners, Ltd. (“TPL”), the investment advisor and principal underwriter to each Fund. CFI is also the managing general partner of TPL.

 

   None

 

Name, Age and Address

  

Position(s)

Held With Trust

  

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

Kenneth Blackwell

1055 Maitland Center

Commons

Maitland, FL

  

Trustee

 

  

Indefinite; Trustee since 2011

 

  

13

 

  Principal Occupation During Past 5 Years  

Other Directorships

Held by Trustee

 

Born: 1948

  

Secretary of State for the State of Ohio. Currently serving as an independent consultant or Fellow with the Family Research Council and the American Civil Rights Union, and is a Visiting Professor at Liberty University, Lynchburg, VA.

 

   None

 

Name, Age and Address

  

Position(s)

Held With Trust

  

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

Joseph E. Boatwright**

1055 Maitland Center

Commons

Maitland, FL

  

Trustee, Secretary

 

  

Indefinite; Trustee and Secretary since 1995

 

  

13

 

  Principal Occupation During Past 5 Years  

Other Directorships

Held by Trustee

 

Born: 1930

 

  

Retired Minister. Currently serves as a consultant to the Greater Orlando Baptist Association. Served as Senior Pastor to Aloma Baptist Church from 1970-1996.

 

   None

* Mr. Ally is an “interested” Trustee, as that term is defined in the 1940 Act, because of his positions with and financial interests in CFI and TPL.

** Messrs. Boatwright and Staver are “interested” Trustees, as that term is defined in the 1940 Act, because each has a limited partnership intereset in TPL.

 

134

Officers and Trustees of the Trust (Continued)

As of September 30, 2014 (Unaudited)

Timothy Plan Family of Funds

 

 

Name, Age and Address

  

Position(s)

Held With Trust

  

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

Richard W. Copeland

1055 Maitland Center

Commons

Maitland, FL

  

Trustee

 

  

Indefinite; Trustee since 2005

  

13

 

 

Principal Occupation During Past 5 Years

  

Other Directorships

Held by Trustee

 

Born: 1947

  

Principal of Copeland & Covert, Attorneys at Law; specializing in tax and estate planning. B.A. from Mississippi College, JD from University of Florida and LLM Taxation from University of Miami. Associate Professor Stetson University for past 35 years.

 

   None

 

Name, Age and Address

   

Position(s)

Held With Trust

   

Term of Office

and Length of Time Served

   

Number of Portfolios

in Fund Complex

Overseen by Trustee

Deborah Honeycutt

1055 Maitland Center

Commons

Maitland, FL

   

Trustee

 

   

Indefinite; Trustee since 2010

 

   

13

 

  

Principal Occupation During Past 5 Years

   

Other Directorships

Held by Trustee

 

Born: 1947

   

Dr. Honeycutt is a licensed physician currently serving as Medical Director of Clayton State University Health Services in Morrow, GA, CEO of Minority Health Services in Atlanta, and as a volunteer at Good Shepherd Clinic. Dr. Honeycutt received her B.A. and M.D. at the University of Illinois.

 

    None

 

Name, Age and Address

   

Position(s)

Held With Trust

   

Term of Office

and Length of Time Served

   

Number of Portfolios

in Fund Complex

Overseen by Trustee

Bill Johnson

1055 Maitland Center

Commons

Maitland, FL

   

Trustee

 

   

Indefinite; Trustee since 2005

 

   

13

 

  

Principal Occupation During Past 5 Years

   

Other Directorships

Held by Trustee

 

Born: 1946

   

President (and Founder) of American Decency Association, Freemont, MI since 1999. Previously served as Michigan State Director for American Family Association (1987-1999). Previously a public school teacher for 18 years. B.S. from Michigan State University and a Masters of Religious Education from Grand Rapids Baptist Seminary.

 

    None

 

135

Officers and Trustees of the Trust (Continued)

As of September 30, 2014 (Unaudited)

Timothy Plan Family of Funds

 

 

Name, Age and Address  

Position(s)

Held With Trust

   

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

John C. Mulder

1055 Maitland Center

Commons

Maitland, FL

  

Trustee

 

   

Indefinite; Trustee since 2005

 

  

13

 

  Principal Occupation During Past 5 Years  

Other Directorships

Held by Trustee

Born: 1950  

President of WaterStone (formerly the Christian Community Foundation and National Foundation) since 2001. Prior: 22 years of executive experience for a group of banks and a trust company. B.A. in Economics from Wheaton College and MBA from University of Chicago.

 

   None

 

Name, Age and Address  

Position(s)

Held With Trust

   

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

Charles E. Nelson

1055 Maitland Center

Commons

Maitland, FL

  

Trustee

 

   

Indefinite; Trustee since 2000

 

  

13

 

  Principal Occupation During Past 5 Years  

Other Directorships

Held by Trustee

 

Born: 1934

  

Certified Public Accountant, semi-retired. Former non-profit industry accounting officer. Former financial executive with commercial bank. Former partner national accounting firm.

 

 

   None

 

Name, Age and Address  

Position(s)

Held With Trust

   

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

Scott Preissler, Ph.D.

1055 Maitland Center

Commons

Maitland, FL

  

Trustee

 

   

Indefinite; Trustee since 2004

 

  

13

 

  Principal Occupation During Past 5 Years  

Other Directorships

Held by Trustee

 

Born: 1960

  

Chairman of Stewardship Studies at Southwestern Baptist Theological Seminary, Ft. Worth, TX. Also serves as Founder and Chairman of the International Center for Biblical Stewardship. Previously, President and CEO of Christian Stewardship Association where he was affiliated for 14 years.

 

   None

 

136

Officers and Trustees of the Trust (Continued)

As of September 30, 2014 (Unaudited)

Timothy Plan Family of Funds

 

 

Name, Age and Address  

Position(s)

Held With Trust

   

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

Alan M. Ross

1055 Maitland Center

Commons

Maitland, FL

 

Born: 1951

  

Trustee, Vice Chairman

 

   

Indefinite; Trustee since 2004

 

  

13

 

  Principal Occupation During Past 5 Years       

Other Directorships

Held by Trustee

 

Founder and CEO of Corporate Development Institute which he founded in 2000. Previously he served as President and CEO of Fellowship of Companies for Christ and has authored three books: Beyond World Class, Unconditional Excellence, Breaking Through to Prosperity.

 

   None

 

Name, Age and Address  

Position(s)

Held With Trust

   

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

Mathew D. Staver**

1055 Maitland Center

Commons

Maitland, FL

 

Born: 1956

  

Trustee

 

   

Indefinite; Trustee since 2000

 

  

13

 

  Principal Occupation During Past 5 Years  

Other Directorships

Held by Trustee

 

Attorney specializing in free speech, appellate practice and religious liberty constitutional law. Founder of Liberty Counsel, a religious civil liberties education and legal defense organization. Host of two radio programs devoted to religious freedom issues. Editor of a monthly newsletter devoted to religious liberty topics. Mr. Staver has argued before the United States Supreme Court and has published numerous legal articles.

 

   None

 

Name, Age and Address  

Position(s)

Held With Trust

   

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

Patrice Tsague

1055 Maitland Center

Commons

Maitland, FL

 

Born: 1973

  

Trustee

 

   

Indefinite; Trustee since 2011

 

  

13

 

  Principal Occupation During Past 5 Years  

Other Directorships

Held by Trustee

 

President and Chief Servant Officer of the Nehemiah Project International Ministries Inc. since 1999.

 

   None

 

137

Officers and Trustees of the Trust (Continued)

As of September 30, 2011 (Unaudited)

Timothy Plan Family of Funds

 

 

OFFICERS WHO ARE NOT TRUSTEES

Name, Age and Address  

Position(s)

Held With Trust

   

Term of Office

and Length of Time Served

  

Number of Portfolios

in Fund Complex

Overseen by Trustee

David D. Jones, Esq.

422 Felming Street, Sute 7

Key West, FL 33040

  

Chief Compliance Officer

 

   

Indefinite: since 2004

 

  

13

 

  Principal Occupation During Past 5 Years  

Other Directorships

Held by Trustee

Born: 1957   Managing Member of Drake Compliance, LLC, a compliance consulting firm, Since 2004. B.A. From Univiersity of Texas at Austin in Economics- 1983. Juris Doctorate, with honors, from Saint Mary’s University School of Law in San Antonio, TX- 1994.   None

The Fund’s Statement of Additional Information includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-800-846-7526.

 

138

Privacy Notice

 

 

  FACTS        

 

   WHAT DOES THE TIMOTHY PLAN 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 information 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 information we collect and share depend on the product or service you have with us. This information can include:

   

Ÿ    Social Security Number

   

Ÿ    Assets

   

Ÿ    Retirement Assets

   

Ÿ    Transaction History

   

Ÿ    Checking Account History

   

Ÿ    Purchase History

   

Ÿ    Account Balances

   

Ÿ    Account Transactions

   

Ÿ    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 Timothy Plan chooses to share; and whether you can limit this sharing.

 

Reasons we can share your personal information.      Does The Timothy Plan 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.

    Yes    No

For our affiliates’ everyday business purposes-

information about your creditworthiness

    No    We don’t share
For non-affiliates to market to you    No    We don’t share
     

Questions?

   

Call 800-662-0201

 

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  Page 2             

 

   Who we are

  

Who is providing this Notice?

  

Timothy Plan Family of Mutual Funds

Timothy Partners, Ltd.

 

   What we do

 

  

How does The Timothy Plan protect your

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 or your nonpublic personal information.

How does The Timothy Plan collect your          

personal information?

   We collect your personal information, for example, when you
  Ÿ      Open an account
  Ÿ      Provide account information
    Ÿ      Give us your contact information
    Ÿ      Make deposits or withdrawals from your account
    Ÿ      Make a wire transfer
    Ÿ      Tell us where to send the money
    Ÿ      Tell us who receives the money
    Ÿ      Show your government-issued ID
    Ÿ      Show your drivers’ 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:
   

Ÿ      Sharing for affiliates’ everyday business purposes-information about

        your creditworthiness.

    Ÿ      Affiliates from using your information to market to you.
    Ÿ      Sharing for non-affiliates 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 non-financial companies.

Timothy Partners, Ltd. is an affiliate of The Timothy Plan

Non-affiliates  

Companies not related by common ownership or control. They can be financial and non-financial companies.

Ÿ      The Timothy Plan does not share with non-affiliates so they can market to you.

Joint marketing  

A formal agreement between non-affiliated financial companies that together market financial products to you.

Ÿ      The Timothy Plan does not jointly market.

Customer Identification Program

The Board of Trustees of the Trust has approved procedures designed to prevent and detect attempts to launder money as required under the USA PATRIOT Act. The day-to-day responsibility for monitoring and reporting any such activities has been delegated to the transfer agent, subject to the oversight and supervision of the Board.

 

140

Disclosures

HOW TO OBTAIN PROXY VOTING INFORMATION

Information regarding how the Funds voted proxies relating to Fund securities during the period ended June 30 as well as a description of the policies and procedures that the Funds use to determine how to vote proxies is available without charge, upon request, by calling 1-800-732-0330 or by referring to the Security and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

HOW TO OBTAIN 1ST AND 3RD FISCAL QUARTER PORTFOLIO HOLDINGS

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. Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (1-800-SEC-0330). The information on Form N-Q is available without charge, upon request, by calling 1-800-732-0330.

 

141

BOARD OF TRUSTEES

Arthur D. Ally

Kenneth Blackwell

Joseph E. Boatwright

Rick Copeland

Deborah Honeycutt

Bill Johnson

John C. Mulder

Charles E. Nelson

Scott Preissler

Alan Ross

Mathew D. Staver

Patrice Tsague

OFFICERS

Arthur D. Ally, President

Joseph E. Boatwright, Secretary

INVESTMENT ADVISOR

Timothy Partners, Ltd.

1055 Maitland Center Commons

Maitland, FL 32751

 

DISTRIBUTOR

Timothy Partners, Ltd.

1055 Maitland Center Commons

Maitland, FL 32751

 

TRANSFER AGENT

Gemini Fund Services, LLC

17605 Wright St., Suite 2

Omaha, NE 68130

 

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Cohen Fund Audit Services, Ltd.

1350 Euclid Ave., Suite 800

Cleveland, OH 44115

 

LEGAL COUNSEL

David Jones & Assoc., P.C.

422 Fleming St.

Key West, FL 33040

    LOGO
  

HEADQUARTERS

 

   The Timothy Plan
   1055 Maitland Center Commons
  

Maitland, Florida 32751

 

For additional information or a prospectus, please call: 1-800-846-7526

Visit the Timothy Plan web site on the internet at: www.timothyplan.com

   

(800) 846-7526

 

   www.timothyplan.com
   invest@timothyplan.com

This report is submitted for the general information of the shareholders of the

Funds. It is not authorized for distribution to prospective investors in the

Funds unless preceded or accompanied by an effective Prospectus which

includes details regarding the Funds’ objectives, policies, expenses and other

information. Distributed by Timothy Partners, Ltd.

   
  

SHAREHOLDER SERVICES

 

   Gemini Fund Services, LLC
   17605 Wright St., Suite 2
   Omaha, NE 68130
  

 

(800) 662-0201

Item 2. Code of Ethics.

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

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

 

  (1)

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

  (2)

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

  (3)

Compliance with applicable governmental laws, rules, and regulations;

  (4)

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

  (5)

Accountability for adherence to the code.

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

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

(e)        Posting: We do not intend to post the Code of Ethics for the Officers or any amendments or waivers on a website.

(f)        Availability: The Code of Ethics for the Officers can be obtained, free of charge by calling the toll free number for the appropriate Fund.

Item 3. Audit Committee Financial Expert.

(a)        The registrant has an Audit committee currently composed of three independent Trustees, Mr. Wesley Pennington, Mr. John Mulder and Mr. Charles Nelson. The registrant’s board of trustees has determined that Mr. Charles Nelson is qualified to serve as an Audit Committee Financial Expert, and has designated him as such.

Item 4. Principal Accountant Fees and Services.

 

(a)

Audit Fees

 

The Timothy Plan  

FY 2014

    $  166,400   

FY 2013

    $  142,700   

FY 2012

    $  142,700   

 

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(b) Audit-Related Fees

 

The Timothy Plan

       Registrant       Adviser

FY 2014

    $   0          $   0      

FY 2013

    $   0          $   0      

FY 2012

    $ 0          $   0      

Nature of the fees:

 

(c) Tax Fees

 

The Timothy Plan   

FY 2014

    $   0   

FY 2013

    $ 0   

FY 2012

    $ 0   

Nature of the        preparation of the 1120 RIC

fees:

 

(d) All Other Fees

Registrant

The Timothy Plan   

FY 2014

    $ 0   

FY 2013

    $ 0   

FY 2012

    $   0   

(e)         (1)         Audit Committee’s Pre-Approval Policies

The Audit Committee Charter requires the Audit Committee to be responsible for the selection, retention or termination of auditors and, in connection therewith, to (i) evaluate the proposed fees and other compensation, if any, to be paid to the auditors, (ii) evaluate the independence of the auditors, (iii) pre-approve all audit services and, when appropriate, any non-audit services provided by the independent auditors to the Trust, (iv) pre-approve, when appropriate, any non-audit services provided by the independent auditors to the Trust’s investment adviser, or any entity controlling, controlled by, or under common control with the investment adviser and that provides ongoing services to the Trust if the engagement relates directly to the operations and financial reporting of the Trust, and (v) receive the auditors’ specific representations as to their independence;

             (2)         Percentages of Services Approved by the Audit Committee

                  Registrant

            
 

Audit-Related Fees:

      0         % 
 

Tax Fees:

      0         % 
 

All Other Fees:

      0         % 

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

 

-3-

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

Registrant Adviser

FY 2014

    $   0          $ 0   

FY 2013

    $ 0          $ 0   

FY 2012

    $ 0          $ 0   

(h)            Not applicable. The auditor performed no services for the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant.

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

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

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

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

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

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

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

Item 11. Controls and Procedures.

(a)            Based on an evaluation of the registrant’s disclosure controls and procedures as of November 19, 2010, the disclosure controls and procedures are reasonably designed to ensure that the information required in filings on Forms N-CSR is recorded, processed, summarized, and reported on a timely basis.

(b)            There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

 

(a)(1)

        Code is filed herewith

 

(a)(2)

Certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 and required by Rule 30a-2 under the Investment Company Act of 1940 are filed herewith.

 

(a)(3)

    Not Applicable

 

(b)

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed herewith.

 

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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)    The Timothy Plan

 

By

  

/s/ Arthur D. Ally        

  
  Arthur D. Ally, President

Date

  

12/9/14

  

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

  

/s/ Arthur D. Ally        

  
  Arthur D. Ally, President

Date

  

12/9/14

  

 

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