N-CSRS 1 d765299dncsrs.htm TIMOTHY PLAN Timothy Plan

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                                                                         

Timothy Plan

 

(Exact name of registrant as specified in charter)

1055 Maitland Center Commons, Maitland, FL 32751

 

(Address of principal executive offices) (Zip code)

Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, OH 43219-8000

 

(Name and address of agent for service)

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

Date of fiscal year end: December 31

Date of reporting period: June 30, 2019

Item 1. Reports to Stockholders.

LOGO

SEMI ANNUAL REPORT

June 30, 2019

 

   Ticker
Symbol
TIMOTHY PLAN U.S. LARGE CAP CORE ETF    TPLC
TIMOTHY PLAN HIGH DIVIDEND STOCK ETF    TPHD

Listed and traded on: The New York Stock Exchange

Table of Contents

 

Schedule of Portfolio Investments

    1

Timothy Plan US Large Cap Core ETF

    1

Timothy Plan High Dividend Stock ETF

    9

Statements of Assets and Liabilities

    12

Statements of Operations

    13

Statements of Changes in Net Assets

    14

Financial Highlights

    15

Notes to Financial Statements

    16

Other Information

    25

Approval of Investment Advisory and Subadvisory Agreement

    27

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission (the “SEC”), paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website www.timothyplan.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically or to continue receiving paper copies of shareholder reports, which are available free of charge, by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by following the instructions included with paper Fund documents that have been mailed to you.

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan US Large Cap Core ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
             

Common Stocks (99.9%)

    

Communication Services (0.2%):

                

Zayo Group Holdings, Inc.

     3,619       119,101  
    $ 119,101  

Consumer Discretionary (9.9%):

                

Advance Auto Parts, Inc.

     987       152,136  

AutoZone, Inc.

     188       206,700  

Booking Holdings, Inc.

     94       176,222  

BorgWarner, Inc.

     3,760       157,845  

Bright Horizons Family Solutions, Inc.

     2,209       333,272  

Burlington Stores, Inc.

     987       167,938  

CarMax, Inc.

     2,491       216,295  

Columbia Sportswear Co.

     1,645       164,763  

Dollar General Corp.

     1,786       241,396  

Dr Horton, Inc.

     3,384       145,952  

Five Below

     940       112,819  

Foot Locker, Inc.

     2,350       98,512  

Garmin Ltd.

     2,209       176,278  

Genuine Parts Co.

     2,820       292,095  

Grand Canyon Education, Inc.

     1,363       159,498  

Hanesbrands, Inc.

     6,157       106,024  

Kohl’s Corp.

     2,162       102,803  

Lear Corp.

     1,081       150,551  

Leggett & Platt, Inc.

     4,465       171,322  

Lennar Corp.

     3,149       152,601  

LKQ Corp.

     6,721       178,846  

Mohawk Industries, Inc.

     940       138,622  

NVR, Inc.

     47       158,402  

Ollie’s Bargain Outlet Holdings, Inc.

     1,598       139,202  

O’Reilly Automotive, Inc.

     564       208,296  

Pool Corp.

     1,504       287,264  

Pultegroup, Inc.

     5,687       179,822  

Qurate Retail, Inc.

     9,212       114,137  

Ross Stores, Inc.

     2,162       214,297  

Service Corp. International

     5,546       259,442  

Tapestry, Inc.

     4,465       141,674  

Tractor Supply Co.

     1,880       204,544  

Yum China Holdings, Inc.

     3,102       143,312  
    $     5,852,882  

Consumer Staples (2.4%):

                

Costco Wholesale Corp.

     940       248,404  

Herbalife Nutrition Ltd.

     4,183       178,865  

Ingredion, Inc.

     2,209       182,220  

 

See notes to financial statements.

 

1

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan US Large Cap Core ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
                

Lamb Weston Holding, Inc.

     3,055       193,565  

McCormick & Co., Inc.

     1,598       247,707  

The JM Smucker Co.

     1,739       200,315  

US Foods Holding Corp.

     4,606       164,711  
    $ 1,415,787  

Energy (4.4%):

                

Anadarko Petroleum Corp.

     2,350       165,816  

Cabot Oil & Gas Corp.

     6,016       138,127  

Cimarex Energy Co.

     1,927       114,329  

ConocoPhillips

     2,726       166,286  

Continental Resources, Inc.

     2,585       108,803  

Diamondback Energy, Inc.

     1,363       148,526  

EOG Resources, Inc.

     1,504       140,113  

Halliburton Co.

     5,076       115,428  

HollyFrontier Corp.

     2,867       132,685  

Marathon Oil Corp.

     7,191       102,184  

Marathon Petroleum Corp.

     2,726       152,329  

Occidental Petroleum Corp.

     3,055       153,605  

ONEOK, Inc.

     3,055       210,214  

Parsley Energy, Inc.

     6,392       121,512  

Phillips 66

     1,974       184,648  

Pioneer Natural Resources Co.

     940       144,628  

Schlumberger Ltd.

     4,136       164,365  

Valero Energy Corp.

     1,880       160,947  
    $     2,624,545  

Financials (13.0%):

                

Aflac, Inc.

     5,781       316,857  

Arch Capital Group Ltd.

     8,836       327,639  

Arthur J Gallagher & Co.

     4,042       354,039  

Assurant, Inc.

     2,726       289,992  

BOK Financial Corp.

     2,679       202,211  

Brown & Brown, Inc.

     10,528       352,688  

CBOE Global Markets, Inc.

     2,491       258,142  

Commerce Bancshares, Inc.

     4,653       277,597  

Credit Acceptance Corp.

     376       181,920  

Cullen/Frost Bankers, Inc.

     2,303       215,699  

E*TRADE Financial Corp.

     3,901       173,985  

East West BanCorp, Inc.

     3,854       180,252  

FactSet Research Systems, Inc.

     940       269,366  

Fidelity National Financial, Inc.

     5,781       232,974  

First American Financial Corp.

     4,089       219,579  

Franklin Resources, Inc.

     5,593       194,636  

Intercontinental Exchange, Inc.

     3,713       319,096  

 

See notes to financial statements.

 

2

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan US Large Cap Core ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
                

Invesco Ltd.

     8,413       172,130  

LPL Financial Holdings, Inc.

     2,444       199,357  

MarketAxess Holdings, Inc.

     846       271,922  

MSCI, Inc.

     893       213,239  

New York Community BanCorp, Inc.

     17,155       171,207  

People’s United Financial, Inc.

     14,805       248,428  

Popular, Inc.

     3,901       211,590  

Reinsurance Group of America, Inc.

     1,645       256,669  

Santander Consumer USA Holdings, Inc.

     9,212       220,720  

SEI Investments Co.

     3,854       216,209  

Signature Bank

     1,457       176,064  

SVB Financial Group

     564       126,669  

Synovus Financial Corp.

     5,170       180,950  

Torchmark Corp.

     3,055       273,300  

WR Berkley Corp.

     5,828       384,241  
    $     7,689,367  

Health Care (9.1%):

                

ABIOMED, Inc.

     376       97,944  

Agilent Technologies, Inc.

     2,585       193,022  

Align Technology, Inc.

     376       102,911  

Bruker Corp.

     4,324       215,984  

Centene Corp.

     3,337       174,992  

Cerner Corp.

     3,290       241,157  

Charles River Laboratories International, Inc.

     1,175       166,733  

Edwards Lifesciences Corp.

     799       147,607  

Encompass Health Corp.

     3,572       226,322  

Exelixis, Inc.

     4,465       95,417  

Henry Schein, Inc.

     3,431       239,827  

Hill-Rom Holdings, Inc.

     1,927       201,603  

IDEXX Laboratories, Inc.

     799       219,988  

Illumina, Inc.

     376       138,424  

Intuitive Surgical, Inc.

     282       147,923  

IQVIA Holdings, Inc.

     1,363       219,307  

Jazz Pharmaceuticals PLC

     1,175       167,508  

Masimo Corp.

     1,457       216,831  

Mettler-Toledo International

     282       236,879  

PerkinElmer, Inc.

     1,786       172,063  

PRA Health Sciences, Inc.

     1,551       153,782  

Regeneron Pharmaceuticals, Inc.

     423       132,399  

ResMed, Inc.

     1,598       195,004  

United Therapeutics Corp.

     1,551       121,071  

Varian Medical Systems, Inc.

     1,504       204,740  

Veeva Systems, Inc.

     940       152,383  

Vertex Pharamaceuticals, Inc.

     987       180,996  

 

See notes to financial statements.

 

3

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan US Large Cap Core ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
                

Waters Corp.

     799       171,977  

West Pharmaceutical Services, Inc.

     1,645       205,872  

Zoetis, Inc.

     2,209       250,699  
    $     5,391,365  

Industrials (23.0%):

                

Allegion PLC

     2,679       296,163  

Allison Transmission Holding, Inc.

     3,995       185,168  

AMERCO, Inc.

     705       266,878  

Ametek, Inc.

     2,632       239,091  

AO Smith Corp.

     3,713       175,105  

Arconic, Inc.

     6,110       157,760  

Carlisle Companies, Inc.

     1,692       237,574  

Caterpillar, Inc.

     1,081       147,329  

CH Robinson Worldwide, Inc.

     2,726       229,938  

Cintas Corp.

     1,034       245,358  

Copart, Inc.

     2,585       193,203  

Costar Group, Inc.

     376       208,327  

CSX Corp.

     2,867       221,820  

Deere & Co.

     1,128       186,921  

Donaldson Co., Inc.

     3,666       186,453  

Dover Corp.

     2,350       235,470  

Eaton Corp. PLC

     2,820       234,850  

Emerson Electric Co.

     3,102       206,965  

Equifax, Inc.

     1,551       209,757  

Expeditors International of Washington, Inc.

     2,867       217,491  

Fastenal Co.

     6,204       202,189  

Flowserve Corp.

     3,290       173,350  

Fortive Corp.

     2,679       218,392  

Fortune Brands Home & Security, Inc.

     3,478       198,698  

General Dynamics Corp.

     1,363       247,821  

Graco, Inc.

     4,371       219,337  

Harris Corp.

     1,034       195,560  

HEICO Corp.

     1,833       245,274  

Hexcel Corp.

     3,243       262,293  

Honeywell International, Inc.

     1,786       311,817  

Hubbell, Inc.

     1,504       196,122  

Huntington Ingalls Industries, Inc.

     893       200,693  

IAA, Inc.

     3,713       143,990  

IDEX Corp.

     1,410       242,718  

Illinois Tool Works, Inc.

     1,363       205,554  

J.B. Hunt Transport Services, Inc.

     1,974       180,443  

Johnson Controls International PLC

     6,251           258,229  

Kansas City Southern

     1,786       217,571  

KAR Auction Services, Inc.

     3,713       92,825  

 

See notes to financial statements.

 

4

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan US Large Cap Core ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
                

Knight-Swift Transportation Holdings, Inc.

     3,572       117,304  

Lennox International, Inc.

     893       245,575  

Lincoln Electric Holdings, Inc.

     2,350       193,452  

Masco Corp.

     4,559       178,895  

Middleby Corp.

     1,316       178,581  

Nordson Corp.

     1,410       199,247  

Norfolk Southern Corp.

     1,081       215,476  

Old Dominion Freight Line, Inc.

     1,128       168,365  

PACCAR, Inc.

     3,149       225,657  

Parker Hannifin Corp.

     1,081       183,781  

Rollins, Inc.

     5,734       205,679  

Roper Technologies, Inc.

     611       223,785  

Snap-on, Inc.

     1,222       202,412  

Spirit Aerosystems Holdings, Inc.

     2,350       191,220  

Teledyne Technologies, Inc.

     893       244,566  

Toro Co.

     3,619       242,112  

TransDigm Group, Inc.

     423       204,647  

Transunion

     2,773       203,843  

Union Pacific Corp.

     1,222       206,652  

United Rentals, Inc.

     940       124,672  

Verisk Analytics, Inc.

     1,974       289,112  

WABCO Holdings, Inc.

     1,269       168,269  

Wabtec Corp.

     1,927       138,282  

Waste Management, Inc.

     3,055       352,455  

Woodward, Inc.

     1,786       202,104  

XPO Logistics, Inc.

     1,504       86,946  

Xylem, Inc.

     2,397       200,485  
    $   13,688,071  

Information Technology (18.5%):

                

Advanced Micro Devices, Inc.

     2,538       77,079  

Alliance Data Systems Corp.

     893       125,136  

Amphenol Corp.

     2,303       220,950  

Analog Devices, Inc.

     1,598       180,366  

ANSYS, Inc.

     987       202,157  

Arrow Electronics, Inc.

     2,491       177,534  

Aspen Technology, Inc.

     1,410       175,235  

Black Knight, Inc.

     3,995       240,299  

Broadcom, Inc.

     423       121,765  

Broadridge Financial Solutions

     1,645       210,034  

Cadence Design Systems, Inc.

     2,632       186,372  

CDK Global, Inc.

     3,713       183,571  

CDW Corp.

     1,692       187,812  

Ciena Corp.

     4,042       166,247  

Citrix Systems, Inc.

     2,961       290,594  

 

See notes to financial statements.

 

5

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan US Large Cap Core ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
                

Cognex Corp.

     2,115       101,478  

Cognizant Technology Solutions Corp.

     2,914       184,718  

Cypress Semiconductor Corp.

     9,024       200,693  

Dolby Laboratories, Inc.

     3,478       224,678  

DXC Technology Co.

     2,256       124,418  

EPAM Systems, Inc.

     987       170,850  

Euronet Worldwide, Inc.

     1,081       181,867  

F5 Networks, Inc.

     1,128       164,271  

Fair Isaac Corp.

     658       206,625  

Fidelity National Information Services, Inc.

     2,303       282,532  

Fiserv, Inc.

     2,632       239,933  

Fleetcor Technologies, Inc.

     846       237,599  

FLIR Systems, Inc.

     3,525       190,703  

Fortinet, Inc.

     1,410       108,330  

Genpact Ltd.

     6,956       264,954  

Godaddy, Inc.

     1,880       131,882  

IPG Photonics Corp.

     564       86,997  

Jack Henry & Associates, Inc.

     1,786       239,181  

Juniper Networks, Inc.

     7,332       195,251  

KLA Corp.

     1,175       138,885  

Lam Research Corp.

     705       132,427  

Maxim Integrated Products, Inc.

     2,961       177,127  

Microchip Technology, Inc.

     1,457       126,322  

Micron Technology, Inc.

     2,679       103,383  

Monolithic Power Systems, Inc.

     987       134,015  

National Instruments Corp.

     3,572       149,988  

NetApp, Inc.

     1,880       115,996  

NVIDIA Corp.

     517       84,907  

On Semiconductor Corp.

     5,170       104,486  

Paychex, Inc.

     3,572       293,941  

Paycom Software, Inc.

     611       138,526  

PTC, Inc.

     1,598       143,436  

RealPage, Inc.

     2,397       141,063  

Sabre Corp.

     8,789       195,116  

Seagate Technology PLC

     2,773       130,664  

Skyworks Solutions, Inc.

     1,645       127,109  

Synopsys, Inc.

     1,692       217,743  

TE Connectivity Ltd.

     2,585       247,592  

Teradyne, Inc.

     3,243       155,372  

The Trade Desk, Inc.

     329       74,940  

Total System Services, Inc.

     2,256       289,377  

Trimble, Inc.

     3,901       175,974  

Tyler Technologies, Inc.

     940       203,059  

Universal Display Corp.

     517       97,227  

 

See notes to financial statements.

 

6

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan US Large Cap Core ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
                

VeriSign, Inc.

     893       186,780  

Western Union Co.

     15,275       303,821  

Wex, Inc.

     940       195,614  

Xilinx, Inc.

     940       110,845  

Zebra Technologies Corp.

     564       118,152  
    $   11,095,998  

Materials (9.7%):

                

Albemarle Corp.

     1,974       138,989  

AptarGroup, Inc.

     2,491       309,732  

Avery Dennison Corp.

     1,833       212,041  

Ball Corp.

     4,277       299,347  

Berry Global Group, Inc.

     3,666       192,795  

Celanese Corp.

     1,880       202,664  

CF Industries Holdings, Inc.

     3,196       149,285  

Chemours Co.

     3,243       77,832  

Crown Holdings, Inc.

     3,384       206,762  

Eastman Chemical Co.

     2,397       186,559  

Ecolab, Inc.

     1,692       334,069  

FMC Corp.

     2,491       206,628  

Freeport-McMoRan, Inc.

     8,366       97,129  

International Flavors & Fragrances, Inc.

     1,739       252,312  

International Paper Co.

     3,854       166,955  

LyondellBasell Industries N.V., Class A

     2,303       198,357  

Martin Marietta Materials, Inc.

     846       194,673  

Nucor Corp.

     3,619       199,407  

Packaging Corp. of America

     1,692       161,281  

PPG Industries, Inc.

     1,833       213,929  

Reliance Steel & Aluminum Co.

     2,632       249,040  

RPM International, Inc.

     3,854       235,518  

Sherwin-Williams Co.

     517       236,936  

Sonoco Products Co.

     4,606       300,957  

Steel Dynamics, Inc.

     5,076       153,295  

The Mosaic Co.

     5,781       144,698  

Vulcan Materials Co.

     1,222       167,793  

Westlake Chemical Corp.

     1,974       137,114  

Westrock Co.

     4,230       154,268  
    $     5,780,365  

Utilities (9.7%):

                

AES Corp.

     12,643       211,897  

Alliant Energy Corp.

     6,815       334,480  

American Electric Power Co., Inc.

     3,995       351,600  

American Water Works Co., Inc.

     2,961       343,476  

Atmos Energy Corp.

     3,008       317,525  

 

See notes to financial statements.

 

7

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan US Large Cap Core ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
                

CMS Energy Corp.

     5,922       342,943  

Consolidated Edison, Inc.

     3,572       313,193  

Dominion Energy, Inc.

     4,136       319,796  

DTE Energy Co.

     2,679       342,591  

Evergy, Inc.

     5,687       342,073  

Eversource Energy

     4,700       356,072  

NextEra Energy, Inc.

     1,739       356,252  

OGE Energy Corp.

     7,661       326,052  

Pinnacle West Capital Corp.

     3,290       309,556  

PPL Corp.

     8,507       263,802  

Public Service Enterprise Group, Inc.

     5,123       301,335  

UGI Corp.

     5,123       273,619  

WEC Energy Group

     4,230       352,654  
    $ 5,758,916  

Total Common Stocks (Cost $58,174,055)

     $ 59,416,397  

Total Investments (Cost $58,174,055) — 99.9%

     $ 59,416,397  

Other assets in excess of liabilities — 0.1%

           $ 73,657  

NET ASSETS - 100.00%

           $   59,490,054  

Percentages indicated are based on net assets as of June 30, 2019.

 

See notes to financial statements.

 

8

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan High Dividend Stock ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
             

Common Stocks (99.7%)

    

Consumer Discretionary (5.6%):

                

Foot Locker, Inc.

     6,251       262,042  

Garmin Ltd.

     5,781       461,324  

Genuine Parts Co.

     7,426       769,185  

Hanesbrands, Inc.

     16,403       282,460  

Kohl’s Corp.

     5,687       270,417  

Lear Corp.

     2,914       405,833  

Leggett & Platt, Inc.

     11,797       452,651  

Tapestry, Inc.

     11,797       374,318  
    $ 3,278,230  

Consumer Staples (1.7%):

                

Ingredion, Inc.

     5,781       476,875  

The JM Smucker Co.

     4,606       530,565  
    $ 1,007,440  

Energy (6.5%):

                

Anadarko Petroleum Corp.

     6,204       437,754  

Halliburton Co.

     13,489       306,740  

HollyFrontier Corp.

     7,520       348,026  

Marathon Petroleum Corp.

     7,238       404,459  

Occidental Petroleum Corp.

     8,084       406,464  

ONEOK, Inc.

     8,037       553,025  

Phillips 66

     5,264       492,395  

Schlumberger Ltd.

     10,951       435,193  

Valero Energy Corp.

     4,982       426,509  
    $     3,810,565  

Financials (17.3%):

                

Aflac, Inc.

     15,369       842,375  

Arthur J Gallagher & Co.

     10,716       938,614  

Assurant, Inc.

     7,191       764,979  

BOK Financial Corp.

     7,144       539,229  

Cullen/Frost Bankers, Inc.

     6,157       576,665  

East West BanCorp, Inc.

     10,105       472,611  

Fidelity National Financial, Inc.

     15,322       617,477  

First American Financial Corp.

     10,763       577,973  

Franklin Resources, Inc.

     14,899       518,485  

Invesco Ltd.

     22,372       457,731  

New York Community BanCorp, Inc.

     45,496       454,050  

People’s United Financial, Inc.

     39,292       659,319  

Popular, Inc.

     10,293       558,292  

Santander Consumer USA Holdings, Inc.

     24,487       586,709  

Synovus Financial Corp.

     13,818       483,630  

 

See notes to financial statements.

 

9

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan High Dividend Stock ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
                

WR Berkley Corp.

     15,463       1,019,475  
    $   10,067,614  

Health Care (1.0%):

                

Encompass Health Corp.

     9,353       592,606  

Industrials (18.3%):

                

Caterpillar, Inc.

     2,914       397,149  

CH Robinson Worldwide, Inc.

     7,238       610,525  

Deere & Co.

     2,961       490,667  

Dover Corp.

     6,157       616,932  

Eaton Corp. PLC

     7,473       622,351  

Emerson Electric Co.

     8,272       551,908  

Fastenal Co.

     16,356       533,042  

General Dynamics Corp.

     3,525       640,916  

Honeywell International, Inc.

     4,700       820,573  

Hubbell, Inc.

     3,995       520,948  

IAA, Inc.

     9,729       377,291  

Illinois Tool Works, Inc.

     3,666       552,869  

Johnson Controls International PLC

     16,638       687,316  

KAR Auction Services, Inc.

     9,729       243,225  

Lincoln Electric Holdings, Inc.

     6,204       510,713  

PACCAR, Inc.

     8,319       596,140  

Snap-on, Inc.

     3,243       537,171  

Union Pacific Corp.

     3,243       548,424  

Waste Management, Inc.

     8,037       927,228  
    $ 10,785,388  

Information Technology (11.7%):

                

Analog Devices, Inc.

     4,230       477,440  

Broadcom, Inc.

     1,175       338,236  

Cypress Semiconductor Corp.

     24,017       534,137  

Juniper Networks, Inc.

     19,458       518,167  

KLA Corp.

     3,102       366,656  

Lam Research Corp.

     1,833       344,311  

Maxim Integrated Products, Inc.

     7,802       466,716  

National Instruments Corp.

     9,400       394,706  

NetApp, Inc.

     4,935       304,490  

Paychex, Inc.

     9,400       773,526  

Sabre Corp.

     23,359       518,570  

Seagate Technology PLC

     7,332       345,483  

TE Connectivity Ltd.

     6,862       657,242  

Western Union Co.

     40,561       806,758  
    $     6,846,438  

 

See notes to financial statements.

 

10

    Schedule of Portfolio Investments
    June 30, 2019
Timothy Plan High Dividend Stock ETF   (Unaudited)
    

 

SECURITY DESCRIPTION   SHARES                   VALUE  
             

Materials (13.1%):

                

Avery Dennison Corp.

     4,888       565,444  

Celanese Corp.

     4,935       531,993  

CF Industries Holdings, Inc.

     8,460       395,167  

Chemours Co.

     8,601       206,424  

Eastman Chemical Co.

     6,392       497,489  

International Flavors & Fragrances, Inc.

     4,653       675,103  

International Paper Co.

     10,105       437,749  

LyondellBasell Industries N.V., Class A

     6,016       518,158  

Nucor Corp.

     9,541       525,709  

Packaging Corp. of America

     4,512       430,084  

Reliance Steel & Aluminum Co.

     6,909       653,729  

RPM International, Inc.

     10,152       620,389  

Sonoco Products Co.

     12,079       789,242  

Steel Dynamics, Inc.

     13,489       407,368  

Westrock Co.

     11,186       407,953  
    $ 7,662,001  

Utilities (24.5%):

                

AES Corp.

     33,417       560,069  

Alliant Energy Corp.

     18,048       885,796  

American Electric Power Co., Inc.

     10,528       926,569  

Atmos Energy Corp.

     8,037       848,386  

CMS Energy Corp.

     15,792       914,515  

Consolidated Edison, Inc.

     9,447       828,313  

Dominion Energy, Inc.

     10,857       839,463  

DTE Energy Co.

     7,050       901,554  

Evergy, Inc.

     15,087       907,483  

Eversource Energy

     12,549       950,712  

NextEra Energy, Inc.

     4,653       953,214  

OGE Energy Corp.

     20,351       866,139  

Pinnacle West Capital Corp.

     8,695       818,113  

PPL Corp.

     22,607       701,043  

Public Service Enterprise Group, Inc.

     13,630       801,717  

UGI Corp.

     13,583       725,468  

WEC Energy Group

     11,186       932,576  
    $   14,361,130  

Total Common Stocks (Cost $58,124,618)

     $ 58,411,412  

Total Investments (Cost $58,124,618) — 99.7%

     $ 58,411,412  

Other assets in excess of liabilities — 0.3%

           $ 164,974  

NET ASSETS - 100.00%

           $ 58,576,386  

Percentages indicated are based on net assets as of June 30, 2019.

 

See notes to financial statements.

 

11

    Statements of Assets and Liabilities
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

    

Timothy Plan US
Large Cap Core
ETF

      Timothy Plan
High Dividend
Stock ETF		  

ASSETS:

      

Investments, at value (Cost $58,174,055 and $58,124,618)

    $         59,416,397      $         58,411,412  

Cash and cash equivalents

      45,180        75,396  

Interest and dividends receivable

      52,353        113,469  

Total Assets

      59,513,930        58,600,277  

LIABILITIES:

      

Accrued expenses and other payables:

      

Investment advisory fees

      23,876        23,891  

Total Liabilities

      23,876        23,891  

NET ASSETS:

      

Capital

      58,186,491        58,175,059  

Total distributable earnings/(loss)

      1,303,563        401,327  

Net Assets

    $ 59,490,054      $ 58,576,386  

Shares Outstanding (unlimited shares authorized, no par value):

      2,350,000        2,350,000  

Net asset value:

    $ 25.31      $ 24.93  

 

See notes to financial statements.

 

12

    Statements of Operations 
    For the Period Ended June 30, 2019(a)
Timothy Plan   (Unaudited) 
    

 

     Timothy Plan US
Large Cap Core
ETF		      Timothy Plan
High Dividend
Stock ETF		  

Investment Income:

      

Dividend income

    $ 175,667      $ 353,458  

Interest income

      55        98  

Foreign tax withholding

      (105 )       (296 ) 

Total Income

      175,617        353,260  

Expenses:

      

Investment advisory fees

      43,219        44,588  

Total Expenses

      43,219        44,588  

Net Investment Income (Loss)

      132,398        308,672  

Realized/Unrealized Gains (Losses) from Investment Transactions:

      

Net realized gains (losses) from in-kind transactions

      —        (35,568 ) 

Net change in unrealized appreciation/depreciation on investments

      1,242,342        286,794  

Net realized/unrealized gains on investments

      1,242,342        251,226  

Change in net assets resulting from operations

    $           1,374,740      $           559,898  

 

Amounts designated as ‘‘—’’ are $0 or have been rounded to $0.

(a) For the period from the commencement of operations on May 1, 2019 through June 30, 2019.

 

 

See notes to financial statements.

 

13

    Statements of Changes in Net Assets
        
Timothy Plan       
    

 

    Timothy Plan US
Large Cap Core
ETF		      Timothy Plan
High Dividend
Stock ETF		  
    For the Period
May 1, 2019(a)
through
June 30, 2019		      For the Period
May 1, 2019(a)
through
June 30, 2019		  
    (Unaudited)      (Unaudited)  

From Investment Activities:

     

Operations:

     

Net investment income (loss)

   $ 132,398      $ 308,672  

Net realized gains (losses) from investment transactions

     —        (35,568 ) 

Net change in unrealized appreciation (depreciation) on investments

     1,242,342        286,794  

Change in net assets resulting from operations

     1,374,740        559,898  

Distributions to Shareholders:

     

Distributions

     (71,177 )       (158,571 ) 

Change in net assets resulting from distributions to shareholders

     (71,177 )       (158,571 ) 

Change in net assets resulting from capital transactions

     58,186,491        58,175,059  

Change in net assets

     59,490,054        58,576,386  

Net Assets:

     

Beginning of period

     —        —  

End of period

   $       59,490,054      $       58,576,386  

Capital Transactions:

     

Proceeds from shares issued

     58,186,491        61,800,133  

Cost of shares redeemed

     —        (3,625,074 ) 

Change in net assets resulting from capital transactions

     58,186,491        58,175,059  

Share Transactions:

     

Issued

     2,350,000        2,500,000  

Redeemed

     —        (150,000 ) 

Change in Shares

     2,350,000        2,350,000  

 

Amounts designated as ‘‘—’’ are $0 or have been rounded to $0.

(a) Commencement of operations.

 

See notes to financial statements.

 

14

    Financial Highlights
        
Timothy Plan       
    

 

    Timothy Plan US
Large Cap Core
ETF		           Timothy Plan
High Dividend
Stock ETF		  
    May 1, 2019(a)
through June 30,
2019		           May 1, 2019(a)
through June 30,
2019		  

Net Asset Value, Beginning of Period

   $ 25.16             $ 25.10  

Investment Activities:

      

Net Investment Income (Loss)(b)

     0.07         0.15  

Net Realized and Unrealized Gains (Losses) on Investments

     0.11               (0.25 ) 

Total from Investment Activities

     0.18               (0.10 ) 

Distributions to Shareholders:

      

Net Investment Income

     (0.03 )        (0.07 ) 

Net Realized Gains From Investments

     —               —  

Total Distributions

     (0.03 )              (0.07 ) 

Net Asset Value, End of Period

   $               25.31             $               24.93  

Total Return (excludes sales charge)(c)

     0.76%         -0.40%  

Ratios/Supplemental Data:

      

Ratio of Expenses to Average Net Assets(d)

     0.52%         0.52%  

Ratio of Net Investment Income (Loss) to Average Net Assets(d)

     1.59%         3.59%  

Net Assets, End of Period (000’s)

     $59,490         $58,576  

Portfolio Turnover(c)

     —%         —%  

 

 

(a) Commencement of operations.

(b) Per share net investment income (loss) has been calculated using the average daily shares method.

(c) Not annualized for periods less than one year.

(d) Annualized for periods less than one year.

Amounts designated as ‘‘—’’ are 0 or have been rounded to 0.

 

See notes to financial statements.

 

15

    Notes to Financial Statements
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

1. ORGANIZATION:

The Timothy Plan (the “Trust”) was organized pursuant to a trust agreement dated December 16, 1993 as a Delaware business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment company and thus is determined to be an investment company for accounting purposes. The Trust follows the investment company accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 “Financial Services—Investment Companies.” The Trust is comprised of multiple series funds, two of which are exchange-traded funds (“ETFs”), and are authorized to issue an unlimited number of shares, which are units of beneficial interest with no par value. Each ETF is classified as diversified under the 1940 Act.

The accompanying financial statements are those of the Timothy Plan US Large Cap Core ETF (“US Large Cap Core ETF”) and the Timothy Plan High Dividend Stock ETF (“High Dividend Stock ETF”) (individually, a “Fund” and collectively, the “Funds”). The Funds seek to provide investment results that track the performance of an underlying index, before fees and expenses. The underlying index for the US Large Cap Core ETF and the High Dividend Stock ETF is the Victory US Large Cap Volatility Weighted BRI Index and the Victory US Large Cap High Dividend Volatility Weighted BRI Index (individually, an “Index” and collectively, the “Indices”), respectively. The remaining series funds are presented in separate annual reports.

Under the Trust’s organizational documents, its officers and Board of Trustees (the “Board”) are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.

2. SIGNIFICANT ACCOUNTING POLICIES:

Shares of the Funds are listed and traded on the New York Stock Exchange (“NYSE” or the “Exchange”). The Funds’ shares are offered at net asset value (“NAV”) only in aggregations of 50,000 Shares (each a “Creation Unit”). The Funds will issue and redeem Creation Units principally in exchange for a basket of securities included in the respective Fund’s Index (the “Deposit Securities”), together with the deposit of a specified cash payment (the “Cash Component”), plus transaction fees (“Transaction Fees”) as further described below. Shares trade on the Exchange at market prices that may be below, at, or above NAV

Shares of a Fund may only be purchased or redeemed by certain financial institutions (“Authorized Participants”). An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System (“Clearing Process”) of the National Securities Clearing Corporation (“NSCC”) or (ii) a DTC

 

16

    Notes to Financial Statements
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors do not qualify as Authorized Participants nor have the resources to buy and sell whole Creation Units. Therefore, they are unable to purchase or redeem the shares directly from a Fund.

The Funds reserve the right to offer creations and redemptions of Shares for cash. In addition, Shares may be issued in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash equal to up to 105% of the market value of the missing Deposit Securities. In each instance of such cash creations or redemptions, transaction fees may be imposed and may be higher than the transaction fees associated with in-kind creations or redemptions.

Transaction Fees include a fixed fee (“Fixed Fee”) payable to the Custodian (“Citibank N.A.”), which is imposed on each creation and redemption transaction regardless of the number of Creation Units involved in the transaction. Transaction Fees may also include an additional variable charge (“Variable Charge” for purchases and redemptions of Creation Units for cash or involving cash-in-lieu, to compensate each Fund and its ongoing shareholders for brokerage and market impact expenses relating to Creation Unit transactions. Under certain circumstances, the Transaction Fees may be waived or adjusted. In such cases, the Authorized Participant will reimburse each Fund for, among other things, any difference between the market value at which the securities and/or financial instruments were purchased by each Fund and the cash-in-lieu amount, applicable registration fees, brokerage commissions and certain taxes and other costs and expenses related to the execution of trades resulting from such transaction (up to the maximum amount shown below). In addition, purchasers of Creation Units are responsible for the costs of transferring the Deposit Securities to the account of each Fund. Variable fees received by each Fund are displayed in the Capital Share Transaction section of the Statements of Changes in Net Assets as an increase to Paid-In-Capital.

Investors who use the services of a broker, or other such intermediary may be charged a fee for such services.

The Transaction Fees for each Fund are listed below:

 

Fund    Fee for In Kind and
Cash Purchases and
Redemptions		    Maximum
Additional Variable
Charge for Cash
Purchases and
Redemptions*

US Large Cap Core ETF

      $ 500        2.00 %

High Dividend Stock ETF

      $ 500        2.00 %

* As a percentage of the amount invested.

 

17

    Notes to Financial Statements
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Funds follow the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

The Funds record investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Funds’ investments are summarized in the three broad levels listed below:

• Level 1 — quoted prices in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities or interest rates applicable to those securities, etc.)

• Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

Portfolio securities listed or traded on securities exchanges, American Depositary Receipts (“ADRs”) and Rights, are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the NASDAQ Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy. Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under

 

18

    Notes to Financial Statements
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

the general supervision and responsibility of the Trust’s Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

A summary of the valuations as of June 30, 2019, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedules of Portfolio Investments:

 

Investment Securities    LEVEL 1 —
Quoted
Prices		      LEVEL 2 —
Other
Significant
Observable
Input		      LEVEL 3 —
Other
Significant
Unobservable
Input		      Total  

US Large Cap Core ETF

 

Common Stock

    $ 59,416,397      $ —      $ —      $ 59,416,397  

Total Investments

    $ 59,416,397      $ —      $ —      $ 59,416,397  

High Dividend Stock ETF

 

Common Stock

    $ 58,411,412      $ —      $ —      $ 58,411,412  

Total Investments

    $ 58,411,412      $ —      $ —      $ 58,411,412  

Real Estate Investment Trusts (“REITs”):

The Funds may invest in REITs which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income-producing real estate or real estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Funds or when such information becomes known.

Investment Companies:

The Funds may invest in portfolios of open-end investment companies. These investment companies 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 by the methods established by the board of directors of the underlying funds.

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable,

 

19

    Notes to Financial Statements
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

Withholding taxes on interest, dividends and gains as a result of certain investments in ADRs by the Funds have been provided for in accordance with each investment’s applicable country’s tax rules and rates.

Foreign Currency Translations:

The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities of a Fund denominated in a foreign currency are translated into U.S. dollars at current exchange rates. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rates on the date of the transactions. The Funds do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are disclosed as net change in unrealized appreciation/depreciation on investments and foreign currency translations on the Statements of Operations. Any realized gains or losses from these fluctuations are disclosed as net realized gains or losses from investment transactions and foreign currency translations on the Statements of Operations.

Foreign Taxes:

The Funds may be subject to foreign taxes related to foreign income received (a portion of which may be reclaimable), capital gains on the sale of securities, and certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable regulations and rates that exist in the foreign jurisdictions in which the Funds invest.

Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid monthly for the Funds. Distributable net realized gains, if any, are declared and distributed at least annually from each Fund.

The amounts of dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these “book/tax” differences are permanent in nature (i.e., that they result from other than timing of recognition - “temporary difference”), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by a Fund may be reclassified as an offset to capital on the accompanying Statements of Assets and Liabilities.

 

20

    Notes to Financial Statements
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

Federal Income Taxes:

It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements.

Management of the Funds has reviewed tax positions, including federal. Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

3. PURCHASES AND SALES OF SECURITIES:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) and in-kind transactions associated with purchases and sales for the period ended June 30, 2019 were as follows:

 

    Excluding in-kind
transactions		            Associated with in-kind
transactions		  
Fund   Purchases      Sales            Purchases      Sales  

US Large Cap Core ETF

   $ 21,563      $ —        $ 55,636,584      $ —  

High Dividend Stock ETF

     —        —          59,270,588        3,620,106  

For the period ended June 30, 2019, there were no purchases or sales of U.S. Government Securities.

4. FEES AND TRANSACTIONS WITH AFFILIATES AND OTHER PARTIES:

Timothy Partners, Ltd. (“TPL” or the “Advisor”), a Florida limited partnership, serves as the Funds’ investment advisor pursuant to an Investment Advisory Agreement. Subject at all times to the supervision and approval of the Board, the Advisor is responsible for the overall management of the Funds. The Advisor has arranged for distribution, custody, fund administration, transfer agency and all other services necessary for the Funds to operate. The Advisor receives a fee for its services, (the “Management Fee”). From the Management Fee, the Advisor is obligated to pay or arrange for the payment of substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration and accounting, legal, audit, independent trustees and other services, except for interest expenses, distribution fees or expenses, brokerage expenses, acquired fund fees and expenses, taxes and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of the Fund’s business. The Advisor’s Management Fee is designed to cause substantially all of the Funds’ expenses to be paid and to compensate

 

21

    Notes to Financial Statements
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

the Advisor for providing services for the Funds. Both US Large Cap Core ETF and High Dividend Stock ETF pay a Management Fee equivalent to 0.52% of the Fund’s average daily net assets, computed daily and paid monthly.

Victory Capital Management, Inc., a New York corporation, serves as the Funds’ sub-advisor pursuant to a written sub-advisory agreement with the Advisor and receives fees from the Advisor for these services.

Citibank, N.A. serves as the Funds’ Custodian and Transfer Agent pursuant to a Global Custodial and Agency Services Agreement with the Trust. Citi Fund Services Ohio, Inc. (“Citi”), an affiliate of Citibank, N.A., serves as the Funds’ administrator and fund accountant pursuant to a Services Agreement with the Trust.

Foreside Fund Services, LLC (“Foreside”) serves as the Funds’ distributor.

Drake Compliance LLC provides compliance services to the Trust.

Certain officers and/or interested trustees of the Funds are also officers and/or employees of the Advisor.

5. INVESTMENT RISKS:

Each Fund may be subject to other risks in addition to these identified risks.

ETF Risk

The NAV of a Fund can fluctuate up or down, and you could lose money investing in a Fund if the prices of the securities owned by the Fund decline. In addition, a Fund may be subject to the following risks: (1) the market price of a Fund’s shares may trade above or below its NAV; (2) an active trading market for a Fund’s shares may not develop or be maintained; or (3) trading of a Fund’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.

Market Risk

The prices of the securities, particularly the common stocks, in which the Funds invest, may decline for a number of reasons. The price declines of common stocks, in particular, may be steep, sudden, and/or prolonged. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of a Fund’s holdings to fall as part of a broad market decline. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, and other geopolitical events, can have a dramatic adverse effect on securities held by a Fund.

 

22

    Notes to Financial Statements
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

Foreign Securities Risk

Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations can involve additional risks relating to political, economic, or regulatory conditions in foreign countries. These risks include fluctuations in foreign currencies; imposition of additional taxes; trading, settlement, custodial and other operational risks; and risk arising from the less stringent investor protection and disclosure standards of some foreign markets. All of these factors can make foreign investments more volatile and potentially less liquid than U.S. investments. In addition, foreign markets can perform differently from the U.S. market.

Excluded Security Risk

Because the Index omits Excluded Securities, the Fund may be riskier than other funds that invest in a broader array of securities. Biblically Responsible Investing (“BRI”) may not be successful. Because the Index is reconstituted only at prescribed times during the year, the Fund may temporarily hold securities that do not comply with the BRI screening criteria if the application of the criteria or the nature of a company’s business changes in between these dates.

6. FEDERAL INCOME TAX INFORMATION:

As of June 30, 2019, the tax cost of securities and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:

 

Fund    Tax Cost      Tax
Unrealized
Appreciation		      Tax
Unrealized
Depreciation		     Net
Unrealized
Appreciation
(Depreciation)		  

US Large Cap Core ETF

    $ 58,174,055      $ 2,294,846      $ (1,052,504 )    $ 1,242,342  

High Dividend Stock ETF

      58,124,618        1,502,046        (1,215,252 )      286,794  

7. RECENT ACCOUNTING PRONOUNCEMENTS:

In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurements” (“ASU 2018-13”). This update makes certain removals from, changes to and additions to existing disclosure requirements for fair value measurements. ASU 2018-13 does not change fair value measurements already required or permitted by existing standards. ASU 2018-13 is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Funds’ early adoption of certain provisions of the ASU 2018-13 disclosure requirements are reflected within these financial statements prepared as of June 30, 2019. The adoption of the remaining disclosure requirements within ASU 2018-13 will not materially impact the Funds’ financial statements.

 

23

    Notes to Financial Statements
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

8. SUBSEQUENT EVENTS:

The Funds have evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Funds’ financial statements.

 

24

    Other Information
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

OTHER INFORMATION

Proxy Voting and Form N-PORT Information

Proxy Voting:

Information regarding the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-539-3863. The information is also included in the Funds’ Statement of Additional Information, which is available on the SEC’s website at www.sec.gov.

Information relating to how the Funds voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available on the SEC’s website at www.sec.gov.

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N- PORT. Forms N- PORT are available on the SEC’s website at www.sec.gov.

Expense Examples

As a shareholder of the Funds, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases; and (2) ongoing costs, including management fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2019 (commencement of operations) through June 30, 2019.

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

The Hypothetical Expense figures in the table below provide 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

 

25

    Other Information
    June 30, 2019
Timothy Plan   (Unaudited)
    

 

use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

Fund   Beginning
Account
Value
5/1/19*		     Actual
Ending
Account
Value
6/30/19		     Hypothetical
Ending
Account
Value
6/30/19		     Actual
Expenses
Paid During
Period
5/1/19 –
6/30/19**		     Hypothetical
Expenses
Paid During
Period
1/1/19 –
6/30/19***		     Annualized
Expense
Ratio
During
Period
5/1/19 –
6/30/19		  
US Large Cap Core ETF

 

ETF Shares

   $ 1,000     $ 1,007.60     $ 1,022.22     $ 0.87     $ 2.61       0.52 % 
High Dividend Stock ETF

 

ETF Shares

   $ 1,000     $ 996.00     $ 1,022.22     $ 0.87     $ 2.61       0.52 % 

 

*

Commencement of operations

 

**

Expenses are equal to the average account value multiplied by the Fund’s annualized expense ratio multiplied by 61/365 (to reflect the number of days from commencement of operations on May 1, 2019 through June 30, 2019).

 

***

Expenses are equal to the average account value multiplied by the Fund’s annualized expense ratio multiplied by 181/365 (the number of days in the more recent fiscal half-year divided by the number of days in the fiscal year).

 

26

    Approval of Investment Advisory and Subadvisory Agreement
    (Unaudited)
Timothy Plan    
    

 

Board Initial Approval of Advisory and Sub-Advisory Agreement (Unaudited)

Timothy Partners, Ltd-Investment Advisory Agreement

The initial approval of the Investment Advisory Agreement (the “IA Agreement”) between the Trust and Timothy Partners, Ltd. (“TPL”), on behalf of the Timothy Plan Large Cap Core ETF, Timothy Plan Small Cap Core ETF, Timothy Plan International ETF, and Timothy Plan High Dividend Stock ETF was approved by the Board of Trustees (“the Board”), including a majority of the Trustees who are not interested persons of the Trust or any person who is a party to the Agreement, at an in-person meeting held on February 23, 2018, and ratified again on November 16, 2018. The IA Agreement became effective on or about April 29, 2019. A description of the material factors considered by the Board in approving the IA Agreement are set forth below.

The Trustees, including the Independent Trustees, noted with approval the Advisor’s experience and consistency in incorporating and implementing the unique, biblically-based management style that is a stated objective of all the Funds, as set forth in the Funds’ prospectus.

At the February 23, 2018 Meeting, the Board received and reviewed a description of TPL’s business and any personnel changes, a description of the compensation received by TPL from the Funds, information relating to the Advisor’s compliance and operational policies and procedures, and a description of any material legal proceedings or securities enforcement proceedings regarding TPL or its personnel (there were none of either). In addition, the Board requested and received financial statements of TPL for its fiscal year ended December 31, 2017, and noted that updated financial statements were provided at each Board Meeting. At the November 16, 2018 Meeting, TPL confirmed that there were no material changes to the materials considered at the prior Meeting.

At the February 23, 2018 Meeting, the Board received a report from TPL relating to the fees charged by TPL, both as an aggregate and in relation to fees charged by other advisors to similar funds. The materials prepared by TPL were provided to the Board in advance of the meeting. The Board considered the fees to charged by TPL in light of the services provided to the Funds by TPL, the unique nature of the Funds and their moral screening requirements, which are maintained by TPL, and TPL’s role as a manager of managers. After full and careful consideration, the Board, with the independent trustees separately concurring, agreed that the fees charged by TPL were fair and reasonable in light of the services provided to the

 

27

    Approval of Investment Advisory and Subadvisory Agreement
    (Unaudited)
Timothy Plan    
    

 

Funds. At the November 16, 2018 Meeting, TPL confirmed that there were no material changes to the materials considered at the prior Meeting.

At the February 23, 2018 Meeting, the Board also discussed the nature, extent and quality of TPL’s services to be provided to the Funds. In particular, the Board noted with approval TPL’s commitment to maintaining certain targeted expense ratios for the Funds, its efforts in providing comprehensive and consistent moral screens to the investment managers, its efforts in maintaining appropriate oversight of the investment manager to each Fund, and its efforts to maintain ongoing regulatory compliance for the Funds. The Board also discussed TPL’s current fee structure and whether such structure would allow the Funds to realize economies of scale as they grow. Because ETF’s are unique in their structures, and the fees to be charged by TPL were so low, economies of scale were not considered to be a relevant consideration. Because these were to be new Funds without an operating history, past performance was not a consideration. However, the Board noted with approval that the investment managers of each Traditional Fund did not succumb to “style drift” in their management of each Fund’s assets, and that each Fund was committed to maintain its investment mandate, even if that meant under performance during periods when that style was out of favor. The Board noted with approval the Advisor’s ongoing efforts to maintain such consistent investment discipline. The Board also noted with approval that the Advisor’s business was devoted exclusively to serving the Funds, and that the Advisor did not realize any ancillary benefits or profits deriving from its relationship with the Funds. The Board further noted with approval the Advisor’s past activities on monitoring the performance of the underlying Funds’ various investment managers and the promptness and efficiency with which problems were brought to the Board’s attention and responsible remedies offered and executed. After careful discussion and consideration, the Board, including the separate concurrence of the independent Trustees, unanimously cast an affirmative vote, and determined that the approval of the IA Agreement for an initial two-year period would be in the best interests of the Funds’ shareholders. In approving the IA Agreement, the Board did not place specific emphasis on any one factor discussed above, but considered all factors in equal light. Further, the Board had available and availed itself of the assistance of legal counsel at all times during its consideration of the IA Agreement. All of the considerations discussed above were ratified at the November 16, 2018 Meeting.

 

28

    Approval of Investment Advisory and Subadvisory Agreement
    (Unaudited)
Timothy Plan    
    

 

Victory Capital Management, Inc.-Sub-Advisory Agreement

The initial approval of the Sub-Investment Advisory Agreement (the “Sub-IA Agreement”) between Timothy Partners, Ltd. (“TPL”) and Victory Capital Management, Inc. (“Victory”), on behalf of the Timothy Plan Large Cap Core ETF, Timothy Plan Small Cap Core ETF, Timothy Plan International ETF, and Timothy Plan High Dividend Stock ETF was approved by the Board of Trustees (“the Board”), including a majority of the Trustees who are not interested persons of the Trust or any person who is a party to the Agreement, at an in-person meeting held on November 16, 2018. The Sub-IA Agreement became effective on or about April 29, 2019. A description of the material factors considered by the Board in approving the Sub-IA Agreement are set forth below.

The Board considered the following material factors in arriving at its conclusions to approve the Sub-IA Agreement. First, the Board considered the fees to be charged by Victory in light of the services provided by Victory to other similar clients. After full and careful consideration, the Board, with the independent trustees separately concurring, agreed that the fees charged by Victory and paid out of the fees received by TPL were fair and reasonable in light of the services provided by Victory. In reaching that determination, the Board relied on reports describing the fees paid to Victory. Next, the Board discussed the nature, extent and quality of Victory’s services to each Fund, including the investment performance of the Funds under Victory’s investment management. Because these were new Funds without an operating history, the Board considered Victory’s performance record for its other clients, noting that the Funds managed by Victory were generally robust. The Board noted with approval the reports of UBS PRIME, TPL, the Trust’s CCO, and TPL’s CCO, stating that Victory was an industry leader in the ETF management space, describing the assistance and guidance provided by Victory during the registration process, describing the assistance and guidance provided by Victory in coordinating the various service providers required for ETF’s, and describing their obvious expertise in ETF operations. Next, the Board considered whether Victory’s current fee structure would allow the Funds to realize economies of scale as they grow. The Board decided that this particular factor was moot with respect to the Sub-IA Agreement because Victory was paid out of the fees paid to TPL. After careful discussion and consideration, the Board, including the independent Trustees separately concurring, unanimously determined that the approval of the Sub-IA Agreement would be in the best interests of the Funds’ shareholders. In approving the Sub-IA Agreement, the Board did not place specific emphasis on any one factor discussed above, but considered all factors in equal light. Further, the Board had available and availed itself of the assistance of legal counsel at all times during its consideration of the Sub-IA Agreement consideration.

 

29

Timothy Plan

1055 Maitland Center Commons

Maitland, Florida 32751

PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS, AND YOU MAY LOSE MONEY. You should consider the fund’s investment objectives, risks, charges, and expenses. This and other important information can be found in the fund’s prospectus. To obtain a copy, visit timothyplan.com or call 800.846.7526. Read the prospectus carefully before investing or sending money. ETFs distributed by Foreside Fund Services, LLC, member FINRA and SIPC. Timothy Partners, Ltd. is not affiliated with Foreside Fund Services, LLC.

 

 

LOGO

 

Visit our website at    Call Timothy Plan at
etf.timothyplan.com    800.846.7526

Item 2. Code of Ethics.

Not applicable __ only for annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable __ only for annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable __ only for annual reports.

Item 5.    Audit Committee of Listed Registrants.

Not applicable – only for annual reports.

Item 6.  Investments.

 

(a)

 The Schedule of Investments as of the close of the reporting period are included as part of the report to shareholders filed  under Item 1 of the Form N-CSR.

 

(b)

 Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

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.

Not applicable.

Item 11. Controls and Procedures.

 

(a)

The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

 

(a)(1)

Not applicable __ only for annual reports.

 

(a)(2)

Certifications pursuant to Rule 30a-2(a) are attached hereto.

 

(a)(3)

Not applicable.

 

(b)

Certifications pursuant to Rule 30a-2(b) are furnished herewith.

SIGNATURES

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

(Registrant) Timothy Plan                                                      

 

By (Signature and Title)     /s/ Arthur D. Ally                                                                             

Arthur D. Ally, Principal Executive Officer and Principal Financial Officer

Date    August 28, 2019

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

 

By (Signature and Title)    /s/ Arthur D. Ally                                                                                          

Arthur D. Ally, Principal Executive Officer and Principal Financial Officer

Date    August 28, 2019