N-Q 1 d787716dnq.htm UNIFIED SERIES TRUST Unified Series Trust

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21237

 

 

Unified Series Trust

(Exact name of registrant as specified in charter)

 

 

Huntington Asset Services, Inc. 2960 N. Meridian Street, Suite 300    Indianapolis, IN 46208

                (Address of principal executive offices)                                                             (Zip code)

 

 

Zachary P. Richmond

Huntington Asset Services, Inc.

2960 N. Meridian Street, Suite 300

Indianapolis, IN 46208

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 317-917-7000

Date of fiscal year end: 11/30

Date of reporting period: 8/31/14

 

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on
Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. Schedule of Investments.

1492 Small Cap Growth Fund

Schedule of Investments

August 31, 2014 (Unaudited)

 

     Shares      Fair Value  

Common Stocks — 97.82%

      

Consumer Discretionary — 9.73%

      

Apollo Group, Inc. - Class A *

      3,377       $ 93,779   

Bridgepoint Education, Inc. *

      4,208         52,895   

DeVry Education Group, Inc.

      1,903         81,696   

Rentrak Corp. *

      2,599         132,705   

RetailMeNot, Inc. *

      2,407         44,891   

Shoe Carnival, Inc.

      2,618         56,366   

Skechers U.S.A., Inc. *

      1,570         91,641   
     

 

 

  
        553,973   
     

 

 

  

Energy — 10.12%

      

Goodrich Petroleum Corp. *

      3,553         78,521   

Matrix Service Co. *

      1,316         37,124   

Patterson-UTI Energy, Inc.

      2,538         87,662   

PBF Energy, Inc.

      2,537         72,076   

Penn Virginia Corp. *

      4,171         62,648   

RSP Permian, Inc. *

      2,652         75,847   

Sanchez Energy Corp. *

      3,363         111,618   

Synergy Resources Corp. *

      3,761         50,623   
     

 

 

  
        576,119   
     

 

 

  

Financials — 12.99%

      

BofI Holding, Inc. *

      2,095         161,294   

C1 Financial, Inc. *

      1,868         32,055   

Evercore Partners, Inc.

      851         43,597   

Federated National Holding Co.

      6,661         164,527   

HFF, Inc. - Class A

      3,158         94,740   

Home Bancshares, Inc.

      1,420         42,245   

Raymond James Financial, Inc.

      1,721         94,035   

Stifel Financial Corp. *

      2,247         107,586   
     

 

 

  
        740,079   
     

 

 

  

Health Care — 15.42%

      

BioTelemetry, Inc. *

      9,115         66,722   

CAS Medical Systems, Inc. *

      12,605         19,916   

Cepheid, Inc. *

      1,490         59,645   

Charles River Laboratories International, Inc. *

      759         44,857   

EnteroMedics, Inc. *

      13,525         19,746   

Keryx Biopharmaceuticals, Inc. *

      3,824         69,559   

Ligand Pharmaceuticals, Inc. - Class B *

      1,604         83,472   

NeoGenomics, Inc. *

      14,037         74,817   

OraSure Technologies, Inc. *

      5,110         42,566   

PAREXEL International Corp. *

      763         43,064   

Salix Pharmaceuticals Ltd. *

      1,756         279,397   

Staar Surgical Co. *

      6,485         74,642   
     

 

 

  
        878,403   
     

 

 

  

Industrials — 17.04%

      

Ceco Environmental Corp.

      4,681         65,815   

Con-way, Inc.

      837         42,896   

Dycom Industries, Inc. *

      173         5,399   

Great Lakes Dredge & Dock Corp. *

      7,845         59,779   

Landstar System, Inc.

      625         42,416   

Marten Transport Ltd.

      3,585         70,983   

MasTec, Inc. *

      1,392         42,456   

MiX Telematics Ltd. ADR *

      5,951         53,678   

 

See accompanying notes which are an integral part of this schedule of investments.

     Shares      Fair Value  

Common Stocks — 97.82% - continued

      

Industrials — 17.04% - continued

      

Orion Marine Group, Inc. *

      4,348       $ 43,958   

Powell Industries, Inc.

      986         51,952   

Power Solutions International, Inc. *

      947         64,727   

Primoris Services Corp.

      2,710         78,698   

Roadrunner Transportation Systems, Inc. *

      2,606         65,619   

Sterling Construction Co., Inc. *

      9,217         78,529   

Swift Transportation Co. *

      1,873         39,670   

United Rentals, Inc. *

      1,392         163,769   
     

 

 

  
        970,344   
     

 

 

  

Information Technology — 25.53%

      

Alliance Fiber Optic Products, Inc.

      2,877         42,637   

Atmel Corp. *

      4,778         42,333   

Bottomline Technologies (de), Inc. *

      2,670         75,187   

CalAmp Corp. *

      4,374         84,331   

Calix, Inc. *

      3,868         40,614   

CoStar Group, Inc. *

      304         44,004   

FleetMatics Group PLC *

      2,590         85,004   

KVH Industries, Inc. *

      3,432         42,660   

LivePerson, Inc. *

      5,921         76,440   

Magic Software Enterprises Ltd.

      12,183         87,596   

Microsemi Corp. *

      3,725         99,234   

Multi-Fineline Electronix, Inc. *

      3,883         39,335   

Numerex Corp. - Class A *

      4,626         52,991   

Pandora Media, Inc. *

      3,370         91,125   

PDF Solutions, Inc. *

      3,376         67,419   

Proofpoint, Inc. *

      1,403         55,952   

Saba Software, Inc. *

      8,302         116,228   

Synaptics, Inc. *

      345         28,324   

Tangoe, Inc. *

      5,960         82,963   

Textura Corp. *

      2,263         65,220   

Ultimate Software Group, Inc./The *

      238         34,984   

Virtusa Corp. *

      2,913         99,188   
     

 

 

  
        1,453,769   
     

 

 

  

Real Estate Investment Trust — 1.15%

      

Physicians Realty Trust

      4,426         65,549   
     

 

 

  

Telecommunication Services — 5.84%

      

8x8, Inc. *

      9,027         70,140   

Cogent Communications Holdings, Inc.

      1,689         58,541   

inContact, Inc. *

      16,231         148,676   

ORBCOMM, Inc. *

      8,835         55,042   
     

 

 

  
        332,399   
     

 

 

  

Total Common Stocks
(Cost $5,288,468)

         5,570,635   
     

 

 

  

Money Market Securities — 1.93%

      

Fidelity Institutional Money Market Treasury Portfolio - Class I, 0.01% (a)

      109,849         109,849   
     

 

 

  

Total Money Market Securities
(Cost $109,849)

         109,849   
     

 

 

  

Total Investments – 99.75%
(Cost $5,398,317)

         5,680,484   
     

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

Other Assets in Excess of Liabilities – 0.25%

      $ 14,342   
    

 

 

  

TOTAL NET ASSETS – 100.00%

      $ 5,694,826   
    

 

 

  

 

(a) Rate disclosed is the seven day yield as of August 31, 2014.
* Non-income producing security.

ADR — American Depositary Receipt

Tax related - At August 31, 2014, the net unrealized appreciation (depreciation) for tax purposes was as follows:

 

Unrealized appreciation

    $ 602,810   

Unrealized depreciation

      (324,355 ) 
  

 

 

  

Net unrealized appreciation

    $ 278,455   
  

 

 

  

Aggregate cost of securities for income tax purposes

    $ 5,402,029   
  

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

1492 Small Cap Growth Fund

Related Notes to the Schedule of Investments

August 31, 2014

(Unaudited)

 

Security Transactions and Related Income - The 1492 Small Cap Growth Fund (the “Fund”) follows industry practice and records security transactions on the trade date for financial reporting purposes. The Long Term Highest Cost method (or specific identification) is used for determining gains or losses for financial statements and income tax purposes. The Long Term Highest Cost method assumes that, when a security is sold, the tax lot with the highest cost and qualifying for long term capital gain (loss) treatment is sold first. If no tax lots for a security sold qualify for long term capital gain (loss) treatment, then the Fund will default to clearing the highest cost tax lot with short term capital gain (loss) characteristics. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized or accreted using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic and political developments in a specific country or region.

Securities Valuation and Fair Value Measurements - Fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Generally Accepted Accounting Principles in the United States of America (“GAAP”) establishes 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.

Various inputs are used in determining the value of the Fund’s investments. These inputs 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, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

  •   Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments 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.

Equity securities, including common stocks, are generally valued by using market quotations furnished by a pricing service. 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. Sometimes, an equity security owned by the Fund will be valued by the pricing service with factors other than market quotations or when the market is considered inactive. When this happens, the security will be classified as a Level 2 security. When market quotations are not readily available, when the Adviser 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 Adviser, in conformity with guidelines adopted by and subject to review by the Board of Trustees (the “Board”). These securities will be categorized as Level 3 securities.

 

1492 Small Cap Growth Fund

Related Notes to the Schedule of Investments - continued

August 31, 2014

(Unaudited)

 

Investments in mutual funds, including money market mutual funds, are generally priced at the ending net asset value (NAV) provided by the service agent of the mutual fund. These securities will be categorized as Level 1 securities.

Fixed income 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 Adviser believes such prices more accurately reflect the fair value of such securities. A pricing service uses various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the fixed income securities are categorized as Level 2 securities. If the Adviser 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 Adviser, 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.

In accordance with the Trust’s good faith pricing guidelines, the Adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in the Adviser’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Fund’s NAV calculation that may affect a security’s value, or the Adviser is aware of any other data that calls into question the reliability of market quotations. Good faith pricing may also be used in instances when the bonds the Funds invest in may default or otherwise cease to have market quotations readily available.

The following is a summary of the inputs used to value the 1492 Small Cap Growth Fund’s investments as of August 31, 2014:

 

     Valuation Inputs  

Investments

    Level 1 - Quoted
Prices in Active
Markets		      Level 2 - Other
Significant
Observable Inputs		      Level 3 -
Significant
Unobservable
Inputs		      Total  

Common Stocks*

    $ 5,570,635       $ —         $ —         $ 5,570,635   
  

 

 

     

 

 

     

 

 

     

 

 

  

Money Market Securities

      109,849         —           —           109,849   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 5,680,484       $ —         $ —         $ 5,680,484   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

* Refer to the Schedule of Investments for industry classifications.

The Fund did not hold any investments at any time during the reporting period in which significant unobservable inputs were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period. The Trust recognizes transfers between fair value hierarchy levels at the reporting period end. There were no transfers between fair value hierarchy levels during the period ended August 31, 2014.

Symons Value Institutional Fund

Schedule of Investments

August 31, 2014 (Unaudited)

 

     Shares      Fair Value  

Common Stocks — 88.37%

      

Agricultural Products — 0.89%

      

Ingredion, Inc.

      10,685       $ 852,236   
     

 

 

  

Biotechnology — 1.18%

      

Amgen, Inc.

      8,110         1,130,372   
     

 

 

  

Brewers — 4.70%

      

Ambev SA ADR *

      485,000         3,535,650   

Molson Coors Brewing Co. - Class B

      13,150         972,443   
     

 

 

  
        4,508,093   
     

 

 

  

Electric Utilities — 8.10%

      

Duke Energy Corp.

      38,640         2,858,974   

Entergy Corp.

      25,210         1,951,506   

PPL Corp.

      85,359         2,955,982   
     

 

 

  
        7,766,462   
     

 

 

  

Gold — 3.06%

      

Goldcorp, Inc.

      85,600         2,402,792   

Sibanye Gold Ltd. ADR

      56,175         527,483   
     

 

 

  
        2,930,275   
     

 

 

  

Health Care Services — 2.19%

      

Express Scripts Holding Co. *

      28,450         2,103,308   
     

 

 

  

Household Products — 4.66%

      

Procter & Gamble Co.

      53,740         4,466,331   
     

 

 

  

Integrated Telecommunication Services — 6.89%

      

AT&T, Inc.

      92,850         3,246,036   

Orange SA ADR

      220,920         3,353,566   
     

 

 

  
        6,599,602   
     

 

 

  

IT Consulting & Other Services — 1.82%

      

International Business Machines Corp.

      9,070         1,744,161   
     

 

 

  

Leisure Products — 1.80%

      

Hasbro, Inc.

      32,840         1,729,190   
     

 

 

  

Multi-Utilities — 7.05%

      

Alliant Energy Corp.

      32,820         1,919,642   

Consolidated Edison, Inc.

      49,930         2,890,448   

PG&E Corp.

      41,830         1,944,258   
     

 

 

  
        6,754,348   
     

 

 

  

Oil & Gas Drilling — 1.81%

      

Transocean Ltd.

      44,970         1,738,091   
     

 

 

  

Oil & Gas Exploration & Production — 2.58%

      

Anadarko Petroleum Corp.

      21,900         2,467,911   
     

 

 

  

Packaged Foods & Meats — 14.55%

      

Campbell Soup Co.

      90,690         4,064,726   

ConAgra Foods, Inc.

      94,970         3,058,034   

Hershey Co./The

      38,490         3,518,756   

Kellogg Co.

      34,920         2,268,752   

Kraft Foods Group, Inc.

      17,500         1,030,750   
     

 

 

  
        13,941,018   
     

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

Symons Value Institutional Fund

Schedule of Investments

August 31, 2014 (Unaudited) - continued

 

     Shares      Fair Value  

Common Stocks — 88.37% - continued

      

Pharmaceuticals — 8.21%

      

GlaxoSmithKline PLC ADR

      39,800       $ 1,954,180   

Novo-Nordisk A/S ADR

      65,580         3,014,057   

Teva Pharmaceutical Industries Ltd. ADR

      55,145         2,896,215   
     

 

 

  
        7,864,452   
     

 

 

  

Precious Metals & Minerals — 2.96%

      

Silver Wheaton Corp.

      113,310         2,833,883   
     

 

 

  

Soft Drinks — 3.69%

      

PepsiCo, Inc.

      38,270         3,539,592   
     

 

 

  

Systems Software — 4.11%

      

CA, Inc.

      67,000         1,892,080   

Oracle Corp.

      49,350         2,049,506   
     

 

 

  
        3,941,586   
     

 

 

  

Tobacco — 4.11%

      

Philip Morris International, Inc.

      45,990         3,935,824   
     

 

 

  

Wireless Telecommunication Services — 4.01%

      

Rogers Communications, Inc.

      94,160         3,840,786   
     

 

 

  

Total Common Stocks
(Cost $70,992,164)

         84,687,521   
     

 

 

  

Real Estate Investment Trusts — 5.27%

      

Digital Realty Trust, Inc.

      34,500         2,251,125   

Senior Housing Properties Trust

      119,830         2,795,634   
     

 

 

  

Total Real Estate Investment Trusts
(Cost $4,551,101)

         5,046,759   
     

 

 

  

Money Market Securities — 6.17%

      

Fidelity Institutional Money Market Treasury Only - Class I, 0.01% (a)

      5,912,412         5,912,412   
     

 

 

  

Total Money Market Securities
(Cost $5,912,412)

         5,912,412   
     

 

 

  

Total Investments – 99.81%
(Cost $81,455,677)

       $ 95,646,692   
     

 

 

  

Other Assets in Excess of Liabilities – 0.19%

         181,392   
     

 

 

  

TOTAL NET ASSETS – 100.00%

       $ 95,828,084   
     

 

 

  

 

(a) Rate disclosed is the seven day yield as of August 31, 2014.
* Non-income producing security.

ADR — American Depositary Receipt

 

See accompanying notes which are an integral part of this schedule of investments.

Symons Value Institutional Fund

Schedule of Investments

August 31, 2014 (Unaudited) - continued

 

Tax related - At August 31, 2014, the net unrealized appreciation (depreciation) for tax purposes was as follows:

 

Unrealized appreciation

    $ 14,396,595   

Unrealized depreciation

      (218,915 ) 
  

 

 

  

Net unrealized appreciation

    $ 14,177,680   
  

 

 

  

Aggregate cost of securities for income tax purposes

    $ 81,469,012   
  

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

Symons Small Cap Institutional Fund

Schedule of Investments

August 31, 2014 (Unaudited)

 

     Shares      Fair Value  

Common Stocks — 83.95%

      

Apparel Retail — 1.45%

      

Brown Shoe Co., Inc.

      1,270       $ 37,897   
     

 

 

  

Biotechnology — 1.16%

      

Momenta Pharmaceuticals, Inc. *

      2,570         30,300   
     

 

 

  

Construction & Farm Machinery — 1.31%

      

Lindsay Corp.

      440         34,223   
     

 

 

  

Data Processing & Outsourced Services — 2.03%

      

NeuStar, Inc. - Class A *

      1,790         52,787   
     

 

 

  

Diversified Chemicals — 1.45%

      

LSB Industries, Inc. *

      940         37,647   
     

 

 

  

Education Services — 0.99%

      

K12, Inc. *

      1,370         25,797   
     

 

 

  

Electric Utilities — 5.66%

      

El Paso Electric Co.

      2,330         91,662   

Empire District Electric Co./The

      2,160         55,836   
     

 

 

  
        147,498   
     

 

 

  

Electrical Components & Equipment — 1.63%

      

Brady Corp. - Class A

      990         26,354   

II-VI, Inc. *

      1,160         16,194   
     

 

 

  
        42,548   
     

 

 

  

Environmental & Facilities Services — 1.05%

      

Tetra Tech, Inc.

      1,070         27,285   
     

 

 

  

Fertilizers & Agricultural Chemicals — 1.47%

      

Intrepid Potash, Inc. *

      2,490         38,172   
     

 

 

  

Food Distributors — 2.93%

      

Andersons, Inc./The

      1,110         76,335   
     

 

 

  

Food Retail — 1.11%

      

Fresh Market, Inc./The *

      870         29,015   
     

 

 

  

Gas Utilities — 5.99%

      

Laclede Group, Inc./The

      1,240         61,318   

New Jersey Resources Corp.

      690         36,039   

South Jersey Industries, Inc.

      1,010         58,530   
     

 

 

  
        155,887   
     

 

 

  

Gold — 1.87%

      

Allied Nevada Gold Corp. *

      9,180         35,068   

Golden Star Resources Ltd. *

      28,360         13,670   
     

 

 

  
        48,738   
     

 

 

  

Health Care Equipment — 1.02%

      

Masimo Corp. *

      1,180         26,479   
     

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

Symons Small Cap Institutional Fund

Schedule of Investments

August 31, 2014 (Unaudited) - continued

 

     Shares      Fair Value  

Common Stocks — 83.95% - continued

      

Home Entertainment Software — 1.35%

      

Take-Two Interactive Software, Inc. *

      1,500       $ 35,265   
     

 

 

  

Home Improvement Retail — 1.66%

      

Sears Hometown and Outlet Stores, Inc. *

      2,250         43,155   
     

 

 

  

Hotels, Resorts & Cruise Lines — 2.17%

      

Northwestern Corp.

      1,170         56,488   
     

 

 

  

Integrated Telecommunication Services — 2.03%

      

Atlantic Tele-Network, Inc.

      900         52,776   
     

 

 

  

Movies & Entertainment — 3.61%

      

DreamWorks Animation SKG, Inc. - Class A *

      4,300         93,890   
     

 

 

  

Multi-Utilities — 2.33%

      

Avista Corp.

      1,870         60,700   
     

 

 

  

Oil & Gas Equipment & Services — 2.13%

      

McDermott International, Inc. *

      4,060         29,232   

Seventy Seven Energy, Inc. *

      1,120         26,286   
     

 

 

  
        55,518   
     

 

 

  

Oil & Gas Exploration & Production — 1.77%

      

Approach Resources, Inc. *

      1,420         25,390   

Energy XXI Bermuda Ltd.

      1,260         20,790   
     

 

 

  
        46,180   
     

 

 

  

Packaged Foods & Meats — 17.58%

      

B&G Foods, Inc.

      2,660         80,332   

Cal-Maine Foods, Inc.

      610         48,257   

Chiquita Brands International, Inc. *

      3,820         53,098   

Diamond Foods, Inc. *

      1,220         33,635   

Flowers Foods, Inc.

      2,362         46,248   

Post Holdings, Inc. *

      1,420         52,497   

Sanderson Farms, Inc.

      470         43,860   

Snyder’s-Lance, Inc.

      2,150         58,609   

TreeHouse Foods, Inc. *

      500         41,260   
     

 

 

  
        457,796   
     

 

 

  

Paper Products — 1.04%

      

Clearwater Paper Corp. *

      390         26,988   
     

 

 

  

Precious Metals & Minerals — 4.76%

      

Coeur Mining, Inc. *

      2,560         20,275   

Dominion Diamond Corp. *

      4,260         57,638   

First Majestic Silver Corp. *

      4,500         46,080   
     

 

 

  
        123,993   
     

 

 

  

Reinsurance — 1.54%

      

Endurance Specialty Holdings Ltd.

      690         40,068   
     

 

 

  

Semiconductors — 1.13%

      

Cirrus Logic, Inc. *

      1,220         29,500   
     

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

Symons Small Cap Institutional Fund

Schedule of Investments

August 31, 2014 (Unaudited) - continued

 

     Shares      Fair Value  

Common Stocks — 83.95% - continued

      

Tires & Rubber — 1.54%

      

Cooper Tire & Rubber Co.

      1,300       $ 40,079   
     

 

 

  

Trucking — 1.23%

      

Knight Transportation, Inc.

      1,260         31,941   
     

 

 

  

Water Utilities — 6.96%

      

American States Water Co.

      1,980         63,954   

California Water Service Group

      2,620         63,823   

Connecticut Water Service, Inc.

      1,620         53,379   
     

 

 

  
        181,156   
     

 

 

  

Total Common Stocks
(Cost $1,973,136)

         2,186,101   
     

 

 

  

Real Estate Investment Trusts — 10.79%

      

Agree Realty Corp.

      2,590         76,483   

Associated Estates Realty Corp.

      3,100         57,350   

National Health Investors, Inc.

      1,485         95,797   

Washington Real Estate Investment Trust

      1,850         51,393   
     

 

 

  

Total Real Estate Investment Trusts
(Cost $265,340)

         281,023   
     

 

 

  

Money Market Securities — 5.34%

      

Fidelity Institutional Money Market Treasury Only - Class I, 0.01% (a)

      138,902         138,902   
     

 

 

  

Total Money Market Securities
(Cost $138,902)

         138,902   
     

 

 

  

Total Investments – 100.08%
(Cost $2,377,378)

       $ 2,606,026   
     

 

 

  

Liabilities in Excess of Other Assets – (0.08)%

         (2,049 ) 
     

 

 

  

TOTAL NET ASSETS – 100.00%

       $ 2,603,977   
     

 

 

  

 

(a) Rate disclosed is the seven day yield as of August 31, 2014.
* Non-income producing security.

Tax related - At August 31, 2014, the net unrealized appreciation (depreciation) for tax purposes was as follows:

 

Unrealized appreciation

    $ 331,588   

Unrealized depreciation

      (96,404 ) 
  

 

 

  

Net unrealized appreciation

    $ 235,184   
  

 

 

  

Aggregate cost of securities for income tax purposes

    $ 2,370,842   
  

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

Symons Institutional Funds

Notes to the Financial Statements

August 31, 2014

(Unaudited)

Security Transactions and Related Income - The Symons Value Institutional Fund (the “Value Fund”) and Symons Small Cap Institutional Fund (the “Small Cap Fund”) (each a “Fund” and, collectively the “Funds”), follow industry practice and record security transactions on the trade date for financial reporting purposes. The first in, first out method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized over the lives of the respective securities using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. 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.

Securities Valuation and Fair Value Measurement - Fair value is defined as the price that the Funds would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Generally Accepted Accounting Principles in the United States of America (“GAAP”) establishes 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, for example, the risk inherent in a particular valuation technique used to measure fair value including 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.

Various inputs are used in determining the value of the Funds’ investments. These inputs 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, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

  •   Level 3 – significant unobservable inputs (including each Fund’s own assumptions in determining fair value of investments 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.

Equity securities, including common stocks and real estate investment trusts, are generally valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser 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 closing prices provided by the pricing service and when the market is considered active, the security is classified as a Level 1 security. Sometimes, an equity security owned by a Fund will be valued by the pricing service with factors other than market quotations or when the market is considered inactive. When this happens, the security is classified as a Level 2 security. When market quotations are not readily available, when the Adviser 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 Adviser, in conformity with guidelines adopted by and subject to review by the Board. These securities are categorized as Level 3 securities.

Symons Institutional Funds

Notes to the Financial Statements - continued

August 31, 2014

(Unaudited)

 

Investments in mutual funds, including money market mutual funds, are generally priced at the ending net asset value (NAV) provided by the service agent of the fund. These securities will be categorized as Level 1 securities.

Fixed income securities, when valued using market quotations in an active market, are categorized as Level 1 securities. However, they may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices more accurately reflect the fair value of such securities. A pricing service uses various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the fixed income securities are categorized as Level 2 securities. If the Adviser 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 Adviser, in conformity with guidelines adopted by and subject to review of the Board. These securities are categorized as Level 3 securities.

Short-term investments in fixed income securities, 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.

In accordance with the Trust’s good faith pricing guidelines, the Adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in the Adviser’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Funds’ NAV calculation that may affect a security’s value, or the Adviser is aware of any other data that calls into question the reliability of market quotations. Good faith pricing may also be used in instances when the bonds a Fund invests in may default or otherwise cease to have market quotations readily available.

The following is a summary of the inputs used to value the Value Fund’s investments as of August 31, 2014:

 

     Valuation Inputs  

Assets

    Level 1 - Quoted
Prices in Active
Markets		      Level 2 - Other
Significant
Observable Inputs		      Level 3 -
Significant
Unobservable
Inputs		      Total  

Common Stocks*

    $ 84,687,521       $ —         $ —         $ 84,687,521   

Real Estate Investment Trusts

      5,046,759         —           —           5,046,759   

Money Market Securities

      5,912,412         —           —           5,912,412   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 95,646,692       $ —         $ —         $ 95,646,692   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

* Refer to the Schedule of Investments for industry classifications.

 

 

Symons Institutional Funds

Notes to the Financial Statements - continued

August 31, 2014

(Unaudited)

 

The following is a summary of the inputs used to value the Small Cap Fund’s investments as of August 31, 2014:

 

     Valuation Inputs  

Assets

    Level 1 - Quoted
Prices in Active
Markets		      Level 2 - Other
Significant
Observable Inputs		      Level 3 -
Significant
Unobservable
Inputs		      Total  

Common Stocks*

    $ 2,186,101       $  —         $ —         $ 2,186,101   

Real Estate Investment Trusts

      281,023         —           —           281,023   

Money Market Securities

      138,902         —           —           138,902   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 2,606,026       $ —         $  —         $ 2,606,026   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

* Refer to the Schedule of Investments for industry classifications.

The Funds did not hold any assets at any time during the reporting period in which significant unobservable inputs were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period. The Trust recognizes transfers between fair value hierarchy levels at the reporting period end. There were no transfers between any Levels for the period ended August 31, 2014.

 

Auer Growth Fund

Schedule of Investments

August 31, 2014 (Unaudited)

 

     Shares      Fair Value  

Common Stocks — 99.72%

      

Consumer Discretionary — 21.01%

      

Conn’s, Inc. *

      20,000       $ 896,600   

D.R. Horton, Inc.

      135,000         2,926,800   

LGI Homes, Inc. *

      52,000         994,240   

M/I Homes, Inc. *

      140,000         3,186,400   

Shiloh Industries, Inc. *

      200,000         3,342,000   

Standard Pacific Corp. *

      410,000         3,431,700   

Strattec Security Corp.

      3,000         240,720   

Superior Uniform Group, Inc.

      11,000         239,250   

Taylor Morrison Home Corp. - Class A *

      70,000         1,388,800   

William Lyon Homes - Class A *

      28,000         714,840   
     

 

 

  
        17,361,350   
     

 

 

  

Consumer Staples — 0.13%

      

Omega Protein Corp. *

      7,000         105,490   
     

 

 

  

Energy — 21.69%

      

Atwood Oceanics, Inc. *

      68,000         3,359,880   

Bellatrix Exploration Ltd. *

      110,000         851,400   

Canadian Natural Resources Ltd.

      6,000         261,300   

Devon Energy Corp.

      25,000         1,885,500   

EnCana Corp.

      4,500         103,635   

Hornbeck Offshore Services, Inc. *

      83,000         3,623,780   

Memorial Production Partners LP (a)

      17,000         397,800   

Pacific Ethanol, Inc. *

      20,000         462,200   

PetroQuest Energy, Inc. *

      265,000         1,764,900   

SM Energy Co.

      2,600         231,504   

Triangle Petroleum Corp. *

      100,000         1,199,000   

Vaalco Energy, Inc. *

      25,000         228,750   

Vantage Drilling Co. *

      2,000,000         3,560,000   
     

 

 

  
        17,929,649   
     

 

 

  

Financials — 18.15%

      

1347 Property Insurance Holdings, Inc. *

      10,000         84,500   

Amtrust Financial Services, Inc.

      12,000         528,360   

Atlas Financial Holdings, Inc. *

      28,000         404,040   

Bank of America Corp.

      54,000         868,860   

Bay Bancorp, Inc. *

      22,000         105,600   

BBX Capital Corp. *

      22,000         412,280   

Blackstone Group LP (a)

      114,000         3,822,420   

Colony Bankcorp, Inc. *

      15,000         97,500   

Consumer Portfolio Services, Inc. *

      110,000         786,500   

Federated National Holding Co.

      5,000         123,500   

First Horizon National Corp.

      18,000         218,880   

First Savings Financial Group, Inc.

      9,000         223,200   

Fortress Investment Group LLC - Class A (a)

      26,000         193,960   

Great Southern Bancorp, Inc.

      3,300         104,511   

Hennessy Advisors, Inc.

      8,000         139,600   

HMN Financial, Inc. *

      9,000         110,340   

International Bancshares Corp.

      17,000         448,120   

KCG Holdings, Inc. *

      140,000         1,638,000   

Kingstone Companies, Inc.

      28,000         204,960   

KKR & Co. LP (a)

      8,000         187,920   

Medallion Financial Corp.

      17,000         205,700   

Northeast Bancorp

      10,000         94,200   

 

 

See accompanying notes which are an integral part of this schedule of investments.

Auer Growth Fund

Schedule of Investments

August 31, 2014 (Unaudited) - continued

 

     Shares      Fair Value  

Common Stocks — 99.72% - continued

      

Financials — 18.15% - continued

      

Old Second Bancorp, Inc. *

      40,000       $ 190,000   

Piper Jaffray Cos. *

      5,000         266,800   

Radian Group, Inc.

      13,000         189,280   

Santander Consumer USA Holdings, Inc.

      85,000         1,582,700   

Sussex Bancorp

      10,500         99,750   

United Insurance Holdings Corp.

      65,000         1,049,100   

Westwood Holdings Group, Inc.

      3,500         208,600   

White Mountains Insurance Group Ltd.

      650         412,256   
     

 

 

  
        15,001,437   
     

 

 

  

Health Care — 5.44%

      

Fonar Corp. *

      7,000         85,540   

Gilead Sciences, Inc. *

      41,000         4,410,780   
     

 

 

  
        4,496,320   
     

 

 

  

Industrials — 3.63%

      

Breeze-Eastern Corp. *

      16,000         163,040   

CTPartners Executive Search, Inc. *

      10,000         179,500   

Empire Resources, Inc.

      17,000         96,730   

MFRI, Inc. *

      18,000         229,320   

Sparton Corp. *

      4,000         115,040   

Spirit Aerosystems Holdings, Inc. *

      25,000         958,750   

Trinity Industries, Inc.

      26,000         1,257,880   
     

 

 

  
        3,000,260   
     

 

 

  

Information Technology — 15.45%

      

Aehr Test Systems *

      75,000         190,500   

Alliance Fiber Optic Products, Inc.

      15,000         222,300   

Bel Fuse, Inc. - Class B

      34,000         800,360   

Blonder Tongue Laboratories *

      67,000         111,890   

Canadian Solar, Inc. *

      52,000         1,842,880   

Cartesian, Inc. *

      22,500         92,700   

Cohu, Inc.

      32,000         393,600   

IntriCon Corp. *

      62,000         410,440   

Lam Research Corp.

      30,000         2,157,300   

LRAD Corp. *

      50,000         165,500   

Mattson Technology, Inc. *

      400,000         984,000   

SYNNEX Corp. *

      50,000         3,487,000   

Teradyne, Inc.

      23,000         473,570   

Ultra Clean Holdings *

      95,000         916,750   

Wi-LAN, Inc.

      135,000         523,800   
     

 

 

  
        12,772,590   
     

 

 

  

Materials — 9.56%

      

Avino Silver & Gold Mines Ltd. *

      130,000         273,000   

Fibria Celulose SA ADR *

      35,000         1,000,300   

Gold Resource Corp.

      33,000         204,600   

KapStone Paper and Packaging Corp. *

      16,000         491,840   

Lake Shore Gold Corp. *

      650,000         728,000   

Nevsun Resources Ltd.

      217,000         900,550   

Richmont Mines, Inc. *

      200,000         556,000   

Rio Alto Mining Ltd. *

      125,000         357,500   

Thompson Creek Metals Co., Inc. *

      1,180,000         3,386,600   
     

 

 

  
        7,898,390   
     

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

Auer Growth Fund

Schedule of Investments

August 31, 2014 (Unaudited) - continued

 

     Shares      Fair Value  

Common Stocks — 99.72% - continued

      

Real Estate Investment Trusts — 4.40%

      

Blackstone Mortgage Trust, Inc.

      7,000       $ 203,350   

Chatham Lodging Trust

      9,000         208,080   

Sotherly Hotels, Inc.

      12,000         97,920   

Starwood Property Trust, Inc.

      33,000         787,050   

Strategic Hotels & Resorts, Inc. *

      68,000         807,840   

Walter Investment Management Corp. *

      50,000         1,317,500   

ZAIS Financial Corp.

      11,000         213,180   
     

 

 

  
        3,634,920   
     

 

 

  

Utilities — 0.26%

      

AGL Resources, Inc.

      4,000         213,240   
     

 

 

  

Total Common Stocks
(Cost $75,772,038)

         82,413,646   
     

 

 

  

Money Market Securities — 0.51%

      

Fidelity Institutional Money Market Treasury Portfolio - Class I, 0.01% (b)

      424,735         424,735   
     

 

 

  

Total Money Market Securities
(Cost $424,735)

         424,735   
     

 

 

  

Total Investments – 100.23%
(Cost $76,196,773)

       $ 82,838,381   
     

 

 

  

Liabilities in Excess of Other Assets – (0.23)%

         (190,274 ) 
     

 

 

  

TOTAL NET ASSETS – 100.00%

       $ 82,648,107   
     

 

 

  

 

(a) Master Limited Partnership.
(b) Rate disclosed is the seven day yield as of August 31, 2014.
* Non-income producing security.

ADR — American Depositary Receipt

Tax related - At August 31, 2014, the net unrealized appreciation (depreciation) for tax purposes was as follows:

 

Unrealized appreciation

    $ 7,834,296   

Unrealized depreciation

      (996,931 ) 
  

 

 

  

Net unrealized appreciation

    $ 6,837,365   
  

 

 

  

Aggregate cost of securities for income tax purposes

    $ 76,001,016   
  

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

Auer Growth Fund

Related Footnotes to the Schedule of Investments

August 31, 2014 – (Unaudited)

 

Security Transactions and Related Income – The Auer Growth Fund (“The Fund”) follows industry practice and records security transactions on the trade date. The first in, first out method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Dividend income from real estate investment trusts (“REITs”) and distributions from master limited partnership are recognized on the ex-date. The calendar year-end classification of distributions received from REITs during the fiscal year is reported subsequent to year end; accordingly, the Fund estimates the character of REIT distributions based on the most recent information available. Income or loss from master limited partnerships is reclassified in the components of net assets upon receipt of K-1’s. Discounts and premiums on securities purchased are amortized or accreted using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic and political developments in a specific country or region.

Securities Valuation and Fair Value Measurements - Fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Generally Accepted Accounting Principles in the United States of America (“GAAP”) establishes 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 such as 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.

Various inputs are used in determining the value of the Fund’s investments. These inputs 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, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

  •   Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments 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 level input that is most significant to the fair value measurement in its entirety.

Equity securities, including common stocks, real-estate investment trusts and master limited partnerships, are generally valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser 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 is classified as a Level 1 security. Sometimes, an equity security owned by the Fund will be valued by the pricing service with factors other than market quotations or when the market is considered inactive. When this happens, the security is classified as a Level 2 security. When market quotations are not readily available, when the Adviser 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 Adviser, in conformity with guidelines adopted by and subject to review by the Board of Trustees (the “Board”). These securities will be categorized as Level 3 securities.

Investments in mutual funds, including money market mutual funds, are generally priced at the ending net asset value (“NAV”) provided by the service agent of the funds. These securities will be categorized as Level 1 securities.

 

Auer Growth Fund

Related Footnotes to the Schedule of Investments - continued

August 31, 2014 – (Unaudited)

 

Fixed income securities, when valued using market quotations in an active market, are categorized as Level 1 securities. However, they may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices more accurately reflect the fair value of such securities. A pricing service uses various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the fixed income securities are categorized as Level 2 securities. If the Adviser 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 Adviser, in conformity with guidelines adopted by and subject to review of the Board. These securities are 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.

In accordance with the Trust’s good faith pricing guidelines, the Adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in the Adviser’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before a Fund’s NAV calculation that may affect a security’s value, or the Adviser is aware of any other data that calls into question the reliability of market quotations. Good faith pricing may also be used in instances when the bonds the Fund invests in may default or otherwise cease to have market quotations readily available.

The following is a summary of the inputs used to value the Fund’s investments as of August 31, 2014:

 

     Valuation Inputs  

Assets

    Level 1 - Quoted
Prices in Active
Markets		      Level 2 - Other
Significant
Observable Inputs		      Level 3 -
Significant
Unobservable
Inputs		      Total  

Common Stocks *

    $ 82,413,646       $ —         $ —         $ 82,413,646   

Money Market Securities

      424,735         —           —           424,735   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 82,838,381       $ —         $ —         $ 82,838,381   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

* Refer to Schedule of Investments for industry classifications.

The Fund did not hold any investments at any time during the reporting period in which significant unobservable inputs were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period. During the period ended August 31, 2014, there were no transfers between levels. The Fund recognizes transfers between fair value hierarchy levels at the end of the reporting period.

 

Roosevelt Multi-Cap Fund

Schedule of Investments

August 31, 2014 (Unaudited)

 

     Shares      Fair Value  

Common Stocks — 95.08%

      

Consumer Discretionary — 1.57%

      

Home Depot, Inc./The

      29,302       $ 2,739,737   
     

 

 

  

Consumer Staples — 5.83%

      

Archer-Daniels-Midland Co.

      74,349         3,707,041   

Boston Beer Co., Inc./The - Class A *

      7,694         1,700,220   

CVS Caremark Corp.

      59,584         4,733,949   
     

 

 

  
        10,141,210   
     

 

 

  

Energy — 12.94%

      

EOG Resources, Inc.

      51,600         5,669,808   

Hess Corp.

      55,935         5,655,029   

Kinder Morgan Management LLC *

      44,048         4,304,371   

Plains GP Holdings LP (a)

      60,292         1,860,611   

Weatherford International PLC *

      211,986         5,021,948   
     

 

 

  
        22,511,767   
     

 

 

  

Financials — 17.86%

      

American International Group, Inc.

      93,256         5,227,931   

CIT Group, Inc.

      69,445         3,330,582   

CME Group, Inc.

      46,579         3,565,622   

Discover Financial Services

      124,225         7,747,913   

Morgan Stanley

      137,054         4,702,323   

Wells Fargo & Co.

      126,077         6,485,401   
     

 

 

  
        31,059,772   
     

 

 

  

Health Care — 14.83%

      

Biogen Idec, Inc. *

      21,193         7,270,047   

Celgene Corp. *

      58,618         5,569,882   

Mallinckrodt PLC *

      45,549         3,711,788   

Merck & Co., Inc.

      58,196         3,498,162   

Pfizer, Inc.

      195,386         5,742,395   
     

 

 

  
        25,792,274   
     

 

 

  

Industrials — 10.95%

      

Eaton Corp. PLC

      47,884         3,342,782   

FANUC Corp. ADR

      94,830         2,631,533   

Flowserve Corp.

      45,507         3,453,526   

Kansas City Southern

      39,151         4,516,459   

Raytheon Co.

      26,486         2,551,661   

Timken Co.

      56,465         2,557,300   
     

 

 

  
        19,053,261   
     

 

 

  

Information Technology — 19.10%

      

Apple, Inc.

      56,645         5,806,112   

Cognizant Technology Solutions Corp. - Class A *

      67,984         3,108,908   

Facebook, Inc. - Class A *

      67,293         5,034,862   

Microchip Technology, Inc.

      92,808         4,531,815   

Microsoft Corp.

      102,075         4,637,267   

NXP Semiconductor NV *

      52,782         3,616,623   

Stratasys Ltd. *

      32,412         3,888,144   

Visa, Inc. - Class A

      12,233         2,599,757   
     

 

 

  
        33,223,488   
     

 

 

  

Materials — 8.10%

      

Alcoa, Inc.

      104,497         1,735,695   

 

See accompanying notes which are an integral part of this schedule of investments.

Roosevelt Multi-Cap Fund

Schedule of Investments

August 31, 2014 (Unaudited) - continued

 

     Shares      Fair Value  

Common Stocks — 95.08% - continued

      

Materials — 8.10% - continued

      

Lyondellbasell Industries NV - Class A

      71,991         8,232,171   

Sherwin-Williams Co./The

      8,075         1,761,238   

TimkenSteel Corp.

      49,365         2,358,660   
     

 

 

  
        14,087,764   
     

 

 

  

Real Estate Investment Trust — 0.97%

      

Equity Commonwealth

      62,585         1,682,285   
     

 

 

  

Utilities — 2.93%

      

NextEra Energy, Inc.

      33,256         3,274,053   

Oneok, Inc.

      26,078         1,830,676   
     

 

 

  
        5,104,729   
     

 

 

  

Total Common Stocks
(Cost $127,096,486)

         165,396,287   
     

 

 

  

Exchange-Traded Funds — 1.04%

      

ETRACS Alerian MLP Infrastructure Index ETN

      39,203         1,811,963   
     

 

 

  

Total Exchange-Traded Funds
(Cost $1,724,042)

         1,811,963   
     

 

 

  

Money Market Securities — 3.81%

      

Fidelity Institutional Money Market Portfolio - Institutional Class, 0.09% (b)

      6,621,692         6,621,692   
     

 

 

  

Total Money Market Securities
(Cost $6,621,692)

         6,621,692   
     

 

 

  

Total Investments – 99.93%
(Cost $135,442,220)

         173,829,942   
     

 

 

  

Other Assets in Excess of Liabilities – 0.07%

         121,023   
     

 

 

  

TOTAL NET ASSETS – 100.00%

       $ 173,950,965   
     

 

 

  

 

(a) Master Limited Partnership.
(b) Rate disclosed is the seven day yield as of August 31, 2014.
* Non-income producing security.

ADR — American Depositary Receipt

Tax related - At August 31, 2014, the net unrealized appreciation (depreciation) for tax purposes was as follows:

 

Unrealized appreciation

    $ 38,738,745   

Unrealized depreciation

      (353,880 ) 
  

 

 

  

Net unrealized appreciation

    $ 38,384,865   
  

 

 

  

Aggregate cost of securities for income tax purposes

    $ 135,445,077   
  

 

 

  

 

See accompanying notes which are an integral part of this schedule of investments.

Roosevelt Multi-Cap Fund

Related Notes to the Schedule of Investments

August 31, 2014

(Unaudited)

Security Transactions and Related Income - The Roosevelt Multi-Cap Fund (the “Fund”) follows industry practice and records security transactions on the trade date. The average cost method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized or accreted using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic and political developments in a specific country or region.

Securities Valuation and Fair Value Measurements - Fair value is defined as the price that a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Generally Accepted Accounting Principles in the United States of America (“GAAP”) establishes 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 such as 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.

Various inputs are used in determining the value of the Fund’s investments. These inputs 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, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

  •   Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments 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.

Equity securities, including common stocks, real estate investment trusts, and exchange-traded funds are generally valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when The Roosevelt Investment Group, Inc. (the “Adviser”) 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. Sometimes, an equity security owned by the Fund will be valued by the pricing service or Adviser with factors other than market quotations or when the market is considered inactive. When this happens, the security will be classified as a Level 2 security. When market quotations are not readily available, when the Adviser 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 Adviser, in conformity with guidelines adopted by and subject to review by the Board of Trustees (the “Board”). These securities will be categorized as Level 3 securities.

Investments in mutual funds, including money market securities, are generally priced at the ending net asset value (NAV) provided by the service agent of the fund. These securities will be categorized as Level 1 securities.

Roosevelt Multi-Cap Fund

Related Notes to the Schedule of Investments – continued

August 31, 2014

(Unaudited)

 

Fixed income securities, such as U.S. government securities, when valued using market quotations in an active market, are categorized as Level 1 securities. However, they may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices more accurately reflect the fair value of such securities. A pricing service uses various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the fixed income securities are categorized as Level 2 securities. If the Adviser 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 Adviser, in conformity with guidelines adopted by and subject to review of the Board. These securities are 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 are classified as Level 2 securities.

In accordance with the Trust’s good faith pricing guidelines, the Adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in the Adviser’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Fund’s NAV calculation that may affect a security’s value, or the Adviser is aware of any other data that calls into question the reliability of market quotations. Good faith pricing may also be used in instances when the bonds the Fund invests in may default or otherwise cease to have market quotations readily available.

The following is a summary of the inputs used to value the Fund’s investments as of August 31, 2014:

 

     Valuation Inputs  

Assets

    Level 1 - Quoted
Prices in Active
Markets		      Level 2 - Other
Significant
Observable
Inputs		      Level 3 -
Significant
Unobservable
Inputs		      Total  

Common Stocks *

    $ 165,396,287       $ —         $ —         $ 165,396,287   

Exchange-Traded Funds

      1,811,963         —           —           1,811,963   

Money Market Securities

      6,621,692         —           —           6,621,692   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 173,829,942       $ —         $ —         $ 173,829,942   

 

* Refer to Schedule of Investments for industry classifications.

The Fund did not hold any investments at any time during the reporting period in which significant unobservable inputs were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period. The Fund recognizes transfers between fair value hierarchy levels at the reporting period end. There were no transfers between any Levels for the period ended August 31, 2014.

 

Item 2. Controls and Procedures.

(a) Based on an evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report the Principal Executive Officer and Principal Financial Officer concluded the disclosure controls and procedures are reasonably designed to ensure that the information required in filings on Forms N-Q 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 last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications by the registrant’s principal executive officer and principal financial officer, pursuant to the Sarbanes- Oxley Act of 2002 and required by Rule 30a-2a under the Investment Company Act of 1940 are filed herewith.

SIGNATURES

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

 

Registrant Unified Series Trust
By  

/s/ John C. Swhear

  John C. Swhear, President
Date   10/22/2014

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/ John C. Swhear

  John C. Swhear, President
Date   10/22/2014
By  

/s/ Zachary P. Richmond

  Zachary P. Richmond, Interim Treasurer
Date   10/22/2014