N-CSRS 1 scf-ncsrs.htm SHENKMAN CAPITAL FUNDS SEMIANNUAL REPORT 3-31-20

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 811-07959



Advisors Series Trust
(Exact name of registrant as specified in charter)



615 East Michigan Street
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)



Jeffrey T. Rauman, President/Chief Executive Officer
Advisors Series Trust
c/o U.S. Bancorp Fund Services, LLC
777 East Wisconsin Avenue, 5th Floor
Milwaukee, WI 53202
(Name and address of agent for service)



(626) 914-7363
Registrant's telephone number, including area code



Date of fiscal year end: September 30, 2020



Date of reporting period:  March 31, 2020
Item 1. Reports to Stockholders.




Semi-Annual
  
SHENKMAN CAPITAL FLOATING
Report
  
RATE HIGH INCOME FUND
     
March 31, 2020
  
SHENKMAN CAPITAL SHORT
   
DURATION HIGH INCOME FUND
             
   
Each a series of Advisors Series Trust (the “Trust”)
   
 
        
   
SHENKMAN CAPITAL
  
Institutional
    
   
FLOATING RATE
Class F
Class
    
   
HIGH INCOME FUND
(SFHFX)
(SFHIX)
    
   
 
        
   
SHENKMAN CAPITAL
      
Institutional
   
SHORT DURATION
Class A
Class C
Class F
Class
   
HIGH INCOME FUND
(SCFAX)
(SCFCX)
(SCFFX)
(SCFIX)
                      
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
 
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds (defined herein) or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, 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 Funds or your financial intermediary electronically through the Funds’ website.
   
 
You may elect to receive all future reports in paper free of charge. You can inform the Funds or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held with the fund complex and may apply to all funds held through your financial intermediary.
     
c/o U.S. Bank Global Fund Services
    
P.O. Box 701
    
Milwaukee, Wisconsin 53201-0701
    
1-855-SHENKMAN (1-855-743-6562)
    

SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SHAREHOLDER LETTER
March 31, 2020 (Unaudited)

Dear Shareholder,
 
Fund Overview and Performance
 
The Shenkman Capital Floating Rate High Income Fund (the “Fund”) seeks to generate high current income through active selection and management of investments primarily in the leveraged loan universe and looks to build a portfolio that has the best chance of providing superior risk-adjusted returns. For the fiscal six months ended March 31, 2020 (the “Period”), the S&P/LSTA Leveraged Loan Index (the “Index”) and S&P/LSTA B- and Above Leveraged Loan Index (the “B- and Above Index”) returned -11.54% and -10.73%, respectively, due to the sudden and sharp March selloff associated with global spread of COVID-19. By comparison, the Fund’s Institutional Class shares (SFHIX) had a net return of -10.23% for the Period.
 
The Fund outperformed the Index by +131 basis points and the B- and Above Index by +50 basis points during the Period due to conservative positioning and credit selection as we continued to avoid lower-rated credit with what we believed were less attractive risk/reward profiles. The Fund had under half of the Index’s weight of riskier credit profiles, including CCC-rated/below and second-lien loans, and was underweight transportation and energy, which are key cyclical and commodity-related end markets. From an attribution standpoint, a significant underweight in Oil & Gas and positive selection in Business Equipment & Services were the largest contributors to relative performance. Given its approximately 1% exposure in Oil & Gas, the Fund was not as severely impacted by the oil shock caused by the Saudi Arabia/Russia price war, and Business Equipment & Services remains a diversified group of holdings that performed well. Negative selection in Telecom detracted from relative performance mostly due to one satellite-related name, not an overall sector issue. While the Fund is significantly underweighted in Chemicals & Plastics, negative selection in this more cyclical sector was also a main detractor from relative performance.
 
The Fund remains well-diversified, with investments in over 250 issuers across more than 30 industries.  For liquidity purposes, the Fund targets an allocation of approximately 15% of assets in cash and bonds. As of March 31, 2020, approximately 87% of the Fund’s assets were invested in bank loans, 7% in high-yield bonds and approximately 6% in cash.  Due to paydowns and other factors, cash was elevated at quarter-end, which was reduced during April as we methodically put it to work.
 
Market Commentary
 
During the Period, the extremely adverse market conditions from the spread of the Coronavirus across the globe affected almost all markets negatively and this included the Index and the B- and Above Index referenced above. There were various fundamental and relative value impacts
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March 31, 2020 (Unaudited)

given macro weakness across global equities, fixed income, commodities and other asset classes.  As expected, six-month returns by ratings category exhibited material differentiation with BB-rated, B-rated and CCC- and below rated loans returning -9.64%, -11.89%, and -23.22%, respectively. This was exacerbated by unprecedented actions by the rating agencies. Liquid loans, as measured by the S&P/LSTA LL100 index, significantly outperformed the Index (-7.85% versus -11.54%) as a liquidity premium returned to the market. This only occurred after investor supply and demand came into balance due to extraordinary U.S. government monetary and fiscal policy interventions that supported all markets. The Index’s best performing sectors included more defensive industries such as Cable/Satellite TV, Food Products, and Telecommunications, while the worst performing were primarily Leisure Goods-Activities-Movies, which was affected by the virus and quarantining measures, and the typically risk-off/cyclical sectors, namely Oil & Gas and Nonferrous Metals-Minerals.
 
From a supply perspective, institutional loan primary market issuance of $163 billion was up from $150 billion on a year-over-year basis, according to data from S&P/LCD. This is reflective of the very active end of last year as well as the start to this year, with nearly $45 billion of average monthly launched volume in January and February, exceeding the 2019 monthly average of approximately $26 billion. March had no monthly issuance for the first time since December 2008 given current market conditions, though new issuance has resumed during the second quarter. From a demand perspective, retail funds experienced approximately $23 billion of outflows during the Period, due to a “flight to safety” which moderated toward quarter-end. Collateralized Loan Obligation (CLO) formation was down, with $46 billion of issuance compared to $57 billion on a year-over-year basis, primarily due to quieter March issuance of $3 billion, also due to underlying market conditions.  Demand filled in from new traditional and non-traditional buyers entering the loan market, stabilizing prices and resulting in a rally at the end of March which continued into April. Two other important factors contributed to the bounce-back: an approximate $6 billion paydown of Sprint term loans from the recently completed merger with T-Mobile, and an estimated $3 billion of required quarterly amortization repayments, which both boosted buying power. Therefore, overall total supply and demand came into better balance and April 2020 month-to-date returns are currently over +4% for the Index. According to J.P. Morgan Research, the trailing twelve-month default rate at the end of March was 1.87%, which remains low on a historical basis. Defaults will likely rise in this environment, though credit spreads and yields have risen to much more attractive levels to compensate lenders if this occurs. A massive amount of government stimulus in various forms, which was announced early in this healthcare crisis, should also help many companies through this difficult time and mitigate losses.
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Outlook
 
We are closely monitoring and evaluating the risks associated with the COVID-19 pandemic to proactively manage the portfolio by contacting management teams, confirming liquidity requirements and trading exposures across our global platform. Returns during the Period were solid on a relative basis to the Index, the B- and Above Index and other markets, and the Fund should continue to perform well in an evolving landscape. We continue to believe that the two most important features of the loan market are more relevant now than ever: senior secured collateral for downside hedging and floating base rates in the event of inflation and rising interest rates returning to the market from significant monetary stimulus and deficit spending. Importantly, in addition to attractive all-in credit spreads, given the discount in the market right now with average bid prices in the 90-dollar price context, there remains a total return upside opportunity as well. This could present a compelling entry point or time to add to the market on a patient and methodical basis.
 
We remain constructive on the loan market overall. However, we believe credit selection will continue to drive performance differentiation this year. As volatility increased, there was increased dispersion between better quality and riskier credits. Therefore, we remain cautious as we constantly review the relative value of our positions. Our core philosophy remains the preservation of capital and to strive to deliver or beat market returns throughout the cycle with a lower risk profile. As always, as a conservative asset manager, we intend to remain defensively positioned in our portfolios and will seek to take advantage of market dislocations only in creditworthy, Shenkman-approved issuers in both the primary and secondary markets.
 
Thank you again for your continued support and trust in the Fund.  We look forward to growing with you.
 

Sources
LCD Quarterly Review (LSTA website)
S&P LCD website (www.lcdcomps.com)
JPM Default Monitor
S&P LSTA Leveraged Loan Index Factsheet

DISCLAIMERS
 
•
The Shenkman Group of Companies (the “Shenkman Group”) consists of Shenkman Capital Management, Inc., and its affiliates and subsidiaries, including, without limitation, Shenkman Capital Management Ltd, Romark Credit Advisors LP, and Romark CLO Advisors LLC. The Shenkman Group focuses on the leveraged finance market and is dedicated to providing in-depth, bottom-up, fundamental credit analysis.

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March 31, 2020 (Unaudited)

 
Shenkman Capital Management, Inc. (“Shenkman” or “Shenkman Capital”) is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”). Romark Credit Advisors LP is also registered as an investment adviser with the SEC and Romark CLO Advisors LLC is registered as a relying adviser of Romark Credit Advisors LP (together, “Romark”). Shenkman Capital Management Ltd is a wholly-owned subsidiary of Shenkman Capital Management, Inc. and is authorized and regulated by the U.K. Financial Conduct Authority. Such registrations do not imply any specific skill or training. EEA Investors: This material is provided to you because you have been classified as a professional client in accordance with the Markets in Financial Instruments Directive (Directive 2014/65/EU) (known as “MiFID II”) or as otherwise defined under applicable local regulations. If you are unsure about your classification or believe that you may be a retail client under these rules, please contact the Shenkman Group and disregard this information.
   
•
Past performance is not a guarantee of future results.
   
•
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
   
•
Mutual fund investing involves risk. Principal loss is possible. There can be no assurance that the Fund will achieve its stated objective. In addition to the normal risks associated with investing, bonds and bank loans, and the funds that invest in them are subject to interest rate risk and can be expected to decline in value as interest rates rise. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.
   
•
Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Please refer to the Schedule of Investments for a complete list of fund holdings.
   
•
Must be preceded or accompanied by a prospectus.
   
•
Copyright 2020, S&P Global Market Intelligence and its affiliates as applicable. Reproduction of any information, data or materials, including ratings (“Content”) in any form is prohibited except with the prior written permission of the relevant third party.  Such party, its affiliates and

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March 31, 2020 (Unaudited)

 
suppliers (“Content Providers”) do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such Content. In no event shall Content Providers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of the Content. A reference to a particular investment or security, a rating or any observation concerning an investment that is part of the Content is not a recommendation to buy, sell or hold such investment or security, does not address the suitability of an investment or security and should not be relied on as investment advice. Credit ratings are statements of opinions and are not statements of fact.
   
•
References to indices are for information purposes only. The Shenkman Group believes that any indices discussed herein are broad market indices and are indicative of the type of investments that the Shenkman Group may purchase but may contain different securities than those held in the Shenkman Group portfolios managed pursuant to the strategies described herein. The indices have not been selected to represent an appropriate benchmark. The strategies referred to herein are not designed to mimic the investments on which any index is based. The indices are unmanaged and not available for direct investment and do not reflect deductions for fees or expenses.
   
•
The S&P/LSTA Leveraged Loan Index is a market value-weighted index designed to measure the performance of the U.S. leveraged loan market based upon weightings, spreads and interest payments.
   
•
The S&P/LSTA U.S. B- Rating & Above Loan Index tracks the current outstanding balance and spread over LIBOR for fully funded institutional term loans that are rated B- or above and syndicated to U.S. loan investors. The S&P/LSTA U.S. B- Rating & Above Loan Index is unmanaged, not available for direct investment and does not reflect deductions for fees or expenses.
   
•
The S&P/LSTA U.S. Leveraged Loan 100 Index measures the performance of 100 large loan facilities meeting specific inclusion criteria.
   
•
You cannot invest directly in an index.
   
•
Basis points (bps) are equivalent to one-one hundredths of a percentage point.
   
•
Credit quality weights by rating are derived from the highest bond rating as determined by S&P, Moody’s or Fitch. Bond ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as Standard & Poor’s or Moody’s and Fitch. These firms evaluate a bond issuer’s financial strength, or its ability

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March 31, 2020 (Unaudited)

 
to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. In limited situations when none of the three rating agencies have issued a formal rating, the Advisor will classify the security as nonrated.
   
•
Diversification does not assure a profit, nor does it protect against a loss in a declining market.
   
•
Spread is the percentage point difference between yields of various classes of bonds compared to treasury bonds.
   
•
Yield refers to the earnings generated and realized on an investment over a particular period of time. It is expressed as a percentage based on the invested amount, current market value, or face value of the security. It includes the interest earned or dividends received from holding a particular security. Depending on the valuation (fixed vs. fluctuating) of the security, yields may be classified as known or anticipated.
   
•
The Shenkman Capital Floating Rate High Income Fund is distributed by Quasar Distributors, LLC, which is not affiliated with Shenkman Capital Management, Inc.

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SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SHAREHOLDER LETTER
March 31, 2020 (Unaudited)

Dear Shareholder,
 
During the fiscal six months ended March 31, 2020 (the “Period”), the Shenkman Capital Short Duration High Income Fund (the “Fund”) continued to seek a high level of current income by focusing on investments within the non-investment grade universe believed to be high-quality yet short duration.  The Fund’s Institutional Class shares (SCFIX) returned -4.18% for the Period and ended the Period with a duration-to-worst of 1.89 years and average final maturity of 3.56 years. The Fund’s Class A shares returned -4.32% (without sales load) and -7.18% (with maximum sales load imposed on purchases of 3.00%), and the Class F shares returned -4.22%. Additionally, the Class C shares returned -4.69% (without sales load) and -5.63% (with maximum deferred sales load of 1.00%). The Fund’s benchmark, the ICE BofA 0-2 Year Duration BB-B U.S. HY Constrained Index (H42C), returned -6.20% for the Period, while the ICE BofA 0-3 Year U.S. Treasury Index (G1QA) returned +2.79%.
 
The Fund’s outperformance of the benchmark was largely attributable to its security selection, more defensive sector exposures, and maturity positioning. The Fund’s sector positioning is largely a function of its focus on bottom-up, individual security selection and fundamental analysis, as opposed to top-down, industry-driven allocations. Healthcare remained the Fund’s largest exposure at 16.15% of the portfolio, followed by the Telecom:Wireline/Wireless and Media-Cable sectors occupying the second and third largest holdings at 9.49% and 7.53%, respectively, all of which were among the stronger performing sectors given their defensive and more resilient fundamental drivers and business models. The Fund’s zero exposure to the Oil & Gas sector, and positive selection and overweight in Healthcare, were the largest contributors to relative performance as oil prices collapsed and most subsegments of the Healthcare sector proving more insulated from the impact of the pandemic. Negative selection in Leisure/Entertainment, as well as negative selection and underweight in Utilities: Gas, were the largest detractors from relative performance, as Leisure/Entertainment issuers were more directly hurt by the COVID-19 pandemic and quarantine effects, while Utilities: Gas performance was not spared from the impact of record low commodity prices. The Fund’s exposure to bank loans was a modest contributor to relative performance as bank loans outperformed benchmark returns but lagged the Fund’s bond performance.  During the Period, the Fund’s bank loan weighting decreased from 9.93% to 8.54%. As of March 31, 2020, the Fund’s average price was $96.38, with a current yield of 6.01%, yield-to-maturity of 7.15%, and a yield-to-worst of 6.73%. The SEC 30-Day Subsidized and Unsubsidized Yields for the Institutional share class were 5.69% and 5.64%, respectively. As we believe diversification remains a key factor in helping to mitigate risk, the portfolio was well-diversified, with investments in 171 issuers across 33 industries as of March 31, 2020.
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March 31, 2020 (Unaudited)

Market Commentary
 
The broader high yield market, as measured by the ICE BofA U.S. High Yield Index (H0A0), declined 10.85% during the period and was fueled by the dramatic decline in prices in March 2020 as the unknown ramifications of the COVID-19 pandemic and related policies drove the H0A0 to end the period with its second worst quarterly return on record. Despite the dismal results, the Index actually posted a dramatic rally from its lows on March 23, when its year-to-date return was -20.6%. Additionally, unlike the 2008 Global Financial Crisis, new issuance returned, and companies were accessing capital markets by month-end – a very positive sign. On top of these developments, a price war developed in oil resulting in a 53% drop in the price per barrel of oil. The Oil & Gas and Utilities: Gas sectors were the worst performing during the month. However, away from these sectors, among the other weakest were not the typical “deep cyclicals” that often get hurt in a recessionary environment but were instead those that were more directly hurt by the COVID-19 pandemic and quarantines such as Leisure/Entertainment and Hotels. Sectors such as Media-Cable, Technology and Telecom:Wireline/Wireless were among the best performing. Not surprisingly, the better-quality portions of the market outperformed in the quarter with BB-rated securities outperforming the balance of the market and CCCs posting the weakest returns of the rating categories. The BB market outperformed, though with a negative result, even with over $130 billion of investment grade debt securities being downgraded to the high yield bond market. BB-rated credits returned -8.08% compared to B-rated and triple-C rated credits returning -11.65% and -20.28%, respectively. The new issue market in high yield bonds was particularly active with $151.1 billion in supply over the period as refinancing continued to be the largest driver with March noticeably being the weakest volume month of the period given the extreme market volatility, notwithstanding the late-month reopening. The U.S. high-yield default rate, according to JP Morgan Research, increased to a three-year high of 3.54%, with the Energy sector accounting for a disproportionate 45% of total bond default volume over the last 12 months.
 
Market Outlook
 
The ravages of the COVID-19 pandemic are still unfolding. As a result, the ultimate economic consequences may take years to be fully tabulated. The most dire outcome would be a protracted contraction in Gross Domestic Product (GDP) which evolves into a depression with a period of high unemployment, a rash of business failures, and a permanent shift in consumer behavior. At this stage of the pandemic, it seems premature to forecast the severity or duration of a global recession. Guesstimates only create greater uncertainty and volatility. Many economists and
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March 31, 2020 (Unaudited)

prognosticators are debating the shape of the economic downturn (i.e., V, U, L, or W). Second quarter outlook appears grim with a sharp decline in profits, record-shattering unemployment, and a deluge of downgrades. Even with $6.2 trillion in U.S. monetary and fiscal relief (savior money), the small businesses carnage could be staggering. Some estimates show that fully replacing the revenues of U.S. small businesses would cost $1.5 trillion. A V-shaped recovery appears too optimistic, given the sudden closure of the U.S.  economy. We anticipate a pro-longed U-shaped rebound, where the economy may not recover to pre-pandemic levels for at least several quarters. High-yield spreads are currently in excess of 900 basis points. This signal has historically led to multiple years of strong returns for high-yield and leveraged loans. We expect this rebound will occur again, but the markets may remain volatile. We anticipate those investors who can navigate the massive structural changes to certain industries and credits due to this pandemic will be able to capture these excess returns. We do not believe this will be a beta trade; rather, it will be one led by intensive bottom-up credit research. Financial markets are a barometer of events and emotions. Equity and credit market returns should precede both economic data and the infection rate curve. With the length of stay-at-home orders and the timeline of the recovery still unknown, the American economic machine cannot fully restart. Hopefully, the barrage of monetary and fiscal programs will be sufficient in filling the gap between a historic national disaster and a return to robust economic growth.
 
Thank you again for your continued support and trust in the Fund. We look forward to growing with you.
 

DISCLAIMERS
 
•
The Shenkman Group of Companies (the “Shenkman Group”) consists of Shenkman Capital Management, Inc., and its affiliates and subsidiaries, including, without limitation, Shenkman Capital Management Ltd, Romark Credit Advisors LP, and Romark CLO Advisors LLC. The Shenkman Group focuses on the leveraged finance market and is dedicated to providing in-depth, bottom-up, fundamental credit analysis.
   
 
Shenkman Capital Management, Inc. (“Shenkman” or “Shenkman Capital”) is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”). Romark Credit Advisors LP is also registered as an investment adviser with the SEC and Romark CLO Advisors LLC is registered as a relying adviser of Romark Credit Advisors LP (together, “Romark”). Shenkman Capital Management Ltd is a wholly-owned subsidiary of Shenkman Capital Management, Inc. and is authorized and regulated by the U.K. Financial Conduct Authority. Such

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SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

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March 31, 2020 (Unaudited)

 
registrations do not imply any specific skill or training. EEA Investors: This material is provided to you because you have been classified as a professional client in accordance with the Markets in Financial Instruments Directive (Directive 2014/65/EU) (known as “MiFID II”) or as otherwise defined under applicable local regulations. If you are unsure about your classification or believe that you may be a retail client under these rules, please contact the Shenkman Group and disregard this information.
   
•
Past performance is not a guarantee of future results.
   
•
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
   
•
Mutual fund investing involves risk. Principal loss is possible. There can be no assurance that the Fund will achieve its stated objective. In addition to the normal risks associated with investing, bonds and bank loans, and the funds that invest in them are subject to interest rate risk and can be expected to decline in value as interest rates rise. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.
   
•
Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Please refer to the Schedule of Investments for a complete list of fund holdings.
   
•
Must be preceded or accompanied by a prospectus.
   
•
Any information in these materials from ICE Data Indices, LLC (“ICE BofA”) was used with permission. ICE BofA PERMITS USE OF THE ICE BofA INDICES AND RELATED DATA ON AN “AS IS” BASIS, MAKES NO WARRANTIES REGARDING SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BofA INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THE USE OF THE FOREGOING, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND THE SHENKMAN GROUP, OR ANY OF ITS PRODUCTS OR SERVICES.

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•
References to indices are for information purposes only. The Shenkman Group believes that any indices discussed herein are broad market indices and are indicative of the type of investments that the Shenkman Group may purchase but may contain different securities than those held in the Shenkman Group portfolios managed pursuant to the strategies described herein. The indices have not been selected to represent an appropriate benchmark. The strategies referred to herein are not designed to mimic the investments on which any index is based. The indices are unmanaged and not available for direct investment and do not reflect deductions for fees or expenses.
   
•
The ICE BofA 0-2 Year Duration BB-B U.S. High Yield Constrained Index (H42C) contains all securities in The ICE BofA U.S. High Yield Index rated BB1 through B3 and with a duration-to-worst less than two years, but caps issuer exposure at 2%.
   
•
The ICE BofA U.S. High Yield Index (H0A0) tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market.
   
•
The ICE BofA U.S. Treasuries 0-3 year Index (G1QA) is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of less than three years.
   
•
You cannot invest directly in an index.
   
•
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.
   
•
Duration-to-worst is the duration of a bond computed using either the final maturity date, or a call date within the bond’s call schedule, whichever would result in the lowest yield to the investor.
   
•
Current Yield is the annual income (interest or dividends) divided by the current price of the security. This measure looks at the current price of a bond instead of its face value and represents the return an investor would expect if he or she purchased the bond and held it for a year. This measure is not an accurate reflection of the actual return that an investor will receive in all cases because bond and stock prices are constantly changing due to market factors.
   
•
Yield-to-Maturity (YTM) is the rate of return anticipated on a bond if held until the end of its lifetime. YTM is considered a long-term bond yield expressed as an annual rate. The YTM calculation takes into account the bond’s current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupon payments are reinvested at the same rate as the bond’s current yield. YTM is a complex but accurate

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March 31, 2020 (Unaudited)

 
calculation of a bond’s return that helps investors compare bonds with different maturities and coupons.
   
•
Yield-to-worst is the lowest potential yield that can be received on a bond without the issuer actually defaulting.
   
•
30-Day SEC Yield (Subsidized/Unsubsidized): Represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund’s share price at the end of the 30-day period.
   
•
Diversification does not assure a profit, nor does it protect against a loss in a declining market.
   
•
Credit quality weights by rating are derived from the highest bond rating as determined by S&P, Moody’s or Fitch. Bond ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as Standard & Poor’s or Moody’s and Fitch. These firms evaluate a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. In limited situations when none of the three rating agencies have issued a formal rating, the Advisor will classify the security as nonrated.
   
•
Spread is the percentage point difference between yields of various classes of bonds compared to treasury bonds.
   
•
Basis points (bps) are equivalent to one-one hundredths of a percentage point.
   
•
Beta measures the sensitivity of rates of return on a fund to general market moments.
   
•
The Shenkman Capital Short Duration High Income Fund is distributed by Quasar Distributors, LLC., which is not affiliated with Shenkman Capital Management, Inc.

12
SHENKMAN CAPITAL FUNDS

EXPENSE EXAMPLE
March 31, 2020 (Unaudited)

As a shareholder of a fund, you incur two types of costs: (1) transaction costs including sales charges (loads), if applicable; redemption fees, if applicable; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1 fees); and other fund expenses. This Example is 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.
 
The Example is based on an investment of $1,000 invested at the beginning of the period indicated and held for the entire period from October 1, 2019 to March 31, 2020.
 
Actual Expenses
 
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns 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 row entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.  There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts (generally, a $15 fee is charged to the account annually) that would increase the amount of expenses paid on your account.  The example below does not include portfolio trading commissions and related expenses, and other extraordinary expenses as determined under generally accepted accounting principles.
 
Hypothetical Example for Comparison Purposes
 
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.  As noted above, there are some account fees that are charged to certain types of accounts that would increase the amount of expense paid on your account.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only and will not help you determine the
13
SHENKMAN CAPITAL FUNDS

EXPENSE EXAMPLE – Continued
March 31, 2020 (Unaudited)

relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
 
 
Beginning
Ending
Expenses Paid
 
Account Value
Account Value
During Period(1)
Shenkman Capital Floating Rate High Income Fund
Actual
      
   Class F
$1,000.00
$   898.70
$2.61
   Institutional Class
$1,000.00
$   897.70
$2.56
       
Hypothetical (5% return
      
  before expenses)
      
   Class F
$1,000.00
$1,022.25
$2.78
   Institutional Class
$1,000.00
$1,022.30
$2.73

(1)
Shenkman Capital Floating Rate High Income Fund – Class F and Institutional Class expenses are equal to the Fund shares’ annualized expense ratio of 0.55% and 0.54%, respectively, multiplied by the average account value over the period, multiplied by 183 days/366 days (to reflect the six-month period of operation). The Fund’s ending account values in the table are based on its six-month total return of -10.13% for Class F and -10.23% for the Institutional Class as of March 31, 2020.

 
Beginning
Ending
Expenses Paid
 
Account Value
Account Value
During Period(2)
Shenkman Capital Short Duration High Income Fund
Actual
      
   Class A
$1,000.00
$   956.80
$4.70
   Class C
$1,000.00
$   953.10
$8.30
   Class F
$1,000.00
$   957.80
$3.62
   Institutional Class
$1,000.00
$   958.20
$3.18
       
Hypothetical (5% return
      
  before expenses)
      
   Class A
$1,000.00
$1,020.20
$4.85
   Class C
$1,000.00
$1,016.50
$8.57
   Class F
$1,000.00
$1,021.30
$3.74
   Institutional Class
$1,000.00
$1,021.75
$3.29

(2)
Shenkman Capital Short Duration High Income Fund – Class A, Class C, Class F, and Institutional Class expenses are equal to the Fund shares’ annualized expense ratio of 0.96%, 1.70%, 0.74% and 0.65%, respectively, multiplied by the average account value over the period, multiplied by 183 days/366 days (to reflect the six-month period of operation). The Fund’s ending account values in the table are based on its six-month total return of -4.32% for Class A, -4.69% for Class C, -4.22% for Class F, and -4.18% for the Institutional Class as of March 31, 2020.
14
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

PORTFOLIO ALLOCATION
March 31, 2020 (Unaudited)



   
% Net
  
TOP TEN HOLDINGS
  
Assets
  
Ancestry.com Operations, Inc., Senior Secured First Lien Term Loan
      
  5.25% (1 Month LIBOR USD + 4.25%), 8/27/2026
    
0.96
%
William Morris Endeavor Entertainment, LLC, Senior Secured First
        
  Lien Term Loan 3.74% (1 Month LIBOR USD + 2.75%), 5/16/2025,
        
  Senior Secured First Lien Term Loan
        
  4.37% (3 Month LIBOR USD + 2.75%), 5/16/2025
    
0.93
%
Kronos Acquisition Holdings, Inc., Senior Secured First Lien Term Loan
        
  5.00% (1 Month LIBOR USD + 4.00%, 1.000% Floor), 5/15/2023
    
0.84
%
ABG Intermediate Holdings 2, LLC, Senior Secured First Lien Term Loan
        
  4.95% (3 Month LIBOR USD + 3.50%, 1.000% Floor), 9/27/2024
    
0.78
%
Granite Acquisition, Inc., Senior Secured First Lien Term Loan
        
  4.95% (3 Month LIBOR USD + 3.50%, 1.000% Floor), 12/17/2021
    
0.73
%
DISH DBS Corp. 5.875%, 7/15/2022
    
0.73
%
IRI Holdings, Inc., Senior Secured First Lien Term Loan
        
  6.113% (3 Month LIBOR USD + 4.50%), 12/1/2025
    
0.71
%
UFC Holdings, LLC, Senior Secured First Lien Term Loan
        
  4.25% (1 Month LIBOR USD + 3.25%, 1.000% Floor), 4/29/2026
    
0.69
%
AlixPartners, LLP, Senior Secured First Lien Term Loan
        
  3.489% (1 Month LIBOR USD + 2.50%, 1.000% Floor), 4/4/2024
    
0.66
%
VFH Parent, LLC, Senior Secured First Lien Term Loan
        
  4.005% (1 Month LIBOR USD + 3.00%), 3/2/2026
    
0.66
%

The portfolio’s holdings and allocations are subject to change.  The top ten holdings presented exclude the money market fund. The percentages are of total net assets as of March 31, 2020.
15
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29%
            
             
Aerospace & Defense – 0.59%
            
TransDigm, Inc.
            
  Senior Secured First Lien Term Loan
            
    3.239% (1 Month LIBOR USD + 2.25%),
            
    08/22/2024 (a)
  
$
538,559
    
$
505,706
  
  Senior Secured First Lien Term Loan
                
    3.239% (1 Month LIBOR USD + 2.25%),
                
    12/09/2025 (a)
    
700,681
      
645,794
  
             
1,151,500
  
                 
Automotive – 2.79%
                
Adient U.S., LLC
                
  Senior Secured First Lien Term Loan
                
    5.45% (3 Month LIBOR USD + 4.00%),
                
    05/06/2024 (a)
    
542,025
      
479,692
  
  Senior Secured First Lien Term Loan
                
    5.742% (3 Month LIBOR USD + 4.00%),
                
    05/06/2024 (a)
    
182,500
      
161,513
  
American Axle & Manufacturing, Inc.,
                
  Senior Secured First Lien Term Loan
                
  3.20% (1 Month LIBOR USD + 2.25%,
                
  0.750% Floor), 04/08/2024 (a)
    
730,297
      
617,101
  
Belron Finance U.S., LLC, Senior Secured
                
  First Lien Term Loan 3.992%
                
  (3 Month LIBOR USD + 2.25%),
                
  11/07/2024 (a)
    
606,050
      
575,748
  
Clarios Global, L.P., Senior Secured First Lien
                
  Term Loan 4.441% (1 Month
                
  LIBOR USD + 3.50%), 04/30/2026 (a)
    
756,379
      
695,869
  
CWGS Group, LLC
                
  Senior Secured First Lien Term Loan
                
    3.739% (1 Month LIBOR USD + 2.75%,
                
    0.750% Floor), 11/08/2023 (a)
    
1,637
      
1,102
  
  Senior Secured First Lien Term Loan
                
    3.766% (1 Month LIBOR USD + 2.75%,
                
    0.750% Floor), 11/08/2023 (a)
    
723,910
      
487,191
  
KAR Auction Services, Inc., Senior Secured
                
  First Lien Term Loan 3.188% (1 Month
                
  LIBOR USD + 2.25%), 09/19/2026 (a)
    
669,795
      
622,910
  

The accompanying notes are an integral part of these financial statements.
16
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Automotive – 2.79% – Continued
            
Navistar, Inc., Senior Secured First Lien
            
  Term Loan 4.28% (1 Month LIBOR
            
  USD + 3.50%), 11/06/2024 (a)
  
$
1,237,579
    
$
1,087,008
  
Wand NewCo 3, Inc.
                
  Senior Secured First Lien Term Loan
                
    4.072% (3 Month LIBOR USD + 3.00%),
                
    02/05/2026 (a)
    
690,056
      
624,500
  
  Senior Secured First Lien Term Loan
                
    4.072% (6 Month LIBOR USD + 3.00%),
                
    02/05/2026 (a)
    
108,917
      
98,570
  
             
5,451,204
  
                 
Beverage & Food – 1.49%
                
Dole Food Co., Inc., Senior Secured
                
  First Lien Term Loan 3.75%
                
  (1 Month LIBOR USD + 2.75%,
                
  1.000% Floor), 04/08/2024 (a)
    
745,000
      
677,950
  
Froneri U.S., Inc., Senior Secured First Lien
                
  Term Loan 3.239% (1 Month LIBOR
                
  USD + 2.25%), 01/29/2027 (a)
    
650,000
      
624,000
  
H-Food Holdings, LLC
                
  Senior Secured First Lien Term Loan
                
    4.677% (1 Month LIBOR USD + 3.6875%),
                
    05/23/2025 (a)
    
894,075
      
758,475
  
  Senior Secured First Lien Term Loan
                
    4.989% (1 Month LIBOR USD + 4.00%),
                
    05/23/2025 (a)
    
123,438
      
106,650
  
Sunshine Investments B.V., Senior Secured
                
  First Lien Term Loan 4.954% (3 Month
                
  LIBOR USD + 3.25%), 03/28/2025 (a)
    
240,000
      
222,000
  
Tacala, LLC, Senior Secured First Lien Term
                
  Loan 4.489% (1 Month LIBOR
                
  USD + 3.50%), 02/05/2027 (a)
    
650,527
      
529,096
  
             
2,918,171
  

The accompanying notes are an integral part of these financial statements.
17
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Building Materials – 2.06%
            
CPG International, Inc., Senior
            
  Secured First Lien Term Loan 5.933%
            
  (6 Month LIBOR USD + 3.75%,
            
  1.000% Floor), 05/03/2024 (a)
  
$
725,882
    
$
615,188
  
Henry Co., LLC, Senior Secured First Lien Term
                
  Loan 5.00% (1 Month LIBOR USD + 4.00%,
                
  1.000% Floor), 10/05/2023 (a)
    
776,932
      
665,252
  
Pisces Midco, Inc., Senior Secured First Lien
                
  Term Loan 4.561% (1 Month LIBOR
                
  USD + 3.75%), 04/12/2025 (a)
    
943,754
      
809,269
  
QUIKRETE Holdings, Inc., Senior Secured
                
  First Lien Term Loan 3.489% (1 Month
                
  LIBOR USD + 2.50%), 02/01/2027 (a)
    
813,875
      
752,834
  
SRS Distribution, Inc.
                
  Senior Secured First Lien Term Loan
                
    3.989% (1 Month LIBOR USD + 3.00%),
                
    05/23/2025 (a)
    
1,938
      
1,667
  
  Senior Secured First Lien Term Loan
                
    4.072% (6 Month LIBOR USD + 3.00%),
                
    05/23/2025 (a)
    
761,684
      
655,048
  
VC GB Holdings, Inc., Senior Secured First
                
  Lien Term Loan 4.45% (3 Month LIBOR
                
  USD + 3.00%, 1.000% Floor), 02/28/2024 (a)
    
614,880
      
519,574
  
             
4,018,832
  
                 
Chemicals – 2.75%
                
Allnex S.A.R.L., Senior Secured First Lien Term
                
  Loan 4.863% (3 Month LIBOR USD + 3.25%,
                
  0.750% Floor), 09/13/2023 (a)
    
679,048
      
536,448
  
Allnex U.S.A., Inc., Senior Secured First
                
  Lien Term Loan 4.863% (3 Month LIBOR
                
  USD + 3.25%, 0.750% Floor), 09/13/2023 (a)
    
511,610
      
404,172
  
Colouroz Midco
                
  Senior Secured First Lien Term Loan
                
    4.801% (3 Month LIBOR USD + 3.00%,
                
    1.000% Floor), 09/07/2021 (a)
    
871,088
      
611,008
  
  Senior Secured First Lien Term Loan
                
    4.801% (3 Month LIBOR USD + 3.00%,
                
    1.000% Floor), 09/07/2021 (a)
    
144,001
      
101,007
  

The accompanying notes are an integral part of these financial statements.
18
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Chemicals – 2.75% – Continued
            
Consolidated Energy Finance S.A., Senior
            
  Secured First Lien Term Loan 3.205%
            
  (1 Month LIBOR USD + 2.50%),
            
  05/07/2025 (a)
  
$
496,150
    
$
359,709
  
H.B. Fuller Co., Senior Secured First Lien
                
  Term Loan 2.773% (1 Month LIBOR
                
  USD + 2.00%), 10/21/2024 (a)
    
556,794
      
490,330
  
PMHC II, Inc., Senior Secured First Lien Term
                
  Loan 4.50% (12 Month LIBOR USD + 3.50%,
                
  1.000% Floor), 03/31/2025 (a)
    
470,400
      
282,240
  
Polar U.S. Borrower, LLC
                
  Senior Secured First Lien Term Loan
                
    5.739% (1 Month LIBOR USD + 4.75%),
                
   10/15/2025 (a)
    
13,014
      
11,485
  
  Senior Secured First Lien Term Loan
                
    6.624% (3 Month LIBOR USD + 4.75%),
                
    10/15/2025 (a)
    
737,485
      
650,830
  
Road Infrastructure Investment, LLC
                
  (Ennis-Flint), Senior Secured First Lien
                
  Term Loan 4.50% (1 Month LIBOR
                
  USD + 3.50%, 1.000% Floor), 06/13/2023 (a)
    
784,834
      
580,777
  
Solenis International, L.P.
                
  Senior Secured First Lien Term Loan
                
    5.603% (1 Month LIBOR USD + 4.00%),
                
    06/26/2025 (a)
    
1,250
      
1,008
  
  Senior Secured First Lien Term Loan
                
    5.613% (3 Month LIBOR USD + 4.00%),
                
    06/26/2025 (a)
    
615,933
      
496,855
  
  Senior Secured Second Lien Term Loan
                
    10.113% (3 Month LIBOR USD + 8.50%),
                
    06/26/2026 (a)
    
215,000
      
149,425
  
Tronox Finance, LLC
                
  Senior Secured First Lien Term Loan
                
    3.739% (1 Month LIBOR USD + 2.75%),
                
    09/23/2024 (a)
    
459,772
      
409,197
  
  Senior Secured First Lien Term Loan
                
    4.20% (3 Month LIBOR USD + 2.75%),
                
    09/23/2024 (a)
    
324,419
      
288,733
  
             
5,373,224
  

The accompanying notes are an integral part of these financial statements.
19
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Consumer Products – 2.07%
            
Alphabet Holding Co., Inc.
            
  Senior Secured First Lien Term Loan
            
    4.489% (1 Month LIBOR USD + 3.50%),
            
    09/26/2024 (a)
  
$
1,284,538
    
$
1,038,337
  
  Senior Secured Second Lien Term Loan
                
    8.739% (1 Month LIBOR USD + 7.75%),
                
    09/26/2025 (a)
    
455,000
      
338,065
  
Champ Acquisition Corp., Senior Secured
                
  First Lien Term Loan 6.572% (6 Month
                
  LIBOR USD + 5.50%), 12/17/2025 (a)
    
287,994
      
224,635
  
Kontoor Brands, Inc., Senior Secured First
                
  Lien Term Loan 5.174% (1 Month LIBOR
                
  USD + 4.25%), 05/15/2026 (a)
    
315,917
      
285,905
  
Kronos Acquisition Holdings, Inc., Senior
                
  Secured First Lien Term Loan 5.00%
                
  (1 Month LIBOR USD + 4.00%,
                
  1.000% Floor), 05/15/2023 (a)
    
1,804,853
      
1,632,643
  
SIWF Holdings, Inc., Senior Secured First
                
  Lien Term Loan 5.322% (6 Month LIBOR
                
  USD + 4.25%), 06/13/2025 (a)
    
569,850
      
512,865
  
             
4,032,450
  
                 
Environmental – 1.19%
                
Granite Acquisition, Inc.
                
  Senior Secured First Lien Term Loan
                
    4.95% (3 Month LIBOR USD + 3.50%,
                
    1.000% Floor), 12/17/2021 (a)
    
1,473,105
      
1,427,070
  
  Senior Secured Second Lien Term Loan
                
    8.70% (3 Month LIBOR USD + 7.25%,
                
    1.000% Floor), 12/19/2022 (a)
    
356,709
      
324,605
  
Strategic Materials Holdings Corp., Senior
                
  Secured First Lien Term Loan 5.513%
                
  (3 Month LIBOR USD + 3.75%,
                
  1.000% Floor), 11/01/2024 (a)
    
928,625
      
580,391
  
             
2,332,066
  

The accompanying notes are an integral part of these financial statements.
20
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Finance – Insurance – 1.48%
            
Acrisure, LLC, Senior Secured First Lien
            
  Term Loan 5.207% (3 Month LIBOR
            
  USD + 3.50%), 02/16/2027 (a)
  
$
876,046
    
$
784,061
  
AssuredPartners, Inc., Senior Secured First
                
  Lien Term Loan 4.489% (1 Month LIBOR
                
  USD + 3.50%), 02/12/2027 (a)
    
1,239,367
      
1,093,741
  
HUB International, Ltd.
                
  Senior Secured First Lien Term Loan
                
    4.387% (2 Month LIBOR USD + 2.75%),
                
    04/25/2025 (a)
    
32,790
      
30,967
  
  Senior Secured First Lien Term Loan
                
    4.551% (2 Month LIBOR USD + 2.75%),
                
    04/25/2025 (a)
    
691,185
      
651,017
  
  Senior Secured First Lien Term Loan
                
    5.692% (3 Month LIBOR USD + 4.00%,
                
    1.000% Floor), 04/25/2025 (a)
    
350,000
      
333,375
  
             
2,893,161
  
                 
Finance – Services – 3.21%
                
AlixPartners, LLP, Senior Secured First Lien Term
                
  Loan 3.489% (1 Month LIBOR USD + 2.50%,
                
  1.000% Floor), 04/04/2024 (a)
    
1,344,433
      
1,294,016
  
Avolon TLB Borrower 1 U.S., LLC, Senior
                
  Secured First Lien Term Loan 2.523%
                
  (1 Month LIBOR USD + 1.75%,
                
  0.750% Floor), 01/15/2025 (a)
    
147,341
      
132,853
  
Deerfield Holdings Corp., Senior Secured First
                
  Lien Term Loan 4.25% (1 Month LIBOR
                
  USD + 3.25%, 1.000% Floor), 02/13/2025 (a)
    
863,114
      
852,325
  
EVO Payments International, LLC, Senior
                
  Secured First Lien Term Loan 4.20% (1 Month
                
   LIBOR USD + 3.25%), 12/22/2023 (a)
    
1,186,076
      
1,018,549
  
Focus Financial Partners, LLC, Senior Secured
                
  First Lien Term Loan 2.989% (1 Month
                
  LIBOR USD + 2.00%), 07/03/2024 (a)
    
621,815
      
567,922
  
NAB Holdings, LLC, Senior Secured First Lien
                
  Term Loan 4.45% (3 Month LIBOR
                
  USD + 3.00%, 1.000% Floor), 07/01/2024 (a)
    
487,550
      
390,040
  

The accompanying notes are an integral part of these financial statements.
21
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Finance – Services – 3.21% – Continued
            
PHH Mortgage Corp., Senior Secured
            
  First Lien Term Loan 7.00% (1 Month
            
  LIBOR USD + 6.00%, 1.000% Floor),
            
  05/16/2022 (a)
  
$
334,106
    
$
300,696
  
Starwood Property Trust, Inc., Senior Secured
                
  First Lien Term Loan 3.489% (1 Month
                
  LIBOR USD + 2.50%), 07/27/2026 (a)
    
472,625
      
418,273
  
VFH Parent, LLC, Senior Secured First Lien
                
  Term Loan 4.005% (1 Month LIBOR
                
  USD + 3.00%), 03/02/2026 (a)
    
1,393,797
      
1,288,392
  
             
6,263,066
  
                 
Food & Drug Retailers – 0.84%
                
BJ’s Wholesale Club, Inc., Senior Secured
                
  First Lien Term Loan 3.047% (1 Month
                
  LIBOR USD + 2.25%), 02/02/2024 (a)
    
1,059,179
      
1,022,770
  
Golden Nugget, Inc.
                
  Senior Secured First Lien Term Loan
                
    3.695% (3 Month LIBOR USD + 2.50%,
                
    0.750% Floor), 10/04/2023 (a)
    
212,485
      
166,801
  
  Senior Secured First Lien Term Loan
                
    4.103% (1 Month LIBOR USD + 2.50%,
                
    0.750% Floor), 10/04/2023 (a)
    
248,930
      
195,410
  
JP Intermediate B, LLC, Senior Secured First
                
  Lien Term Loan 7.277% (3 Month LIBOR
                
  USD + 5.50%, 1.000% Floor), 11/20/2025 (a)
    
614,063
      
262,205
  
             
1,647,186
  
                 
Gaming – 2.32%
                
Caesars Resort Collection, LLC, Senior Secured
                
  First Lien Term Loan 3.739% (1 Month
                
  LIBOR USD + 2.75%), 12/23/2024 (a)
    
762,450
      
625,209
  
Golden Entertainment, Inc., Senior
                
  Secured First Lien Term Loan 3.96%
                
  (1 Month LIBOR USD + 3.00%,
                
  0.750% Floor), 10/21/2024 (a)
    
1,191,775
      
911,708
  

The accompanying notes are an integral part of these financial statements.
22
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Gaming – 2.32% – Continued
            
GVC Holdings PLC, Senior Secured
            
  First Lien Term Loan 3.308% (6 Month
            
  LIBOR USD + 2.25%, 1.000% Floor),
            
  03/29/2024 (a)
  
$
470,400
    
$
391,215
  
Scientific Games International, Inc.
                
  Senior Secured First Lien Term Loan
                
    3.739% (1 Month LIBOR USD + 2.75%),
                
    08/14/2024 (a)
    
224,610
      
182,308
  
  Senior Secured First Lien Term Loan
                
    4.369% (2 Month LIBOR USD + 2.75%),
                
    08/14/2024 (a)
    
924,011
      
749,988
  
Stars Group Holdings B.V., Senior Secured
                
  First Lien Term Loan 4.95% (3 Month
                
  LIBOR USD + 3.50%), 07/10/2025 (a)
    
967,178
      
932,119
  
Station Casinos, LLC, Senior Secured First
                
  Lien Term Loan 3.24% (1 Month LIBOR
                
  USD + 2.25%, 0.250% Floor), 02/08/2027 (a)
    
839,489
      
728,256
  
             
4,520,803
  
                 
General Industrial Manufacturing – 4.60%
                
ASP Unifrax Holdings, Inc., Senior Secured
                
  First Lien Term Loan 4.822% (6 Month
                
  LIBOR USD + 3.75%), 12/12/2025 (a)
    
883,813
      
708,155
  
Blount International, Inc., Senior Secured
                
  First Lien Term Loan 4.75% (1 Month LIBOR
                
  USD + 3.75%, 1.000% Floor), 04/12/2023 (a)
    
607,313
      
517,227
  
Columbus McKinnon Corp., Senior Secured
                
  First Lien Term Loan 3.95% (3 Month LIBOR
                
  USD + 2.50%, 1.000% Floor), 01/31/2024 (a)
    
378,826
      
342,837
  
CPM Holdings, Inc.
                
  Senior Secured First Lien Term Loan
                
    4.735% (1 Month LIBOR USD + 3.75%),
                
    11/17/2025 (a)
    
1,500
      
1,244
  
  Senior Secured First Lien Term Loan
                
    4.842% (6 Month LIBOR USD + 3.75%),
                
    11/17/2025 (a)
    
591,000
      
489,939
  
  Senior Secured Second Lien Term Loan
                
    9.853% (1 Month LIBOR USD + 8.25%),
                
    11/16/2026 (a)
    
275,000
      
232,375
  

The accompanying notes are an integral part of these financial statements.
23
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
General Industrial Manufacturing – 4.60% – Continued
            
EWT Holdings III Corp., Senior Secured First
            
  Lien Term Loan 3.739% (1 Month LIBOR
            
  USD + 2.75%), 12/20/2024 (a)
  
$
1,304,650
    
$
1,195,933
  
Filtration Group Corp., Senior Secured First
                
  Lien Term Loan 3.989% (1 Month LIBOR
                
  USD + 3.00%), 03/31/2025 (a)
    
1,234,596
      
1,091,075
  
HD Supply Waterworks, Ltd.
                
  Senior Secured First Lien Term Loan
                
    4.33% (3 Month LIBOR USD + 2.75%,
                
    1.000% Floor), 08/01/2024 (a)
    
233,999
      
209,429
  
  Senior Secured First Lien Term Loan
                
    4.331% (1 Month LIBOR USD + 2.75%,
                
    1.000% Floor), 08/01/2024 (a)
    
362,276
      
324,237
  
Helix Acquisition Holdings, Inc., Senior Secured
                
  First Lien Term Loan 5.20% (3 Month
                
  LIBOR USD + 3.75%), 09/30/2024 (a)
    
643,423
      
490,610
  
LTI Holdings, Inc., Senior Secured First Lien
                
  Term Loan 4.489% (1 Month LIBOR
                
  USD + 3.50%), 09/08/2025 (a)
    
620,550
      
466,706
  
MTS Systems Corp., Senior Secured First
                
  Lien Term Loan 4.24% (1 Month LIBOR
                
  USD + 3.25%, 0.750% Floor), 07/05/2023 (a)
    
340,926
      
315,357
  
Penn Engineering & Manufacturing Corp.,
                
  Senior Secured First Lien Term Loan
                
  4.125% (3 Month LIBOR USD + 2.75%,
                
  1.000% Floor), 06/27/2024 (a)
    
736,068
      
653,260
  
UOS, LLC, Senior Secured First Lien Term
                
  Loan 5.00% (1 Month LIBOR
                
  USD + 4.25%), 04/18/2025 (a)
    
615,024
      
530,459
  
Vertiv Group Corp., Senior Secured First
                
  Lien Term Loan 4.581% (1 Month LIBOR
                
  USD + 3.00%), 03/02/2027 (a)
    
1,255,000
      
1,091,850
  
Welbilt, Inc., Senior Secured First Lien
                
  Term Loan 3.489% (1 Month LIBOR
                
  USD + 2.50%), 10/23/2025 (a)
    
415,553
      
327,163
  
             
8,987,856
  

The accompanying notes are an integral part of these financial statements.
24
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Healthcare – 8.45%
            
Acadia Healthcare Co., Inc., Senior Secured
            
  First Lien Term Loan 3.50% (1 Month
            
  LIBOR USD + 2.50%), 02/11/2022 (a)
  
$
876,701
    
$
812,921
  
AHP Health Partners, Inc., Senior
                
  Secured First Lien Term Loan 5.50%
                
  (1 Month LIBOR USD + 4.50%,
                
  1.000% Floor), 06/30/2025 (a)
    
599,485
      
535,538
  
Albany Molecular Research, Inc.,
                
  Senior Secured First Lien Term Loan
                
  4.25% (1 Month LIBOR USD + 3.25%,
                
  1.000% Floor), 08/28/2024 (a)
    
377,093
      
331,725
  
Amneal Pharmaceuticals, LLC, Senior Secured
                
  First Lien Term Loan 5.125% (1 Month
                
  LIBOR USD + 3.50%), 05/05/2025 (a)
    
390,982
      
339,504
  
Athenahealth, Inc., Senior Secured First Lien
                
  Term Loan 5.284% (3 Month LIBOR
                
  USD + 4.50%), 02/11/2026 (a)
    
653,400
      
614,196
  
Bausch Health Cos., Inc., Senior Secured
                
  First Lien Term Loan 3.612% (1 Month
                
  LIBOR USD + 3.00%), 06/02/2025 (a)
    
743,226
      
711,331
  
Bioscrip, Inc., Senior Secured First Lien
                
  Term Loan 6.103% (1 Month LIBOR
                
  USD + 4.50%), 08/06/2026 (a)
    
428,925
      
362,442
  
Cambrex Corp., Senior Secured First Lien
                
  Term Loan 6.00% (1 Month LIBOR
                
  USD + 5.00%, 1.000% Floor), 12/04/2026 (a)
    
424,935
      
365,444
  
CHG Healthcare Services, Inc.
                
  Senior Secured First Lien Term Loan
                
    4.072% (1 Month LIBOR USD + 3.00%,
                
    1.000% Floor), 06/07/2023 (a)
    
534,369
      
481,821
  
  Senior Secured First Lien Term Loan
                
    4.45% (3 Month LIBOR USD + 3.00%,
                
    1.000% Floor), 06/07/2023 (a)
    
1,377
      
1,242
  
Dentalcorp Perfect Smile, ULC, Senior
                
  Secured First Lien Term Loan 4.75%
                
  (1 Month LIBOR USD + 3.75%,
                
  1.000% Floor), 06/06/2025 (a)
    
565,350
      
449,453
  

The accompanying notes are an integral part of these financial statements.
25
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Healthcare – 8.45% – Continued
            
Envision Healthcare Corp., Senior Secured
            
  First Lien Term Loan 4.739% (1 Month
            
  LIBOR USD + 3.75%), 10/10/2025 (a)
  
$
824,154
    
$
441,611
  
Examworks Group, Inc., Senior Secured First
                
  Lien Term Loan 4.25% (6 Month LIBOR
                
USD + 3.25%, 1.000% Floor), 07/27/2023 (a)
    
826,951
      
750,457
  
Gentiva Health Services, Inc., Senior Secured
                
  First Lien Term Loan 4.25% (1 Month
                
  LIBOR USD + 3.25%), 07/02/2025 (a)
    
785,502
      
742,299
  
Global Medical Response, Inc.
                
  Senior Secured First Lien Term Loan
                
    4.932% (2 Month LIBOR USD + 3.25%,
                
    1.000% Floor), 04/28/2022 (a)
    
914,091
      
854,675
  
  Senior Secured First Lien Term Loan
                
    5.863% (3 Month LIBOR USD + 4.25%,
                
    1.000% Floor), 03/14/2025 (a)
    
376,338
      
339,645
  
Greatbatch, Ltd., Senior Secured First Lien
                
  Term Loan 3.51% (1 Month LIBOR
                
  USD + 2.50%, 1.000% Floor), 10/27/2022 (a)
    
505,363
      
482,622
  
Greenway Health, LLC, Senior Secured First
                
  Lien Term Loan 4.82% (6 Month LIBOR
                
  USD + 3.75%, 1.000% Floor), 02/16/2024 (a)
    
632,125
      
403,504
  
Heartland Dental, LLC, Senior Secured First
                
  Lien Term Loan 4.739% (1 Month LIBOR
                
  USD + 3.75%), 04/30/2025 (a)
    
825,970
      
646,322
  
Jaguar Holding Co. II, Senior Secured First
                
  Lien Term Loan 3.50% (1 Month LIBOR
                
  USD + 2.50%, 1.000% Floor), 08/18/2022 (a)
    
967,603
      
932,009
  
Micro Holding Corp., Senior Secured First
                
  Lien Term Loan 4.822% (3 Month LIBOR
                
  USD + 3.75%), 09/13/2024 (a)
    
697,722
      
597,948
  
MPH Acquisition Holdings, LLC, Senior
                
  Secured First Lien Term Loan 4.20%
                
  (3 Month LIBOR USD + 2.75%,
                
  1.000% Floor), 06/07/2023 (a)
    
364,802
      
328,322
  
Navicure, Inc., Senior Secured First Lien
                
  Term Loan 4.989% (1 Month LIBOR
                
  USD + 4.00%), 10/22/2026 (a)
    
655,000
      
607,513
  

The accompanying notes are an integral part of these financial statements.
26
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Healthcare – 8.45% – Continued
            
Parexel International Corp., Senior Secured
            
  First Lien Term Loan 3.739% (1 Month
            
  LIBOR USD + 2.75%), 09/27/2024 (a)
  
$
506,372
    
$
437,379
  
Pearl Intermediate Parent, LLC, Senior Secured
                
  First Lien Term Loan 3.739% (1 Month
                
  LIBOR USD + 2.75%), 02/14/2025 (a)
    
365,081
      
305,452
  
RegionalCare Hospital Partners Holdings, Inc.,
                
  Senior Secured First Lien Term Loan
                
  5.353% (1 Month LIBOR USD + 3.75%),
                
  11/14/2025 (a)
    
741,339
      
692,229
  
RPI Intermediate Finance Trust
                
  Senior Secured First Lien Term Loan
                
    2.739% (1 Month LIBOR USD + 1.75%),
                
    02/11/2027 (a)
    
998,498
      
933,595
  
  Senior Secured First Lien Term Loan
                
    2.739% (1 Month LIBOR USD + 1.75%),
                
    02/11/2027 (a)
    
549,050
      
515,421
  
Team Health Holdings, Inc., Senior Secured
                
  First Lien Term Loan 3.75% (1 Month LIBOR
                
  USD + 2.75%, 1.000% Floor), 02/06/2024 (a)
    
441,698
      
284,895
  
Verscend Holding Corp., Senior Secured First
                
  Lien Term Loan 5.489% (1 Month LIBOR
                
  USD + 4.50%), 08/27/2025 (a)
    
859,182
      
816,223
  
Vizient, Inc., Senior Secured First Lien
                
  Term Loan 2.989% (1 Month LIBOR
                
  USD + 2.00%), 05/06/2026 (a)
    
407,880
      
386,466
  
             
16,504,204
  
                 
Hotels – 0.24%
                
Four Seasons Hotels, Ltd., Senior Secured
                
  First Lien Term Loan 2.989% (1 Month
                
  LIBOR USD + 2.00%), 11/30/2023 (a)
    
503,295
      
460,379
  
                 
Leisure & Entertainment – 4.03%
                
Alterra Mountain Co., Senior Secured First
                
  Lien Term Loan 3.739% (1 Month LIBOR
                
  USD + 2.75%, 1.000% Floor), 07/31/2024 (a)
    
1,232,427
      
1,127,671
  

The accompanying notes are an integral part of these financial statements.
27
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Leisure & Entertainment – 4.03% – Continued
            
CDS U.S. Intermediate Holdings, Inc., Senior
            
  Secured First Lien Term Loan 5.20%
            
  (3 Month LIBOR USD + 3.75%,
            
  1.000% Floor), 07/08/2022 (a)
  
$
1,026,530
    
$
545,103
  
Crown Finance U.S., Inc., Senior Secured
                
  First Lien Term Loan 3.322% (6 Month
                
  LIBOR USD + 2.25%), 02/28/2025 (a)
    
710,454
      
497,318
  
Marriott Ownership Resorts, Inc., Senior
                
  Secured First Lien Term Loan 3.353%
                
  (1 Month LIBOR USD + 1.75%),
                
  08/29/2025 (a)
    
683,113
      
607,971
  
Metro-Goldwyn-Mayer, Inc.,
                
  Senior Secured Second Lien Term Loan
                
  5.50% (1 Month LIBOR USD + 4.50%,
                
  1.000% Floor), 07/03/2026 (a)
    
635,000
      
552,450
  
NAI Entertainment Holdings, LLC,
                
  Senior Secured First Lien Term Loan
                
  3.50% (1 Month LIBOR USD + 2.50%,
                
  1.000% Floor), 05/08/2025 (a)
    
518,962
      
408,682
  
Nascar Holdings, LLC, Senior Secured First
                
  Lien Term Loan 3.674% (1 Month LIBOR
                
  USD + 2.75%), 10/19/2026 (a)
    
727,176
      
647,187
  
Playtika Holding Corp., Senior Secured First
                
  Lien Term Loan 7.072% (6 Month
                
  LIBOR USD + 6.00%, 1.000% Floor),
                
  12/10/2024 (a)
    
1,209,779
      
1,141,221
  
SeaWorld Parks & Entertainment, Inc.,
                
  Senior Secured First Lien Term Loan
                
  3.989% (1 Month LIBOR USD + 3.00%,
                
  0.750% Floor), 04/01/2024 (a)
    
1,167,909
      
974,480
  
UFC Holdings, LLC, Senior Secured First
                
  Lien Term Loan 4.25% (1 Month LIBOR
                
  USD + 3.25%, 1.000% Floor),
                
  04/29/2026 (a)
    
1,521,931
      
1,356,421
  
             
7,858,504
  

The accompanying notes are an integral part of these financial statements.
28
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Media – Broadcast – 2.85%
            
CBS Radio, Inc., Senior Secured First Lien
            
  Term Loan 4.103% (1 Month LIBOR
            
  USD + 2.50%), 11/18/2024 (a)
  
$
539,231
    
$
493,396
  
E.W. Scripps Co., Senior Secured First Lien
                
  Term Loan 3.489% (1 Month LIBOR
                
  USD + 2.50%), 05/01/2026 (a)
    
945,474
      
902,928
  
Gray Television, Inc., Senior Secured First
                
  Lien Term Loan 4.015% (1 Month LIBOR
                
  USD + 2.50%), 01/02/2026 (a)
    
446,063
      
419,745
  
Hubbard Radio, LLC, Senior Secured First
                
  Lien Term Loan 5.11% (1 Month LIBOR
                
  USD + 3.50%, 1.000% Floor), 03/28/2025 (a)
    
480,234
      
414,343
  
iHeartCommunications, Inc., Senior Secured
                
  First Lien Term Loan 3.989% (1 Month
                
  LIBOR USD + 3.00%), 05/01/2026 (a)
    
868,823
      
739,859
  
ION Media Networks, Inc., Senior Secured
                
  First Lien Term Loan 4.00% (1 Month
                
  LIBOR USD + 3.00%), 12/18/2024 (a)
    
771,125
      
709,435
  
Mission Broadcasting, Inc., Senior Secured
                
  First Lien Term Loan 3.831% (1 Month
                
  LIBOR USD + 2.25%), 01/17/2024 (a)
    
34,046
      
32,173
  
Nexstar Broadcasting, Inc., Senior Secured
                
  First Lien Term Loan 3.191% (1 Month
                
  LIBOR USD + 2.25%), 01/17/2024 (a)
    
132,006
      
124,746
  
Sinclair Television Group, Inc., Senior Secured
                
  First Lien Term Loan 3.21% (1 Month
                
  LIBOR USD + 2.50%), 09/30/2026 (a)
    
940,275
      
897,963
  
Univision Communications, Inc.,
                
  Senior Secured First Lien Term Loan
                
  3.75% (1 Month LIBOR USD + 2.75%,
                
  1.000% Floor), 03/15/2024 (a)
    
959,374
      
825,661
  
             
5,560,249
  
                 
Media – Cable – 3.65%
                
Block Communications, Inc., Senior Secured
                
  First Lien Term Loan 3.877% (1 Month
                
  LIBOR USD + 2.25%), 02/11/2027 (a)
    
586,000
      
580,140
  

The accompanying notes are an integral part of these financial statements.
29
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Media – Cable – 3.65% – Continued
            
Hargray Communications Group, Inc.,
            
  Senior Secured First Lien Term Loan
            
  4.00% (1 Month LIBOR USD + 3.00%,
            
  1.000% Floor), 05/16/2024 (a)
  
$
792,588
    
$
701,769
  
LCPR Loan Financing, LLC, Senior Secured
                
  First Lien Term Loan 5.705% (1 Month
                
  LIBOR USD + 5.00%), 10/15/2026 (a)
    
535,000
      
496,213
  
Lions Gate Capital Holdings, LLC,
                
  Senior Secured First Lien Term Loan
                
  3.239% (1 Month LIBOR USD + 2.25%),
                
  03/24/2025 (a)
    
446,440
      
407,376
  
Midcontinent Communications,
                
  Senior Secured First Lien Term Loan
                
  2.739% (1 Month LIBOR USD + 1.75%),
                
  08/17/2026 (a)
    
592,025
      
555,023
  
Telenet Financing USD, LLC, Senior Secured
                
  First Lien Term Loan 2.705% (1 Month
                
  LIBOR USD + 2.00%), 04/28/2028 (a)
    
1,090,000
      
1,012,609
  
UPC Financing Partnership, Senior Secured
                
  First Lien Term Loan 2.955% (1 Month
                
  LIBOR USD + 2.25%), 04/28/2028 (a)
    
440,000
      
402,600
  
Virgin Media Bristol, LLC, Senior Secured
                
  First Lien Term Loan 3.205% (1 Month
                
  LIBOR USD + 2.50%), 01/31/2028 (a)
    
1,035,000
      
965,138
  
WideOpenWest Finance, LLC,
                
  Senior Secured First Lien Term Loan
                
  4.25% (1 Month LIBOR USD + 3.25%,
                
  1.000% Floor), 08/18/2023 (a)
    
1,274,273
      
1,188,260
  
Ziggo Financing Partnership, Senior Secured
                
  First Lien Term Loan 3.205% (1 Month
                
  LIBOR USD + 2.50%), 04/28/2028 (a)
    
845,000
      
806,975
  
             
7,116,103
  
                 
Media Diversified & Services – 5.44%
                
Ancestry.com Operations, Inc., Senior Secured
                
  First Lien Term Loan 5.25% (1 Month
                
  LIBOR USD + 4.25%), 08/27/2026 (a)
    
2,320,330
      
1,867,865
  

The accompanying notes are an integral part of these financial statements.
30
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Media Diversified & Services – 5.44% – Continued
            
Buzz Merger Sub, Ltd., Senior Secured
            
  First Lien Term Loan 3.739% (1 Month
            
  LIBOR USD + 2.75%), 01/29/2027 (a)
  
$
630,000
    
$
582,750
  
Catalina Marketing Corp.,
                
  Senior Secured First Lien Term Loan
                
  2.629% (1 Month LIBOR USD + 1.00%,
                
  1.000% Floor), 08/15/2023 (a)
    
161,154
      
61,239
  
Creative Artists Agency, LLC, Senior Secured
                
  First Lien Term Loan 4.739% (1 Month
                
  LIBOR USD + 3.75%), 11/26/2026 (a)
    
835,905
      
737,268
  
Diamond Sports Group, LLC, Senior Secured
                
  First Lien Term Loan 4.18% (1 Month
                
  LIBOR USD + 3.25%), 08/24/2026 (a)
    
800,975
      
628,765
  
Financial & Risk U.S. Holdings, Inc.,
                
  Senior Secured First Lien Term Loan
                
  4.239% (1 Month LIBOR USD + 3.25%),
                
  10/01/2025 (a)
    
641,058
      
618,887
  
Hoya Midco, LLC, Senior Secured First Lien
                
  Term Loan 4.572% (6 Month LIBOR
                
  USD + 3.50%, 1.000% Floor), 06/28/2024 (a)
    
974,518
      
732,511
  
Learfield Communications, LLC,
                
  Senior Secured First Lien Term Loan
                
  4.25% (1 Month LIBOR USD + 3.25%,
                
  1.000% Floor), 12/01/2023 (a)
    
580,500
      
395,707
  
Match Group, Inc., Senior Secured First
                
  Lien Term Loan 3.457% (3 Month LIBOR
                
  USD + 1.75%), 02/05/2027 (a)
    
575,000
      
527,085
  
Meredith Corp., Senior Secured First Lien
                
  Term Loan 3.489% (1 Month LIBOR
                
  USD + 2.50%), 01/31/2025 (a)
    
795,764
      
712,209
  
Pug, LLC, Senior Secured First Lien Term
                
   Loan 4.489% (1 Month LIBOR
                
  USD + 3.50%), 02/12/2027 (a)
    
937,650
      
815,756
  
Titan AcquisitionCo New Zealand, Ltd.,
                
  Senior Secured First Lien Term Loan
                
  5.581% (1 Month LIBOR USD + 4.00%),
                
  05/01/2026 (a)
    
481,332
      
419,360
  

The accompanying notes are an integral part of these financial statements.
31
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Media Diversified & Services – 5.44% – Continued
            
William Morris Endeavor Entertainment, LLC
            
  Senior Secured First Lien Term Loan
            
    3.74% (1 Month LIBOR USD + 2.75%),
            
    05/16/2025 (a)
  
$
1,199,650
    
$
962,719
  
  Senior Secured First Lien Term Loan
                
    4.37% (3 Month LIBOR USD + 2.75%),
                
    05/16/2025 (a)
    
1,070,710
      
859,245
  
WMG Acquisition Corp., Senior Secured First
                
  Lien Term Loan 3.114% (1 Month LIBOR
                
  USD + 2.125%), 11/01/2023 (a)
    
703,000
      
688,940
  
             
10,610,306
  
                 
Metals & Mining Excluding Steel – 0.26%
                
Aleris International, Inc., Senior Secured
                
  First Lien Term Loan 5.739% (1 Month
                
  LIBOR USD + 4.75%), 02/27/2023 (a)
    
569,850
      
516,427
  
                 
Non-Food & Drug Retailers – 2.45%
                
ABG Intermediate Holdings 2, LLC,
                
  Senior Secured First Lien Term Loan
                
  4.95% (3 Month LIBOR USD + 3.50%,
                
  1.000% Floor), 09/27/2024 (a)
    
1,887,897
      
1,519,757
  
Ascena Retail Group, Inc.
                
  Senior Secured First Lien Term Loan
                
    5.50% (1 Month LIBOR USD + 4.50%,
                
    0.750% Floor), 08/22/2022 (a)
    
473,514
      
147,973
  
  Senior Secured First Lien Term Loan
                
    6.00% (3 Month LIBOR USD + 4.50%,
                
    0.750% Floor), 08/22/2022 (a)
    
479,267
      
149,771
  
Bass Pro Group, LLC, Senior Secured
                
  First Lien Term Loan
                
  5.989% (1 Month LIBOR USD + 5.00%,
                
  0.750% Floor), 09/25/2024 (a)
    
1,118,837
      
945,418
  
Harbor Freight Tools U.S.A., Inc.,
                
  Senior Secured First Lien Term Loan
                
  3.489% (1 Month LIBOR USD + 2.50%,
                
  0.750% Floor), 08/18/2023 (a)
    
591,032
      
542,567
  

The accompanying notes are an integral part of these financial statements.
32
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Non-Food & Drug Retailers – 2.45% – Continued
            
Jo-Ann Stores, LLC,
            
  Senior Secured First Lien Term Loan
            
  6.00% (1 Month LIBOR USD + 5.00%,
            
  1.000% Floor), 10/20/2023 (a)
  
$
416,148
    
$
162,893
  
Life Time, Inc., Senior Secured First Lien Term
                
  Loan 4.363% (3 Month LIBOR USD + 2.75%,
                
  1.000% Floor), 06/10/2022 (a)
    
683,014
      
513,968
  
Michaels Stores, Inc.
                
  Senior Secured First Lien Term Loan
                
    3.558% (3 Month LIBOR USD + 2.50%,
                
    1.000% Floor), 01/30/2023 (a)
    
136,269
      
115,147
  
  Senior Secured First Lien Term Loan
                
    3.568% (3 Month LIBOR USD + 2.50%,
                
    1.000% Floor), 01/30/2023 (a)
    
131,169
      
110,838
  
  Senior Secured First Lien Term Loan
                
    3.875% (3 Month LIBOR USD + 2.50%,
                
    1.000% Floor), 01/30/2023 (a)
    
226,154
      
191,100
  
United PF Holdings, LLC
                
  Senior Secured First Lien Term Loan
                
    5.45% (3 Month LIBOR USD + 4.00%),
                
    12/30/2026 (a)
    
449,364
      
334,776
  
  Senior Secured First Lien Delayed-Draw
                
    Term Loan 6.461% (3 Month LIBOR
                
    USD + 4.00%), 12/30/2026 (a)(f)
    
55,636
      
41,449
  
             
4,775,657
  
                 
Oil & Gas – 0.19%
                
California Resources Corp.,
                
  Senior Secured First Lien Term Loan
                
  6.363% (3 Month LIBOR USD + 4.75%,
                
  1.000% Floor), 12/30/2022 (a)
    
630,000
      
167,999
  
U.S. Silica Co., Senior Secured First Lien Term
                
  Loan 5.00% (1 Month LIBOR USD + 4.00%,
                
  1.000% Floor), 05/01/2025 (a)
    
411,575
      
211,961
  
             
379,960
  
                 
Packaging – 3.72%
                
Ball Metalpack Finco, LLC, Senior Secured
                
  First Lien Term Loan 6.113% (3 Month LIBOR
                
  USD + 4.50%), 07/31/2025 (a)
    
739,356
      
570,044
  

The accompanying notes are an integral part of these financial statements.
33
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
BANK LOANS – 87.29% – Continued
            
             
Packaging – 3.72% – Continued
            
Berry Global, Inc., Senior Secured First Lien
            
  Term Loan 2.863% (1 Month LIBOR
            
  USD + 2.00%), 07/01/2026 (a)
  
$
813,850
    
$
777,906
  
Flex Acquisition Co., Inc., Senior Secured
                
  First Lien Term Loan 5.159% (3 Month
                
  LIBOR USD + 3.25%), 06/30/2025 (a)
    
591,996
      
544,636
  
Hoffmaster Group, Inc., Senior Secured First
                
  Lien Term Loan 5.603% (1 Month LIBOR
                
  USD + 4.00%, 1.000% Floor), 11/21/2023 (a)
    
725,625
      
533,334
  
Mauser Packaging Solutions Holding Co.,
                
  Senior Secured First Lien Term Loan
                
  5.084% (3 Month LIBOR USD + 3.25%),
                
  04/03/2024 (a)
    
1,077,571
      
891,023
  
Pregis Topco, LLC, Senior Secured First Lien
                
  Term Loan 4.989% (1 Month LIBOR
                
  USD + 4.00%), 07/31/2026 (a)
    
543,638
      
478,401
  
Pro Mach Group, Inc., Senior Secured First
                
  Lien Term Loan 3.679% (1 Month LIBOR
                
  USD + 2.75%), 03/07/2025 (a)
    
490,000
      
394,450
  
Reynolds Consumer Products, LLC,
                
  Senior Secured First Lien Term Loan
                
  3.501% (3 Month LIBOR USD + 1.75%),
                
  02/04/2027 (a)
    
620,000
      
588,690
  
Reynolds Group Holdings, Inc., Senior Secured
                
  First Lien Term Loan 3.739% (1 Month
                
  LIBOR USD + 2.75%), 02/06/2023 (a)
    
613,379
      
584,243
  
Sabert Corp., Senior Secured First Lien Term
                
  Loan 5.50% (1 Month LIBOR USD + 4.50%,
                
  1.000% Floor), 12/10/2026 (a)
    
816,000
      
758,880
  
Spectrum Holdings III Corp.
                
  Senior Secured First Lien Term Loan
                
    4.322% (6 Month LIBOR USD + 3.25%),
                
    01/31/2025 (a)
    
724,963
      
514,724
  
  Senior Secured First Lien Term Loan
                
    4.70% (3 Month LIBOR USD + 3.25%),
                
    01/31/2025 (a)
    
1,854
      
1,316
  

The accompanying notes are an integral part of these financial statements.
34
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Packaging – 3.72% – Continued
            
TricorBraun Holdings, Inc.,
            
  Senior Secured First Lien Term Loan
            
  5.20% (3 Month LIBOR USD + 3.75%,
            
  1.000% Floor), 11/30/2023 (a)
  
$
750,341
    
$
632,162
  
             
7,269,809
  
                 
Printing & Publishing – 0.22%
                
Harland Clarke Holdings Corp.,
                
  Senior Secured First Lien Term Loan
                
  6.463% (3 Month LIBOR USD + 4.75%,
                
  1.000% Floor), 11/03/2023 (a)
    
703,426
      
439,423
  
                 
Reits – 0.26%
                
Blackstone Mortgage Trust, Inc.,
                
  Senior Secured First Lien Term Loan
                
  3.239% (1 Month LIBOR USD + 2.25%),
                
  04/23/2026 (a)
    
582,075
      
509,316
  
                 
Restaurants – 0.54%
                
IRB Holding Corp., Senior Secured First
                
  Lien Term Loan 3.75% (6 Month LIBOR
                
  USD + 2.75%, 1.000% Floor), 02/05/2025 (a)
    
755,880
      
591,831
  
K-Mac Holdings Corp., Senior Secured First
                
  Lien Term Loan 3.989% (1 Month LIBOR
                
  USD + 3.00%), 03/14/2025 (a)
    
584,722
      
467,778
  
             
1,059,609
  
                 
Steel Producers & Products – 0.54%
                
GrafTech Finance, Inc., Senior Secured First
                
  Lien Term Loan 4.50% (1 Month LIBOR
                
  USD + 3.50%, 1.000% Floor), 02/12/2025 (a)
    
835,833
      
731,354
  
Zekelman Industries, Inc.,
                
  Senior Secured First Lien Term Loan
                
  3.209% (1 Month LIBOR USD + 2.25%),
                
  01/25/2027 (a)
    
345,000
      
319,125
  
             
1,050,479
  

The accompanying notes are an integral part of these financial statements.
35
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Support – Services – 10.07%
            
Access CIG, LLC
            
  Senior Secured First Lien Term Loan
            
    5.527% (3 Month LIBOR USD + 3.75%),
            
    02/27/2025 (a)
  
$
1,265,270
    
$
1,042,267
  
  Senior Secured Second Lien Term Loan
                
    9.527% (3 Month LIBOR USD + 7.75%),
                
    02/27/2026 (a)
    
315,000
      
270,113
  
Allied Universal Holdco, LLC, Senior Secured
                
  First Lien Term Loan 5.239% (1 Month
                
  LIBOR USD + 4.25%), 07/10/2026 (a)
    
1,137,150
      
1,057,549
  
Amentum Holdings, LLC
                
  Senior Secured First Lien Term Loan
                
    4.989% (1 Month LIBOR USD + 4.00%),
                
    02/01/2027 (a)
    
320,463
      
299,633
  
  Senior Secured First Lien Term Loan
                
    5.762% (2 Month LIBOR USD + 4.00%),
                
    02/01/2027 (a)
    
636,537
      
595,162
  
Asurion, LLC
                
  Senior Secured First Lien Term Loan
                
    3.989% (1 Month LIBOR USD + 3.00%),
                
    08/04/2022 (a)
    
1,158,025
      
1,109,770
  
  Senior Secured First Lien Term Loan
                
    3.989% (1 Month LIBOR USD + 3.00%),
                
    11/03/2023 (a)
    
608,547
      
587,247
  
  Senior Secured Second Lien Term Loan
                
    7.489% (1 Month LIBOR USD + 6.50%),
                
    08/04/2025 (a)
    
480,000
      
444,900
  
AVSC Holding Corp., Senior Secured First
                
  Lien Term Loan 6.204% (3 Month LIBOR
                
  USD + 4.50%, 1.000% Floor), 10/15/2026 (a)
    
588,525
      
367,828
  
Belfor Holdings, Inc., Senior Secured First
                
  Lien Term Loan 4.989% (1 Month LIBOR
                
  USD + 4.00%), 04/06/2026 (a)
    
466,475
      
450,148
  

The accompanying notes are an integral part of these financial statements.
36
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Support – Services – 10.07% – Continued
            
Brand Energy & Infrastructure Services, Inc.
            
  Senior Secured First Lien Term Loan
            
    5.70% (3 Month LIBOR USD + 4.25%,
            
    1.000% Floor), 06/21/2024 (a)
  
$
9,764
    
$
7,919
  
  Senior Secured First Lien Term Loan
                
    6.056% (3 Month LIBOR USD + 4.25%,
                
    1.000% Floor), 06/21/2024 (a)
    
672,807
      
545,707
  
  Senior Secured First Lien Term Loan
                
    6.124% (3 Month LIBOR USD + 4.25%,
                
    1.000% Floor), 06/21/2024 (a)
    
583,464
      
473,242
  
Brightview Landscapes, LLC
                
  Senior Secured First Lien Term Loan
                
    3.125% (1 Month LIBOR USD + 2.50%),
                
    08/15/2025 (a)
    
618,322
      
588,952
  
  Senior Secured First Lien Term Loan
                
    3.50% (1 Month LIBOR USD + 2.50%),
                
    08/15/2025 (a)
    
506,641
      
482,575
  
Camelot U.S. Acquisition 1 Co., Senior Secured
                
  First Lien Term Loan 4.239% (1 Month
                
  LIBOR USD + 3.25%), 10/30/2026 (a)
    
554,610
      
529,653
  
Capri Acquisitions BidCo, Ltd., Senior Secured
                
  First Lien Term Loan 4.777% (3 Month
                
  LIBOR USD + 3.00%), 11/01/2024 (a)
    
715,674
      
620,847
  
EAB Global, Inc., Senior Secured First Lien
                
  Term Loan 5.736% (6 Month LIBOR
                
  USD + 3.75%, 1.000% Floor), 11/15/2024 (a)
    
487,644
      
398,770
  
Garda World Security Corp., Senior Secured
                
  First Lien Term Loan 6.39% (3 Month
                
  LIBOR USD + 4.75%), 10/30/2026 (a)
    
590,876
      
564,287
  
IRI Holdings, Inc., Senior Secured First Lien
                
  Term Loan 6.113% (3 Month LIBOR
                
  USD + 4.50%), 12/01/2025 (a)
    
1,718,250
      
1,376,747
  
Lakeland Tours, LLC, Senior Secured First
                
  Lien Term Loan 5.25% (3 Month LIBOR
                
  USD + 4.25%, 1.000% Floor), 12/16/2024 (a)
    
705,479
      
519,702
  

The accompanying notes are an integral part of these financial statements.
37
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Support – Services – 10.07% – Continued
            
Learning Care Group (U.S.) No. 2, Inc.
            
  Senior Secured First Lien Term Loan
            
    4.25% (3 Month LIBOR USD + 3.25%,
            
    1.000% Floor), 03/13/2025 (a)
  
$
33,690
    
$
26,910
  
  Senior Secured First Lien Term Loan
                
    5.027% (3 Month LIBOR USD + 3.25%,
                
    1.000% Floor), 03/13/2025 (a)
    
86,386
      
69,001
  
  Senior Secured First Lien Term Loan
                
    5.044% (3 Month LIBOR USD + 3.25%,
                
    1.000% Floor), 03/13/2025 (a)
    
345,545
      
276,004
  
Moneygram International, Inc.,
                
  Senior Secured First Lien Term Loan
                
  6.989% (1 Month LIBOR USD + 6.00%,
                
  1.000% Floor), 06/30/2023 (a)
    
902,819
      
665,829
  
PODS, LLC, Senior Secured First Lien
                
  Term Loan 3.75% (1 Month LIBOR
                
  USD + 2.75%, 1.000% Floor), 12/06/2024 (a)
    
761,218
      
681,290
  
Prometric Holdings, Inc., Senior Secured First
                
  Lien Term Loan 3.99% (1 Month LIBOR
                
  USD + 3.00%, 1.000% Floor), 01/29/2025 (a)
    
720,374
      
558,289
  
ProQuest, LLC, Senior Secured First Lien
                
  Term Loan 4.489% (1 Month LIBOR
                
  USD + 3.50%), 10/23/2026 (a)
    
413,963
      
391,195
  
Renaissance Holding Corp., Senior Secured
                
  First Lien Term Loan 4.239% (1 Month
                
  LIBOR USD + 3.25%), 05/30/2025 (a)
    
515,813
      
437,151
  
Sedgwick Claims Management Services, Inc.,
                
  Senior Secured First Lien Term Loan
                
  4.989% (1 Month LIBOR USD + 4.00%),
                
  09/03/2026 (a)
    
794,000
      
725,021
  
Severin Acquisition, LLC, Senior Secured
                
  First Lien Term Loan 4.742% (3 Month
                
  LIBOR USD + 3.00%), 08/01/2025 (a)
    
373,056
      
327,668
  
SiteOne Landscape Supply, Inc.,
                
  Senior Secured First Lien Term Loan
                
  3.75% (1 Month LIBOR USD + 2.75%,
                
  1.000% Floor), 10/29/2024 (a)
    
388,553
      
357,469
  

The accompanying notes are an integral part of these financial statements.
38
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Support – Services – 10.07% – Continued
            
Tempo Acquisition, LLC, Senior Secured First
            
  Lien Term Loan 3.739% (1 Month LIBOR
            
  USD + 2.75%), 05/01/2024 (a)
  
$
547,092
    
$
496,760
  
TMK Hawk Parent, Corp., Senior Secured First
                
  Lien Term Loan 4.58% (6 Month LIBOR
                
  USD + 3.50%), 08/28/2024 (a)
    
409,545
      
265,180
  
USIC Holdings, Inc., Senior Secured First
                
  Lien Term Loan 4.25% (1 Month LIBOR
                
  USD + 3.25%, 1.000% Floor), 12/08/2023 (a)
    
799,188
      
681,308
  
Verra Mobility Corp., Senior Secured First
                
  Lien Term Loan 4.239% (1 Month LIBOR
                
  USD + 3.25%), 02/28/2025 (a)
    
589,408
      
536,362
  
West Corp.
                
  Senior Secured First Lien Term Loan
                
    4.95% (3 Month LIBOR USD + 3.50%,
                
    1.000% Floor), 10/10/2024 (a)
    
262,658
      
196,337
  
  Senior Secured First Lien Term Loan
                
    5.45% (3 Month LIBOR USD + 4.00%,
                
    1.000% Floor), 10/10/2024 (a)
    
830,828
      
631,014
  
             
19,655,806
  
                 
Technology – 11.38%
                
Avaya, Inc., Senior Secured First Lien Term
                
  Loan 4.955% (1 Month LIBOR USD + 4.25%),
                
  12/16/2024 (a)
    
1,303,442
      
1,124,218
  
Barracuda Networks, Inc.,
                
  Senior Secured First Lien Term Loan
                
  4.517% (3 Month LIBOR USD + 3.25%,
                
  1.000% Floor), 02/12/2025 (a)
    
943,200
      
872,460
  
Castle U.S. Holding Corp., Senior Secured
                
  First Lien Term Loan 5.20% (1 Month
                
  LIBOR USD + 3.75%), 01/27/2027 (a)
    
1,180,000
      
961,706
  
Celestica, Inc., Senior Secured First Lien
                
  Term Loan 3.084% (1 Month LIBOR
                
  USD + 2.125%), 06/27/2025 (a)
    
614,063
      
506,602
  
CommScope, Inc., Senior Secured First Lien
                
  Term Loan 4.239% (1 Month LIBOR
                
  USD + 3.25%), 04/06/2026 (a)
    
641,775
      
609,686
  

The accompanying notes are an integral part of these financial statements.
39
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Technology – 11.38% – Continued
            
Compuware Corp., Senior Secured First Lien
            
  Term Loan 4.989% (1 Month LIBOR
            
  USD + 4.00%), 08/22/2025 (a)
  
$
458,807
    
$
441,982
  
DCert Buyer, Inc., Senior Secured First Lien
                
  Term Loan 4.989% (1 Month LIBOR
                
  USD + 4.00%), 10/16/2026 (a)
    
855,000
      
768,790
  
Diebold Nixdorf, Inc.
                
  Senior Secured First Lien Term Loan
                
    5.813% (1 Month LIBOR USD + 4.75%),
                
    04/29/2022 (a)
    
521,365
      
465,751
  
  Senior Secured First Lien Term Loan
                
    10.25% (1 Month LIBOR USD + 9.25%),
                
    08/31/2022 (a)
    
258,345
      
232,510
  
  Senior Secured First Lien Term Loan
                
    3.813% (1 Month LIBOR USD + 2.75%),
                
    11/06/2023 (a)
    
119,802
      
103,629
  
Dynatrace, LLC, Senior Secured First Lien
                
  Term Loan 3.239% (1 Month LIBOR
                
  USD + 2.25%), 08/22/2025 (a)
    
620,955
      
589,907
  
EagleView Technology Corp., Senior Secured
                
  First Lien Term Loan 5.113% (3 Month
                
  LIBOR USD + 3.50%), 08/14/2025 (a)
    
878,875
      
747,044
  
GlobalLogic Holdings, Inc., Senior Secured
                
  First Lien Term Loan 3.739% (1 Month
                
  LIBOR USD + 2.75%), 08/01/2025 (a)
    
498,778
      
473,839
  
Imperva, Inc., Senior Secured First Lien
                
  Term Loan 5.704% (3 Month LIBOR
                
  USD + 4.00%, 1.000% Floor), 01/12/2026 (a)
    
634,427
      
525,515
  
Informatica, LLC
                
  Senior Secured Second Lien Term Loan
                
    7.125%, 02/14/2025
    
237,000
      
213,300
  
  Senior Secured First Lien Term Loan
                
    4.239% (1 Month LIBOR USD + 3.25%),
                
    02/25/2027 (a)
    
1,092,000
      
957,324
  
MA FinanceCo., LLC, Senior Secured First
                
  Lien Term Loan 3.489% (1 Month LIBOR
                
  USD + 2.50%), 06/21/2024 (a)
    
109,139
      
98,771
  

The accompanying notes are an integral part of these financial statements.
40
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Technology – 11.38% – Continued
            
Merrill Communications, LLC,
            
  Senior Secured First Lien Term Loan
            
  6.908% (3 Month LIBOR USD + 5.00%,
            
  1.000% Floor), 10/05/2026 (a)
  
$
513,713
    
$
457,204
  
Microchip Technology, Inc., Senior Secured
                
  First Lien Term Loan 2.99% (1 Month
                
  LIBOR USD + 2.00%), 05/29/2025 (a)
    
324,814
      
315,069
  
MLN U.S. HoldCo, LLC, Senior Secured First
                
  Lien Term Loan 6.015% (1 Month LIBOR
                
  USD + 4.50%), 11/28/2025 (a)
    
982,563
      
702,532
  
ON Semiconductor Corp., Senior Secured
                
  First Lien Term Loan 2.989% (1 Month
                
  LIBOR USD + 2.00%), 09/18/2026 (a)
    
472,625
      
447,221
  
Optiv Security, Inc., Senior Secured First
                
  Lien Term Loan 4.25% (1 Month LIBOR
                
  USD + 3.25%, 1.000% Floor), 02/01/2024 (a)
    
867,022
      
675,042
  
Plantronics, Inc.
                
  Senior Secured First Lien Term Loan
                
    3.459% (1 Month LIBOR USD + 2.50%),
                
    07/02/2025 (a)
    
33,820
      
26,692
  
  Senior Secured First Lien Term Loan
                
    4.103% (1 Month LIBOR USD + 2.50%),
                
    07/02/2025 (a)
    
483,314
      
381,456
  
Presidio, Inc., Senior Secured First Lien
                
  Term Loan 5.28% (3 Month LIBOR
                
  USD + 3.50%), 01/22/2027 (a)
    
741,000
      
696,540
  
Project Alpha Intermediate Holding, Inc.
                
  Senior Secured First Lien Term Loan
                
    5.38% (6 Month LIBOR USD + 3.50%,
                
    1.000% Floor), 04/26/2024 (a)
    
778,000
      
707,980
  
  Senior Secured First Lien Term Loan
                
    6.13% (3 Month LIBOR USD + 4.25%,
                
    1.000% Floor), 04/26/2024 (a)
    
535,950
      
486,375
  
Red Ventures, LLC, Senior Secured First
                
  Lien Term Loan 3.489% (1 Month LIBOR
                
  USD + 2.50%), 11/08/2024 (a)
    
675,541
      
569,707
  

The accompanying notes are an integral part of these financial statements.
41
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Technology – 11.38% – Continued
            
Rocket Software, Inc., Senior Secured First
            
  Lien Term Loan 5.239% (1 Month LIBOR
            
  USD + 4.25%), 11/28/2025 (a)
  
$
614,160
    
$
513,164
  
RP Crown Parent, LLC, Senior Secured First
                
  Lien Term Loan 3.75% (1 Month LIBOR
                
  USD + 2.75%, 1.000% Floor), 10/12/2023 (a)
    
546,638
      
524,772
  
Seattle SpinCo, Inc., Senior Secured First
                
  Lien Term Loan 3.489% (1 Month LIBOR
                
  USD + 2.50%), 06/21/2024 (a)
    
737,041
      
667,022
  
SolarWinds Holdings, Inc., Senior Secured
                
  First Lien Term Loan 3.739% (1 Month
                
  LIBOR USD + 2.75%), 02/05/2024 (a)
    
1,193,058
      
1,119,488
  
Solera, LLC, Senior Secured First Lien Term
                
  Loan 4.363% (3 Month LIBOR
                
  USD + 2.75%), 03/03/2023 (a)
    
761,116
      
719,254
  
TIBCO Software, Inc.
                
  Senior Secured First Lien Term Loan
                
    4.74% (1 Month LIBOR USD + 3.75%),
                
    06/30/2026 (a)
    
1,119,486
      
1,063,511
  
  Senior Secured Second Lien Term Loan
                
    8.66% (1 Month LIBOR USD + 7.25%),
                
    03/03/2028 (a)
    
263,000
      
251,165
  
Ultimate Software Group, Senior Secured
                
  First Lien Term Loan 4.739% (1 Month
                
  LIBOR USD + 3.75%), 05/04/2026 (a)
    
745,255
      
701,781
  
Vertafore, Inc., Senior Secured First Lien
                
  Term Loan 4.239% (1 Month LIBOR
                
  USD + 3.25%), 07/02/2025 (a)
    
799,875
      
713,572
  
VS Buyer, LLC, Senior Secured First Lien
                
  Term Loan 4.863% (3 Month LIBOR
                
  USD + 3.25%), 02/26/2027 (a)
    
802,000
      
773,930
  
             
22,206,511
  
                 
Telecommunications – Satellites – 1.87%
                
Connect U.S. Finco, LLC, Senior
                
  Secured First Lien Term Loan
                
  5.49% (1 Month LIBOR USD + 4.50%,
                
  1.000% Floor), 12/11/2026 (a)
    
1,250,000
      
1,007,813
  

The accompanying notes are an integral part of these financial statements.
42
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Telecommunications – Satellites – 1.87% – Continued
            
Maxar Technologies, Ltd., Senior Secured
            
  First Lien Term Loan 3.739% (1 Month
            
  LIBOR USD + 2.75%), 10/04/2024 (a)
  
$
1,388,916
    
$
1,199,099
  
Speedcast International, Ltd., Senior
                
  Secured First Lien Term Loan 4.75%
                
  (Prime Rate + 1.50%), 05/15/2025 (a)
    
837,250
      
211,406
  
Telesat Canada, Senior Secured First Lien
                
  Term Loan 3.74% (1 Month LIBOR
                
  USD + 2.75%), 12/07/2026 (a)
    
359,100
      
344,736
  
Xplornet Communications, Inc., Senior
                
  Secured First Lien Term Loan
                
  5.45% (3 Month LIBOR USD + 4.00%,
                
  1.000% Floor), 09/09/2021 (a)
    
918,748
      
891,185
  
             
3,654,239
  
                 
Telecommunications – Wireline/Wireless – 3.59%
                
Altice Financing S.A., Senior Secured First
                
  Lien Term Loan 4.412% (2 Month LIBOR
                
  USD + 2.75%), 07/15/2025 (a)
    
542,242
      
498,863
  
CenturyLink, Inc., Senior Secured First Lien
                
  Term Loan 3.239% (1 Month LIBOR
                
  USD + 2.25%), 03/15/2027 (a)
    
844,802
      
793,590
  
Consolidated Communications, Inc.,
                
  Senior Secured First Lien Term Loan
                
  4.61% (1 Month LIBOR USD + 3.00%,
                
  1.000% Floor), 10/05/2023 (a)
    
1,224,533
      
1,086,773
  
Coral-U.S. Co-Borrower, LLC, Senior Secured
                
  First Lien Term Loan 3.239% (1 Month
                
  LIBOR USD + 2.25%), 01/31/2028 (a)
    
585,000
      
555,019
  
Dawn Acquisition, LLC, Senior Secured First
                
  Lien Term Loan 5.20% (3 Month LIBOR
                
  USD + 3.75%), 12/31/2025 (a)
    
497,605
      
384,027
  
Flexential Intermediate Corp., Senior Secured
                
  First Lien Term Loan 4.95% (3 Month LIBOR
                
  USD + 3.50%), 08/01/2024 (a)
    
766,332
      
550,801
  
Masergy Holdings, Inc., Senior Secured First
                
  Lien Term Loan 4.25% (1 Month LIBOR
                
  USD + 3.25%, 1.000% Floor), 12/15/2023 (a)
    
483,658
      
411,109
  

The accompanying notes are an integral part of these financial statements.
43
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Telecommunications – Wireline/Wireless – 3.59% – Continued
            
MTN Infrastructure TopCo, Inc.,
            
  Senior Secured First Lien Term Loan
            
  4.00% (1 Month LIBOR USD + 3.00%,
            
  1.000% Floor), 11/15/2024 (a)
  
$
441,000
    
$
394,971
  
Numericable U.S., LLC, Senior Secured First
                
  Lien Term Loan 4.705% (1 Month LIBOR
                
  USD + 4.00%), 08/14/2026 (a)
    
365,375
      
349,847
  
Rackspace Hosting, Inc., Senior Secured First
                
  Lien Term Loan 4.763% (3 Month LIBOR
                
  USD + 3.00%, 1.000% Floor), 11/03/2023 (a)
    
678,456
      
598,927
  
Sprint Communications, Inc.,
                
  Senior Secured First Lien Term Loan
                
  3.50% (1 Month LIBOR USD + 2.50%,
                
  0.750% Floor), 02/02/2024 (a)
    
416,812
      
415,249
  
TierPoint, LLC, Senior Secured First Lien
                
  Term Loan 4.75% (1 Month LIBOR
                
  USD + 3.75%, 1.000% Floor), 05/06/2024 (a)
    
446,313
      
400,566
  
Zayo Group Holdings, Inc., Senior Secured
                
  First Lien Term Loan 3.989% (1 Month
                
  LIBOR USD + 3.00%), 03/09/2027 (a)
    
590,000
      
560,500
  
             
7,000,242
  
                 
Utilities – Electric – 0.89%
                
Calpine Construction Finance Co., L.P.,
                
  Senior Secured First Lien Term Loan
                
  2.989% (1 Month LIBOR USD + 2.00%),
                
  01/15/2025 (a)
    
857,352
      
810,198
  
Frontera Generation Holdings, LLC,
                
  Senior Secured First Lien Term Loan
                
  5.25% (1 Month LIBOR USD + 4.25%,
                
  1.000% Floor), 05/02/2025 (a)
    
618,874
      
461,061
  
Lightstone Holdco, LLC
                
  Senior Secured First Lien Term Loan
                
    4.75% (1 Month LIBOR USD + 3.75%,
                
    1.000% Floor), 01/30/2024 (a)
    
558,304
      
432,686
  
  Senior Secured First Lien Term Loan
                
    4.75% (1 Month LIBOR USD + 3.75%,
                
    1.000% Floor), 01/30/2024 (a)
    
31,489
      
24,404
  
             
1,728,349
  

The accompanying notes are an integral part of these financial statements.
44
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 87.29% – Continued
            
             
Utilities – Gas – 1.26%
            
Brazos Delaware II, LLC, Senior Secured First
            
  Lien Term Loan 4.924% (1 Month LIBOR
            
  USD + 4.00%), 05/21/2025 (a)
  
$
397,913
    
$
209,899
  
Buckeye Partners, L.P., Senior Secured First
                
  Lien Term Loan 4.265% (1 Month LIBOR
                
  USD + 2.75%), 11/02/2026 (a)
    
695,000
      
643,223
  
Lower Cadence Holdings, LLC, Senior Secured
                
  First Lien Term Loan 4.989% (1 Month
                
  LIBOR USD + 4.00%), 05/22/2026 (a)
    
411,888
      
251,251
  
Lucid Energy Group II Borrower, LLC,
                
  Senior Secured First Lien Term Loan
                
  4.00% (1 Month LIBOR USD + 3.00%,
                
  1.000% Floor), 02/18/2025 (a)
    
455,184
      
263,627
  
Northriver Midstream Finance, L.P.,
                
  Senior Secured First Lien Term Loan
                
  5.159% (3 Month LIBOR USD + 3.25%),
                
  10/01/2025 (a)
    
743,675
      
588,745
  
Traverse Midstream Partners, LLC,
                
  Senior Secured First Lien Term Loan
                
  5.00% (1 Month LIBOR USD + 4.00%,
                
  1.000% Floor), 09/27/2024 (a)
    
886,500
      
508,408
  
             
2,465,153
  
TOTAL BANK LOANS
                
  (Cost $198,763,758)
            
170,410,244
  
                 
CORPORATE BONDS – 6.86% (g)
                
                 
Aerospace & Defense – 0.43%
                
Bombardier, Inc. 6.00%, 10/15/2022 (c)(i)
    
344,000
      
260,580
  
Moog, Inc. 4.25%, 12/15/2027 (i)
    
640,000
      
582,400
  
             
842,980
  
                 
Environmental – 0.40%
                
GFL Environmental, Inc.
                
  7.00%, 06/01/2026 (c)(i)
    
250,000
      
244,114
  
Stericycle, Inc. 5.375%, 07/15/2024 (i)
    
535,000
      
533,663
  
             
777,777
  

The accompanying notes are an integral part of these financial statements.
45
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 6.86% (g) – Continued
            
             
Gaming – 0.53%
            
Boyd Gaming Corp. 4.75%, 12/01/2027 (i)
  
$
610,000
    
$
506,636
  
Eldorado Resorts, Inc. 7.00%, 08/01/2023
    
575,000
      
521,097
  
             
1,027,733
  
                 
Healthcare – 1.10%
                
Bausch Health Cos., Inc.
                
  5.50%, 11/01/2025 (c)(i)
    
775,000
      
787,830
  
LifePoint Health, Inc.
                
  4.375%, 02/15/2027 (i)
    
370,000
      
351,315
  
MPH Acquisition Holdings, LLC
                
   7.125%, 06/01/2024 (i)
    
550,000
      
482,642
  
Tenet Healthcare Corp. 5.125%, 05/01/2025
    
555,000
      
534,187
  
             
2,155,974
  
                 
Hotels – 0.19%
                
ESH Hospitality, Inc. 4.625%, 10/01/2027 (i)
    
475,000
      
373,136
  
                 
Leisure & Entertainment – 0.47%
                
NCL Corp., Ltd. 3.625%, 12/15/2024 (c)(i)
    
720,000
      
464,616
  
Six Flags Entertainment Corp.
                
  4.875%, 07/31/2024 (i)
    
25,000
      
21,344
  
Wyndham Destinations, Inc.
                
  4.625%, 03/01/2030 (i)
    
560,000
      
434,350
  
             
920,310
  
                 
Media – Broadcast – 0.22%
                
Cumulus Media New Holdings, Inc.
                
  6.75%, 07/01/2026 (i)
    
485,000
      
436,802
  
                 
Media – Cable – 1.27%
                
Block Communications, Inc.
                
  4.875%, 03/01/2028 (i)
    
535,000
      
500,559
  
CCO Holdings, LLC / CCO Holdings
                
  Capital Corp. 5.25%, 09/30/2022
    
575,000
      
568,008
  
DISH DBS Corp. 5.875%, 07/15/2022
    
1,450,000
      
1,419,782
  
             
2,488,349
  
                 
Non-Food & Drug Retailers – 0.16%
                
QVC, Inc. 4.75%, 02/15/2027
    
350,000
      
310,904
  

The accompanying notes are an integral part of these financial statements.
46
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
CORPORATE BONDS – 6.86% (g) – Continued
            
             
Reits – 0.81%
            
VICI Properties, L.P. / VICI Note Co., Inc.
            
  3.50%, 02/15/2025 (i)
  
$
1,145,000
    
$
1,074,152
  
  3.75%, 02/15/2027 (i)
    
525,000
      
497,766
  
             
1,571,918
  
                 
Support – Services – 0.86%
                
Garda World Security Corp.
                
  4.625%, 02/15/2027 (c)(i)
    
1,200,000
      
1,083,000
  
GEO Group, Inc. 5.125%, 04/01/2023
    
780,000
      
590,850
  
             
1,673,850
  
                 
Technology – 0.20%
                
Presidio Holdings, Inc.
                
  4.875%, 02/01/2027 (i)
    
425,000
      
382,766
  
                 
Telecommunications – Satellites – 0.22%
                
Hughes Satellite Systems Corp.
                
  5.25%, 08/01/2026
    
425,000
      
424,381
  
TOTAL CORPORATE BONDS
                
  (Cost $14,895,928)
            
13,386,880
  
               
   
Shares
          
EQUITIES – 0.03%
                
                 
Media – Broadcast – 0.02%
                
Cumulus Media, Inc. (b)
    
8,437
      
45,728
  
                 
Media Diversified & Services – 0.00%
                
Pacifico, Inc. (b)(e)(h)
    
2,592
      
7,776
  
                 
Oil & Gas – 0.01%
                
Ascent Resources, LLC (b)(e)(h)
    
11,064
      
9,681
  
                 
Utilities – Gas – 0.00%
                
Southcross Energy Partners, L.P. (b)(h)
    
63
      
—
  
Southcross Energy Partners, L.P. (h)
    
63
      
3,780
  
             
3,780
  
TOTAL EQUITIES
                
  (Cost $232,898)
            
66,965
  

The accompanying notes are an integral part of these financial statements.
47
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

         
Fair
  
   
Shares
    
Value
  
             
WARRANTS – 0.01%
            
             
Oil & Gas – 0.01%
            
Ascent Resources, LLC (b)(e)(h)
    
72,369
    
$
9,046
  
Ascent Resources, LLC (b)(e)(h)
    
56,287
      
4,222
  
TOTAL WARRANTS
                
  (Cost $3,672)
            
13,268
  
                 
MONEY MARKET FUND – 2.01%
                
First American Government
                
  Obligations Fund – Class X, 0.43% (d)
    
3,923,821
      
3,923,821
  
TOTAL MONEY MARKET FUND
                
  (Cost $3,923,821)
            
3,923,821
  
Total Investments (Cost $217,820,077) – 96.20%
            
187,801,178
  
Other Assets in Excess of Liabilities – 3.80%
            
7,411,014
  
TOTAL NET ASSETS – 100.00%
          
$
195,212,192
  

Percentages are stated as a percent of net assets.
LIBOR
London Interbank Offered Rate
PLC
Public Limited Company
REIT
Real Estate Investment Trust

(a)
Variable rate securities. The coupon rate shown is the effective interest rate as of March 31, 2020.
(b)
Non-income producing security.
(c)
U.S. traded security of a foreign issuer.
(d)
Rate shown is the 7-day annualized yield as of March 31, 2020.
(e)
Value determined using significant unobservable inputs.
(f)
All or a portion of the loan is unfunded.
(g)
All or a portion is posted as collateral for delayed settlement securities.
(h)
Private securities that may have restrictions on, and/or limited, transferability.  As of March 31, 2020, the value of these investments was $34,505 or 0.02% of total net assets.
(i)
Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “qualified institutional buyers.”  As of March 31, 2020, the value of these investments was $9,017,671 or 4.62% of total net assets.

The accompanying notes are an integral part of these financial statements.
48
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

PORTFOLIO ALLOCATION
March 31, 2020 (Unaudited)


 
% Net
TOP TEN HOLDINGS
Assets
DaVita, Inc. 5.125%, 7/15/2024
1.95%
Dell International, LLC / EMC Corp. 7.125%, 6/15/2024
1.64%
Jaguar Holding Co. II / Pharmaceutical Product Development, LLC
  
  6.375%, 8/1/2023
1.56%
T-Mobile U.S.A., Inc. 6.00%, 3/1/2023
1.56%
Infor U.S., Inc. 6.50%, 5/15/2022
1.53%
Standard Industries, Inc. 5.375%, 11/15/2024
1.41%
T-Mobile U.S.A., Inc. 6.375%, 3/1/2025
1.16%
MGM Resorts International 7.75%, 3/15/2022
1.15%
NCR Corp. 6.375%, 12/15/2023
1.13%
Centene Corp. 4.75%, 1/15/2025
1.11%

The portfolio’s holdings and allocations are subject to change.  The top ten holdings presented exclude the money market fund. The percentages are of total net assets as of March 31, 2020.
49
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f)
            
             
Aerospace & Defense – 2.00%
            
Bombardier, Inc.
            
  8.75%, 12/01/2021 (b)(c)
  
$
4,918,000
    
$
4,121,284
  
  6.00%, 10/15/2022 (b)(c)
    
770,000
      
583,275
  
TransDigm, Inc. 6.50%, 07/15/2024
    
5,470,000
      
5,187,447
  
Triumph Group, Inc. 6.25%, 09/15/2024 (c)
    
1,516,000
      
1,360,709
  
             
11,252,715
  
                 
Automotive – 3.24%
                
Allison Transmission, Inc.
                
  5.00%, 10/01/2024 (c)
    
2,855,000
      
2,790,677
  
American Axle & Manufacturing, Inc.
                
  6.625%, 10/15/2022
    
2,659,000
      
2,229,401
  
Dana, Inc. 5.50%, 12/15/2024
    
2,475,000
      
2,181,106
  
Ford Motor Credit Co., LLC
                
  5.75%, 02/01/2021
    
1,005,000
      
979,875
  
  3.35%, 11/01/2022
    
1,475,000
      
1,382,812
  
Goodyear Tire & Rubber Co.
                
  5.125%, 11/15/2023
    
810,000
      
769,476
  
KAR Auction Services, Inc.
                
  5.125%, 06/01/2025 (c)
    
1,610,000
      
1,547,621
  
Meritor, Inc. 6.25%, 02/15/2024
    
2,195,000
      
2,104,687
  
Penske Automotive Group, Inc.
                
  5.75%, 10/01/2022
    
3,379,000
      
3,150,847
  
  5.375%, 12/01/2024
    
1,300,000
      
1,082,191
  
             
18,218,693
  
                 
Beverage & Food – 1.73%
                
B&G Foods, Inc. 5.25%, 04/01/2025
    
33,000
      
32,403
  
Cott Holdings, Inc. 5.50%, 04/01/2025 (c)
    
3,815,000
      
3,724,413
  
Kraft Heinz Foods Co.
                
  4.875%, 02/15/2025 (c)
    
1,268,000
      
1,271,011
  
TreeHouse Foods, Inc.
                
  6.00%, 02/15/2024 (c)
    
2,136,000
      
2,133,319
  
U.S. Foods, Inc. 5.875%, 06/15/2024 (c)
    
2,785,000
      
2,553,163
  
             
9,714,309
  
                 
Building & Construction – 0.11%
                
Lennar Corp. 6.25%, 12/15/2021
    
602,000
      
605,732
  

The accompanying notes are an integral part of these financial statements.
50
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Building Materials – 1.81%
            
Standard Industries, Inc.
            
  5.375%, 11/15/2024 (c)
  
$
8,145,000
    
$
7,920,768
  
Summit Materials, LLC / Summit Materials
                
  Finance Corp. 6.125%, 07/15/2023
    
2,300,000
      
2,285,625
  
             
10,206,393
  
                 
Chemicals – 3.70%
                
Axalta Coating Systems, LLC
                
  4.875%, 08/15/2024 (c)
    
1,897,000
      
1,832,986
  
Blue Cube Spinco, LLC
                
  9.75%, 10/15/2023
    
3,840,000
      
4,017,485
  
  10.00%, 10/15/2025
    
1,159,000
      
1,230,110
  
NOVA Chemicals Corp.
                
  5.25%, 08/01/2023 (b)(c)
    
2,020,000
      
1,768,813
  
OCI N.V. 6.625%, 04/15/2023 (b)(c)
    
4,161,000
      
3,828,120
  
PQ Corp. 6.75%, 11/15/2022 (c)
    
4,670,000
      
4,728,473
  
W.R. Grace & Co.-Conn.
                
  5.125%, 10/01/2021 (c)
    
3,375,000
      
3,431,531
  
             
20,837,518
  
                 
Consumer Products – 0.99%
                
Central Garden & Pet Co.
                
  6.125%, 11/15/2023
    
1,251,000
      
1,211,900
  
Energizer Holdings, Inc.
                
  5.50%, 06/15/2025 (c)
    
373,000
      
364,143
  
Griffon Corp. 5.25%, 03/01/2022
    
304,000
      
284,993
  
Prestige Brands, Inc.
                
  6.375%, 03/01/2024 (c)
    
2,215,000
      
2,284,230
  
Spectrum Brands, Inc. 6.125%, 12/15/2024
    
1,452,000
      
1,399,358
  
             
5,544,624
  
                 
Environmental – 1.03%
                
Advanced Disposal Services, Inc.
                
  5.625%, 11/15/2024 (c)
    
2,960,000
      
3,022,885
  
Covanta Holding Corp. 5.875%, 03/01/2024
    
1,870,000
      
1,778,828
  
Stericycle, Inc. 5.375%, 07/15/2024 (c)
    
1,026,000
      
1,023,435
  
             
5,825,148
  

The accompanying notes are an integral part of these financial statements.
51
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Finance – Services – 3.56%
            
Credit Acceptance Corp.
            
  5.125%, 12/31/2024 (c)
  
$
392,000
    
$
359,660
  
DAE Funding, LLC
                
  4.00%, 08/01/2020 (c)
    
2,592,000
      
2,562,613
  
  5.75%, 11/15/2023 (c)
    
820,000
      
769,771
  
  5.00%, 08/01/2024 (c)
    
799,000
      
729,064
  
Goeasy, Ltd. 5.375%, 12/01/2024 (b)(c)
    
2,000,000
      
1,876,910
  
Nationstar Mortgage Holdings, Inc.
                
  8.125%, 07/15/2023 (c)
    
3,080,000
      
3,030,889
  
Navient Corp.
                
  6.625%, 07/26/2021
    
390,000
      
402,382
  
  6.50%, 06/15/2022
    
1,175,000
      
1,159,138
  
  5.50%, 01/25/2023
    
1,340,000
      
1,269,650
  
Park Aerospace Holdings, Ltd.
                
  5.25%, 08/15/2022 (b)(c)
    
1,155,000
      
1,045,359
  
Quicken Loans, Inc. 5.75%, 05/01/2025 (c)
    
1,500,000
      
1,501,882
  
Springleaf Finance Corp.
                
  8.25%, 12/15/2020
    
505,000
      
508,409
  
  6.125%, 05/15/2022
    
475,000
      
483,455
  
  6.125%, 03/15/2024
    
1,711,000
      
1,698,219
  
Starwood Property Trust, Inc.
                
  3.625%, 02/01/2021
    
1,775,000
      
1,675,245
  
  3.625%, 02/01/2021 (c)
    
645,000
      
608,751
  
  5.00%, 12/15/2021
    
365,000
      
336,439
  
             
20,017,836
  
                 
Food & Drug Retailers – 1.47%
                
Albertson’s Cos., Inc. / Safeway, Inc. /
                
  New Albertson’s, L.P. / Albertson’s, LLC
                
  3.50%, 02/15/2023 (c)
    
2,030,000
      
2,013,760
  
  6.625%, 06/15/2024
    
1,771,000
      
1,810,794
  
  5.75%, 03/15/2025
    
1,367,000
      
1,393,171
  
Golden Nugget, Inc. 6.75%, 10/15/2024 (c)
    
1,625,000
      
1,035,710
  
Ingles Markets, Inc. 5.75%, 06/15/2023
    
2,001,000
      
2,005,943
  
             
8,259,378
  

The accompanying notes are an integral part of these financial statements.
52
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Gaming – 3.14%
            
Eldorado Resorts, Inc.
            
  7.00%, 08/01/2023
  
$
2,200,000
    
$
1,993,761
  
  6.00%, 04/01/2025
    
3,585,000
      
3,248,924
  
International Game Technology PLC
                
  6.25%, 02/15/2022 (b)(c)
    
5,585,000
      
5,165,287
  
MGM Resorts International
                
  7.75%, 03/15/2022
    
6,482,000
      
6,455,165
  
  6.00%, 03/15/2023
    
850,000
      
825,567
  
             
17,688,704
  
                 
General Industrial Manufacturing – 0.65%
                
Colfax Corp. 6.00%, 02/15/2024 (c)
    
1,241,000
      
1,205,327
  
Enerpac Tool Group Corp.
                
  5.625%, 06/15/2022
    
1,225,000
      
1,143,459
  
WESCO Distribution, Inc.
                
  5.375%, 06/15/2024
    
1,530,000
      
1,313,880
  
             
3,662,666
  
                 
Healthcare – 14.62%
                
Acadia Healthcare Co., Inc.
                
  6.125%, 03/15/2021
    
1,400,000
      
1,363,250
  
  5.125%, 07/01/2022
    
1,150,000
      
1,105,799
  
AMN Healthcare, Inc.
                
  5.125%, 10/01/2024 (c)
    
3,985,000
      
3,870,411
  
Avantor, Inc.
                
  6.00%, 10/01/2024 (c)
    
3,635,000
      
3,831,126
  
  9.00%, 10/01/2025 (c)
    
5,115,000
      
5,416,555
  
Bausch Health Cos., Inc.
                
  6.50%, 03/15/2022 (b)(c)
    
900,000
      
912,375
  
  5.50%, 03/01/2023 (b)(c)
    
1,756,000
      
1,736,236
  
  5.875%, 05/15/2023 (b)(c)
    
826,000
      
823,419
  
  7.00%, 03/15/2024 (b)(c)
    
4,466,000
      
4,577,628
  
  6.125%, 04/15/2025 (b)(c)
    
2,903,000
      
2,877,613
  
Centene Corp.
                
  4.75%, 01/15/2025 (c)
    
6,174,000
      
6,227,992
  
  4.75%, 01/15/2025
    
5,095,000
      
5,139,556
  
  5.25%, 04/01/2025 (c)
    
805,000
      
818,081
  

The accompanying notes are an integral part of these financial statements.
53
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Healthcare – 14.62% – Continued
            
Change Healthcare Holdings, LLC /
            
  Change Healthcare Finance, Inc.
            
  5.75%, 03/01/2025 (c)
  
$
2,100,000
    
$
1,947,687
  
DaVita, Inc. 5.125%, 07/15/2024
    
10,918,000
      
10,953,538
  
Encompass Health Corp.
                
  5.75%, 11/01/2024
    
1,180,000
      
1,192,927
  
Hill-Rom Holdings, Inc.
                
  5.00%, 02/15/2025 (c)
    
2,811,000
      
2,863,692
  
Hologic, Inc. 4.375%, 10/15/2025 (c)
    
655,000
      
652,737
  
Jaguar Holding Co. II / Pharmaceutical
                
  Product Development, LLC
                
  6.375%, 08/01/2023 (c)
    
8,553,000
      
8,766,568
  
Molina Healthcare, Inc.
                
  5.375%, 11/15/2022 (d)
    
6,253,000
      
6,130,066
  
MPT Operating Partnership, L.P. /
                
  MPT Finance Corp. 6.375%, 03/01/2024
    
4,320,000
      
4,336,200
  
Service Corp. International U.S.
                
  5.375%, 05/15/2024
    
589,000
      
600,780
  
Tenet Healthcare Corp.
                
  4.625%, 07/15/2024
    
545,000
      
523,200
  
  4.625%, 09/01/2024 (c)
    
5,360,000
      
5,160,608
  
Teva Pharmaceutical Finance
                
  Netherlands III B.V. 2.20%, 07/21/2021 (b)
    
428,000
      
411,154
  
Universal Health Services, Inc.
                
  4.75%, 08/01/2022 (c)
    
35,000
      
35,065
  
             
82,274,263
  
                 
Hotels – 0.86%
                
ESH Hospitality, Inc. 5.25%, 05/01/2025 (c)
    
3,079,000
      
2,605,619
  
Hilton Domestic Operating Co, Inc.
                
  4.25%, 09/01/2024
    
1,560,000
      
1,472,242
  
RHP Hotel Properties, L.P. /
                
  RHP Finance Corp. 5.00%, 04/15/2023
    
1,000,000
      
788,745
  
             
4,866,606
  

The accompanying notes are an integral part of these financial statements.
54
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Leisure & Entertainment – 1.28%
            
NCL Corp., Ltd.
            
  3.625%, 12/15/2024 (b)(c)
  
$
4,300,000
    
$
2,774,790
  
Six Flags Entertainment Corp.
                
  4.875%, 07/31/2024 (c)
    
1,307,000
      
1,115,858
  
Viking Cruises, Ltd.
                
  6.25%, 05/15/2025 (b)(c)
    
1,365,000
      
885,537
  
Wyndham Destinations, Inc.
                
  5.625%, 03/01/2021
    
1,250,000
      
1,135,875
  
  4.25%, 03/01/2022
    
1,060,000
      
943,060
  
  5.40%, 04/01/2024 (d)
    
435,000
      
371,379
  
             
7,226,499
  
                 
Media – Broadcast – 3.48%
                
AMC Networks, Inc.
                
  4.75%, 12/15/2022
    
718,000
      
700,079
  
  5.00%, 04/01/2024
    
3,620,000
      
3,493,300
  
Nexstar Broadcasting, Inc.
                
  5.625%, 08/01/2024 (c)
    
2,245,000
      
2,127,126
  
Sinclair Television Group, Inc.
                
  5.625%, 08/01/2024 (c)
    
2,163,000
      
2,006,193
  
Sirius XM Radio, Inc.
                
  4.625%, 05/15/2023 (c)
    
982,000
      
978,313
  
  4.625%, 07/15/2024 (c)
    
500,000
      
510,592
  
  5.375%, 04/15/2025 (c)
    
533,000
      
541,659
  
TEGNA, Inc.
                
  4.875%, 09/15/2021 (c)
    
750,000
      
737,812
  
  5.50%, 09/15/2024 (c)
    
789,000
      
752,509
  
Univision Communications, Inc.
                
  6.75%, 09/15/2022 (c)
    
4,650,000
      
4,503,227
  
  5.125%, 05/15/2023 (c)
    
3,615,000
      
3,226,388
  
             
19,577,198
  
                 
Media – Cable – 6.15%
                
CCO Holdings, LLC /
                
  CCO Holdings Capital Corp.
                
  5.375%, 05/01/2025 (c)
    
5,660,000
      
5,838,035
  
  5.75%, 02/15/2026 (c)
    
1,379,000
      
1,404,098
  

The accompanying notes are an integral part of these financial statements.
55
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Media – Cable – 6.15% – Continued
            
CSC Holdings, LLC
            
  6.75%, 11/15/2021
  
$
800,000
    
$
829,400
  
  5.375%, 07/15/2023 (c)
    
6,128,000
      
6,166,269
  
  6.625%, 10/15/2025 (c)
    
1,275,000
      
1,349,945
  
  10.875%, 10/15/2025 (c)
    
4,070,000
      
4,423,581
  
DISH DBS Corp.
                
  6.75%, 06/01/2021
    
4,995,000
      
5,092,203
  
  5.875%, 07/15/2022
    
1,725,000
      
1,689,051
  
Lions Gate Capital Holdings, LLC
                
  6.375%, 02/01/2024 (c)
    
2,942,000
      
2,610,937
  
Netflix, Inc.
                
  5.375%, 02/01/2021
    
1,500,000
      
1,521,375
  
  5.50%, 02/15/2022
    
455,000
      
466,375
  
Virgin Media Finance PLC
                
  5.75%, 01/15/2025 (b)(c)
    
3,310,000
      
3,239,646
  
             
34,630,915
  
                 
Media Diversified & Services – 3.30%
                
Lamar Media Corp. 5.00%, 05/01/2023
    
1,000,000
      
997,470
  
Nielsen Finance, LLC / Nielsen Finance Co.
                
  4.50%, 10/01/2020
    
1,665,000
      
1,621,294
  
  5.50%, 10/01/2021 (b)(c)
    
5,000,000
      
4,933,750
  
  5.00%, 04/15/2022 (c)
    
5,185,000
      
4,807,324
  
Outfront Media Capital, LLC /
                
  Outfront Media Capital Corp.
                
  5.625%, 02/15/2024
    
812,000
      
808,959
  
Quebecor Media, Inc. 5.75%, 01/15/2023 (b)
    
5,310,000
      
5,422,280
  
             
18,591,077
  
                 
Metals & Mining Excluding Steel – 1.10%
                
Arconic, Inc. 5.40%, 04/15/2021
    
1,405,000
      
1,393,655
  
Constellium SE 6.625%, 03/01/2025 (b)(c)
    
1,599,000
      
1,451,044
  
FMG Resources Pty, Ltd.
                
  4.75%, 05/15/2022 (b)(c)
    
2,980,000
      
2,984,738
  
Freeport-McMoRan, Inc.
                
  3.55%, 03/01/2022
    
391,000
      
379,892
  
             
6,209,329
  

The accompanying notes are an integral part of these financial statements.
56
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Non-Food & Drug Retailers – 0.61%
            
LTF Merger Sub, Inc.
            
  8.50%, 06/15/2023 (c)
  
$
1,335,000
    
$
1,106,374
  
QVC, Inc. 4.375%, 03/15/2023
    
2,438,000
      
2,308,782
  
             
3,415,156
  
                 
Packaging – 1.62%
                
Ardagh Packaging Finance PLC /
                
  Ardagh Holdings U.S.A., Inc.
                
  4.25%, 09/15/2022 (b)(c)
    
1,110,000
      
1,116,914
  
  6.00%, 02/15/2025 (b)(c)
    
2,517,000
      
2,542,925
  
Berry Global, Inc.
                
  5.50%, 05/15/2022
    
2,750,000
      
2,729,433
  
  6.00%, 10/15/2022
    
1,148,000
      
1,144,055
  
Graphic Packaging International, LLC
                
  4.875%, 11/15/2022
    
469,000
      
454,197
  
Reynolds Group Issuer, Inc. / Reynolds
                
  Group Issuer, LLC / Reynolds Group
                
  Issuer Lu 5.331% (3 Month LIBOR
                
  USD + 3.50%), 07/15/2021 (a)(c)
    
1,150,000
      
1,129,013
  
             
9,116,537
  
                 
Real Estate Development & Management – 0.14%
                
Newmark Group, Inc. 6.125%, 11/15/2023
    
790,000
      
805,003
  
                 
Reits – 1.36%
                
Kennedy-Wilson, Inc. 5.875%, 04/01/2024
    
3,315,000
      
2,990,694
  
Ladder Capital Finance Holdings, LLLP /
                
  Ladder Capital Finance Corp.
                
  5.875%, 08/01/2021 (c)
    
2,500,000
      
2,121,750
  
  5.25%, 03/15/2022 (c)
    
906,000
      
817,646
  
VICI Properties, L.P. / VICI Note Co., Inc.
                
  3.50%, 02/15/2025 (c)
    
1,865,000
      
1,749,603
  
             
7,679,693
  
                 
Restaurants – 0.90%
                
1011778 B.C., ULC / New Red Finance, Inc.
                
  4.25%, 05/15/2024 (b)(c)
    
1,012,000
      
1,015,790
  

The accompanying notes are an integral part of these financial statements.
57
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Restaurants – 0.90% – Continued
            
KFC Holding Co./Pizza Hut Holdings, LLC/
            
  Taco Bell of America, LLC
            
  5.00%, 06/01/2024 (c)
  
$
2,920,000
    
$
2,879,865
  
Yum! Brands, Inc. 7.75%, 04/01/2025 (c)
    
1,100,000
      
1,157,750
  
             
5,053,405
  
                 
Steel Producers & Products – 0.10%
                
Zekelman Industries, Inc.
                
  9.875%, 06/15/2023 (c)
    
600,000
      
583,125
  
                 
Support – Services – 2.83%
                
Avis Budget Car Rental, LLC / Avis Budget
                
  Finance, Inc. 6.375%, 04/01/2024 (c)
    
187,000
      
151,235
  
Gartner, Inc. 5.125%, 04/01/2025 (c)
    
1,472,000
      
1,448,087
  
Hertz Corp. 7.625%, 06/01/2022 (c)
    
2,798,000
      
2,287,365
  
Iron Mountain, Inc.
                
  6.00%, 08/15/2023
    
5,472,000
      
5,533,588
  
  5.75%, 08/15/2024
    
1,962,000
      
1,966,846
  
Tempo Acquisition, LLC / Tempo Acquisition
                
  Finance Corp. 6.75%, 06/01/2025 (c)
    
1,355,000
      
1,250,028
  
United Rentals North America, Inc.
                
  5.50%, 07/15/2025
    
423,000
      
417,186
  
Williams Scotsman International, Inc.
                
  7.875%, 12/15/2022 (c)
    
2,399,000
      
2,360,463
  
  6.875%, 08/15/2023 (c)
    
537,000
      
493,366
  
             
15,908,164
  
                 
Technology – 5.90%
                
CommScope, Inc. 5.00%, 06/15/2021 (c)
    
214,000
      
213,722
  
Dell International, LLC / EMC Corp.
                
  7.125%, 06/15/2024 (c)
    
8,908,000
      
9,230,915
  
Infor U.S., Inc. 6.50%, 05/15/2022
    
8,736,000
      
8,629,770
  
j2 Cloud Services, LLC /
                
  j2 Cloud Co-Obligor, Inc.
                
  6.00%, 07/15/2025 (c)
    
1,444,000
      
1,442,188
  
NCR Corp.
                
  5.00%, 07/15/2022
    
1,345,000
      
1,269,344
  
  6.375%, 12/15/2023
    
6,425,000
      
6,384,811
  

The accompanying notes are an integral part of these financial statements.
58
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Technology – 5.90% – Continued
            
NortonLifeLock, Inc. 3.95%, 06/15/2022
  
$
1,350,000
    
$
1,352,317
  
PTC, Inc.
                
  6.00%, 05/15/2024
    
775,000
      
802,338
  
  3.625%, 02/15/2025 (c)
    
785,000
      
739,863
  
Solera, LLC / Solera Finance, Inc.
                
  10.50%, 03/01/2024 (c)
    
2,470,000
      
2,436,050
  
VeriSign, Inc. 4.625%, 05/01/2023
    
720,000
      
722,704
  
             
33,224,022
  
                 
Telecommunications – Satellites – 1.01%
                
Hughes Satellite Systems Corp.
                
  7.625%, 06/15/2021
    
5,536,000
      
5,676,947
  
                 
Telecommunications – Wireline/Wireless – 9.03%
                
Altice France SA/France
                
  7.375%, 05/01/2026 (b)(c)
    
1,620,000
      
1,617,084
  
CenturyLink, Inc.
                
  5.625%, 04/01/2020
    
2,584,000
      
2,584,000
  
  5.80%, 03/15/2022
    
1,715,000
      
1,745,613
  
Cogent Communications Group, Inc.
                
  5.625%, 04/15/2021 (c)
    
675,000
      
669,937
  
  5.375%, 03/01/2022 (c)
    
1,470,000
      
1,489,751
  
GCI, LLC
                
  6.625%, 06/15/2024 (c)
    
1,386,000
      
1,384,261
  
  6.875%, 04/15/2025
    
1,439,000
      
1,437,194
  
Level 3 Financing, Inc.
                
  5.375%, 08/15/2022
    
4,001,000
      
4,024,006
  
  5.625%, 02/01/2023
    
3,715,000
      
3,724,176
  
  5.375%, 01/15/2024
    
805,000
      
812,039
  
  5.375%, 05/01/2025
    
529,000
      
529,664
  
SBA Communications Corp.
                
  4.00%, 10/01/2022
    
3,445,000
      
3,469,732
  
Sprint Communications, Inc.
                
  7.00%, 08/15/2020
    
2,750,000
      
2,761,137
  
Sprint Corp.
                
  7.25%, 09/15/2021
    
1,805,000
      
1,870,269
  
  7.875%, 09/15/2023
    
3,235,000
      
3,570,906
  
  7.125%, 06/15/2024
    
3,500,000
      
3,863,668
  

The accompanying notes are an integral part of these financial statements.
59
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Telecommunications – Wireline/Wireless – 9.03% – Continued
            
T-Mobile U.S.A., Inc.
            
  6.00%, 03/01/2023
  
$
8,660,000
    
$
8,761,885
  
  6.375%, 03/01/2025
    
6,365,000
      
6,540,260
  
             
50,855,582
  
                 
Transportation Excluding Air & Rail – 1.52%
                
XPO Logistics, Inc.
                
  6.50%, 06/15/2022 (c)
    
5,341,000
      
5,382,874
  
  6.125%, 09/01/2023 (c)
    
1,850,000
      
1,822,259
  
  6.75%, 08/15/2024 (c)
    
1,383,000
      
1,360,948
  
             
8,566,081
  
                 
Utilities – Electric – 0.83%
                
AES Corp. 4.875%, 05/15/2023
    
1,931,000
      
1,870,647
  
NextEra Energy Operating Partners, L.P.
                
  4.25%, 07/15/2024 (c)
    
441,000
      
432,733
  
  4.25%, 09/15/2024 (c)
    
890,000
      
873,317
  
Vistra Energy Corp. 5.875%, 06/01/2023
    
1,500,000
      
1,507,455
  
             
4,684,152
  
                 
Utilities – Gas – 2.60%
                
Blue Racer Midstream, LLC / Blue Racer
                
  Finance Corp. 6.125%, 11/15/2022 (c)
    
472,000
      
356,520
  
Buckeye Partners, L.P.
                
  4.15%, 07/01/2023
    
377,000
      
328,932
  
  4.125%, 03/01/2025 (c)
    
3,625,000
      
3,083,063
  
Cheniere Energy Partners, L.P.
                
  5.25%, 10/01/2025
    
1,435,000
      
1,330,919
  
Crestwood Midstream Partners, L.P. /
                
  Crestwood Midstream Finance Corp.
                
  6.25%, 04/01/2023
    
1,375,000
      
778,876
  
DCP Midstream Operating, L.P.
                
  4.95%, 04/01/2022
    
2,000,000
      
1,656,872
  
  3.875%, 03/15/2023
    
850,000
      
686,095
  
Genesis Energy, L.P. / Genesis Energy
                
  Finance Corp. 6.00%, 05/15/2023
    
1,550,000
      
1,137,847
  

The accompanying notes are an integral part of these financial statements.
60
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 82.67% (f) – Continued
            
             
Utilities – Gas – 2.60% – Continued
            
NuStar Logistics, L.P.
            
  4.80%, 09/01/2020
  
$
300,000
    
$
263,599
  
  6.75%, 02/01/2021
    
2,900,000
      
2,330,730
  
Sunoco, L.P. / Sunoco Finance Corp.
                
  4.875%, 01/15/2023
    
1,650,000
      
1,590,179
  
Targa Resources Partners, L.P. /
                
  Targa Resources Partners Finance Corp.
                
  6.75%, 03/15/2024
    
1,215,000
      
1,078,276
  
             
14,621,908
  
TOTAL CORPORATE BONDS
                
  (Cost $492,359,136)
            
465,399,378
  
                 
BANK LOANS – 9.06%
                
                 
Aerospace & Defense – 0.29%
                
Transdigm, Inc., Senior Secured First Lien
                
  Term Loan 3.239% (1 Month LIBOR
                
  USD + 2.25%), 12/09/2025 (a)
    
1,787,303
      
1,647,294
  
                 
Building Materials – 0.21%
                
QUIKRETE Holdings, Inc., Senior Secured
                
  First Lien Term Loan 3.489% (1 Month
                
  LIBOR USD + 2.50%), 02/01/2027 (a)
    
1,250,000
      
1,156,250
  
                 
Environmental – 0.31%
                
Granite Acquisition, Inc.,
                
  Senior Secured First Lien Term Loan
                
  4.95% (3 Month LIBOR USD + 3.50%,
                
  1.000% Floor), 12/17/2021 (a)
    
1,790,499
      
1,734,546
  
                 
Finance – Insurance – 0.43%
                
HUB International, Ltd.
                
  Senior Secured First Lien Term Loan
                
    4.387% (2 Month LIBOR USD + 2.75%),
                
    04/25/2025 (a)
    
16,464
      
15,549
  
  Senior Secured First Lien Term Loan
                
    4.551% (2 Month LIBOR USD + 2.75%),
                
    04/25/2025 (a)
    
347,048
      
326,880
  

The accompanying notes are an integral part of these financial statements.
61
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 9.06% – Continued
            
             
Finance – Insurance – 0.43% – Continued
            
U.S.I., Inc., Senior Secured First Lien Term
            
  Loan 3.989% (1 Month LIBOR
            
  USD + 3.00%), 05/16/2024 (a)
  
$
2,242,500
    
$
2,068,706
  
             
2,411,135
  
                 
Finance – Services – 0.87%
                
Deerfield Dakota Holding, LLC,
                
  Senior Secured First Lien Term Loan
                
  4.75% (1 Month LIBOR USD + 3.75%,
                
  1.000% Floor), 04/09/2027 (a)
    
1,335,702
      
1,148,704
  
Deerfield Holdings Corp.,
                
  Senior Secured First Lien Term Loan
                
  4.25% (1 Month LIBOR USD + 3.25%,
                
  1.000% Floor), 02/13/2025 (a)
    
2,450,000
      
2,419,375
  
WEX, Inc., Senior Secured First Lien Term
                
  Loan 3.239% (1 Month LIBOR
                
  USD + 2.25%), 05/15/2026 (a)
    
1,477,833
      
1,299,015
  
             
4,867,094
  
                 
Gaming – 0.55%
                
Eldorado Resorts, Inc., Senior Secured First
                
  Lien Term Loan 3.25%, 04/17/2024 (a)(g)
    
645,000
      
574,856
  
Stars Group Holdings B.V., Senior Secured
                
  First Lien Term Loan 4.95% (3 Month
                
  LIBOR USD + 3.50%), 07/10/2025 (a)
    
2,626,154
      
2,530,956
  
             
3,105,812
  
                 
General Industrial Manufacturing – 0.13%
                
EWT Holdings III Corp., Senior Secured First
                
  Lien Term Loan 3.739% (1 Month LIBOR
                
  USD + 2.75%), 12/20/2024 (a)
    
796,523
      
730,148
  
                 
Healthcare – 1.31%
                
Jaguar Holding Co. II,
                
  Senior Secured First Lien Term Loan
                
  3.50% (1 Month LIBOR USD + 2.50%,
                
  1.000% Floor), 08/18/2022 (a)
    
1,170,487
      
1,127,431
  

The accompanying notes are an integral part of these financial statements.
62
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 9.06% – Continued
            
             
Healthcare – 1.31% – Continued
            
RegionalCare Hospital Partners Holdings, Inc.,
            
  Senior Secured First Lien Term Loan
            
  5.353% (1 Month LIBOR USD + 3.75%),
            
  11/14/2025 (a)
  
$
6,458,310
    
$
6,030,479
  
Verscend Holding Corp., Senior Secured
                
  First Lien Term Loan 5.489% (1 Month
                
  LIBOR USD + 4.50%), 08/27/2025 (a)
    
237,004
      
225,154
  
             
7,383,064
  
                 
Hotels – 0.13%
                
ESH Hospitality, Inc., Senior Secured First
                
  Lien Term Loan 2.989% (1 Month LIBOR
                
  USD + 2.00%), 09/18/2026 (a)
    
804,388
      
723,949
  
                 
Leisure & Entertainment – 0.58%
                
Delta 2 (Lux) S.A.R.L., Senior Secured
                
  First Lien Term Loan
                
  3.50% (1 Month LIBOR USD + 2.50%,
                
  1.000% Floor), 02/01/2024 (a)
    
1,625,890
      
1,467,951
  
Marriott Ownership Resorts, Inc., Senior
                
  Secured First Lien Term Loan
                
  3.353% (1 Month LIBOR USD + 1.75%),
                
  08/29/2025 (a)
    
1,371,176
      
1,220,347
  
Playtika Holding Corp., Senior Secured First
                
  Lien Term Loan 7.072% (6 Month LIBOR
                
  USD + 6.00%, 1.000% Floor), 12/10/2024 (a)
    
634,722
      
598,752
  
             
3,287,050
  
                 
Media – Broadcast – 0.16%
                
Univision Communications, Inc.,
                
  Senior Secured First Lien Term Loan
                
  3.75% (1 Month LIBOR USD + 2.75%,
                
  1.000% Floor), 03/15/2024 (a)
    
1,066,948
      
918,243
  
                 
Media – Cable – 0.29%
                
WideOpenWest Finance, LLC,
                
  Senior Secured First Lien Term Loan
                
  4.25% (1 Month LIBOR USD + 3.25%,
                
  1.000% Floor), 08/18/2023 (a)
    
1,772,287
      
1,652,657
  

The accompanying notes are an integral part of these financial statements.
63
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 9.06% – Continued
            
             
Media Diversified & Services – 1.53%
            
Ancestry.com Operations, Inc., Senior Secured
            
  First Lien Term Loan 5.25% (1 Month
            
  LIBOR USD + 4.25%), 08/27/2026 (a)
  
$
1,050,736
    
$
845,842
  
Financial & Risk U.S. Holdings, Inc.,
                
  Senior Secured First Lien Term Loan
                
  4.239% (1 Month LIBOR USD + 3.25%),
                
  10/01/2025 (a)
    
5,388,400
      
5,202,042
  
Meredith Corp., Senior Secured First Lien
                
  Term Loan 3.489% (1 Month LIBOR
                
  USD + 2.50%), 01/31/2025 (a)
    
1,273,223
      
1,139,535
  
William Morris Endeavor Entertainment, LLC
                
  Senior Secured First Lien Term Loan
                
    3.74% (1 Month LIBOR USD + 2.75%),
                
    05/16/2025 (a)
    
951,113
      
763,268
  
  Senior Secured First Lien Term Loan
                
    4.37% (3 Month LIBOR USD + 2.75%),
                
    05/16/2025 (a)
    
848,887
      
681,232
  
             
8,631,919
  
                 
Support – Services – 1.11%
                
Asurion, LLC
                
  Senior Secured First Lien Term Loan
                
    3.989% (1 Month LIBOR USD + 3.00%),
                
    08/04/2022 (a)
    
428,435
      
410,582
  
  Senior Secured First Lien Term Loan
                
    3.989% (1 Month LIBOR USD + 3.00%),
                
    11/03/2023 (a)
    
183,449
      
177,029
  
  Senior Secured First Lien Term Loan
                
    3.989% (1 Month LIBOR USD + 3.00%),
                
    11/04/2024 (a)
    
1,473,750
      
1,422,169
  
Frontdoor, Inc., Senior Secured First Lien
                
  Term Loan 3.50% (1 Month LIBOR
                
  USD + 2.50%), 08/18/2025 (a)
    
1,438,100
      
1,387,766
  
IRI Holdings, Inc., Senior Secured First Lien
                
  Term Loan 6.113% (3 Month LIBOR
                
  USD + 4.50%), 12/01/2025 (a)
    
706,063
      
565,732
  

The accompanying notes are an integral part of these financial statements.
64
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 9.06% – Continued
            
             
Support – Services – 1.11% – Continued
            
Tempo Acquisition, LLC, Senior Secured First
            
  Lien Term Loan 3.739% (1 Month LIBOR
            
  USD + 2.75%), 05/01/2024 (a)
  
$
1,653,250
    
$
1,501,151
  
Trans Union, LLC, Senior Secured First
                
  Lien Term Loan 2.739% (1 Month LIBOR
                
  USD + 1.75%), 11/13/2026 (a)
    
780,723
      
752,617
  
             
6,217,046
  
                 
Technology – 0.82%
                
MA FinanceCo., LLC, Senior Secured First
                
  Lien Term Loan 3.239% (1 Month LIBOR
                
  USD + 2.25%), 11/19/2021 (a)
    
1,537,914
      
1,464,863
  
Project Alpha Intermediate Holding, Inc.,
                
  Senior Secured First Lien Term Loan
                
  6.13% (3 Month LIBOR USD + 4.25%,
                
  1.000% Floor), 04/26/2024 (a)
    
639,170
      
580,047
  
SolarWinds Holdings, Inc., Senior Secured
                
  First Lien Term Loan 3.739% (1 Month
                
  LIBOR USD + 2.75%), 02/05/2024 (a)
    
2,443,750
      
2,293,056
  
Ultimate Software Group, Senior Secured
                
  First Lien Term Loan 4.739% (1 Month
                
  LIBOR USD + 3.75%), 05/04/2026 (a)
    
294,261
      
277,095
  
             
4,615,061
  
                 
Telecommunications – Wireline/Wireless – 0.34%
                
Zayo Group Holdings, Inc., Senior Secured
                
  First Lien Term Loan 3.989% (1 Month
                
  LIBOR USD + 3.00%), 03/09/2027 (a)
    
851,054
      
808,502
  
GCI Holdings, Inc., Senior Secured
                
  First Lien Term Loan
                
  3.239% (1 Month LIBOR USD + 2.25%,
                
  0.750% Floor), 02/02/2022 (a)
    
1,243,551
      
1,088,107
  
             
1,896,609
  
TOTAL BANK LOANS
                
  (Cost $54,297,184)
            
50,977,877
  

The accompanying notes are an integral part of these financial statements.
65
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
March 31, 2020 (Unaudited)

         
Fair
  
   
Shares
    
Value
  
             
MONEY MARKET FUND – 7.27%
            
First American Government
            
  Obligations Fund – Class X, 0.43% (e)
    
40,954,013
    
$
40,954,013
  
TOTAL MONEY MARKET FUND
                
  (Cost $40,954,013)
            
40,954,013
  
Total Investments (Cost $587,610,333) – 99.00%
            
557,331,268
  
Other Assets in Excess of Liabilities – 1.00%
            
5,621,011
  
TOTAL NET ASSETS – 100.00%
          
$
562,952,279
  

Percentages are stated as a percent of net assets.
LIBOR
London Interbank Offered Rate
PLC
Public Limited Company
REIT
Real Estate Investment Trust

(a)
Variable rate securities. The coupon rate shown is the effective interest rate as of March 31, 2020.
(b)
U.S. traded security of a foreign issuer.
(c)
Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “qualified institutional buyers.”  As of March 31, 2020, the value of these investments was $241,435,406 or 42.89% of total net assets.
(d)
Step-up bond; pays one interest rate for a certain period and a different rate thereafter.  The interest rate of 5.375% for Molina Healthcare, Inc. and 5.40% for Wyndham Destinations, Inc. are the rates in effect as of March 31, 2020 and will continue at the stated rate until maturity.
(e)
Rate shown is the 7-day annualized yield as of March 31, 2020.
(f)
All or a portion is posted as collateral for delayed settlement securities.
(g)
Variable rate security.  Final terms of the bank loan are not yet known, so reference index and spread information may not be presented.

The accompanying notes are an integral part of these financial statements.
66






(This Page Intentionally Left Blank.)






67
SHENKMAN CAPITAL FUNDS

STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2020 (Unaudited)

   
Shenkman
    
Shenkman
  
   
Capital Floating
    
Capital Short
  
   
Rate High
    
Duration High
  
   
Income Fund
    
Income Fund
  
ASSETS:
            
Investments, at value (cost $217,820,077
            
  and $587,610,333, respectively)
  
$
187,801,178
    
$
557,331,268
  
Cash
    
965,067
      
318,608
  
Receivables
                
Securities sold
    
7,849,896
      
5,757,780
  
Interest
    
761,531
      
7,785,337
  
Fund shares sold
    
30,761
      
2,690,777
  
Prepaid expenses
    
24,065
      
61,447
  
Total assets
    
197,432,498
      
573,945,217
  
LIABILITIES:
                
Payables
                
Securities purchased
    
1,910,002
      
8,684,229
  
Fund shares redeemed
    
26,134
      
821,002
  
Distributions payable
    
136,578
      
1,032,405
  
Administration and accounting expenses
    
70,878
      
88,570
  
Advisory fees
    
50,684
      
254,058
  
Audit
    
12,500
      
13,999
  
Transfer agent fees and expenses
    
8,765
      
21,205
  
Compliance fees
    
2,303
      
2,303
  
Printing and mailing
    
2,197
      
5,691
  
Shareholder servicing fees
    
265
      
28,645
  
12b-1 distribution fees
    
—
      
40,831
  
Total liabilities
    
2,220,306
      
10,992,938
  
NET ASSETS
  
$
195,212,192
    
$
562,952,279
  
NET ASSETS CONSIST OF:
                
Capital stock
  
$
236,890,522
    
$
602,386,027
  
Total distributable deficit
    
(41,678,330
)
    
(39,433,748
)
Total net assets
  
$
195,212,192
    
$
562,952,279
  

The accompanying notes are an integral part of these financial statements.
68
SHENKMAN CAPITAL FUNDS

STATEMENTS OF ASSETS AND LIABILITIES – Continued
March 31, 2020 (Unaudited)

   
Shenkman
    
Shenkman
  
   
Capital Floating
    
Capital Short
  
   
Rate High
    
Duration High
  
   
Income Fund
    
Income Fund
  
NET ASSETS
            
Class A:
            
Net assets applicable to outstanding
            
  Class A shares
    
—
    
$
13,787,070
  
Shares issued and outstanding
    
—
      
1,456,368
  
Net asset value, redemption price per share
    
—
    
$
9.47
  
Maximum offering price per share
                
  (net asset value divided by 97.00%)
    
—
    
$
9.76
  
                 
Class C:
                
Net assets applicable to outstanding
                
  Class C shares
    
—
    
$
11,670,540
  
Shares issued and outstanding
    
—
      
1,236,181
  
Net asset value, offering price
                
  and redemption price per share
    
—
    
$
9.44
  
                 
Class F:
                
Net assets applicable to outstanding
                
  Class F shares
  
$
2,641,844
    
$
296,461,628
  
Shares issued and outstanding
    
316,048
      
31,386,222
  
Net asset value, offering price
                
  and redemption price per share
  
$
8.36
    
$
9.45
  
                 
Institutional Class:
                
Net assets applicable to outstanding
                
  Institutional Class shares
  
$
192,570,348
    
$
241,033,041
  
Shares issued and outstanding
    
23,033,606
      
25,493,471
  
Net asset value, offering price
                
  and redemption price per share
  
$
8.36
    
$
9.45
  

The accompanying notes are an integral part of these financial statements.
69
SHENKMAN CAPITAL FUNDS

STATEMENTS OF OPERATIONS
For the Six Months Ended March 31, 2020 (Unaudited)

   
Shenkman
    
Shenkman
  
   
Capital Floating
    
Capital Short
  
   
Rate High
    
Duration High
  
   
Income Fund
    
Income Fund
  
INVESTMENT INCOME:
            
Dividends
  
$
19,146
    
$
—
  
Interest income
    
6,171,157
      
12,436,010
  
Consent and term loan fee income
    
52,525
      
24,209
  
Total investment income
    
6,242,828
      
12,460,219
  
EXPENSES:
                
Investment advisory fees (Note 4)
    
588,441
      
1,684,559
  
Administration and accounting fees (Note 4)
    
204,781
      
270,623
  
Transfer agent fees and expenses (Note 4)
    
23,279
      
69,932
  
Federal and state registration fees
    
15,251
      
37,355
  
Audit fees
    
12,500
      
13,999
  
Trustee fees and expenses
    
8,254
      
9,770
  
Custody fees (Note 4)
    
7,107
      
18,394
  
Chief Compliance Officer fees (Note 4)
    
6,032
      
6,032
  
Reports to shareholders
    
5,704
      
14,188
  
Miscellaneous expenses
    
4,020
      
6,252
  
Legal fees
    
3,095
      
3,153
  
Insurance expense
    
1,978
      
2,887
  
Service fees – Class A (Note 6)
    
—
      
4,392
  
Service fees – Class C (Note 6)
    
—
      
3,232
  
Service fees – Class F (Note 6)
    
143
      
135,517
  
12b-1 distribution fees – Class A (Note 5)
    
—
      
18,822
  
12b-1 distribution fees – Class C (Note 5)
    
—
      
60,793
  
Total expenses before advisory fee waiver
    
880,585
      
2,359,900
  
Advisory fee waiver by Advisor (Note 4)
    
(244,925
)
    
(146,301
)
Net expenses
    
635,660
      
2,213,599
  
NET INVESTMENT INCOME
    
5,607,168
      
10,246,620
  
NET REALIZED AND UNREALIZED LOSS:
                
Net realized loss on investments
    
(5,272,258
)
    
(5,736,545
)
Change in unrealized appreciation/
                
  (depreciation) on investments
    
(24,901,399
)
    
(34,909,615
)
Net realized and unrealized
                
  loss on investments
    
(30,173,657
)
    
(40,646,160
)
NET DECREASE IN NET ASSETS
                
  RESULTING FROM OPERATIONS
  
$
(24,566,489
)
  
$
(30,399,540
)

The accompanying notes are an integral part of these financial statements.
70
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

STATEMENTS OF CHANGES IN NET ASSETS


   
Six Months Ended
        
   
March 31,
    
Year Ended
  
   
2020
    
September 30,
  
   
(Unaudited)
    
2019
  
OPERATIONS:
            
Net investment income
  
$
5,607,168
    
$
12,951,136
  
Net realized loss on investments
    
(5,272,258
)
    
(18,254
)
Change in unrealized appreciation/
                
  (depreciation) on securities
    
(24,901,399
)
    
(6,192,583
)
Net increase/(decrease) in net assets
                
  resulting from operations
    
(24,566,489
)
    
6,740,299
  
DISTRIBUTIONS TO SHAREHOLDERS:
                
Class F
    
(104,500
)
    
(249,103
)
Institutional Class
    
(5,950,972
)
    
(12,670,229
)
Total distributions
    
(6,055,472
)
    
(12,919,332
)
CAPITAL SHARE TRANSACTIONS:
                
Proceeds from shares sold:
                
Class F
    
1,521,317
      
3,308,464
  
Institutional Class
    
21,426,396
      
27,541,873
  
Proceeds from shares issued to
                
  holders in reinvestment of dividends:
                
Class F
    
104,500
      
249,103
  
Institutional Class
    
5,046,928
      
10,929,298
  
Cost of shares redeemed:
                
Class F
    
(4,419,162
)
    
(2,677,668
)
Institutional Class
    
(32,157,991
)
    
(91,218,445
)
Redemption fees retained:
                
Class F
    
2,000
      
—
  
Institutional Class
    
—
      
437
  
Net decrease in net assets derived
                
  from capital share transactions
    
(8,476,012
)
    
(51,866,938
)
TOTAL DECREASE IN NET ASSETS
    
(39,097,973
)
    
(58,045,971
)
NET ASSETS:
                
Beginning of period
    
234,310,165
      
292,356,136
  
End of period
  
$
195,212,192
    
$
234,310,165
  
CHANGES IN SHARES OUTSTANDING:
                
Shares sold:
                
Class F
    
158,473
      
343,878
  
Institutional Class
    
2,290,807
      
2,866,727
  
Shares issued to holders as reinvestment of dividends:
                
Class F
    
11,166
      
26,017
  
Institutional Class
    
541,163
      
1,140,849
  
Shares redeemed:
                
Class F
    
(466,422
)
    
(279,661
)
Institutional Class
    
(3,686,431
)
    
(9,419,486
)
Net decrease in shares outstanding
    
(1,151,244
)
    
(5,321,676
)

The accompanying notes are an integral part of these financial statements.
71
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

STATEMENTS OF CHANGES IN NET ASSETS

   
Six Months Ended
        
   
March 31,
    
Year Ended
  
   
2020
    
September 30,
  
   
(Unaudited)
    
2019
  
OPERATIONS:
            
Net investment income
  
$
10,246,620
    
$
19,837,198
  
Net realized loss on investments
    
(5,736,545
)
    
(2,694,633
)
Change in unrealized appreciation/
                
  (depreciation) on securities
    
(34,909,615
)
    
4,637,230
  
Net increase/(decrease) in net assets
                
  resulting from operations
    
(30,399,540
)
    
21,779,795
  
DISTRIBUTIONS TO SHAREHOLDERS:
                
Class A
    
(245,966
)
    
(440,641
)
Class C
    
(152,714
)
    
(333,324
)
Class F
    
(5,471,860
)
    
(9,099,997
)
Institutional Class
    
(4,754,991
)
    
(9,905,128
)
Total distributions
    
(10,625,531
)
    
(19,779,090
)
CAPITAL SHARE TRANSACTIONS:
                
Proceeds from shares sold:
                
Class A
    
4,841,444
      
5,730,033
  
Class C
    
2,468,050
      
2,756,900
  
Class F
    
122,574,416
      
193,027,454
  
Institutional Class
    
55,889,749
      
85,339,257
  
Proceeds from shares issued to
                
  holders in reinvestment of dividends:
                
Class A
    
83,630
      
202,002
  
Class C
    
53,983
      
140,202
  
Class F
    
1,319,176
      
2,542,038
  
Institutional Class
    
3,453,269
      
7,086,635
  
Cost of shares redeemed:
                
Class A
    
(3,640,993
)
    
(5,713,306
)
Class C
    
(1,460,256
)
    
(2,679,285
)
Class F
    
(96,244,944
)
    
(119,180,169
)
Institutional Class
    
(58,902,448
)
    
(176,387,298
)

The accompanying notes are an integral part of these financial statements.
72
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

STATEMENTS OF CHANGES IN NET ASSETS – Continued

   
Six Months Ended
        
   
March 31,
    
Year Ended
  
   
2020
    
September 30,
  
   
(Unaudited)
    
2019
  
CAPITAL SHARE TRANSACTIONS – Continued:
            
Redemption fees retained:
            
Class A
  
$
5
    
$
47
  
Class F
    
4,222
      
483
  
Institutional Class
    
166
      
5,011
  
Net increase/(decrease) in net assets derived
                
  from capital share transactions
    
30,439,469
      
(7,129,996
)
TOTAL DECREASE IN NET ASSETS
    
(10,585,602
)
    
(5,129,291
)
NET ASSETS:
                
Beginning of period
    
573,537,881
      
578,667,172
  
End of period
  
$
562,952,279
    
$
573,537,881
  
CHANGES IN SHARES OUTSTANDING:
                
Shares sold:
                
Class A
    
481,169
      
571,385
  
Class C
    
246,089
      
276,620
  
Class F
    
12,328,966
      
19,356,238
  
Institutional Class
    
5,590,017
      
8,540,017
  
Shares issued to holders
                
  as reinvestment of dividends:
                
Class A
    
8,416
      
20,275
  
Class C
    
5,451
      
14,113
  
Class F
    
133,193
      
255,609
  
Institutional Class
    
348,181
      
711,949
  
Shares redeemed:
                
Class A
    
(365,658
)
    
(575,494
)
Class C
    
(152,042
)
    
(268,547
)
Class F
    
(9,937,116
)
    
(11,998,115
)
Institutional Class
    
(6,221,987
)
    
(17,776,138
)
Net increase/(decrease) in shares outstanding
    
2,464,679
      
(872,088
)

The accompanying notes are an integral part of these financial statements.
73
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Class F

   
Six Months
                    
   
Ended
                
March 1, 2017*
  
   
March 31,
    
Year Ended
     through  
   
2020
    
September 30,
    
September 30,
  
   
(Unaudited)
    
2019
    
2018
    
2017
  
PER SHARE DATA:
                        
Net asset value, beginning of period
  
$
9.56
    
$
9.80
    
$
9.74
    
$
9.82
  
Income from investment operations:
                                
Net investment income
    
0.22
      
0.50
      
0.44
      
0.22
  
Net realized and unrealized
                                
  gain/(loss) on securities
    
(1.17
)
    
(0.24
)
    
0.05
      
(0.08
)
Total from investment operations
    
(0.95
)
    
0.26
      
0.49
      
0.14
  
Less distributions:
                                
From net investment income
    
(0.25
)
    
(0.50
)
    
(0.43
)
    
(0.22
)
Total distributions
    
(0.25
)
    
(0.50
)
    
(0.43
)
    
(0.22
)
                                 
Net asset value, end of period
  
$
8.36
    
$
9.56
    
$
9.80
    
$
9.74
  
                                 
TOTAL RETURN
    
-10.13
%†
    
2.69
%
    
5.12
%
    
1.46
%†
                                 
SUPPLEMENTAL DATA AND RATIOS:
                                
Net assets, end of period (thousands)
  
$
2,642
    
$
5,856
    
$
5,119
    
$
688
  
Ratio of expenses to average net assets:
                                
Before advisory fee waiver
    
0.76
%‡
    
0.77
%
    
0.76
%
    
0.81
%‡
After advisory fee waiver
    
0.55
%‡
    
0.57
%
    
0.58
%
    
0.64
%‡
Ratio of net investment income
                                
  to average net assets:
                                
Before advisory fee waiver
    
4.52
%‡
    
4.93
%
    
4.31
%
    
3.81
%‡
After advisory fee waiver
    
4.73
%‡
    
5.13
%
    
4.49
%
    
3.98
%‡
Portfolio turnover rate
    
25
%†
    
28
%
    
51
%
    
74
%†

*
Commencement of operations.
†
Not annualized.
‡
Annualized.

The accompanying notes are an integral part of these financial statements.
74
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Institutional Class

   
Six Months
                            
October 15,
  
   
Ended
                            
2014*
   
March 31,
                            
through
  
   
2020
    
Year Ended September 30,
    
September 30,
  
   
(Unaudited)
    
2019
    
2018
    
2017
    
2016
      
2015
  
PER SHARE DATA:
                                      
Net asset value,
                                      
  beginning of period
  
$
9.56
    
$
9.80
    
$
9.75
    
$
9.69
    
$
9.67
    
$
10.00
  
                                                 
Income from
                                                
  investment operations:
                                                
Net investment income
    
0.23
      
0.51
      
0.44
      
0.39
      
0.42
      
0.41
  
Net realized and
                                                
  unrealized gain/(loss)
                                                
  on securities
    
(1.18
)
    
(0.25
)
    
0.04
      
0.06
      
0.01
      
(0.34
)
Total from investment
                                                
  operations
    
(0.95
)
    
0.26
      
0.48
      
0.45
      
0.43
      
0.07
  
                                                 
Less distributions:
                                                
From net
                                                
  investment income
    
(0.25
)
    
(0.50
)
    
(0.43
)
    
(0.39
)
    
(0.41
)
    
(0.40
)
Total distributions
    
(0.25
)
    
(0.50
)
    
(0.43
)
    
(0.39
)
    
(0.41
)
    
(0.40
)
                                                 
Net asset value,
                                                
  end of period
  
$
8.36
    
$
9.56
    
$
9.80
    
$
9.75
    
$
9.69
    
$
9.67
  
                                                 
TOTAL RETURN
    
-10.23
%†
    
2.82
%
  
5.04
 %^    
4.73
%
    
4.63
%
    
0.66
%†
                                                 
SUPPLEMENTAL DATA AND RATIOS:
                                                
Net assets, end of
                                                
  period (thousands)
  
$
192,570
    
$
228,454
    
$
287,237
    
$
316,488
    
$
265,379
    
$
282,591
  
Ratio of expenses
                                                
  to average net assets:
                                                
Before advisory fee waiver
    
0.75
%‡
    
0.74
%
    
0.71
%
    
0.70
%
    
0.71
%
    
0.72
%‡
After advisory fee waiver
    
0.54
%‡
    
0.54
%
    
0.54
%
    
0.54
%
    
0.54
%
    
0.54
%‡
Ratio of net investment
                                                
  income to average net assets:
                                                
Before advisory fee waiver
    
4.56
%‡
    
4.97
%
    
4.24
%
    
3.90
%
    
4.20
%
    
4.26
%‡
After advisory fee waiver
    
4.77
%‡
    
5.17
%
    
4.41
%
    
4.06
%
    
4.37
%
    
4.44
%‡
Portfolio turnover rate
    
25
%†
    
28
%
    
51
%
    
74
%
    
60
%
    
70
%†

*
Commencement of operations.
†
Not annualized.
‡
Annualized.
^
Performance presented includes a 9/30/2017 trade date adjustment to net asset value per share.

The accompanying notes are an integral part of these financial statements.
75
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Class A

   
Six Months
                                
   
Ended
                                
   
March 31,
                                
   
2020
    
Year Ended September 30,
  
   
(Unaudited)
    
2019
    
2018
    
2017
    
2016
    
2015
  
PER SHARE DATA:
                                    
Net asset value,
                                    
  beginning of period
  
$
10.06
    
$
10.00
    
$
10.07
    
$
9.98
    
$
9.91
    
$
10.10
  
                                                 
Income from
                                                
  investment operations:
                                                
Net investment income
    
0.15
      
0.36
      
0.32
      
0.28
      
0.29
      
0.27
  
Net realized and unrealized
                                                
  gain/(loss) on securities
    
(0.58
)
    
0.06
      
(0.07
)
    
0.08
      
0.06
      
(0.14
)
Total from
                                                
  investment operations
    
(0.43
)
    
0.42
      
0.25
      
0.36
      
0.35
      
0.13
  
                                                 
Less distributions:
                                                
From net
                                                
  investment income
    
(0.16
)
    
(0.36
)
    
(0.32
)
    
(0.27
)
    
(0.28
)
    
(0.30
)
From net realized gains
    
—
      
—
      
—
      
—
      
—
      
(0.02
)
Total distributions
    
(0.16
)
    
(0.36
)
    
(0.32
)
    
(0.27
)
    
(0.28
)
    
(0.32
)
                                                 
Net asset value,
                                                
  end of period
  
$
9.47
    
$
10.06
    
$
10.00
    
$
10.07
    
$
9.98
    
$
9.91
  
                                                 
TOTAL RETURN
    
-4.32
%†
    
4.33
%
    
2.56
%
    
3.65
%
    
3.61
%
    
1.25
%
                                                 
SUPPLEMENTAL DATA AND RATIOS:
                                                
Net assets, end of
                                                
  period (thousands)
  
$
13,787
    
$
13,407
    
$
13,160
    
$
12,341
    
$
8,730
    
$
4,853
  
Ratio of expenses
                                                
  to average net assets:
                                                
Before advisory fee waiver
    
1.01
%‡
    
1.03
%
    
1.01
%
    
1.03
%
    
1.24
%
    
1.36
%
After advisory fee waiver
    
0.96
%‡
    
0.96
%
    
0.95
%
    
0.95
%
    
0.98
%
    
1.00
%
Ratio of net investment income
                                                
  to average net assets:
                                                
Before advisory fee waiver
    
3.06
%‡
    
3.61
%
    
3.25
%
    
2.73
%
    
2.69
%
    
2.63
%
After advisory fee waiver
    
3.11
%‡
    
3.68
%
    
3.31
%
    
2.81
%
    
2.95
%
    
2.99
%
Portfolio turnover rate
    
54
%†
    
77
%
    
61
%
    
65
%
    
53
%
    
57
%

†
Not annualized.
‡
Annualized.

The accompanying notes are an integral part of these financial statements.
76
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Class C

   
Six Months
                                
   
Ended
                                
   
March 31,
                                
   
2020
    
Year Ended September 30,
  
   
(Unaudited)
    
2019
    
2018
    
2017
    
2016
    
2015
  
PER SHARE DATA:
                                    
Net asset value,
                                    
  beginning of period
  
$
10.03
    
$
9.97
    
$
10.04
    
$
9.94
    
$
9.88
    
$
10.08
  
                                                 
Income from
                                                
  investment operations:
                                                
Net investment income
    
0.12
      
0.29
      
0.25
      
0.21
      
0.22
      
0.22
  
Net realized and unrealized
                                                
  gain/(loss) on securities
    
(0.58
)
    
0.06
      
(0.07
)
    
0.09
      
0.05
      
(0.17
)
Total from
                                                
  investment operations
    
(0.46
)
    
0.35
      
0.18
      
0.30
      
0.27
      
0.05
  
                                                 
Less distributions:
                                                
From net
                                                
  investment income
    
(0.13
)
    
(0.29
)
    
(0.25
)
    
(0.20
)
    
(0.21
)
    
(0.23
)
From net realized gains
    
—
      
—
      
—
      
—
      
—
      
(0.02
)
Total distributions
    
(0.13
)
    
(0.29
)
    
(0.25
)
    
(0.20
)
    
(0.21
)
    
(0.25
)
                                                 
Net asset value,
                                                
  end of period
  
$
9.44
    
$
10.03
    
$
9.97
    
$
10.04
    
$
9.94
    
$
9.88
  
                                                 
TOTAL RETURN
    
-4.69
%†
    
3.57
%
    
1.80
%
    
3.01
%
    
2.77
%
    
0.45
%
                                                 
SUPPLEMENTAL DATA AND RATIOS:
                                                
Net assets, end of
                                                
  period (thousands)
  
$
11,670
    
$
11,406
    
$
11,112
    
$
11,538
    
$
10,913
    
$
6,142
  
Ratio of expenses
                                                
  to average net assets:
                                                
Before advisory fee waiver
    
1.75
%‡
    
1.77
%
    
1.76
%
    
1.77
%
    
1.99
%
    
2.13
%
After advisory fee waiver
    
1.70
%‡
    
1.70
%
    
1.70
%
    
1.68
%
    
1.73
%
    
1.75
%
Ratio of net investment income
                                                
  to average net assets:
                                                
Before advisory fee waiver
    
2.32
%‡
    
2.87
%
    
2.46
%
    
1.99
%
    
1.95
%
    
1.86
%
After advisory fee waiver
    
2.37
%‡
    
2.94
%
    
2.52
%
    
2.08
%
    
2.21
%
    
2.24
%
Portfolio turnover rate
    
54
%†
    
77
%
    
61
%
    
65
%
    
53
%
    
57
%

†
Not annualized.
‡
Annualized.

The accompanying notes are an integral part of these financial statements.
77
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Class F

   
Six Months
                                
   
Ended
                                
   
March 31,
                                
   
2020
    
Year Ended September 30,
  
   
(Unaudited)
    
2019
    
2018
    
2017
    
2016
    
2015
  
PER SHARE DATA:
                                    
Net asset value,
                                    
  beginning of period
  
$
10.04
    
$
9.97
    
$
10.04
    
$
9.95
    
$
9.88
    
$
10.08
  
                                                 
Income from
                                                
  investment operations:
                                                
Net investment income
    
0.16
      
0.39
      
0.34
      
0.29
      
0.31
      
0.31
  
Net realized and unrealized
                                                
  gain/(loss) on securities
    
(0.58
)
    
0.07
      
(0.07
)
    
0.09
      
0.06
      
(0.17
)
Total from
                                                
  investment operations
    
(0.42
)
    
0.46
      
0.27
      
0.38
      
0.37
      
0.14
  
                                                 
Less distributions:
                                                
From net
                                                
  investment income
    
(0.17
)
    
(0.39
)
    
(0.34
)
    
(0.29
)
    
(0.30
)
    
(0.32
)
From net realized gains
    
—
      
—
      
—
      
—
      
—
      
(0.02
)
Total distributions
    
(0.17
)
    
(0.39
)
    
(0.34
)
    
(0.29
)
    
(0.30
)
    
(0.34
)
                                                 
Net asset value,
                                                
  end of period
  
$
9.45
    
$
10.04
    
$
9.97
    
$
10.04
    
$
9.95
    
$
9.88
  
                                                 
TOTAL RETURN
    
-4.22
%†
    
4.68
%
    
2.81
%
    
3.89
%
    
3.88
%
    
1.41
%
                                                 
SUPPLEMENTAL DATA AND RATIOS:
                                                
Net assets, end of
                                                
  period (thousands)
  
$
296,462
    
$
289,716
    
$
211,941
    
$
139,324
    
$
69,045
    
$
35,917
  
Ratio of expenses
                                                
  to average net assets:
                                                
Before advisory fee waiver
    
0.79
%‡
    
0.80
%
    
0.79
%
    
0.82
%
    
0.98
%
    
1.12
%
After advisory fee waiver
    
0.74
%‡
    
0.73
%
    
0.73
%
    
0.74
%
    
0.73
%
    
0.75
%
Ratio of net investment income
                                                
  to average net assets:
                                                
Before advisory fee waiver
    
3.28
%‡
    
3.83
%
    
3.48
%
    
2.95
%
    
2.95
%
    
2.87
%
After advisory fee waiver
    
3.33
%‡
    
3.90
%
    
3.54
%
    
3.03
%
    
3.20
%
    
3.24
%
Portfolio turnover rate
    
54
%†
    
77
%
    
61
%
    
65
%
    
53
%
    
57
%

†
Not annualized.
‡
Annualized.

The accompanying notes are an integral part of these financial statements.
78
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Institutional Class

 
  
Six Months
                                
   
Ended
                                
   
March 31,
                                
   
2020
    
Year Ended September 30,
  
   
(Unaudited)
    
2019
    
2018
    
2017
    
2016
    
2015
  
PER SHARE DATA:
                                    
Net asset value,
                                    
  beginning of period
  
$
10.05
    
$
9.98
    
$
10.05
    
$
9.96
    
$
9.89
    
$
10.08
  
                                                 
Income from
                                                
  investment operations:
                                                
Net investment income
    
0.17
      
0.40
      
0.36
      
0.30
      
0.31
      
0.33
  
Net realized and unrealized
                                                
  gain/(loss) on securities
    
(0.59
)
    
0.06
      
(0.08
)
    
0.09
      
0.07
      
(0.17
)
Total from
                                                
  investment operations
    
(0.42
)
    
0.46
      
0.28
      
0.39
      
0.38
      
0.16
  
                                                 
Less distributions:
                                                
From net
                                                
  investment income
    
(0.18
)
    
(0.39
)
    
(0.35
)
    
(0.30
)
    
(0.31
)
    
(0.33
)
From net realized gains
    
—
      
—
      
—
      
—
      
—
      
(0.02
)
Total distributions
    
(0.18
)
    
(0.39
)
    
(0.35
)
    
(0.30
)
    
(0.31
)
    
(0.35
)
                                                 
Net asset value,
                                                
  end of period
  
$
9.45
    
$
10.05
    
$
9.98
    
$
10.05
    
$
9.96
    
$
9.89
  
                                                 
TOTAL RETURN
    
-4.18
%†
    
4.77
%
    
2.88
%
    
3.97
%
    
3.97
%
    
1.60
%
                                                 
SUPPLEMENTAL DATA AND RATIOS:
                                                
Net assets, end of
                                                
  period (thousands)
  
$
241,033
    
$
259,009
    
$
342,454
    
$
372,013
    
$
148,831
    
$
64,581
  
Ratio of expenses
                                                
  to average net assets:
                                                
Before advisory fee waiver
    
0.70
%‡
    
0.72
%
    
0.71
%
    
0.73
%
    
0.88
%
    
1.04
%
After advisory fee waiver
    
0.65
%‡
    
0.65
%
    
0.65
%
    
0.65
%
    
0.65
%
    
0.65
%
Ratio of net investment income
                                                
  to average net assets:
                                                
Before advisory fee waiver
    
3.37
%‡
    
3.91
%
    
3.51
%
    
3.04
%
    
3.04
%
    
2.95
%
After advisory fee waiver
    
3.42
%‡
    
3.98
%
    
3.57
%
    
3.12
%
    
3.27
%
    
3.34
%
Portfolio turnover rate
    
54
%†
    
77
%
    
61
%
    
65
%
    
53
%
    
57
%

†
Not Annualized.
‡
Annualized.

The accompanying notes are an integral part of these financial statements.
79
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)

NOTE 1 – ORGANIZATION
 
The Shenkman Capital Short Duration High Income Fund (the “Short Duration High Income Fund”) and the Shenkman Capital Floating Rate High Income Fund (the “Floating Rate High Income Fund”) (each a “Fund” and collectively, the “Funds”) are diversified series of Advisors Series Trust (the “Trust”), which is registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as an open-end management investment company.  The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies.”
 
The Short Duration High Income Fund commenced operations on October 31, 2012. The Floating Rate High Income Fund commenced operations on October 15, 2014. The primary investment objective of the Funds is to seek a high level of current income.  The Short Duration High Income Fund currently offers Class A, Class C, Class F, and Institutional Class shares.  Class F shares became available for purchase on May 17, 2013, while Class C shares became available for purchase on January 28, 2014.
 
The Floating Rate High Income Fund currently offers Class F and Institutional Class shares. Institutional Class shares became available for purchase on October 15, 2014. The initial purchase included a transfer in-kind of securities and cash. The transfer in-kind was nontaxable, whereby the Fund issued 12,794,119 shares on October 15, 2014. The fair value and cost of securities, for tax purposes, received by the Fund was $127,869,966 and $129,652,584, respectively.  In addition, the Fund received $1,871,223 of cash and interest receivable. For financial reporting purposes, assets received, and shares issued by the Fund were recorded at fair value.  Class F shares became available for purchase on March 1, 2017.
 
Each class of shares differs principally in its respective distribution expenses, service fees and sales charges.  Each class of shares has identical rights to earnings, assets and voting privileges, except for class-specific expenses and exclusive rights to vote on matters affecting only individual classes.
 
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
 
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America.
 
Security Valuation – All investments in securities are recorded at their estimated fair value, as described in Note 3.
 
Federal Income Taxes – It is the Funds’ policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to
80
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

regulated investment companies and to distribute substantially all of its taxable income to its shareholders.  Therefore, no Federal income or excise tax provision is required.
 
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities.  The tax returns of the Funds for the prior three fiscal years are open for examination. Management has reviewed all open tax years in major jurisdictions and concluded that there is no impact on the Funds’ net assets and no tax liability resulting from unrecognized tax events relating to uncertain income tax positions taken or expected to be taken on a tax return. The Funds identify their major tax jurisdictions as U.S. Federal and the state of Wisconsin. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
 
Securities Transactions, Income, and Distributions – Securities transactions are accounted for on the trade date.  Securities sold are determined on a specific identification process.  Interest income is recorded on an accrual basis.  Discounts and premiums on securities purchased are accreted/amortized over the life of the respective security.  Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received.  Dividend income and distributions to shareholders are recorded on the ex-dividend date.  Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.
 
Each Fund distributes substantially all of its net investment income, if any, monthly, and net realized capital gains, if any, annually.  The amount of dividends and distributions to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which differ from accounting principles generally accepted in the United States of America.  To the extent these book/tax differences are permanent, such amounts are reclassified within the capital accounts based on their Federal tax treatment.  Distributions from net realized gains for book purposes may include short-term capital gains.  All short-term capital gains are included in ordinary income for tax purposes.
 
Investment income, expenses (other than those specific to the class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of a Fund based upon their relative net assets on the date income is earned or expensed and realized and unrealized gains and losses are incurred.
 
Each Fund is charged for those expenses that are directly attributable to that Fund, such as investment advisory, custody and transfer agent fees.
 
81
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

Expenses that are not attributable to a Fund are typically allocated among the Funds in proportion to their respective net assets.  Common expenses of the Trust are typically allocated among the funds in the Trust based on a fund’s respective net assets, or by other equitable means.
 
Securities Purchased on a When-Issued Basis – The Funds may purchase securities on a when-issued basis, for payment and delivery at a later date, generally within one month. The price and yield are generally fixed on the date of commitment to purchase, and the value of the security is thereafter reflected in the Funds’ NAV. During the period between purchase and settlement, no payment is made by the Funds and no interest accrues to the Funds. At the time of settlement, the market value of the security may be more or less than the purchase price.
 
Redemption Fees – The Funds charge a 1% redemption fee to shareholders who redeem shares held for 30 days or less.  Such fees are retained by the Funds and accounted for as an addition to paid-in capital.  Redemption fees retained are disclosed in the statements of changes.
 
Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 increases and decreases in net assets from operation during the reporting period.  Actual results could differ from those estimates.
 
Reclassification of Capital Accounts – Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting.  These reclassifications have no effect on net assets or net asset value per share.
 
Bridge Loan Commitments – In connection with floating rate loan interests, the Funds may also enter into bridge loan commitments.  Bridge loan commitments may obligate the Funds to furnish temporary financing to a borrower until permanent financing can be arranged. At March 31, 2020, the Funds did not have any outstanding bridge loan commitments.
 
Unfunded Loan Commitments – Unfunded loan commitments are contractual obligations for funding to a borrower.  At March 31, 2020, the Floating Rate High Income Fund and the Short Duration High Income Fund had $41,449 and $0, respectively, in outstanding unfunded loan commitments.
 
Events Subsequent to the Fiscal Period End – In preparing the financial statements as of March 31, 2020, management considered the impact of subsequent events for the potential recognition or disclosure in these financial statements.  Management has determined there were no subsequent events that would need to be disclosed in the Funds' financial statements.
82
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

NOTE 3 – SECURITIES VALUATION
 
The Funds have adopted authoritative fair value accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value, a discussion in changes in valuation techniques and related inputs during the period and expanded disclosure of valuation levels for major security types.  These inputs are summarized in the three broad levels listed below:

 Level 1 –
Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.
   
 Level 2 –
Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
   
 Level 3 –
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

Following is a description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis.
 
Each Fund determines the fair value of its investments and computes its net asset value per share as of the close of regular trading on the New York Stock Exchange (4:00 pm EST).
 
Bank Loan Obligations – Bank loan obligations are valued at market on the basis of valuations furnished by an independent pricing service which utilizes quotations obtained from dealers in bank loans.  These securities will generally be classified in Level 2 of the fair value hierarchy.
 
Debt Securities – Debt securities, such as corporate bonds, asset backed securities, mortgage backed securities, municipal bonds, U.S. Treasuries and U.S. government agency issues are valued at market on the basis of valuations furnished by an independent pricing service which utilizes both dealer-supplied valuations and formula-based techniques.  The pricing service may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, and fundamental data relating to the issuer.  In addition, the
83
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

model may incorporate market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data.  Certain securities are valued principally using dealer quotations.  Debt securities having a maturity of 60 days or less are valued at the evaluated mean between the bid and asked price.  These securities will generally be classified in Level 2 of the fair value hierarchy.
 
Equity Securities – Equity securities that are primarily traded on a national securities exchange shall be valued at the last sale price on the exchange on which they are primarily traded on the day of valuation or, if there has been no sale on such day, at the mean between the bid and asked prices.  Securities primarily traded in the NASDAQ Global Market System for which market quotations are readily available shall be valued using the NASDAQ Official Closing Price (“NOCP”).  If the NOCP is not available, such securities shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the bid and asked prices.  Over-the-counter securities which are not traded in the NASDAQ Global Market System shall be valued at the most recent sales price.
 
Investment Companies – Investments in open-end mutual funds, including money market funds, are generally priced at their net asset value per share provided by the service agent of the funds and will be classified in Level 1 of the fair value hierarchy.
 
Short-Term Securities – Short-term securities having a maturity of less than 60 days are valued at the evaluated mean between bid and asked price.  To the extent the inputs are observable and timely, these securities would be classified in Level 2 of the fair value hierarchy.
 
Restricted Securities – The Funds may invest in securities that are subject to legal or contractual restrictions on resale (“restricted securities”). Restricted securities may be resold in transactions that are exempt from registration under the Federal securities laws. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. The sale or other disposition of these securities may involve additional expenses and the prompt sale of these securities at an acceptable price may be difficult. At March 31, 2020, the Funds held securities issued pursuant to Rule 144A under the Securities Act of 1933. All Rule 144A securities have been classified as liquid under the Funds’ liquidity risk management program.  Other restricted investments held by the Floating Rate High Income Fund at March 31, 2020 are disclosed in the notes to the schedule of investments.  The Short Duration High Income Fund did not hold any other restricted investments at March 31, 2020.
 
The Board of Trustees (“Board”) has delegated day-to-day valuation issues to a Valuation Committee of the Trust which is comprised of representatives
84
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

from the Funds’ administrator, U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”).  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available, or the closing price does not represent fair value by following procedures approved by the Board.  These procedures consider many factors, including the type of security, size of holding, trading volume and news events.  All actions taken by the Valuation Committee are subsequently reviewed and ratified by the Board.
 
Depending on the relative significance of the valuation inputs, fair valued securities may be classified in either Level 2 or Level 3 of the fair value hierarchy.
 
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used to value the Funds’ securities as of March 31, 2020:
 
 Floating Rate High Income Fund
  
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
 Fixed Income
                        
   Bank Loan
                        
     Obligations
  
$
—
    
$
170,410,244
    
$
—
    
$
170,410,244
  
   Corporate Bonds
    
—
      
13,386,880
      
—
      
13,386,880
  
 Total Fixed Income
    
—
      
183,797,124
      
—
      
183,797,124
  
 Equities
                                
   Information
    
45,728
      
—
      
7,776
      
53,504
  
   Mining, Quarrying,
                                
     and Oil and
                                
     Gas Extraction
    
—
      
3,780
      
9,681
      
13,461
  
 Total Equities
    
45,728
      
3,780
      
17,457
      
66,965
  
 Warrants
    
—
      
—
      
13,268
      
13,268
  
 Money Market Fund
    
3,923,821
      
—
      
—
      
3,923,821
  
 Total Investments
  
$
3,969,549
    
$
183,800,904
    
$
30,725
    
$
187,801,178
  
 
  
 Short Duration High Income Fund
  
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
 Fixed Income
                                
   Corporate Bonds
  
$
—
    
$
465,399,378
    
$
—
    
$
465,399,378
  
   Bank Loan
                                
     Obligations
    
—
      
50,977,877
      
—
      
50,977,877
  
 Total Fixed Income
    
—
      
516,377,255
      
—
      
516,377,255
  
 Money Market Fund
    
40,954,013
      
—
      
—
      
40,954,013
  
 Total Investments
  
$
40,954,013
    
$
516,377,255
    
$
—
    
$
557,331,268
  

85
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

Refer to the Funds’ schedules of investments for a detailed break-out of securities.  Transfers between levels are recognized at March 31, 2020, the end of the reporting period.  During the six months ended March 31, 2020, the Funds recognized no transfers between levels.
 
The following is a reconciliation of the Floating Rate High Income Fund’s Level 3 investments for which significant unobservable inputs were used in determining fair value.  The Short Duration High Income Fund did not hold Level 3 investments at March 31, 2020, and as such no reconciliation is presented.
 
Floating Rate High Income Fund
 
Level 3 Reconciliation Disclosure
 
   
Equities
    
Warrants
    
Total
  
 Balance as of September 30, 2019
  
$
42,793
    
$
13,268
    
$
56,061
  
   Change in unrealized appreciation
    
(25,336
)
    
—
      
(25,336
)
 Balance as of March 31, 2020
  
$
17,457
    
$
13,268
    
$
30,725
  
 Change in unrealized appreciation/(depreciation) during
                        
   the period for Level 3 investments held at March 31, 2020
                  
$
(25,336
)
 
The Level 3 investments as of March 31, 2020 represented 0.02% of net assets and did not warrant a disclosure of significant unobservable valuation inputs.
 
In August 2018, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. The changes affect all companies that are required to include fair value measurement disclosures. In general, the amendments in ASU 2018-13 are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt the removed or modified disclosures upon the issuance of ASU 2018-13 and may delay adoption of the additional disclosures, which are required for public companies only, until their effective date. Management is currently evaluating the impact these changes will have on the Funds’ financial statements and disclosures.
 
The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Funds invest depends on future developments,
86
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance.
 
NOTE 4 – INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
 
The Funds have an investment advisory agreement with the Advisor pursuant to which the Advisor is responsible for providing investment management services to each Fund.  The Advisor furnishes all investment advice, office space and facilities, and provides most of the personnel needed by the Funds.  As compensation for its services, the Advisor is entitled to a fee, computed daily and payable monthly, based upon the average daily net assets of the Funds at the annual rates of:
 
 Floating Rate High Income Fund
0.50%
 Short Duration High Income Fund
0.55%

For the six months ended March 31, 2020, the Floating Rate High Income Fund and the Short Duration High Income Fund incurred $588,441 and $1,684,559, respectively, in advisory fees. Advisory fees payable to the Advisor at March 31, 2020 for the Floating Rate High Income Fund and the Short Duration High Income Fund were $50,684 and $254,058, respectively.  The amounts shown on the statements of assets and liabilities are net amounts due to the Advisor.
 
Each Fund is responsible for its own operating expenses, including Rule 12b-1 fees, shareholder servicing plan fees, custodian fees, taxes, transfer agency fees, interest and other customary Fund expenses.  However, the Advisor has contractually agreed to waive all or a portion of its management fees and pay Floating Rate High Income Fund and Short Duration High Income Fund expenses in order to limit each Fund’s total annual operating expenses (excluding acquired fund fees and expenses, taxes, interest expense, dividends on securities sold short, extraordinary expenses, Rule 12b-1 fees, shareholder servicing fees and any other class-specific expenses) to the following amounts of the average daily net assets:
 
 Floating Rate High Income Fund
0.54%
 Short Duration High Income Fund
0.65%

Any such reduction made by the Advisor in its fees or payment of expenses which are the Funds’ obligation are subject to reimbursement by the Funds to the Advisor, if so requested by the Advisor, in any subsequent month in the 36-month period from the date of the management fee reduction and expense payment  if the aggregate amount actually paid by the Funds toward the operating expenses for such fiscal year (taking into account the reimbursement) will not cause a Fund to exceed the lesser of:
87
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

(1) the expense limitation in place at the time of the management fee reduction and expense payment; or (2) the expense limitation in place at the time of the reimbursement.  Any such reimbursement is also contingent upon Board review and approval at the time the reimbursement is made. Such reimbursement may not be paid prior to the Funds’ payment of current ordinary operating expenses. For the six months ended March 31, 2020, the Advisor reduced its fees in the amount of $244,925 for the Floating Rate High Income Fund and in the amount of $146,301 for the Short Duration High Income Fund.  No amounts were reimbursed to the Advisor for either Fund.  The Advisor may recapture portions of the amounts shown below no later than the corresponding dates:
 
   
9/30/2020
    
9/30/2021
    
9/30/2022
    
3/31/2023
    
Total
  
 Floating Rate High
                              
   Income Fund
  
$
257,480
    
$
529,056
    
$
497,929
    
$
244,925
    
$
1,529,390
  
 Short Duration
                                        
   High Income Fund
    
151,873
      
329,549
      
341,150
      
146,301
      
968,873
  

Fund Services serves as the Funds’ administrator, fund accountant and transfer agent. In those capacities Fund Services maintains the Funds’ books and records, calculates the Funds’ NAV, prepares various federal and state regulatory filings, coordinates the payment of fund expenses, reviews expense accruals and prepares materials supplied to the Board.  The officers of the Trust and the Chief Compliance Officer are also employees of Fund Services.  Fees paid by the Funds to Fund Services for these services for the six months ended March 31, 2020 are disclosed in the statements of operations.
 
U.S. Bank N.A. serves as custodian (the “Custodian”) to the Funds.  Fees paid by the Funds to U.S. Bank N.A. for custody services for the six months ended March 31, 2020 are disclosed in the statements of operations.  The Custodian is an affiliate of Fund Services.
 
Quasar Distributors, LLC (“Quasar” or the “Distributor”) acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares.  The Distributor was an affiliate of Fund Services. Effective March 31, 2020, Foreside Financial Group, LLC (“Foreside”) acquired Quasar from U.S. Bancorp.  As a result of the acquisition, Quasar became a wholly-owned broker-dealer subsidiary of Foreside and is no longer affiliated with U.S. Bancorp.  The Board of Trustees of the Funds have approved a new distribution agreement to enable Quasar to continue serving as the Funds’ Distributor.
 
NOTE 5 – DISTRIBUTION AGREEMENT AND PLAN
 
The Short Duration High Income Fund adopted a Distribution Plan pursuant to Rule 12b-1 (the “Plan”).  The Plan permits the Short Duration High Income Fund to pay for distribution and related expenses at an annual rate of
88
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

up to 0.25% of the average daily net assets of the Short Duration High Income Fund’s Class A shares and up to 1.00% of the average daily net assets of the Short Duration High Income Fund’s Class C shares.  The expenses covered by the Plan may include the cost in connection with the promotion and distribution of shares and the provision of personal services to shareholders, including, but not necessarily limited to, advertising, compensation to underwriters, dealers and selling personnel, the printing and mailing of prospectuses to other than current Fund shareholders, and the printing and mailing of sales literature.  Payments made pursuant to the Plan will represent compensation for distribution and service activities, not reimbursements for specific expenses incurred.  For the six months ended March 31, 2020, the Short Duration High Income Fund incurred distribution expenses on its Class A and Class C shares of $18,822 and $60,793, respectively.
 
NOTE 6 – SHAREHOLDER SERVICING FEE
 
The Funds entered into a shareholder servicing agreement (the “Agreement”) with the Advisor, under which the Advisor will provide, or arrange for others to provide, certain specified shareholder services.  As compensation for the provision of shareholder services, the Funds may pay servicing fees at an annual rate of up to 0.10% of the average daily net assets of the Class A, Class C, and Class F shares. Payments to the Advisor under the Agreement may reimburse the Advisor for payments it makes to selected brokers, dealers and administrators which have entered into service agreements with the Advisor for services provided to shareholders of the Funds.  The services provided by such intermediaries are primarily designed to assist shareholders of each Fund and include the furnishing of office space and equipment, telephone facilities, personnel, and assistance to the Funds in servicing such shareholders.  Services provided by such intermediaries also include the provision of support services to the Funds and include establishing and maintaining shareholders’ accounts and record processing, purchase and redemption transactions, answering routine client inquiries regarding the Funds, and providing such other personal services to shareholders as the Funds may reasonably request. For the six months ended March 31, 2020, the Floating Rate High Income Fund’s Class F shares incurred $143 in shareholder servicing fees. For the six months ended March 31, 2020, the Class A, Class C and Class F shares of the Short Duration High Income Fund incurred $4,392, $3,232 and $135,517, respectively, in shareholder servicing fees.
 
NOTE 7 – PURCHASES AND SALES OF SECURITIES
 
For the six months ended March 31, 2020, the cost of purchases and the proceeds from sales of securities (excluding short-term securities) were as follows:
 
   
Purchases
    
Sales
  
 Floating Rate High Income Fund
  
$
55,644,930
    
$
72,463,961
  
 Short Duration High Income Fund
    
320,214,880
      
312,639,129
  

89
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

The Funds had no purchases or sales of U.S. Government obligations during the six months ended March 31, 2020.  The Floating Rate High Income Fund and the Short Duration High Income Fund had $0 and $9,861,250, respectively, in Rule 17a-7 transactions during the six months ended March 31, 2020.
 
NOTE 8 – CONTROL OWNERSHIP
 
The beneficial ownership, either directly or indirectly of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the 1940 Act.  As of March 31, 2020, each Fund's percentage of control ownership positions greater than 25% are as follows:
 
 
Floating Rate High Income Fund
 
Class F
Institutional Class
 UBS WM U.S.A.
73%
—
 National Financial Services, LLC
—
41%

 
Short Duration High Income Fund
 
Class A
Class C
Class F
Institutional Class
 Merrill Lynch Pierce
        
   Fenner & Smith
54%
67%
76%
—
 UBS WM U.S.A.
—
30%
—
—
 Charles Schwab & Co., Inc.
—
—
—
36%
 National Financial
        
   Services, LLC
—
—
—
29%

NOTE 9 – LINES OF CREDIT
 
The Floating Rate High Income Fund and the Short Duration High Income Fund have lines of credit in the amount of $40,000,000 and $120,000,000, respectively.  These lines of credit are intended to provide short-term financing, if necessary, subject to certain restrictions, in connection with shareholder redemptions. The credit facility is with the Funds’ custodian, U.S. Bank N.A.  During the six months ended March 31, 2020, the Floating Rate High Income had an outstanding average day balance of $318,142, a weighted average interest rate of 3.25% and paid $0 in interest.  The maximum amount outstanding was $9,013,000.  The Short Duration High Income Fund did not draw upon its line of credit during the six months ended March 31, 2020.  At March 31, 2020, neither of the Funds had any outstanding loan amounts.
90
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

NOTE 10 – INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
 
As of September 30, 2019, the Funds’ most recent fiscal year end, the components of accumulated earnings/(losses) on a tax basis were as follows:
 
   
Floating Rate
    
Short Duration
  
   
High Income Fund
    
High Income Fund
  
 Cost of investments(a)
  
$
242,366,912
    
$
564,683,281
  
 Gross unrealized appreciation
    
1,578,371
      
5,407,055
  
 Gross unrealized depreciation
    
(6,673,422
)
    
(778,815
)
 Net unrealized appreciation/
                
   (depreciation)(a)
    
(5,095,051
)
    
4,628,240
  
 Undistributed ordinary income
    
621,780
      
1,262,524
  
 Total distributable earnings
    
621,780
      
1,262,524
  
 Other accumulated losses
    
(6,583,098
)
    
(4,299,441
)
 Total accumulated earnings/(losses)
  
$
(11,056,369
)
  
$
1,591,323
  

  (a)
Any differences between book basis and tax basis net unrealized appreciation/(depreciation) and cost are attributable primarily to the tax deferral of losses on wash sales adjustments.

At September 30, 2019, the Funds had tax basis capital losses to offset future gains as follows:
 
 
Capital Loss Carryover
    
 
Long-Term
Short-Term
Total
Expiration Date
  Floating Rate High
        
    Income Fund
$5,018,583
$1,417,945
$6,436,528
No Expiration
  Short Duration High
        
    Income Fund
2,288,445
1,106,210
3,394,655
No Expiration

The tax character of distributions paid during the six months ended March 31, 2020 and the year ended September 30, 2019 was as follows:
 
 Floating Rate High Income Fund
    
 
Six Months Ended
Year Ended
 
March 31, 2020
September 30, 2019
 Ordinary income
$6,055,472
$12,919,332
 Total distributions paid
$6,055,472
$12,919,332
     
 Short Duration High Income Fund
    
 
Six Months Ended
Year Ended
 
March 31, 2020
September 30, 2019
 Ordinary income
$10,625,531
$19,779,090
 Total distributions paid
$10,625,531
$19,779,090

91
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

The Funds designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax year ended September 30, 2019.
 
NOTE 11 – PRINCIPAL RISKS
 
Below is a summary of some, but not all, of the principal risk of investing in the Funds, each of which may adversely affect a Fund’s net asset value and total return. The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks. The following risks apply to both Funds.
 
Bank Loan Risk. The Funds’ investments in secured and unsecured assignments of (or participations in) bank loans may create substantial risk. In making investments in bank loans, which are made by banks or other financial intermediaries to borrowers, the Funds will depend primarily upon the creditworthiness of the borrower, whose financial condition may be troubled or highly leveraged, for payment of principal and interest. When the Funds are a participant in a loan, the Funds have no direct claim on the loan and would be a creditor of the lender, and not the borrower, in the event of a borrower’s insolvency or default. Transactions involving floating rate loans have significantly longer settlement periods (e.g., longer than seven days) than more traditional investments and, as a result, sale proceeds related to the sale of loans may not be available to make additional investments or to meet the Funds’ redemption obligations until potentially a substantial period after the sale of the loans. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans have less protection against improper practices than investors in registered securities.
 
LIBOR Risk. The Funds invest in certain debt securities, derivatives or other financial instruments that utilize the London Inter-bank Offered Rate, or “LIBOR,” as a “benchmark” or “reference 3 rate” for variable interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, global consensus is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include enhanced provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR may lead to increased volatility and illiquidity in markets that are tied to LIBOR, decreased values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Funds’ performance or net asset
92
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

value.  Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.
 
Credit Risk. The issuers of the bonds and other debt instruments held by the Funds may not be able to make interest or principal payments.
 
High Yield Risk. High yield debt obligations, including bonds and loans, rated below BBB by S&P or Baa by Moody’s (commonly referred to as “junk bonds”) typically carry higher coupon rates than investment grade securities, but also are described as speculative by both S&P and Moody’s and may be subject to greater market price fluctuations, less liquidity and greater risk of loss of income or principal including greater possibility of default and bankruptcy of the issuer of such instruments than more highly rated bonds and loans.
 
Interest Rate Risk. The Funds’ investments in fixed-income instruments will change in value based on changes in interest rates. When interest rates decline, the value of a portfolio invested in fixed-rate obligations can be expected to rise. Conversely, when interest rates rise, the value of a portfolio investment in fixed-rate obligations can be expected to decline. Although the value of the Funds’ investments will vary, the Funds invest primarily in floating rate instruments, which should minimize fluctuations in value as a result of changes in market interest rates. However, because floating rates on loans and other instruments only reset periodically, changes in prevailing interest rates can still be expected to cause some fluctuation in the value of the Funds. Similarly, it is likely there will be less governmental action in the near future to maintain low interest rates. The negative impact on fixed income securities from the resulting rate increases for that and other reasons could be swift and significant, which could cause a decline in the value of the Funds’ portfolio. Other economic factors (such as large downward movement in stock prices, a disparity in supply and demand of certain securities or market conditions that reduce liquidity) can also adversely impact the markets for loans and other debt obligations. Rating downgrades of holdings or their issuers will generally reduce the value of such holdings. Consequently, changes in the values of the Funds’ portfolio likely will cause fluctuation in the value of each partner’s capital account.
 
Investment Risk. The Funds invest primarily in high yield debt obligations issued by companies that may have significant risks as a result of business, financial, market or legal uncertainties.  There can be no assurance that the Advisor will correctly evaluate the nature and magnitude of the various factors that could affect the value of, and return on, the Funds’ investments.
93
SHENKMAN CAPITAL FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
March 31, 2020 (Unaudited)

Liquidity Risk – Low or lack of trading volume may make it difficult to sell securities held by the Funds at quoted market prices. The Funds’ investments may at any time consist of significant amounts of securities that are thinly traded or for which no market exists. For example, the investments held by a Fund may not be liquid in all circumstances so that, in volatile markets, the Advisor may not be able to close out a position without incurring a loss. The foregoing risks may be accentuated when the Funds are required to liquidate positions to meet withdrawal requests. Additionally, floating rate loans generally are subject to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when the Funds need to liquidate such loans. High yield bonds and loans generally trade only in the over-the-counter market rather than on an organized exchange and may be more difficult to purchase or sell at a fair price, which could have a negative impact on a Fund’s performance.
 
Market and Regulatory Risk. Events in the financial markets and economy may cause volatility and uncertainty and adversely impact the Funds’ performance. Market events may affect a single issuer, industry, sector, or the market as a whole. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions, including tax law changes, may also impair portfolio management and have unexpected or adverse consequences on particular markets, strategies, or investments. The Funds’ investments may decline in value due to factors affecting individual issuers (such as the results of supply and demand), or sectors within the securities markets. The value of a security or other investment also may go up or down due to general market conditions that are not specifically related to a particular issuer, such as real or perceived adverse economic conditions, changes in interest rates or exchange rates, or adverse investor sentiment generally. In addition, unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.
 
Rule 144A Securities Risk. The market for Rule 144A securities typically is less active than the market for publicly-traded securities. Rule 144A securities carry the risk that the liquidity of these securities may become impaired, making it more difficult for the Funds to sell these bonds.
94
SHENKMAN CAPITAL FUNDS

APPROVAL OF INVESTMENT ADVISORY AGREEMENT


At meetings held on October 23-24 and December 4-5, 2019, the Board (which was at the time comprised of five persons, all of whom were Independent Trustees as defined under the Investment Company Act of 1940, as amended), considered and approved, for another annual term, the continuance of the investment advisory agreement (the “Advisory Agreement”) between Advisors Series Trust (the “Trust”) and Shenkman Capital Management, Inc. (the “Advisor”) on behalf of the Shenkman Capital Short Duration High Income Fund (the “Short Duration Fund”) and the Shenkman Capital Floating Rate High Income Fund (the “Floating Rate Fund”) (each, a “Fund,” and together, the “Funds”).  At both meetings, the Board received and reviewed substantial information regarding the Funds, the Advisor, and the services provided by the Advisor to the Funds under the Advisory Agreement.  This information, together with the information provided to the Board throughout the course of the year, formed the primary (but not exclusive) basis for the Board’s determinations.  Below is a summary of the factors considered by the Board and the conclusions that formed the basis for the Board’s approval of the continuance of the Advisory Agreement:
 
 
1.
THE NATURE, EXTENT AND QUALITY OF THE SERVICES PROVIDED AND TO BE PROVIDED BY THE ADVISOR UNDER THE ADVISORY AGREEMENT.  The Board considered the nature, extent and quality of the Advisor’s overall services provided to the Funds, as well as its specific responsibilities in all aspects of day-to-day investment management of the Funds. The Board considered the qualifications, experience and responsibilities of the portfolio managers, as well as the responsibilities of other key personnel of the Advisor involved in the day-to-day activities of the Funds.  The Board also considered the resources and compliance structure of the Advisor, including information regarding its compliance program, its chief compliance officer and the Advisor’s compliance record, as well as the Advisor’s cybersecurity program and business continuity plan, and risk management process.  The Board also considered the prior relationship between the Advisor and the Trust, as well as the Board’s knowledge of the Advisor’s operations, and noted that during the course of the prior year they had met with certain personnel of the Advisor in person to discuss the Funds’ performance and investment outlook as well as various marketing and compliance topics.  The Board concluded that the Advisor had the quality and depth of personnel, resources, investment processes, and compliance policies and procedures essential to performing its duties under the Advisory Agreement and that they were satisfied with the nature, overall quality and extent of such management services.

95
SHENKMAN CAPITAL FUNDS

APPROVAL OF INVESTMENT ADVISORY AGREEMENT – Continued


 
2.
THE FUNDS’ HISTORICAL PERFORMANCE AND THE OVERALL PERFORMANCE OF THE ADVISOR.  In assessing the quality of the portfolio management delivered by the Advisor, the Board reviewed the performance of each Fund as of June 30, 2019 on both an absolute basis and in comparison to its peer funds utilizing Morningstar classifications and appropriate securities market benchmarks.  While the Board considered both short-term and long-term performance, it placed greater emphasis on longer term performance.  When reviewing performance against the comparative peer group universe, the Board took into account that the investment objectives and strategies of each Fund, as well as its level of risk tolerance, may differ significantly from funds in the peer universe.
     
   
Short Duration Fund: The Board noted that the Fund underperformed the peer group median of its Morningstar comparative universe for the one-, three-, and five-year periods.  The Board also reviewed the performance of the Fund against a broad-based securities market benchmark, noting that it had outperformed its primary benchmark over the one-, three-, and five-year periods. The Board also noted that the Fund underperformed its secondary benchmark index for the one-, three- and five-year periods.
     
   
The Board also considered any differences in performance between the Advisor’s similarly managed accounts and the performance of the Fund, noting that the Fund had underperformed the similarly managed account composite for the one-year period and outperformed for the three- and five-year periods.
     
   
Floating Rate Fund: The Board noted that the Fund underperformed the peer group median of its Morningstar comparative universe for the one- and three-year periods. The Board also reviewed the performance of the Fund against a broad-based securities market benchmark, noting that it had underperformed its primary benchmark over the one- and three-year periods. The Board also noted that the Fund outperformed its secondary benchmark index for the one-year period and underperformed for the three-year period.
     
   
The Board also considered any differences in performance between similarly managed accounts and the performance of the Fund, noting that the Fund outperformed the similarly managed account composite for the one- and three-year periods ended June 30, 2019.
     
 
3.
THE COSTS OF THE SERVICES TO BE PROVIDED BY THE ADVISOR AND THE STRUCTURE OF THE ADVISOR’S FEE UNDER THE ADVISORY AGREEMENT.  In considering each Fund’s advisory fee and total fees and expenses, the Board reviewed comparisons to the peer funds and the Advisor’s similarly managed separate accounts for other

96
SHENKMAN CAPITAL FUNDS

APPROVAL OF INVESTMENT ADVISORY AGREEMENT – Continued


   
types of clients, as well as all expense waivers and reimbursements.  When reviewing fees charged to other separately managed accounts, the Board took into account the type of account and the differences in the management of that account that might be germane to the difference, if any, in the fees charged to such accounts.
     
   
Short Duration Fund: The Board noted that the Advisor had contractually agreed to maintain annual expense ratios for the Fund of 1.00% for Class A shares, 1.75% for Class C shares, 0.75% for Class F shares, and 0.65% for Institutional Class shares (the “Expense Caps”).  The Board noted that the Fund’s total expense ratios, with regard to the Institutional Class shares was below the peer group median and average, the Class F shares was slightly above the peer group median and equal to the peer group average, and that the Class A shares and Class C shares were above the peer group median and average.  Additionally, the Board noted that when the Fund’s peer group was adjusted to include only funds with similar asset sizes, the Fund’s total expense ratios, with regard to the Institutional Class shares was below the peer group median and average, and the Class F shares, Class A shares and Class C shares were above the peer group median and average.  The Board noted that the Fund’s contractual advisory fee was below its peer group median and average, and that the contractual advisory fee was below the peer group median and average when the Fund’s peer group was adjusted to include only funds with similar asset sizes.  The Board also took into consideration the services the Advisor provides to its similarly managed account clients, comparing the fees charged for those management services to the management fees charged to the Fund.  The Board found that the management fees charged to the Fund were generally within the range of the fees charged to the Advisor’s similarly managed account clients and that to the extent fees charged to the Fund were higher than for similarly managed accounts, it was largely a reflection of the nature of the client and services provided.
     
   
Floating Rate Fund:  The Board noted that the Advisor had contractually agreed to maintain annual expense ratios for the Fund of 0.54% for Institutional Class shares and 0.64% for Class F shares (the “Expense Caps”) and that the Fund’s Class A and Class C shares were not active.  The Board noted that the Fund’s total expense ratios for Institutional Class shares and Class F shares were below the peer group median and average.  Additionally, the Board noted that when the Fund’s peer group was adjusted to include only funds with similar asset sizes, the Fund’s total expense ratios for the Institutional Class shares and Class F shares were below the peer group median and average.  The Board noted that the Fund’s contractual advisory fee was below its peer group median and average and below the peer group

97
SHENKMAN CAPITAL FUNDS

APPROVAL OF INVESTMENT ADVISORY AGREEMENT – Continued


   
median and average when the Fund’s peer group was adjusted to include only funds with similar asset sizes.  The Board also considered that after advisory fee waivers and the payment of Fund expenses necessary to maintain the Expense Caps, the advisory fees received by the Advisor from the Fund were significantly below the peer group median and average. The Board also took into consideration the services the Advisor provides to its similarly managed account clients, comparing the fees charged for those management services to the management fees charged to the Fund.  The Board found that the management fees charged to the Fund were generally within the range of the fees charged to the Advisor’s similarly managed account clients and that to the extent fees charged to the Fund were higher than for similarly managed accounts, it was largely a reflection of the nature of the client and services provided.
     
   
The Board determined that it would continue to monitor the appropriateness of the advisory fees for the Funds and concluded that, at this time, the fees to be paid to the Advisor were fair and reasonable.
     
 
4.
ECONOMIES OF SCALE.  The Board also considered whether economies of scale were being realized by the Advisor that should be shared with shareholders.  The Board further noted that the Advisor has contractually agreed to reduce its advisory fees or reimburse Fund expenses so that the Funds do not exceed the specified Expense Caps.  The Board noted that at current asset levels, it did not appear that there were additional significant economies of scale being realized by the Advisor that should be shared with shareholders and concluded that it would continue to monitor economies of scale in the future as circumstances changed and assuming asset levels continued to increase.
     
 
5.
THE PROFITS TO BE REALIZED BY THE ADVISOR AND ITS AFFILIATES FROM THEIR RELATIONSHIP WITH THE FUNDS.  The Board reviewed the Advisor’s financial information and took into account both the direct benefits and the indirect benefits to the Advisor from advising the Funds.  The Board considered the profitability to the Advisor from its relationship with the Funds and considered any additional benefits derived by the Advisor from its relationship with the Funds, such as Rule 12b-1 fees and shareholder servicing plan fees received from the Class A and Class C shares of the Short Duration Fund.  The Board also considered that the Funds do not generate “soft dollar” benefits that may be used by the Advisor in exchange for Fund brokerage.  The Board also reviewed information indicating that Fund shareholders may also have separate accounts with the Advisor but that the Advisor would refund advisory fees charged at the Fund-level to the similarly managed accounts, and therefore the Advisor was not

98
SHENKMAN CAPITAL FUNDS

APPROVAL OF INVESTMENT ADVISORY AGREEMENT – Continued


   
receiving additional fall-out benefits from these relationships.  After such review, the Board determined that the profitability to the Advisor with respect to the Advisory Agreement was not excessive, and that the Advisor had maintained adequate profit levels to support the services it provides to the Funds.
     
No single factor was determinative of the Board’s decision to approve the continuance of the Advisory Agreement for the Short Duration Fund and the Floating Rate Fund, but rather the Trustees based their determination on the total mix of information available to them.  Based on a consideration of all the factors in their totality, the Trustees determined that the advisory arrangement with the Advisor, including the advisory fees, was fair and reasonable to the Funds.  The Board, including a majority of the Independent Trustees, therefore determined that the continuance of the Advisory Agreement for the Short Duration Fund and the Floating Rate Fund would be in the best interest of each Fund and its shareholders.
99
SHENKMAN CAPITAL FUNDS

NOTICE TO SHAREHOLDERS
March 31, 2020 (Unaudited)

How to Obtain a Copy of the Funds’ Proxy Voting Policies
 
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-855-SHENKMAN (1-855-743-6562) or on the U.S. Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
 
How to Obtain a Copy of the Funds’ Proxy Voting Records for the 12-Month Period Ended June 30
 
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-855-SHENKMAN (1-855-743-6562). Furthermore, you can obtain the Funds’ proxy voting records on the SEC’s website at http://www.sec.gov.
 
Quarterly Filings on Form N-Q and Form N-PORT
 
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q or Part F of Form N-PORT (beginning with filings after March 31, 2020). The Funds’ Form N-Q and Form N-PORT are available on the SEC’s website at http://www.sec.gov. Information included in the Funds’ Form N-Q and Form N-PORT is also available, upon request, by calling 1-855-SHENKMAN (1-855-743-6562).
 
Householding
 
In an effort to decrease costs, the Funds intend to reduce the number of duplicate prospectuses, annual and semi-annual reports, proxy statements and other similar documents you receive by sending only one copy of each to those addresses shared by two or more accounts and to shareholders the Transfer Agent reasonably believes are from the same family or household.  Once implemented, if you would like to discontinue householding for your accounts, please call toll-free at 1-855-SHENKMAN (1-855-743-6562) to request individual copies of these documents.  Once the Transfer Agent receives notice to stop householding, the Transfer Agent will begin sending individual copies thirty days after receiving your request.  This policy does not apply to account statements.
100
SHENKMAN CAPITAL FUNDS

PRIVACY NOTICE


The Funds collect non-public information about you from the following sources:
 
 
•
Information we receive about you on applications or other forms;
     
 
•
Information you give us orally; and/or
     
 
•
Information about your transactions with us or others.

We do not disclose any non-public personal information about our customers or former customers without the customer’s authorization, except as permitted by law or in response to inquiries from governmental authorities.  We may share information with affiliated and unaffiliated third parties with whom we have contracts for servicing the Funds.  We will provide unaffiliated third parties with only the information necessary to carry out their assigned responsibilities.  We maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your personal information with the same high degree of confidentiality.
 
In the event that you hold shares of the Funds through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.
 
101
Advisor
Shenkman Capital Management, Inc.
461 Fifth Avenue, 22nd Floor
New York, NY  10017

Distributor
Quasar Distributors, LLC
111 East Kilbourn Avenue, Suite 1250
Milwaukee, WI  53202

Transfer Agent
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI  53202
(855) 743-6562

Custodian
U.S. Bank N.A.
1555 North RiverCenter Drive, Suite 302
Milwaukee, WI  53212

Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
Two Liberty Place
50 South 16th Street, Suite 2900
Philadelphia, PA  19102

Legal Counsel
Sullivan & Worcester LLP
1633 Broadway, 32nd Floor
New York, NY  10019







This report is intended for shareholders of the Funds and may not be used as sales literature unless preceded or accompanied by a current prospectus.
 
Past performance results shown in this report should not be considered a representation of future performance.  Share price and returns will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.  Statements and other information herein are dated and are subject to change.
 

 
SJ-SEMI
 
Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

(a) Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

(b) Not applicable.

Item 6. Investments.

(a) Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
 
(b) Not applicable.
 
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed‑End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a)
The Registrant’s President/Chief Executive Officer/Principal Executive Officer and Vice President/Treasurer/Principal Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended, (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934.  Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

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

Not applicable to open-end investment companies.

Item 13. Exhibits.

(a)
(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not Applicable.


(3) Any written solicitation to purchase securities under Rule 23c‑1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.  Not applicable to open-end investment companies.

(4) Change in the registrant’s independent public accountant.  There was no change in the registrant’s independent public accountant for the period covered by this report.

SIGNATURES

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


(Registrant)  Advisors Series Trust 

By (Signature and Title)*     /s/ Jeffrey T. Rauman
 Jeffrey T. Rauman, President/Chief Executive Officer/Principal
 Executive Officer

Date   6/8/2020



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, as amended, 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/ Jeffrey T. Rauman 
Jeffrey T. Rauman, President/Chief Executive Officer/Principal
Executive Officer

Date   6/8/2020

By (Signature and Title)*    /s/ Cheryl L. King
Cheryl L. King, Vice President/Treasurer/Principal Financial
Officer

Date   6/4/2020

* Print the name and title of each signing officer under his or her signature.