N-CSR 1 scharf-ncsra.htm SCHARF FUNDS ANNUAL REPORT 9-30-21

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, 2021



Date of reporting period: September 30, 2021



Item 1. Reports to Stockholders.

(a) [Insert full text of semi-annual or annual report here]








Scharf Fund
Institutional Class – LOGIX
Retail Class – LOGRX
 

 
Scharf Multi-Asset Opportunity Fund
Institutional Class – LOGOX
Retail Class – LOGBX
 

 
Scharf Global Opportunity Fund
Retail Class – WRLDX
 

 
Scharf Alpha Opportunity Fund
Retail Class – HEDJX

 

 

 
ANNUAL REPORT
 
September 30, 2021
 


Scharf Investments, LLC
 










(This Page Intentionally Left Blank.)
 








SCHARF FUNDS


TABLE OF CONTENTS

Letter from the President
2
To Our Shareholders
6
Investment Highlights
9
Expense Examples
15
Sector Allocation of Portfolio Assets
17
Schedules of Investments
21
Statements of Assets and Liabilities
38
Statements of Operations
40
Statements of Changes in Net Assets
42
Statement of Cash Flows
48
Financial Highlights
49
Notes to Financial Statements
55
Report of Independent Registered Public Accounting Firm
74
Notice to Shareholders
76
Information about Trustees and Officers
78
Householding
82
Privacy Notice
83




SCHARF FUNDS


Letter from the President
 

Dear Fellow Shareholders,
 
We have believed since early spring that the speed and magnitude of the economic recovery places us further along the market cycle than most investors appreciate. Historically, when the economic recovery growth rate peaks, stock leadership transfers from cyclicals who benefit early in the cycle to more defensive stocks who offer superior earning sustainability throughout the cycle. Leading economic indicators like the 10-year treasury yield, the ISM Manufacturing PMI index and upwards earnings estimates revisions all peaked in April. If past is prologue, the rotation into quality stocks is just beginning this cycle and likely to last for a while.
 
Meanwhile, U.S. equity markets continue to set new highs, powered by an increasingly narrow group of stocks. Currently, just 30% of S&P 500 stocks are trading above their 50-day moving averages. This is highly unusual. Setting aside the cognitive dissonance-inducing earnings impacts from the pandemic and subsequent recovery, stocks continue to look expensive vs. their long-term earnings power. The cyclically-adjusted price earnings (CAPE) ratio averages the trailing 10 years of S&P 500 earnings, adjusted for inflation, and compares it to current market levels. The S&P 500’s CAPE ratio is currently 36x, a figure near its historical peak of 44x in December 1999, and well over twice the long-term average of 17x. S&P 500 margins may also be peaking. Labor, materials, transportation and even tax rate inflationary pressures pose risks to current margin levels.
 

So, against the backdrop of a peaking U.S. market with peak corporate profit margins and a potential rotation into defensive stocks, we have high conviction in our portfolio’s positioning. Our exacting investment discipline, one we have followed since inception, emphasizes high quality companies trading at compelling discounts to fair value. We seek to buy stocks with 30%+ plus upside to our price targets and limited downside if our investment thesis proves incorrect. We use this upside vs. downside calculus to create a stock’s Favorability Ratio. Leaving our own projections aside and using consensus earnings and the historical median high and low P/Es for
 

2

SCHARF FUNDS


stocks, the Scharf portfolio Favorability Ratio is 3.34 vs. 0.45 for the S&P 500. The Scharf portfolio also sports a top quartile Earnings Predictability, a figure that measures the volatility of a company’s earnings for the prior 32 quarters against 1,700 stocks in the Value Line universe. The higher the earnings predictability, the better a company can be expected to perform when the economy slows.
 
Despite expensive market indices, we are finding attractive opportunities within defensive areas like health care (e.g., CVS and Centene), communication services (e.g., broadband providers Charter and Comcast), insurance (e.g., strong underwriters and capital allocators Berkshire Hathaway and Markel) and business services/software (e.g., Cognizant and Fiserv). All of these examples have multiples that are several turns less than relevant peers, the market or fair value, yet generally have superior earnings quality, prospects and capital returns.
 
Higher Inflation
 
As we have mentioned elsewhere, the threat of extended inflation is not factored into U.S. equity prices. That’s not a good setup for many risk assets either. With the Producer Price Index (PPI) at 8.3% and the Consumer Price Index (CPI) at 5.3% vs. a 10-Year TIPS/Treasury breakeven rate of 2.37%, investors clearly believe inflation is transitory. However, the Fed has been surprised at the extended nature of elevated prices. At first, Fed Chairman Powell cited base effect issues as the cause, but since the Fed’s Jackson Hole meeting, he has admitted that supply chain issues are driving prices and these constraints are likely to last into 2022.
 
There are several companies in the Scharf Portfolio that we believe should fare well should inflation take root. These include companies with pricing power or who own long-term, irreplaceable fixed assets. Software companies like Microsoft and Oracle offer deeply integrated and mission critical software solutions, increasingly via cloud subscriptions with annual fee increases to corporate clients around the world. Kansas City Southern owns 6,700 miles of railroad track in the U.S. and Mexico. CVS Health and Centene reprice health insurance annually. Unilever and Heineken, owners of strong brands such as Ben & Jerry’s and the namesake beer brand, can navigate inflation via price increases. Insurance companies Berkshire Hathaway and Markel will benefit should higher inflation bring on high interest rates since they will be able to invest consumer premiums in bonds with higher yields. A well-diversified, high-quality portfolio of companies should help mitigate the threat of inflation.
 
The Path Forward
 
If one thing is certain, it’s that the markets do not like uncertainty. Market headwinds include questions around Federal Reserve policy and interest rates, uncertainty in Washington D.C. over the infrastructure bill, inflation, and ongoing concerns over COVID-19 and potential variants. We believe it’s best to stay the course and keep focused on company fundamentals. We remain focused on executing our time-tested
 

3

SCHARF FUNDS


investment strategy of investing in attractively priced, quality companies with both predictable earnings and compelling favorability ratios. We believe history has shown that this is a proven way to build wealth over the long term.
 
I sincerely hope that you, your families and those closest to you are healthy and well. Thank you for your continued trust and confidence in Scharf Investments and the Scharf Funds. My team and I welcome your comments and the opportunity to respond to your questions. Please don’t hesitate to reach out to us.
 
Best regards,
 

Brian Krawez, CFA
President and Portfolio Manager
November 1, 2021
 
Active investing has higher management fees because of the manager’s increased level of involvement while passive investing has lower management and operating fees. Investing in both actively and passively managed mutual funds involves risk and principal loss is possible. Both actively and passively managed mutual funds generally have daily liquidity. There are no guarantees regarding the performance of actively and passively managed mutual funds. Actively managed mutual funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains.
 
Mutual fund investing involves risk. Principal loss is possible. The Funds may invest in securities representing equity or debt. These securities may be issued by small- and medium-sized companies, which involve additional risks such as limited liquidity and greater volatility. The Funds may invest in foreign securities which involve greater volatility, political, economic and currency risks, and differences in accounting methods. These risks are greater for emerging markets. The Funds may invest in exchange-traded funds (“ETFs”) or mutual funds, the risks of owning either generally reflecting the risks of owning the underlying securities held by the ETF or mutual fund. The Funds follow an investment style that favors relatively low valuations. Investment in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment in lower-rated, non-rated and distressed securities presents a greater risk of loss to principal and interest than higher-rated securities. The Scharf Alpha Opportunity Fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. The Scharf Alpha Opportunity Fund may use leverage which may exaggerate the effect of any increase or decrease in the value of portfolio securities or the net asset value of the Fund, and money borrowed will be subject to interest costs.
 
Forward earnings and EPS Growth are not measures of the Funds’ future performance.
 

4

SCHARF FUNDS


Terms and Definitions:
 
The S&P 500® Index is a broad-based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general.
 
The S&P 500® Growth Index is a market-capitalization-weighted index developed by Standard and Poor’s consisting of those stocks within the S&P 500 Index that exhibit strong growth characteristics.
 
The S&P 500® Value Index is a market-capitalization-weighted index developed by Standard and Poor’s consisting of those stocks within the S&P 500 Index that exhibit strong value characteristics.
 
The Lipper Balanced Funds Index is an index of open-end mutual funds whose primary objective is to conserve principal by maintaining at all times a balanced portfolio of both equities and bonds.
 
The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government related and corporate securities.
 
The MSCI All Country World Index (Net) is a broad measure of stock performance throughout the world, with the exception of U.S. based companies.
 
The HFRX Equity Hedge Index encompasses various equity hedge strategies, also known as long/short equity, that combine core long holdings of equities with short sales of stock, stock indices, related derivatives, or other financial instruments related to the equity markets.
 
Price to Earnings Ratio (P/E) is a valuation of a company’s current share price compared to its per-share earnings.
 
Producer Price Index (PPI) measures the average changes in prices received by domestic producers for their output.
 
Consumer Price Index (CPI) measures the weighted average market basket of consumer goods and services purchased by households.
 
Treasury Inflation-Protected Securities (TIPS) is a bond that offsets the effects of rising prices by adjusting its principal value as inflation rises.
 
You cannot invest directly in an index.
 
The information provided herein represents the opinion of the Funds’ manager, is subject to change at any time, is not guaranteed and should not be considered investment advice.
 
The Funds’ holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy and sell any security.  Please refer to the Schedule of Investments in this report for a complete list of Fund holdings.
 
Must be preceded or accompanied by a prospectus.
 


5

SCHARF FUNDS


TO OUR SHAREHOLDERS

PERFORMANCE AS OF 9/30/2021
SCHARF FUND
           
 
       
Since
Since
 
6
One
Three
Five
Inception
Inception
Cumulative:
Months
Year
Year
Year
12/30/11
1/28/15
  Scharf Fund – Institutional Class
4.88%
23.43%
43.61%
70.68%
210.31%
N/A
  Scharf Fund – Retail Class
4.73%
23.08%
42.43%
68.28%
N/A
80.73%
  S&P 500® Index
9.18%
30.00%
56.07%
118.26%
316.63%
145.15%
    (with dividends reinvested)
           
Annualized:
           
  Scharf Fund – Institutional Class
12.82%
11.28%
12.31%
N/A
  Scharf Fund – Retail Class
12.51%
10.97%
N/A
9.28%
  S&P 500® Index
15.99%
16.90%
15.76%
14.39%
    (with dividends reinvested)
           
SCHARF MULTI-ASSET OPPORTUNITY FUND
     
 
       
Since
Since
 
6
One
Three
Five
Inception
Inception
Cumulative:
Months
Year
Year
Year
12/31/12
1/21/16
  Scharf Multi-Asset Opportunity
           
    Fund – Institutional Class
3.95%
16.46%
35.69%
54.27%
117.13%
N/A
  Scharf Multi-Asset Opportunity
           
    Fund – Retail Class
3.82%
16.18%
34.67%
52.29%
N/A
68.02%
  Lipper Balanced Funds Index
2.78%
18.69%
35.68%
60.88%
112.84%
80.95%
    (with dividends reinvested)
           
  Bloomberg U.S.
           
    Aggregate Bond Index
1.88%
-0.90%
16.94%
15.61%
27.68%
21.20%
  S&P 500® Index
           
    (with dividends reinvested)
9.18%
30.00%
56.07%
118.26%
259.15%
157.15%
Annualized:
           
  Scharf Multi-Asset Opportunity
           
    Fund – Institutional Class
10.71%
9.06%
9.27%
N/A
  Scharf Multi-Asset Opportunity
           
    Fund – Retail Class
10.43%
8.78%
N/A
9.54%
  Lipper Balanced Funds Index
10.71%
9.98%
9.02%
10.98%
    (with dividends reinvested)
           
  Bloomberg U.S.
           
    Aggregate Bond Index
5.36%
2.94%
2.83%
3.44%
  S&P 500® Index
           
    (with dividends reinvested)
15.99%
16.90%
15.74%
18.05%


6

SCHARF FUNDS


SCHARF GLOBAL OPPORTUNITY FUND
     
 
       
Since
 
6
One
Three
Five
Inception
Cumulative:
Months
Year
Year
Year
10/14/14
  Scharf Global Opportunity Fund
3.90%
26.33%
43.27%
79.43%
110.77%
  MSCI All Country World Index (Net)
6.26%
27.44%
42.69%
85.84%
103.82%
Annualized:
         
  Scharf Global Opportunity Fund
12.73%
12.40%
11.30%
  MSCI All Country World Index (Net)
12.58%
13.20%
10.77%
SCHARF ALPHA OPPORTUNITY FUND
     
 
       
Since
 
6
One
Three
Five
Inception
Cumulative:
Months
Year
Year
Year
12/31/15
  Scharf Alpha Opportunity Fund
-0.08%
8.56%
8.60%
8.49%
10.84%
  HFRX Equity Hedge Index
6.42%
17.74%
15.64%
27.03%
26.15%
  Bloomberg U.S.
         
    Aggregate Bond Index
1.88%
-0.90%
16.94%
15.61%
22.31%
  S&P 500® Index
9.18%
30.00%
56.07%
118.26%
135.37%
    (with dividends reinvested)
         
Annualized:
         
  Scharf Alpha Opportunity Fund
2.79%
1.64%
1.81%
  HFRX Equity Hedge Index
4.96%
4.90%
4.12%
  Bloomberg U.S.
         
    Aggregate Bond Index
5.36%
2.94%
3.56%
  S&P 500® Index
15.99%
16.90%
16.05%
    (with dividends reinvested)
         

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Funds may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-572-4273.
 
The gross expense ratios, as of the Funds’ registration statement dated January 28, 2021, for the Scharf Fund Institutional Class, Scharf Fund Retail Class, Scharf Multi-Asset Opportunity Fund Institutional Class, Scharf Multi-Asset Opportunity Fund Retail Class, Scharf Global Opportunity Fund, and Scharf Alpha Opportunity Fund are 0.98%, 1.23%, 1.51%, 1.76%, 2.13%, and 3.40%, respectively. The net expense ratios, as of the Funds’ registration statement dated January 28, 2021, for the Scharf Fund Institutional Class, Scharf Fund Retail Class, Scharf Multi-Asset Opportunity Fund Institutional Class, Scharf Multi-Asset Opportunity Fund Retail Class, Scharf Global Opportunity Fund, and Scharf Alpha Opportunity Fund represent the percentages paid by investors and are 0.89%, 1.14%, 1.00%, 1.25%, 0.90%, and 1.99%, respectively, after fee waivers and expense reimbursements, including acquired fund fees and expenses, interest, taxes and extraordinary expenses. Scharf Investments, LLC (the “Adviser”), the Funds’ investment adviser, has contractually agreed to waive fees through January 27, 2022 for the Scharf Fund, Scharf Multi-Asset Opportunity Fund, Scharf Global Opportunity Fund, and Scharf Alpha Opportunity Fund. The Scharf Fund charges a 2.00% redemption fee on redemptions or exchanges of fund shares that are made within 60 days of
 


7

SCHARF FUNDS


purchase. The Scharf Multi-Asset Opportunity Fund, Scharf Global Opportunity Fund, and Scharf Alpha Opportunity Fund charge a 2.00% redemption fee on redemptions or exchanges of fund shares that are made within 15 days of purchase. Had a redemption fee been included, returns would be lower.
 
For the fiscal year ended September 30, 2021, the Scharf Funds mutual funds performed as follows:
 
Scharf Fund Institutional Class and Retail Class returned 23.43% and 23.08%, respectively, compared to the 30.00% return for the S&P 500® Index (“S&P 500”). The key contributors to relative performance for the period were Valvoline, Inc., CVS Health Corp., and Baidu, Inc. – ADR. The key detractors from relative performance were Progressive Corp., Berkshire Hathaway, Inc. – Class B, and Lockheed Martin Corp.
 
Scharf Multi-Asset Opportunity Fund Institutional Class and Retail Class returned 16.46% and 16.18%, respectively, compared to the 18.69% return for the Lipper Balanced Funds Index, -0.90% return for the Bloomberg U.S. Aggregate Bond Index, and 30.00% return for the S&P 500. The key contributors to relative performance for the period were CVS Health Corp., Valvoline, Inc., and Baidu, Inc. – ADR. The key detractors from relative performance were Progressive Corp., Berkshire Hathaway, Inc. – Class B, and Lockheed Martin Corp.
 
Scharf Global Opportunity Fund returned 26.33% compared to the 27.44% return for the MSCI All Country World Index (Net). The key contributors to relative performance for the period were Grupo Televisa S.A.B. – ADR, Baidu Inc. – ADR, and Porsche Automobil Holding SE. The key detractors from relative performance were Barrick Gold Corp., Lockheed Martin Corp., and Novartis AG – ADR.
 
Scharf Alpha Opportunity Fund returned 8.56% compared to the 17.74% return for the HFRX Equity Hedge Index, -0.90% return for the Bloomberg U.S. Aggregate Bond Index, and 30.00% return for the S&P 500. The key contributors to relative performance for the period were Valvoline, Inc., CVS Health Corp., and Baidu, Inc. – ADR. The key detractors from relative performance were Progressive Corp., Berkshire Hathaway, Inc. – Class B, and Lockheed Martin Corp.
 



8

SCHARF FUNDS


Comparison of the change in value of a hypothetical $1,000,000 investment
in the Scharf Fund – Institutional Class vs. the S&P 500® Index


 
Average Annual Total Return for the Periods Ended 9/30/2021:
 
     
Since
Since
     
Inception
Inception
 
1 year
5 year
(12/30/11)
(1/28/15)
Scharf Fund – Institutional Class1
23.43%
11.28%
12.31%
Scharf Fund – Retail Class2
23.08%
10.97%
  9.28%
S&P 500® Index
30.00%
16.90%
15.76%
14.39%

Performance data quoted on this page represents past performance and does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1–866–572–4273 (1–866–5SCHARF).
 
Returns reflect reinvestment of dividends and capital gains distributions.  Fee waivers are in effect.  In the absence of fee waivers, returns would be reduced. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions, or redemption of Fund shares. The performance data and graph do not reflect the 2.00% redemption fee imposed on shares held 60 days or less. Indices do not incur expenses and are not available for investment.
 
The S&P 500® Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy.
 
1
Institutional Class commenced operations on December 30, 2011.
2
Retail Class commenced operations on January 28, 2015.


9

SCHARF MULTI-ASSET OPPORTUNITY FUND


Comparison of the change in value of a hypothetical $5,000,000 investment in
the Scharf Multi-Asset Opportunity Fund – Institutional Class vs.
the Lipper Balanced Funds Index, the S&P 500® Index,
and the Bloomberg U.S. Aggregate Bond Index


 
Average Annual Total Return for the Periods Ended 9/30/2021:
 
     
Since
Since
     
Inception
Inception
 
1 year
5 year
(12/31/12)
(1/21/16)
Scharf Multi–Asset Opportunity
       
  Fund – Institutional Class1
16.46%
  9.06%
  9.27%
Scharf Multi–Asset Opportunity
       
  Fund – Retail Class2
16.18%
  8.78%
  9.54%
S&P 500® Index
30.00%
16.90%
15.74%
18.05%
Bloomberg U.S.
       
  Aggregate Bond Index
 -0.90%
  2.94%
  2.83%
  3.44%
Lipper Balanced Funds Index
18.69%
  9.98%
  9.02%
10.98%

Performance data quoted on this page represents past performance and does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1–866–572–4273 (1–866–5SCHARF).
 
Returns reflect reinvestment of dividends and capital gains distributions.  Fee waivers are in effect.  In the absence of fee waivers, returns would be reduced. The performance data and graph do not reflect the deduction of taxes that a shareholder
 

10

SCHARF MULTI-ASSET OPPORTUNITY FUND


would pay on dividends, capital gains distributions, or redemption of Fund shares. The performance data and graph do not reflect the 2.00% redemption fee imposed on shares held 15 days or less. Indices do not incur expenses and are not available for investment.
 
The S&P 500® Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy.
 
The Lipper Balanced Funds Index is an equally weighted index of the 30 largest U.S. balanced funds.
 
The Bloomberg U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government related and corporate securities.
 
1
The Fund commenced operations on December 31, 2012.
2
The Fund commenced operations on January 21, 2016.


11

SCHARF GLOBAL OPPORTUNITY FUND


Comparison of the change in value of a hypothetical $10,000 investment in the
Scharf Global Opportunity Fund vs. the MSCI World All Country Index (Net).


 
Average Annual Total Return for the Periods Ended 9/30/2021:
 
 
1 year
5 year
Since Inception1
Scharf Global Opportunity Fund
26.33%
12.40%
11.30%
MSCI World All Cap Country Index (Net)
27.44%
13.20%
10.77%

Performance data quoted on this page represents past performance and does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1–866–572–4273 (1–866–5SCHARF).
 
Returns reflect reinvestment of dividends and capital gains distributions.  Fee waivers are in effect.  In the absence of fee waivers, returns would be reduced. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions, or redemption of Fund shares. The performance data and graph do not reflect the 2.00% redemption fee imposed on shares held 15 days or less. Indices do not incur expenses and are not available for investment.
 
The MSCI World All Country Index (Net) captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries.  Net total return indexes reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non–resident institutional investors who do not benefit from double taxation treaties.
 
1
The Fund commenced operations on October 14, 2014.


12

SCHARF Alpha OPPORTUNITY FUND


Comparison of the change in value of a hypothetical $10,000 investment in
the Scharf Alpha Opportunity Fund vs. the HFRX Equity Hedge Index,
S&P 500® Index, and the Bloomberg U.S. Aggregate Bond Index.


 
Average Annual Total Return for the Periods Ended 9/30/2021:
 
 
1 year
5 year
Since Inception1
Scharf Alpha Opportunity Fund
  8.56%
  1.64%
  1.81%
HFRX Equity Hedge Index
17.74%
  4.90%
  4.12%
Bloomberg U.S. Aggregate Bond Index
 -0.90%
  2.94%
  3.56%
S&P 500® Index
30.00%
16.90%
16.05%

Performance data quoted on this page represents past performance and does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1–866–572–4273 (1–866–5SCHARF).
 
Returns reflect reinvestment of dividends and capital gains distributions.  Fee waivers are in effect.  In the absence of fee waivers, returns would be reduced. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions, or redemption of Fund shares. The performance data and graph do not reflect the 2.00% redemption fee imposed on shares held 15 days or less. Indices do not incur expenses and are not available for investment.
 
The HFRX Equity Hedge Index encompasses various equity hedge strategies, also known as long/short equity, that combine core long holdings of equities with short
 


13

SCHARF Alpha OPPORTUNITY FUND


sales of stock, stock indices, related derivatives, or other financial instruments related to the equity markets.
 
The S&P 500® Index is an unmanaged capitalization–weighted index of 500 stocks designed to represent the broad domestic economy.
 
The Bloomberg U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar–denominated, fixed–rate taxable bond market, including Treasuries, government related and corporate securities.
 
1
The Fund commenced operations on December 31, 2015.







14

SCHARF FUNDS


EXPENSE EXAMPLES at September 30, 2021 (Unaudited)

Shareholders in mutual funds generally incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees, and exchange fees; and (2) ongoing costs, including management fees, distribution and/or service fees, and other fund expenses. The Scharf Fund, Scharf Multi–Asset Opportunity Fund, Scharf Global Opportunity Fund, and the Scharf Alpha Opportunity Fund are no–load mutual funds. These Examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested in each Fund at the beginning of the period and held for the entire period (4/1/21-9/30/21).
 
Actual Expenses
 
The first line of each table below provides information about actual account values and actual expenses, with actual net expenses being limited.  Although the Funds charge no sales load or transaction fees, you will be assessed fees for outgoing wire transfers, returned checks, and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Funds’ transfer agent.  The Examples below include, but are not limited to, management fees, fund accounting, custody and transfer agent fees. You may use the information in the first line of the tables, 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 first line under the heading entitled “Expenses Paid During Period’’ to estimate the expenses you paid on your account during this period.
 
Hypothetical Example for Comparison Purposes
 
The second line of each table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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 Funds 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. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and will not help you determine the relative total costs of owning different funds, as they may charge transaction costs, such as sales charges (loads), redemption fees, or exchange fees.
 


15

SCHARF FUNDS


EXPENSE EXAMPLES at September 30, 2021 (Unaudited), Continued

 
Beginning
Ending
Expenses Paid
Annualized
 
Account Value
Account Value
During Period*
Expense
Scharf Fund
4/1/21
9/30/21
4/1/21-9/30/21
Ratio*
Institutional Class
       
Actual
$1,000.00
$1,048.80
$4.42
0.86%
Hypothetical (5% return
       
  before expenses)
$1,000.00
$1,020.76
$4.36
0.86%
Retail Class
       
Actual
$1,000.00
$1,047.30
$5.85
1.14%
Hypothetical (5% return
       
  before expenses)
$1,000.00
$1,019.35
$5.77
1.14%
         
 
Beginning
Ending
Expenses Paid
Annualized
Scharf Multi-Asset
Account Value
Account Value
During Period*
Expense
  Opportunity Fund
4/1/21
9/30/21
4/1/21-9/30/21
Ratio*
Institutional Class
       
Actual
$1,000.00
$1,039.50
$4.96
0.97%
Hypothetical (5% return
       
  before expenses)
$1,000.00
$1,020.21
$4.91
0.97%
Retail Class
       
Actual
$1,000.00
$1,038.20
$6.28
1.23%
Hypothetical (5% return
       
  before expenses)
$1,000.00
$1,018.90
$6.23
1.23%
         
 
Beginning
Ending
Expenses Paid
Annualized
Scharf Global
Account Value
Account Value
During Period*
Expense
  Opportunity Fund
4/1/21
9/30/21
4/1/21-9/30/21
Ratio*
Retail Class
       
Actual
$1,000.00
$1,039.00
$3.83
0.75%
Hypothetical (5% return
       
  before expenses)
$1,000.00
$1,021.31
$3.80
0.75%
         
 
Beginning
Ending
Expenses Paid
Annualized
Scharf Alpha
Account Value
Account Value
During Period*
Expense
  Opportunity Fund
4/1/21
9/30/21
4/1/21-9/30/21
Ratio*
Retail Class
       
Actual(1)
$1,000.00
$   999.20
$9.17
1.83%
Hypothetical (5% return
       
  before expenses)(1)
$1,000.00
$1,015.89
$9.25
1.83%

(1)
 
Excluding interest expense and dividends on short positions, your actual expenses would be $4.36 and your hypothetical expenses would be $4.41.
*
 
Expenses are equal to the Fund’s annualized expense ratio of each class, multiplied by the average account value over the period, multiplied by 183 (days in most recent fiscal half-year)/365 days to reflect the one-half year expense.


16

SCHARF FUND


SECTOR ALLOCATION OF PORTFOLIO ASSETS at September 30, 2021 (Unaudited)








The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”).  GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.


17

SCHARF MULTI-ASSET OPPORTUNITY FUND


SECTOR ALLOCATION OF PORTFOLIO ASSETS at September 30, 2021 (Unaudited)








The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”).  GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
 


18

SCHARF GLOBAL OPPORTUNITY FUND


SECTOR ALLOCATION OF PORTFOLIO ASSETS at September 30, 2021 (Unaudited)








The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”).  GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
 


19

SCHARF Alpha OPPORTUNITY FUND


SECTOR ALLOCATION OF PORTFOLIO ASSETS at September 30, 2021 (Unaudited)








The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”).  GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
 


20

SCHARF FUND


SCHEDULE OF INVESTMENTS at September 30, 2021

Shares
 
COMMON STOCKS – 92.58%
 
Value
 
   
Aerospace and Defense – 3.68%
     
 
42,695
 
Lockheed Martin Corp.
 
$
14,734,044
 
               
     
Beverages – 2.29%
       
 
87,835
 
Heineken N.V. (b)
   
9,177,247
 
               
     
Building Products – 3.85%
       
 
277,355
 
Masco Corp.
   
15,407,070
 
               
     
Chemicals – 4.23%
       
 
543,210
 
Valvoline, Inc.
   
16,937,288
 
               
     
Commercial Services & Supplies – 1.94%
       
 
206,476
 
Herman Miller, Inc.
   
7,775,886
 
               
     
Construction & Engineering – 1.30%
       
 
39,215
 
Jacobs Engineering Group, Inc.
   
5,197,164
 
               
     
Diversified Financial Services – 6.03%
       
 
88,524
 
Berkshire Hathaway, Inc. – Class B (a)
   
24,161,741
 
               
     
Health Care Providers & Services – 14.79%
       
 
238,875
 
Centene Corp. (a)
   
14,884,301
 
 
232,695
 
CVS Health Corp.
   
19,746,497
 
 
100,715
 
McKesson Corp.
   
20,080,557
 
 
31,393
 
Quest Diagnostics, Inc.
   
4,561,717
 
           
59,273,072
 
     
Insurance – 7.17%
       
 
15,343
 
Markel Corp. (a)
   
18,336,880
 
 
114,790
 
Progressive Corp.
   
10,375,868
 
           
28,712,748
 
     
Interactive Media & Services – 1.51%
       
 
39,465
 
Baidu, Inc. – ADR (a)
   
6,067,744
 
               
     
IT Services – 7.13%
       
 
177,180
 
Cognizant Technology Solutions Corp. – Class A
   
13,148,528
 
 
141,950
 
Fiserv, Inc. (a)
   
15,401,575
 
           
28,550,103
 
     
Media – 9.25%
       
 
359,150
 
Comcast Corp. – Class A
   
20,087,259
 
 
98,355
 
Liberty Broadband Corp. (a)
   
16,985,909
 
           
37,073,168
 


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

21

SCHARF FUND


SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Shares
 
COMMON STOCKS – 92.58%, Continued
 
Value
 
   
Personal Products – 2.60%
     
 
192,345
 
Unilever plc – ADR
 
$
10,428,946
 
               
     
Pharmaceuticals – 7.83%
       
 
105,095
 
AstraZeneca plc – ADR
   
6,312,006
 
 
85,029
 
Johnson & Johnson
   
13,732,183
 
 
138,640
 
Novartis AG – ADR
   
11,337,979
 
           
31,382,168
 
     
Road & Rail – 1.47%
       
 
21,732
 
Kansas City Southern
   
5,881,548
 
               
     
Software – 12.42%
       
 
111,385
 
Microsoft Corp.
   
31,401,659
 
 
210,660
 
Oracle Corp.
   
18,354,806
 
           
49,756,465
 
     
Specialty Retail – 5.09%
       
 
97,556
 
Advance Auto Parts, Inc.
   
20,378,473
 
     
TOTAL COMMON STOCKS
       
     
  (Cost $261,796,927)
   
370,894,875
 
               
     
PREFERRED STOCK – 3.45%
       
     
Technology Hardware,
       
     
  Storage & Peripherals – 3.45%
       
 
234,960
 
Samsung Electronics Co., Ltd. (b)
   
13,811,838
 
     
TOTAL PREFERRED STOCK
       
     
  (Cost $3,804,584)
   
13,811,838
 


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

22

SCHARF FUND


SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Shares
 
MONEY MARKET FUND – 3.84%
 
Value
 
 
15,385,061
 
First American Treasury Obligations
     
     
  Fund, Class Z, 0.01% (c)
 
$
15,385,061
 
     
TOTAL MONEY MARKET FUND
       
     
  (Cost $15,385,061)
   
15,385,061
 
     
Total Investments in Securities
       
     
  (Cost $280,986,572) – 99.87%
   
400,091,774
 
     
Other Assets in Excess of Liabilities – 0.13%
   
524,398
 
     
TOTAL NET ASSETS – 100.00%
 
$
400,616,172
 

ADR
American Depository Receipt
(a)
Non–income producing security.
(b)
Foreign issuer.
(c)
Rate shown is the 7–day annualized yield as of September 30, 2021.

The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”).  GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
 




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

23

SCHARF MULTI-ASSET OPPORTUNITY FUND


SCHEDULE OF INVESTMENTS at September 30, 2021

Shares
 
COMMON STOCKS – 66.57%
 
Value
 
   
Aerospace and Defense – 2.51%
     
 
3,675
 
Lockheed Martin Corp.
 
$
1,268,242
 
               
     
Beverages – 1.68%
       
 
8,150
 
Heineken N.V. (b)
   
851,535
 
               
     
Building Products – 2.75%
       
 
25,035
 
Masco Corp.
   
1,390,694
 
               
     
Chemicals – 2.98%
       
 
48,245
 
Valvoline, Inc.
   
1,504,279
 
               
     
Commercial Services & Supplies – 1.39%
       
 
18,680
 
Herman Miller, Inc.
   
703,489
 
               
     
Construction & Engineering – 0.93%
       
 
3,549
 
Jacobs Engineering Group, Inc.
   
470,349
 
               
     
Diversified Financial Services – 4.32%
       
 
7,999
 
Berkshire Hathaway, Inc. – Class B (a)
   
2,183,247
 
               
     
Health Care Providers & Services – 10.47%
       
 
21,492
 
Centene Corp. (a)
   
1,339,166
 
 
20,908
 
CVS Health Corp.
   
1,774,253
 
 
8,883
 
McKesson Corp.
   
1,771,093
 
 
2,815
 
Quest Diagnostics, Inc.
   
409,048
 
           
5,293,560
 
     
Hotels, Restaurants & Leisure – 1.33%
       
 
126,300
 
Domino’s Pizza Group plc (b)
   
674,240
 
               
     
Insurance – 4.99%
       
 
1,392
 
Markel Corp. (a)
   
1,663,621
 
 
9,489
 
Progressive Corp.
   
857,711
 
           
2,521,332
 
     
Interactive Media & Services – 0.94%
       
 
3,080
 
Baidu, Inc. – ADR (a)
   
473,550
 
               
     
IT Services – 5.09%
       
 
15,486
 
Cognizant Technology Solutions Corp. – Class A
   
1,149,216
 
 
13,129
 
Fiserv, Inc. (a)
   
1,424,496
 
           
2,573,712
 
 

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

24

SCHARF MULTI-ASSET OPPORTUNITY FUND
 

SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Shares/
         
Principal
         
Amount
 
COMMON STOCKS – 66.57%, Continued
 
Value
 
   
Media – 6.42%
     
 
31,101
 
Comcast Corp. – Class A
 
$
1,739,479
 
 
8,714
 
Liberty Broadband Corp. (a)
   
1,504,908
 
           
3,244,387
 
     
Personal Products – 1.78%
       
 
16,569
 
Unilever plc – ADR
   
898,371
 
               
     
Pharmaceuticals – 5.50%
       
 
9,721
 
AstraZeneca plc – ADR
   
583,843
 
 
7,230
 
Johnson & Johnson
   
1,167,645
 
 
12,565
 
Novartis AG – ADR
   
1,027,566
 
           
2,779,054
 
     
Road & Rail – 1.15%
       
 
2,147
 
Kansas City Southern
   
581,064
 
               
     
Software – 8.60%
       
 
9,850
 
Microsoft Corp.
   
2,776,912
 
 
18,038
 
Oracle Corp.
   
1,571,651
 
           
4,348,563
 
     
Specialty Retail – 3.74%
       
 
9,040
 
Advance Auto Parts, Inc.
   
1,888,366
 
     
TOTAL COMMON STOCKS
       
     
  (Cost $23,466,632)
   
33,648,034
 
               
     
PREFERRED STOCKS – 6.62%
       
     
Capital Markets – 1.54%
       
$
700,000
 
Charles Schwab Corp. – Series G, 5.375%
   
779,625
 
               
     
Closed–End Fund – 2.01%
       
 
38,400
 
Gabelli Equity Trust, Inc. – Series K, 5.00%
   
1,015,681
 
               
     
Technology Hardware,
       
     
  Storage & Peripherals – 3.07%
       
 
26,435
 
Samsung Electronics Co., Ltd. 3.59% (b)
   
1,553,949
 
     
TOTAL PREFERRED STOCKS
       
     
  (Cost $2,166,669)
   
3,349,255
 
 

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

25

SCHARF MULTI-ASSET OPPORTUNITY FUND
 

SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Shares
 
REIT – 1.45%
 
Value
 
   
Equity Real Estate
     
   
  Investment Trust (REIT) – 1.45%
     
 
11,250
 
Realty Income Corp.
 
$
729,675
 
     
TOTAL REIT
       
     
  (Cost $735,778)
   
729,675
 
               
     
EXCHANGE-TRADED FUNDS – 4.61%
       
 
52,929
 
iShares Silver Trust (a)
   
1,086,103
 
 
7,558
 
SPDR Gold Shares (a)
   
1,241,175
 
     
TOTAL EXCHANGE–TRADED FUNDS
       
     
  (Cost $1,961,065)
   
2,327,278
 
               
Principal
           
Amount
 
CORPORATE BONDS – 7.04%
       
     
Beverages – 0.16%
       
     
Keurig Dr. Pepper, Inc.
       
$
76,000
 
  4.057%, 5/25/2023
   
80,335
 
               
     
Biotechnology – 0.30%
       
     
AbbVie, Inc.
       
 
150,000
 
  2.30%, 11/21/2022 (d)
   
153,104
 
               
     
Chemicals – 0.11%
       
     
DuPont de Nemours, Inc.
       
 
50,000
 
  4.205%, 11/15/2023
   
53,699
 
               
     
Computer and Electronic
       
     
  Product Manufacturing – 0.19%
       
     
Digital Equipment Corp.
       
 
89,000
 
  7.75%, 4/1/2023
   
96,430
 
               
     
Entertainment – 0.34%
       
     
Walt Disney Co.
       
 
150,000
 
  8.875%, 4/26/2023
   
169,884
 
               
     
Health Care Providers & Services – 0.30%
       
     
McKesson Corp.
       
 
150,000
 
  2.70%, 12/15/2022
   
153,300
 
 

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

26

SCHARF MULTI-ASSET OPPORTUNITY FUND
 

SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Principal
         
Amount
 
CORPORATE BONDS – 7.04%, Continued
 
Value
 
   
Internet & Direct Marketing Retail – 0.64%
     
   
Amazon.com, Inc.
     
$
150,000
 
  5.20%, 12/3/2025
 
$
174,417
 
     
eBay, Inc.
       
 
150,000
 
  2.60%, 7/15/2022
   
151,860
 
           
326,277
 
     
IT Services – 0.36%
       
     
International Business Machines Corp.
       
 
150,000
 
  7.00%, 10/30/2025
   
184,717
 
               
     
Life Sciences Tools & Services – 0.33%
       
     
Thermo Fisher Scientific, Inc.
       
 
150,000
 
  4.133%, 3/25/2025
   
165,038
 
               
     
Petroleum and Coal
       
     
  Products Manufacturing – 1.15%
       
     
Murphy Oil USA, Inc.
       
 
557,000
 
  5.625%, 5/1/2027
   
583,006
 
               
     
Pharmaceutical and
       
     
  Medicine Manufacturing – 0.34%
       
     
Wyeth LLC
       
 
150,000
 
  6.45%, 2/1/2024
   
170,095
 
               
     
Road & Rail – 0.54%
       
     
Bestfoods, Inc.
       
 
150,000
 
  7.25%, 12/15/2026
   
194,681
 
     
Burlington Northern Santa Fe LLC
       
 
75,000
 
  3.05%, 9/1/2022
   
76,421
 
           
271,102
 
     
Securities and Commodity Contracts
       
     
  Intermediation and Brokerage – 1.96%
       
     
Goldman Sachs Group, Inc.
       
 
1,001,000
 
  4.00%, (3 Month LIBOR + 0.7675%), 6/1/2043 (c)
   
990,205
 
               
     
Specialty Retail – 0.32%
       
     
Advance Auto Parts, Inc.
       
 
150,000
 
  4.50%, 12/1/2023
   
160,359
 
     
TOTAL CORPORATE BONDS
       
     
  (Cost $3,254,709)
   
3,557,551
 
 

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

27

SCHARF MULTI-ASSET OPPORTUNITY FUND
 

SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Principal
         
Amount
 
MUNICIPAL BONDS – 4.20%
 
Value
 
   
California Health Facilities Financing Authority,
     
   
  Revenue Bonds, Chinese Hospital Association
     
$
10,000
 
  3.00%, 6/1/2024, Series 2012
 
$
10,167
 
     
California Health Facilities Financing Authority,
       
     
  Revenue Bonds, Persons with
       
     
  Developmental Disabilities
       
 
145,000
 
  7.875%, 2/1/2026, Series 2011B
   
145,745
 
     
California State, General Obligation,
       
     
  Highway Safety, Traffic Reduction,
       
     
  Air Quality and Port Security Bonds
       
 
90,000
 
  6.509%, 4/1/2039, Series 2009B
   
90,175
 
     
California State, General Obligation, Various Purpose
       
 
370,000
 
  6.65%, 3/1/2022, Series 2010
   
379,780
 
     
City of New York, General Obligation,
       
     
  Build America Bonds
       
 
75,000
 
  5.887%, 12/1/2024
   
86,281
 
 
35,000
 
  5.424%, 3/1/2025
   
40,006
 
     
Commonwealth of Massachusetts,
       
     
  Build America Bonds
       
 
110,000
 
  4.20%, 12/1/2021
   
110,698
 
     
Dana Point California Community
       
     
  Facilities Taxable – Series B
       
 
120,000
 
  1.017%, 9/1/2022
   
120,257
 
     
San Francisco Bay Area Toll Authority,
       
     
  Revenue Bonds
       
 
100,000
 
  2.128%, 4/1/2022
   
100,979
 
 
100,000
 
  2.234%, 4/1/2023
   
102,923
 
 
75,000
 
  6.793%, 4/1/2030
   
92,338
 
     
Santa Clara Valley Transportation Authority,
       
     
  Sales Tax Revenue, Build America Bonds
       
 
75,000
 
  4.899%, 4/1/2022
   
76,691
 
     
State of California, Build America Bonds
       
 
35,000
 
  5.70%, 11/1/2021
   
35,147
 
 
15,000
 
  4.988%, 4/1/2039
   
15,975
 
     
State of Connecticut, Build America Bonds
       
 
240,000
 
  5.20%, 12/1/2022
   
253,619
 
 
25,000
 
  5.30%, 12/1/2023
   
27,552
 
 

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

28

SCHARF MULTI-ASSET OPPORTUNITY FUND
 

SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Principal
         
Amount
 
MUNICIPAL BONDS – 4.20%, Continued
 
Value
 
   
State of Georgia, School Construction Bonds
     
$
15,000
 
  4.35%, 2/1/2029
 
$
15,655
 
     
State of Hawaii, Build America Bonds, Taxable
       
 
25,000
 
  5.10%, 2/1/2024
   
27,613
 
     
State of Oregon, General Obligation,
       
     
  Board of Higher Educations – Taxable
       
 
5,000
 
  5.742%, 8/1/2024
   
5,481
 
     
Toledo City School District, General
       
     
  Obligation Bond, Taxable
       
 
225,000
 
  5.00%, 12/1/2024
   
254,083
 
     
University of California, Build America Bonds
       
 
100,000
 
  6.296%, 5/15/2050
   
130,625
 
     
TOTAL MUNICIPAL BONDS
       
     
  (Cost $2,092,063)
   
2,121,790
 
               
     
OTHER SECURITIES – 0.74%
       
     
Independent Power and Renewable
       
     
  Electricity Producers – 0.74%
       
 
13,475
 
Tennessee Valley Authority, Series D,
       
     
  PAARS, Power Bond
   
373,797
 
     
  2.134%, (reset annually @ CMT 30 year index average
       
     
  + 94 bps if lower than current rate), 6/1/2028 (c)
       
     
TOTAL OTHER SECURITIES
       
     
  (Cost $344,147)
   
373,797
 
 


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

29

SCHARF MULTI-ASSET OPPORTUNITY FUND
 

SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Shares
 
MONEY MARKET FUND – 8.66%
     
 
4,378,126
 
First American Treasury Obligations
     
     
  Fund, Class Z, 0.01% (e)
 
$
4,378,126
 
     
TOTAL MONEY MARKET FUND
       
     
  (Cost $4,378,126)
   
4,378,126
 
     
Total Investments in Securities
       
     
  (Cost $38,399,189) – 99.89%
   
50,485,506
 
     
Other Assets in Excess of Liabilities – 0.11%
   
57,075
 
     
TOTAL NET ASSETS – 100.00%
 
$
50,542,581
 

ADR
American Depository Receipt
CMT
Constant Maturity
LIBOR
London Interbank Offered Rate
(a)
Non–income producing security.
(b)
Foreign issuer.
(c)
Variable rate security.  Rate shown reflects the rate in effect as of September 30, 2021.
(d)
Security purchased within the terms of a private placement memorandum, 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 September 30, 2021, the value of these investments was $153,104 or 0.30% of total net assets.
(e)
Rate shown is the 7–day annualized yield as of September 30, 2021.

The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”).  GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
 

 

 

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

30

SCHARF GLOBAL OPPORTUNITY FUND


SCHEDULE OF INVESTMENTS at September 30, 2021

Shares
 
COMMON STOCKS – 91.09%
 
Value
 
   
Aerospace and Defense – 3.57%
     
 
2,653
 
Lockheed Martin Corp.
 
$
915,550
 
               
     
Auto Components – 0.17%
       
 
10,108
 
Nexen Corp. (b)
   
43,027
 
               
     
Automobiles – 3.26%
       
 
84,399
 
Porsche Automobil Holding SE – ADR
   
834,706
 
               
     
Beverages – 1.61%
       
 
3,958
 
Heineken N.V. (b)
   
413,543
 
               
     
Building Products – 1.96%
       
 
9,026
 
Masco Corp.
   
501,394
 
               
     
Chemicals – 1.84%
       
 
15,120
 
Valvoline, Inc.
   
471,442
 
               
     
Commercial Services & Supplies – 1.95%
       
 
13,300
 
Herman Miller, Inc.
   
500,878
 
               
     
Diversified Financial Services – 3.81%
       
 
3,577
 
Berkshire Hathaway, Inc. – Class B (a)
   
976,306
 
               
     
Health Care Providers & Services – 13.43%
       
 
16,453
 
Centene Corp. (a)
   
1,025,187
 
 
16,299
 
CVS Health Corp.
   
1,383,133
 
 
5,190
 
McKesson Corp.
   
1,034,782
 
           
3,443,102
 
     
Hotels, Restaurants & Leisure – 3.84%
       
 
184,655
 
Domino’s Pizza Group plc (b)
   
985,762
 
               
     
Household Durables – 3.49%
       
 
8,094
 
Sony Corp. – ADR (a)
   
895,035
 
               
     
Insurance – 6.35%
       
 
46,890
 
AIA Group, Ltd. (b)
   
541,804
 
 
908
 
Markel Corp. (a)
   
1,085,178
 
           
1,626,982
 
     
Interactive Media & Services – 6.31%
       
 
6,622
 
Baidu, Inc. – ADR (a)
   
1,018,133
 
 
10,135
 
Tencent Holdings, Ltd. (b)
   
600,706
 
           
1,618,839
 


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

31

SCHARF GLOBAL OPPORTUNITY FUND


SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Shares
 
COMMON STOCKS – 91.09%, Continued
 
Value
 
   
IT Services – 5.12%
     
 
7,750
 
Cognizant Technology Solutions Corp. – Class A
 
$
575,128
 
 
6,800
 
Fiserv, Inc. (a)
   
737,800
 
           
1,312,928
 
     
Media – 11.73%
       
 
15,637
 
Comcast Corp. – Class A
   
874,577
 
 
120,414
 
Grupo Televisa S.A.B. – ADR
   
1,322,146
 
 
4,703
 
Liberty Broadband Corp. – Class C (a)
   
812,208
 
           
3,008,931
 
     
Metals & Mining – 3.18%
       
 
45,128
 
Barrick Gold Corp. – ADR (b)
   
814,560
 
               
     
Personal Products – 2.69%
       
 
12,744
 
Unilever plc – ADR
   
690,980
 
               
     
Pharmaceuticals – 7.65%
       
 
9,488
 
AstraZeneca plc – ADR
   
569,849
 
 
2,849
 
Johnson & Johnson
   
460,113
 
 
11,402
 
Novartis AG – ADR
   
932,456
 
           
1,962,418
 
     
Software – 5.09%
       
 
1,882
 
Microsoft Corp.
   
530,574
 
 
8,894
 
Oracle Corp.
   
774,934
 
           
1,305,508
 
     
Specialty Retail – 4.04%
       
 
4,955
 
Advance Auto Parts, Inc.
   
1,035,050
 
     
TOTAL COMMON STOCKS
       
     
  (Cost $19,015,510)
   
23,356,941
 
               
     
PREFERRED STOCKS – 7.14%
       
     
Auto Components – 0.38%
       
 
14,157
 
Nexen Corp., 3.02% (b)
   
42,029
 
 
19,025
 
Nexen Tire Corp., 3.72% (b)
   
56,882
 
           
98,911
 
     
Capital Markets – 0.40%
       
 
1,800
 
Korea Investment Holdings Co., Ltd., 4.74% (b)
   
101,554
 


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

32

SCHARF GLOBAL OPPORTUNITY FUND


SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Shares
 
PREFERRED STOCKS – 7.14%, Continued
 
Value
 
   
Containers & Packaging – 0.06%
     
 
5,450
 
NPC, 4.53% (b)
 
$
14,569
 
               
     
Personal Products – 0.26%
       
 
1,870
 
AMOREPACIFIC Group, 1.07% (b)
   
30,561
 
 
65
 
LG Household & Health Care, Ltd., 1.60% (b)
   
35,245
 
           
65,806
 
     
Technology Hardware,
       
     
  Storage & Peripherals – 6.04%
       
 
26,375
 
Samsung Electronics Co., Ltd., 3.59% (b)
   
1,550,422
 
     
TOTAL PREFERRED STOCKS
       
     
  (Cost $814,766)
   
1,831,262
 
               
     
MONEY MARKET FUND – 3.17%
       
 
813,508
 
First American Treasury Obligations
       
     
  Fund, Class Z, 0.01% (c)
   
813,508
 
     
TOTAL MONEY MARKET FUND
       
     
  (Cost $813,508)
   
813,508
 
     
Total Investments in Securities
       
     
  (Cost $20,643,784) – 101.40%
   
26,001,711
 
     
Liabilities in Excess of Other Assets – (1.40)%
   
(359,049
)
     
TOTAL NET ASSETS – 100.00%
 
$
25,642,662
 

ADR
American Depository Receipt
(a)
Non–income producing security.
(b)
Foreign issuer.
(c)
Rate shown is the 7–day annualized yield as of September 30, 2021.

The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”).  GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
 


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

33

SCHARF GLOBAL OPPORTUNITY FUND


SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

COUNTRY ALLOCATION
       
Country
% of Net Assets
United States
   
55.5
%
 
China
   
6.4
%
 
Republic of Korea
   
6.3
%
 
United Kingdom
   
6.2
%
 
Mexico
   
5.2
%
 
Netherlands
   
4.4
%
 
Switzerland
   
3.7
%
 
Japan
   
3.6
%
 
Germany
   
3.3
%
 
Canada
   
3.2
%
 
Hong Kong
   
2.2
%
 
     
100.0
%
 





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

34

SCHARF ALPHA OPPORTUNITY FUND


SCHEDULE OF INVESTMENTS at September 30, 2021

Shares
 
COMMON STOCKS – 96.01%
 
Value
 
   
Aerospace and Defense – 3.78%
     
 
721
 
Lockheed Martin Corp.
 
$
248,817
 
               
     
Beverages – 2.26%
       
 
1,423
 
Heineken N.V. (b)
   
148,679
 
               
     
Building Products – 3.93%
       
 
4,647
 
Masco Corp.
   
258,141
 
               
     
Chemicals – 4.23%
       
 
8,921
 
Valvoline, Inc.
   
278,157
 
               
     
Commercial Services & Supplies – 1.95%
       
 
3,400
 
Herman Miller, Inc.
   
128,044
 
               
     
Construction & Engineering – 1.04%
       
 
517
 
Jacobs Engineering Group, Inc.
   
68,518
 
               
     
Diversified Financial Services – 5.98%
       
 
1,440
 
Berkshire Hathaway, Inc. – Class B (a) (d)
   
393,033
 
               
     
Health Care Providers & Services – 14.74%
       
 
3,869
 
Centene Corp. (a)
   
241,077
 
 
3,875
 
CVS Health Corp. (d)
   
328,833
 
 
1,626
 
McKesson Corp. (d)
   
324,192
 
 
509
 
Quest Diagnostics, Inc.
   
73,963
 
           
968,065
 
     
Insurance – 7.09%
       
 
253
 
Markel Corp. (a)
   
302,368
 
 
1,803
 
Progressive Corp.
   
162,973
 
           
465,341
 
     
Interactive Media & Services – 1.79%
       
 
766
 
Baidu, Inc. – ADR (a)
   
117,773
 
               
     
IT Services – 6.91%
       
 
2,780
 
Cognizant Technology Solutions Corp. – Class A (d)
   
206,304
 
 
2,280
 
Fiserv, Inc. (a)
   
247,380
 
           
453,684
 
     
Media – 9.30%
       
 
5,985
 
Comcast Corp. – Class A (d)
   
334,740
 
 
1,600
 
Liberty Broadband Corp. (a)
   
276,320
 
           
611,060
 


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

35

SCHARF ALPHA OPPORTUNITY FUND


SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Shares
 
COMMON STOCKS – 96.01%, Continued
 
Value
 
   
Personal Products – 2.59%
     
 
3,141
 
Unilever plc – ADR
 
$
170,305
 
               
     
Pharmaceuticals – 7.82%
       
 
1,676
 
AstraZeneca plc – ADR
   
100,661
 
 
1,394
 
Johnson & Johnson
   
225,131
 
 
2,293
 
Novartis AG – ADR (d)
   
187,521
 
           
513,313
 
     
Road & Rail – 1.47%
       
 
356
 
Kansas City Southern (d)
   
96,348
 
               
     
Software – 12.48%
       
 
1,820
 
Microsoft Corp. (d)
   
513,093
 
 
3,531
 
Oracle Corp. (d)
   
307,656
 
           
820,749
 
     
Specialty Retail – 5.15%
       
 
1,620
 
Advance Auto Parts, Inc. (d)
   
338,402
 
               
     
Technology Hardware,
       
     
  Storage & Peripherals – 3.50%
       
 
147
 
Samsung Electronics Co., Ltd. – ADR
   
229,688
 
     
TOTAL COMMON STOCKS
       
     
  (Cost $4,459,406)
   
6,308,117
 
               
     
EXCHANGE–TRADED FUND – 0.78%
       
 
2,500
 
iShares Silver Trust (a)
   
51,300
 
     
TOTAL EXCHANGE–TRADED FUND
       
     
  (Cost $41,590)
   
51,300
 


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

36

SCHARF ALPHA OPPORTUNITY FUND


SCHEDULE OF INVESTMENTS at September 30, 2021, Continued

Shares
 
MONEY MARKET FUND – 1.47%
 
Value
 
 
96,305
 
First American Treasury Obligations
     
     
  Fund, Class Z, 0.01% (c)
 
$
96,305
 
     
TOTAL MONEY MARKET FUND
       
     
  (Cost $96,305)
   
96,305
 
     
Total Investments in Securities
       
     
  (Cost $4,597,301) – 98.26%
   
6,455,722
 
     
Other Assets in Excess of Liabilities – 1.74%
   
114,206
 
     
TOTAL NET ASSETS – 100.00%
 
$
6,569,928
 

ADR
American Depository Receipt
(a)
Non–income producing security.
(b)
Foreign issuer.
(c)
Rate shown is the 7–day annualized yield as of September 30, 2021.
(d)
All or a portion of the security has been segregated for open short positions.


 
SCHEDULE OF SECURITIES SOLD SHORT at September 30, 2021

Shares
 
SECURITIES SOLD SHORT – 39.73%
 
Value
 
   
Exchange–Traded Funds – 39.73%
     
 
4,251
 
Invesco QQQ Trust Series 1
 
$
1,521,688
 
 
2,536
 
SPDR S&P 500 ETF Trust
   
1,088,299
 
     
TOTAL SECURITIES SOLD SHORT
       
     
  (Proceeds $1,577,007)
 
$
2,609,987
 

ETF
Exchange–Traded Fund

The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”).  GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
 



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

37

SCHARF FUNDS


STATEMENTS OF ASSETS AND LIABILITIES at September 30, 2021

       
Scharf Multi-Asset
   
Scharf Fund
   
Opportunity Fund
 
ASSETS
           
Investments in securities, at value (identified cost
           
  $280,986,572 and $38,399,189, respectively)
 
$
400,091,774
   
$
50,485,506
 
Receivables:
               
Fund shares issued
   
396,143
     
 
Dividends and interest
   
251,322
     
104,023
 
Dividend tax reclaim
   
422,093
     
29,055
 
Prepaid expenses
   
18,263
     
9,717
 
Total assets
 
$
401,179,595
   
$
50,628,301
 
LIABILITIES
               
Payables:
               
Fund shares redeemed
   
133,217
     
 
Advisory fees
   
236,649
     
22,111
 
Administration and fund accounting fees
   
35,944
     
10,647
 
Audit fees
   
22,500
     
22,500
 
12b-1 distribution fees
   
46,844
     
2,985
 
Chief Compliance Officer fee
   
1,875
     
1,875
 
Custody fees
   
6,545
     
3,484
 
Legal fees
   
553
     
1,703
 
Shareholder reporting
   
8,759
     
1,228
 
Shareholder servicing fees
   
63,331
     
16,023
 
Transfer agent fees and expenses
   
5,943
     
2,503
 
Accrued other expenses
   
1,263
     
661
 
Total liabilities
   
563,423
     
85,720
 
NET ASSETS
 
$
400,616,172
   
$
50,542,581
 
CALCULATION OF NET ASSET VALUE PER SHARE
               
Institutional Shares
               
Net assets applicable to shares outstanding
 
$
328,885,515
   
$
43,737,881
 
Shares issued and outstanding [unlimited number of shares
               
  (par value$0.01) authorized]
   
6,003,213
     
1,146,830
 
Net asset value, offering and redemption price per share
 
$
54.78
   
$
38.14
 
Retail Shares
               
Net assets applicable to shares outstanding
 
$
71,730,657
   
$
6,804,700
 
Shares issued and outstanding [unlimited number of shares
               
  (par value $0.01) authorized]
   
1,317,538
     
178,982
 
Net asset value, offering and redemption price per share
 
$
54.44
   
$
$38.02
 
                 
COMPOSITION OF NET ASSETS
               
Paid–in capital
 
$
247,421,582
   
$
34,347,311
 
Total distributable earnings
   
153,194,590
     
16,195,270
 
Net assets
 
$
400,616,172
   
$
50,542,581
 


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

38

SCHARF FUNDS


STATEMENTS OF ASSETS AND LIABILITIES at September 30, 2021

   
Scharf Global
   
Scharf Alpha
 
   
Opportunity Fund
   
Opportunity Fund
 
ASSETS
           
Investments in securities, at value (identified cost
           
  $20,643,784 and $4,597,301, respectively)
 
$
26,001,711
   
$
6,455,722
 
Cash
   
     
1,382
 
Deposits at broker for short securities
   
     
2,733,380
 
Receivables:
               
Dividends and interest
   
15,660
     
3,215
 
Dividend tax reclaim
   
12,241
     
9,641
 
Due from Adviser (Note 4)
   
1,568
     
9,157
 
Prepaid expenses
   
16,229
     
13,069
 
Total assets
   
26,047,409
     
9,225,566
 
LIABILITIES
               
Securities sold short (proceeds $0
               
  and $1,577,007, respectively)
   
     
2,609,987
 
Payables:
               
Dividends on short positions
   
     
5,381
 
Fund shares redeemed
   
18,125
     
 
Investments purchased
   
320,823
     
 
Audit fees
   
21,000
     
21,000
 
Shareholder servicing fees
   
10,539
     
1,870
 
12b-1 distribution fees
   
15,638
     
 
Administration and fund accounting fees
   
7,140
     
7,031
 
Legal fees
   
1,853
     
1,703
 
Chief Compliance Officer fee
   
1,875
     
1,874
 
Custody fees
   
4,385
     
3,646
 
Transfer agent fees and expenses
   
1,351
     
1,374
 
Shareholder reporting
   
565
     
759
 
Accrued other expenses
   
1,453
     
1,013
 
Total liabilities
   
404,747
     
2,655,638
 
NET ASSETS
 
$
25,642,662
   
$
6,569,928
 
CALCULATION OF NET ASSET VALUE PER SHARE
               
Retail Shares
               
Net assets applicable to shares outstanding
 
$
25,642,662
   
$
6,569,928
 
Shares issued and outstanding [unlimited number of shares
               
  (par value $0.01) authorized]
   
707,436
     
253,947
 
Net asset value, offering and
               
  redemption price per share
 
$
36.25
   
$
$25.87
 
COMPOSITION OF NET ASSETS
               
Paid–in capital
 
$
17,739,197
   
$
5,568,384
 
Total distributable earnings
   
7,903,465
     
1,001,544
 
Net assets
 
$
25,642,662
   
$
6,569,928
 


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

39

SCHARF FUNDS


STATEMENTS OF OPERATIONS For the Year Ended September 30, 2021

       
Scharf Multi-Asset
   
Scharf Fund
   
Opportunity Fund
 
INVESTMENT INCOME
           
Income
           
Dividends (net of foreign tax withheld and issuance
           
  fees of $349,236 and $35,271, respectively)
 
$
6,230,707
   
$
691,933
 
Interest
   
951
     
190,591
 
Total income
   
6,231,658
     
882,524
 
Expenses
               
Advisory fees (Note 4)
   
3,040,492
     
501,698
 
Shareholder servicing fees – Institutional Class (Note 6)
   
218,970
     
39,971
 
Shareholder servicing fees – Retail Class (Note 6)
   
71,509
     
7,407
 
12b-1 distribution fees – Retail Class (Note 5)
   
179,154
     
18,516
 
Administration and fund accounting fees (Note 4)
   
169,872
     
62,712
 
Custody fees (Note 4)
   
38,255
     
13,656
 
Registration fees
   
37,197
     
31,508
 
Transfer agent fees and expenses (Note 4)
   
35,879
     
14,498
 
Audit fees
   
22,501
     
22,501
 
Trustee fees and expenses
   
17,078
     
14,141
 
Reports to shareholders
   
15,437
     
5,019
 
Chief Compliance Officer fee (Note 4)
   
10,687
     
10,688
 
Miscellaneous expenses
   
10,324
     
6,356
 
Legal fees
   
6,413
     
6,954
 
Insurance expense
   
6,049
     
2,596
 
Interest expense
   
672
     
 
Total expenses
   
3,880,489
     
758,221
 
Less: advisory fee waiver (Note 4)
   
(331,385
)
   
(246,375
)
Net expenses
   
3,549,104
     
511,846
 
    Net investment income
   
2,682,554
     
370,678
 
REALIZED AND UNREALIZED GAIN/(LOSS) ON
               
  INVESTMENTS AND FOREIGN CURRENCY
               
Net realized gain/(loss) on:
               
Investments
   
38,414,239
     
4,426,537
 
Foreign currency
   
(8,212
)
   
(957
)
Net change in unrealized appreciation/(depreciation) on:
               
Investments
   
37,547,732
     
2,755,260
 
Foreign currency
   
(4,092
)
   
(386
)
Net realized and unrealized gain on
               
  investments and foreign currency
   
75,949,667
     
7,180,454
 
Net Increase in Net Assets
               
  Resulting from Operations
 
$
78,632,221
   
$
7,551,132
 


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

40

SCHARF FUNDS


STATEMENTS OF OPERATIONS For the Year Ended September 30, 2021

   
Scharf Global
   
Scharf Alpha
 
   
Opportunity Fund
   
Opportunity Fund
 
INVESTMENT INCOME
           
Income
           
Dividends (net of foreign tax withheld and issuance
           
  fees of $45,252 and $5,037, respectively)
 
$
400,831
   
$
108,866
 
Interest
   
43
     
11
 
Total income
   
400,874
     
108,877
 
Expenses
               
Advisory fees (Note 4)
   
235,711
     
69,640
 
Administration and fund accounting fees (Note 4)
   
41,641
     
41,173
 
12b-1 distribution fees – Retail Class (Note 5)
   
33,714
     
11,070
 
Audit fees
   
21,001
     
21,001
 
Registration fees
   
19,451
     
19,753
 
Shareholder servicing fees – Retail Class (Note 6)
   
19,132
     
5,033
 
Custody fees (Note 4)
   
14,312
     
13,616
 
Trustee fees and expenses
   
13,887
     
13,778
 
Chief Compliance Officer fee (Note 4)
   
10,687
     
10,687
 
Miscellaneous expenses
   
7,914
     
12,133
 
Transfer agent fees and expenses (Note 4)
   
7,713
     
6,399
 
Legal fees
   
7,404
     
6,954
 
Reports to shareholders
   
4,289
     
3,793
 
Insurance expense
   
2,321
     
2,246
 
Interest expense
   
125
     
175
 
Total expenses before dividends
               
  on short positions
   
439,302
     
237,451
 
Dividends on short positions
   
     
71,761
 
Total expenses before advisory fee waiver
               
  and expense reimbursement
   
439,302
     
309,212
 
Less: advisory fee waiver and
               
  expense reimbursement (Note 4)
   
(257,887
)
   
(175,626
)
Net expenses
   
181,415
     
133,586
 
    Net investment income/(loss)
   
219,459
     
(24,709
)
REALIZED AND UNREALIZED GAIN/(LOSS)
               
  ON INVESTMENTS, FOREIGN CURRENCY
               
  AND SECURITIES SOLD SHORT
               
Net realized gain/(loss) on:
               
Investments
   
2,401,682
     
1,755,459
 
Foreign currency
   
(1,195
)
   
(34
)
Securities sold short
   
     
(1,080,419
)
Net change in unrealized appreciation/(depreciation) on:
               
Investments
   
2,363,420
     
(402,922
)
Foreign currency
   
(242
)
   
(112
)
Securities sold short
   
     
303,194
 
Net realized and unrealized gain on investments,
               
  foreign currency and securities sold short
   
4,763,665
     
575,166
 
Net Increase in Net Assets
               
  Resulting from Operations
 
$
4,983,124
   
$
550,457
 


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

41

SCHARF FUND


STATEMENTS OF CHANGES IN NET ASSETS

   
Year Ended
   
Year Ended
 
   
September 30, 2021
   
September 30, 2020
 
INCREASE/(DECREASE) IN NET ASSETS FROM:
           
OPERATIONS
           
Net investment income
 
$
2,682,554
   
$
2,491,530
 
Net realized gain/(loss) from:
               
Investments
   
38,414,239
     
14,383,281
 
Foreign currency
   
(8,212
)
   
(4,770
)
Net change in unrealized appreciation/(depreciation) on:
               
Investments
   
37,547,732
     
9,038,828
 
Foreign currency
   
(4,092
)
   
6,248
 
Net increase in net assets resulting from operations
   
78,632,221
     
25,915,117
 
DISTRIBUTIONS TO SHAREHOLDERS
               
Net dividends and distributions to shareholders –
               
  Institutional Class shares
   
(10,685,640
)
   
(23,633,870
)
Net dividends and distributions to shareholders –
               
  Retail Class shares
   
(2,293,886
)
   
(5,863,332
)
Total distributions to shareholders
   
(12,979,526
)
   
(29,497,202
)
CAPITAL SHARE TRANSACTIONS
               
Net decrease in net assets derived
               
  from net change in outstanding shares (a)
   
(14,313,106
)
   
(17,878,968
)
Total increase/(decrease) in net assets
   
51,339,589
     
(21,461,053
)
NET ASSETS
               
Beginning of year
   
349,276,583
     
370,737,636
 
End of year
 
$
400,616,172
   
$
349,276,583
 


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

42

SCHARF FUND


STATEMENTS OF CHANGES IN NET ASSETS, Continued

(a)
A summary of share transactions is as follows:

Institutional Class

     
Year Ended
   
Year Ended
 
     
September 30, 2021
   
September 30, 2020
 
     
Shares
   
Paid-in Capital
   
Shares
   
Paid-in Capital
 
 
Shares sold
   
802,759
   
$
42,343,492
     
1,167,709
   
$
49,569,097
 
 
Shares issued on
                               
 
  reinvestments of distributions
   
222,392
     
10,645,906
     
517,328
     
23,455,656
 
 
Shares redeemed*
   
(1,166,051
)
   
(60,339,692
)
   
(1,990,615
)
   
(86,112,244
)
 
Net decrease
   
(140,900
)
 
$
(7,350,294
)
   
(305,578
)
 
$
(13,087,491
)
 
* Net of redemption fees of
         
$
3,643
           
$
5,833
 

Retail Class

     
Year Ended
   
Year Ended
 
     
September 30, 2021
   
September 30, 2020
 
     
Shares
   
Paid-in Capital
   
Shares