N-Q 1 n-q.htm n-q.htm
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
 

Investment Company Act file number   811-10261
 
Pearl Mutual Funds
(Exact name of registrant as specified in charter)
2610 Park Avenue, PO Box 209, Muscatine, IA 52761
(Address of principal executive offices)
 
 
Richard R. Phillips, President
2610 Park Avenue, Muscatine, IA 52761
(Name and address of agent for service)
 

 
Registrant's telephone number, including area code:   563-288-2773

Date of fiscal year end:  December 31

Date of reporting period:  March 31, 2012


 
 
 

Item 1. Schedules of Investments.

Pearl Total Return Fund
 
Holdings as of 03/31/2012 (unaudited)*
  
Cusip
  
 
Equity Funds:
  
% Total Assets
  
Shares
    
Market Value
  
572353522  
BMO Small Cap Growth (MSGIX)
     10.21 %     351,188.726     $ 6,886,810.92  
0075W0593  
Cambiar Small Cap (CAMZX)
     8.16 %     286,128.213     $ 5,505,106.82  
577130750  
Matthews Asia Dividend (MIPIX)
     2.10 %     102,450.606     $ 1,418,940.89  
577130842  
Matthews Asian Growth & Income (MICSX)
     1.71 %     69,098.780     $ 1,156,022.59  
779557107  
T. Rowe Price New America Growth (PRWAX)
     2.74 %     51,607.291     $ 1,848,573.16  
885215327  
Thornburg Global Opportunities (THOIX)
     6.38 %     274,340.732     $ 4,301,662.68  
885215244  
Thornburg International Growth (TINGX)
     9.87 %     422,618.851     $ 6,656,246.90  
94904P708  
Weitz Partners III Opportunity (WPOPX)
     13.67 %     713,422.670     $ 9,224,555.12  
949915714  
Wells Fargo Advantage Growth, I (SGRNX)
     19.33 %     296,793.453     $ 13,038,136.39  
   
Equity Funds Subtotal
     74.17 %           $ 50,036,055.47  
                             
   
Income Funds:
                        
693390700  
PIMCo Total Return (PTTRX)
     16.83 %     1,023,883.328     $ 11,354,866.11  
                             
   
Cash and Money Markets:
                        
   
Cash held with Custodian
     9.00 %     6,066,900.770     $ 6,066,900.77  
                             
   
Portfolio Total
     100.00 %           $ 67,457,822.35  







 
 
 



Pearl Aggressive Growth Fund
 
Holdings as of 03/31/2012 (unaudited)*
  
Cusip
  
 
Equity Funds:
  
% Total Assets
  
Shares
    
Market Value
  
316389873  
Fidelity Leveraged Company Stock Fund (FLVCX)
     13.64 %     151,392.827     $ 4,450,949.11  
316389105  
Fidelity OTC (FOCPX)
     13.51 %     68,759.475     $ 4,408,169.94  
44134R867  
Hotchkis and Wiley Small Cap Value (HWSIX)
     11.34 %     86,015.017     $ 3,702,086.33  
52106N889  
Lazard Emerging Markets Fund (LZEMX)
     5.87 %     97,257.376     $ 1,916,942.88  
617440599  
Morgan Stanley Inst. Mid Cap Growth, P (MACGX)
     9.70 %     84,792.708     $ 3,165,311.79  
413838822  
Oakmark Global Select (OAKWX)
     15.58 %     411,528.637     $ 5,086,493.95  
701765877  
Parnassus Small Cap (PARSX)
     8.16 %     113,378.620     $ 2,663,263.78  
780905691  
Royce Opportunity (ROFIX)
     10.38 %     277,492.374     $ 3,388,181.89  
949915698  
Wells Fargo Advantage Growth, ADM (SGRKX)
     7.85 %     59,907.582     $ 2,562,846.36  
                             
   
Cash and Money Markets:
                        
   
Cash held with Custodian
     3.97 %     1,294,874.620     $ 1,294,874.62  
                             
   
Portfolio Total
     100.00 %           $ 32,639,120.65  

*
In accordance with Accounting Standards Codification 820 Fair Value Measurement and Disclosure (“ASC 820”), fair value is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment.  ASC 820 established a three-tier hierarchy to maximize the use of the observable market data and minimize the use of unobservable inputs and to establish classification of the fair value measurements for disclosure purposes.  Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including the technique or pricing model used to measure fair value and the risk inherent in the inputs to the valuation technique.  Inputs may be observable or unobservable.  Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the reporting entity.  Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants could use in pricing the asset or liability, developed based on the best information available in the circumstances.
 
 
The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
 
 
• Level 1 — quoted prices in active markets for identical investments.
• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risks, etc.).
• Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments.
 
 
 
 

The valuation techniques used by the Funds to measure fair value during the quarter ended March 31, 2012 maximized the use of observable inputs and minimized the use of unobservable inputs.

The following is a summary of the inputs used as of March 31, 2012 in valuing the Funds’ investments carried at fair value:

 
Valuation Inputs
 
  
Pearl Total
Return Fund
 
    
 
Pearl Aggressive
Growth Fund
 
  
Level 1— Quoted Prices:
   $ 67,457,822.35     $ 32,639,120.65  
Level 2 — Other Significant Observable Inputs:
     —       —  
Level 3 — Significant Unobservable Inputs:
     —       —  
Total
   $ 67,457,822.35     $ 32,639,120.65  
 
 
Item 2. Controls and Procedures.

(a) Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”), the “Disclosure Controls”) as of a date within 90 days prior to the filing date (the “Filing Date”) of this Form N-Q (the “Report”), the Disclosure Controls are effectively designed to ensure that information required to be disclosed by the registrant in the Report is recorded, processed, summarized and reported by the appropriate Filing Date and that information required to be disclosed in the Report is accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 
 
Item 3. Exhibits.

(a)
  
Certification pursuant to Rule 30a-2(a) under the 1940 Act, attached hereto as Exhibit (a)(1).
 

 
 
 

SIGNATURES
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the 1940 Act, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Pearl Mutual Funds


By:          /s/ David M. Stanley
David M. Stanley
Secretary


Date:       May 24, 2012



Pursuant to the requirements of the Securities Exchange Act of 1934 and the 1940 Act, this Report has been signed below by the following person on behalf of the registrant and in the capacities, and on the date indicated.


By:          /s/ Richard R. Phillips
Richard R. Phillips
President, Chief Executive Officer, Chief Operating Officer and
Chief Financial Officer

Date:       May 24, 2012