N-CSR 1 wcmpf-ncsra.htm PLUMB FUNDS ANNUAL REPORT 3-31-21
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 811-22045



Wisconsin Capital Funds, Inc.
(Exact name of registrant as specified in charter)



8401 Excelsior Drive, Suite 102
Madison, WI 53717
(Address of principal executive offices) (Zip code)



Thomas G. Plumb
8401 Excelsior Drive, Suite 102
Madison, WI 53717
(Name and address of agent for service)



(608) 960-4616
Registrant's telephone number, including area code



Date of fiscal year end: March 31, 2021



Date of reporting period:  March 31, 2021



Item 1. Reports to Stockholders.

(a)
Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).











Plumb Balanced Fund
Investor Shares (PLBBX)
Institutional Shares (PLIBX)
Class A Shares (PLABX)



Plumb Equity Fund
Investor Shares (PLBEX)
Institutional Shares (PLIEX)
Class A Shares (PLAEX)







ANNUAL REPORT
March 31, 2021







www.plumbfunds.com




PLUMB FUNDS
March 31, 2021
 
Dear Fellow Shareholders,
 
We are pleased to present the annual report dated March 31, 2021 for the Plumb Funds. The world lapped the anniversary of the initial pandemic breakout in the first quarter of 2021. We all recognize that in some ways the world will never be the same. But, as throughout history, a new normal replaces the old and we start to adjust to new realities. The stock and bond markets have been barometers reflecting change.  That is why our stock portfolio emphasis is focused on identifying disruptive changes and the drivers, enablers, and beneficiaries of major innovations. We then drill down into projected growth rates, profit margins, cash flow, sustainability, and valuations.
 
The pandemic accelerated the adoption of many technologies and behavioral changes that were already quite strong before the crisis started.  Virtual shopping, digital wallet, streaming entertainment and business meetings, cloud data storage, virtualization, software as a service business models that enhance security, reduce processing time and expense, etc. all were quite developed and immediately able to fill voids left by the economic shutdowns.
 
It also accelerated the process of reducing the footprint of brick-and-mortar retailers, made the very competitive restaurant industry even tougher to survive and increased the economic divide between economies and within economies.  So, while China and much of the United States is poised for significant economic recovery in 2021, Europe and the emerging economies are still under significant pressure with muted recovery prospects for this year.
 
The bond market reflects supply and demand, like all other markets. In the United States government fiscal and monetary policies set the stage. The Federal Reserve has pledged to remain accommodative (keeping interest rates low) in its policies well into next year and possibly beyond.  But while their initial actions last year drove down rates along the entire maturity spectrum, we have seen ten-year Treasury yields pick up over 1% since last summer.
 
The United States stock markets reflected optimism over the developing recovery with the Dow Jones Industrial Average, the S&P 500 and NASDAQ all showing single digit returns for the first quarter and over 50% returns over the last twelve months.1,2  As the focus of investors turned to cyclical recovery plays, the growth stocks that served us so well last year took a rest in the first part of calendar 2021. Please review the Plumb Fund Fact sheets under “Literature” at plumbfunds.com. We are very proud that both Funds have provided returns exceeding their benchmarks for the one, three, five and ten year periods ending March 31, 2021.

 
___________________
 
1
https://ycharts.com/indicators/sp_500_12_month_total_return
2
https://www.nasdaq.com/articles/a-very-strong-q1-and-2021-earnings-picture-2021-03-26

3


PLUMB FUNDS
We believe that the worldwide recovery from the pandemic induced economic shutdown will continue for the rest of 2021, albeit unevenly and not universally.  For example, it is estimated that five percent of all home mortgages are still in forbearance programs.  Some people, companies and countries will come back stronger than ever while some will have a very difficult time dealing with deficiencies, debt levels  and structural problems that became more exposed during the crisis.

We are still trying to identify and hold long-term winners with our equity investments and are generally keeping fixed income exposure limited to shorter duration investment grade bonds.  We believe this has the potential to continue to benefit you as the year progresses.
 
We hope you, your family, friends and colleagues stay safe through all of this.
 

Thomas G. Plumb
 
 
SPXT-S&P 500 Total Return Index. S&P 500 is an unmanaged index which is widely regarded as the standard for measuring large-cap U.S. stock market performance. Calculated intraday by S&P based on the price changes and reinvested dividends of SPX with a starting date of Jan 4, 1988.
 
Nasdaq is a global electronic marketplace for buying and selling securities. Nasdaq was created by the National Association of Securities Dealers (NASD) to enable investors to trade securities on a computerized, speedy, and transparent system, and commenced operations on February 8, 1971.
 
It is not possible to invest directly in an index.
 
Past performance does not guarantee future results.
 
Opinions expressed are those of the author and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
 
Mutual fund investing involves risk. Principal loss is possible.
 
The fund may invest in small and mid-sized companies which involve additional risks such as limited liquidity and greater volatility. The funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Because the funds may invest in ETFs, they are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a discount to its net asset value (“NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a fund’s ability to sell its
 

 
4


PLUMB FUNDS
shares. The fund may also use options and future contracts, which have the risks of unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. The investment in options is not suitable for all investors. The Plumb Balanced Fund will invest in debt securities, which typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.
 
Fund holdings are subject to change at any time and should not be considered a recommendation to buy or sell any security.
 
Plumb Funds are distributed by Quasar Distributors, LLC, distributor.
 







5


PLUMB FUNDS
Expense Example
March 31, 2021 (Unaudited)

As a shareholder of the Plumb Funds (the “Funds”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees (for Class A Shares); and (2) ongoing costs, including investment advisory fees; distribution (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 and held for the entire period (October 1, 2020 – March 31, 2021).
 
Actual Expenses
 
The first line of the table on the following page provides information about actual account values and actual expenses. However, the table does not include shareholder-specific fees such as the $15.00 fee charged for wire redemptions. The table also does not include portfolio trading commissions and related trading costs. You may use the information in this line, 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 the Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Example for Comparison Purposes
 
The second line of the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balanced 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 table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees, which, although not charged by the Funds, may be charged by other funds. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
 


6


PLUMB FUNDS
Expense Example
March 31, 2021 (Unaudited) (Continued)

Plumb Balanced Fund
   
Ending
 
 
Beginning
Account Value
Expenses Paid
 
Account Value
March 31, 2021
During the Period
Actual –
     
  Investor Shares(1)
$1,000.00
$1,084.20
$6.18
  Institutional Shares(2)
$1,000.00
$1,085.50
$5.15
  Class A Shares(3)
$1,000.00
$   951.30
$1.59
       
Hypothetical –
     
  Investor Shares(4)
$1,000.00
$1,019.00
$5.99
  Institutional Shares(5)
$1,000.00
$1,020.00
$4.99
  Class A Shares(6)
$1,000.00
$1,038.10
$6.05

(1)
Expenses are equal to the Fund’s annualized six-month expense ratio of 1.19%, multiplied by the average account value over the period,  multiplied by 182/365 (to reflect the partial year period).
(2)
Expenses are equal to the Fund’s annualized six-month expense ratio of 0.99%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the partial year period).
(3)
The Inception date for the Plumb Balanced Fund Class A Shares was February 8, 2021. Expenses are equal to the Fund’s annualized expense ratio of 1.19%, multiplied by the average account value over the period, multiplied by 50/365 (to reflect the partial year period).
(4)
Assumes 5% return per year before expenses. Expenses are equal to the Fund’s annualized six-month expense ratio of 1.19%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the partial year period).
(5)
Assumes 5% return per year before expenses. Expenses are equal to the Fund’s annualized six-month expense ratio of 0.99%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the partial year period).
(6)
Assumes 5% return per year before expenses. Expenses are equal to the Fund’s annualized expense ratio of 1.19%, multiplied by the average account value over the period, multiplied by 50/365 (to reflect the partial year period).


7


PLUMB FUNDS
Expense Example
March 31, 2021 (Unaudited) (Continued)

Plumb Equity Fund
   
Ending
 
 
Beginning
Account Value
Expenses Paid
 
Account Value
March 31, 2021
During the Period
Actual –
     
  Investor Shares(1)
$1,000.00
$1,137.00
$6.34
  Institutional Shares(2)
$1,000.00
$1,138.10
$5.28
  Class A Shares(3)
$1,000.00
$   925.70
$1.57
       
Hypothetical –
     
  Investor Shares(4)
$1,000.00
$1,019.00
$5.99
  Institutional Shares(5)
$1,000.00
$1,020.00
$4.99
  Class A Shares(6)
$1,000.00
$1,038.10
$6.05

(1)
Expenses are equal to the Fund’s annualized six-month expense ratio of 1.19%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the partial year period).
(2)
Expenses are equal to the Fund’s annualized six-month expense ratio of 0.99%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the partial year period).
(3)
The Inception date for the Plumb Equity Fund Class A Shares was February 8, 2021. Expenses are equal to the Fund’s annualized expense ratio of 1.19%, multiplied by the average account value over the period, multiplied by 50/365 (to reflect the partial year period).
(4)
Assumes 5% return per year before expenses. Expenses are equal to the Fund’s annualized six-month expense ratio of 1.19%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the partial year period).
(5)
Assumes 5% return per year before expenses. Expenses are equal to the Fund’s annualized six-month expense ratio of 0.99%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the partial year period).
(6)
Assumes 5% return per year before expenses. Expenses are equal to the Fund’s annualized expense ratio of 1.19%, multiplied by the average account value over the period, multiplied by 50/365 (to reflect the partial year period).


8


PLUMB FUNDS
Plumb Balanced Fund (Unaudited)

Comparison of Change in Value of a Hypothetical $10,000 Investment
from inception of May 24, 2007 to March 31, 2021



Average Annual Rate of Return
Periods ended March 31, 2021

 
1 Year
3 Year
5 Year
10 Year
Since Inception
Plumb Balanced Fund –
         
  Investor Shares
38.35%
12.39%
13.76%
9.57%
6.56%
Plumb Balanced Fund –
         
  Institutional Shares*
38.68%
12.92%
13.99%
9.79%
6.77%
Plumb Balanced Fund –
         
  Class A Shares
         
  (w sales charge)**
30.39%
10.18%
12.42%
8.92%
6.10%
Plumb Balanced Fund –
         
  Class A Shares
         
  (w/o sales charge)**
38.35%
12.39%
13.76%
9.57%
6.56%
Bloomberg Barclays
         
  Capital Intermediate
         
  Government/Credit
         
  Bond Index
  2.01%
  4.36%
  2.75%
2.88%
3.68%
MSCI EAFE Index
41.60%
  3.26%
  5.98%
2.64%
-0.12% 
S&P 500 Index
56.35%
16.78%
16.29%
13.91%  
9.51%
Blended Benchmark
33.89%
11.35%
10.65%
9.06%
6.80%

*
Performance shown for the Institutional Shares prior to its inception on August 1, 2020 reflects the performance of the Investor Shares adjusted for the fees and expenses of the Institutional Shares.

 
9


PLUMB FUNDS

**
Performance shown for the Class A Shares prior to its inception on February 8, 2021 reflects the performance of the Investor Shares adjusted for the fees and expenses of the Class A Shares and sales charge of 5.75%

Per the prospectus dated February 5, 2021, the gross expense ratios are 1.19%, 0.95% and 1.19% for the Investor Shares, Institutional Shares and Class A Shares, respectively.
 
Performance data quoted 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 1-866-987-7888.
 
The line graph and performance table do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Total return calculations reflect expense reimbursements and fee waivers.
 
The Barclays Capital Intermediate Government/Credit Bond Index is an unmanaged index which includes nonconvertible bonds publicly issued by the U.S. government or its agencies; corporate bonds guaranteed by the U.S. government and quasi-federal corporations; and publicly issued, fixed rate, nonconvertible domestic bonds of companies in industry, public utilities, and finance.
 
The MSCI EAFE Index in an index intended to reflect the performance of major developed countries’ international equity markets, besides the United States and Canada.
 
The Standard & Poor’s 500 Index (S&P 500) is an unmanaged, capitalization-weighted index generally representative of the U.S. market for large capitalization stocks.
 
The Blended Benchmark is made up of 55% S&P 500 Index, 35% Barclays Capital Intermediate Government/Credit Bond Index, and 10% MSCI EAFE Index.
 
The Fund’s portfolio holdings may differ significantly from the securities held in the relevant index and, unlike a mutual fund, an unmanaged index assumes no transaction costs, taxes, management fees or other expenses. You cannot invest directly in an index.
 


10


PLUMB FUNDS
Plumb Equity Fund (Unaudited)

Comparison of Change in Value of a Hypothetical $10,000 Investment
from inception of May 24, 2007 to March 31, 2021



Average Annual Rate of Return
Periods ended March 31, 2021
 
 
1 Year
3 Year
5 Year
10 Year
Since Inception
Plumb Equity Fund –
         
  Investor Shares
59.42%
16.45%
20.54%
13.09%
8.50%
Plumb Equity Fund –
         
  Institutional Shares*
59.78%
16.70%
20.78%
13.31%
8.72%
Plumb Equity Fund –
         
  Class A Shares
         
  (w sales charge)**
50.24%
14.17%
19.12%
12.42%
8.04%
Plumb Equity Fund –
         
  Class A Shares
         
  (w/o sales charge)**
59.42%
16.45%
20.54%
13.09%
8.50%
S&P 500 Index
56.35%
16.78%
16.29%
13.91%
9.51%
MSCI EAFE Index
41.60%
  3.26%
  5.98%
  2.64%
-0.12% 
Blended Benchmark
54.86%
15.39%
15.25%
12.76%
8.54%

*
 
Performance shown for the Institutional Shares prior to its inception on August 1, 2020 reflects the performance of the Investor Shares adjusted for the fees and expenses of the Institutional Shares.
**
 
Performance shown for the Class A Shares prior to its inception on February 8, 2021 reflects the performance of the Investor Shares adjusted for the fees and expenses of the Class A Shares and sales charge of 5.75%.

 

 
11


PLUMB FUNDS
Per the prospectus dated February 5, 2021, the gross expense ratios are 1.44%, 1.22% and 1.44% for the Investor Shares, Institutional Shares and Class A Shares, respectively.
 
Performance data quoted 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 1-866-987-7888.
 
The line graph and performance table do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Total return calculations reflect expense reimbursements and fee waivers.
 
The Standard & Poor’s 500 Index (S&P 500) is an unmanaged, capitalization-weighted index generally representative of the U.S. market for large capitalization stocks.
 
The MSCI EAFE Index in an index intended to reflect the performance of major developed countries’ international equity markets, besides the United States and Canada.
 
The Blended Benchmark is made up of 90% S&P 500 Index and 10% MSCI EAFE Index.
 
The Fund’s portfolio holdings may differ significantly from the securities held in the relevant index and, unlike a mutual fund, an unmanaged index assumes no transaction costs, taxes, management fees or other expenses. You cannot invest directly in an index.
 


12


PLUMB FUNDS
Plumb Balanced Fund
Investments by Industry Sector as of March 31, 2021
(as a Percentage of Total Investments) (Unaudited)






13


PLUMB FUNDS
Plumb Balanced Fund
Investments by Asset Allocation as of March 31, 2021
(as a Percentage of Total Investments) (Unaudited)








14


PLUMB FUNDS
Plumb Equity Fund
Investments by Industry Sector as of March 31, 2021
(as a Percentage of Total Investments) (Unaudited)




The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) 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. Bank Global Fund Services.
 





15


PLUMB FUNDS
Plumb Balanced Fund
Schedule of Investments – March 31, 2021

   
Shares
   
Value
 
COMMON STOCKS – 62.11%
           
             
Banks – 1.34%
           
JPMorgan Chase & Co.
   
12,500
   
$
1,902,875
 
                 
Capital Goods – 2.61%
               
Lockheed Martin Corp.
   
10,000
     
3,695,000
 
                 
Commercial & Professional Services – 1.84%
               
Copart, Inc. (a)
   
24,000
     
2,606,640
 
                 
Diversified Financials – 1.34%
               
Discover Financial Services
   
20,000
     
1,899,800
 
                 
Food, Beverage & Tobacco – 2.26%
               
Constellation Brands, Inc. – Class A
   
14,000
     
3,192,000
 
                 
Health Care Equipment & Services – 2.55%
               
Guardant Health, Inc. (a)
   
14,000
     
2,137,100
 
Intuitive Surgical, Inc. (a)
   
2,000
     
1,477,880
 
             
3,614,980
 
Media & Entertainment – 2.04%
               
Alphabet, Inc. – Class A (a)
   
1,400
     
2,887,528
 
                 
Pharmaceuticals, Biotechnology & Life Sciences – 1.30%
               
Exact Sciences Corp. (a)
   
14,000
     
1,844,920
 
                 
Retailing – 6.83%
               
Alibaba Group Holding Ltd. ADR (a)(b)
   
13,000
     
2,947,490
 
Amazon.com, Inc. (a)
   
1,100
     
3,403,488
 
MercadoLibre, Inc. (a)
   
2,250
     
3,312,315
 
             
9,663,293
 
Semiconductors & Semiconductor Equipment – 3.13%
               
NVIDIA Corp.
   
8,300
     
4,431,619
 
                 
Software & Services – 34.28%
               
Adobe, Inc. (a)
   
7,250
     
3,446,432
 
Adyen NV – ADR (a)(b)
   
62,500
     
2,795,625
 
ANSYS, Inc. (a)
   
6,800
     
2,309,008
 


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

16


PLUMB FUNDS
Plumb Balanced Fund
Schedule of Investments – March 31, 2021 (Continued)

   
Shares
   
Value
 
COMMON STOCKS (Continued)
           
             
Software & Services (Continued)
           
Autodesk, Inc. (a)
   
12,250
   
$
3,395,087
 
Coupa Software, Inc. (a)
   
9,000
     
2,290,320
 
Domo, Inc. (a)
   
38,500
     
2,167,165
 
FleetCor Technologies, Inc. (a)
   
13,500
     
3,626,505
 
Mastercard, Inc. – Class A
   
12,750
     
4,539,638
 
Microsoft Corp.
   
16,700
     
3,937,359
 
Mitek Systems, Inc. (a)
   
135,000
     
1,968,300
 
Pagseguro Digital Ltd. – ADR (a)(b)
   
57,114
     
2,644,378
 
PayPal Holdings, Inc. (a)
   
15,500
     
3,764,020
 
Square, Inc. (a)
   
9,000
     
2,043,450
 
Tyler Technologies, Inc. (a)
   
5,750
     
2,441,048
 
Visa, Inc. – Class A
   
19,000
     
4,022,870
 
WEX, Inc. (a)
   
15,000
     
3,138,300
 
             
48,529,505
 
Technology Hardware & Equipment – 2.59%
               
Apple, Inc.
   
30,000
     
3,664,500
 
TOTAL COMMON STOCKS
               
  (Cost $54,185,654)
           
87,932,660
 
                 
   
Principal
         
   
Amount
         
                 
CORPORATE BONDS – 37.36%
               
                 
Automobiles & Components – 0.36%
               
Toyota Industries Corp.
               
  3.110%, 03/12/2022 (b)
 
$
500,000
     
511,719
 
                 
Banks – 11.92%
               
BAC Capital Trust XIII
               
  4.000%, (3 Month LIBOR USD + 0.400%)
               
  Perpetual Maturity (c)
   
1,200,000
     
1,186,500
 
Bank of America Corp.
               
  1.384%, (3 Month LIBOR USD + 1.160%)
               
  01/20/2023 (c)
   
2,000,000
     
2,015,878
 


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

17


PLUMB FUNDS
Plumb Balanced Fund
Schedule of Investments – March 31, 2021 (Continued)

   
Principal
       
   
Amount
   
Value
 
CORPORATE BONDS (Continued)
           
             
Banks (Continued)
           
Bank OZK
           
  5.500%, (3 Month LIBOR USD + 4.425%)
           
  07/01/2026 (c)
 
$
2,985,000
   
$
3,010,964
 
Citigroup, Inc.
               
  1.292%, (3 Month LIBOR USD + 1.100%)
               
  05/17/2024 (c)
   
2,500,000
     
2,536,797
 
  1.568%, (3 Month LIBOR USD + 1.350%)
               
  04/25/2024 (c)
   
500,000
     
507,879
 
  4.700%, (SOFR + 3.234%) Perpetual Maturity (c)
   
600,000
     
605,325
 
Home BancShares, Inc.
               
  5.625%, (3 Month LIBOR USD + 3.575%)
               
  04/15/2027 (c)
   
2,295,000
     
2,358,333
 
JPMorgan Chase & Co.
               
  6.750%, (3 Month LIBOR USD + 3.780%)
               
  Perpetual Maturity (c)
   
2,325,000
     
2,546,534
 
Pinnacle Financial Partners, Inc.
               
  4.125%, (3 Month LIBOR USD + 2.775%)
               
  09/15/2029 (c)
   
1,575,000
     
1,569,320
 
TriState Capital Holdings, Inc.
               
  5.750%, (3 Month LIBOR USD + 5.36%)
               
  05/15/2030 (c)
   
500,000
     
541,561
 
             
16,879,091
 
Capital Goods – 2.16%
               
Carlisle Cos, Inc.
               
  3.500%, 12/01/2024
   
500,000
     
542,250
 
General Electric Co.
               
  1.184%, (3 Month LIBOR USD + 1.000%)
               
  03/15/2023 (c)
   
1,000,000
     
1,011,086
 
Owens Corning
               
  4.200%, 12/15/2022
   
1,200,000
     
1,258,553
 
Raytheon Technologies Corp.
               
  3.100%, 11/15/2021
   
250,000
     
252,491
 
             
3,064,380
 
Diversified Financials – 5.38%
               
Discover Financial Services
               
  6.125%, (H15T5Y + 5.783%)
               
  Perpetual Maturity (c)
   
250,000
     
278,438
 


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

18


PLUMB FUNDS
Plumb Balanced Fund
Schedule of Investments – March 31, 2021 (Continued)

   
Principal
       
   
Amount
   
Value
 
CORPORATE BONDS (Continued)
           
             
Diversified Financials (Continued)
           
General Motors Financial Co, Inc.
           
  3.450%, 01/14/2022
 
$
2,500,000
   
$
2,550,403
 
The Charles Schwab Corp.
  5.375%, (H15T5Y + 4.971%)
               
               
  Perpetual Maturity (c)
   
1,000,000
     
1,111,000
 
The Goldman Sachs Group, Inc.
               
  1.938%, (3 Month LIBOR USD + 1.700%)
               
  04/05/2026 (c)
   
1,000,000
     
1,013,179
 
Toyota Motor Credit Corp.
               
  1.150%, 05/26/2022
   
2,625,000
     
2,654,341
 
             
7,607,361
 
Food, Beverage & Tobacco – 0.75%
               
General Mills, Inc.
               
  3.150%, 12/15/2021
   
450,000
     
455,758
 
  3.200%, 04/16/2021
   
200,000
     
200,244
 
PepsiCo., Inc.
               
  0.767%, (3 Month LIBOR USD + 0.530%)
               
  10/06/2021 (c)
   
410,000
     
411,132
 
             
1,067,134
 
Health Care Equipment & Services – 1.62%
               
CVS Pass-Through Trust
               
  6.943%, 01/10/2030
   
193,012
     
233,143
 
Kaiser Foundation Hospitals
               
  3.500%, 04/01/2022
   
2,000,000
     
2,061,839
 
             
2,294,982
 
Insurance – 1.15%
               
Fidelity National Financial, Inc.
               
  5.500%, 09/01/2022
   
1,000,000
     
1,068,211
 
Old Republic International Corp.
               
  4.875%, 10/01/2024
   
500,000
     
564,051
 
             
1,632,262
 
Pharmaceuticals, Biotechnology
               
  & Life Sciences – 0.91%
               
Amgen, Inc.
               
  3.625%, 05/15/2022
   
1,250,000
     
1,280,542
 


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

19


PLUMB FUNDS
Plumb Balanced Fund
Schedule of Investments – March 31, 2021 (Continued)

   
Principal
       
   
Amount
   
Value
 
CORPORATE BONDS (Continued)
           
             
Retailing – 2.07%
           
Expedia Group, Inc.
           
  5.000%, 02/15/2026
 
$
2,600,000
   
$
2,936,997
 
                 
Semiconductors & Semiconductor Equipment – 3.62%
               
Intel Corp.
               
  1.700%, 05/19/2021
   
1,200,000
     
1,199,401
 
NVIDIA Corp.
               
  2.200%, 09/16/2021
   
1,245,000
     
1,254,169
 
Qorvo, Inc.
               
  4.375%, 10/15/2029
   
2,500,000
     
2,673,075
 
             
5,126,645
 
Software & Services – 5.26%
               
CDK Global, Inc.
               
  4.875%, 06/01/2027
   
2,000,000
     
2,093,250
 
PayPal Holdings, Inc.
               
  2.200%, 09/26/2022
   
1,548,000
     
1,588,866
 
VeriSign, Inc.
               
  4.750%, 07/15/2027
   
2,000,000
     
2,126,250
 
VMware, Inc.
               
  3.900%, 08/21/2027
   
1,500,000
     
1,637,754
 
             
7,446,120
 
Technology Hardware & Equipment – 0.88%
               
Motorola Solutions, Inc.
               
  4.000%, 09/01/2024
   
1,135,000
     
1,243,585
 
                 
Transportation – 1.28%
               
Burlington Northern Santa Fe LLC
               
  3.450%, 09/15/2021
   
996,000
     
1,002,159
 
Union Pacific Corp.
               
  3.200%, 06/08/2021
   
800,000
     
804,156
 
             
1,806,315
 
TOTAL CORPORATE BONDS
               
  (Cost $52,517,804)
           
52,897,133
 


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

20


PLUMB FUNDS
Plumb Balanced Fund
Schedule of Investments – March 31, 2021 (Continued)

   
Shares
   
Value
 
SHORT TERM INVESTMENT – 1.54%
           
             
Money Market Fund – 1.54%
           
First American Government Obligations Fund –
           
  Class X – 0.04% (d)
   
2,186,155
   
$
2,186,155
 
TOTAL SHORT TERM INVESTMENT
               
  (Cost $2,186,155)
           
2,186,155
 
                 
Total Investments (Cost $108,889,613) – 101.01%
           
143,015,948
 
Liabilities in Excess of Other Assets – (1.01)%
           
(1,429,901
)
TOTAL NET ASSETS – 100.00%
         
$
141,586,047
 

Percentages are stated as a percent of net assets.
ADR – American Depositary Receipt
H15T5Y – 5 Year Treasury Constant Maturity Rate
LIBOR – London Inter-bank Offered Rate
SOFR – Secured Overnight Financing Rate
(a)
Non-income producing security.
(b)
Foreign issued security. Foreign concentration is as follows: Cayman Islands: 3.95%, Netherlands 1.97%, Japan: 0.36%.
(c)
Variable or floating rate security based on a reference index and spread. The rate listed is as of March 31, 2021.
(d)
Rate shown is the 7-day effective yield.

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 Global Fund Services, LLC.
 



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

21


PLUMB FUNDS
Plumb Equity Fund
Schedule of Investments – March 31, 2021

   
Shares
   
Value
 
COMMON STOCKS – 99.18%
           
             
Capital Goods – 3.19%
           
Lockheed Martin Corp.
   
3,300
   
$
1,219,350
 
                 
Commercial & Professional Services – 3.27%
               
Copart, Inc. (a)
   
11,500
     
1,249,015
 
                 
Food, Beverage & Tobacco – 3.43%
               
Constellation Brands, Inc. – Class A
   
5,750
     
1,311,000
 
                 
Health Care Equipment & Services – 5.68%
               
Guardant Health, Inc. (a)
   
6,000
     
915,900
 
Intuitive Surgical, Inc. (a)
   
1,700
     
1,256,198
 
             
2,172,098
 
Media & Entertainment – 3.77%
               
Alphabet, Inc. – Class A (a)
   
700
     
1,443,764
 
                 
Pharmaceuticals, Biotechnology & Life Sciences – 2.58%
               
Exact Sciences Corp. (a)
   
7,500
     
988,350
 
                 
Retailing – 10.92%
               
Alibaba Group Holding Ltd. – ADR (a)(b)
   
4,500
     
1,020,285
 
Amazon.com, Inc. (a)
   
450
     
1,392,336
 
MercadoLibre, Inc. (a)
   
1,200
     
1,766,568
 
             
4,179,189
 
Semiconductors & Semiconductor Equipment – 5.30%
               
NVIDIA Corp.
   
3,800
     
2,028,934
 
                 
Software & Services – 57.21%
               
Adobe, Inc. (a)
   
3,000
     
1,426,110
 
Adyen NV – ADR (a)(b)
   
30,000
     
1,341,900
 
ANSYS, Inc. (a)
   
3,000
     
1,018,680
 
Autodesk, Inc. (a)
   
4,500
     
1,247,175
 
Coupa Software, Inc. (a)
   
3,600
     
916,128
 
Domo, Inc. (a)
   
18,000
     
1,013,220
 
Fiserv, Inc. (a)
   
8,700
     
1,035,648
 
FleetCor Technologies, Inc. (a)
   
5,000
     
1,343,150
 
Mastercard, Inc. – Class A
   
5,000
     
1,780,250
 
Microsoft Corp.
   
6,750
     
1,591,448
 


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


22


PLUMB FUNDS
Plumb Equity Fund
Schedule of Investments – March 31, 2021 (Continued)

   
Shares
   
Value
 
COMMON STOCKS (Continued)
           
             
Software & Services (Continued)
           
Mitek Systems, Inc. (a)
   
55,000
   
$
801,900
 
Pagseguro Digital Ltd. – ADR (a)(b)
   
25,000
     
1,157,500
 
PayPal Holdings, Inc. (a)
   
6,750
     
1,639,170
 
Square, Inc. (a)
   
5,800
     
1,316,890
 
Tyler Technologies, Inc. (a)
   
2,500
     
1,061,325
 
Visa, Inc. – Class A
   
8,200
     
1,736,186
 
WEX, Inc. (a)
   
7,000
     
1,464,540
 
             
21,891,220
 
Technology Hardware & Equipment – 3.83%
               
Apple, Inc.
   
12,000
     
1,465,800
 
TOTAL COMMON STOCKS
               
  (Cost $21,517,065)
           
37,948,720
 
                 
SHORT TERM INVESTMENT – 1.03%
               
                 
Money Market Fund – 1.03%
               
First American Government Obligations Fund –
               
  Class X – 0.04% (c)
   
396,232
     
396,232
 
TOTAL SHORT TERM INVESTMENT
               
  (Cost $396,232)
           
396,232
 
                 
Total Investments (Cost $21,913,297) – 100.21%
           
38,344,952
 
Liabilities in Excess of Other Assets – (0.21)%
           
(81,635
)
TOTAL NET ASSETS – 100.00%
         
$
38,263,317
 

Percentages are stated as a percent of net assets.
ADR – American Depositary Receipt
(a)
Non-income producing security.
(b)
Foreign issued security. Foreign concentration is as follows: Cayman Islands: 5.69%, Netherlands: 3.51%.
(c)
Rate shown is the 7-day effective yield.

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 Global Fund Services, LLC.
 


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

23


PLUMB FUNDS
Statements of Assets and Liabilities
March 31, 2021

   
Plumb
   
Plumb
 
   
Balanced
   
Equity
 
   
Fund
   
Fund
 
Assets
           
Investments, at value*
 
$
143,015,948
   
$
38,344,952
 
Dividends and interest receivable
   
451,264
     
16
 
Prepaid assets
   
78,252
     
49,335
 
Receivable for fund shares sold
   
214,853
     
850
 
Total Assets
   
143,760,317
     
38,395,153
 
                 
Liabilities
               
Payable for investment securities purchased
   
1,945,576
     
 
Payable for fund shares redeemed
   
88,313
     
67,011
 
Payable to Adviser (Note 4)
   
60,364
     
188
 
Accrued 12b-1 fees (Note 3)
   
     
17,012
 
Accrued Directors’ fees
   
7,856
     
2,204
 
Accrued expenses and other liabilities
   
72,161
     
45,421
 
Total Liabilities
   
2,174,270
     
131,836
 
Total Net Assets
 
$
141,586,047
   
$
38,263,317
 
                 
Net Assets Consist Of:
               
Paid in Capital
 
$
100,575,065
   
$
17,796,099
 
Total distributable earnings
   
41,010,982
     
20,467,218
 
Total Net Assets
 
$
141,586,047
   
$
38,263,317
 
                 
Investor Shares
               
Net Assets
 
$
94,514,421
   
$
23,403,668
 
Capital shares outstanding, $0.001 par value
               
  (200 million shares issued each)
   
2,420,998
     
671,141
 
Net asset value, offering and
               
  redemption price per share
 
$
39.04
   
$
34.87
 
                 
Institutional Shares**
               
Net Assets
 
$
47,024,068
   
$
14,813,368
 
Capital shares outstanding, $0.001 par value
               
  (200 million shares issued each)
   
1,204,603
     
424,969
 
Net asset value, offering and
               
  redemption price per share
 
$
39.04
   
$
34.86
 
                 
Class A Shares***
               
Net Assets
 
$
47,558
   
$
46,281
 
Capital shares outstanding, $0.001 par value
               
  (200 million shares issued each)
   
1,218
     
1,327
 
Net asset value, offering and
               
  redemption price per share
 
$
39.04
   
$
34.87
 

*
 
Cost of Investments
 
$
108,889,613
   
$
21,913,297
 
**
 
Institutional Shares began operations on August 1, 2020.
               
***
 
Class A Shares began operations on February 8, 2021.
               


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

24


PLUMB FUNDS
Statements of Operations
For the Fiscal Year Ended March 31, 2021

   
Plumb
   
Plumb
 
   
Balanced
   
Equity
 
   
Fund
   
Fund
 
Investment Income:
           
Dividend income*
 
$
458,709
   
$
160,316
 
Interest income
   
1,232,879
     
951
 
Total Investment Income
   
1,691,588
     
161,267
 
                 
Expenses:
               
Investment Advisor’s fee (Note 4)
   
849,051
     
257,060
 
12b-1 fees – Investor shares (Note 3)
   
271,669
     
71,338
 
12b-1 fees – Class A shares (Note 3)
   
17
     
17
 
Fund administration and accounting fees
   
140,847
     
88,967
 
Transfer agent fees and expenses
   
97,784
     
51,605
 
Registration fees
   
52,019
     
42,258
 
Legal fees
   
45,784
     
37,941
 
Director fees and expenses
   
43,808
     
13,295
 
Audit and tax fees
   
16,239
     
16,239
 
Printing and mailing expense
   
14,578
     
3,619
 
Custody fees
   
10,102
     
10,001
 
Insurance expense
   
9,020
     
3,030
 
Total expenses before Adviser
               
  waiver and/or recoupment
   
1,550,918
     
595,370
 
Less: Fees waived by Adviser (Note 4)
   
(42,624
)
   
(140,256
)
Net expenses before Adviser recoupment
   
1,508,294
     
455,114
 
Fees recouped by Adviser (Note 4)
   
2,225
     
 
Net expenses
   
1,510,519
     
455,114
 
Net Investment Income (Loss)
   
181,069
     
(293,847
)
                 
Realized and Unrealized Gain:
               
Net realized gain on investments
   
7,548,512
     
7,292,241
 
Net change in unrealized
               
  appreciation on investments
   
29,931,654
     
10,494,676
 
Net Realized and Unrealized Gain on Investments
   
37,480,166
     
17,786,917
 
                 
Net Increase in Net Assets
               
  Resulting from Operations
 
$
37,661,235
   
$
17,493,070
 

*
Net of foreign withholding taxes of $8,378 and $844, respectively.


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

25


PLUMB FUNDS
Plumb Balanced Fund
Statements of Changes in Net Assets

   
For the
   
For the
 
   
Year Ended
   
Year Ended
 
   
March 31,
   
March 31,
 
   
2021
   
2020
 
Operations:
           
Net investment income
 
$
181,069
   
$
645,602
 
Net realized gain (loss) on investments
   
7,548,512
     
(201,279
)
Net realized loss on foreign currency translation
   
     
(492
)
Net change in unrealized appreciation
               
  (depreciation) on investments
   
29,931,654
     
(8,109,086
)
Net increase (decrease) in net assets
               
  resulting from operations
   
37,661,235
     
(7,665,255
)
                 
Distributions To Shareholders:
               
Net distributions – Investor shares
   
(432,494
)
   
(2,794,939
)
Net distributions – Institutional shares*
   
(212,600
)
   
 
Total distributions to shareholders
   
(645,094
)
   
(2,794,939
)
                 
Capital Share Transactions:
               
Proceeds from shares sold – Investor shares
   
40,229,343
     
50,940,980
 
Proceeds from shares sold – Institutional shares*
   
57,505,210
     
 
Proceeds from shares sold – Class A shares**
   
50,000
     
 
Shares issued in reinvestment of dividends –
               
  Investor shares
   
400,341
     
2,460,902
 
Shares issued in reinvestment of dividends –
               
  Institutional shares*
   
212,600
     
 
Cost of shares redeemed – Investor shares
   
(76,145,029
)
   
(43,932,544
)
Cost of shares redeemed – Institutional shares*
   
(13,830,801
)
   
 
Net increase in net assets from
               
  capital share transactions
   
8,421,664
     
9,469,338
 
                 
Total increase (decrease) in net assets
   
45,437,805
     
(990,856
)
                 
Net Assets:
               
Beginning of year
   
96,148,242
     
97,139,098
 
End of year
 
$
141,586,047
   
$
96,148,242
 


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

26


PLUMB FUNDS
Plumb Balanced Fund
Statements of Changes in Net Assets (Continued)

   
For the
   
For the
 
   
Year Ended
   
Year Ended
 
   
March 31,
   
March 31,
 
   
2021
   
2020
 
Change in Shares Outstanding:
           
Investor Shares
           
Shares sold
   
1,109,270
     
1,584,010
 
Shares issued in reinvestment of dividends
   
10,019
     
75,257
 
Shares redeemed
   
(2,092,013
)
   
(1,401,044
)
Net increase (decrease)
   
(972,724
)
   
258,223
 
 
               
Institutional Shares*
               
Shares sold
   
1,556,512
     
 
Shares issued in reinvestment of dividends
   
5,324
     
 
Shares redeemed
   
(357,233
)
   
 
Net increase
   
1,204,603
     
 
 
               
Class A Shares**
               
Shares sold
   
1,218
     
 
Net increase
   
1,218
     
 

*
 
Institutional Shares began operations on August 1, 2020.
**
 
Class A Shares began operations on February 8, 2021.


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

27


PLUMB FUNDS
Plumb Equity Fund
Statements of Changes in Net Assets

   
For the
   
For the
 
   
Year Ended
   
Year Ended
 
   
March 31,
   
March 31,
 
   
2021
   
2020
 
Operations:
           
Net investment loss
 
$
(293,847
)
 
$
(274,979
)
Net realized gain on investments
   
7,292,241
     
1,425,860
 
Net change in unrealized appreciation
               
  (depreciation) on investments
   
10,494,676
     
(5,470,975
)
Net increase (decrease) in net assets
               
  resulting from operations
   
17,493,070
     
(4,320,094
)
                 
Distributions To Shareholders:
               
Net distributions – Investor shares
   
(2,749,763
)
   
(1,654,811
)
Net distributions – Institutional shares*
   
(1,002,629
)
   
 
Total distributions to shareholders
   
(3,752,392
)
   
(1,654,811
)
                 
Capital Share Transactions:
               
Proceeds from shares sold – Investor shares
   
3,313,604
     
6,139,788
 
Proceeds from shares sold – Institutional shares*
   
20,538,488
     
 
Proceeds from shares sold – Class A shares**
   
50,000
     
 
Shares issued in reinvestment of dividends –
               
  Investor shares
   
2,449,688
     
1,321,110
 
Shares issued in reinvestment of dividends –
               
  Institutional shares*
   
1,002,629
     
 
Cost of shares redeemed – Investor shares
   
(26,344,429
)
   
(8,017,246
)
Cost of shares redeemed – Institutional shares*
   
(7,543,229
)
   
 
Net decrease in net assets
               
  from capital share transactions
   
(6,533,249
)
   
(556,348
)
                 
Total increase (decrease) in net assets
   
7,207,429
     
(6,531,253
)
                 
Net Assets:
               
Beginning of year
   
31,055,888
     
37,587,141
 
End of year
 
$
38,263,317
   
$
31,055,888
 


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

28


PLUMB FUNDS
Plumb Equity Fund
Statements of Changes in Net Assets (Continued)

   
For the
   
For the
 
   
Year Ended
   
Year Ended
 
   
March 31,
   
March 31,
 
   
2021
   
2020
 
Change in Shares Outstanding:
           
Investor Shares
           
Shares sold
   
101,558
     
211,555
 
Shares issued in reinvestment of dividends
   
67,522
     
44,738
 
Shares redeemed
   
(797,522
)
   
(282,501
)
Net decrease
   
(628,442
)
   
(26,208
)
 
               
Institutional Shares*
               
Shares sold
   
610,038
     
 
Shares issued in reinvestment of dividends
   
27,666
     
 
Shares redeemed
   
(212,735
)
   
 
Net increase
   
424,969
     
 
 
               
Class A Shares**
               
Shares sold
   
1,327
     
 
Net increase
   
1,327
     
 

*
 
Institutional Shares began operations on August 1, 2020.
**
 
Class A Shares began operations on February 8, 2021.


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

29


PLUMB FUNDS
Plumb Balanced Fund – Investor Shares
Financial Highlights





Per share operating performance
(For a share outstanding throughout the year)

Net asset value, beginning of year
Operations:
Net investment income(1)
Net realized and unrealized gain (loss)
Total from investment operations

Distributions to shareholders:
Distributions from net investment income
Distributions from net realized gains
Total distributions to shareholders

Change in net asset value for the year

Net asset value, end of year

Total return(2)

Ratios / supplemental data
Net assets, end of year (000)
Ratio of net expenses to average net assets:
Before expense reimbursement and waivers/recoupment
After expense reimbursement and waivers/recoupment(3)
Ratio of net investment income to average net assets:
After expense reimbursement and waivers/recoupment(3)
Portfolio turnover rate

(1)
Effective for the year ended March 31, 2021, net investment income per share has been calculated based on average shares outstanding during the year. Prior to the year ended March 31, 2021, net investment income per share was calculated using current year ending balances prior to consideration of adjustment for permanent book and tax differences.
(2)
Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(3)
Effective December 1, 2017, the Advisor contractually agreed to cap the Funds’ expenses at 1.19%. Prior to December 1, 2017, the Fund’s expense cap was 1.30%.


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

30


PLUMB FUNDS
Plumb Balanced Fund – Investor Shares
Financial Highlights (Continued)

For the Years Ended March 31,
 
2021
   
2020
   
2019
   
2018
   
2017
 
                           
                           
                           
$
28.33
   
$
30.98
   
$
28.77
   
$
24.75
   
$
21.69
 
                                     
 
0.05
     
0.17
     
0.16
     
0.15
     
0.13
 
 
10.82
     
(2.01
)
   
2.51
     
4.05
     
3.05
 
 
10.87
     
(1.84
)
   
2.67
     
4.20
     
3.18
 
                                     
                                     
 
(0.16
)
   
(0.15
)
   
     
(0.18
)
   
(0.12
)
 
     
(0.66
)
   
(0.46
)
   
     
 
 
(0.16
)
   
(0.81
)
   
(0.46
)
   
(0.18
)
   
(0.12
)
                                     
 
10.71
     
(2.65
)
   
2.21
     
4.02
     
3.06
 
                                     
$
39.04
   
$
28.33
   
$
30.98
   
$
28.77
   
$
24.75
 
 
38.35
%
   
(6.27
)%
   
9.47
%
   
16.98
%
   
14.70
%
                                     
                                     
$
94,514
   
$
96,148
   
$
97,139
   
$
44,722
   
$
33,281
 
                                     
 
1.22
%
   
1.19
%
   
1.18
%
   
1.50
%
   
1.68
%
 
1.19
%
   
1.19
%
   
1.19
%
   
1.26
%
   
1.28
%
                                     
 
0.13
%
   
0.58
%
   
0.66
%
   
0.57
%
   
0.56
%
 
63
%
   
52
%
   
58
%
   
37
%
   
29
%


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

31


PLUMB FUNDS
Plumb Balanced Fund – Institutional Shares
Financial Highlights

   
For the
 
   
Period
 
   
Ended
 
   
March 31,
 
   
2021(1)
 
Per share operating performance
     
(For a share outstanding throughout the period)
     
       
Net asset value, beginning of period
 
$
35.38
 
Operations:
       
Net investment income(2)
   
0.04
 
Net realized and unrealized gain (loss)
   
3.85
 
Total from investment operations
   
3.89
 
         
Distributions to shareholders:
       
Distributions from net investment income
   
(0.23
)
Distributions from net realized gains
   
 
Total distributions to shareholders
   
(0.23
)
         
Change in net asset value for the period
   
3.66
 
         
Net asset value, end of period
 
$
39.04
 
Total return(3)
   
10.97
%(4)
         
Ratios / supplemental data
       
Net assets, end of period (000)
 
$
47,024
 
Ratio of net expenses to average net assets:
       
Before expense reimbursement and waivers
   
1.02
%(5)
After expense reimbursement and waivers
   
0.99
%(5)
Ratio of net investment income to average net assets:
       
After expense reimbursement and waivers
   
0.16
%(5)
Portfolio turnover rate
   
63
%(4)

(1)
Institutional Shares began operations on August 1, 2020.
(2)
Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
(3)
Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(4)
Not annualized for the period ended March 31, 2021.
(5)
Annualized for the period ended March 31, 2021.


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

32


PLUMB FUNDS
Plumb Balanced Fund – Class A Shares
Financial Highlights

   
For the
 
   
Period
 
   
Ended
 
   
March 31,
 
   
2021(1)
 
Per share operating performance
     
(For a share outstanding throughout the period)
     
       
Net asset value, beginning of period
 
$
41.04
 
Operations:
       
Net investment income(2)
   
(0.00
)(3)
Net realized and unrealized gain (loss)
   
(2.00
)(4)
Total from investment operations
   
(2.00
)
         
Distributions to shareholders:
       
Distributions from net investment income
   
 
Distributions from net realized gains
   
 
Total distributions to shareholders
   
 
         
Change in net asset value for the period
   
(2.00
)
         
Net asset value, end of period
 
$
39.04
 
Total return(5)
   
(4.87
)%(6)
         
Ratios / supplemental data
       
Net assets, end of period (000)
 
$
48
 
Ratio of net expenses to average net assets:
       
Before expense reimbursement and waivers
   
1.33
%(7)
After expense reimbursement and waivers
   
1.19
%(7)
Ratio of net investment income to average net assets:
       
After expense reimbursement and waivers
   
(0.03
)%(7)
Portfolio turnover rate
   
63
%(6)

(1)
Class A Shares began operations on February 8, 2021.
(2)
Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
(3)
Amount rounds to less than $0.005.
(4)
Net realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the Fund’s statement of operations due to share transactions for the period.
(5)
Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(6)
Not annualized for the period ended March 31, 2021.
(7)
Annualized for the period ended March 31, 2021.


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

33


PLUMB FUNDS
Plumb Equity Fund – Investor Shares
Financial Highlights





Per share operating performance
(For a share outstanding throughout the year)

Net asset value, beginning of year
Operations:
Net investment loss(1)
Net realized and unrealized gain (loss)
Total from investment operations

Distributions to shareholders:
Distributions from net investment income
Distributions from net realized gains
Total distributions to shareholders

Change in net asset value for the year

Net asset value, end of year

Total return(3)

Ratios / supplemental data
Net assets, end of year (000)
Ratio of net expenses to average net assets:
Before expense reimbursement and waivers
After expense reimbursement and waivers(4)
Ratio of net investment income to average net assets:
After expense reimbursement and waivers(4)
Portfolio turnover rate

(1)
Effective for the year ended March 31, 2021, Net investment loss per share has been calculated based on average shares outstanding during the year. Prior to the year ended March 31, 2021, net investment loss per share was calculated using current year ending balances prior to consideration of adjustment for permanent book and tax differences.
(2)
Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the year.
(3)
Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(4)
Effective December 1, 2017, the Advisor contractually agreed to cap the Funds’ expenses at 1.19%. Prior to December 1, 2017, the Fund’s expense cap was 1.45%.


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

34


PLUMB FUNDS
Plumb Equity Fund – Investor Shares
Financial Highlights (Continued)

For the Years Ended March 31,
 
2021
   
2020
   
2019
   
2018
   
2017
 
                           
                           
                           
$
23.90
   
$
28.35
   
$
28.78
   
$
24.70
   
$
20.40
 
                                     
 
(0.24
)
   
(0.21
)
   
(0.17
)
   
(0.21
)
   
(0.15
)
 
14.57
     
(2.97
)
   
3.23
     
7.84
(2) 
   
4.69
 
 
14.33
     
(3.18
)
   
3.06
     
7.63
     
4.54
 
                                     
                                     
 
(0.15
)
   
     
     
     
 
 
(3.21
)
   
(1.27
)
   
(3.49
)
   
(3.55
)
   
(0.24
)
 
(3.36
)
   
(1.27
)
   
(3.49
)
   
(3.55
)
   
(0.24
)
                                     
 
10.97
     
(4.45
)
   
(0.43
)
   
4.08
     
4.30
 
                                     
$
34.87
   
$
23.90
   
$
28.35
   
$
28.78
   
$
24.70
 
 
59.42
%
   
(12.07
)%
   
12.67
%
   
31.65
%
   
22.38
%
                                     
                                     
$
23,404
   
$
31,056
   
$
37,587
   
$
29,641
   
$
23,533
 
                                     
 
1.53
%
   
1.43
%
   
1.44
%
   
1.68
%
   
1.86
%
 
1.19
%
   
1.19
%
   
1.19
%
   
1.36
%
   
1.43
%
                                     
 
(0.75
)%
   
(0.70
)%
   
(0.63
)%
   
(0.79
)%
   
(0.74
)%
 
66
%
   
46
%
   
64
%
   
69
%
   
18
%


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

35


PLUMB FUNDS
Plumb Equity Fund – Institutional Shares
Financial Highlights

   
For the
 
   
Period
 
   
Ended
 
   
March 31,
 
   
2021(1)
 
Per share operating performance
     
(For a share outstanding throughout the period)
     
       
Net asset value, beginning of period
 
$
32.57
 
Operations:
       
Net investment income(2)
   
(0.16
)
Net realized and unrealized gain (loss)
   
5.88
 
Total from investment operations
   
5.72
 
         
Distributions to shareholders:
       
Distributions from net investment income
   
(0.22
)
Distributions from net realized gains
   
(3.21
)
Total distributions to shareholders
   
(3.43
)
         
Change in net asset value for the period
   
2.29
 
         
Net asset value, end of period
 
$
34.86
 
Total return(3)
   
17.17
%(4)
         
Ratios / supplemental data
       
Net assets, end of period (000)
 
$
14,813
 
Ratio of net expenses to average net assets:
       
Before expense reimbursement and waivers
   
1.39
%(5)
After expense reimbursement and waivers
   
0.99
%(5)
Ratio of net investment income to average net assets:
       
After expense reimbursement and waivers
   
(0.70
)%(5)
Portfolio turnover rate
   
66
%(4)

(1)
Institutional Shares began operations on August 1, 2020.
(2)
Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
(3)
Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(4)
Not annualized for the period ended March 31, 2021.
(5)
Annualized for the period ended March 31, 2021.


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

36


PLUMB FUNDS
Plumb Equity Fund – Class A Shares
Financial Highlights

   
For the
 
   
Period
 
   
Ended
 
   
March 31,
 
   
2021(1)
 
Per share operating performance
     
(For a share outstanding throughout the period)
     
       
Net asset value, beginning of period
 
$
37.67
 
Operations:
       
Net investment income(2)
   
(0.05
)
Net realized and unrealized gain (loss)
   
(2.75
)(3)
Total from investment operations
   
(2.80
)
         
Distributions to shareholders:
       
Distributions from net investment income
   
 
Distributions from net realized gains
   
 
Total distributions to shareholders
   
 
         
Change in net asset value for the period
   
(2.80
)
         
Net asset value, end of period
 
$
34.87
 
Total return(4)
   
(7.43
)%(5)
         
Ratios / supplemental data
       
Net assets, end of period (000)
 
$
46
 
Ratio of net expenses to average net assets:
       
Before expense reimbursement and waivers
   
1.77
%(6)
After expense reimbursement and waivers
   
1.19
%(6)
Ratio of net investment income to average net assets:
       
After expense reimbursement and waivers
   
(0.98
)%(6)
Portfolio turnover rate
   
66
%(5)

(1)
Class A Shares began operations on February 8, 2021.
(2)
Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
(3)
Net realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the Fund's statement of operations due to share transactions for the period.
(4)
Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(5)
Not annualized for the period ended March 31, 2021.
(6)
Annualized for the period ended March 31, 2021.


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

37


PLUMB FUNDS
Notes to Financial Statements
March 31, 2021

 
1.    ORGANIZATION
 
Wisconsin Capital Funds, Inc. (the “Company”), also referred to as the “Plumb Funds”, is registered under the Investment Company Act of 1940 (the “1940 Act”) as an open-end, diversified management investment company. The Company was organized as a Maryland corporation on April 3, 2007. The Company is authorized to issue up to 2 billion shares, which are units of beneficial interest with a $0.001 par value. The Company currently offers shares of two series, each with its own investment strategy and risk/reward profile: the Plumb Balanced Fund and the Plumb Equity Fund (individually a “Fund”, collectively the “Funds”). Each Fund offers three share classes: the Investor Shares (Inception date of May 24, 2007), the Institutional Shares (Inception date of August 1, 2020), and the Class A Shares (Inception date of February 8, 2021). The investment objective of the Plumb Balanced Fund is high total return through capital appreciation while attempting to preserve principal, with current income as a secondary objective. The investment objective of the Plumb Equity Fund is long-term capital appreciation. Wisconsin Capital Management, LLC (the “Advisor”) serves as the Funds’ investment advisor. As of December 31, 2014, the Advisor is owned by TGP, Inc. The Advisor is controlled by Thomas G. Plumb indirectly through TGP, Inc. Certain directors or officers of the Funds are also officers of the Advisor.
 
2.    SIGNIFICANT ACCOUNTING POLICIES
 
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.
 
Security Valuation:
 
The Funds have adopted authoritative fair valuation 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 and a discussion in changes in valuation techniques and related inputs during the year. These inputs are summarized in the three broad levels listed below.
 
 
Level 1 –
quoted prices in active markets for identical securities
     
 
Level 2 –
other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
     
 
Level 3 –
significant unobservable inputs (including the Funds’ own assumptions in determining far value of investments)

38


PLUMB FUNDS
Notes to Financial Statements
March 31, 2021 (Continued)


Equity securities, including domestic common stocks and foreign issued common stocks, are valued at the last sale price reported by the exchange on which the securities are primarily traded on the day of valuation. Nasdaq-listed securities are valued at their Nasdaq Official Closing Price. Equity securities not traded on a listed exchange or not traded using Nasdaq are valued as of the last sale price at the close of the U.S. market. If there are no sales on a given day for securities traded on an exchange, the latest bid quotation will be used. These securities will generally be classified as Level 1 securities.
 
Investments in mutual funds, including money market funds, are generally priced at the ending net asset value (NAV) provided by the service agent of the Funds and will be classified as Level 1 securities.
 
Debt securities such as corporate bonds and preferred securities are valued using a market approach based on information supplied by independent pricing services. The market inputs used by the independent pricing service include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers, and reference data including market research publications. Debt securities with remaining maturities of 60 days or less may be valued on an amortized cost basis, which involves valuing an instrument at its cost and thereafter assuming a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating rates on the fair value of the instrument. To the extent the inputs are observable and timely, these debt securities will generally be classified as Level 2 securities.
 
Any securities or other assets for which market quotations are not readily available are valued at fair value as determined in good faith by the Advisor pursuant to procedures established under the general supervision and responsibility of the Funds’ Board of Directors and will be classified as Level 3 securities.
 
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
 

39


PLUMB FUNDS
Notes to Financial Statements
March 31, 2021 (Continued)


The following is a summary of the inputs used, as of March 31, 2021, to value the Funds’ investments carried at fair value:
 
Description
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Plumb Balanced Fund
                       
Common Stocks*
 
$
87,932,660
   
$
   
$
   
$
87,932,660
 
Corporate Bonds*
   
     
52,897,133
     
     
52,897,133
 
Short-Term Investment
   
2,186,155
     
     
     
2,186,155
 
Total
 
$
90,118,815
   
$
52,897,133
   
$
   
$
143,015,948
 
                                 
Description
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Plumb Equity Fund
                               
Common Stocks*
 
$
37,948,720
   
$
   
$
   
$
37,948,720
 
Short-Term Investment
   
396,232
     
     
     
396,232
 
Total
 
$
38,344,952
   
$
   
$
   
$
38,344,952
 

*
For detailed industry descriptions, refer to the Schedule of Investments.

Use of Estimates:
 
The presentation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
 
Expenses:
 
Generally, expenses directly attributable to a Fund are charged to the Fund, while expenses attributable to more than one series of the Company are allocated among the respective series based on relative net assets or another appropriate basis.
 
Federal Income Taxes:
 
The Funds intend to meet the requirements of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute substantially all net investment taxable income and net capital gains to shareholders in a manner which results in no tax cost to the Funds. Therefore, no federal income or excise tax provision is recorded.
 
As of and during the year ended March 31, 2021, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended March 31, 2021, the Funds did not incur any interest or penalties.
 

40


PLUMB FUNDS
Notes to Financial Statements
March 31, 2021 (Continued)


Distributions to Shareholders:
 
Dividends from net investment income are declared and paid at least annually. Distributions of net realized capital gains, if any, will be declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.
 
The Funds may periodically make reclassifications among certain of its capital accounts as a result of the recognition and characterization of certain income and capital gain distributions determined annually in accordance with federal tax regulations which may differ from GAAP. Any such reclassifications will have no effect on net assets, results of operations or net asset values per share of the Funds.  For the fiscal year ended March 31, 2021, the Funds did not make any reclassifications to increase (decrease) the components of net assets.
 
Other:
 
Investment and shareholder transactions are recorded on the trade date. Gains or losses from investment transactions are determined using the specific identification method. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Discounts and premiums on securities purchased are amortized over the expected life of the respective securities using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.
 
Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not isolate the portion of the results of operations from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Realized foreign exchange gains or losses arising from sales of portfolio securities and sales and maturities of short-term securities are reported within realized gain (loss) on investments. Net unrealized foreign exchange gains and losses arising from changes in the values of investments in securities from fluctuations in exchange rates are reported within unrealized gain (loss) on investments.
 
Under the Company’s organizational documents, the Company will indemnify its officers and directors for certain liabilities that may arise from performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representatives and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred.
 

41


PLUMB FUNDS
Notes to Financial Statements
March 31, 2021 (Continued)

 
3.    DISTRIBUTION PLAN
 
The Company has adopted a plan pursuant to Rule 12b-1 under the 1940 Act (the “12b-1 Plan”), on behalf of the Funds, which authorizes it to pay Quasar Distributors, LLC (the “Distributor”) a distribution fee up to 0.25% of the Funds’ average daily net assets attributable to both the Investor Shares and the Class A Shares of each Fund, for services to prospective Fund shareholders and distribution of Fund shares. During the year ended March 31, 2021, the Plumb Balanced Fund Investor Shares and Class A Shares incurred expenses of $271,669 and $17, respectively, and the Plumb Equity Fund Investor Shares and Class A Shares incurred expenses of $71,338 and $17, respectively, pursuant to the 12b-1 Plan. The Institutional Shares of each Fund are not subject to any 12b-1 fees under this Plan.
 
4.    INVESTMENT ADVISOR AND OTHER AFFILIATES
 
The Funds have an Investment Advisory Agreement (the “Advisory Agreement”) with Wisconsin Capital Management, LLC. The Advisory Agreement provides for advisory fees computed daily and paid monthly at an annual rate of 0.65% of the Funds’ average daily net assets.
 
Under the terms of the Advisory Agreement, the Advisor has contractually agreed to limit the Funds’ expenses. Effective December 1, 2017, Wisconsin Capital Management, LLC, the investment advisor to the Funds (the “Advisor”), has contractually agreed to waive its advisory fee and/or reimburse expenses in order to limit the Total Annual Fund Operating Expenses of each Fund to 1.19% of the Fund’s average daily net assets for the Investor Shares and the Class A Shares, and 0.99% of the Fund’s average daily net assets for the Institutional Shares. This contractual limitation is in effect until July 31, 2022 and may not be terminated without the approval of the Board of Directors of Wisconsin Capital Funds, Inc. Prior to December 1, 2017, the Plumb Balanced Fund and the Plumb Equity Fund’s expense cap was 1.30% and 1.45% for the Investor Shares, respectively. Any such waiver or reimbursement is subject to later adjustment to allow the Advisor to recoup amounts waived or reimbursed to the extent actual fees and expenses for a period are less than the expense limitation caps in place at the time the waiver was made, provided, however, that the Advisor shall only be entitled to recoup such amounts for a period of three years from the date such amount was waived or reimbursed. For the year ended March 31, 2021, the Advisor waived $36,933 of expenses and recouped $2,225 of expenses in the Plumb Balanced Fund’s Investor Shares and waived $5,682 and $9 in Plumb Balanced Fund’s Institutional Shares and Class A Shares, respectively. For the year ended March 31, 2021, the Advisor waived $108,883, $31,336, and $37 in expenses in the Plumb Equity Fund’s Investor Shares, Institutional Shares, and Class A Shares, respectively.
 

42


PLUMB FUNDS
Notes to Financial Statements
March 31, 2021 (Continued)


As of March 31, 2021, the Adviser has waived and recouped fees. The following table shows the remaining amount subject to potential recoupment as of March 31, 2021 and expiring on:
 
 
Plumb Balanced Fund Investor Shares
Plumb Equity Fund Investor Shares
 
 
March 31, 2022 . . . . . . . $11,798
March 31, 2022 . . . . . . . $  89,091
 
 
March 31, 2023 . . . . . . . $28,760
March 31, 2023 . . . . . . . $  95,993
 
 
March 31, 2024 . . . . . . . $36,933
March 31, 2024 . . . . . . . $108,883
 
       
 
Plumb Balanced Fund Institutional Shares
Plumb Equity Fund Institutional Shares
 
 
March 31, 2024 . . . . . . . $  5,682
March 31, 2024 . . . . . . . $  31,336
 
       
 
Plumb Balanced Fund Class A Shares
Plumb Equity Fund Class A Shares
 
 
March 31, 2024 . . . . . . . $         9
March 31, 2024 . . . . . . . $         37
 

Waived fees by the Adviser for the Plumb Balanced Fund Investor Shares and the Plumb Equity Fund Investor Shares totaling $120,514 and $110,110, respectively, expired during the fiscal year ended March 31, 2021 and are no longer eligible for recoupment by the Adviser.
 
5.    INVESTMENT TRANSACTIONS
 
For the fiscal year ended March 31, 2021, the aggregate purchases and sales of investment securities, other than short-term investments, were as follows:
 
     
U.S. Government Securities
   
Other
 
     
Purchases
   
Sales
   
Purchases
   
Sales
 
 
Plumb Balanced Fund
 
$
   
$
1,018,438
   
$
85,596,275
   
$
77,688,326
 
 
Plumb Equity Fund
   
     
     
24,907,900
     
34,490,565
 
 
6.    BENEFICIAL 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, 2021, beneficial ownership of more than 25% of the shares outstanding in each class is as follows:
 
 
Plumb Balanced Fund
 
Plumb Equity Fund
 
 
Investor
Institutional
Class A
 
Investor
Institutional
Class A
 
 
Shares
Shares
Shares
 
Shares
Shares
Shares
 
National Financial
               
  Services LLC
36.64%
90.76%
 
27.83%
65.07%
 
Charles Schwab
               
  & Co, Inc.
27.75%
 
28.11%
 
Thomas G. Plumb
100.00%
 
100.00%
 

43


PLUMB FUNDS
Notes to Financial Statements
March 31, 2021 (Continued)

 
7.    FEDERAL TAX INFORMATION
 
As of March 31, 2021 the components of accumulated earnings (losses) for income tax purposes were as follows:
 
   
Plumb Balanced Fund
 
Plumb Equity Fund
 
Unrealized appreciation
 
$
35,344,243
     
$
16,733,104
 
 
Unrealized depreciation
   
(1,383,091
)
     
(319,908
)
 
Net unrealized appreciation
                 
 
  on investments
   
33,961,152
       
16,413,196
 
 
Undistributed ordinary income
   
1,456,814
       
970,757
 
 
Undistributed long-term capital gain
   
5,593,016
       
3,083,265
 
 
Total accumulated gain
 
$
41,010,982
     
$
20,467,218
 

The tax cost of investments as of March 31, 2021 was $109,054,980 and $21,931,756 for the Plumb Balanced Fund and Plumb Equity Fund, respectively. The tax basis of investments for tax and financial reporting purposes differs principally due to the deferral of losses on wash sales.
 
During the fiscal year ended March 31, 2021, the Plumb Balanced Fund utilized $692,163 of short term capital loss carryforwards. As of March 31, 2021, the Funds had utilized all capital loss carryforwards.
 
As of March 31, 2021 the Funds did not differ, on a tax basis, any late year ordinary and post-October capital losses.
 
8.    DISTRIBUTIONS TO SHAREHOLDERS
 
The tax character of distributions paid during the fiscal years ended March 31, 2021 and 2020 was as follows:
 
     
Plumb Balanced Fund
 
     
Year Ended
   
Year Ended
 
     
March 31, 2021
   
March 31, 2020
 
 
Distributions paid from:
           
 
   Ordinary Income
 
$
645,094
   
$
1,039,880
 
 
   Long Term Capital Gains
   
     
1,755,059
 
 
     Total Distributions Paid
 
$
645,094
   
$
2,794,939
 

44


PLUMB FUNDS
Notes to Financial Statements
March 31, 2021 (Continued)


     
Plumb Equity Fund
 
     
Year Ended
   
Year Ended
 
     
March 31, 2021
   
March 31, 2020
 
 
Distributions paid from:
           
 
   Ordinary Income
 
$
190,449
   
$
 
 
   Long-Term Capital Gains
   
3,561,943
     
1,654,811
 
 
     Total Distributions Paid
 
$
3,752,392
   
$
1,654,811
 
 
9.    COVID-19
 
Unexpected events, such as the global outbreak of COVID-19, have caused adverse effects on many companies, sectors, regions, and the market in general, and may cause these effects for an unknown period of time and in ways that cannot be foreseen.  The effects may impact the value and performance of the Funds, their ability to buy and sell fund investments at appropriate valuations and their ability to achieve investment objectives.
 
10.   SUBSEQUENT EVENTS
 
In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. Management has determined that there were no material events that would require disclosure in the Fund’s financial statements.
 




45


PLUMB FUNDS
Report of Independent Registered Public Accounting Firm


To the Shareholders and Board of Directors of Wisconsin Capital Funds, Inc.
 
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Wisconsin Capital Funds, Inc., comprising Plumb Balanced Fund and Plumb Equity Fund (the “Funds”) as of March 31, 2021, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the periods indicated in the period then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the each of the Funds as of March 31, 2021, the results of their operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
 
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
 
We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the  financial statements are free of material misstatement whether due to error or fraud.
 
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Our procedures included confirmation of securities owned as of March 31, 2021, by correspondence with the custodian and broker. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.  We believe that our audits provide a reasonable basis for our opinion.
 
We have served as the Funds’ auditor since 2007.
 
 
COHEN & COMPANY, LTD.
Cleveland, Ohio
May 26, 2021
 


46


PLUMB FUNDS
Additional Information (Unaudited)


1.
OPERATION AND EFFECTIVENESS OF THE FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM:

The Funds have adopted a Liquidity Risk Management Program (the “Program”) under Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), that seeks to assess, manage, and review each Fund’s liquidity risk.  The Liquidity Rule requires in part that the Board of Directors of the Funds receive a written report on a no-less-frequently-than-annual basis that addresses the operation of the Program and assesses its adequacy and effectiveness of implementation, including the operation of any highly liquid investment minimum established for a Fund and any material changes to the Program.
 
The Board of Directors of the Funds has appointed Wisconsin Capital Management, LLC’s Compliance Committee as the program administrator for the Program (the “Program Administrator”). At its meetings on May 11, 2020, August 7, 2020, November 6, 2020 and February 12, 2021, the Board of Directors of the Funds reviewed the Program Administrator’s written reports (collectively, the “Report”) relating to the operation of the Program for the period from January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).  The Report addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including that each Fund continues to primarily hold assets that are highly liquid investments. There were no material changes to the Program during the Program Reporting Period and no liquidity events occurring during the Program Reporting Period that affected the Funds or their ability to meet redemptions.
 
Based on this review, the Report concluded that the Program continues to be reasonably designed to effectively assess and manage each Fund’s liquidity risk and the Program has been adequately and effectively implemented with respect to each Fund during the Program Reporting Period.
 
2.
ADDITIONAL DISCLOSURE REGARDING FUND DIRECTORS AND OFFICERS

       
Number of
 
 
Position(s)
Term of
 
Portfolios
 
 
Held with
Office and
Principal
in Fund
Other
Name,
Wisconsin
Length
Occupation(s)
Complex
Directorships
Address and
Capital
of Time
During Past
Overseen by
Held by
Year of Birth
Funds, Inc.
Served(1)
Five Years
Director
Director
Independent Directors:
         
           
Jay Loewi
Director
Since
Chief Executive
2
None
Birth date: 1957
 
May 2007
Officer, QTI
   
     
Group (staffing
   
     
company), since
   
     
November 2007;
   
     
President, QTI
   
     
Group of
   
     
Companies,
   
     
since 2002.
   


47


PLUMB FUNDS
Additional Information (Unaudited) (Continued)


       
Number of
 
 
Position(s)
Term of
 
Portfolios
 
 
Held with
Office and
Principal
in Fund
Other
Name,
Wisconsin
Length
Occupation(s)
Complex
Directorships
Address and
Capital
of Time
During Past
Overseen by
Held by
Year of Birth
Funds, Inc.
Served(1)
Five Years
Director
Director
Harlan J.