Item 1. |
Reports to Stockholders.
|
Shareholder Letter
|
1
|
Trust Performance
|
2
|
Statement of Assets & Liabilities
|
3
|
Statement of Operations
|
4
|
Statement of Changes In Net Assets
|
5
|
Financial Highlights
|
6
|
Notes to Financial Statements
|
7
|
Report of Independent Registered Public Accounting Firm
|
11
|
Additional Information
|
12
|
Trustees & Officers
|
16
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Shareholder Letter
|
Annual Report | September 30, 2017
|
1
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Trust Performance
|
Since Inception
|
Inception Date
|
|
XAI Octagon Floating Rate & Alternative Income Term Trust ‐ NAV
|
0.00%
|
9/26/2017
|
XAI Octagon Floating Rate & Alternative Income Term Trust ‐ Market
|
1.20%
|
9/26/2017
|
S&P/LSTA Leveraged Loan 100 Index*
|
0.07%
|
9/26/2017
|
*
|
The S&P/LSTA (Loan Syndications and Trading Association) U.S. Leveraged Loan 100 Index was the first to track the investable senior loan market. This rules-based index consists of the 100 largest loan facilities in the benchmark S&P/LSTA Leveraged Loan Index (LLI).
|
2
|
www.xainvestments.com
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Statement of Assets and Liabilities
|
ASSETS:
|
||||
Cash
|
$
|
71,150,009
|
||
Receivable due from adviser (Note 3)
|
8,570
|
|||
Total Assets
|
71,158,579
|
|||
LIABILITIES:
|
||||
Payable for legal and audit fees
|
12,000
|
|||
Payable to transfer agent
|
260
|
|||
Payable for Investor support services fees (Note 3)
|
1,556
|
|||
Payable for printing
|
7,950
|
|||
Payable for custodian fees
|
195
|
|||
Accrued offering costs
|
145,000
|
|||
Accrued fund accounting and administration fees payable
|
2,274
|
|||
Accrued chief compliance officer fee payable
|
329
|
|||
Other payables and accrued expenses
|
1,123
|
|||
Total Liabilities
|
170,687
|
|||
Net Assets
|
$
|
70,987,892
|
||
COMPOSITION OF NET ASSETS:
|
||||
Paid‐in capital
|
$
|
71,005,009
|
||
Accumulated net investment income/(loss)
|
(17,117
|
)
|
||
Net Assets
|
$
|
70,987,892
|
||
Common shares of beneficial interest outstanding, at $0.01 par value, and unlimited common shares authorized
|
7,260,205
|
|||
Net Asset Value per Common Share
|
$
|
9.78
|
Annual Report | September 30, 2017
|
3
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Statement of Operations
|
EXPENSES:
|
||||
Investment advisory fees (Note 3)
|
$
|
13,227
|
||
Fund accounting and administration fees
|
2,274
|
|||
Legal and audit fees
|
12,000
|
|||
Custodian fees
|
195
|
|||
Chief compliance officer fees (Note 3)
|
329
|
|||
Printing expense
|
7,950
|
|||
Transfer agent fees
|
260
|
|||
Investor support services fees (Note 3)
|
1,556
|
|||
Other expenses
|
1,123
|
|||
Total Expenses Before Waivers
|
38,914
|
|||
Fees waived or reimbursed by the Adviser (Note 3)
|
(21,797
|
)
|
||
Net Expenses
|
17,117
|
|||
Net Investment Income/(Loss)
|
(17,117
|
)
|
4
|
www.xainvestments.com
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Statement of Changes in Net Assets
|
For the Period September 27, 2017 (Commencement of Operations) to September 30, 2017
|
||||
OPERATIONS:
|
||||
Net investment income/(loss)
|
$
|
(17,117
|
)
|
|
Net Decrease in Net Assets from Operations
|
(17,117
|
)
|
||
CAPITAL SHARE TRANSACTIONS:
|
||||
Proceeds from sale of common shares (net of offering costs of $145,000)
|
70,905,000
|
|||
Net Increase from Capital Share Transactions
|
70,905,000
|
|||
Net Increase in Net Assets
|
70,887,883
|
|||
NET ASSETS:
|
||||
Beginning of period
|
$
|
100,009
|
||
End of period*
|
$
|
70,987,892
|
||
* Including accumulated net investment income/(loss) of:
|
$
|
(17,117
|
)
|
Annual Report | September 30, 2017
|
5
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Financial Highlights
|
For the Period September 27, 2017 (Commencement of Operations) to September 30, 2017
|
||||
PER COMMON SHARE OPERATING PERFORMANCE:
|
||||
Net asset value ‐ beginning of period
|
$
|
9.78
|
(a)
|
|
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
|
||||
Net investment income/(loss)(b)
|
(0.00
|
)(c)
|
||
Total Income from Investment Operations
|
(0.00
|
)(c)
|
||
Net asset value per common share ‐ end of period
|
$
|
9.78
|
||
Market price per common share ‐ end of period
|
$
|
10.12
|
||
Total Investment Return ‐ Net Asset Value(d)
|
0.00
|
%
|
||
Total Investment Return ‐ Market Price(d)
|
1.20
|
%
|
||
RATIOS AND SUPPLEMENTAL DATA:
|
||||
Net assets attributable to common shares, end of period (000s)
|
$
|
70,988
|
||
Ratio of expenses excluding waivers to average net assets
|
5.00
|
%(e)
|
||
Ratio of expenses including waivers to average net assets
|
2.20
|
%(e)
|
||
Ratio of net investment income including waivers to average net assets
|
(2.20
|
%)(e)
|
||
Portfolio turnover rate
|
0
|
%
|
(a)
|
After deduction of offering expenses charged to capital.
|
(b)
|
Calculated using average common shares outstanding.
|
(c)
|
Less than $(0.005) per share.
|
(d)
|
Total Return Based on Common Share NAV is the combination of changes in common share NAV, dividends and distributions are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividends under the Trust’s dividend reinvestment plan. Total returns are not annualized.
|
(e)
|
Annualized.
|
6
|
www.xainvestments.com
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Notes to Financial Statements
|
Annual Report | September 30, 2017
|
7
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Notes to Financial Statements
|
Aggregate Eligible Funds
Average Daily Managed Assets |
Percentage of Advisory Fee
|
First $500 million
|
60%
|
Over $500 million
|
50%
|
8
|
www.xainvestments.com
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Notes to Financial Statements
|
Undistributed ordinary income
|
$
|
–
|
||
Other cumulative effect of timing differences
|
(17,117
|
)
|
||
Total
|
$
|
(17,117
|
)
|
Annual Report | September 30, 2017
|
9
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Notes to Financial Statements
|
10
|
www.xainvestments.com
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Report of Independent Registered
Public Accounting Firm |
Annual Report | September 30, 2017
|
11
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Additional Information
|
12
|
www.xainvestments.com
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Additional Information
|
Annual Report | September 30, 2017
|
13
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Additional Information
|
14
|
www.xainvestments.com
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Additional Information
|
Annual Report | September 30, 2017
|
15
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Trustees & Officers
|
Name, Address(1)
and Year of Birth
|
Position(s)
Held with Trust
|
Term of Office(2)
and Length of
Time Served
|
Principal Occupation
During The Past Five Years
|
Number of Portfolios in
Fund Complex(3) Overseen by Trustee
|
Other Directorships
held by Trustee During the Past Five Years
|
Danielle C. Cupps
Year of Birth:
1970
|
Trustee
|
Trustee since 2017(4)
|
Former: Managing Director, BLG Capital Advisors (2016‐2017) (family office); Director, Finance and Chief of Staff to CFO, Boeing Company (2006‐2012); Vice President, Code Hennessy & Simmons LLC (2000‐2005) (private equity); Associate, Goldman, Sachs & Co. (1998‐2000).
|
1
|
None.
|
Gregory G. Dingens
Year of Birth:
1964
|
Trustee
|
Trustee since 2017(4)
|
Current: Executive Vice President, Monroe Financial Partners, Inc. (2006‐present) (investment banking and trading); Member, Siena Capital Management (2006‐present) (private investment fund); Director, Qwickrate LLC (2012‐present) (online marketplace for financial institutions). Former: Managing Director, Lehman Brothers (2004‐2006); Managing Director, Merrill Lynch (1993‐2003).
|
1
|
None.
|
Philip G. Franklin
Year of Birth:
1951
|
Trustee
|
Trustee since 2017(4)
|
Current: Consultant to Littelfuse, Inc. (2016‐present) (electronics components manufacturer). Former: Chief Financial Officer and Executive Vice President (1998‐ 2016), Littelfuse, Inc.; Chief Financial Officer and Vice President, OmniQuip International (1995‐1998) (construction equipment).
|
1
|
Current: Tribune Publishing Company (2010‐present); TTM Technologies Inc. (2014‐ present); tronc, inc. (2014‐present).
|
Scott Craven Jones
Year of Birth:
1962
|
Trustee
|
Trustee since 2017(4)
|
Current: Director, Carne Global Financial Services (US) LLC (2013‐present). Former: Adviser, Wanzenburg Partners LLC (2012‐2013); Chief Operating Officer, Chief Financial Officer and Treasurer, Aurora Investment Management LLC (2010‐ 2012); Executive Vice President and Chief Administrative Officer, Calamos Asset Management, Inc. (2005‐2008); Managing Director, Northern Trust Global Investments (2000‐2005).
|
1
|
Current: Manager Directed Portfolios, a U.S. Bancorp series trust (2016‐present). Former: Guestlogix Inc. (2015‐2016) (travel technology).
|
16
|
www.xainvestments.com
|
XAI Octagon Floating Rate &
Alternative Income Term Trust |
Trustees & Officers
|
Name, Address(1)
and Year of Birth
|
Position(s)
Held with Trust
|
Term of Office(2)
and Length of
Time Served
|
Principal Occupation
During The Past Five Years
|
Number of Portfolios in
Fund Complex(3) Overseen by Trustee
|
Other Directorships
held by Trustee During the Past Five Years
|
Theodore J. Brombach*
Year of Birth:
1963
|
Trustee, President and Chief Executive Officer
|
Trustee since 2017(4)
|
Current: Co‐Chief Executive Officer of the Adviser (2016‐present); Co-Founding Partner and Co-Managing Partner of XMS Capital Partners, LLC (2006‐present). Former: Co‐Head of Midwest Investment Banking at Morgan Stanley (1990-2006).
|
1
|
Current: RiverWood Bank (2006‐present).
|
*
|
Mr. Brombach is an interested person of the Trust because of his position as an officer of the Adviser and certain of its affiliates.
|
(1)
|
The business address of each Trustee of the Trust is 321 North Clark Street, Suite 2430, Chicago, Illinois 60654, unless otherwise noted.
|
(2)
|
Officers serve at the pleasure of the Board and until his or her successor is appointed and qualified or until his or her resignation or removal.
|
•
|
Mr. Brombach and Ms. Cupps, as Class I Trustees, are expected to stand for re-election at the Trust’s initial annual meeting of shareholders.
|
•
|
Mr. Dingens and Mr. Franklin, as Class II Trustees, are expected to stand for re-election at the Trust’s second annual meeting of shareholders.
|
•
|
Mr. Jones, as the Class III Trustee, is expected to stand for re-election at the Trust’s third annual meeting of shareholders.
|
(3)
|
As of the date of this Report, the Trust is the only fund in the Fund Complex.
|
(4)
|
Each Trustee was initially elected by the sole shareholder of the Trust as of September 30, 2017.
|
Name,Address(1)
and Year of Birth
|
Position
|
Term of Office(2)
and Length of
Time Served
|
Principal Occupation
During The Past Five Years
|
John “Yogi”
Spence
Year of Birth:
1962
|
Chief Financial Officer and Treasurer
|
Officer since 2017
|
Current: Co‐Chief Executive Officer, the Adviser (2016‐present); Co‐Founding Partner and Co-Managing Partner, XMS Capital Partners, LLC (2006‐present).
|
John P. McGarrity
Year of Birth:
1961
|
Chief Legal Officer and Secretary
|
Officer since 2017
|
Current: Managing Director and General Counsel, the Adviser (2016‐present). Former: Managing Director and General Counsel, Chief Compliance Officer and AML Officer, River Branch Holdings LLC and River Branch Capital LLC (now Piper Jaffray) (2011‐2015).
|
Kimberly Ann Flynn
Year of Birth:
1977
|
Vice President
|
Officer since 2017
|
Current: Managing Director of the Adviser (2016‐present). Former: Senior Vice President, Head of Product Development (2013‐2016), Vice President (2009‐2013), Nuveen Investments.
|
Theodore J. Uhl
Year of Birth:
1974
|
Chief Compliance Officer
|
Officer since 2017
|
Current: Vice President and Deputy Chief Compliance Officer, ALPS Fund Services, Inc. (2006‐present); Chief Compliance Officer, Financial Investors Trust (2010‐present), Centre Funds (2013‐present), Reality Shares ETF Trust (2014‐present), Reaves Utility Income Fund (2015‐present), Boulder Growth & Income Fund, Inc. (2015‐present), Index Funds (2016‐present), and Elevation ETF Trust (2016‐present). Former: Internal Audit Manager/Senior Risk Manager, ALPS Fund Services, Inc. (2006‐2010).
|
(1)
|
The business address of each officer of the Trust is 321 North Clark Street, Suite 2430, Chicago, Illinois 60654, unless otherwise noted.
|
(2)
|
Officers serve at the pleasure of the Board and until his or her successor is appointed and qualified or until his or her resignation or removal.
|
Annual Report | September 30, 2017
|
17
|
Item 2. |
Code of Ethics.
|
(a)
|
The Registrant, as of the end of the period covered by the report, has adopted a Code of Ethics that applies to the Registrant’s Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer or Controller or any persons performing similar functions on behalf of the Registrant.
|
(b)
|
Not Applicable.
|
(c)
|
During the period covered by this report, no amendments were made to the provisions of the Code of Ethics referenced in 2 (a) above.
|
(d)
|
During the period covered by this report, no implicit or explicit waivers to the provision of the Code of Ethics referenced in 2 (a) above were granted.
|
(e)
|
Not Applicable.
|
(f)
|
The Registrant’s Code of Ethics is attached as Exhibit 12.A.1 hereto.
|
Item 3. |
Audit Committee Financial Expert.
|
Item 4. |
Principal Accountant Fees and Services.
|
(a)
|
Audit Fees: The aggregate fees billed for professional services rendered by KPMG LLP (“KPMG”) for the fiscal period September 26, 2017 (Fund’s inception) to September 30, 2017 for the audit of the Registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements was $32,000.
|
(b)
|
Audit-Related Fees: The aggregate fees billed for the fiscal period September 26, 2017 (Fund’s inception) to September 30, 2017 for assurance and related services by KPMG that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item was $0.
|
(c)
|
Tax Fees: The aggregate fees billed for the fiscal period September 26, 2017 (Fund’s inception) to September 30, 2017for professional services rendered by KPMG for tax compliance, tax advice, and tax planning was $0. These fees are comprised of fees relating income tax return preparation fees, excise tax return preparation fees and review of dividend distribution calculation fees.
|
(d)
|
All Other Fees: The aggregate fees billed for the fiscal period September 26, 2017 (Fund’s inception) to September 30, 2017 for products and services provided by KPMG, other than the services reported in paragraphs (a) through (c) of this Item was $0.
|
(e)(1) |
Audit Committee Pre-Approval Policies and Procedures: All services to be performed by the Registrant's principal auditors must be pre-approved by the Registrant's Audit Committee or by the Audit Committee’s designee pursuant to the Audit Committee’s Pre-Approval Policies and Procedures.
|
(e)(2) |
No services described in paragraphs (b) through (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
|
(f) |
Not applicable.
|
(g) |
The aggregate non-audit fees billed by the Registrant’s accountant for services rendered to the Registrant, and rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant for the fiscal period September 26, 2017 (Fund’s inception) to September 30, 2017 was $0. For the fiscal period September 26, 2017 (Fund’s inception) to September 30, 2017, KPMG did not bill the Registrant for products and services other than the services reported above.
|
(h) |
Not applicable.
|
Item 5. |
Audit Committee of Listed Registrants.
|
Item 6. |
Schedule of Investments.
|
(a)
|
Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
|
(b)
|
Not applicable to the Registrant.
|
Item 7. |
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
|
Item 8. |
Portfolio Managers of Closed-End Management Investment Companies.
|
(a)(1) |
Portfolio Managers
|
Portfolio Managers Name
|
Title
|
Length of Service
|
Business Experience:
5 Years |
Andrew D. Gordon
|
Chief Executive Officer and
Co-Chief Investment Officer
|
Since Inception
|
Chief Executive Officer, Co-Chief Investment Officer and member of the Investment Committee of the Sub-Adviser.
|
Michael B. Nechamkin
|
Co-Chief Investment Officer and Senior Portfolio Manager
|
Since Inception
|
Co-Chief Investment Officer (2016 to present), Senior Portfolio Manager and member of the Investment Committee of the Sub-Adviser.
|
Lauren M. Basmadjian
|
Portfolio Manager
|
Since Inception
|
Portfolio Manager and member of the Investment Committee of the Sub-Adviser.
|
Gretchen M. Lam, CFA
|
Portfolio Manager
|
Since Inception
|
Portfolio Manager and member of the Investment Committee of the Sub-Adviser (2013 to present). Principal of Sub-Adviser 2006-2013.
|
(a)(2) |
As of September 30, 2017, the Portfolio Managers listed above are also responsible for the day-to-day management of the following:
|
Portfolio Managers
Name
|
Registered Investment
Companies
|
Other Pooled
Investment Vehicles
|
Other Accounts
|
|||
Andrew D. Gordon
|
0
|
$0
|
0
|
$0
|
0
|
$0
|
Michael B. Nechamkin
|
0
|
$0
|
8
|
$2,863,920,298
|
3
|
$2,263,847,699
|
Lauren M. Basmadjian
|
1
|
$71,000,000
|
12
|
$7,140,953,739
|
5
|
$388,634,951
|
Gretchen M. Lam, CFA
|
0
|
$0
|
9
|
$3,741,410,420
|
8
|
$423,556,554
|
(a)(3) |
Compensation of Portfolio Managers and Material Conflicts of Interest
|
(a)(4) |
Dollar Range of Securities Owned as of September 30, 2017
|
Portfolio Managers
|
Dollar Range of the Registrant’s Securities
Owned by the Portfolio Managers
|
Andrew D. Gordon
|
None
|
Michael B. Nechamkin
|
None
|
Lauren M. Basmadjian
|
$50,001 - $100,000
|
Gretchen M. Lam, CFA
|
None
|
Octagon Credit Investors, LLC
|
Over $100,000
|
Item 9. |
Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.
|
Item 10. |
Submission of Matters to a Vote of Security Holders.
|
Item 11. |
Controls and Procedures.
|
(a)
|
The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
|
(b)
|
There was no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
|
Items 12. |
Exhibits.
|
(a)(1) |
The Code of Ethics that applies to the Registrant’s Principal Executive Officer and Principal Financial Officer is attached hereto as exhibit EX‑99.12.A.1.
|
(a)(2) |
The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as exhibit EX‑99.CERT.
|
(a)(3) |
Not applicable.
|
(b) |
A certification for the Registrant’s Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(b) of the Investment Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as exhibit EX‑99.906CERT.
|
(c) |
The Proxy Voting Policies and Procedures are attached hereto as exhibit EX‑99.ITEM7.
|
By:
|
(Signature and Title)
|
/s/ Theodore J. Brombach
|
|
Theodore J. Brombach
|
|||
Date:
|
December 7, 2017
|
President and Principal Executive Officer
|
By:
|
(Signature and Title)
|
/s/ Theodore J. Brombach
|
|
Theodore J. Brombach
|
|||
Date:
|
December 7, 2017
|
President and Principal Executive Officer
|
By:
|
(Signature and Title)
|
/s/ John “Yogi” Spence
|
|
John “Yogi” Spence
|
|||
Date:
|
December 7, 2017
|
Treasurer and Principal Financial Officer
|
·
|
honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
|
·
|
full, fair, accurate, timely, and understandable disclosure in reports and documents that the Trust file with, or submit to, the Securities and Exchange Commission (the “SEC”) and in any other public communications by the Trust;
|
·
|
compliance with applicable governmental laws, rules and regulations;
|
·
|
the prompt internal reporting of violations of the Code to the appropriate persons as set forth in the Code; and
|
·
|
accountability for adherence to the Code.
|
II.
|
Covered Persons
|
III. |
Honest and Ethical Conduct
|
A. |
Honesty, Diligence and Professional Responsibility
|
·
|
with honesty, diligence, and a commitment to professional and ethical responsibility;
|
·
|
carefully, thoroughly and in a timely manner; and
|
·
|
in conformity with applicable professional and technical standards.
|
B.
|
Objectivity/Avoidance of Undisclosed Conflicts of Interest
|
·
|
use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Trust whereby the Covered Officer would benefit personally to the detriment of the Trust;
|
·
|
cause the Trust to take action, or fail to take actions, for the individual personal benefit of the Covered Officer rather than the benefit of the Trust; or
|
·
|
use material non-public knowledge of portfolio transactions made or contemplated for the Trust to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.
|
C.
|
Preparation of Financial Statements
|
·
|
making, or permitting or directing another to make, materially false or misleading entries in the Trust’s financial statements or records;
|
·
|
failing to correct the Trust’s financial statements or records that are materially false or misleading when he or she has the authority to record an entry; and
|
·
|
signing, or permitting or directing another to sign, a document containing materially false or misleading financial information.
|
·
|
The Covered Officer should consider whether (i) the entry or the failure to record a transaction in the records, or (ii) the financial statement presentation or the nature or omission of disclosure in the financial statements, as proposed by the supervisor, represents the use of an acceptable alternative and does not materially misrepresent the facts or result in an omission of a material fact. If, after appropriate research or consultation, the Covered Officer concludes that the matter has authoritative support and/or does not result in a material misrepresentation, the Covered Officer need do nothing further.
|
·
|
If the Covered Officer concludes that the financial statements or records could be materially misstated as a result of the supervisor’s determination, the Covered Officer should follow the reporting procedures set forth in Section VI of this Code.
|
D.
|
Obligations to the Independent Auditor of the Trust
|
IV. |
Full, Fair, Accurate, Timely and Understandable Disclosure
|
V. |
Compliance with Applicable Laws, Rules and Regulations
|
VI. |
Reporting and Accountability
|
A. |
Any Covered Officer who knows of any violation of this Code or who questions whether a situation, activity or practice is acceptable must immediately report such practice to the Trust’s Audit Committee. The Audit Committee shall take appropriate action to investigate any reported potential violations. If, after such investigation, the Audit Committee believes that no violation has occurred, the Audit Committee is not required to take any further action. Any matter that the Audit Committee believes is a violation will be reported to the Chairman of the Board of Trustees. The Audit Committee shall respond to the Covered Officer within a reasonable period of time.
|
B. |
If the Covered Officer is not satisfied with the response of the Audit Committee, the Covered Officer shall report the matter to the Chairman of the Board of Trustees. If the Chairman is unavailable, the Covered Officer may report the matter to any other member of the Board of Trustees. The person receiving the report shall consider the matter, refer it to the full Board of Trustees if he or she deems appropriate, and respond to the Covered Officer within a reasonable amount of time. If the Board of Trustees concurs that a violation has occurred, it will consider appropriate action, which may include review of and appropriate modifications to applicable policies and procedures or notification to appropriate personnel of the investment adviser or its board.
|
C. |
If the Board of Trustees determines that a Covered Officer violated this Code, failed to report a known or suspected violation of this Code, or provided intentionally false or malicious information in connection with an alleged violation of this Code, the Board of Trustees may take disciplinary action against any such Covered Officer to the extent the Board of Trustees deems appropriate. No Covered Officer will be disciplined for reporting a concern in good faith.
|
VII. |
Disclosure of this Code
|
·
|
Filing a copy of this Code as an exhibit to the Trust’s annual report on Form N-CSR;
|
·
|
Posting the text of this Code on the Trust’s Internet website and disclosing, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted this Code on its Internet website; or
|
·
|
Providing an undertaking in the Trust’s most recent report on Form N-CSR to provide a copy of this Code to any person without charge upon request, and explaining the manner in which such a request may be made.
|
VIII. |
Waivers
|
IX. |
Amendments
|
X. |
Confidentiality
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
December 7, 2017
|
/s/ Theodore J. Brombach
|
|
Theodore J. Brombach
|
|||
President and Principal Executive Officer
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
December 7, 2017
|
/s/ John “Yogi” Spence
|
|
John “Yogi” Spence
|
|||
Treasurer and Principal Financial Officer
|
(i)
|
the report on Form N-CSR fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(ii)
|
the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
December 7, 2017
|
/s/ Theodore J. Brombach
|
|
Theodore J. Brombach
|
|||
President and Principal Executive Officer
|
(i)
|
the report on Form N-CSR fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(ii)
|
the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
December 7, 2017
|
/s/ John “Yogi” Spence
|
|
John “Yogi” Spence
|
|||
Treasurer and Principal Financial Officer
|
I.
|
Delegation of Proxy Voting to Sub-Adviser
|
II. |
Disclosure of Proxy Voting Policies and Procedures in the Funds’ Statement of Additional Information (“SAI”) and Annual Report to Shareholders
|
III.
|
Material Conflicts of Interest
|
IV.
|
Sub-Adviser and Fund CCO Responsibilities
|
1) |
Implementing written policies and procedures, in compliance with Rule 206(4)-6 under the Advisers Act, reasonably designed to ensure that the Sub-Adviser votes portfolio securities in the best interest of shareholders of the Fund owning the portfolio securities voted.
|
2) |
Providing to the Fund’s Chief Compliance Officer (“CCO”) a summary of the material changes to a Proxy Policy during the period covered by the CCO’s annual compliance report to the Board, and a redlined copy of such Proxy Policy as applicable.
|
3) |
The CCO shall review all Proxy Policies at least annually to ensure that they are in compliance with Rule 206(4)-6 under the Advisers Act, and appear reasonably designed to ensure that the Sub-Adviser votes portfolio securities in the best interest of shareholders of the Fund owning the portfolio securities voted.
|
V.
|
Review Responsibilities
|
VI.
|
Preparation and Filing of Proxy Voting Record on Form N-PX
|
VII.
|
Recordkeeping
|
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