N-CSR 1 mf-ncsra.htm MUZINICH FUNDS ANNUAL REPORT 12-31-19



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 (811-05037)



Professionally Managed Portfolios
(Exact name of registrant as specified in charter)



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



Elaine E. Richards
Professionally Managed Portfolios
c/o U.S. Bank Global Fund Services
2020 E. Financial Way, Ste. 100
Glendora, CA 91741
(Name and address of agent for service)



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



Date of fiscal year end: December 31


Date of reporting period:  December 31, 2019



Item 1. Report to Stockholders.

 


Muzinich & Co.

 

 
Muzinich Credit Opportunities Fund

 
Muzinich U.S. High Yield
Corporate Bond Fund

 
Muzinich Low Duration Fund

 
Muzinich High Income
Floating Rate Fund

 

 
ANNUAL REPORT
December 31, 2019
 


 
Important Notice: The U.S. Securities and Exchange Commission will permit funds to make shareholder reports available electronically beginning January 1, 2021. Accordingly, paper copies will no longer be mailed. Instead, at that time, the Muzinich Funds will send a notice, either by mail or e-mail, each time your fund’s updated report is available on our website at www.muzinichusfunds.com. Investors enrolled in electronic delivery will receive the notice by e-mail, with links to the updated report and don’t need to take any action. Investors who are not enrolled in electronic delivery by January 1, 2021 will receive the notice in the mail. All investors who prefer to receive shareholder reports in a printed format may, at any time, choose that option free of charge by calling 1-855-MUZINICH (1-855-689-4642).

Muzinich Funds

 TABLE OF CONTENTS

A Message to our Shareholders
1
Sector Allocations
7
Historical Performance
11
Schedules of Investments
18
Statements of Assets and Liabilities
42
Statements of Operations
45
Statements of Changes in Net Assets
46
Financial Highlights
51
Notes to Financial Statements
58
Report of Independent Registered Public Accounting Firm
70
Expense Examples
71
Approval of Investment Advisory Agreement
73
Trustees and Executive Officers
76
Additional Information
79
Privacy Notice
81












(This Page Intentionally Left Blank.)











Muzinich Funds

Dear Investors:
 
The Muzinich Credit Opportunities Fund (“Credit Opportunities Fund”) finished the year with asset growth from $394,465,645 to $417,324,951, reflecting net outflows, but a strong net investment return of +10.77% for the Supra Institutional Class and +10.60% for the Institutional Class.  The Credit Opportunities Fund underperformed the broad global corporate credit markets as reflected in the 12.83% return of the ICE BofAML Global Corporate and High Yield Index (GI00) hedged to United States Dollar (USD), which is the Credit Opportunities Fund’s primary benchmark.  Since inception from January 3, 2013, the Credit Opportunities Fund’s Supra Institutional Class have gained an annualized net return of 4.93%, net of fees and expenses, while the benchmark has returned a more modest 4.65% annualized.
 
 Performance as of December 31, 2019
1 Year
5 Year
Since Inception
 Credit Opportunities Fund – Supra Institutional
10.77%
4.64%
4.93%
 ICE BofAML Global Corporate & High Yield Index (GI00)
11.92%
4.42%
4.34%
 ICE BofAML Global Corporate & High Yield Index (USD 100% Hedged)
12.83%
4.93%
4.65%

Periods greater than one year are average annual returns.
 
Performance data quoted represents past performance; past performance does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Current performance of the Fund may be lower or higher than the performance quoted.  Performance data current to the most recent month end may be obtained by calling 1-855-689-4642.  The Fund imposes a 1.00% redemption fee on shares held for 90 days or less.  Performance data quoted does not reflect the redemption fee.  If reflected, total returns would be less.
 
Expense Ratios1
Gross Expense Ratio: 0.80%
Net Expense Ratio: 0.60%2
 
1
Expense ratios are from the Credit Opportunities Fund’s most recent prospectus dated April 30, 2019 (Supra Institutional Class). See the Financial Highlights in this report for the most current expense ratios.
2
The Muzinich & Co., Inc. (the “Advisor”) has contractually agreed to waive its fees and reimburse certain expenses through April 30, 2020.

The Muzinich U.S. High Yield Corporate Bond Fund (“U.S. High Yield Fund”) began the year with assets of $30,165,948 and grew to $45,105,476, on inflows and investment performance.  The U.S. High Yield Fund’s Supra Institutional units gained 13.71% net over this year vs. the 15.11% return of the benchmark, the ICE BofAML U.S. High Yield Cash Pay BB-B Constrained Index (JUC4). Institutional units gained 13.68%.  U.S. High Yield Fund gross performance over the year was just below that of the primary benchmark.
 
The Muzinich Low Duration Fund (“Low Duration Fund”) exhibited strong growth from its year end-starting balance of $571,877,861 to $732,102,499 due to large net inflows and investment performance.  The Supra Institutional units produced a net gain of 7.86%, vs. just 4.07% for the index, ICE BofAML 1-3 year U.S. Corporate and Government Index (B1A0), which serves as this Low Duration Fund’s primary benchmark.  April saw the launch of the Institutional units, which produced an eight month net gain of 3.60% vs. the index’s 2.57% during the same period. Since inception on June 30, 2016, the class has produced an annualized net return of 3.99% vs. the benchmark’s annualized return of 1.76%.
 
 Performance as of December 31, 2019
1 Year
Since Inception
 Low Duration Fund – Supra Institutional
7.86%
3.99%
 ICE BofAML 1-3 Year U.S. Corporate & Government Index (B1A0)
4.07%
1.76%

Periods greater than one year are average annual returns.
 
Performance data quoted represents past performance; past performance does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Current performance of the Fund may be lower or higher than the performance quoted.  Performance data current to the most recent month end may be obtained by calling 1-855-689-4642.  The Fund imposes a 1.00% redemption fee on shares held for 90 days or less.  Performance data quoted does not reflect the redemption fee.  If reflected, total returns would be less.
 
Expense Ratios1
Gross Expense Ratio: 0.62%
Net Expense Ratio: 0.50%2
 
1
Expense ratios are from the Low Duration Fund’s most recent prospectus dated April 30, 2019 (Supra Institutional Class). See the Financial Highlights in this report for the most current expense ratios.
2
The Advisor has contractually agreed to waive its fees and reimburse certain expenses through April 30, 2020.

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Muzinich Funds

The Muzinich High Income Floating Rate Fund (“Floating Rate Fund”) finished the year with modest asset growth from $11,146,823 to $11,438,262, reflecting small net distributions and a positive investment gain over the period.  The Fund returned 7.34% over the period net of fees and underperformed the 8.17% gain of its primary benchmark, the Credit Suisse Leveraged Loan Index (CSLLI).
 
Market
 
Recovering from a rough December 2018 in which global risk assets (including high yield and loans) experienced significant declines on Federal Reserve (Fed) tightening, political uncertainty and weaker economic data, investors launched optimistically into what would be a very strong return year across a range of asset classes that do not always correlate. Equities and the most Treasury-sensitive bonds alike surged over the year with a few interruptions starting in January 2019 as the Fed reversed course and announced that it would be “patient” in raising short-term rates going forward, favoring a wait and see approach regarding economic data.  Importantly, the Fed noted that it would be open to adjusting Fed balance sheet normalization based on economic data.  The Fed’s “patience” set the stage for a dramatic rally in both investment grade corporate and high yield.  Loans also generated solid, positive returns, but lagged more duration-sensitive instruments as investors believed the Fed’s rate cycle had, in fact, topped out and even reversed.  Macro headwinds such as a potential U.S. government shutdown in mid-2019, Brexit, and U.S./China trade tensions and weaker economic data (German manufacturing) did occasionally lead to short periods of investor nervousness, but did not meaningfully detract from returns for the year, and did not provide the kind of sustained sell-off of which contrarian investors can take advantage. Combined with an accommodative European Central Bank, Bank of Japan, and several emerging market central banks, the Fed’s dovish stance bolstered fixed income returns.  A temporary inversion of the yield curve over the summer, coupled with weaker economic data in both the U.S. and Europe, raised recession fears – but the inversion passed and a recession did not materialize.  Technicals were generally strong as demand for yield in a low rate environment led to significant buying within both investment grade and high yield.
 
With so many assets performing well in 2019, a few distinct winners and laggards emerged.  Duration paid better than credit.  At the extremes, the market looked something like a “flight to quality market” as Treasuries and the highest-rated investment grade paper delivered stellar performance on falling rates while the lowest-rated high yield under-performed, but this pattern reflected the market’s isolation of weaker energy and commodity credits which found it challenging to find financing over the year despite relatively better energy prices.  Many of these bonds rallied in the last month of the year, bringing returns closer to those of the rest of the high yield market. However, the sector continues to face questions around supply and demand, and even potentially around divestment from some pockets of large institutional investors potentially seeking to address climate change concerns with their investment portfolios.  BBB rated credit performed particularly well in the U.S. as several companies improved their balance sheets to defend or even improve their investment grade ratings.  For investors willing to buy BBB paper in late 2018 amidst a crush of press reports asserting that the large and growing cohort of BBB paper was a recipe for credit downgrades and disappointment, 2019 proved to be a banner year.  In fact, credit has remained a steady, fairly-benign backdrop throughout 2019 with low rates of default and even expected default globally (outside of clearly broadcast scenarios such as those in the U.S. high yield energy sector).  We may be a long way out from 2008’s credit crisis and due for a change in the credit cycle, but investors in 2019 invested with confidence that they have runway remaining.  This was easier, perhaps, coming off 2018’s low base, but could be more challenging in the future as markets are more fully valued.
 
References to returns refer to gross returns.  Net returns will be reduced by fees and expenses and will vary by unit class.  Reference returns refer to returns in the base currency of each fund relative to a currency-similar market indicator.
 
Performance Factors
 
Muzinich Credit Opportunities Fund
 
In 2019, the Credit Opportunities Fund generated positive performance with limited volatility (below 3%, based on monthly returns over the year) on the back of a strong year across asset classes.  The Fund benefitted from repositioned moves that favored longer duration holdings on the investment grade side of the portfolio, and high quality, shorter duration holdings on the high yield side.  The Fund generated positive performance on an absolute basis every quarter in 2019.  While the Credit Opportunities Fund generated a positive return, it underperformed its benchmark, the ICE BofAML Global Corporate and High Yield Index (GI00).  Relative underperformance in the first half of 2019 was primarily due to the Fund’s lower duration profile versus the benchmark.  However, starting in Q1, the duration of the Credit Opportunities Fund increased with the purchase of longer dated US Treasuries and investment grade corporates.  By Q3, the Credit Opportunities Fund outperformed its indicative benchmark with continued emphasis on longer duration positioning (which served the Credit Opportunities Fund well as spreads
 
2

Muzinich Funds

tightened and rates declined globally on macro concerns).  In Q4, the Credit Opportunities Fund outperformed and took advantage of strong market technicals to focus on yield.  By ratings, the Credit Opportunities Fund benefitted throughout the year from allocations early in 2019 to BBB rated bonds of companies we viewed as having substantial assets, liquidity, and management teams committed to deleveraging. On a sector basis, the Credit Opportunities Fund’s investment grade holdings emphasized non-cyclical sectors (e.g. healthcare, food/beverage, cable/satellite TV), while the Credit Opportunities Fund’s high yield holdings benefitted from the avoidance of higher volatility (i.e. CCC’s, energy) and cyclical sectors.  The Credit Opportunities Fund has been well positioned for the late cycle throughout the year and has benefited from its underexposure to cyclical sectors and emphasis on high yield bonds that are more highly rated.
 
We are likely to selectively add high yield exposure (emphasizing the U.S., but also adding Emerging Markets (EM) and European holdings) as spreads are tight but are not expected to widen greatly.  On the investment grade side, the Credit Opportunities Fund’s BBB exposure is expected to increase (mainly U.S. and EM).  While Credit Opportunities Fund positioning for most of 2019 centered around taking advantage of lower rates and tighter spreads, we believe this trend has flattened and are now focused on reducing duration and building yield.  Heading into 2020, the Credit Opportunities Fund’s repositioning is focused on lowering duration with an emphasis on more yield with less duration.
 
Muzinich U.S. High Yield Corporate Bond Fund
 
In this strong U.S. high yield market environment, the U.S. High Yield Fund delivered attractive, mid-teens gross returns exactly in line with those of the broad U.S. high yield market as denoted by the ICE US High Yield Constrained Index (JUC0).  However, this gross performance underperformed the U.S. High Yield Fund’s official benchmark (JUC4) which incorporates only the BB and B rated credits in the U.S. high yield market.  Net performance was further reduced by the U.S. High Yield Fund’s fees and expenses.  Notably, while we had the portfolio invested in about 7% CCC+ and below rated names over the year—a rating band which performed poorly in the market—our credit selection in the space was much better as these holdings contributed just over 1% to the U.S. High Yield Fund’s total return even as the benchmark’s CCC allocation declined slightly in value.  Instead, the U.S. High Yield Fund trailed the benchmark largely through our small allocation to syndicated loans which lagged the high yield rally until very late in the year.  We continue to believe that loans offer significant relative value for their seniority, particularly when compared with high yield bonds of similar credit quality, though these short duration instruments were under-rewarded in our view at year end.  From an industry perspective, we most outperformed the market in the energy sector, where we were modestly underweight, but where our choices delivered better-than-market results on strong credit selection.  Outside of loans and cash, our overweight position in telecommunications delivered strong returns above those of the full market, but beneath the market’s stellar return in this sector.
 
Muzinich Low Duration Fund
 
In 2019, the Low Duration Fund generated strong performance and outperformed its benchmark.  The Low Duration Fund has remained positioned with a significant overweight of the BBB rated cohort that bolstered both relative and absolute performance. We believe corporate fundamentals could see continual improvement, with companies (particularly in the BBB segment of the market) likely to continue to focus on deleveraging as corporate cashflows continue to be supported by historically low funding costs and good access to capital. The Low Duration Fund’s modest high yield allocation, which increased slightly in Q4, benefited from the grab for yield seen in the closing period of the year.  While the Low Duration Fund ended the year close to its 2-year duration limit (with exposure to floating rate instruments remaining below 10%) the Low Duration Fund’s off-benchmark allocation to the 3-5 year cohort notably contributed to outperformance. On a sector basis, the Low Duration Fund’s exposure to banking and diversified financial services bonds contributed most significantly to positive performance, while exposure to select food/beverage bonds (primarily from one idiosyncratic name) detracted from returns.  The Low Duration Fund’s allocations to European banks, the largest sector allocation in the portfolio, comprised 24% at year-end.  We have continued to believe the sector offers attractive and improving fundamentals where balance sheets have strengthened. The Low Duration Fund also benefitted notably from U.S. and U.S. dollar denominated assets as interest rates rallied significantly and spreads tightened (spreads in Europe also tightened, although interest rates rallied much less). In addition, currency hedging costs declined over the year, allowing the Fund to take better advantage of the U.S. dollar market rally.
 
Valuations at year end appeared tight on an historic basis, however negative rates have shifted the reference point for many investors.  With rates likely to remain on hold (or move lower), the carry available in credit, as well as the opportunity to hedge capital in volatile markets, continues to make credit an attractive asset class.
 
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Muzinich Funds

Muzinich High Income Floating Rate Fund
 
In 2019, the Floating Rate Fund generated attractive gross performance just under that of its benchmark, the Credit Suisse Leveraged Loan Index (CSLLI).  However, the Floating Rate Fund got to a similar place in the market through somewhat off market positioning.  Specifically, we have dedicated more of the portfolio to non-US originated loans than the index as part of a strategy to build what we believe is higher carry than the market with lower risk.  European loans, in particular, continue to trade with quite attractive yields competitive with or better in absolute terms for the same risk as U.S. company loans even though the overall U.S. interest rate environment is higher than the negative rates prevalent across much of Europe.  The European loan market has less participation from retail investors than does the U.S. market and we believe this has led to more stable flows and pricing we continue to find relatively attractive.  We note, however, that European loans can take longer to process and settle than U.S. loans, such that we would not have them comprise a whole portfolio.  Through the year, we were also largely overweight both B+ and B- credit, while underweighting the B market segment.  This posture results largely from individual credit selection.  From a sector perspective, we have been quite light in commodity exposure (which is also an insignificant part of the European loan market) and much more significantly invested in healthcare, technology, services, and gaming.  Healthcare suffered some volatility particularly mid-year due to regulatory wrangling, rather than to company fundamentals in our view, and we continue to like the sector.  A few portfolio credits were oversold in our view by the market, but began to gain ground again in December.  We remain optimistic that the market view will catch up to our own views on value, but these changes can be relatively slower in the loan market than the bonds market.
 
Outlook
 
After a strong 2019, can credit still produce returns in 2020?  While spreads are at cycle tights, we believe credit can produce a coupon-like return.  Companies are well capitalized, having refinanced in the recent low rate environment.  We are forecasting a benign default outlook outside of the energy sector.  Energy sector defaults will certainly be impacted by oil prices so it remains to be seen what a potentially higher oil price regime means for energy companies.  Given the strong performance in 2019, are we due for a challenging 2020?  We looked at annual returns since 1998 for the global high yield market (BofA ML: HW00) and found that with the exception of the two years following the 2000 correction, every other down year has been followed by multiple positive years.  2018 was a modest down year and 2019 saw a nice rebound.  Barring macro surprises or a recession, we expect a coupon like return may be possible, suggesting the continuation of the trend of multiple positive years of performance after a down year.
 
In the Funds, we work to balance these near-term opportunities with a healthy dose of caution—and preparation—for the political and economic headwinds likely to face us as this capital cycle continues to age.  We seek to buy risk when it is cheaper and sell when it is higher.  As it can be challenging to achieve perfect timing in this regard, we often prefer to err on the side of early risk reduction.
 
4

Muzinich Funds

We appreciate the confidence and trust you have placed in Muzinich.
 
Sincerely,
 
     
     
Clinton Comeaux
Anthony DeMeo
Stuart Fuller
     
     
Joe Galzerano
Tatjana Greil-Castro
Warren Hyland
     
     
Michael McEachern
Bryan Petermann
Thomas Samson
     

     
Torben Ronberg
Sam McGairl
 


Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
 
Past performance does not guarantee future results. Short-term performance, in particular, is not a good indication of the Funds’ future performance, and an investment should not be made solely on returns.
 
References to other funds should not be interpreted as an offer of these securities.
 
Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security. Please see the Schedules of Investments for a complete list of holdings.
 
Mutual fund investing involves risk. Principal loss is possible. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Funds in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for emerging markets. Derivatives involve risks different from, and in certain cases, greater than the risks presented by more traditional investments. These risks are fully disclosed in the prospectus. Floating rate loans may not be fully collateralized and therefore may decline significantly in value. Each Fund will bear its share of the fees and expenses of investments in underlying funds or exchange-traded funds (ETFs). Shareholders will pay higher expenses than would be the case if making direct investments in underlying funds or ETFs. Because the Funds 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 shares. The Funds invest in high yield debt instruments which tend to be less liquid than higher quality debt instruments. The Funds may make short sales of securities, which involves the risk that losses may exceed the original amount invested. Please note that while the Funds’ prospectus states that the Funds may use leverage, and that they may make short sales of securities, which involve the risk that losses may exceed the original amount invested, the Funds’ portfolio managers do not anticipate engaging in either practice. The Funds will endeavor to limit price fluctuations caused by the changing relative value of currencies in which the Funds invest, but hedging involves costs and there can be no guarantee that the Funds will be perfectly hedged or that the hedging will work as anticipated. Diversification does not assure a profit, nor does it protect against a loss in a declining market.
 
Must be preceded or accompanied by a prospectus.
 
Bond ratings are grades given to bonds that indicate their credit quality as determined by a private independent rating service. The firm evaluates a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’ which is the highest grade to ‘D,’ which is the lowest grade. In limited situations when the rating agency has not issued a formal rating, the Advisor will classify the security as non-rated.
 
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Muzinich Funds

Index Definitions:
 
The ICE BofAML Global Corporate & High Yield Index (GI00) is an unmanaged index tracking the performance of fixed-rate investment grade and below investment grade corporate debt publicly issued in the major domestic and Eurobond markets. Qualifying currencies include AUD, CAD, EUR, JPY, GBP, and USD. Qualifying issues must meet minimum size requirements denominated in the currency of issue, and must have a remaining term of at least one year to maturity.
 
The ICE BofAML BB-B US Cash Pay High Yield Constrained Index (JUC4) contains all securities in The BofA Merrill Lynch US Cash Pay High Yield Index rated BB1 through B3, based on an average of Moody’s, S&P and Fitch, but caps issuer exposure at 2%. Index constituents are capitalization-weighted, based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%.
 
The ICE BofAML 1-3 Year US Corporate & Government Index (B1A0) is a subset of The BofA Merrill Lynch US Corporate & Government Index including all securities with a remaining term to final maturity less than 3 years.
 
The ICE BofAML US Cash Pay High Yield Constrained Index (JUC0) contains all securities in The ICE BofA ML US Cash Pay High Yield Index (J0A0) but caps issuer exposure at 2%.
 
The ICE BofAML Global High Yield Index (HW00) tracks the performance of USD, CAD, GBP and EUR denominated below investment grade corporate debt publicly issued in the major domestic or eurobond markets. Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule and a minimum amount outstanding of USD 250 million, EUR 250 million, GBP 100 million, or CAD 100 million.
 
CS Leveraged Loan Index – The CS Leveraged Loan Index is designed to mirror the investable universe of US dollar denominated leveraged loan market.  The index is rebalanced monthly on the last business day of the month instead of daily. Qualifying loans must have a minimum outstanding balance of $100 million for all facilities except TL A facilities (TL A facilities need a minimum outstanding balance of $1 billion), issuers domiciled in developed countries, at least one year long tenor, be rated “5B” or lower, fully funded and priced by a third party vendor at month-end.
 
Glossary:
 
U.S. Treasury is a fixed-interest U.S. government debt security with a maturity of more than 10 years.
 
Duration is a measure of the expected life of a fixed income security that is used to determine the sensitivity of a security’s price to changes in interest rates.
 
Inversion of the yield curve: The Yield Curve is a line graph that shows what yield investors receive at a given moment for investments in U.S. government debt securities of varying remaining times to maturity.  Typically, investors anticipate receiving higher yields for longer maturity bonds as they expect their long-term investments to be cushioned against inflation.  When the yield curve “inverts” and shorter remaining maturity bonds earn higher yields bonds with longer remaining maturities, it can be a sign that investors believe that there could be deflation caused by a slowing or shrinking economy in the future.
 
Spreads are the difference between the interest rate received on a bond and the interest rate that would be received at the same time on a similar-duration U.S. government debt security.
 
Cashflows are the total amount of money being transferred into and out of a business over a period of time.
 
Muzinich & Co. is a registered investment adviser. The Muzinich Funds are distributed by Quasar Distributors, LLC.
 
6

Muzinich Credit Opportunities Fund

 SECTOR ALLOCATIONS at December 31, 2019 (Unaudited)

 Sector
% of Net Assets
   
 Banking
  15.1%
 Healthcare
  10.3%
 Telecommunications
    9.8%
 Energy
    7.6%
 Food/Beverage/Tobacco
    7.4%
 Cable/Satellite TV
    5.2%
 Diversified Financial Services
    3.1%
 Containers
    2.7%
 Metals/Mining
     2.5%
 Utilities
    2.5%
 Diversified Media
    2.3%
 Food & Drug Retail
    2.3%
 Restaurants
    1.9%
 Technology
    1.9%
 Automotive & Auto Parts
    1.8%
 Building Materials
    1.5%
 Airlines
    1.1%
 Gaming
    1.1%
 Affiliated Mutual Funds
     1.0%
 Sovereign
    1.0%
 Homebuilders/Real Estate
    0.9%
 Quasi & Foreign Government
    0.8%
 Services
    0.8%
 Broadcasting
    0.7%
 Capital Goods
    0.7%
 Transportation Excluding Air/Rail
    0.7%
 Chemicals
    0.5%
 Leisure
    0.3%
 Paper
    0.3%
 Entertainment/Film
    0.2%
 Hotels
    0.2%
 Cash & Equivalents1
  11.8%
 Total
100.0%

1
Represents cash, U.S. Treasury Bills and other assets in excess of liabilities.

7

Muzinich U.S. High Yield Corporate Bond Fund

 SECTOR ALLOCATIONS at December 31, 2019 (Unaudited)

 Sector
% of Net Assets
   
 Exchange Traded Funds
  11.2%
 Energy
  10.4%
 Telecommunications
    9.6%
 Cable/Satellite TV
    7.5%
 Healthcare
    6.9%
 Diversified Financial Services
    5.5%
 Gaming
    4.0%
 Services
    3.9%
 Broadcasting
    3.4%
 Capital Goods
    3.3%
 Utilities
    3.2%
 Food/Beverage/Tobacco
    3.1%
 Metals/Mining
    2.9%
 Homebuilders/Real Estate
    2.5%
 Diversified Media
    2.2%
 Technology
    2.2%
 Chemicals
    2.1%
 Containers
    1.9%
 Building Materials
    1.8%
 Steel
    1.7%
 Banking
    1.2%
 Leisure
    1.1%
 Restaurants
    1.0%
 Aerospace/Defense
    0.9%
 Automotive & Auto Parts
    0.9%
 Food & Drug Retail
    0.7%
 Insurance
    0.7%
 Environmental
    0.6%
 Consumer-Products
    0.5%
 Paper
    0.5%
 Hotels
    0.3%
 Transportation Excluding Air/Rail
    0.3%
 Airlines
    0.2%
 Entertainment/Film
    0.2%
 Super Retail
    0.2%
 Cash & Equivalents1
    1.4%
 Total
100.0%

1
Represents cash and other assets in excess of liabilities.

8

Muzinich Low Duration Fund

 SECTOR ALLOCATIONS at December 31, 2019 (Unaudited)

 Sector
% of Net Assets
   
 Banking
  24.0%
 Diversified Financial Services
  12.3%
 Homebuilders/Real Estate
    8.3%
 Automotive & Auto Parts
    6.6%
 Energy
    6.3%
 Technology
    4.4%
 Telecommunications
    4.0%
 Healthcare
    3.5%
 Capital Goods
    3.3%
 Services
    3.2%
 Chemicals
    3.1%
 Food/Beverage/Tobacco
    3.0%
 Quasi & Foreign Government
    2.2%
 Steel
    1.7%
 Cable/Satellite TV
    1.3%
 Super Retail
    1.3%
 Containers
    1.2%
 Utilities
    1.1%
 Broadcasting
    1.0%
 Transportation Excluding Air/Rail
    1.0%
 Affiliated Mutual Funds
    0.9%
 Gaming
    0.9%
 Consumer-Products
    0.8%
 Leisure
    0.8%
 Food & Drug Retail
    0.7%
 Insurance
    0.7%
 Diversified Media
    0.5%
 Metals/Mining
    0.5%
 Building Materials
    0.3%
 Environmental
    0.2%
 Airlines
    0.1%
 Railroads
    0.1%
 Cash & Equivalents1
    0.7%
 Total
100.0%

1
Represents cash and other assets in excess of liabilities.

9

Muzinich High Income Floating Rate Fund

 SECTOR ALLOCATIONS at December 31, 2019 (Unaudited)

 Sector
% of Net Assets
   
 Healthcare
  16.1%
 Technology
  13.6%
 Services
  11.2%
 Gaming
    7.0%
 Capital Goods
    6.3%
 Utilities
    3.6%
 Automotive & Auto Parts
    3.4%
 Broadcasting
    3.4%
 Telecommunications
    3.4%
 Food/Beverage/Tobacco
    2.8%
 Consumer-Products
    2.7%
 Containers
    2.4%
 Aerospace/Defense
    2.2%
 Insurance
    2.2%
 Cable/Satellite TV
    2.1%
 Environmental
    2.1%
 Metals/Mining
    2.1%
 Transportation Excluding Air/Rail
    2.1%
 Chemicals
    1.9%
 Building Materials
    1.7%
 Diversified Financial Services
    1.6%
 Energy
    1.4%
 Steel
    1.0%
 Diversified Media
    0.7%
 Leisure
    0.4%
 Cash & Equivalents1
    2.6%
 Total
100.0%

1
Represents cash and other assets in excess of liabilities.

10

Credit Opportunities Fund

 HISTORICAL PERFORMANCE – SUPRA INSTITUTIONAL CLASS

Value of $5,000,000 vs. ICE BofAML Global Corporate & High Yield Index (GI00)
and ICE BofAML Global Corporate & High Yield Index (USD 100% Hedged)
(Unaudited)

 

Average Annual
     
Since Inception
Ending Value
Returns for the Periods Ended December 31, 2019
1 Year
3 Year
5 Year
(1/3/2013)
(12/31/2019)
Credit Opportunities Fund – Supra Institutional Class
10.77%
5.14%
4.64%
4.93%
$7,000,688
ICE BofAML Global Corporate &
         
  High Yield Index (GI00)
11.92%
5.11%
4.42%
4.34%
$6,729,930
ICE BofAML Global Corporate &
         
  High Yield Index (USD 100% Hedged)
12.83%
5.85%
4.93%
4.65%
$6,890,387

This chart illustrates the performance of a hypothetical $5,000,000 investment made on January 3, 2013, and is not intended to imply any future performance.  The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect fee waivers in effect.  In the absence of such waivers, total return would be reduced.  The chart assumes reinvestment of capital gains, dividends and return of capital, if applicable, for the Fund and dividends for the index.
 
11

Credit Opportunities Fund

 HISTORICAL PERFORMANCE – INSTITUTIONAL CLASS

Value of $1,000,000 vs. ICE BofAML Global Corporate & High Yield Index (GI00)
and ICE BofAML Global Corporate & High Yield Index (USD 100% Hedged)
(Unaudited)

 

 
Average Annual
     
Since Inception
Ending Value
Returns for the Periods Ended December 31, 2019
1 Year
3 Year
5 Year
(10/15/2014)
(12/31/2019)
Credit Opportunities Fund – Institutional Class
10.60%
5.09%
4.56%
4.40%
$1,251,470
ICE BofAML Global Corporate &
         
  High Yield Index (GI00)
11.92%
5.11%
4.42%
4.22%
$1,242,503
ICE BofAML Global Corporate &
         
  High Yield Index (USD 100% Hedged)
12.83%
5.85%
4.93%
4.71%
$1,271,063

This chart illustrates the performance of a hypothetical $1,000,000 investment made on October 15, 2014, and is not intended to imply any future performance.  The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect fee waivers in effect.  In the absence of such waivers, total return would be reduced.  The chart assumes reinvestment of capital gains, dividends and return of capital, if applicable, for the Fund and dividends for the index.
 
12

U.S. High Yield Fund

 HISTORICAL PERFORMANCE – SUPRA INSTITUTIONAL CLASS

Value of $5,000,000 vs. ICE BofAML BB-B U.S.
Cash Pay High Yield Constrained Index (JUC4)
(Unaudited)
 
 
Average Annual
   
Since Inception
Ending Value
Returns for the Periods Ended December 31, 2019
1 Year
3 Year
(3/31/2016)
(12/31/2019)
U.S. High Yield Fund – Supra Institutional Class
13.71%
5.60%
6.54%
$6,342,821
ICE BofAML BB-B U.S. Cash Pay
       
  High Yield Constrained Index (JUC4)
15.11%
6.45%
8.14%
$6,708,375

This chart illustrates the performance of a hypothetical $5,000,000 investment made on March 31, 2016, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect fee waivers in effect. In the absence of such waivers, total return would be reduced. The chart assumes reinvestment of capital gains, dividends and return of capital, if applicable, for the Fund and dividends for the index.
 
13

U.S. High Yield Fund

 HISTORICAL PERFORMANCE – INSTITUTIONAL CLASS
 
Value of $1,000,000 vs. ICE BofAML BB-B U.S.
Cash Pay High Yield Constrained Index (JUC4)
(Unaudited)

 
 
Average Annual
 
Since Inception
Ending Value
Returns for the Periods Ended December 31, 2019
1 Year
(3/27/2017)
(12/31/2019)
U.S. High Yield Fund – Institutional Class
13.68%
5.75%
$1,166,992
ICE BofAML BB-B U.S. Cash Pay High Yield Constrained Index (JUC4)
15.11%
6.52%
$1,190,993

This chart illustrates the performance of a hypothetical $1,000,000 investment made on March 27, 2017, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect fee waivers in effect.  In the absence of such waivers, total return would be reduced. The chart assumes reinvestment of capital gains, dividends and return of capital, if applicable, for the Fund and dividends for the index.
 
14

Low Duration Fund

 HISTORICAL PERFORMANCE – SUPRA INSTITUTIONAL CLASS

Value of $5,000,000 vs. ICE BofAML
1-3 Year U.S. Corporate & Government Index (B1A0)
(Unaudited)

 
 
Average Annual
   
Since Inception
Ending Value
Returns for the Periods Ended December 31, 2019
1 Year
3 Year
(6/30/2016)
(12/31/2019)
Low Duration Fund – Supra Institutional Class
7.86%
4.27%
3.99%
$5,734,601
ICE BofAML 1-3 Year U.S.
       
  Corporate & Government Index (B1A0)
4.07%
2.18%
1.76%
$5,314,595

This chart illustrates the performance of a hypothetical $5,000,000 investment made on June 30, 2016, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect fee waivers in effect. In the absence of such waivers, total return would be reduced. The chart assumes reinvestment of capital gains, dividends and return of capital, if applicable, for the Fund and dividends for the index.
 
15

Low Duration Fund

 HISTORICAL PERFORMANCE – INSTITUTIONAL CLASS

Value of $1,000,000 vs. ICE BofAML
1-3 Year U.S. Corporate & Government Index (B1A0)
(Unaudited)

 
 
Average Annual
Since Inception
Ending Value
Returns for the Period Ended December 31, 2019
(4/30/2019)
(12/31/2019)
Low Duration Fund – Institutional Class
3.60%
$1,050,046
ICE BofAML 1-3 Year U.S. Corporate & Government Index (B1A0)
2.57%
$1,025,715

This chart illustrates the performance of a hypothetical $1,000,000 investment made on April 30, 2019, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect fee waivers in effect. In the absence of such waivers, total return would be reduced. The chart assumes reinvestment of capital gains, dividends and return of capital, if applicable, for the Fund and dividends for the index.
 
16

Floating Rate Fund

 HISTORICAL PERFORMANCE – INSTITUTIONAL CLASS

Value of $1,000,000 vs. Credit Suisse Leveraged Loan Index
(Unaudited)

 
 
Average Annual
 
Since Inception
Ending Value
Returns for the Periods Ended December 31, 2019
1 Year
(6/29/2018)
(12/31/2019)
Floating Rate Fund – Institutional Class
7.34%
3.81%
$1,057,836
Credit Suisse Leveraged Loan Index
8.17%
4.52%
$1,068,611

This chart illustrates the performance of a hypothetical $1,000,000 investment made on June 29, 2018, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect fee waivers in effect. In the absence of such waivers, total return would be reduced. The chart assumes reinvestment of capital gains, dividends and return of capital, if applicable, for the Fund and dividends for the index.
 
17

Credit Opportunities Fund

 SCHEDULE OF INVESTMENTS at December 31, 2019

Principal
             
Amount
          
Value
 
CORPORATE BONDS: 86.8%
     
Airlines: 1.1%
     
       
Delta Air Lines Inc
     
     
2,125,000
 
  2.900%, 10/28/24
 
$
2,130,345
 
         
Emirates Airline
       
     
2,231,388
 
  4.500%, 2/6/25
   
2,293,331
 
               
4,423,676
 
Automotive & Auto Parts: 1.8%
       
         
Ford Motor Credit Co LLC
       
EUR
   
1,100,000
 
  1.514%, 2/17/23
   
1,245,289
 
     
2,925,000
 
  4.063%, 11/1/24
   
2,988,417
 
         
Kia Motors Corp
       
     
470,000
 
  3.250%, 4/21/26
   
472,785
 
     
570,000
 
  3.500%, 10/25/27
   
575,746
 
         
ZF North America Capital Inc
       
     
2,138,000
 
  4.000%, 4/29/20 1
   
2,148,289
 
               
7,430,526
 
Banking: 14.7%
       
         
Allied Irish Banks PLC
       
EUR
   
800,000
 
  4.125% (5 Year Swap Rate
       
         
  EUR + 3.950%), 11/26/25 2,3
   
928,013
 
         
Bank of New Zealand
       
     
2,050,000
 
  3.500%, 2/20/24
   
2,144,448
 
         
Bankia SA
       
EUR
   
1,200,000
 
  3.375% (5 Year Swap Rate
       
         
  EUR + 3.350%), 3/15/27  2,3
   
1,419,401
 
         
Barclays Bank PLC
       
     
1,600,000
 
  5.140%, 10/14/20
   
1,633,681
 
         
BNP Paribas S.A.
       
EUR
   
2,100,000
 
  2.875% (5 Year Swap Rate
       
         
  EUR + 1.650%), 3/20/26 2,3
   
2,433,933
 
         
BPCE SA
       
EUR
   
1,800,000
 
  2.750% (5 Year Swap Rate
       
         
  EUR + 1.830%), 7/8/26 2,3
   
2,096,702
 
EUR
   
800,000
 
  2.750% (5 Year Swap Rate
       
         
  EUR + 2.370%), 11/30/27 2,3
   
960,234
 
         
Caixa Geral de Depositos SA
       
EUR
   
1,900,000
 
  5.750% (5 Year Swap Rate
       
         
  EUR + 5.500%), 6/28/28 2,3
   
2,440,796
 
         
CaixaBank SA
       
EUR
   
800,000
 
  2.750% (5 Year Swap Rate
       
         
  EUR + 2.350%), 7/14/28 2,3
   
949,782
 
         
Commerzbank AG
       
EUR
   
1,500,000
 
  7.750%, 3/16/21
   
1,837,421
 
         
Credit Agricole SA
       
EUR
   
250,000
 
  3.900%, 4/19/21
   
294,612
 
         
Credit Suisse AG
       
EUR
   
1,000,000
 
  5.750% (5 Year Swap Rate
       
         
  EUR + 4.000%), 9/18/25 2,3
   
1,166,713
 
         
Danske Bank A/S
       
EUR
   
1,750,000
 
  2.750% (5 Year Swap Rate
       
         
  EUR + 1.520%), 5/19/26 2,3
   
2,024,763
 
         
DBS Group Holdings Ltd
       
EUR
   
872,000
 
  1.500% (5 Year Swap Rate
       
         
  EUR + 1.200%), 4/11/28 2,3
   
994,115
 
         
de Volksbank NV
       
EUR
   
2,075,000
 
  3.750% (5 Year Swap Rate
       
         
  EUR + 3.650%), 11/5/25 2,3
   
2,397,829
 
         
Deutsche Bank AG/New York NY
       
     
2,025,000
 
  3.150%, 1/22/21
   
2,034,681
 
     
1,425,000
 
  4.250%, 10/14/21
   
1,466,033
 
         
DNB Bank ASA
       
EUR
   
2,150,000
 
  1.250% (5 Year Swap Rate
       
         
  EUR + 1.150%), 3/1/27 2,3
   
2,462,349
 
         
Erste Group Bank AG
       
     
1,000,000
 
  5.500% (5 Year Swap Rate
       
         
  USD + 3.766%), 5/26/25 2,3
   
1,012,841
 
         
HSBC Bank Capital Funding
       
         
  Sterling 2 LP
       
GBP
   
1,125,000
 
  5.862% (6 Month LIBOR
       
         
  GBP + 1.850%), 4/7/20 2,3,5
   
1,509,812
 
         
Ibercaja Banco SA
       
EUR
   
1,200,000
 
  5.000% (5 Year Swap Rate
       
         
  EUR + 4.551%), 7/28/25 2,3
   
1,382,494
 
         
ING Bank NV
       
EUR
   
3,100,000
 
  3.625% (5 Year Swap Rate
       
         
  EUR + 2.250%), 2/25/26 2,3
   
3,617,869
 
         
Itau Unibanco Holding SA
       
     
450,000
 
  5.125%, 5/13/23
   
475,130
 
         
KBC Group NV
       
EUR
   
900,000
 
  1.875% (5 Year Swap Rate
       
         
  EUR + 1.500%), 3/11/27 2,3
   
1,045,023
 
         
La Banque Postale SA
       
EUR
   
1,800,000
 
  2.750% (5 Year Swap Rate
       
         
  EUR + 1.520%), 4/23/26 2,3
   
2,085,304
 
         
Macquarie Bank Ltd
       
     
667,000
 
  6.625%, 4/7/21
   
702,526
 
         
National Australia Bank Ltd
       
     
2,000,000
 
  3.933% (5 Year CMT Rate
       
         
  + 1.880%), 8/2/34 2,3
   
2,081,275
 
         
NBK Tier 1 Financing 2 Ltd
       
     
1,190,000
 
  4.500% (6 Year Swap Rate
       
         
  USD + 2.832%), 11/27/25 2,3,5
   
1,190,000
 
         
Nordea Bank Abp
       
EUR
   
2,150,000
 
  1.875% (5 Year Swap Rate
       
         
  EUR + 1.700%), 11/10/25 2,3
   
2,448,128
 
         
Shinhan Bank Co Ltd
       
     
1,000,000
 
  4.000%, 4/23/29
   
1,053,269
 
         
Societe Generale SA
       
EUR
   
2,100,000
 
  2.500% (5 Year Swap Rate
       
         
  EUR + 1.830%), 9/16/26 2,3
   
2,443,997
 
         
Standard Chartered PLC
       
     
1,950,000
 
  3.950%, 1/11/23
   
2,011,792
 
EUR
   
2,150,000
 
  4.000% (5 Year Swap Rate
       
         
  EUR + 2.300%), 10/21/25 2,3
   
2,485,159
 

The accompanying notes are an integral part of these financial statements.
18

Credit Opportunities Fund

 SCHEDULE OF INVESTMENTS at December 31, 2019 (Continued)

Principal
             
Amount
          
Value
 
CORPORATE BONDS: 86.8% (Continued)
     
Banking: 14.7% (Continued)
     
       
State Bank of India
     
     
985,000
 
  4.375%, 1/24/24
 
$
1,038,614
 
         
Svenska Handelsbanken AB
       
EUR
   
2,000,000
 
  1.250% (5 Year Swap Rate
       
         
  EUR + 0.800%), 3/2/28 2,3
   
2,300,695
 
         
UBS AG
       
EUR
   
2,375,000
 
  4.750% (5 Year Swap Rate
       
         
  EUR + 3.400%), 2/12/26 2,3
   
2,800,542
 
               
61,369,976
 
Broadcasting: 0.7%
       
         
Nexstar Broadcasting Inc
       
     
1,225,000
 
  5.625%, 8/1/24 1
   
1,279,617
 
         
Sirius XM Radio Inc
       
     
1,106,000
 
  3.875%, 8/1/22 1
   
1,132,260
 
     
525,000
 
  4.625%, 7/15/24 1
   
552,344
 
               
2,964,221
 
Building Materials: 1.5%
       
         
Cemex SAB de CV
       
EUR
   
1,120,000
 
  2.750%, 12/5/24
   
1,287,856
 
         
Sherwin-Williams Co
       
     
2,100,000
 
  3.450%, 6/1/27
   
2,223,930
 
     
2,825,000
 
  2.950%, 8/15/29
   
2,859,148
 
               
6,370,934
 
Cable/Satellite TV: 5.2%
       
         
CCO Holdings LLC /
       
         
  CCO Holdings Capital Corp
       
     
825,000
 
  5.250%, 9/30/22
   
835,750
 
     
1,300,000
 
  5.375%, 5/1/25 1
   
1,344,960
 
     
2,925,000
 
  5.000%, 2/1/28 1
   
3,074,672
 
     
2,975,000
 
  4.750%, 3/1/30 1
   
3,034,143
 
         
Charter Communications
       
         
  Operating LLC / Charter
       
         
  Communications Operating Capital
       
     
2,625,000
 
  5.050%, 3/30/29
   
2,980,879
 
     
1,800,000
 
  6.384%, 10/23/35
   
2,268,749
 
         
Comcast Corp
       
     
1,300,000
 
  4.150%, 10/15/28
   
1,465,419
 
         
CSC Holdings LLC
       
     
1,000,000
 
  6.625%, 10/15/25 1
   
1,066,240
 
     
2,000,000
 
  10.875%, 10/15/25 1
   
2,238,750
 
     
2,225,000
 
  5.750%, 1/15/30 1
   
2,377,969
 
         
Midcontinent Communications /
       
         
  Midcontinent Finance Corp
       
     
825,000
 
  5.375%, 8/15/27 1
   
874,787
 
               
21,562,318
 
Capital Goods: 0.7%
       
         
Amsted Industries Inc
       
     
900,000
 
  4.625%, 5/15/30 1
   
908,757
 
         
Westinghouse Air Brake
       
         
  Technologies Corp
       
     
1,900,000
 
  4.400%, 3/15/24
   
2,018,665
 
               
2,927,422
 
Chemicals: 0.5%
       
         
Braskem Netherlands Finance BV
       
     
220,000
 
  4.500%, 1/31/30
   
219,230
 
         
CF Industries Inc
       
     
1,050,000
 
  3.400%, 12/1/21 1
   
1,077,313
 
         
Reliance Holding USA Inc
       
     
920,000
 
  5.400%, 2/14/22
   
974,594
 
               
2,271,137
 
Containers: 2.7%
       
         
Ardagh Packaging Finance PLC /
       
         
  Ardagh Holdings USA Inc
       
     
1,950,000
 
  6.000%, 2/15/25 1
   
2,049,937
 
         
Ball Corp
       
EUR
   
1,600,000
 
  3.500%, 12/15/20
   
1,852,621
 
         
Berry Global Inc
       
     
2,000,000
 
  5.500%, 5/15/22
   
2,027,486
 
     
583,000
 
  6.000%, 10/15/22
   
595,571
 
     
1,375,000
 
  5.125%, 7/15/23
   
1,414,517
 
         
Graphic Packaging
       
         
  International LLC
       
     
525,000
 
  4.750%, 7/15/27 1
   
563,245
 
         
Reynolds Group Issuer Inc /
       
         
  Reynolds Group Issuer LLC /
       
         
  Reynolds Group Issuer Lu
       
     
1,550,572
 
  5.750%, 10/15/20
   
1,554,449
 
     
1,350,000
 
  5.125%, 7/15/23 1
   
1,384,877
 
               
11,442,703
 
Diversified Financial Services: 3.1%
       
         
Alliance Data Systems Corp
       
     
1,200,000
 
  4.750%, 12/15/24 1
   
1,200,000
 
         
CIT Group Inc
       
     
1,800,000
 
  5.000%, 8/15/22
   
1,912,487
 
         
DAE Funding LLC
       
     
4,000,000
 
  5.000%, 8/1/24 1
   
4,209,721
 
         
Grupo de Inversiones
       
         
  Suramericana SA
       
     
1,500,000
 
  5.500%, 4/29/26
   
1,676,786
 
         
Kuwait Projects Co SPC Ltd
       
     
900,000
 
  9.375%, 7/15/20
   
935,190
 
         
LPL Holdings Inc
       
     
675,000
 
  4.625%, 11/15/27 1
   
690,188
 
         
Springleaf Finance Corp
       
     
1,000,000
 
  7.750%, 10/1/21
   
1,088,070
 
     
625,000
 
  6.125%, 3/15/24
   
685,931
 
     
550,000
 
  5.375%, 11/15/29
   
575,108
 
               
12,973,481
 

The accompanying notes are an integral part of these financial statements.
19

Credit Opportunities Fund

 SCHEDULE OF INVESTMENTS at December 31, 2019 (Continued)

Principal
             
Amount
          
Value
 
CORPORATE BONDS: 86.8% (Continued)
     
Diversified Media: 2.3%
     
       
Clear Channel Worldwide
     
       
  Holdings Inc
     
     
1,000,000
 
  5.125%, 8/15/27 1
 
$
1,043,150
 
         
Lamar Media Corp
       
     
1,175,000
 
  5.750%, 2/1/26
   
1,247,556
 
         
Outfront Media Capital LLC /
       
         
  Outfront Media Capital Corp
       
     
2,150,000
 
  5.625%, 2/15/24
   
2,208,233
 
     
950,000
 
  5.000%, 8/15/27 1
   
996,882
 
         
Prosus NV
       
     
1,760,000
 
  5.500%, 7/21/25
   
1,960,330
 
         
TEGNA Inc
       
     
2,125,000
 
  5.000%, 9/15/29 1
   
2,164,844
 
               
9,620,995
 
Energy: 7.6%
       
         
Cheniere Corpus Christi
       
         
  Holdings LLC
       
     
1,850,000
 
  5.125%, 6/30/27
   
2,048,005
 
         
Cheniere Energy Partners LP
       
     
950,000
 
  4.500%, 10/1/29 1
   
977,977
 
         
Concho Resources Inc
       
     
991,000
 
  4.375%, 1/15/25
   
1,024,476
 
         
Delek & Avner Tamar Bond Ltd
       
     
800,000
 
  4.435%, 12/30/20 1
   
812,853
 
         
Diamondback Energy Inc
       
     
1,375,000
 
  5.375%, 5/31/25
   
1,443,791
 
     
2,625,000
 
  3.250%, 12/1/26
   
2,661,005
 
     
1,675,000
 
  3.500%, 12/1/29
   
1,707,579
 
         
Energy Transfer Operating LP
       
     
1,000,000
 
  4.250%, 3/15/23
   
1,045,239
 
         
Gazprom PJSC Via Gaz Capital SA
       
EUR
   
1,700,000
 
  2.949%, 1/24/24
   
2,074,944
 
         
KazMunayGas National Co JSC
       
     
1,400,000
 
  4.750%, 4/19/27
   
1,541,063
 
         
Kinder Morgan Energy Partners LP
       
     
950,000
 
  4.300%, 5/1/24
   
1,015,955
 
         
Lukoil International Finance BV
       
     
965,000
 
  4.563%, 4/24/23
   
1,025,312
 
         
MOL Hungarian Oil & Gas PLC
       
EUR
   
805,000
 
  2.625%, 4/28/23
   
968,958
 
         
Petrobras Global Finance BV
       
     
2,000,000
 
  4.375%, 5/20/23
   
2,086,000
 
         
Plains All American Pipeline LP /
       
         
  PAA Finance Corp
       
     
2,025,000
 
  3.600%, 11/1/24
   
2,085,468
 
         
Sabine Pass Liquefaction LLC
       
     
2,525,000
 
  5.625%, 3/1/25
   
2,845,532
 
         
Senaat Sukuk Ltd
       
     
650,000
 
  4.760%, 12/5/25
   
709,235
 
         
Southern Star Central Corp
       
     
4,650,000
 
  5.125%, 7/15/22 1
   
4,709,576
 
         
Ultrapar International SA
       
     
1,000,000
 
  5.250%, 6/6/29
   
1,056,350
 
               
31,839,318
 
Entertainment/Film: 0.2%
       
         
Live Nation Entertainment Inc
       
     
850,000
 
  4.750%, 10/15/27 1
   
881,322
 
         
Food & Drug Retail: 2.3%
       
         
Albertsons Cos Inc / Safeway Inc /
       
         
  New Albertsons LP /
       
         
  Albertsons LLC
       
     
825,000
 
  4.625%, 1/15/27 1
   
825,536
 
         
CVS Health Corp
       
     
3,575,000
 
  3.700%, 3/9/23
   
3,728,534
 
     
2,050,000
 
  3.000%, 8/15/26
   
2,094,568
 
     
1,275,000
 
  4.300%, 3/25/28
   
1,393,999
 
     
1,575,000
 
  3.250%, 8/15/29
   
1,603,959
 
               
9,646,596
 
Food/Beverage/Tobacco: 7.4%
       
         
Anheuser-Busch Cos LLC /
       
         
  Anheuser-Busch InBev
       
         
  Worldwide Inc
       
     
4,875,000
 
  4.700%, 2/1/36
   
5,657,612
 
         
Anheuser-Busch InBev
       
         
  Worldwide Inc
       
     
1,875,000
 
  4.750%, 1/23/29
   
2,175,115
 
     
2,625,000
 
  4.600%, 4/15/48
   
3,009,007
 
         
Aramark Services Inc
       
     
1,000,000
 
  5.125%, 1/15/24
   
1,028,285
 
         
BRF SA
       
EUR
   
875,000
 
  2.750%, 6/3/22
   
1,025,070
 
     
1,062,000
 
  4.875%, 1/24/30
   
1,096,791
 
         
Constellation Brands Inc
       
     
2,250,000
 
  4.750%, 11/15/24
   
2,495,870
 
     
2,335,000
 
  4.750%, 12/1/25
   
2,604,319
 
     
1,650,000
 
  4.650%, 11/15/28
   
1,858,518
 
     
3,325,000
 
  3.150%, 8/1/29
   
3,369,928
 
         
Grupo Bimbo SAB de CV
       
     
1,900,000
 
  3.875%, 6/27/24
   
1,986,433
 
         
Kraft Heinz Foods Co
       
     
1,450,000
 
  3.750%, 4/1/30 1
   
1,495,418
 
         
Marfrig Holdings Europe BV
       
     
966,000
 
  8.000%, 6/8/23
   
1,007,465
 
         
Performance Food Group Inc
       
     
425,000
 
  5.500%, 10/15/27 1
   
455,292
 
         
Post Holdings Inc
       
     
475,000
 
  5.500%, 3/1/25 1
   
498,553
 
         
Sigma Alimentos S.A. de CV
       
     
1,048,000
 
  4.125%, 5/2/26
   
1,099,465
 
               
30,863,141
 

The accompanying notes are an integral part of these financial statements.
20

Credit Opportunities Fund

 SCHEDULE OF INVESTMENTS at December 31, 2019 (Continued)

Principal
             
Amount
          
Value
 
CORPORATE BONDS: 86.8% (Continued)
     
Gaming: 1.1%
     
       
Boyd Gaming Corp
     
     
875,000
 
  4.750%, 12/1/27 1
 
$
910,525
 
         
Caesars Resort Collection LLC /
       
         
  CRC Finco Inc
       
     
1,000,000
 
  5.250%, 10/15/25 1
   
1,037,500
 
         
Jack Ohio Finance LLC /
       
         
  Jack Ohio Finance 1 Corp
       
     
76,000
 
  6.750%, 11/15/21 1
   
77,691
 
         
MGM Growth Properties Operating
       
         
  Partnership LP / MGP Finance
       
         
  Co-Issuer Inc
       
     
1,400,000
 
  5.750%, 2/1/27 1
   
1,562,750
 
         
VICI Properties LP /
       
         
  VICI Note Co Inc
       
     
475,000
 
  4.250%, 12/1/26 1
   
490,122
 
     
375,000
 
  4.625%, 12/1/29 1
   
391,631
 
               
4,470,219
 
Healthcare: 10.3%
       
         
AbbVie Inc
       
     
5,050,000
 
  3.200%, 11/21/29 1
   
5,144,007
 
     
2,575,000
 
  4.050%, 11/21/39 1
   
2,715,643
 
         
Alcon Finance Corp
       
     
2,075,000
 
  3.000%, 9/23/29 1
   
2,115,457
 
         
AMN Healthcare Inc
       
     
975,000
 
  4.625%, 10/1/27 1
   
980,214
 
         
Avantor Inc
       
     
1,000,000
 
  9.000%, 10/1/25 1
   
1,119,615
 
         
Bausch Health Cos Inc
       
     
1,829,000
 
  6.500%, 3/15/22 1
   
1,872,439
 
     
2,037,000
 
  5.875%, 5/15/23 1
   
2,056,097
 
     
975,000
 
  6.125%, 4/15/25 1
   
1,009,432
 
     
1,925,000
 
  5.750%, 8/15/27 1
   
2,092,186
 
     
625,000
 
  5.000%, 1/30/28 1
   
643,056
 
     
625,000
 
  5.250%, 1/30/30 1
   
649,688
 
         
Centene Corp
       
     
1,900,000
 
  6.125%, 2/15/24
   
1,973,625
 
     
1,000,000
 
  5.375%, 6/1/26 1
   
1,063,100
 
     
1,900,000
 
  4.250%, 12/15/27 1
   
1,958,140
 
     
1,675,000
 
  4.625%, 12/15/29 1
   
1,764,110
 
         
Charles River Laboratories
       
         
  International Inc
       
     
1,050,000
 
  4.250%, 5/1/28 1
   
1,071,630
 
         
DH Europe Finance II SARL
       
     
1,185,000
 
  2.600%, 11/15/29
   
1,183,258
 
         
HCA Healthcare Inc
       
     
2,000,000
 
  6.250%, 2/15/21
   
2,089,500
 
         
HCA Inc
       
     
1,000,000
 
  5.875%, 5/1/23
   
1,107,245
 
     
2,075,000
 
  5.250%, 4/15/25
   
2,324,443
 
         
Hologic Inc
       
     
351,000
 
  4.375%, 10/15/25 1
   
363,139
 
         
Molina Healthcare Inc
       
     
1,000,000
 
  5.375%, 11/15/22
   
1,064,760
 
         
MPT Operating Partnership LP /
       
         
  MPT Finance Corp
       
EUR
   
850,000
 
  4.000%, 8/19/22
   
1,035,026
 
     
1,150,000
 
  4.625%, 8/1/29
   
1,186,656
 
         
RegionalCare Hospital
       
         
  Partners Holdings Inc
       
     
1,425,000
 
  8.250%, 5/1/23 1
   
1,507,828
 
         
Select Medical Corp
       
     
625,000
 
  6.250%, 8/15/26 1
   
677,722
 
         
Teva Pharmaceutical Finance IV BV
       
     
1,000,000
 
  3.650%, 11/10/21
   
980,570
 
         
WellCare Health Plans Inc
       
     
1,000,000
 
  5.375%, 8/15/26 1
   
1,066,850
 
               
42,815,436
 
Homebuilders/Real Estate: 0.9%
       
         
Emaar Sukuk Ltd
       
     
530,000
 
  3.875%, 9/17/29
   
529,140
 
         
iStar Inc
       
     
2,000,000
 
  4.750%, 10/1/24
   
2,076,670
 
     
1,200,000
 
  4.250%, 8/1/25
   
1,216,152
 
               
3,821,962
 
Hotels: 0.2%
       
         
Marriott Ownership Resorts Inc
       
     
950,000
 
  4.750%, 1/15/28 1
   
975,268
 
         
Leisure: 0.3%
       
         
Viking Cruises Ltd
       
     
1,000,000
 
  5.875%, 9/15/27 1
   
1,070,600
 
         
Metals/Mining: 2.5%
       
         
AngloGold Ashanti Holdings PLC
       
     
938,000
 
  6.500%, 4/15/40
   
1,062,135
 
         
Corp Nacional del Cobre de Chile
       
EUR
   
1,610,000
 
  2.250%, 7/9/24
   
1,966,313
 
         
Gold Fields Orogen
       
         
  Holdings BVI Ltd
       
     
900,000
 
  6.125%, 5/15/29
   
1,000,665
 
         
Nexa Resources SA
       
     
1,750,000
 
  5.375%, 5/4/27
   
1,875,755
 
         
Novelis Corp
       
     
1,314,000
 
  5.875%, 9/30/26 1
   
1,401,286
 
         
Southern Copper Corp
       
     
1,000,000
 
  3.875%, 4/23/25
   
1,052,422
 
         
Vale Overseas Ltd
       
     
1,450,000
 
  6.250%, 8/10/26
   
1,704,692
 
         
Vale SA
       
   
EUR 327,000
 
  3.750%, 1/10/23
   
398,929
 
               
10,462,197
 

The accompanying notes are an integral part of these financial statements.
21

Credit Opportunities Fund

 SCHEDULE OF INVESTMENTS at December 31, 2019 (Continued)

Principal
             
Amount
          
Value
 
CORPORATE BONDS: 86.8% (Continued)
     
Paper: 0.3%
     
       
Inversiones CMPC SA
     
     
1,200,000
 
  4.375%, 4/4/27
 
$
1,264,722
 
         
Quasi & Foreign Government: 0.8%
       
         
Indian Railway Finance Corp Ltd
       
     
1,450,000
 
  3.730%, 3/29/24
   
1,502,197
 
         
MDGH – GMTN BV
       
EUR
   
760,000
 
  3.625%, 5/30/23
   
958,704
 
         
SPARC EM SPC Panama
       
         
  Metro Line 2 SP
       
     
700,070
 
  N/A, 12/5/22 4
   
674,042
 
               
3,134,943
 
Restaurants: 1.9%
       
         
1011778 BC ULC /
       
         
  New Red Finance Inc
       
     
3,450,000
 
  5.000%, 10/15/25 1
   
3,569,318
 
         
KFC Holding Co/Pizza Hut Holdings
       
         
  LLC/Taco Bell of America LLC
       
     
4,045,000
 
  5.000%, 6/1/24 1
   
4,200,065
 
               
7,769,383
 
Services: 0.8%
       
         
ASGN Inc
       
     
775,000
 
  4.625%, 5/15/28 1
   
798,041
 
         
Ashtead Capital Inc
       
     
525,000
 
  4.000%, 5/1/28 1
   
531,562
 
     
525,000
 
  4.250%, 11/1/29 1
   
537,469
 
         
Korn Ferry
       
     
400,000
 
  4.625%, 12/15/27 1
   
403,000
 
         
United Rentals North America Inc
       
     
1,000,000
 
  3.875%, 11/15/27
   
1,022,800
 
               
3,292,872
 
Sovereign: 1.0%
       
         
Brazilian Government
       
         
  International Bond
       
     
1,750,000
 
  6.000%, 4/7/26
   
2,045,943
 
     
2,000,000
 
  5.000%, 1/27/45
   
2,084,470
 
               
4,130,413
 
Technology: 1.9%
       
         
Equinix Inc
       
     
1,800,000
 
  5.875%, 1/15/26
   
1,913,598
 
EUR
   
1,400,000
 
  2.875%, 2/1/26
   
1,632,262
 
     
3,150,000
 
  3.200%, 11/18/29
   
3,167,545
 
         
PayPal Holdings Inc
       
     
1,175,000
 
  2.650%, 10/1/26
   
1,193,296
 
               
7,906,701
 
Telecommunications: 9.8%
       
         
Altice Financing SA
       
     
1,000,000
 
  6.625%, 2/15/23 1
   
1,019,585
 
         
America Movil SAB de CV
       
     
1,400,000
 
  3.625%, 4/22/29
   
1,477,794
 
         
American Tower Corp
       
     
3,781,000
 
  3.800%, 8/15/29
   
4,050,380
 
         
AT&T Inc
       
     
3,192,000
 
  4.300%, 2/15/30
   
3,549,950
 
     
1,825,000
 
  4.500%, 5/15/35
   
2,036,795
 
         
CenturyLink Inc
       
     
525,000
 
  5.125%, 12/15/26 1
   
535,568
 
         
Crown Castle International Corp
       
     
3,250,000
 
  3.150%, 7/15/23
   
3,355,681
 
     
1,350,000
 
  3.650%, 9/1/27
   
1,429,935
 
     
1,400,000
 
  3.100%, 11/15/29
   
1,420,884
 
         
Level 3 Financing Inc
       
     
1,300,000
 
  5.375%, 1/15/24
   
1,324,915
 
     
3,700,000
 
  3.400%, 3/1/27 1
   
3,732,856
 
     
3,700,000
 
  3.875%, 11/15/29 1
   
3,734,595
 
         
Ooredoo International Finance Ltd
       
     
950,000
 
  5.000%, 10/19/25
   
1,061,819
 
         
SBA Communications Corp
       
     
3,800,000
 
  4.875%, 7/15/22
   
3,854,264
 
     
1,000,000
 
  4.875%, 9/1/24
   
1,040,415
 
         
Sprint Corp
       
     
1,850,000
 
  7.125%, 6/15/24
   
1,999,545
 
         
Telesat Canada / Telesat LLC
       
     
275,000
 
  6.500%, 10/15/27 1
   
287,196
 
         
T-Mobile USA Inc
       
     
2,000,000
 
  6.000%, 3/1/23
   
2,040,170
 
     
1,000,000
 
  6.500%, 1/15/24
   
1,031,260
 
     
1,000,000
 
  6.000%, 4/15/24
   
1,034,990
 
     
975,000
 
  6.375%, 3/1/25
   
1,009,530
 
               
41,028,127
 
Transportation Excluding Air/Rail: 0.7%
       
         
DP World Crescent Ltd
       
     
1,850,000
 
  4.848%, 9/26/28
   
2,032,687
 
         
DP World PLC
       
EUR
   
740,000
 
  2.375%, 9/25/26
   
894,526
 
               
2,927,213
 
Utilities: 2.5%
       
         
Calpine Corp
       
     
800,000
 
  4.500%, 2/15/28 1
   
808,096
 
     
1,425,000
 
  5.125%, 3/15/28 1
   
1,458,060
 
         
Clearway Energy Operating LLC
       
     
425,000
 
  4.750%, 3/15/28 1
   
431,375
 
         
Indiantown Cogeneration LP
       
     
152,852
 
  9.770%, 12/15/20
   
159,247
 
         
Israel Electric Corp Ltd
       
     
2,217,000
 
  4.250%, 8/14/28
   
2,420,022
 
         
NextEra Energy Operating
       
         
  Partners LP
       
     
1,925,000
 
  4.250%, 7/15/24 1
   
2,008,420
 

The accompanying notes are an integral part of these financial statements.
22

Credit Opportunities Fund

 SCHEDULE OF INVESTMENTS at December 31, 2019 (Continued)

Principal
             
Amount
          
Value
 
CORPORATE BONDS: 86.8% (Continued)
     
Utilities: 2.5% (Continued)
     
       
Saudi Electricity Global Sukuk Co 4
     
     
1,861,000
 
  4.723%, 9/27/28
 
$
2,078,504
 
         
TerraForm Power Operating LLC
       
     
1,250,000
 
  4.750%, 1/15/30 1
   
1,274,188
 
               
10,637,912
 
TOTAL CORPORATE BONDS
       
   (Cost $352,910,666)
   
362,295,734
 
         
CONVERTIBLE BONDS: 0.4%
       
Banking: 0.4%
       
         
Nykredit Realkredit A/S
       
EUR
   
1,375,000
 
  4.000% (5 Year Swap Rate
       
         
    EUR + 2.850%), 6/3/36 2,3
   
1,624,249
 
TOTAL CONVERTIBLE BONDS
       
   (Cost $1,597,721)
   
1,624,249
 
                   
Shares
                 
AFFILIATED MUTUAL FUNDS: 1.0%
       
     
400,000
 
Muzinich High Income
       
         
  Floating Rate Fund
   
3,952,000
 
TOTAL AFFILIATED MUTUAL FUNDS
       
   (Cost $4,000,000)
   
3,952,000
 
                   
Principal
                 
Amount
                 
U.S. TREASURY BILLS: 10.5%
       
         
United States Treasury Bill
       
     
12,000,000
 
  1.453%, 2/18/20
   
11,976,735
 
     
9,000,000
 
  1.486%, 1/9/20
   
8,997,548
 
     
8,000,000
 
  1.518%, 1/30/20
   
7,990,977
 
     
7,000,000
 
  1.532%, 2/27/20
   
6,983,612
 
     
8,000,000
 
  1.543%, 2/11/20
   
7,986,822
 
TOTAL U.S. TREASURY BILLS
       
   (Cost $43,933,106)
   
43,935,694
 
TOTAL INVESTMENTS IN SECURITIES: 98.7%
       
   (Cost $402,441,493)
   
411,807,677
 
Other Assets in Excess of Liabilities: 1.3%
   
5,517,274
 
TOTAL NET ASSETS: 100.0%
 
$
417,324,951
 

USD unless otherwise indicated.
CMT – United States Constant Maturity Treasury Note
EUR – Euro
GBP – Great Britain Pound
LIBOR – London Interbank Offered Rate
USD – United States Dollar
1
Security exempt from registration under Rule 144A of the Securities Act of 1933.  These securities may be resold in transactions exempt from registration, normally to qualified, institutional buyers.  At December 31, 2019 the value of these securities amounted to $109,186,592 or 26.2% of net assets.
2
Variable rate security; rate shown is the rate in effect on December 31, 2019.  An index may have a negative rate.  Interest rate may also be subject to a ceiling or floor.
3
Fixed-to-variable or fixed-to-float bond; rate shown is the rate in effect on December 31, 2019. An index may have a negative rate. Interest rate may also be subject to a ceiling or floor.
4
Zero coupon security.
5
Perpetual call date security. Date shown is next call date.


 SCHEDULE OF FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS at December 31, 2019

The Credit Opportunities Fund had the following forward foreign currency exchange contracts outstanding with the Bank of New York.
 
             
U.S. Dollar Value at
           
U.S. Dollar Value at
   
Unrealized Appreciation
 
Settlement Date
 
Currency to be Delivered
   
December 31, 2019
 
Currency to be Received
   
December 31, 2019
   
(Depreciation)
 
3/17/20
 
EUR
   
64,500,000
   
$
72,700,891
     
$
71,769,424
   
$
71,769,424
   
$
(931,467
)
3/17/20
 
GBP
   
3,200,000
     
4,247,745
     
$
4,208,480
     
4,208,480
     
(39,265
)
3/17/20
     
$
8,931,520
     
8,931,520
 
EUR
   
8,000,000
     
9,017,165
     
85,645
 
        


    $
85,880,156
      


   
$
84,995,069

  $ (885,087 )

The accompanying notes are an integral part of these financial statements.
23

U.S. High Yield Fund

 SCHEDULE OF INVESTMENTS at December 31, 2019

Principal
         
Amount
     
Value
 
CORPORATE BONDS: 87.4%
     
Aerospace/Defense: 0.9%
     
   
Bombardier Inc
     
$
125,000
 
  6.000%, 10/15/22 1
 
$
125,275
 
 
125,000
 
  7.500%, 12/1/24 1
   
131,589
 
     
TransDigm Inc
       
 
75,000
 
  6.500%, 7/15/24
   
77,508
 
 
75,000
 
  6.250%, 3/15/26 1
   
81,336
 
           
415,708
 
Airlines: 0.2%
       
     
VistaJet Malta Finance PLC /
       
     
  XO Management Holding Inc
       
 
100,000
 
  10.500%, 6/1/24 1
   
95,209
 
         
Automotive & Auto Parts: 0.9%
       
     
American Axle & Manufacturing Inc
       
 
215,000
 
  6.250%, 4/1/25
   
224,317
 
     
Panther BF Aggregator 2 LP /
       
     
  Panther Finance Co Inc
       
 
175,000
 
  8.500%, 5/15/27 1
   
186,261
 
           
410,578
 
Banking: 1.2%
       
     
Ally Financial Inc
       
 
75,000
 
  8.000%, 11/1/31
   
104,246
 
     
Credit Suisse Group AG
       
 
200,000
 
  7.500% (5 Year Swap Rate
       
     
  USD + 4.598%), 12/11/23 2,3,4
   
225,365
 
     
Deutsche Bank AG
       
 
200,000
 
  4.296% (5 Year Swap Rate
       
     
  USD + 2.248%), 5/24/28 2,4
   
191,696
 
           
521,307
 
Broadcasting: 3.4%
       
     
Diamond Sports Group LLC /
       
     
  Diamond Sports Finance Co
       
 
75,000
 
  5.375%, 8/15/26 1
   
76,007
 
 
50,000
 
  6.625%, 8/15/27 1
   
48,717
 
     
Gray Television Inc
       
 
225,000
 
  5.875%, 7/15/26 1
   
239,760
 
 
25,000
 
  7.000%, 5/15/27 1
   
27,827
 
     
iHeartCommunications Inc
       
 
175,000
 
  8.375%, 5/1/27
   
193,699
 
     
Netflix Inc
       
 
100,000
 
  4.875%, 4/15/28
   
104,123
 
 
175,000
 
  4.875%, 6/15/30 1
   
178,058
 
     
Nexstar Broadcasting Inc
       
 
175,000
 
  5.625%, 8/1/24 1
   
182,802
 
 
50,000
 
  5.625%, 7/15/27 1
   
52,783
 
     
Sinclair Television Group Inc
       
 
25,000
 
  5.875%, 3/15/26 1
   
26,353
 
 
50,000
 
  5.125%, 2/15/27 1
   
51,517
 
     
Sirius XM Radio Inc
       
 
150,000
 
  4.625%, 7/15/24 1
   
157,813
 
 
100,000
 
  5.375%, 4/15/25 1
   
103,536
 
     
Terrier Media Buyer Inc
       
 
75,000
 
  8.875%, 12/15/27 1
   
79,500
 
           
1,522,495
 
Building Materials: 1.8%
       
     
Beacon Roofing Supply Inc
       
 
150,000
 
  4.875%, 11/1/25 1
   
151,063
 
 
50,000
 
  4.500%, 11/15/26 1
   
51,562
 
     
New Enterprise Stone & Lime Co Inc
       
 
100,000
 
  6.250%, 3/15/26 1
   
105,035
 
     
Patrick Industries Inc
       
 
100,000
 
  7.500%, 10/15/27 1
   
106,785
 
     
SRS Distribution Inc
       
 
150,000
 
  8.250%, 7/1/26 1
   
155,302
 
     
Standard Industries Inc
       
 
125,000
 
  5.375%, 11/15/24 1
   
128,748
 
 
125,000
 
  5.000%, 2/15/27 1
   
130,603
 
           
829,098
 
Cable/Satellite TV: 7.5%
       
     
Altice Luxembourg SA
       
 
200,000
 
  10.500%, 5/15/27 1
   
228,380
 
     
CCO Holdings LLC /
       
     
  CCO Holdings Capital Corp
       
 
125,000
 
  5.250%, 9/30/22
   
126,629
 
 
125,000
 
  5.125%, 2/15/23
   
126,717
 
 
125,000
 
  5.750%, 9/1/23
   
127,708
 
 
250,000
 
  5.500%, 5/1/26 1
   
264,018
 
 
25,000
 
  5.875%, 5/1/27 1
   
26,496
 
 
150,000
 
  5.375%, 6/1/29 1
   
160,777
 
 
100,000
 
  4.750%, 3/1/30 1
   
101,988
 
     
CSC Holdings LLC
       
 
200,000
 
  5.375%, 7/15/23 1
   
205,417
 
 
425,000
 
  10.875%, 10/15/25 1
   
475,734
 
 
200,000
 
  7.500%, 4/1/28 1
   
226,465
 
 
200,000
 
  5.750%, 1/15/30 1
   
213,750
 
     
DISH DBS Corp
       
 
225,000
 
  5.875%, 11/15/24
   
230,391
 
     
Midcontinent Communications /
       
     
  Midcontinent Finance Corp
       
 
175,000
 
  5.375%, 8/15/27 1
   
185,561
 
     
UPC Holding BV
       
 
475,000
 
  5.500%, 1/15/28 1
   
482,410
 
     
UPCB Finance IV Ltd.
       
 
200,000
 
  5.375%, 1/15/25 1
   
206,017
 
           
3,388,458
 
Capital Goods: 3.3%
       
     
Amsted Industries Inc
       
 
100,000
 
  5.625%, 7/1/27 1
   
106,285
 
 
125,000
 
  4.625%, 5/15/30 1
   
126,216
 
     
Anixter Inc
       
 
75,000
 
  6.000%, 12/1/25
   
78,218
 
     
ATS Automation Tooling Systems Inc
       
 
50,000
 
  6.500%, 6/15/23 1
   
51,646
 

The accompanying notes are an integral part of these financial statements.
24

U.S. High Yield Fund

 SCHEDULE OF INVESTMENTS at December 31, 2019 (Continued)

Principal
         
Amount
     
Value
 
CORPORATE BONDS: 87.4% (Continued)
     
Capital Goods: 3.3% (Continued)
     
   
BCD Acquisition Inc
     
$
400,000
 
  9.625%, 9/15/23 1
 
$
412,996
 
     
Cloud Crane LLC
       
 
125,000
 
  10.125%, 8/1/24 1
   
131,511
 
     
Colfax Corp
       
 
25,000
 
  6.000%, 2/15/24 1
   
26,615
 
     
Griffon Corp
       
 
225,000
 
  5.250%, 3/1/22
   
226,405
 
     
JB Poindexter & Co Inc
       
 
75,000
 
  7.125%, 4/15/26 1
   
79,338
 
     
Manitowoc Co Inc
       
 
150,000
 
  9.000%, 4/1/26 1
   
157,481
 
     
Park-Ohio Industries Inc
       
 
75,000
 
  6.625%, 4/15/27
   
76,568
 
           
1,473,279
 
Chemicals: 2.1%
       
     
Blue Cube Spinco LLC
       
 
25,000
 
  10.000%, 10/15/25
   
27,696
 
     
Chemours Co
       
 
75,000
 
  5.375%, 5/15/27
   
66,564
 
     
Consolidated Energy Finance SA
       
 
150,000
 
  5.644% (3 Month LIBOR
       
     
  USD + 3.750%), 6/15/22 1,2
   
148,841
 
 
200,000
 
  6.875%, 6/15/25 1
   
191,498
 
     
CVR Partners LP /
       
     
  CVR Nitrogen Finance Corp
       
 
150,000
 
  9.250%, 6/15/23 1
   
157,000
 
     
Koppers Inc
       
 
100,000
 
  6.000%, 2/15/25 1
   
104,999
 
     
Kraton Polymers LLC /
       
     
  Kraton Polymers Capital Corp
       
 
75,000
 
  7.000%, 4/15/25 1
   
77,461
 
     
Neon Holdings Inc
       
 
50,000
 
  10.125%, 4/1/26 1
   
49,869
 
     
PQ Corp
       
 
100,000
 
  6.750%, 11/15/22 1
   
103,624
 
           
927,552
 
Consumer-Products: 0.5%
       
     
Energizer Holdings Inc
       
 
75,000
 
  5.500%, 6/15/25 1
   
77,969
 
 
25,000
 
  6.375%, 7/15/26 1
   
26,671
 
     
Mattel Inc
       
 
125,000
 
  5.875%, 12/15/27 1
   
131,950
 
           
236,590
 
Containers: 1.9%
       
     
Ardagh Packaging Finance PLC /
       
     
  Ardagh Holdings USA Inc
       
 
200,000
 
  5.250%, 8/15/27 1
   
210,874
 
     
Berry Global Inc
       
 
75,000
 
  5.500%, 5/15/22
   
76,031
 
 
75,000
 
  4.875%, 7/15/26 1
   
79,243
 
     
Crown Americas LLC /
       
     
  Crown Americas Capital Corp IV
       
 
125,000
 
  4.500%, 1/15/23
   
131,717
 
     
Graphic Packaging International LLC
       
 
75,000
 
  4.750%, 7/15/27 1
   
80,464
 
     
Mauser Packaging Solutions Holding Co
       
 
150,000
 
  5.500%, 4/15/24 1
   
154,888
 
     
Reynolds Group Issuer Inc /
       
     
  Reynolds Group Issuer LLC /
       
     
  Reynolds Group Issuer Lu
       
 
145,366
 
  5.750%, 10/15/20
   
145,730
 
           
878,947
 
Diversified Financial Services: 5.5%
       
     
Alliance Data Systems Corp
       
 
300,000
 
  4.750%, 12/15/24 1
   
300,000
 
     
DAE Funding LLC
       
 
125,000
 
  5.750%, 11/15/23 1
   
131,458
 
 
200,000
 
  5.000%, 8/1/24 1
   
210,486
 
     
Fly Leasing Ltd
       
 
200,000
 
  5.250%, 10/15/24
   
209,083
 
     
Icahn Enterprises LP /
       
     
  Icahn Enterprises Finance Corp
       
 
100,000
 
  6.250%, 2/1/22
   
102,078
 
 
75,000
 
  6.750%, 2/1/24
   
78,031
 
 
125,000
 
  6.250%, 5/15/26
   
133,359
 
 
150,000
 
  5.250%, 5/15/27 1
   
153,770
 
     
Ladder Capital Finance Holdings LLLP /
       
     
  Ladder Capital Finance Corp
       
 
100,000
 
  5.250%, 3/15/22  1
   
104,124
 
 
50,000
 
  5.250%, 10/1/25 1
   
52,021
 
     
LPL Holdings Inc
       
 
50,000
 
  5.750%, 9/15/25 1
   
52,437
 
 
75,000
 
  4.625%, 11/15/27 1
   
76,687
 
     
Nationstar Mortgage Holdings Inc
       
 
125,000
 
  8.125%, 7/15/23 1
   
132,576
 
     
Navient Corp
       
 
100,000
 
  5.875%, 3/25/21
   
103,525
 
     
Park AeroSPAce Holdings Ltd
       
 
75,000
 
  4.500%, 3/15/23 1
   
78,744
 
 
150,000
 
  5.500%, 2/15/24 1
   
164,874
 
     
Springleaf Finance Corp
       
 
125,000
 
  5.625%, 3/15/23
   
135,000
 
 
50,000
 
  6.125%, 3/15/24
   
54,874
 
 
50,000
 
  6.875%, 3/15/25
   
56,999
 
 
75,000
 
  7.125%, 3/15/26
   
86,856
 
 
50,000
 
  5.375%, 11/15/29
   
52,283
 
           
2,469,265
 
Diversified Media: 2.2%
       
     
Belo Corp
       
 
125,000
 
  7.750%, 6/1/27
   
144,778
 
 
50,000