Average Annual Total Returns
|
|||||
1 Year
|
5 Year
|
10 Year
|
|||
Reynolds Blue Chip Growth Fund
|
28.88%
|
10.63%
|
14.16%
|
||
The Standard & Poor’s 500 Index(2)
|
17.91%
|
13.95%
|
11.97%
|
(1)
|
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. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance data current to the most recent month-end may be obtained by visiting www.reynoldsfunds.com or by calling 1-800-773-9665.
|
|
(2)
|
The Standard & Poor’s 500 Index (“S&P”) is a capitalization-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange. Returns shown include the reinvestment of all dividends. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than the original cost.
|
(1)
|
The Global Industry Classification Standard (“GICS®”) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC. GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
|
(2)
|
For presentation purposes within the Fund’s shareholder letter, the Fund has grouped some of the industry categories by sector. For purposes of categorizing securities for compliance with section 8(b)(1) of the Investment Company Act of 1940, as amended, the Fund uses more specific industry classifications for financial reporting within its Schedule of Investments.
|
(1)
|
Long-term borrowing costs of corporations are lower resulting in higher business confidence and profits.
|
|
(2)
|
Long-term borrowing costs of individuals are lower which increases consumer confidence and spending.
|
|
(3)
|
A company’s stock is usually valued by placing a present value on that company’s future stream of earnings and dividends. The present value is higher when interest and inflation rates are low.
|
AVERAGE ANNUAL TOTAL RETURN
|
|||
1-YEAR
|
5-YEAR
|
10-YEAR
|
|
Reynolds Blue Chip Growth Fund
|
28.88%
|
10.63%
|
14.16%
|
S&P 500 Index
|
17.91%
|
13.95%
|
11.97%
|
(1)
|
The S&P 500 is the Standard & Poor’s Composite Index of 500 stocks, a widely recognized unmanaged index of common stock prices and includes the reinvestment of all dividends. Investors cannot invest directly in an index or benchmark.
|
Annualized Net
|
Beginning
|
Ending
|
Expenses Paid
|
|
Expense Ratio
|
Account Value
|
Account Value
|
During Period
|
|
9/30/18
|
4/1/18
|
9/30/18
|
4/1/18-9/30/18(1)
|
|
Actual Expenses(2)
|
1.93%
|
$1,000.00
|
$1,167.20
|
$10.49
|
Hypothetical Example for Comparison Purposes
|
||||
(5% return before expenses)
|
1.93%
|
$1,000.00
|
$1,015.42
|
$ 9.75
|
(1)
|
Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
|
(2)
|
Based on the actual returns of 16.72% for the six month-period ended September 30, 2018.
|
ASSETS:
|
||||
Investments in securities, at value (cost $54,674,102)
|
$
|
77,691,299
|
||
Receivable from investments sold
|
4,660,145
|
|||
Prepaid expenses
|
40,912
|
|||
Dividends and interest receivable
|
18,286
|
|||
Receivable from shareholders for purchases
|
5,877
|
|||
Total assets
|
82,416,519
|
|||
LIABILITIES:
|
||||
Payable for investments purchased
|
2,978,652
|
|||
Payable to shareholders for redemptions
|
78,408
|
|||
Payable to adviser for management fees
|
64,688
|
|||
Payable for distribution fees
|
12,474
|
|||
Other liabilities
|
88,229
|
|||
Total liabilities
|
3,222,451
|
|||
NET ASSETS
|
$
|
79,194,068
|
||
NET ASSETS CONSIST OF:
|
||||
Capital Stock, $0.01 par value; 40,000,000 shares authorized; 1,158,717 shares outstanding
|
$
|
46,985,120
|
||
Distributable earnings
|
32,208,948
|
|||
Net assets
|
$
|
79,194,068
|
||
CALCULATION OF NET ASSET VALUE PER SHARE:
|
||||
Net asset value, offering and redemption price per share ($79,194,068 ÷ 1,158,717 shares outstanding)
|
$
|
68.35
|
Shares
|
Value
|
|||||||
LONG-TERM INVESTMENTS — 96.8% (a)
|
||||||||
COMMON STOCKS — 96.5% (a)
|
||||||||
Aerospace & Defense — 0.7%
|
||||||||
Axon Enterprise, Inc.*
|
1,700
|
$
|
116,331
|
|||||
The Boeing Company
|
350
|
130,165
|
||||||
General Dynamics Corporation
|
200
|
40,944
|
||||||
Lockheed Martin Corporation
|
150
|
51,894
|
||||||
Teledyne Technologies, Inc.*
|
500
|
123,340
|
||||||
United Technologies Corporation
|
900
|
125,829
|
||||||
588,503
|
||||||||
Air Freight & Logistics — 0.5%
|
||||||||
C.H. Robinson Worldwide, Inc.
|
200
|
19,584
|
||||||
Expeditors International of Washington, Inc.
|
1,800
|
132,354
|
||||||
FedEx Corporation
|
600
|
144,474
|
||||||
United Parcel Service, Inc., Class B
|
600
|
70,050
|
||||||
366,462
|
||||||||
Airlines — 0.7%
|
||||||||
Alaska Air Group, Inc.
|
700
|
48,202
|
||||||
Allegiant Travel Company
|
200
|
25,360
|
||||||
Delta Air Lines, Inc.
|
2,800
|
161,924
|
||||||
Southwest Airlines Company
|
3,000
|
187,350
|
||||||
Spirit Airlines, Inc.*
|
1,400
|
65,758
|
||||||
United Continental Holdings, Inc.*
|
500
|
44,530
|
||||||
533,124
|
Shares
|
Value
|
|||||||
LONG-TERM INVESTMENTS — 96.8% (a) (Continued)
|
||||||||
COMMON STOCKS — 96.5% (a) (Continued)
|
||||||||
Automobiles — 0.1%
|
||||||||
Tesla, Inc.*
|
200
|
$
|
52,954
|
|||||
Banks — 0.1%
|
||||||||
Fifth Third Bancorp
|
1,400
|
39,088
|
||||||
Beverages — 0.2%
|
||||||||
Constellation Brands, Inc., Class A
|
200
|
43,124
|
||||||
PepsiCo, Inc.
|
1,100
|
122,980
|
||||||
166,104
|
||||||||
Biotechnology — 3.8%
|
||||||||
AbbVie, Inc.
|
300
|
28,374
|
||||||
ACADIA Pharmaceuticals, Inc.*
|
1,800
|
37,368
|
||||||
Alexion Pharmaceuticals, Inc.*
|
600
|
83,406
|
||||||
Amarin Corp plc — ADR*
|
5,000
|
81,350
|
||||||
Amgen, Inc.
|
800
|
165,832
|
||||||
BeiGene, Ltd. — ADR*
|
1,800
|
309,996
|
||||||
Bluebird Bio, Inc.*
|
300
|
43,800
|
||||||
Celgene Corporation*
|
2,900
|
259,521
|
||||||
Exact Sciences Corporation*
|
500
|
39,460
|
||||||
Gilead Sciences, Inc.
|
1,000
|
77,210
|
||||||
Intercept Pharmaceuticals, Inc.*
|
2,700
|
341,172
|
||||||
Ligand Pharmaceuticals, Inc.*
|
800
|
219,592
|
||||||
Loxo Oncology, Inc.*
|
500
|
85,415
|
||||||
Neurocrine Biosciences, Inc.*
|
1,400
|
172,130
|
||||||
PTC Therapeutics, Inc.*
|
1,900
|
89,300
|
||||||
Sarepta Therapeutics, Inc.*
|
1,500
|
242,265
|
||||||
Seattle Genetics, Inc.*
|
4,000
|
308,480
|
||||||
United Therapeutics Corporation*
|
400
|
51,152
|
||||||
Vertex Pharmaceuticals, Inc.*
|
1,900
|
366,206
|
||||||
3,002,029
|
||||||||
Building Products — 0.1%
|
||||||||
Armstrong World Industries, Inc.*
|
700
|
48,720
|
||||||
Capital Markets — 0.6%
|
||||||||
The Blackstone Group L.P.
|
7,800
|
297,024
|
||||||
CME Group, Inc.
|
300
|
51,063
|
||||||
FactSet Research Systems, Inc.
|
300
|
67,113
|
||||||
T. Rowe Price Group, Inc.
|
400
|
43,672
|
||||||
Virtus Investment Partners, Inc.
|
400
|
45,500
|
||||||
504,372
|
||||||||
Chemicals — 0.2%
|
||||||||
Balchem Corporation
|
600
|
67,254
|
||||||
CF Industries Holdings, Inc.
|
800
|
43,552
|
||||||
International Flavors & Fragrances, Inc.
|
300
|
41,736
|
||||||
The Scotts Miracle-Gro Company
|
400
|
31,492
|
||||||
184,034
|
||||||||
Commercial Services & Supplies — 0.4%
|
||||||||
Copart, Inc.*
|
2,000
|
103,060
|
||||||
Waste Connections, Inc.
|
2,900
|
231,333
|
||||||
334,393
|
||||||||
Communications Equipment — 3.3%
|
||||||||
Ciena Corporation*
|
1,400
|
43,736
|
||||||
Cisco Systems, Inc.
|
8,000
|
389,200
|
||||||
F5 Networks, Inc.*
|
5,600
|
1,116,752
|
||||||
Motorola Solutions, Inc.
|
2,800
|
364,392
|
||||||
Palo Alto Networks, Inc.*
|
2,100
|
473,046
|
||||||
Ubiquiti Networks, Inc.
|
2,200
|
217,492
|
||||||
2,604,618
|
||||||||
Construction & Engineering — 0.0%
|
||||||||
Jacobs Engineering Group, Inc.
|
400
|
30,600
|
||||||
Consumer Finance — 0.4%
|
||||||||
American Express Company
|
2,600
|
276,874
|
||||||
Discover Financial Services
|
500
|
38,225
|
||||||
315,099
|
||||||||
Consumer Services — Diversified — 0.2%
|
||||||||
New Oriental Education &
|
||||||||
Technology Group, Inc. — SP-ADR*
|
1,000
|
74,010
|
||||||
TAL Education Group — ADR*
|
1,400
|
35,994
|
||||||
Weight Watchers International, Inc.*
|
500
|
35,995
|
||||||
145,999
|
||||||||
Electronic Equipment,
|
||||||||
Instruments & Components — 0.7%
|
||||||||
Cognex Corporation
|
4,100
|
228,862
|
||||||
Zebra Technologies Corporation, Class A*
|
1,700
|
300,611
|
||||||
529,473
|
||||||||
Energy Equipment & Services — 0.3%
|
||||||||
Core Laboratories N.V.
|
1,100
|
127,413
|
||||||
Diamond Offshore Drilling, Inc.*
|
1,200
|
24,000
|
||||||
Helmerich & Payne, Inc.
|
600
|
41,262
|
||||||
Transocean, Ltd.*
|
1,800
|
25,110
|
||||||
217,785
|
||||||||
Entertainment — 3.7%
|
||||||||
Activision Blizzard, Inc.
|
1,500
|
124,785
|
||||||
Electronic Arts, Inc.*
|
1,300
|
156,637
|
||||||
iQIYI, Inc. — ADR*
|
2,300
|
62,261
|
||||||
Live Nation Entertainment, Inc.*
|
3,900
|
212,433
|
||||||
NetEase, Inc. — ADR
|
200
|
45,650
|
||||||
Netflix, Inc.*
|
5,650
|
2,113,835
|
||||||
Spotify Technology S.A.*
|
400
|
72,332
|
||||||
Take-Two Interactive Software, Inc.*
|
300
|
41,397
|
||||||
The Walt Disney Company
|
800
|
93,552
|
||||||
2,922,882
|
Shares
|
Value
|
|||||||
LONG-TERM INVESTMENTS — 96.8% (a) (Continued)
|
||||||||
COMMON STOCKS — 96.5% (a) (Continued)
|
||||||||
Financial Services — Diversified — 0.1%
|
||||||||
Berkshire Hathaway, Inc., Class B*
|
200
|
$
|
42,822
|
|||||
Food & Staples Retailing — 3.7%
|
||||||||
Casey’s General Stores, Inc.
|
600
|
77,466
|
||||||
Costco Wholesale Corporation
|
10,500
|
2,466,240
|
||||||
PriceSmart, Inc.
|
900
|
72,855
|
||||||
Walgreens Boots Alliance, Inc.
|
500
|
36,450
|
||||||
Walmart, Inc.
|
2,600
|
244,166
|
||||||
2,897,177
|
||||||||
Food Products — 0.3%
|
||||||||
The Hershey Company
|
800
|
81,600
|
||||||
Hormel Foods Corporation
|
900
|
35,460
|
||||||
J & J Snack Foods Corporation
|
300
|
45,267
|
||||||
McCormick & Company, Inc.,
|
||||||||
Non Voting Shares
|
300
|
39,525
|
||||||
The JM Smucker Company
|
400
|
41,044
|
||||||
242,896
|
||||||||
Health Care Equipment & Supplies — 3.2%
|
||||||||
Abbott Laboratories
|
5,000
|
366,800
|
||||||
ABIOMED, Inc.*
|
100
|
44,975
|
||||||
Align Technology, Inc.*
|
500
|
195,610
|
||||||
Baxter International, Inc.
|
600
|
46,254
|
||||||
Boston Scientific Corporation*
|
3,500
|
134,750
|
||||||
DexCom, Inc.*
|
300
|
42,912
|
||||||
Edwards Lifesciences Corporation*
|
2,900
|
504,890
|
||||||
IDEXX Laboratories, Inc.*
|
700
|
174,762
|
||||||
Intuitive Surgical, Inc.*
|
900
|
516,600
|
||||||
Koninklijke Philips N.V.
|
1,800
|
81,918
|
||||||
Medtronic plc
|
2,900
|
285,273
|
||||||
Novocure Ltd.*
|
700
|
36,680
|
||||||
Tandem Diabetes Care, Inc.*
|
400
|
17,136
|
||||||
Varian Medical Systems, Inc.*
|
600
|
67,158
|
||||||
2,515,718
|
||||||||
Health Care Providers & Services — 1.9%
|
||||||||
Addus HomeCare Corporation*
|
600
|
42,090
|
||||||
Amedisys, Inc.*
|
3,100
|
387,376
|
||||||
Anthem, Inc.
|
400
|
109,620
|
||||||
Centene Corporation*
|
1,373
|
198,783
|
||||||
DaVita, Inc.*
|
300
|
21,489
|
||||||
Encompass Health Corporation
|
2,100
|
163,695
|
||||||
Express Scripts Holding Company*
|
2,100
|
199,521
|
||||||
HCA Healthcare, Inc.
|
300
|
41,736
|
||||||
Henry Schein, Inc.*
|
1,400
|
119,042
|
||||||
Humana, Inc.
|
200
|
67,704
|
||||||
Laboratory Corporation of America Holdings*
|
400
|
69,472
|
||||||
UnitedHealth Group, Inc.
|
300
|
79,812
|
||||||
1,500,340
|
||||||||
Health Care Technology — 0.8%
|
||||||||
athenahealth, Inc.*
|
200
|
26,720
|
||||||
Cerner Corporation*
|
1,100
|
70,851
|
||||||
Teladoc Health, Inc.*
|
3,100
|
267,685
|
||||||
Veeva Systems, Inc., Class A*
|
2,400
|
261,288
|
||||||
626,544
|
||||||||
Hotels, Restaurants & Leisure — 3.0%
|
||||||||
BJ’s Restaurants, Inc.
|
3,500
|
252,700
|
||||||
Carnival Corporation
|
700
|
44,639
|
||||||
Darden Restaurants, Inc.
|
2,000
|
222,380
|
||||||
Dine Brands Global, Inc.
|
900
|
73,179
|
||||||
Hilton Worldwide Holdings, Inc.
|
1,000
|
80,780
|
||||||
Marriott International, Inc., Class A
|
3,380
|
446,261
|
||||||
Marriott Vacations Worldwide Corporation
|
300
|
33,525
|
||||||
MGM Resorts International
|
1,500
|
41,865
|
||||||
Norwegian Cruise Line Holdings, Ltd.*
|
900
|
51,687
|
||||||
Papa John’s International, Inc.
|
3,000
|
153,840
|
||||||
Planet Fitness, Inc., Class A*
|
800
|
43,224
|
||||||
Royal Caribbean Cruises, Ltd.
|
300
|
38,982
|
||||||
Shake Shack, Inc., Class A*
|
1,300
|
81,913
|
||||||
Starbucks Corporation
|
5,600
|
318,304
|
||||||
Yum! Brands, Inc.
|
5,700
|
518,187
|
||||||
2,401,466
|
||||||||
Household Durables — 0.5%
|
||||||||
iRobot Corporation*
|
700
|
76,944
|
||||||
Roku, Inc.*
|
3,200
|
233,696
|
||||||
Sony Corporation — SP-ADR
|
1,900
|
115,235
|
||||||
425,875
|
||||||||
Household Products — 0.4%
|
||||||||
The Clorox Company
|
900
|
135,369
|
||||||
Kimberly-Clark Corporation
|
700
|
79,548
|
||||||
The Procter & Gamble Company
|
1,000
|
83,230
|
||||||
298,147
|
||||||||
Industrial Conglomerates — 0.2%
|
||||||||
3M Company
|
200
|
42,142
|
||||||
Honeywell International, Inc.
|
800
|
133,120
|
||||||
175,262
|
||||||||
Insurance — 0.2%
|
||||||||
Aon plc
|
900
|
138,402
|
||||||
Assurant, Inc.
|
400
|
43,180
|
||||||
181,582
|
Shares
|
Value
|
|||||||
LONG-TERM INVESTMENTS — 96.8% (a) (Continued)
|
||||||||
COMMON STOCKS — 96.5% (a) (Continued)
|
||||||||
Interactive Media & Services — 5.5%
|
||||||||
Alphabet, Inc., Class A*
|
1,500
|
$
|
1,810,620
|
|||||
Alphabet, Inc., Class C*
|
1,000
|
1,193,470
|
||||||
Facebook, Inc., Class A*
|
3,400
|
559,164
|
||||||
IAC/InterActiveCorp*
|
200
|
43,344
|
||||||
Match Group, Inc.*
|
2,200
|
127,402
|
||||||
SINA Corporation*
|
500
|
34,740
|
||||||
TripAdvisor, Inc.*
|
5,500
|
280,885
|
||||||
Twitter, Inc.*
|
1,200
|
34,152
|
||||||
YY, Inc. — ADR*
|
500
|
37,460
|
||||||
Zillow Group, Inc., Class C*
|
4,900
|
216,825
|
||||||
4,338,062
|
||||||||
Internet & Direct Marketing Retail — 16.8%
|
||||||||
Amazon.com, Inc.*
|
5,350
|
10,716,050
|
||||||
Booking Holdings, Inc.*
|
300
|
595,200
|
||||||
Ctrip.com International, Ltd. — ADR*
|
1,800
|
66,906
|
||||||
Etsy, Inc.*
|
4,900
|
251,762
|
||||||
Expedia Group, Inc.
|
4,905
|
640,004
|
||||||
GrubHub, Inc.*
|
2,000
|
277,240
|
||||||
JD.com, Inc. — ADR*
|
2,400
|
62,616
|
||||||
Overstock.com, Inc.*
|
2,400
|
66,480
|
||||||
Stitch Fix, Inc., Class A*
|
5,200
|
227,604
|
||||||
Wayfair, Inc., Class A*
|
2,800
|
413,476
|
||||||
13,317,338
|
||||||||
IT Services — 10.0%
|
||||||||
21Vianet Group, Inc. — ADR*
|
700
|
7,070
|
||||||
Automatic Data Processing, Inc.
|
2,900
|
436,914
|
||||||
DXC Technology Company
|
2,600
|
243,152
|
||||||
EPAM Systems, Inc.*
|
200
|
27,540
|
||||||
Euronet Worldwide, Inc.*
|
800
|
80,176
|
||||||
Fiserv, Inc.*
|
2,300
|
189,474
|
||||||
Gartner, Inc.*
|
1,900
|
301,150
|
||||||
Global Payments, Inc.
|
2,000
|
254,800
|
||||||
Jack Henry & Associates, Inc.
|
1,700
|
272,136
|
||||||
ManTech International Corporation, Class A
|
900
|
56,970
|
||||||
MasterCard, Inc., Class A
|
4,200
|
934,962
|
||||||
Paychex, Inc.
|
3,800
|
279,870
|
||||||
PayPal Holdings, Inc.*
|
11,900
|
1,045,296
|
||||||
Perspecta, Inc.
|
450
|
11,574
|
||||||
Shopify, Inc., Class A*
|
600
|
98,676
|
||||||
Square, Inc., Class A*
|
12,600
|
1,247,526
|
||||||
Twilio, Inc., Class A*
|
4,700
|
405,516
|
||||||
VeriSign, Inc.*
|
5,800
|
928,696
|
||||||
Visa, Inc., Class A
|
5,200
|
780,468
|
||||||
WEX, Inc.*
|
400
|
80,304
|
||||||
Wix.com, Ltd.*
|
900
|
107,730
|
||||||
Worldpay, Inc., Class A*
|
1,600
|
162,032
|
||||||
7,952,032
|
||||||||
Leisure Products — 0.0%
|
||||||||
Hasbro, Inc.
|
400
|
42,048
|
||||||
Life Sciences Tools & Services — 1.2%
|
||||||||
Bio-Techne Corporation
|
1,200
|
244,932
|
||||||
ICON plc*
|
1,400
|
215,250
|
||||||
Illumina, Inc.*
|
400
|
146,824
|
||||||
QIAGEN NV*
|
800
|
30,304
|
||||||
Thermo Fisher Scientific, Inc.
|
1,200
|
292,896
|
||||||
930,206
|
||||||||
Machinery — 0.5%
|
||||||||
Allison Transmission Holdings, Inc.
|
500
|
26,005
|
||||||
Flowserve Corporation
|
1,700
|
92,973
|
||||||
Ingersoll-Rand plc
|
1,200
|
122,760
|
||||||
PACCAR, Inc.
|
500
|
34,095
|
||||||
Parker-Hannifin Corporation
|
200
|
36,786
|
||||||
The Toro Company
|
1,800
|
107,946
|
||||||
420,565
|
||||||||
Media — 0.4%
|
||||||||
Comcast Corporation, Class A
|
2,100
|
74,361
|
||||||
Discovery, Inc., Class A*
|
600
|
19,200
|
||||||
Sirius XM Holdings, Inc.
|
29,400
|
185,808
|
||||||
279,369
|
||||||||
Multiline Retail — 0.7%
|
||||||||
Dillard’s, Inc., Class A
|
1,200
|
91,608
|
||||||
Dollar Tree, Inc.*
|
300
|
24,465
|
||||||
Kohl’s Corporation
|
600
|
44,730
|
||||||
Nordstrom, Inc.
|
3,100
|
185,411
|
||||||
Target Corporation
|
2,700
|
238,167
|
||||||
584,381
|
||||||||
Multi-Utilities — 0.1%
|
||||||||
Dominion Energy, Inc.
|
600
|
42,168
|
||||||
Oil, Gas & Consumable Fuels — 0.7%
|
||||||||
Anadarko Petroleum Corporation
|
600
|
40,446
|
||||||
Apache Corporation
|
700
|
33,369
|
||||||
Cameco Corporation
|
1,000
|
11,400
|
||||||
Carrizo Oil & Gas, Inc.*
|
1,400
|
35,280
|
||||||
CNOOC, Ltd. — SP-ADR
|
200
|
39,508
|
||||||
ConocoPhillips
|
600
|
46,440
|
||||||
Devon Energy Corporation
|
800
|
31,952
|
||||||
EOG Resources, Inc.
|
700
|
89,299
|
||||||
Hess Corporation
|
1,100
|
78,738
|
||||||
Noble Energy, Inc.
|
1,000
|
31,190
|
||||||
Pioneer Natural Resources Company
|
700
|
121,933
|
||||||
559,555
|
Shares
|
Value
|
|||||||
LONG-TERM INVESTMENTS — 96.8% (a) (Continued)
|
||||||||
COMMON STOCKS — 96.5% (a) (Continued)
|
||||||||
Personal Products — 0.0%
|
||||||||
Herbalife Nutrition, Ltd.*
|
600
|
$
|
32,730
|
|||||
Pharmaceuticals — 1.7%
|
||||||||
Canopy Growth Corporation*
|
2,600
|
126,464
|
||||||
Cronos Group, Inc.*
|
2,400
|
26,688
|
||||||
Eli Lilly and Company
|
3,300
|
354,123
|
||||||
Endocyte, Inc.*
|
600
|
10,656
|
||||||
GW Pharmaceuticals plc — ADR*
|
300
|
51,822
|
||||||
Jazz Pharmaceuticals plc*
|
200
|
33,626
|
||||||
Johnson & Johnson
|
1,200
|
165,804
|
||||||
Merck & Company, Inc.
|
2,000
|
141,880
|
||||||
Nektar Therapeutics*
|
500
|
30,480
|
||||||
Pfizer, Inc.
|
3,300
|
145,431
|
||||||
Shire plc — ADR
|
400
|
72,508
|
||||||
Tilray, Inc., Class 2*
|
1,450
|
208,249
|
||||||
1,367,731
|
||||||||
Professional Services — 0.6%
|
||||||||
Verisk Analytics, Inc.*
|
3,600
|
433,980
|
||||||
REITs — 0.3%
|
||||||||
Boston Properties, Inc.
|
300
|
36,927
|
||||||
Extra Space Storage, Inc.
|
200
|
17,328
|
||||||
Simon Property Group, Inc.
|
600
|
106,050
|
||||||
STORE Capital Corporation
|
1,400
|
38,906
|
||||||
Uniti Group, Inc.
|
1,500
|
30,225
|
||||||
229,436
|
||||||||
Road & Rail — 0.2%
|
||||||||
CSX Corporation
|
500
|
37,025
|
||||||
Landstar System, Inc.
|
500
|
61,000
|
||||||
Old Dominion Freight Line, Inc.
|
300
|
48,378
|
||||||
146,403
|
||||||||
Semiconductors & Semiconductor
|
||||||||
Equipment — 3.9%
|
||||||||
Advanced Micro Devices, Inc.*
|
27,900
|
861,831
|
||||||
Analog Devices, Inc.
|
557
|
51,500
|
||||||
ASML Holding N.V.
|
200
|
37,604
|
||||||
Brooks Automation, Inc.
|
900
|
31,527
|
||||||
Integrated Device Technology, Inc.*
|
1,900
|
89,319
|
||||||
Maxim Integrated Products, Inc.
|
800
|
45,112
|
||||||
Microchip Technology, Inc.
|
1,000
|
78,910
|
||||||
NVIDIA Corporation
|
6,350
|
1,784,477
|
||||||
Universal Display Corporation
|
900
|
106,110
|
||||||
3,086,390
|
||||||||
Software — 14.3%
|
||||||||
Adobe Systems, Inc.*
|
4,500
|
1,214,775
|
||||||
Altair Engineering, Inc., Class A*
|
600
|
26,070
|
||||||
ANSYS, Inc.*
|
500
|
93,340
|
||||||
Aspen Technology, Inc.*
|
3,700
|
421,467
|
||||||
Autodesk, Inc.*
|
2,100
|
327,831
|
||||||
Bottomline Technologies (DE), Inc.*
|
2,800
|
203,588
|
||||||
Box, Inc., Class A*
|
2,500
|
59,775
|
||||||
Check Point Software Technologies, Ltd.*
|
800
|
94,136
|
||||||
Citrix Systems, Inc.*
|
2,400
|
266,784
|
||||||
CyberArk Software, Ltd.*
|
1,100
|
87,824
|
||||||
DocuSign, Inc.*
|
1,200
|
63,084
|
||||||
Dropbox, Inc., Class A*
|
1,600
|
42,928
|
||||||
Fair Isaac Corporation*
|
1,200
|
274,260
|
||||||
Fortinet, Inc.*
|
14,700
|
1,356,369
|
||||||
Intuit, Inc.
|
1,400
|
318,360
|
||||||
Microsoft Corporation
|
8,500
|
972,145
|
||||||
NICE, Ltd. — SP-ADR*
|
700
|
80,129
|
||||||
Paycom Software, Inc.*
|
4,500
|
699,345
|
||||||
Paylocity Holding Corporation*
|
2,300
|
184,736
|
||||||
PTC, Inc.*
|
1,100
|
116,809
|
||||||
Red Hat, Inc.*
|
600
|
81,768
|
||||||
Salesforce.com, Inc.*
|
12,700
|
2,019,681
|
||||||
ServiceNow, Inc.*
|
400
|
78,252
|
||||||
Splunk, Inc.*
|
2,100
|
253,911
|
||||||
Tableau Software, Inc., Class A*
|
800
|
89,392
|
||||||
The Trade Desk, Inc., Class A*
|
2,000
|
301,820
|
||||||
The Ultimate Software Group, Inc.*
|
1,450
|
467,176
|
||||||
Varonis Systems, Inc.*
|
500
|
36,625
|
||||||
VMware, Inc., Class A*
|
4,500
|
702,270
|
||||||
Workday, Inc., Class A*
|
2,600
|
379,548
|
||||||
Zscaler, Inc.*
|
600
|
24,468
|
||||||
11,338,666
|
||||||||
Specialty Retail — 4.5%
|
||||||||
AutoZone, Inc.*
|
200
|
155,140
|
||||||
Best Buy Company, Inc.
|
6,600
|
523,776
|
||||||
CarMax, Inc.*
|
1,000
|
74,670
|
||||||
Five Below, Inc.*
|
3,400
|
442,204
|
||||||
Lowe’s Companies, Inc.
|
6,700
|
769,294
|
||||||
O’Reilly Automotive, Inc.*
|
200
|
69,464
|
||||||
Ross Stores, Inc.
|
5,400
|
535,140
|
||||||
The Home Depot, Inc.
|
3,500
|
725,025
|
||||||
The TJX Companies, Inc.
|
1,300
|
145,626
|
||||||
Tiffany & Company
|
300
|
38,691
|
||||||
Ulta Beauty, Inc.*
|
300
|
84,636
|
||||||
3,563,666
|
||||||||
Technology Hardware, Storage
|
||||||||
& Peripherals — 3.7%
|
||||||||
Apple, Inc.
|
8,600
|
1,941,364
|
||||||
HP, Inc.
|
2,900
|
74,733
|
Shares
|
Value
|
|||||||
LONG-TERM INVESTMENTS — 96.8% (a) (Continued)
|
||||||||
COMMON STOCKS — 96.5% (a) (Continued)
|
||||||||
Technology Hardware, Storage
|
||||||||
& Peripherals — 3.7% (Continued)
|
||||||||
NetApp, Inc.
|
9,900
|
$
|
850,311
|
|||||
Seagate Technology plc
|
900
|
42,615
|
||||||
2,909,023
|
||||||||
Telecommunication Services —
|
||||||||
Diversified — 0.1%
|
||||||||
Verizon Communications, Inc.
|
1,600
|
85,424
|
||||||
Textiles, Apparel & Luxury Goods — 0.9%
|
||||||||
Deckers Outdoor Corporation*
|
400
|
47,432
|
||||||
Fossil Group, Inc.*
|
2,700
|
62,856
|
||||||
Hanesbrands, Inc.
|
1,500
|
27,645
|
||||||
lululemon Athletica, Inc.*
|
2,000
|
324,980
|
||||||
NIKE, Inc., Class B
|
2,000
|
169,440
|
||||||
Ralph Lauren Corporation
|
300
|
41,265
|
||||||
673,618
|
||||||||
Trading Companies & Distributors — 0.1%
|
||||||||
HD Supply Holdings, Inc.*
|
1,000
|
42,790
|
||||||
United Rentals, Inc.*
|
400
|
65,440
|
||||||
108,230
|
||||||||
Wireless Telecommunication Services — 0.0%
|
||||||||
T-Mobile US, Inc.*
|
600
|
42,108
|
||||||
TOTAL COMMON STOCKS
|
||||||||
(cost $53,335,593)
|
76,377,197
|
|||||||
CLOSED-END FUNDS — 0.3% (a)
|
||||||||
Altaba, Inc.*
|
3,700
|
252,044
|
||||||
TOTAL CLOSED-END FUNDS
|
||||||||
(cost $276,451)
|
252,044
|
|||||||
SHORT-TERM INVESTMENTS — 1.3% (a)
|
||||||||
MONEY MARKET FUNDS — 1.3%
|
||||||||
First American Government Obligations Fund,
|
||||||||
Institutional Share Class, 1.98%^
|
1,062,058
|
1,062,058
|
||||||
TOTAL MONEY MARKET FUNDS
|
||||||||
(cost $1,062,058)
|
1,062,058
|
|||||||
TOTAL INVESTMENTS — 98.1%
|
||||||||
(cost $54,674,102)
|
77,691,299
|
|||||||
Cash and receivables, less liabilities — 1.9% (a)
|
1,502,769
|
|||||||
TOTAL NET ASSETS — 100.0%
|
$
|
79,194,068
|
^
|
Rate shown in the 7-day effective yield September 30, 2018.
|
|
*
|
Non-income producing security.
|
|
(a)
|
Percentages for the various classifications relate to net assets.
|
INVESTMENT INCOME:
|
||||
Dividends (net of foreign withholding tax of $1,252)
|
$
|
417,454
|
||
Interest
|
23,623
|
|||
Total investment income
|
441,077
|
|||
EXPENSES:
|
||||
Management fees
|
739,234
|
|||
Distribution fees
|
104,287
|
|||
Transfer agent fees
|
95,004
|
|||
Custodian fees
|
87,472
|
|||
Administrative services
|
82,364
|
|||
Professional fees
|
56,007
|
|||
Shareholder servicing fees
|
55,670
|
|||
Insurance expense
|
54,889
|
|||
Accounting services
|
51,084
|
|||
Registration fees
|
30,368
|
|||
Board of Directors fees
|
28,000
|
|||
Chief Compliance Officer fees
|
25,500
|
|||
Printing and postage expense
|
17,298
|
|||
Other expenses
|
18,811
|
|||
Total expenses
|
1,445,988
|
|||
NET INVESTMENT LOSS
|
(1,004,911
|
)
|
||
NET REALIZED GAIN ON INVESTMENTS
|
12,873,152
|
|||
NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS
|
6,803,634
|
|||
NET GAIN ON INVESTMENTS
|
19,676,786
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
$
|
18,671,875
|
2018
|
2017
|
|||||||
OPERATIONS:
|
||||||||
Net investment loss
|
$
|
(1,004,911
|
)
|
$
|
(624,708
|
)
|
||
Net realized gain on investments
|
12,873,152
|
8,162,852
|
||||||
Net change in unrealized appreciation on investments
|
6,803,634
|
3,194,285
|
||||||
Net increase in net assets resulting from operations
|
18,671,875
|
10,732,429
|
||||||
DISTRIBUTIONS TO SHAREHOLDERS:
|
||||||||
Distributions(1)
|
(5,374,980
|
)
|
(6,090,037
|
)
|
||||
FUND SHARE ACTIVITIES:
|
||||||||
Proceeds from shares issued (61,094 and 46,615 shares, respectively)
|
3,747,615
|
2,494,317
|
||||||
Net asset value of shares issued in distributions reinvested (92,258 and 119,480 shares, respectively)
|
5,236,557
|
5,884,416
|
||||||
Cost of shares redeemed (206,881 and 453,557 shares, respectively)
|
(12,581,269
|
)
|
(23,988,143
|
)
|
||||
Net decrease in net assets derived from Fund share activities
|
(3,597,097
|
)
|
(15,609,410
|
)
|
||||
TOTAL INCREASE (DECREASE) IN NET ASSETS
|
9,699,798
|
(10,967,018
|
)
|
|||||
NET ASSETS AT THE BEGINNING OF THE YEAR
|
69,494,270
|
80,461,288
|
||||||
NET ASSETS AT THE END OF THE YEAR(1)
|
$
|
79,194,068
|
$
|
69,494,270
|
(1)
|
2017 net capital gain distributions and accumulated net investment loss were $6,090,037 and $(9,543), respectively.
|
Year Ended September 30,
|
||||||||||||||||||||
2018
|
2017
|
2016
|
2015
|
2014
|
||||||||||||||||
PER SHARE OPERATING PERFORMANCE:
|
||||||||||||||||||||
Net asset value, beginning of year
|
$
|
57.33
|
$
|
53.65
|
$
|
56.84
|
$
|
75.86
|
$
|
71.45
|
||||||||||
Income from investment operations:
|
||||||||||||||||||||
Net investment loss(1)
|
(0.84
|
)
|
(0.46
|
)
|
(0.49
|
)
|
(0.49
|
)
|
(0.49
|
)
|
||||||||||
Net realized and unrealized gains on investments
|
16.46
|
8.57
|
0.94
|
0.40
|
8.28
|
|||||||||||||||
Total from investment operations
|
15.62
|
8.11
|
0.45
|
(0.09
|
)
|
7.79
|
||||||||||||||
Less distributions:
|
||||||||||||||||||||
Distributions from net capital gains
|
(4.60
|
)
|
(4.43
|
)
|
(3.64
|
)
|
(18.93
|
)
|
(3.38
|
)
|
||||||||||
Total from distributions
|
(4.60
|
)
|
(4.43
|
)
|
(3.64
|
)
|
(18.93
|
)
|
(3.38
|
)
|
||||||||||
Net asset value, end of year
|
$
|
68.35
|
$
|
57.33
|
$
|
53.65
|
$
|
56.84
|
$
|
75.86
|
||||||||||
TOTAL RETURN
|
28.88
|
%
|
16.44
|
%
|
0.48
|
%
|
(1.00
|
%)
|
11.01
|
%
|
||||||||||
RATIOS/SUPPLEMENTAL DATA:
|
||||||||||||||||||||
Net assets, end of year (in 000’s)
|
$
|
79,194
|
$
|
69,494
|
$
|
80,461
|
$
|
114,340
|
$
|
162,930
|
||||||||||
Ratio of expenses to average net assets
|
1.96
|
%
|
1.97
|
%
|
1.86
|
%
|
1.71
|
%
|
1.59
|
%
|
||||||||||
Ratio of net investment loss to average net assets
|
(1.36
|
%)
|
(0.87
|
%)
|
(0.90
|
%)
|
(0.77
|
%)
|
(0.65
|
%)
|
||||||||||
Portfolio turnover rate
|
476
|
%
|
343
|
%
|
491
|
%
|
272
|
%
|
102
|
%
|
(1)
|
Amount calculated based on average shares outstanding throughout the year.
|
(1)
|
Summary of Significant Accounting Policies —
|
The following is a summary of significant accounting policies of the Reynolds Funds, Inc. (the “Company”), which is registered as a diversified, open-end management investment company under the Investment Company Act of 1940 (the “Act”), as amended. This Company consists of one fund: the Reynolds Blue Chip Growth Fund (the “Fund”). The Company was incorporated under the laws of Maryland on April 28, 1988. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.
|
|
The investment objective of the Fund is to produce long-term growth of capital by investing in a diversified portfolio of common stocks issued by well-established growth companies commonly referred to as “blue chip” companies, as defined in the prospectus.
|
|
The following is a summary of the Fund’s pricing procedures. It is intended to be a general discussion and may not necessarily reflect all pricing procedures followed by the Fund.
|
|
(a) Each security, excluding short-term investments and closed-end funds, is valued at the last sale price reported by the principal security exchange on which the issue is traded (other than The Nasdaq OMX Group, Inc., referred to as “Nasdaq”), or if no sale is reported, the latest bid price. Securities which are traded on Nasdaq (including closed-end funds) under one of its three listing tiers, Nasdaq Global Market, Nasdaq Global Select Market and Nasdaq Capital Market, are valued at
|
(1)
|
Summary of Significant Accounting Policies — (Continued)
|
the Nasdaq Official Closing Price, or if no sale is reported, the latest bid price. Short-term investments with maturities of 60 days or less may be valued on an amortized cost basis to the extent it is equivalent to fair value, which involves valuing an instrument at its cost and thereafter assuming a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating rates on the fair value of the instrument. Amortized cost will not be used if its use would be inappropriate due to credit or other impairments of the issuer. Money market funds are valued at their net asset value per share. Securities for which quotations are not readily available are valued at fair value as determined by the investment adviser under the supervision of the Board of Directors. The fair value of a security is the amount which the Fund might receive upon a current sale. The fair value of a security may differ from the last quoted price and the Fund may not be able to sell a security at the fair value. Market quotations may not be available, for example, if trading in particular securities was halted during the day and not resumed prior to the close of trading on the New York Stock Exchange.
|
|
Under accounting principles generally accepted in the United States of America (“GAAP”), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.
|
|
In determining fair value, the Fund uses various valuation approaches. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by generally requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
|
|
The fair value hierarchy is categorized into three levels based on the inputs as follows:
|
Level 1—
|
Valuations based on unadjusted quoted prices in active markets for identical assets that the Fund has the ability to access.
|
|
Level 2—
|
Valuations based on quoted prices for similar securities or in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
|
|
Level 3—
|
Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
|
The following table summarizes the Fund’s investments as of September 30, 2018, based on the inputs used to value them:
|
Valuation Inputs
|
Investments in Securities
|
||||||
Level 1—
|
Common Stock*
|
$
|
76,377,197
|
||||
Closed-End Funds
|
252,044
|
||||||
Money Market Funds
|
1,062,058
|
||||||
Total Level 1
|
77,691,299
|
||||||
Level 2—
|
None
|
—
|
|||||
Level 3—
|
None
|
—
|
|||||
Total
|
$
|
77,691,299
|
* Please refer to the Schedule of Investments to view common stocks segregated by industry type.
|
|
It is the Fund’s policy to recognize transfers between levels at the end of the reporting period. For the year ended September 30, 2018, there were no transfers between levels. The Fund did not invest in any Level 3 securities during the year.
|
|
(b) Investment transactions are accounted for on a trade date basis for financial reporting purposes. Net realized gains and losses on sales of securities are computed on the highest amortized cost basis.
|
(1)
|
Summary of Significant Accounting Policies — (Continued)
|
(c) The Fund records dividend income on the ex-dividend date and interest income on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and regulations.
|
|
(d) GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. The primary reason for this adjustment is because of equalization. For the year ended September 30, 2018, the following table shows the reclassifications made:
|
Distributable Earnings
|
Capital Stock
|
|
$(742,588)
|
$742,588
|
(e) The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
|
|
(f) No provision has been made for Federal income taxes since the Fund has elected to be taxed as a “regulated investment company” and intends to distribute substantially all net investment company taxable income and net capital gains to shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. The Fund may utilize earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction.
|
|
(g) The Fund has reviewed all open tax years and major jurisdictions, which include Federal and the state of Maryland, and concluded that there are no significant uncertain tax positions that would require recognition in the financial statements as of and for the year ended September 30, 2018. Open tax years are those that are open for exam by taxing authorities and, as of September 30, 2018, open Federal tax years include the tax years ended September 30, 2015 through 2018. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Fund’s Statement of Operations. During the year ended September 30, 2018, the Fund did not incur any interest or penalties. The Fund has no examinations in progress and is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
|
|
(h) The Fund’s cash is held in accounts with balances which may exceed the amount of related federal insurance. The Fund has not experienced any loss in such accounts and believes it is not exposed to significant credit risk.
|
|
(2)
|
Investment Advisory Agreement and Transactions With Related Parties —
|
The Fund has an advisory agreement with Reynolds Capital Management, LLC (“RCM”), to serve as investment adviser. The sole owner of RCM is Mr. Frederick L. Reynolds. Mr. Reynolds is also an officer and interested director of the Fund. Under the terms of the agreement, the Fund will pay RCM a monthly management fee at the annual rate of 1.00% of the daily net assets.
|
|
The agreement further stipulates that RCM will reimburse the Fund for all expenses exceeding 2.00% of its daily average net assets (excluding interest, taxes, brokerage commissions and extraordinary items). The Fund is not obligated to reimburse RCM for any expenses reimbursed in previous fiscal years. No such reimbursements were required for the year ended September 30, 2018.
|
|
The Fund has adopted a Service and Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. The Plan provides that the Fund may incur certain costs which may not exceed a maximum amount equal to 0.25% per annum of the Fund’s average daily net assets. Payments made pursuant to the Plan may only be used to pay distribution expenses incurred in the current year, and may be less than the maximum amount allowed by the Plan.
|
(2)
|
Investment Advisory Agreement and Transactions With Related Parties — (Continued)
|
Under the Fund’s organizational documents, each director, officer, employee or other agent of the Fund (including the Fund’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and believes the risk of loss to be remote.
|
|
(3)
|
Distributions to Shareholders —
|
Net investment income and net realized gains, if any, for the Fund are distributed to shareholders at least annually and are recorded on the ex-dividend date. Please see Note 5 for more information.
|
|
(4)
|
Investment Transactions —
|
For the year ended September 30, 2018, purchases and proceeds of sales of investment securities (excluding short-term securities) were $342,187,647 and $351,927,229, respectively. There were no purchases or sales of U.S. Government securities.
|
|
(5)
|
Income Tax Information —
|
The following information for the Fund is presented on an income tax basis as of September 30, 2018:
|
Tax cost of investments
|
$
|
56,008,993
|
|||
Gross tax unrealized appreciation
|
$
|
23,407,745
|
|||
Gross tax unrealized depreciation
|
(1,725,439
|
)
|
|||
Net unrealized appreciation
|
21,682,306
|
||||
Distributable ordinary income
|
4,352,817
|
||||
Distributable long term capital gains
|
6,173,825
|
||||
Other accumulated gain
|
—
|
||||
Total distributable earnings
|
$
|
32,208,948
|
The difference between the cost amount for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.
|
|
The tax components of dividends paid during the years ended September 30, 2018 and 2017:
|
September 30, 2018
|
September 30, 2017
|
||||
Ordinary Income
|
Long-Term Capital
|
Ordinary Income
|
Long-Term Capital
|
||
Distributions
|
Gains Distributions
|
Distributions
|
Gains Distributions
|
||
$1,755,353
|
$3,619,627
|
$—
|
$6,090,037
|
The Fund designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Fund related to net capital gain to zero for the tax year ended September 30, 2018.
|
|
As of September 30, 2018, the Fund did not have a post-October capital loss, late year ordinary loss or a capital loss carryforward.
|
(6)
|
Subsequent Events —
|
Management has evaluated events and transactions after September 30, 2018 through the date that the financial statements were issued, and has determined that no additional disclosure in the financial statements is required.
|
Term of
|
|
# of Funds
|
Other
|
||
|
Position(s)
|
Office and
|
in Complex
|
Directorships
|
|
Name, Age
|
Held with
|
Length of
|
Principal Occupation(s)
|
Overseen
|
Held by Director
|
and Address
|
the Fund
|
Time Served
|
During Past Five Years
|
by Director
|
or Officer
|
Non-Interested Directors:
|
|||||
Thomas F. Gilbertson, 75
|
Director
|
Indefinite term
|
Mr. Gilbertson is an entrepreneur that
|
1
|
None
|
c/o Reynolds Capital
|
since March
|
previously owned and operated
|
|||
Management, LLC
|
2015
|
restaurants in Naples, Florida.
|
|||
7652 Las Vegas
|
|||||
Boulevard #1
|
|||||
Las Vegas, NV 89123
|
|||||
Robert E. Stauder, 88
|
Director
|
Indefinite term
|
Mr. Stauder is retired. He was a principal of
|
1
|
None
|
c/o Reynolds Capital
|
since 1988
|
Robinson Mills + Williams, an architectural
|
|||
Management, LLC
|
and interior design firm, from 1991 until 1996.
|
||||
7652 Las Vegas
|
|||||
Boulevard #1
|
|||||
Las Vegas, NV 89123
|
|||||
Interested Director:
|
|||||
Frederick L. Reynolds,* 76
|
Director,
|
Indefinite term
|
Mr. Reynolds is the sole owner of
|
1
|
None
|
Reynolds Capital
|
since 1988
|
the Adviser, which business commenced in 1985.
|
|||
Management, LLC
|
|||||
7652 Las Vegas
|
President
|
One year term
|
|||
Boulevard #1
|
and
|
since 1988
|
|||
Las Vegas, NV 89123
|
Treasurer
|
||||
Other Officer:
|
|||||
Chad Bitterman, 46
|
Chief
|
At discretion
|
Mr. Bitterman has been a Compliance Officer
|
N/A
|
None
|
Northern Lights
|
Compliance
|
of Board
|
for Northern Lights Compliance Services, LLC
|
||
Compliance Services, LLC
|
Officer
|
since 2016
|
since 2010.
|
||
17605 Wright Street
|
|||||
Omaha, NE 68130
|
*
|
Mr. Reynolds is the only interested director of the Company as that term is defined in the Investment Company Act of 1940. Mr. Reynolds is an interested director of the Company by reason of his being an officer of the Company and the sole owner of the investment adviser.
|
FYE 9/30/2018
|
FYE 9/30/2017
|
|
Audit Fees
|
15,500
|
15,500
|
Audit-Related Fees
|
0
|
0
|
Tax Fees
|
4,000
|
4,000
|
All Other Fees
|
0
|
0
|
FYE 9/30/2018
|
FYE 9/30/2017
|
|
Audit-Related Fees
|
0%
|
0%
|
Tax Fees
|
0%
|
0%
|
All Other Fees
|
0%
|
0%
|
Non-Audit Related Fees
|
FYE 9/30/2018
|
FYE 9/30/2017
|
Registrant
|
0
|
0
|
Registrant’s Investment Adviser
|
0
|
0
|
(a)
|
The Registrant’s President and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) 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.
|
(a)
|
(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Filed herewith.
|
(b)
|
Certifications pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002. Furnished herewith.
|
A.
|
Act in an honest and ethical manner, including in connection with the handling and avoidance of actual or apparent conflicts of interest between personal and professional relationships;
|
B.
|
Comply with all applicable laws, rules and regulations of federal, state and local governments (both United States and foreign) and other applicable regulatory agencies (collectively, the “Laws”);
|
C.
|
Proactively promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission (the “SEC”) and in other public communications the Fund makes; and
|
D.
|
Proactively promote ethical and honest behavior within the Fund, including, without limitation, the prompt reporting of violations of, and being accountable for adherence to, this Sarbanes-Oxley Code of Ethics.
|
1.
|
Each Senior Financial Officer shall handle all conflicts of interest between his or her personal and professional relationships in an ethical and honest manner, and shall disclose in advance to the Audit Committee of the Fund’s Board of Directors (“Audit Committee”) the relevant details of any transaction or relationship that reasonably could be expected to give rise to an actual or apparent conflict of interest between the Fund and such Senior Financial Officer. The Audit Committee shall thereafter take such action with respect to the conflict of interest as it shall deem appropriate. It is the general policy of the Fund that conflicts of interest should be avoided whenever practicable. For purposes of this Sarbanes-Oxley Code of Ethics, a “conflict of interest” will be deemed to be present when an individual’s private interest interferes in any way, or even appears to interfere, with the interests of the Fund as a whole.
|
2.
|
Each Senior Financial Officer will use his or her best efforts to ensure the timely and understandable disclosure of information that, in all material respects, is accurate, complete, objective and relevant in all reports and documents the Fund files with, or submits to, the SEC or in other public communications that the Fund makes. As part of this undertaking, each Senior Financial Officer will periodically consider the adequacy and effectiveness of the Fund’s “internal controls” and “disclosure controls and procedures” (as such terms are defined or used in rules proposed or adopted by the SEC).
|
3.
|
Each Senior Financial Officer will use his or her best efforts to ensure compliance in all material respects by such Senior Financial Officer and the Fund with all applicable Laws.
|
4.
|
Each Senior Financial Officer shall respect the confidentiality of information acquired in the course of his or her work and shall not disclose such information, except when the Senior Financial Officer believes he or she is authorized or legally obligated to disclose the information. No Senior Financial Officer may use confidential information acquired in the course of his or her work for his or her personal advantage.
|
5.
|
No Senior Financial Officer may take or direct or allow any other person to take or direct any action to fraudulently influence, coerce, manipulate or mislead the Fund’s independent auditing firm.
|
6.
|
No Senior Financial Officer may engage the Fund’s auditing firm to perform audit or non-audit services without the Audit Committee’s (or its designee’s) preapproval in accordance with the Audit Committee’s charter.
|
1.
|
I have reviewed this report on Form N-CSR of the Reynolds Funds, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(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
|
5.
|
I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(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: November 30, 2018
|
/s/Frederick L. Reynolds
Frederick L. Reynolds
President, Principal Executive Officer & Principal Financial Officer |
/s/Frederick L. Reynolds
Frederick L. Reynolds
President and Treasurer
Reynolds Funds, Inc.
|
|
Dated: November 30, 2018
|
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