INCOME

FUND

(Unaudited)

Annual

Report

2022

Investment

Objective

The

Tributary

Income

Fund

seeks

the

generation

current

income

manner

consistent

with

preserving

capital

and

maximizing

total

return.

Manager

Commentary

The

fixed

income

market

experienced

remarkable

amount

volatility

over

the

trailing

12-month

period.

Early

the

year

the

reopening

the

economy

dominated

headlines

COVID-19

vaccinations

ramped

the

U.S.

and

many

service-oriented

sectors

saw

surging

demand.

The

reopening

coincided

with

disrupted

supply

chains

and

historic

amount

fiscal

and

monetary

stimulus

pulsing

through

the

financial

system,

leading

inflationary

pressures

across

the

economy.

While

the

inflation

narrative

was

initially

framed

transitory,

the

persistent

increases

the

CPI

index

during

the

year

forced

the

phrase

retired.

Indeed,

the

year-over-year

core

CPI

(excluding

food

and

energy)

rose

April

but

March

2022

had

jumped

6.5%,

the

highest

since

the

early

1980s.

The

underlying

economy

continued

perform

very

well,

with

robust

consumer

spending,

capital

goods

orders

and

home

sales.

The

labor

market

was

the

one

area

debate

with

regard

its

health,

the

labor

participation

rate

remained

well

below

pre-pandemic

levels.

the

year

progressed,

however,

became

apparent

that

the

labor

market

was

much

tighter

than

most

believed

the

unemployment

rate

fell

3.6%

the

end

the

fiscal

year

and

wages

grew

nearly

year-over-year.

With

inflation

running

hot

and

the

labor

market

suddenly

tight,

the

Federal

Reserve

found

itself

falling

behind

the

curve

with

respect

its

policy

stance

and

quickly

pivoted

“hawkish”

the

Fall.

September,

the

market

was

pricing

just

one

basis

point

hike

the

fed

funds

rate

the

end

2022,

while

the

end

the

fiscal

year

the

market

had

priced

eight

25-basis

point

hikes,

remarkable

shift

sentiment.

Given

the

inflationary

backdrop

and

shift

the

central

bank

policy

outlook,

the

bond

market

sold

off

and

the

yield

curve

flattened

aggressively.

The

2-year

yield

began

the

year

0.16%

and

rose

217

basis

points

finish

2.33%,

while

the

30-year

yield

rose

only

basis

points

finish

2.45%.

The

largest

driver

return

the

bond

market

over

the

past

year

was

the

significant

move

higher

inflation

and

bond

yields.

The

best

performing

asset

class

fixed

income

was

the

Treasury

inflation-protected

securities

(TIPS)

market,

which

posted

4.3%

absolute

return

the

heels

rising

inflation

expectations.

Given

higher

yields

and

tighter

monetary

policy

outlook,

risk

assets

struggled

perform

well.

Somewhat

surprisingly,

high

yield

corporate

bonds

still

posted

positive

excess

return

over

like-maturity

U.S.

Treasuries

nearly

3%,

largely

due

the

strong

economy

and

technical

support

from

investors

seeking

lower

duration

exposure.

the

investment

grade

space,

the

best

performing

spread

sector

was

non-agency

CMBS

which

came

flat

Treasuries.

All

other

areas

underperformed,

with

ABS

-0.16%

excess

return,

non-corporate

credit

-0.36%,

corporate

bonds

-0.92%,

agency

CMBS

-0.94%

and

agency

MBS

-1.57%.

The

Tributary

Income

Fund

returned

-3.80%

(net,

Institutional

Plus)

for

the

year

ended

March

31,

2022,

compared

-4.15%

for

the

Bloomberg

Barclay’s

U.S.

Aggregate

Bond

Index.

The

Fund

outperformed

the

benchmark

this

year

due

primarily

our

lower

duration

exposure

which

benefitted

yields

rose.

The

Fund’s

yield

advantage

over

the

benchmark

continued

generate

positive

excess

return,

while

our

underweight

the

agency

MBS

sector

also

contributed

given

the

significant

underperformance

that

sector.

the

negative

side,

the

primary

detractor

was

our

yield

curve

positioning

our

overweight

the

5-year

segment

the

curve

underperformed.

Our

overweight

allocation

corporate

credit

and

non-agency

structured

product

was

also

negative

impact

relative

return

spreads

widened

those

sectors.

During

the

year

increased

the

Fund’s

allocation

the

structured

product

market,

specifically

non-agency

CMBS,

ABS

and

RMBS.

reduced

our

exposure

the

corporate

credit

and

agency

MBS

sectors,

spreads

both

areas

reached

historical

tights

times

during

the

year.

Within

the

securitized

space

were

most

active

the

non-agency

CMBS

sector,

adding

positions

single-family

rental,

data

warehouse

and

floating

rate

single

asset-single

borrower

(SASB)

securities.

added

positions

the

non-agency

RMBS

sector

found

value

there

compared

the

agency

MBS

space,

while

the

ABS

space

found

value

the

private

label

student

loan

sector.

terms

credit

quality

there

was

significant

change

during

the

year,

the

Fund

maintained

Aa2

weighted

average

credit

rating.

the

calendar

flips

the

new

fiscal

year,

hard

understate

the

difficult

position

which

the

Federal

Reserve

finds

itself.

Indeed,

the

saying

“between

rock

and

hard

place”

now

seems

apt.

cool

the

surge

inflation

we’ve

seen,

the

Fed

prepared

rapidly

increase

their

policy

rate

and

tighten

financial

conditions

further

with

balance

sheet

reduction.

The

hope

that

the

economy

strong

enough

withstand

this

restrictive

policy

action

without

tipping

into

recession—i.e.,

achieve

the

elusive

soft

landing.

history

any

guide,

this

will

very

challenging

task

for

the

Fed.

The

fact

that

very

few

investors

active

the

market

today

have

witnessed

environment

this

complicates

the

issue

and

will

likely

make

for

increasingly

volatile

market.

From

portfolio

management

perspective,

the

prudent

risk

management

decision

position

the

portfolio

cautiously

view

the

macro

landscape.

From

duration

perspective

that

means

are

short

versus

the

benchmark

policy

tightening

likely

push

market

yields.

expect

flexible

this

regard,

however,

sustained

rise

yields

could

become

attractive

opportunity

lengthen

duration.

Although

risk

spreads

are

wider

over

recent

months,

the

rapid

tightening

seen

end

the

period

leaves

spread

sector

valuations

the

fair/average

range

our

estimation.

such,

are

not

eager

add

exposure

broadly

credit

non-agency

securitized

sectors

but

will

remain

nimble

take

advantage

expected

volatility.

terms

our

sector

allocation,

remain

underweight

the

traditional

U.S.

government

sectors

and

the

agency

MBS

space,

the

latter

continues

face

significant

headwinds

from

Fed

balance

sheet

reduction

and

modest

yield

spread

pickup.

The

non-agency

securitized

sectors

remain

our

biggest

overweight

relative

the

benchmark,

where

take

comfort

the

strong

credit

enhancement

and

quality

collateral

underlying

the

transactions

which

have

invested.

remain

overweight

the

corporate

sector,

with

larger

overweight

allocation

the

industrial

subsector,

small

overweight

financials,

and

underweight

the

utility

subsector.

Given

our

generally

cautious

outlook,

spreads

stay

current

levels

would

expect

reduce

our

credit

allocation

over

the

coming

months,

with

subsequent

increase

our

government

allocation.

TRIBUTARY funds, INC.

CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND

Principal FINANCIAL OFFICERS

I.

Covered Officers/Purpose of the Code

Tributary Funds, Inc.’s (the “Company” or the “Funds”) code of ethics (the “Code”) applies to the Company’s Principal Executive Officer (“President”) and Principal Financial Officer (“Treasurer”) (the “Covered Officers” each of whom is identified in Exhibit A) for the purpose of promoting:

honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Company;

compliance with applicable laws and governmental rules and regulations;

the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to apparent as well as actual conflicts of interest.

II.

Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

Overview. A “conflict of interest” occurs when a Covered Officer’s private interest interferes with the interests of, or his service to, the Company. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position in the Company.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (“Investment Company Act”). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Company because of their status as “affiliated persons” of the Company. The Principal Executive Officer is an employee of an affiliate of the Adviser. The Principal Financial Officer is an employee of the Company’s Co-administrator. The Company’s and these Service Provider’s compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Company and the Service Provider of which the Principal Financial Officer is also an employee. As a result, this Code recognizes that the Principal Financial Officer will, in the normal course of his or her duties (whether formally for the Company or for the Service Provider, or for both), be involved in establishing policies and implementing decisions which will have different effects on the Service Provider and the Company. The participation of the Principal Financial Officer in such activities is inherent in the contractual relationship between the Company and the Service Provider and is consistent with the performance by the Principal Financial Officer of his or her duties as an officer of the Company. Thus, if performed in conformity with the provisions of the Investment Company Act, will be deemed to have been handled ethically. In addition, it is recognized by the Board of Directors (the “Board”) that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other Codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Company.

Each Covered Officer must:

not use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Company whereby the Covered Officer would benefit personally to the detriment of the Company;

not cause the Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than for the benefit of the Company;

not use material non-public knowledge of portfolio transactions made or contemplated for the Company to trade personally or cause others to trade personally in contemplation of the market effect of such transactions;

III.

Disclosure & Compliance

Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Company;

each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company, including to the Company’s Directors and auditors, and to governmental regulators and self-regulatory organizations;

each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Company and the Company’s adviser or subadviser and co-administrators with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Company files with, or submit to, the SEC and in other public communications made by the Company; and

it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV.

Reporting and Accountability

Each Covered Officer must:

upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he/she has received, read, and understands the Code;

annually thereafter affirm to the Board that he/she has complied with the requirements of the Code;

not retaliate against any employee or Covered Officer or their affiliated persons for reports of potential violations that are made in good faith;

notify the Chief Legal Officer (or equivalent) or the Qualified Legal Compliance Committee (“QLCC”) promptly if he/she knows of any violation of this Code. Failure to do so is itself a violation of this Code; and

report at least annually any change in his affiliations from the prior year.

The CLO (or equivalent) is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation.

The Company will follow these procedures in investigating and enforcing this Code:

the CLO or equivalent will take all appropriate action to investigate any potential violations reported to it;

if, after such investigation, the CLO believes that no violation has occurred, the CLO is not required to take any further action;

if the CLO concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the Service Provider or its board; or a recommendation to dismiss the Covered Officer;

and

any changes to this Code will, to the extent required, be disclosed as provided by SEC rules.

V. Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds’ advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superceded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Funds’ and their investment adviser’s, principal underwriter’s and service providers’ codes of ethics under Rule 17j-1 under the Investment Company Act and the adviser’s more detailed policies and procedures are separate requirements applying to the Covered Officers and others, and are not part of this Code.

VI. Amendments

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Company’s board, including a majority of independent directors.

VII. Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board and its counsel, the investment advisers and the respective Service Providers.

VIII. Internal Use

The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of the Company, as to any fact, circumstance, or legal conclusion.

Date: August 19, 2010, as amended March 31, 2017

By	/s/ Karen Shaw
	Karen Shaw Treasurer

Date	May 27, 2022

By	/s/ Stephen C. Wade
	Stephen C. Wade President

Date	May 27, 2022

By	/s/ Karen Shaw
	Karen Shaw Treasurer

Date	May 27, 2022

Date:	May 27, 2022	/s/ Stephen C. Wade
		Stephen C. Wade
		President

Date:	May 27, 2022	/s/ Karen Shaw
		Karen Shaw
		Treasurer

INVESTMENT COMPANIES

SIGNATURES

I.

Covered Officers/Purpose of the Code

II.

Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

III.

Disclosure & Compliance

IV.

Reporting and Accountability

In connection with the attached Report of the Tributary Funds, Inc. (the “Registrant”) on Form N-CSR to be filed with the Securities and Exchange Commission (the “Report”), the undersigned officer of the Trust does hereby certify that, to the best of such officer’s knowledge:

Dated:	May 27, 2022

	/s/ Stephen C. Wade
	Stephen C. Wade
	President

INVESTMENT COMPANIES

SIGNATURES

I. Covered Officers/Purpose of the Code

II. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

III. Disclosure & Compliance

IV. Reporting and Accountability

In connection with the attached Report of the Tributary Funds, Inc. (the “Registrant”) on Form N-CSR to be filed with the Securities and Exchange Commission (the “Report”), the undersigned officer of the Trust does hereby certify that, to the best of such officer’s knowledge:

I.

Covered Officers/Purpose of the Code

II.

Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

III.

Disclosure & Compliance

IV.

Reporting and Accountability