Unified Series Trust
07/07/2022 | Press release | Distributed by Public on 07/07/2022 10:54
Semi-Annual Report by Investment Company (Form N-CSRS)
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 811-21237
Unified Series Trust
(Exact name of registrant as specified in charter)
225 Pictoria Drive, Suite 450
Cincinnati, OH 45246
(Address of principal executive offices)
(Zip code)
Zachary P. Richmond
Ultimus Fund Solutions, LLC
225 Pictoria Drive. Suite 450
Cincinnati, OH 45246
(Name and address of agent for service)
Registrant's telephone number, including area code: 513-587-3400
Date of fiscal year end: 10/31
Date of reporting period: 04/30/2022
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
| Standpoint Multi-Asset Fund |
| Semi-Annual Report |
| April 30, 2022 |
| Fund Adviser: |
|
Standpoint Asset Management, LLC 4250 N. Drinkwater Blvd. Suite 300 Scottsdale, AZ 85251 |
| Toll Free (866) 738-1128 |
Investments Results (Unaudited)
Average Annual Total Returns(a) (for the periods ended April 30, 2022)
| Six | Since Inception | ||
| Months | One Year | (12/30/19) | |
| Standpoint Multi-Asset Fund Institutional Class | 4.62% | 13.81% | 18.81% |
| Investor Class | 4.47% | 13.49% | 18.53% |
| 50% MSCI World Index (b) / 50% ICE BofA 3-month T-Bill (c) | -5.52% | -1.51% | 5.32% |
| 50% MSCI World Index (b) / 50% SG Trend Index (d) | 4.76% | 12.73% | 14.24% |
| Expense Ratios(e) | |||
| Institutional Class | Investor Class | ||
| Gross | 1.94% | 2.19% | |
| With Applicable Waivers | 1.27% | 1.52% | |
The performance quoted represents past performance, which 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. The returns shown do not reflect deduction of taxes that a shareholder would pay on Standpoint Multi-Asset Fund (the "Fund") distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. Performance data current to the most recent month end may be obtained by calling (866) 738-1128.
| (a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. The Fund's returns reflect any fee reductions during the applicable period. If such fee reductions had not occurred, the quoted performances would have been lower. Total returns for less than one year are not annualized. |
| (b) | The MSCI World Index (the "MSCI Index") is a widely followed, unmanaged group of stocks from 23 developed markets and is not available for purchase. The MSCI Index returns do not reflect the deduction of expenses, which have been deducted from the Fund's returns. The MSCI Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. An individual cannot invest directly in the MSCI Index. However, an individual may be able to invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. |
| (c) | The ICE BofA 3-Month U.S. Treasury Bill Index ("ICE BofA Index") is an unmanaged market index of U.S. Treasury securities maturing in 90 days. The ICE BofA Index returns do not reflect the deduction of expenses, which have been deducted from the Fund's returns. The ICE BofA Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in the ICE BofA Index; however, an individual may invest in exchange-traded funds or other investment vehicles that attempt to track the performance of a benchmark index. |
| (d) | The SG Trend Index is designed to track the 10 largest (by assets under management) trend following commodity\ trading advisers and to be representative of the trend followers in the managed futures space. The SG Trend Index is equally weighted and rebalanced and reconstituted annually. |
| (e) | The expense ratios, which include acquired fund fees and expenses of 0.03%, are from the Fund's prospectus dated February 28, 2022. Standpoint Asset Management, LLC (the "Adviser") has contractually agreed to waive its management fee and/or reimburse expenses so that total annual operating expenses (excluding portfolio transactions and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any amounts payable pursuant to a distribution or service plan adopted in accordance with Rule 12b-1 under the Investment Company Act of 1940; any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board of Trustees; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Fund's business) do not exceed 1.24% for each class of shares through February 28, 2023. Each waiver/ expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. This expense cap may not be terminated prior to this date except by the Board of Trustees. Additional information pertaining to the Fund's expense ratios as of April 30, 2022 can be found in the financial highlights, which do not include acquired fund fees and expenses. |
3
Investments Results (Unaudited)(continued)
You should consider the Fund's investment objectives, risks, charges and expenses carefully before you invest. The Fund's prospectus contains important information about the Fund's investment objectives, potential risks, management fees, charges and expenses, and other information and should be read carefully before investing. You may obtain a current copy of the Fund's prospectus or performance data current to the most recent month by calling (866) 738-1128.
The Fund is distributed by Ultimus Fund Distributors, LLC, member FINRA/SIPC.
4
Fund Holdings (Unaudited)
| (a) | As a percentage of net assets. |
Percentages shown exclude derivative investments, such as future contracts.
The investment objective of the Fund is to seek positive absolute returns.
Availability of Portfolio Schedule - (Unaudited)
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Form N-PORT reports are available on the SEC's website at http://www.sec.gov and on the Fund's website at https://www.standpointfunds.com.
5
| Standpoint Multi-Asset Fund |
| Consolidated Schedule of Investments |
| April 30, 2022 (Unaudited) |
| Shares | Fair Value | |||||||
| Exchange-Traded Funds - 40.68% | ||||||||
| iShares Core MSCI EAFE ETF | 172,300 | $ | 11,166,763 | |||||
| iShares Core S&P Total US Stock Market ETF | 227,300 | 20,872,959 | ||||||
| Schwab International Equity ETF | 334,200 | 11,432,982 | ||||||
| Schwab Short-Term Treasury ETF | 4,000 | 197,120 | ||||||
| Schwab U.S. Broad Market ETF | 430,800 | 20,889,492 | ||||||
| SPDR Portfolio Developed World EX-US ETF | 357,600 | 11,393,136 | ||||||
| SPDR Portfolio Total Stock Market ETF | 418,700 | 21,274,147 | ||||||
| Vanguard FTSE Developed Markets ETF | 256,000 | 11,461,120 | ||||||
| Vanguard Short-Term Treasury ETF | 2,500 | 147,375 | ||||||
| Vanguard Total Stock Market ETF | 101,000 | 20,894,880 | ||||||
| Total Exchange-Traded Funds (Cost $137,889,045) | 129,729,974 | |||||||
| Money Market Funds-0.85% | ||||||||
| Fidelity Investments Money Market Government Portfolio, Class I, 0.15%(a) | 2,707,706 | 2,707,706 | ||||||
| Total Money Market Funds (Cost $2,707,706) | 2,707,706 | |||||||
| Total Investments - 41.53% (Cost $140,596,751) | 132,437,680 | |||||||
| Other Assets in Excess of Liabilities - 58.47% (b) | 186,425,639 | |||||||
| Net Assets - 100.00% | $ | 318,863,319 | ||||||
| (a) | Rate disclosed is the seven day effective yield as of April 30, 2022. |
| (b) | Includes cash held as margin for futures contracts. |
See accompanying notes which are an integral part of these financial statements.
6
| Standpoint Multi-Asset Fund |
| Consolidated Schedule of Futures Contracts |
| April 30, 2022 (Unaudited) |
| Value and | ||||||||||||
| Unrealized | ||||||||||||
| Expiration | Notional | Appreciation | ||||||||||
| Contracts | Date | Value | (Depreciation) | |||||||||
| LONG CONTRACTS | ||||||||||||
| ASX SPI 200 Index Future | 13 | June 2022 | $ | 1,701,113 | $ | (6,791 | ) | |||||
| Brent Crude Future(a) | 53 | June 2022 | 5,678,420 | 190,600 | ||||||||
| Canada Canola Future(a) | 16 | November 2022 | 275,067 | 32,842 | ||||||||
| Coffee 'C' Future(a) | 7 | July 2022 | 583,013 | (20,437 | ) | |||||||
| Corn Future(a) | 187 | July 2022 | 7,606,225 | 596,362 | ||||||||
| Cotton No.2 Future(a) | 27 | July 2022 | 1,966,005 | 176,210 | ||||||||
| Crude Oil Future(a) | 153 | November 2022 | 14,279,490 | 246,910 | ||||||||
| Crude Soybean Oil Future(a) | 47 | July 2022 | 2,373,876 | 324,132 | ||||||||
| FTSE 100 Index Future | 34 | June 2022 | 3,211,894 | (16,886 | ) | |||||||
| Hard Red Winter Wheat Future(a) | 24 | July 2022 | 1,326,900 | 19,938 | ||||||||
| Light Sweet Crude Oil Future(a) | 47 | November 2022 | 4,386,510 | 438,110 | ||||||||
| LME Zinc Future(a) | 18 | July 2022 | 1,850,738 | (48,400 | ) | |||||||
| London Robusta Coffee Future(a) | 3 | July 2022 | 63,210 | (650 | ) | |||||||
| Mexican Peso Future | 60 | June 2022 | 1,462,200 | (16,730 | ) | |||||||
| Milling Wheat Future(a) | 50 | December 2022 | 986,738 | 196,157 | ||||||||
| Natural Gas Future(a) | 96 | June 2022 | 7,060,800 | 112,240 | ||||||||
| RBOB Gasoline Future(a) | 38 | June 2022 | 5,494,070 | 118,116 | ||||||||
| S&P/Toronto Stock Exchange 60 Index Future | 7 | June 2022 | 1,364,376 | (78,347 | ) | |||||||
| Soybean Future(a) | 79 | July 2022 | 6,654,763 | 129,613 | ||||||||
| Soybean Meal Future(a) | 46 | July 2022 | 1,988,580 | (115,720 | ) | |||||||
| White Sugar (ICE) Future(a) | 7 | July 2022 | 185,290 | (2,640 | ) | |||||||
| $ | 2,274,629 | |||||||||||
See accompanying notes which are an integral part of these financial statements.
7
| Standpoint Multi-Asset Fund |
| Consolidated Schedule of Futures Contracts (continued) |
| April 30, 2022 (Unaudited) |
| Value and | ||||||||||||
| Unrealized | ||||||||||||
| Expiration | Notional | Appreciation | ||||||||||
| Contracts | Date | Value | (Depreciation) | |||||||||
| SHORT CONTRACTS | ||||||||||||
| 10 Year US Treasury Note Future | (447) | June 2022 | $ | (53,262,844 | ) | $ | 2,707,735 | |||||
| 5 Year US Treasury Note Future | (492) | July 2022 | (55,434,562 | ) | 2,156,329 | |||||||
| British Pound Future | (80) | June 2022 | (6,299,500 | ) | 257,106 | |||||||
| Canadian 10 Year Bond Future | (65) | June 2022 | (6,393,293 | ) | 295,397 | |||||||
| CBOE Volatility Index (VIX) Future | (6) | May 2022 | (189,892 | ) | (39,582 | ) | ||||||
| CME Ultra Long Term US Treasury Bond Future | (144) | June 2022 | (23,103,000 | ) | 2,449,969 | |||||||
| Euro Bund Future | (137) | June 2022 | (22,191,341 | ) | 1,005,911 | |||||||
| Euro FX Future | (236) | June 2022 | (31,237,550 | ) | 1,335,302 | |||||||
| Euro-BOBL German Government Bond Future | (194) | June 2022 | (26,020,797 | ) | 485,410 | |||||||
| Euro-BTP Italian Government Bond Future | (52) | June 2022 | (7,147,943 | ) | 429,149 | |||||||
| Euro-BUXL 30 Year Bond Future | (42) | June 2022 | (7,573,466 | ) | 743,143 | |||||||
| Euro-OAT Future | (71) | June 2022 | (10,920,312 | ) | 429,915 | |||||||
| Feeder Cattle Future(a) | (5) | August 2022 | (420,688 | ) | 14,787 | |||||||
| Japanese Yen Future | (78) | June 2022 | (7,541,625 | ) | 726,629 | |||||||
| Long Gilt Future | (87) | June 2022 | (12,956,469 | ) | 371,711 | |||||||
| Swiss Franc Future | (15) | June 2022 | (1,934,813 | ) | 61,950 | |||||||
| Ultra 10 Year US Treasury Note Future | (133) | June 2022 | (17,157,000 | ) | 974,032 | |||||||
| US Treasury Long Bond Future | (134) | June 2022 | (18,852,125 | ) | 1,249,188 | |||||||
| $ | 15,654,081 | |||||||||||
| (a) | Holding of the Standpoint Multi-Asset (Cayman) Fund, Ltd. |
See accompanying notes which are an integral part of these financial statements.
8
| Standpoint Multi-Asset Fund |
| Consolidated Statement of Assets and Liabilities |
| April 30, 2022 (Unaudited) |
| Assets | ||||
| Investments in securities, at fair value (cost $140,596,751) | $ | 132,437,680 | ||
| Foreign currencies, at value (cost $2,453,674) | 2,417,750 | |||
| Cash held at broker for futures contract transactions(a) | 40,853,368 | |||
| Cash and cash equivalents | 141,515,492 | |||
| Receivable for fund shares sold | 2,295,046 | |||
| Dividends and interest receivable | 359 | |||
| Receivable for net variation margin on futures contracts | 357,879 | |||
| Prepaid expenses | 55,113 | |||
| Total Assets | 319,932,687 | |||
| Liabilities | ||||
| Payable for fund shares redeemed | 769,328 | |||
| Payable to Adviser, net of waiver | 251,326 | |||
| Accrued 12b-1 fees - Investor class | 6,449 | |||
| Payable to affiliates | 20,945 | |||
| Other accrued expenses | 21,320 | |||
| Total Liabilities | 1,069,368 | |||
| Net Assets | $ | 318,863,319 | ||
| Net Assets consist of: | ||||
| Paid-in capital | 301,112,241 | |||
| Accumulated earnings | 17,751,078 | |||
| Net Assets | $ | 318,863,319 | ||
| Net Assets: Institutional Class | $ | 289,069,902 | ||
| Shares outstanding (unlimited number of shares authorized, no par value) | 20,786,990 | |||
| Net asset value, offering and redemption price per share | $ | 13.91 | ||
| Net Assets: Investor Class | $ | 29,793,417 | ||
| Shares outstanding (unlimited number of shares authorized, no par value) | 2,150,090 | |||
| Net asset value, offering and redemption price per share | $ | 13.86 |
| (a) | Cash held as collateral at broker. |
See accompanying notes which are an integral part of these financial statements.
9
| Standpoint Multi-Asset Fund |
| Consolidated Statement of Operations |
| For the six months ended April 30, 2022 (Unaudited) |
| Investment Income | ||||
| Dividend income | $ | 884,161 | ||
| Interest income | 377 | |||
| Total investment income | 884,538 | |||
| Expenses | ||||
| Adviser | 1,237,574 | |||
| Administration | 78,817 | |||
| Fund accounting | 43,860 | |||
| Registration | 31,632 | |||
| 12b-1 fees- Investor class | 22,986 | |||
| Audit and tax | 16,762 | |||
| Custodian | 14,617 | |||
| Transfer agent | 12,118 | |||
| Legal | 11,077 | |||
| Trustee | 8,024 | |||
| Report printing | 7,484 | |||
| Compliance services | 5,969 | |||
| Insurance | 1,546 | |||
| Pricing | 686 | |||
| Miscellaneous | 20,437 | |||
| Total expenses | 1,513,589 | |||
| Fees waived by Adviser | (252,913 | ) | ||
| Net operating expenses | 1,260,676 | |||
| Net investment loss | (376,138 | ) | ||
| Net Realized and Change in Unrealized Gain (Loss) on Investments | ||||
| Long-term capital gains distributions from investment companies | 412 | |||
| Net realized gain (loss) on: | ||||
| Investment securities | 4 | |||
| Foreign currency translations | (162,250 | ) | ||
| Futures contracts | 12,431,006 | |||
| Change in unrealized appreciation (depreciation) on: | ||||
| Investment securities | (13,941,515 | ) | ||
| Foreign currency translations | (34,492 | ) | ||
| Futures contracts | 14,479,228 | |||
| Net realized and unrealized gain (loss) on investment securities, foreign currency translations and futures contracts | 12,772,393 | |||
| Net increase in net assets resulting from operations | $ | 12,396,255 |
See accompanying notes which are an integral part of these financial statements.
10
| Standpoint Multi-Asset Fund |
| Consolidated Statements of Changes in Net Assets |
| For the | For the | |||||||
| Six Months Ended | Year Ended | |||||||
| April 30, 2022 | October 31, | |||||||
| (Unaudited) | 2021 | |||||||
| Increase (Decrease) in Net Assets due to: | ||||||||
| Operations | ||||||||
| Net investment loss | $ | (376,138 | ) | $ | (272,702 | ) | ||
| Long-term capital gains distributions from investment companies | 412 | - | ||||||
| Net realized gain on investment securities, foreign currency translations and futures contracts | 12,268,760 | 5,404,569 | ||||||
| Change in unrealized appreciation on investment securities, foreign currency translations and futures contracts | 503,221 | 9,484,584 | ||||||
| Net increase in net assets resulting from operations | 12,396,255 | 14,616,451 | ||||||
| Distributions to Shareholders from Earnings: | ||||||||
| Institutional Class | (7,999,752 | ) | (295,677 | ) | ||||
| Investor Class | (977,311 | ) | (18,472 | ) | ||||
| Total distributions | (8,977,063 | ) | (314,149 | ) | ||||
| Capital Transactions - Institutional Class | ||||||||
| Proceeds from shares sold | 200,730,983 | 91,516,382 | ||||||
| Reinvestment of distributions | 7,912,653 | 295,677 | ||||||
| Amount paid for shares redeemed | (41,605,617 | ) | (4,562,559 | ) | ||||
| Total Institutional Class | 167,038,019 | 87,249,500 | ||||||
| Capital Transactions - Investor Class | ||||||||
| Proceeds from shares sold | 23,121,648 | 7,784,128 | ||||||
| Reinvestment of distributions | 896,303 | 18,472 | ||||||
| Amount paid for shares redeemed | (3,515,827 | ) | (825,521 | ) | ||||
| Total Investor Class | 20,502,124 | 6,977,079 | ||||||
| Net increase in net assets resulting from capital transactions | 187,540,143 | 94,226,579 | ||||||
| Total Increase in Net Assets | 190,959,335 | 108,528,881 | ||||||
| Net Assets | ||||||||
| Beginning of period | $ | 127,903,984 | $ | 19,375,103 | ||||
| End of period | $ | 318,863,319 | $ | 127,903,984 | ||||
| Share Transactions - Institutional Class | ||||||||
| Shares sold | 14,898,721 | 6,966,667 | ||||||
| Shares issued in reinvestment of distributions | 617,693 | 26,166 | ||||||
| Shares redeemed | (3,129,243 | ) | (351,363 | ) | ||||
| Total Institutional Class | 12,387,171 | 6,641,470 | ||||||
| Share Transactions - Investor Class | ||||||||
| Shares sold | 1,685,756 | 589,250 | ||||||
| Shares issued in reinvestment of distributions | 70,133 | 1,636 | ||||||
| Shares redeemed | (266,276 | ) | (62,974 | ) | ||||
| Total Investor Class | 1,489,613 | 527,912 | ||||||
| Net increase in shares outstanding | 13,876,784 | 7,169,382 |
See accompanying notes which are an integral part of these financial statements.
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| Standpoint Multi-Asset Fund - Institutional Class |
| Consolidated Financial Highlights |
| (For a share outstanding during each period) |
| For the | ||||||||||||
| Six Months | ||||||||||||
| Ended | For the | For the | ||||||||||
| April 30, | Year Ended | Period Ended | ||||||||||
| 2022 | October 31, | October 31, | ||||||||||
| (Unaudited) | 2021 | 2020(a) | ||||||||||
| Selected Per Share Data: | ||||||||||||
| Net asset value, beginning of period | $ | 14.12 | $ | 10.25 | $ | 10.00 | ||||||
| Investment operations: | ||||||||||||
| Net investment loss | (0.14 | ) | (0.06 | ) | (0.02 | ) | ||||||
| Net realized and unrealized gain on investments | 0.72 | 4.07 | 0.27 | |||||||||
| Total from investment operations | 0.58 | 4.01 | 0.25 | |||||||||
| Less distributions to shareholders from: | ||||||||||||
| Net investment income | (0.61 | ) | (0.14 | ) | - | |||||||
| Net realized gains | (0.18 | ) | - | - | ||||||||
| Total distributions | (0.79 | ) | (0.14 | ) | - | |||||||
| Net asset value, end of period | $ | 13.91 | $ | 14.12 | $ | 10.25 | ||||||
| Total Return(b) | 4.62 | % (c) | 39.45 | % | 2.50 | % (c) | ||||||
| Ratios and Supplemental Data: | ||||||||||||
| Net assets, end of period (000 omitted) | $ | 289,070 | $ | 118,606 | $ | 18,019 | ||||||
| Ratio of net expenses to average net assets | 1.24 | % (d) | 1.24 | % | 1.24 | % (d) | ||||||
| Ratio of expenses to average net assets before waiver and reimbursement | 1.49 | % (d) | 1.91 | % | 4.21 | % (d) | ||||||
| Ratio of net investment loss to average net assets | (0.35 | )% (d) | (0.49 | )% | (0.39 | )% (d) | ||||||
| Portfolio turnover rate(e) | - | % (c) | - | % | 15 | % (c) | ||||||
| (a) | For the period December 30, 2019 (commencement of operations) to October 31, 2020. |
| (b) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
| (c) | Not annualized. |
| (d) | Annualized. |
| (e) | Portfolio turnover is calculated on the basis on the Fund as a whole without distinguishing among the classes of shares. |
See accompanying notes which are an integral part of these financial statements.
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| Standpoint Multi-Asset Fund - Investor Class |
| Consolidated Financial Highlights |
| (For a share outstanding during each period) |
| For the | ||||||||||||
| Six Months | ||||||||||||
| Ended | For the | For the | ||||||||||
| April 30, | Year Ended | Period Ended | ||||||||||
| 2022 | October 31, | October 31, | ||||||||||
| (Unaudited) | 2021 | 2020(a) | ||||||||||
| Selected Per Share Data: | ||||||||||||
| Net asset value, beginning of period | $ | 14.08 | $ | 10.23 | $ | 10.00 | ||||||
| Investment operations: | ||||||||||||
| Net investment loss | (0.28 | ) | (0.08 | ) | (0.02 | ) | ||||||
| Net realized and unrealized gain on investments | 0.84 | 4.05 | 0.25 | |||||||||
| Total from investment operations | 0.56 | 3.97 | 0.23 | |||||||||
| Less distributions to shareholders from: | ||||||||||||
| Net investment income | (0.60 | ) | (0.12 | ) | - | |||||||
| Net realized gains | (0.18 | ) | - | - | ||||||||
| Total distributions | (0.78 | ) | (0.12 | ) | - | |||||||
| Net asset value, end of period | $ | 13.86 | $ | 14.08 | $ | 10.23 | ||||||
| Total Return(b) | 4.47 | % (c) | 39.16 | % | 2.30 | % (c) | ||||||
| Ratios and Supplemental Data: | ||||||||||||
| Net assets, end of period (000 omitted) | $ | 29,793 | $ | 9,298 | $ | 1,356 | ||||||
| Ratio of net expenses to average net assets | 1.49 | % (d) | 1.49 | % | 1.49 | % (d) | ||||||
| Ratio of expenses to average net assets before waiver and reimbursement | 1.74 | % (d) | 2.16 | % | 4.46 | % (d) | ||||||
| Ratio of net investment loss to average net assets | (0.60 | )% (d) | (0.75 | )% | (0.55 | )% (d) | ||||||
| Portfolio turnover rate(e) | - | % (c) | - | % | 15 | % (c) | ||||||
| (a) | For the period December 30, 2019 (commencement of operations) to October 31, 2020. |
| (b) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
| (c) | Not annualized. |
| (d) | Annualized. |
| (e) | Portfolio turnover is calculated on the basis on the Fund as a whole without distinguishing among the classes of shares. |
See accompanying notes which are an integral part of these financial statements.
13
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements |
| April 30, 2022 (Unaudited) |
| NOTE 1. ORGANIZATION |
Standpoint Multi-Asset Fund (the "Fund") is registered under the Investment Company Act of 1940, as amended ("1940 Act"), as a diversified series of Unified Series Trust (the "Trust") on October 10, 2019. The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 14, 2002, as amended from time to time (the "Trust Agreement"). The Trust Agreement permits the Board of Trustees of the Trust (the "Board") to issue an unlimited number of shares of beneficial interest of separate series. The Fund is one of a series of funds currently authorized by the Board. The Fund's investment adviser is Standpoint Asset Management, LLC (the "Adviser"). The investment objective of the Fund is to seek positive absolute returns.
The Fund currently offers two classes of shares, Institutional Class and Investor Class. Each share represents an equal proportionate interest in the assets and liabilities belonging to the applicable class of the Fund and is entitled to such dividends and distributions out of income belonging to the applicable class of the Fund as are declared by the Board. Expenses attributable to any class are borne by that class. On matters that affect the Fund as a whole, each class has the same voting and other rights and preferences as any other class. On matters that affect only one class, only shareholders of that class may vote. Each class votes separately on matters affecting only that class, or as expressly required to be voted on separately by state or federal law. Shares of each class of a series have the same voting and other rights and preferences as the other classes and series of the Trust for matters that affect the Trust as a whole. The Fund may offer additional classes of shares in the future.
The consolidated financial statements of the Fund include the Fund and its wholly-owned subsidiary, Standpoint Multi-Asset (Cayman) Fund, Ltd. (the "CFC"). The CFC commenced operations on January 8, 2020 and is incorporated in the Cayman Islands as an exempted company with limited liability.
| NOTE 2. SIGNIFICANT ACCOUNTING POLICIES |
The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification ("ASC") Topic 946, "Financial Services-Investment Companies", including Accounting Standards Update 2013-08. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America ("GAAP").
Estimates - 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translation - The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange each business day to determine the value of investments, and other assets and liabilities. Purchases and sales of foreign securities, and income and expenses, are translated at the prevailing rate of exchange
14
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements (continued) |
| April 30, 2022 (Unaudited) |
on the respective date of these transactions. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuation arising from changes in market prices of securities held. These fluctuations are included with the realized and unrealized gain or loss from investments. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at period end, resulting from changes in exchange rates.
Federal Income Taxes - The Fund makes no provision for federal income or excise tax. The Fund has qualified and intends to qualify each year as a regulated investment company ("RIC") under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. The Fund also intends to distribute sufficient net investment income and net realized capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Fund could incur a tax expense.
As of and during the six months ended April 30, 2022, the Fund did not have any liabilities for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations when incurred. During the period, the Fund did not incur any interest or penalties. Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three years tax year ends and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months.
Cash and Cash Equivalents - Idle cash may be swept into various interest bearing overnight demand deposits and is classified as a cash equivalent on the Statement of Assets and Liabilities. The Fund maintains cash in the bank deposit accounts which, at times, may exceed the Federal Deposit Insurance Corporation (FDIC) limit of $250,000. Amounts swept overnight are available on the next business day.
Expenses - Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds based on each fund's relative net assets or another appropriate basis (as determined by the Board). Expenses specifically attributable to any class are borne by that class. Income, realized gains and losses, unrealized appreciation and depreciation, and fund-wide expenses not allocated to a particular class shall be allocated to each class based on the net assets of that class in relation to the net assets of the entire fund.
Security Transactions and Related Income - The Fund follows industry practice and records security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statement and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis.
15
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements (continued) |
| April 30, 2022 (Unaudited) |
Dividends and Distributions - The Fund intends to distribute its net investment income and net realized long-term and short-term capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified among the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset value ("NAV") per share of the Fund.
Consolidation of Subsidiary - Standpoint Multi-Asset (Cayman) Fund, Ltd. - The Consolidated Schedules of Investments and Futures Contracts of the Fund include the investments of the CFC, which is a wholly-owned and controlled foreign subsidiary. The Fund consolidates the results of subsidiaries in which the Fund holds a controlling economic interest. Controlling economic interest is generally deemed to exist with investment interests comprising greater than 50% of the NAV of the subsidiary. However, the Fund may also consider qualitative aspects of control in determining if a controlling economic interest exists. These qualitative control considerations include the nature and organizational structure of the investment, as well as the Fund's ability to control the circumstances leading to majority ownership. All inter-company accounts and transactions have been eliminated in consolidation.
The Fund may invest up to 25% of its total assets in a controlled foreign subsidiary, which acts as an investment vehicle in order to effect certain investments consistent with the Fund's investment objectives and policies. As of April 30, 2022, the net assets of the CFC were $38,359,287, which represented 12.03% of the Fund's net assets.
| NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS |
The Fund values its portfolio securities at fair value as of the close of regular trading on the New York Stock Exchange ("NYSE") (normally 4:00 p.m. Eastern time) on each business day the NYSE is open for business. Fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained and available from sources independent of the reporting entity. Unobservable inputs are
16
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements (continued) |
| April 30, 2022 (Unaudited) |
inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below.
| ● | Level 1 - unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date |
| ● | Level 2 - other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| ● | Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments based on the best information available) |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy which is reported is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Equity securities that are traded on any stock exchange are generally valued at the last quoted sale price on the security's primary exchange. Lacking a last sale price, an exchange-traded security is generally valued at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued at the NASDAQ Official Closing Price. When using market quotations and when the market is considered active, the security is classified as a Level 1 security. In the event that market quotations are not readily available, or are considered unreliable due to market or other events, the Fund values its securities and other assets at fair value in accordance with policies established by and under the general supervision of the Board. Under these policies, the securities will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used.
Investments in mutual funds, including money market mutual funds, are generally priced at the ending NAV provided by the service agent of the mutual funds. These securities are categorized as Level 1 securities.
Futures contracts that the Fund invests in are valued at the settlement price established each day by the board of trade or exchange on which they are traded, and when the market is considered active, will generally be categorized as Level 1 securities.
In accordance with the Trust's valuation policies, the Adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single method exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of a security being valued by the Adviser would be the amount that the Fund might reasonably expect to receive upon the current sale. Methods that are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market prices of a similar freely traded security (including a derivative security or a basket of securities traded on other markets,
17
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements (continued) |
| April 30, 2022 (Unaudited) |
exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Fair-value pricing is permitted if, in the Adviser's opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Fund's NAV calculation that may affect a security's value, or the Adviser is aware of any other data that calls into question the reliability of market quotations.
The following is a summary of the inputs used to value the Fund's investments as of April 30, 2022:
| Valuation Inputs | ||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Exchange-Traded Funds | $ | 129,729,974 | $ | - | $ | - | $ | 129,729,974 | ||||||||
| Money Market Funds | 2,707,706 | - | - | 2,707,706 | ||||||||||||
| Long Futures Contracts(a) | 2,274,629 | - | - | 2,274,629 | ||||||||||||
| Short Futures Contracts(a) | 15,654,081 | - | - | 15,654,081 | ||||||||||||
| Total | $ | 150,366,390 | $ | - | $ | - | $ | 150,366,390 | ||||||||
| (a) | The amount shown represents the net unrealized appreciation/depreciation of the futures contracts. |
The Fund did not hold any investments at the end of the reporting period for which significant unobservable inputs (Level 3) were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period.
| NOTE 4. DERIVATIVE TRANSACTIONS |
Futures Contracts - The Fund may invest in futures contracts to hedge or manage risks associated with the Fund's securities investments or to obtain market exposure in an effort to generate returns. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral for the account of the broker (the Fund's agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by "marking to market" on a daily basis to reflect the market value of the contracts at the end of each day's trading. Variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund's basis in the contract. If the Fund is unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. The Fund segregates liquid securities having a value at least equal to the amount of the current obligation under any open futures contract.
18
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements (continued) |
| April 30, 2022 (Unaudited) |
The following tables identify the location and fair value of derivative instruments on the Consolidated Statement of Assets and Liabilities as of April 30, 2022, and the effect of derivative instruments on the Consolidated Statement of Operations for the six months ended April 30, 2022.
At April 30, 2022:
| Assets | Liabilities | |||||||
| Unrealized | Unrealized | |||||||
| Appreciation | Depreciation | |||||||
| on Futures | on Futures | |||||||
| Contract Type/ Primary Risk Exposure | Contracts* | Contracts* | ||||||
| Equity Contracts | $ | - | $ | (141,606 | ) | |||
| Foreign Exchange Contracts | 2,380,988 | (16,730 | ) | |||||
| Interest Rate Contracts | 12,496,262 | - | ||||||
| Commodity Contracts | 3,397,644 | (187,848 | ) |
| * | Includes cumulative appreciation/(depreciation) on futures contracts, as reported in the Consolidated Schedule of Future Contracts. Only current day's variation margin is reported within the Consolidated Statement of Assets and Liabilities. |
For the six months ended April 30, 2022:
| Foreign | ||||||||||||||||||||
| Commodity | Exchange | Equity | Interest | |||||||||||||||||
| Location | Contracts | Contracts | Contracts | Contracts | Total | |||||||||||||||
| Net realized gain (loss) on: | ||||||||||||||||||||
| Futures contracts | $ | 14,282,685 | $ | 1,293,474 | $ | (2,799,612 | ) | $ | (345,541 | ) | $ | 12,431,006 | ||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||
| Futures contracts | 1,101,504 | 1,873,019 | (924,186 | ) | 12,428,891 | 14,479,228 |
The following summarizes the average ending monthly fair value of derivatives outstanding during the six months ended April 30, 2022:
| Average Ending | ||||
| Monthly | ||||
| Fair Value/ | ||||
| Derivatives | Notional Value | |||
| Long Futures Contracts | $ | 85,975,364 | ||
| Short Futures Contracts | (261,979,498 | ) |
19
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements (continued) |
| April 30, 2022 (Unaudited) |
Balance Sheet Offsetting Information
The following table provides a summary of offsetting financial liabilities and derivatives and the effect of derivative instruments on the Statement of Assets and Liabilities as of April 30, 2022:
| Gross Amounts Not | ||||||||||||||||||||||||||||
| Offset in Consolidated | ||||||||||||||||||||||||||||
| Statement of Assets | ||||||||||||||||||||||||||||
| and Liabilities | ||||||||||||||||||||||||||||
| Net | ||||||||||||||||||||||||||||
| Amounts | ||||||||||||||||||||||||||||
| Gross | of Assets | |||||||||||||||||||||||||||
| Amounts | Presented | |||||||||||||||||||||||||||
| Offset in | in | |||||||||||||||||||||||||||
| Gross | Gross | Consolidated | Consolidated | |||||||||||||||||||||||||
| Amounts | Amounts | Statements | Statements | |||||||||||||||||||||||||
| of | of | of Assets | of Assets | |||||||||||||||||||||||||
| Recognized | Recognized | and | and | Financial | Collateral | Net | ||||||||||||||||||||||
| Assets | Liabilities | Liabilities | Liabilities | Instruments | Pledged | Amount | ||||||||||||||||||||||
| Variation Margin on Futures Contracts | $ | 1,140,740 | $ | (782,861 | ) | $ | - | $ | 357,879 | $ | - | $ | (357,879 | ) | $ | - |
NOTE 5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser, under the terms of the management agreement with the Trust with respect to the Fund (the "Agreement"), manages the Fund's investments. As compensation for its management services, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.24% of the Fund's average daily net assets. For the six months ended April 30, 2022, before the waiver described below, the Adviser earned a fee of $1,237,574 from the Fund. The Adviser has contractually agreed to waive its management fee and/or reimburse expenses so that total annual operating expenses (excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any amounts payable pursuant to a distribution or service plan adopted in accordance with Rule 12b-1 under the 1940 Act; any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Fund's business) do not exceed 1.24% of the Fund's average daily net assets through February 28, 2023. For the six months ended April 30, 2022, the Adviser waived fees of $252,913. At April 30, 2022, the Adviser was owed $251,326 from the Fund for management services.
20
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements (continued) |
| April 30, 2022 (Unaudited) |
Each fee waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date in which that particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. As of April 30, 2022 the Adviser may seek repayment of management fees waived and expense reimbursements pursuant to the aforementioned conditions, from the Fund no later than the dates stated below:
| Recoverable through | ||||
| October 31, 2023 | $ | 227,919 | ||
| October 31, 2024 | 357,806 | |||
| April 30, 2025 | 252,913 |
Ultimus Fund Solutions, LLC ("Ultimus") provides administration, fund accounting and transfer agent services to the Fund. The Fund pays Ultimus fees in accordance with the agreements for such services.
Northern Lights Compliance Services, LLC ("NLCS"), an affiliate of Ultimus, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives fees from the Fund, which are approved annually by the Board.
Under the terms of a Distribution Agreement with the Trust, Ultimus Fund Distributors, LLC (the "Distributor") serves as principal underwriter to the Fund. The Distributor is a wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Fund) for acting as principal underwriter.
Certain officers and a Trustee of the Trust are also employees of Ultimus and such persons are not paid by the Fund for serving in such capacities.
The Board supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires, or is removed. The Chairman of the Board and more than 75% of the Trustees are "Independent Trustees," which means that they are not "interested persons" as defined in the 1940 Act. Each Independent Trustee of the Trust receives annual compensation of $2,785 per fund from the Trust, except that the Chairman of the Audit Committee, the Chairman of the Governance & Nominating Committee, and the Chairman of the Pricing & Liquidity Committee each receives annual compensation of $3,235 per fund from the Trust, and the Independent Chairman of the Board receives $3,435 per fund from the Trust. Independent Trustees also receive $1,000 for attending any special meeting that requires an in person approval of a contract and $250 for the first hour and $200 for each additional hour for attending other special meetings. In addition, the Trust reimburses Independent Trustees for out-of-pocket expenses incurred in conjunction with attendance at meetings.
Each Director for the CFC receives $750 annual compensation from the Fund.
21
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements (continued) |
| April 30, 2022 (Unaudited) |
The Trust, with respect to the Fund, has adopted a Distribution Plan (the "Plan") for its Investor Class shares pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund will pay the Distributor, the Adviser and/or any registered securities dealer, financial institution or any other person (the "Recipient") a fee of 0.25% of the average daily net assets of the Investor Class shares in connection with the promotion and distribution of the Fund's Investor Class shares or the provision of personal services to shareholders, including, but not necessarily limited to, advertising, compensation to underwriters, dealers and selling personnel, the printing and mailing of prospectuses to other than current Fund shareholders, the printing and mailing of sales literature and servicing shareholder accounts ("12b-1 Expenses"). The Fund or Adviser may pay all or a portion of these fees to any Recipient who renders assistance in distributing or promoting the sale of shares, or who provides certain shareholder services, pursuant to a written agreement. For the six months ended April 30, 2022, Investor Class shares' 12b-1 Expenses incurred by the Fund were $22,986. The Fund owed $6,449 for Investor Class 12b-1 Expenses as of April 30, 2022.
NOTE 6. INVESTMENT TRANSACTIONS
For the six months ended April 30, 2022, purchases and sales of investment securities, other than short-term investments, were $84,753,929 and $0, respectively.
There were no purchases or sales of long-term U.S. government obligations during the six months ended April 30, 2022.
NOTE 7. FEDERAL TAX INFORMATION
At April 30, 2022, the net unrealized appreciation (depreciation) and tax cost of investments for tax purposes was as follows:
| Gross unrealized appreciation | $ | - | ||
| Gross unrealized depreciation | (8,267,338 | ) | ||
| Net unrealized appreciation/(depreciation) on investments | $ | (8,267,338 | ) | |
| Tax cost of investments | $ | 140,705,018 |
At October 31, 2021, the components of accumulated earnings (deficit) on a tax basis were as follows:
| Undistributed ordinary income | $ | 7,511,369 | ||
| Undistributed long term capital gains | 1,199,628 | |||
| Unrealized appreciation on investments | 5,620,889 | |||
| Total accumulated earnings | $ | 14,331,886 |
NOTE 8. COMMITMENTS AND CONTINGENCIES
The Trust indemnifies its officers and Trustees for certain liabilities that may arise from their performance of their duties to the Trust or the Fund. Additionally, in the normal course of business, the Trust enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
22
| Standpoint Multi-Asset Fund |
| Notes to the Consolidated Financial Statements (continued) |
| April 30, 2022 (Unaudited) |
NOTE 9. SUBSEQUENT EVENTS
Management of the Fund has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date at which these financial statements were issued. Based upon this evaluation, management has determined there were no items requiring adjustment of the financial statements or additional disclosure.
23
| Summary of Fund Expenses (Unaudited) |
As a shareholder of the Fund, you incur two types of costs: (1) transaction and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. You may pay brokerage commissions on purchases and sales of exchange-traded fund shares, which are not reflected in the example. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2021 through April 30, 2022.
Actual Expenses
The first line of the table for each class provides information about actual account values and actual expenses. You may use the information in these lines, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the first line under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table for each class provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table for each class is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if transaction costs were included, your costs would have been higher.
| Expenses | ||||||||
| Beginning | Ending | Paid | Annualized | |||||
| Account Value | Account Value | During | Expense | |||||
| November 1, 2021 | April 30, 2022 | Period(a) | Ratio | |||||
| Standpoint Multi-Asset Fund | ||||||||
| Institutional Class | ||||||||
| Actual | $1,000.00 | $1,046.20 | $6.29 | 1.24% | ||||
| Hypothetical(b) | $1,000.00 | $1,018.65 | $6.21 | 1.24% | ||||
| Investor Class | ||||||||
| Actual | $1,000.00 | $1,044.70 | $7.55 | 1.49% | ||||
| Hypothetical(b) | $1,000.00 | $1,017.41 | $7.45 | 1.49% |
| (a) | Expenses are equal to the Fund's annualized expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
| (b) | Hypothetical assumes 5% annual return before expenses. |
24
| Investment Advisory Agreement Approval (Unaudited) |
The Standpoint Multi-Asset Fund (the "Fund") is a series of Unified Series Trust (the "Trust"). The Trust's Board of Trustees (the "Board") oversees the management of the Fund and, as required by law, considered the approval of the renewal of the Fund's management agreement with its investment adviser, Standpoint Asset Management, LLC ("Standpoint"). In connection with such approval, the Board requested and evaluated all information that the Trustees deemed reasonably necessary under the circumstances.
The Trustees held a teleconference on November 10, 2021 to review and discuss materials compiled by Ultimus Fund Solutions, LLC, the Trust's administrator, with regard to the management agreement between the Trust and Standpoint and the management agreement between the CFC and Standpoint. At the Trustees' quarterly meeting held in November 2021, the Board (including the directors of the CFC) interviewed certain executives of Standpoint, including its Chief Operating Officer, its Chief Investment Officer and its Chief Compliance Officer. After discussion at the quarterly meeting in November 2021, the Trustees, including the Trustees who are not "interested persons" (as that term is defined in the Investment Company Act of 1940) of the Trust or Standpoint (the "Independent Trustees"), approved the renewal of the management agreement with Standpoint for an additional year. The approval of the management agreement was based on a consideration of all the information provided to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees' deliberations are described below, although individual Trustees may have evaluated this information differently, ascribing different weights to various factors.
(i) The Nature, Extent, and Quality of Services. The Trustees reviewed and considered information regarding the nature, extent, and quality of services that Standpoint provides to the Fund and the CFC, which include, but are not limited to, providing a continuous investment program for the Fund and the CFC, adhering to the Fund's investment restrictions, complying with the Trust's policies and procedures, and voting proxies on behalf of the Fund. The Trustees considered the qualifications and experience of Standpoint's portfolio managers who are responsible for the day-to-day management of the Fund's portfolio, as well as the qualifications and experience of the other individuals at Standpoint who provide services to the Fund and the CFC. The Trustees concluded that Standpoint has adequate resources and is providing excellent investment management services to the Fund, which includes management of the CFC, including the CFC.
(ii) Fund Performance. The Trustees next reviewed and discussed the Fund's performance for periods ended September 30, 2021. The Trustees observed that that Fund's Institutional Class had outperformed the Fund's blended benchmark index, the MSCI World (50%) and the ICE BofA U.S. 3-Month Treasury Bill (50%) for the one-year period and since inception. The Trustees noted that the Fund's Institutional Class outperformed both the average and median of its Morningstar Macro Trading category for the one-year period and since inception. It was the consensus of the Trustees that they are very satisfied with the performance of the Fund.
(iii) Fee Rate and Profitability. The Trustees reviewed a fee and expense comparison which indicated that the Fund's management fee and net expense ratio are higher than the average and median for funds in the Fund's Morningstar Macro Trading category, but noted the net expense ratio is only slightly higher than the category average. The Trustees also considered a profitability analysis prepared by Standpoint for its management of the Fund, including the CFC, which indicated that, both before and after the deduction of marketing expenses, Standpoint was not earning a profit as a result of managing the Fund as of September 30, 2021. They noted however, that assets of the Fund have grown and Standpoint is about to break even and will become profitable with respect to the
25
| Investment Advisory Agreement Approval (Unaudited) (continued) |
Fund. The Trustees considered other potential benefits that Standpoint may receive in connection with its management of the Fund and CFC, including third-party research obtained by soft dollars, and noted Standpoint's representation that it does not enter into soft dollar arrangements on behalf of the Fund. After considering the above information, the Trustees concluded that the management fee for the Fund and CFC represents reasonable compensation in light of the nature and quality of the services that Standpoint provides to the Fund and the CFC, the fees paid by competitive mutual funds, and the profitability of Standpoint's services to the Fund.
(iv) Economies of Scale. In determining the reasonableness of the management fee, the Trustees also considered the extent to which Standpoint will realize economies of scale as the Fund grows larger. The Trustees determined that, in light of the size of the Fund and Standpoint's lack of profitability in managing the Fund, it does not appear that Standpoint will realize benefits from economies of scale in managing the Fund to such an extent that the management fee for the Fund should be reduced or that breakpoints should be considered at this time.
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| Rev: August 2020 | ||
| FACTS | WHAT DOES STANDPOINT MULTI-ASSET FUND (THE "FUND") DO WITH YOUR PERSONAL INFORMATION? | |
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |
| What? |
The types of personal information we collect and share depend on the product or service you have with us. This information can include: ● Social Security number ● account balances and account transactions ● transaction or loss history and purchase history ● checking account information and wire transfer instructions When you are no longer our customer, we continue to share your information as described in this notice. |
|
| How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons the Fund chooses to share; and whether you can limit this sharing. | |
| Reasons we can share your personal information | Does the Fund share? | |
|
For our everyday business purposes- such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes | |
|
For our marketing purposes- to offer our products and services to you |
No | |
| For joint marketing with other financial companies | No | |
|
For our affiliates' everyday business purposes- information about your transactions and experiences |
No | |
|
For our affiliates' everyday business purposes- information about your creditworthiness |
No | |
| For nonaffiliates to market to you | No | |
| Questions? | Call (866) 738-1128 |
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| Who we are | |
|
Who is providing this notice? |
Standpoint Multi-Asset Fund Ultimus Fund Distributors, LLC (Distributor) Ultimus Fund Solutions, LLC (Administrator) |
| What we do | |
|
How does the Fund protect my personal information? |
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information. |
|
How does the Fund collect my personal information? |
We collect your personal information, for example, when you ● open an account or deposit money ● buy securities from us or sell securities to us ● make deposits or withdrawals from your account or provide account information ● give us your account information ● make a wire transfer ● tell us who receives the money ● tell us where to send the money ● show your government-issued ID ● show your driver's license |
|
Why can't I limit all sharing? |
Federal law gives you the right to limit only ● sharing for affiliates' everyday business purposes- information about your creditworthiness ● affiliates from using your information to market to you ● sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. |
| Definitions | |
| Affiliates |
Companies related by common ownership or control. They can be financial and nonfinancial companies. ● Standpoint Asset Management, LLC, the investment adviser to the Fund, could be deemed to be an affiliate. |
| Nonaffiliates |
Companies not related by common ownership or control. They can be financial and nonfinancial companies. ● The Fund does not share your personal information with nonaffiliates so they can market to you |
| Joint marketing |
A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ● The Fund doesn't jointly market. |
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| Other Information (Unaudited) |
The Fund's Statement of Additional Information ("SAI") includes additional information about the trustees and is available without charge, upon request. You may call toll-free at (866) 738-1128 to request a copy of the SAI or to make shareholder inquiries.
| Proxy Voting |
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the most recent twelve month period ended June 30, are available (1) without charge upon request by calling the Fund at (866) 738-1128 and (2) in Fund documents filed with the SEC on the SEC's website at www.sec.gov.
|
TRUSTEES
OFFICERS
INVESTMENT ADVISER
DISTRIBUTOR |
INDEPENDENT REGISTERED PUBLIC
LEGAL COUNSEL
CUSTODIAN
ADMINISTRATOR, TRANSFER AGENT |
This report is intended only for the information of shareholders or those who have received the Fund's prospectus which contains information about the Fund's management fee and expenses. Please read the prospectus carefully before investing.
Distributed by Ultimus Fund Distributors, LLC
Member FINRA/SIPC
Standpoint-SAR-22
Item 2. Code of Ethics. NOT APPLICABLE - disclosed with annual report
Item 3. Audit Committee Financial Expert. NOT APPLICABLE- disclosed with annual report
Item 4. Principal Accountant Fees and Services. NOT APPLICABLE - disclosed with annual report
Item 5. Audit Committee of Listed Companies. NOT APPLICABLE - applies to listed companies only
Item 6. Schedule of Investments. Schedule filed with Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. NOT APPLICABLE - applies to closed-end funds only
Item 8. Portfolio Managers of Closed-End Investment Companies. NOT APPLICABLE - applies to closed-end funds only
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. NOT APPLICABLE - applies to closed-end funds only
Item 10. Submission of Matters to a Vote of Security Holders.
The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant's board of trustees.
Item 11. Controls and Procedures.
(a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "Act")) as of a date within 90 days of the filing date of this report, the registrant's principal executive officer and principal financial officer have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the registrant is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b) There were no significant changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Investment Companies.
Not Applicable.
Item 13. Exhibits.
(a)(1) Not Applicable - filed with annual report
| (a)(2) | Certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 and required by Rule 30a-2under the Investment Company Act of 1940 are filed herewith. |
| (a)(3) | Not Applicable - there were no written solicitations to purchase securities under Rule 23c-1 during the period |
| (b) | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed herewith |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Unified Series Trust
By /s/ Martin R. Dean
Martin R. Dean, President
Date 7/6/2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /s/ Martin R. Dean
Martin R. Dean, President
Date 7/6/2022
By /s/ Zachary P. Richmond
Zachary P. Richmond, Treasurer
Date 7/6/2022