12/07/2021 | Press release | Distributed by Public on 12/07/2021 16:00
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CornerCap Fundametrics® Large-Cap ETF
Ticker: FUNL
SEMI ANNUAL REPORT TO SHAREHOLDERS
SEPTEMBER 30, 2021
TABLE OF CONTENTS
EXPENSE EXAMPLE | 1 | |
ALLOCATION OF PORTFOLIO HOLDINGS | 2 | |
SCHEDULE OF INVESTMENTS | 3 | |
STATEMENT OF ASSETS AND LIABILITIES | 8 | |
STATEMENT OF OPERATIONS | 9 | |
STATEMENTS OF CHANGES IN NET ASSETS | 10 | |
FINANCIAL HIGHLIGHTS | 11 | |
NOTES TO FINANCIAL STATEMENTS | 12 | |
ADDITIONAL INFORMATION | 17 | |
PRIVACY NOTICE | 20 |
CornerCap Fundametrics® Large-Cap ETF |
Expense Example (Unaudited) |
September 30, 2021 |
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs, including management fees, shareholder servicing fees, and other Fund expenses. This Example is 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 mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2021 to September 30, 2021 (the "period").
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 equals 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio 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 balance 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line of the table is useful in comparing the ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs could have been higher.
Expenses Paid During the Period
Beginning Account Value | Ending Account Value | Expenses Paid During the Period(1) | |||||||||||
Actual Fund Return | $ 1,000.00 | $ 1,047.90 | $ 2.57 | ||||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.56 | 2.54 |
(1) | Expenses are equal to the Fund's annualized expense ratio of 0.50%, multiplied by the average account value over the period, multiplied by 183/365. The expense ratios reflect an expense waiver. Assumes all dividends and distributions were reinvested. |
CornerCap Fundametrics® Large-Cap ETF |
Allocation of Portfolio Holdings (Unaudited) |
September 30, 2021 |
(Calculated as a percentage of Total Investments) |
CornerCap Fundametrics® Large-Cap ETF |
Schedule of Investments (Unaudited) |
September 30, 2021 |
Security Description | Shares | Value | ||||||
Common Stocks ― 99.9% | ||||||||
Aerospace/Defense ― 2.8% | ||||||||
General Dynamics Corp. | 2,252 | $ | 441,460 | |||||
L3Harris Technologies, Inc. | 3,993 | 879,418 | ||||||
Lockheed Martin Corp. | 2,055 | 709,180 | ||||||
Northrop Grumman Corp. | 2,391 | 861,119 | ||||||
Total Aerospace/Defense | 2,891,177 | |||||||
Agriculture ― 1.5% | ||||||||
Altria Group, Inc. | 15,391 | 700,598 | ||||||
Philip Morris International, Inc. | 8,690 | 823,725 | ||||||
Total Agriculture | 1,524,323 | |||||||
Apparel ― 0.7% | ||||||||
VF Corp. | 10,521 | 704,802 | ||||||
Total Apparel | 704,802 | |||||||
Auto Manufacturers ― 1.1% | ||||||||
Cummins, Inc. | 3,072 | 689,848 | ||||||
PACCAR, Inc. | 5,190 | 409,595 | ||||||
Total Auto Manufacturers | 1,099,443 | |||||||
Banks ― 11.0% | ||||||||
Bank of New York Mellon Corp./The | 17,400 | 902,016 | ||||||
Citigroup, Inc. | 11,833 | 830,440 | ||||||
Citizens Financial Group, Inc. | 18,549 | 871,432 | ||||||
Comerica, Inc. | 11,544 | 929,292 | ||||||
Goldman Sachs Group, Inc./The | 2,246 | 849,055 | ||||||
Huntington Bancshares, Inc./OH | 52,747 | 815,469 | ||||||
JPMorgan Chase & Co. | 5,152 | 843,331 | ||||||
KeyCorp | 39,728 | 858,919 | ||||||
M&T Bank Corp. | 6,040 | 902,014 | ||||||
Regions Financial Corp. | 38,318 | 816,557 | ||||||
Truist Financial Corp. | 13,756 | 806,789 | ||||||
US Bancorp | 13,860 | 823,838 | ||||||
Wells Fargo & Co. | 20,704 | 960,873 | ||||||
Total Banks | 11,210,025 | |||||||
Beverages ― 1.5% | ||||||||
Coca-Cola Co/The | 14,689 | 770,732 | ||||||
Constellation Brands, Inc. - Class A | 3,444 | 725,616 | ||||||
Total Beverages | 1,496,348 | |||||||
Biotechnology ― 1.5% | ||||||||
Amgen, Inc. | 3,174 | 674,951 | ||||||
Gilead Sciences, Inc. | 11,942 | 834,149 | ||||||
Total Biotechnology | 1,509,100 | |||||||
Chemicals ― 3.6% | ||||||||
CF Industries Holdings, Inc. | 17,397 | 971,101 | ||||||
Dow, Inc. | 12,641 | 727,616 | ||||||
Eastman Chemical Co. | 6,920 | 697,121 | ||||||
FMC Corp. | 6,668 | 610,522 | ||||||
LyondellBasell Industries NV - Class A | 7,638 | 716,826 | ||||||
Total Chemicals | 3,723,186 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF |
Schedule of Investments (Unaudited) (Continued) |
September 30, 2021 |
Security Description | Shares | Value | ||||||
Commercial Services ― 1.6% | ||||||||
FleetCor Technologies, Inc.* | 3,306 | $ | 863,759 | |||||
Global Payments, Inc. | 4,569 | 719,983 | ||||||
Total Commercial Services | 1,583,742 | |||||||
Computers ― 2.4% | ||||||||
Leidos Holdings, Inc. | 7,840 | 753,659 | ||||||
NetApp, Inc. | 9,106 | 817,355 | ||||||
Western Digital Corp.* | 14,962 | 844,455 | ||||||
Total Computers | 2,415,469 | |||||||
Diversified Financial Services ― 4.5% | ||||||||
CBOE Global Markets, Inc. | 7,498 | 928,702 | ||||||
Capital One Financial Corp. | 5,803 | 939,912 | ||||||
Discover Financial Services | 7,823 | 961,056 | ||||||
Synchrony Financial | 19,030 | 930,186 | ||||||
Visa, Inc. - Class A | 3,619 | 806,132 | ||||||
Total Diversified Financial Services | 4,565,988 | |||||||
Electric ― 5.0% | ||||||||
Ameren Corp. | 10,159 | 822,879 | ||||||
American Electric Power Co., Inc. | 9,283 | 753,594 | ||||||
Avangrid, Inc. | 7,259 | 352,787 | ||||||
Duke Energy Corp. | 7,789 | 760,129 | ||||||
Edison International | 13,450 | 746,071 | ||||||
PPL Corp. | 27,932 | 778,744 | ||||||
Southern Co./The | 13,538 | 838,950 | ||||||
Total Electric | 5,053,154 | |||||||
Electrical Components & Equipment ― 0.8% | ||||||||
Emerson Electric Co. | 8,925 | 840,735 | ||||||
Total Electrical Components & Equipment | 840,735 | |||||||
Electronics ― 0.8% | ||||||||
TE Connectivity Ltd. | 5,780 | 793,132 | ||||||
Total Electronics | 793,132 | |||||||
Entertainment ― 0.9% | ||||||||
Caesars Entertainment, Inc.* | 8,385 | 941,468 | ||||||
Total Entertainment | 941,468 | |||||||
Food ― 2.8% | ||||||||
Campbell Soup Co. | 7,600 | 317,756 | ||||||
General Mills, Inc. | 14,572 | 871,697 | ||||||
Sysco Corp. | 10,600 | 832,100 | ||||||
Tyson Foods, Inc. - Class A | 10,792 | 851,921 | ||||||
Total Food | 2,873,474 | |||||||
Forest Products & Paper ― 0.8% | ||||||||
International Paper Co. | 13,946 | 779,860 | ||||||
Total Forest Products & Paper | 779,860 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF |
Schedule of Investments (Unaudited) (Continued) |
September 30, 2021 |
Security Description | Shares | Value | ||||||
Health Care ― 5.7% | ||||||||
Abbott Laboratories | 6,914 | $ | 816,751 | |||||
Boston Scientific Corp.* | 19,797 | 858,992 | ||||||
HCA Healthcare, Inc. | 3,647 | 885,200 | ||||||
Medtronic Plc | 6,407 | 803,117 | ||||||
Stryker Corp. | 3,054 | 805,401 | ||||||
Universal Health Services, Inc. - Class B | 5,735 | 793,552 | ||||||
Zimmer Biomet Holdings, Inc. | 5,632 | 824,299 | ||||||
Total Health Care | 5,787,312 | |||||||
Home Builders ― 1.9% | ||||||||
DR Horton, Inc. | 9,132 | 766,814 | ||||||
Lennar Corp. - Class A | 4,301 | 402,918 | ||||||
NVR, Inc.* | 169 | 810,199 | ||||||
Total Home Builders | 1,979,931 | |||||||
Insurance ― 4.1% | ||||||||
American International Group, Inc. | 17,044 | 935,545 | ||||||
Fidelity National Financial, Inc. | 18,982 | 860,644 | ||||||
Principal Financial Group, Inc. | 12,807 | 824,771 | ||||||
Prudential Financial, Inc. | 8,167 | 859,168 | ||||||
Travelers Cos, Inc./The | 4,904 | 745,457 | ||||||
Total Insurance | 4,225,585 | |||||||
Internet ― 4.8% | ||||||||
Alphabet, Inc. - Class A* | 577 | 1,542,621 | ||||||
Booking Holdings, Inc.* | 391 | 928,183 | ||||||
Facebook, Inc. - Class A* | 2,638 | 895,311 | ||||||
Pinterest, Inc. - Class A* | 15,241 | 776,529 | ||||||
Roku, Inc. - Class A* | 2,551 | 799,356 | ||||||
Total Internet | 4,942,000 | |||||||
Machinery ― 1.4% | ||||||||
Caterpillar, Inc. | 3,647 | 700,114 | ||||||
Deere & Co. | 2,240 | 750,557 | ||||||
Total Machinery | 1,450,671 | |||||||
Miscellaneous Manufacturing― 2.3% | ||||||||
3M Co. | 4,068 | 713,608 | ||||||
Parker-Hannifin Corp. | 2,750 | 768,955 | ||||||
Textron, Inc. | 11,675 | 815,032 | ||||||
Total Miscellaneous Manufacturing | 2,297,595 | |||||||
Oil and Gas ― 5.2% | ||||||||
Diamondback Energy, Inc. | 10,460 | 990,248 | ||||||
EOG Resources, Inc. | 11,517 | 924,470 | ||||||
Exxon Mobil Corp. | 13,805 | 812,010 | ||||||
Marathon Petroleum Corp. | 14,149 | 874,550 | ||||||
Occidental Petroleum Corp. | 32,882 | 972,649 | ||||||
Schlumberger NV | 26,029 | 771,500 | ||||||
Total Oil and Gas | 5,345,427 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF |
Schedule of Investments (Unaudited) (Continued) |
September 30, 2021 |
Security Description | Shares | Value | ||||||
Pharmaceuticals ― 5.0% | ||||||||
AbbVie, Inc. | 6,927 | $ | 747,215 | |||||
Bristol-Myers Squibb Co. | 12,865 | 761,222 | ||||||
Cigna Corp. | 3,316 | 663,731 | ||||||
Johnson & Johnson | 5,068 | 818,482 | ||||||
Merck & Co., Inc. | 10,393 | 780,618 | ||||||
Pfizer, Inc. | 30,097 | 1,294,472 | ||||||
Total Pharmaceuticals | 5,065,740 | |||||||
Pipelines ― 0.8% | ||||||||
Kinder Morgan, Inc. | 50,698 | 848,178 | ||||||
Total Pipelines | 848,178 | |||||||
Private Equity ― 0.8% | ||||||||
Carlyle Group Inc/The | 17,161 | 811,372 | ||||||
Total Private Equity | 811,372 | |||||||
Real Estate Investment Trusts (REITs) ― 5.4% | ||||||||
Boston Properties, Inc. | 3,655 | 396,019 | ||||||
Cousins Properties, Inc. | 11,263 | 419,997 | ||||||
Gaming and Leisure Properties, Inc. | 8,555 | 396,268 | ||||||
Healthcare Trust of America, Inc. - Class A | 16,242 | 481,738 | ||||||
Host Hotels & Resorts, Inc.* | 26,790 | 437,481 | ||||||
Invitation Homes, Inc. | 11,629 | 445,739 | ||||||
Lamar Advertising Co. - Class A | 4,084 | 463,330 | ||||||
Medical Properties Trust, Inc. | 21,764 | 436,803 | ||||||
National Retail Properties, Inc. | 9,149 | 395,145 | ||||||
PS Business Parks, Inc. | 2,743 | 429,938 | ||||||
Public Storage | 1,559 | 463,179 | ||||||
Spirit Realty Capital, Inc. | 8,344 | 384,158 | ||||||
Sun Communities, Inc. | 2,182 | 403,888 | ||||||
Total Real Estate Investment Trusts (REITs) | 5,553,683 | |||||||
Retail ― 4.0% | ||||||||
Best Buy Co., Inc. | 6,675 | 705,614 | ||||||
Darden Restaurants, Inc. | 5,724 | 867,015 | ||||||
McDonald's Corp. | 3,675 | 886,079 | ||||||
O'Reilly Automotive, Inc.* | 1,354 | 827,375 | ||||||
Starbucks Corp. | 7,198 | 794,012 | ||||||
Total Retail | 4,080,095 | |||||||
Semiconductors ― 3.4% | ||||||||
Broadcom, Inc. | 887 | 430,133 | ||||||
Intel Corp. | 10,230 | 545,054 | ||||||
Micron Technology, Inc. | 11,961 | 848,992 | ||||||
ON Semiconductor Corp.* | 19,956 | 913,386 | ||||||
Qorvo, Inc.* | 4,510 | 754,027 | ||||||
Total Semiconductors | 3,491,592 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF |
Schedule of Investments (Unaudited) (Continued) |
September 30, 2021 |
Security Description | Shares | Value | ||||||
Software ― 6.6% | ||||||||
Activision Blizzard, Inc. | 5,055 | $ | 391,206 | |||||
Autodesk, Inc.* | 2,891 | 824,426 | ||||||
Cerner Corp. | 10,158 | 716,342 | ||||||
Fidelity National Information Services, Inc. | 6,390 | 777,535 | ||||||
Fiserv, Inc.* | 7,663 | 831,436 | ||||||
Oracle Corp. | 9,126 | 795,148 | ||||||
SS&C Technologies Holdings, Inc. | 10,809 | 750,145 | ||||||
Take-Two Interactive Software, Inc. * | 5,295 | 815,801 | ||||||
VMware, Inc. - Class A * | 5,341 | 794,207 | ||||||
Total Software | 6,696,246 | |||||||
Telecommunications ― 2.2% | ||||||||
AT&T, Inc. | 26,797 | 723,787 | ||||||
Cisco Systems, Inc. | 13,805 | 751,406 | ||||||
Verizon Communications, Inc. | 14,109 | 762,027 | ||||||
Total Telecommunications | 2,237,220 | |||||||
Transportation ― 2.3% | ||||||||
CSX Corp. | 23,769 | 706,890 | ||||||
FedEx Corp. | 2,799 | 613,793 | ||||||
Norfolk Southern Corp. | 1,666 | 398,590 | ||||||
Union Pacific Corp. | 3,363 | 659,182 | ||||||
Total Transportation | 2,378,455 | |||||||
Total Common Stocks (Cost ― $93,238,087) | $ | 101,196,528 | ||||||
Short-Term Investment ― 0.7% | ||||||||
First American Government Obligations Fund - Class X - 0.03% (a) | 716,128 | 716,128 | ||||||
Total Short-Term Investment (Cost ― $716,128 ) | $ | 716,128 | ||||||
Total Investments ― 99.9% (Cost ― $93,954,215) | 101,912,656 | |||||||
Other Assets in Excess of Liabilities ― 0.1% | 61,778 | |||||||
Total Net Assets ― 100.0% | $ | 101,974,434 |
PLC - Public Limited Company
* Non-income producing security.
(a) The rate reported is the annualized seven-day yield at period end.
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
Statement of Assets and Liabilities (Unaudited)
September 30, 2021
Assets: | ||||
Investments in securities at value (cost $93,954,215) | $ | 101,912,656 | ||
Receivables: | ||||
Dividends and interest | 145,503 | |||
Total assets | 102,058,159 | |||
Liabilities: | ||||
Payables: | ||||
Due to Investment Adviser | 83,725 | |||
Total liabilities | 83,725 | |||
Net Assets | $ | 101,974,434 | ||
Components of Net Assets: | ||||
Paid-in capital | $ | 85,231,164 | ||
Total accumulated income | 16,743,270 | |||
Net Assets | $ | 101,974,434 | ||
Net Assets | $ | 101,974,434 | ||
Shares Outstanding (unlimited number of shares authorized, no par value) | 3,045,000 | |||
Net asset value, offering and redemption price per share | $ | 33.49 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
Statement of Operations (Unaudited)
For the Six Months Ended September 30, 2021
Investment Income: | ||||
Dividend income | $ | 1,119,195 | ||
Interest income | 248 | |||
Total investment income | 1,119,443 | |||
Expenses: | ||||
Advisory fees | 258,430 | |||
Total expenses | 258,430 | |||
Net investment income | 861,013 | |||
Realized and Unrealized Gain on Investments and In-Kind Redemptions | ||||
Net realized gain (loss) on: | ||||
Investments | (244,328 | ) | ||
In-Kind Redemptions | 7,813,873 | |||
Net realized gain | 7,569,545 | |||
Net change in unrealized appreciation/depreciation on investments | (3,870,653 | ) | ||
Net realized and unrealized gain on investments and in-kind redemptions | 3,698,892 | |||
Net Increase in Net Assets Resulting from Operations | $ | 4,559,905 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
Statement of Changes in Net Assets
For the Six Months Ended September 30, 2021 (Unaudited) |
For the Period |
|||||||
Operations: | ||||||||
Net investment income
|
$ | 861,013 | $ | 603,309 | ||||
Net realized gain on investments and in-kind redemptions
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7,569,545 | 3,138,598 | ||||||
Net change in unrealized appreciation/depreciation on investments
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(3,870,653 | ) | 11,829,094 | |||||
Net increase in net assets resulting from operations
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4,559,905 | 15,571,001 | ||||||
Distributions to shareholders: | ||||||||
Net Investment Income
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- | (259,883 | ) | |||||
Total distributions to shareholders
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- | (259,883 | ) | |||||
Capital Transactions: | ||||||||
Proceeds from shares sold
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41,552,004 | 96,397,320 | ||||||
Cost of shares repurchased
|
(40,972,643 | ) | (14,873,270 | ) | ||||
Net increase in net assets from capital transactions
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579,361 | 81,524,050 | ||||||
Total Increase in Net Assets
|
5,139,266 | 96,835,168 | ||||||
Net Assets: | ||||||||
Beginning of period
|
96,835,168 | - | ||||||
End of period
|
$ | 101,974,434 | $ | 96,835,168 | ||||
Capital Share Transactions: | ||||||||
Shares sold
|
1,230,000 | 3,540,000 | ||||||
Shares repurchased
|
(1,215,000 | ) | (510,000 | ) | ||||
Net increase in shares outstanding | 15,000 | 3,030,000 |
* Commencement of operations on August 19, 2020.
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
Financial Highlights
For a capital share outstanding throughout the period:
For the Period Ended September 30, 2021 (Unaudited) |
For the Period |
|||||||
Net Asset Value, Beginning of Period | $ | 31.96 | $ | 25.00 | ||||
Gain from Investment Operations: | ||||||||
Net investment income (1) | 0.28 | 0.33 | ||||||
Net realized and unrealized gain on investments | 1.25 | 6.76 | ||||||
Total Gain from Investment Operations | 1.53 | 7.09 | ||||||
Less Distributions: | ||||||||
Net investment income | 0.00 | (0.13 | ) | |||||
Total Distributions | 0.00 | (0.13 | ) | |||||
Net Asset Value, End of Period | $ | 33.49 | $ | 31.96 | ||||
Total Return (2) | 4.79 | % | 28.41 | % | ||||
Supplemental Data and Ratios: | ||||||||
Net assets, end of period (in thousands) | $ | 101,974 | $ | 96,835 | ||||
Ratio of expenses to average net assets (3) | 0.50 | % | 0.50 | % | ||||
Ratio of net investment income to average net assets (3) | 1.67 | % | 1.89 | % | ||||
Portfolio turnover rate (2) (4) | 8 | % | 6 | % |
* Commencement of operations on August 19, 2020.
(1) Per share amounts have been calculated using average shares method.
(2) Not Annualized.
(3) Annualized.
(4) Portfolio turnover rate excludes securities received or delivered in-kind.
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
Notes to Financial Statements (Unaudited)
September 30, 2021
Note 1 - Organization
CornerCap Fundametrics® Large-Cap ETF (the "Fund") is a diversified series of Trust for Advised Portfolios (the "Trust"). The Trust, a Delaware Statutory Trust, is registered under the Investment Company Act of 1940, as amended (the "1940 Act") as an open-end investment management company. CornerCap Investment Counsel, Inc. (the "Adviser") serves as the investment manager to the Fund. The inception date of the Fund was August 19, 2020. The investment objective of the Fund seeks long-term capital appreciation.
Shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc. ("Cboe" or the "Exchange"). Market prices for the shares may be different from their net asset value ("NAV"). The Fund issues and redeems shares on a continuous basis at NAV only in large blocks of shares, called "Creation Units," which generally consist of 25,000 shares. Creation Units are issued and redeemed principally in-kind for securities included in a specified universe. Once created, shares generally trade in the secondary market at market prices that change throughout the day in amounts less than a Creation Unit. Except when aggregated in Creation Units, shares are not redeemable securities of a Fund. Shares of a Fund may only be purchased directly from or redeemed directly to a Fund by certain financial institutions ("Authorized Participants"). An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with Quasar Distributors, LLC (the "Distributor"). Most retail investors do not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, most retail investors may purchase shares in the secondary market with the assistance of a broker and are subject to customary brokerage commissions or fees.
Note 2 - Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP") for investment companies. The Fund is considered an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946. The presentation 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 income and expenses during the period reported. Actual results may differ from those estimates.
(a) Securities Valuation - Investments in securities traded on a national securities exchange are valued at the last reported sales price on the exchange on which the security is principally traded. Securities traded on the NASDAQ exchanges are valued at the NASDAQ Official Closing Price ("NOCP"). Exchange-traded securities for which no sale was reported and NASDAQ securities for which there is no NOCP are valued at the mean of the most recent quoted bid and ask prices. Unlisted securities held by the Fund are valued at the last sale price in the over-the-counter ("OTC") market. If there is no trading on a particular day, the mean between the last quoted bid and ask price is used.
CornerCap Fundametrics® Large-Cap ETF
Notes to Financial Statements (Unaudited) (Continued)
September 30, 2021
Equity securities that are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.
Short-term investments classified as money market instruments are valued at net asset value ("NAV"). These investments are categorized as Level 1 of the fair value hierarchy.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized into three broad levels and described below:
|
Level 1 | - | quoted prices in active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value. |
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Level 2 | - | observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data. |
|
Level 3 | - | significant unobservable inputs, including the Fund's own assumptions in determining the fair value of investments. |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to fair value the Fund's investments in each category investment type as of September 30, 2021:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 101,196,528 | $ | - | $ | - | $ | 101,196,528 | ||||||||
Short-Term Investment | 716,128 | - | - | 716,128 | ||||||||||||
Total | $ | 101,912,656 | $ | - | $ | - | $ | 101,912,656 |
See the Schedule of Investments for further detail of investment classifications.
(b) Securities Transactions, Investment Income and Distributions - The Fund records security transactions based on trade date. Realized gains and losses on sales of securities are reported based on identified cost of securities delivered. Dividend income and expense are recognized on the ex-dividend date, and interest income and expense are recognized on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Trust's understanding of the applicable country's tax rules and rates. Trust-level expenses are allocated across the series of the Trust.
CornerCap Fundametrics® Large-Cap ETF
Notes to Financial Statements (Unaudited) (Continued)
September 30, 2021
(c) Distributions to shareholders - Distributions from net investment income and distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.
(d) Federal Income Taxes - The Fund has elected to be taxed as a Regulated Investment Company ("RIC") under the U.S. Internal Revenue Code of 1986, as amended, and intends to maintain this qualification and to distribute substantially all net taxable income to its shareholders. Therefore, no provision is made for federal income taxes. Due to the timing of dividend distributions and the differences in accounting for income and realized gains and losses for financial statement and federal income tax purpose, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses is recorded by the Fund.
As of and during the period ended September 30, 2021, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as interest expense and other expense for penalties in the statement of operations. During the period, the Fund did not incur any interest or tax penalties. The Fund has not currently filed any tax returns; generally, tax authorities can examine tax returns filed for the preceding three years.
(e) REIT distribution - The character of distributions received from Real Estate Investment Trusts (''REITs'') held by the Fund is generally comprised of net investment income, capital gains, and return of capital. It is the policy of the Fund to estimate the character of distributions received from underlying REITs based on historical data provided by the REITs. After each calendar year end, REITs report the actual tax character of these distributions. Differences between the estimated and actual amounts reported by the REITs are reflected in the Fund's records in the year in which they are reported by the REITs by adjusting related investment cost basis, capital gains and income, as necessary.
Note 3 - Investment Management Agreement and Other Related Party Transactions
The Trust has an agreement with the Adviser to furnish investment advisory services to the Fund. Under the terms of this agreement, the Fund will pay the Adviser a monthly fee based on the Fund's average daily net assets at annual rate of 0.50%. Additionally, the Adviser is responsible for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services. The Adviser is not responsible for, and the Fund will bear the cost of, (i) interest expense, (ii) taxes, (iii) brokerage expenses and other expenses connected with the execution of portfolio securities transactions, (iv) dividends and expenses associated with securities sold short, (v) non-routine expenses and fees, and (vi) expenses paid by the Trust under any plan adopted pursuant to Rule 12b-1 under the 1940 Act.
CornerCap Fundametrics® Large-Cap ETF
Notes to Financial Statements (Unaudited) (Continued)
September 30, 2021
U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services ("Fund Services"), serves as the Fund's administrator and fund accountant and transfer agent. The officers of the Trust are employees of Fund Services. U.S. Bank serves as the Fund's custodian and provides compliance services to the Fund. Quasar Distributors, LLC ("Quasar" or the "Distributor") acts as the Fund's distributor and principal underwriter.
Note 4 - Investment Transactions
Purchases and sales of investment securities (excluding short-term securities, in-kind transactions, and U.S. government obligations) for the period ended September 30, 2021, were as follows:
Purchases | $ | 45,554,786 | |||
Sales | $ | 7,803,690 |
Purchases and sales of in-kind transactions associated with creations and redemptions during the period ended September 30, 2021, were as follows:
Purchases In-Kind | $ | 4,467,620 | ||
Sales In-Kind | $ | 40,032,253 |
Note 5 - Commitments and Contingencies
In the normal course of business, the Fund enters into contracts that provide general indemnifications by the Fund to the counterparty to the contract. The Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.
Note 6 - Subsequent Events
Management has evaluated events and transactions that occurred subsequent to September 30, 2021 through the date the financial statements have been issued and has determined that there were no significant subsequent events that would require adjustment to or additional disclosure in these financial statements.
Note 7 - COVID-19 Risk
The global outbreak of COVID-19 (commonly referred to as "coronavirus") has disrupted economic markets and the prolonged economic impact is uncertain. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Fund invest depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Fund's investments, impair the Fund's ability to satisfy redemption requests, and negatively impact the Fund's performance.
CornerCap Fundametrics® Large-Cap ETF
Notes to Financial Statements (Unaudited) (Continued)
September 30, 2021
Note 8 - Federal Income Tax Information
At March 31, 2021, the components of accumulated earnings (losses) for federal income tax purposes were as follows:
Tax Cost of Investments | $ | 84,923,777 | ||
Unrealized Appreciation | 12,382,277 | |||
Unrealized Depreciation | (555,380 | ) | ||
Net Unrealized Appreciation on Investments | 11,826,897 | |||
Undistributed Ordinary Income | 351,372 | |||
Undistributed Long-Term Capital Gains | 5,096 | |||
Total Distributable Earnings | 356,468 | |||
Total Accumulated Income | $ | 12,183,365 |
The difference between book basis and tax basis unrealized appreciation/depreciation is attributable in part to the tax deferral of losses on wash sales.
GAAP requires that certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended March 31, 2021, permanent differences in book and tax accounting have been reclassified to capital, and accumulated income as follows:
Accumulated Income | Paid In Capital |
$ (3,127,753) | $ 3,127,753 |
The tax character of distributions paid during the year ended March 31, 2021 was as follows:
Year Ended | |||
Distributions Paid From: | March 31, 2021 | ||
Ordinary Income | $ | 259,883 | |
Total Distributions Paid | $ | 259,883 |
The Fund is required, in order to meet certain excise tax requirements, to measure and distribute annually, net capital gains realized during the twelve-month period ending October 31. In connection with this requirement, the Fund is permitted, for tax purposes, to defer into its next fiscal year any net capital losses incurred from November 1 through the end of the fiscal year. Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. As of March 31, 2021, the Fund had no late-year or post-October losses.
At March 31, 2021, the Fund did not have any capital loss carryforwards.
CornerCap Fundametrics® Large-Cap ETF
Additional Information (Unaudited)
September 30, 2021
Quarterly Portfolio Schedule
The Fund files its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission (SEC) on Part F of Form N-PORT. The Fund's Form N-PORT is available without charge by visiting the SEC's Web site at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.
Proxy Voting
You may obtain a description of the Fund's proxy voting policy and voting records, without charge, upon request by contacting the Fund directly at 1-800-617-0004 or on the EDGAR Database on the SEC's website at ww.sec.gov. The Fund files its proxy voting records annually as of June 30, with the SEC on Form N-PX. The Fund's Form N-PX is available without charge by visiting the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.
Statement Regarding Liquidity Risk Management Program
The Fund has adopted a liquidity risk management program. The Fund's Board has designated the Operational Risk Committee ("Committee") of the Adviser to serve as the administrator of the program. The Committee conducts the day-to-day operation of the program pursuant to policies and procedures administered by the Committee.
Under the program, the Committee manages the Fund's liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders' interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund's investments, limiting the amount of the Fund's illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. The Committee's process of determining the degree of liquidity of the Fund's investments is supported by one or more third-party liquidity assessment vendors.
The Fund's Board reviewed a report prepared by the committee regarding the operation and effectiveness of the program for the period January 1, 2020 through December 31, 2020. No liquidity events impacting the Fund were noted in the report. In addition, the committee provided its assessment that the program had been effective in managing the Fund's liquidity risk.
Frequency Distribution of Premiums and Discounts
Information regarding how often shares of each Fund traded on the Exchange at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV is available on the Fund's website at www.cornercapfunl-etf.com.
Approval of Investment Advisory Agreement
At a meeting held on August 12-13, 2021, the Board of Trustees (the "Board") of Trust for Advised Portfolios (the "Trust"), including all the Trustees who are not "interested persons" of the Trust ("Independent Trustees"), as that term is defined in the Investment Company Act of 1940, considered and approved the investment advisory agreement ("Advisory Agreement") with CornerCap Investment Counsel, Inc. ("Adviser") for the CornerCap Fundametrics Large-Cap ETF ("Fund").
CornerCap Fundametrics® Large-Cap ETF
Additional Information (Unaudited)
September 30, 2021
Ahead of the August meeting, the Board received and reviewed substantial information regarding the Fund, the Adviser and the services provided by the Adviser to the Fund under the Advisory Agreement. This information formed the primary (but not exclusive) basis for the Board's determinations. The information prepared specifically for the annual review of the Advisory Agreement supplemented the information provided to the Board and its committees throughout the year. The Board and its committees met regularly during the year and the information provided and topics discussed at such meetings were relevant to the review of the Advisory Agreement. Some of these reports and other data included, among other things, materials that outlined the investment performance of the Fund; compliance, regulatory, and risk management matters; the trading practices of the Adviser; valuation of investments; fund expenses; and overall market and regulatory developments. The Trustees considered the review of the Advisory Agreement to be an ongoing process and employed the accumulated information, knowledge, and experience they had gained during their tenure on the Board governing the Fund and working with the Adviser in their review of the Advisory Agreement. The Independent Trustees were advised by independent legal counsel during the annual review process as well as throughout the year, including meeting in executive sessions with such counsel without representatives from the Adviser present. In connection with their annual review, the Independent Trustees also received a memorandum from independent legal counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreement.
In considering the continuance of the Advisory Agreement, the Board considered the following factors and made the following determinations. In its deliberations, the Board did not identify any single factor or piece of information as all important, controlling, or determinative of its decision, and each Trustee may have attributed different weights to the various factors and information.
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● | In considering the nature, extent and quality of the services provided by the Adviser, the Trustees considered the Adviser's specific responsibilities in all aspects of the day-to-day management of the Fund, as well as the qualifications, experience and responsibilities of the portfolio managers and other key personnel who are involved in the day-to-day activities of the Fund. The Board also considered the Adviser's resources and compliance structure, including information regarding its compliance program, chief compliance officer, and compliance record, and its disaster recovery/business continuity plan, including how the Adviser has operated through the COVID- 19 pandemic. The Board also considered the existing relationship between the Adviser and the Trust, as well as the Board's knowledge of the Adviser's operations, and noted that during the course of the year it met with representatives of the Adviser to discuss fund performance and investment outlook, as well as various marketing and compliance topics, including the Adviser's risk management process. The Board concluded that the Adviser had sufficient quality and depth of personnel, resources, investment methods and compliance policies and procedures essential to performing its duties under the Advisory Agreement and that, in the Board's view, the nature, overall quality, and extent of the management services provided were and would continue to be satisfactory and reliable. |
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● | In assessing the quality of the portfolio management delivered by the Adviser, the Board reviewed the performance of the Fund on both an absolute basis and in comparison to its peer group, relevant benchmark index, and a comparable composite of accounts managed by the Adviser. The Board considered that the Fund had outperformed relative to its peer group average/median and its benchmark index for the year-to-date period as of June 30, 2021. The Board noted that the Fund had a performance record of less than one year as of June 30, 2021. |
CornerCap Fundametrics® Large-Cap ETF
Additional Information (Unaudited)
September 30, 2021
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● | The Trustees also reviewed the cost of the services, and the structure and level of advisory fees payable by the Fund, including a comparison of the fee to fees payable by a peer group of funds. The Board noted that the Fund has a unitary fee under which the Adviser pays all fees to its service providers. The Board noted that the Fund's advisory fee and net expense ratio was lower than its peer group median/average. After reviewing the materials that were provided, the Trustees concluded that the fee to be received by the Adviser was fair and reasonable. |
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● | The Trustees considered whether, based on the asset size of the Fund, economies of scale had been achieved. The Board also considered the Adviser's commitment to the unitary fee model would keep the net expense ratio of the Fund fixed. The Trustees concluded that they will have the opportunity to periodically reexamine whether economies of scale have been achieved. |
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● | The Trustees considered the profitability of the Adviser from managing the Fund. In assessing the Adviser's profitability, the Trustees reviewed the Adviser's financial information that was provided in the materials and took into account both the direct and indirect benefits to The Adviser from managing the Fund. The Trustees concluded that the Adviser's profits from managing the Fund were not excessive and, after a review of the relevant financial information, that the Adviser appeared to have adequate capitalization and/or would maintain adequate profit levels to support the Fund. |
PRIVACY NOTICE
The Fund collects non-public information about you from the following sources:
● Information we receive about you on applications or other forms;
● Information you give us orally; and/or
● Information about your transactions with us or others.
We do not disclose any non-public personal information about our customers or former customers without the customer's authorization, except as permitted by law or in response to inquiries from governmental authorities. We may share information with affiliated and unaffiliated third parties with whom we have contracts for servicing the Fund. We will provide unaffiliated third parties with only the information necessary to carry out their assigned responsibilities. We maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your personal information with the same high degree of confidentiality.
In the event that you hold shares of the Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.
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Investment Adviser
CornerCap Investment Counsel, Inc.
The Peachtree, Suite 1700, 1355 Peachtree Street NE
Atlanta, GA 30309
Distributor
Quasar Distributors, LLC
111 East Kilbourn Avenue, Suite 2200
Milwaukee, Wisconsin 53202
Custodian
U.S. Bank National Association
Custody Operations
1555 North River Center Drive, Suite 302
Milwaukee, Wisconsin 53212
Transfer Agent, Fund Accountant and Fund Administrator
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
Independent Registered Public Accounting Firm
BBD, LLP
1835 Market Street, 3rd Floor
Philadelphia, PA 19103
Legal Counsel
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.
(b)
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Not applicable.
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(a)
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Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
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(b)
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Not Applicable
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(a)
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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.
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(b)
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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.
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(a)
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(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. Not applicable.
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(4)
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Change in the registrant's independent public accountant. There was no change in the registrant's independent public accountant for the period covered by this report.
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(b)
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Certifications pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002. Furnished herewith.
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