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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Connexus Corporation (CE) | USOTC:CNXS | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.000001 | 0.000001 | 0.000001 | 0.000001 | 110,000 | 01:00:00 |
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-4854 |
(Exact name of registrant as specified in charter)
3333 Warrenville Road, Suite 500, Lisle, IL 60532
(Address of principal executive offices) (Zip code)
James W. Oberweis
The Oberweis Funds 3333 Warrenville Road, Suite 500 Lisle, IL 60532 |
Copy to: James A. Arpaia
Vedder Price P.C. 222 North LaSalle Street, Suite 2600 Chicago, IL 60601 |
(Name and address of agent for service)
Registrants telephone number, including area code: (800) 323-6166
Date of fiscal year end: December 31
Date of reporting period: June 30, 2013
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.
(Semi-Annual Report for the period 01/01/13 through 06/30/13 is filed herewith)
A VISION FOR FUTURE GROWTH
SEMI-ANNUAL REPORT
JUNE 30, 2013
| Oberweis Micro-Cap Fund |
| Oberweis Emerging Growth Fund |
| Oberweis Small-Cap Opportunities Fund |
| Oberweis China Opportunities Fund |
| Oberweis International Opportunities Fund |
| Oberweis Asia Opportunities Fund |
1-800-245-7311
www.oberweisfunds.com
Dear Fellow Shareholder of The Oberweis Funds:
I am very pleased to report an excellent first half of 2013 for The Oberweis Funds. Among our international funds, the International Opportunities Fund gained 20.88% (compared to 2.02% for the MSCI World ex-US Small-Cap Growth Index), the China Opportunities Fund returned 17.81% (versus 6.89% for the MSCI Zhong Hua Small-Cap Growth Index), and the Asia Opportunities Fund returned 0.90% (versus -3.45% for the MSCI AC Asia Pacific Ex-Japan SCG Index). Among our domestic funds, the Emerging Growth Fund returned 20.27%, the Small-Cap Opportunities Fund returned 14.49%, and the Micro-Cap Fund returned 22.20%. For comparison, the Russell 2000 Growth Index returned 17.44%.
In the U.S., history will likely remember the second quarter as the beginning of the end of the Feds Fantastic Feat (aka QE I, II, and III). This unprecedented period of easy money employed monetary policy to artificially suppress interest rates and reduce the cost of capital with the intent of stimulating economic growth (or at least mitigating its contraction). Well, it was fun while it lasted.
In the second quarter, yields on the 10-year U.S. Treasury bond jumped to 2.49% from 1.85% and have continued higher to start the third quarter. With rates on the rise and bond prices on the downswing, bond funds experienced net redemptions this quarter for the first time since the fourth quarter of 2008, after four straight years of massive inflows. According to the Investment Company Institute, bond funds had outflows of $37 billion in the second quarter, with $28 billion in outflows occurring in the last week of June. In contrast, equity funds had net inflows of $10 billion in the second quarter. Indeed, we believe that fund flows from bonds into stocks amid a more normalized risk environment were two of the primary drivers of strong equity returns during the second quarter. Consistent with an environment of improving risk appetite, equities outperformed bonds, small-cap stocks beat large-cap stocks, and growth bested value.
While rising interest rates imply lower prices for bonds, the impact of the Feds pullback on equities (both in the U.S. and abroad) is less clear. On the margin, rising rates will slow consumer and business spending. Still, one also has to look at why rates are rising. Perhaps the Fed feels comfortable ending its stimulus because it believes economic growth is on track consistently positive, even if not robust. Some indicators suggest that the U.S. has pent up demand for homes, autos, and other consumer durables, although the case is weaker when it comes to corporate capital expenditures. Still, an uptick in spending by the consumer may be enough to drive an unanticipated improvement in GDP growth, which is a key driver of corporate profit growth and stock prices. The question remains, however, if a higher investment hurdle rate (i.e. higher interest rates) will be trumped by better overall economic conditions over the next few years. While there are catalysts for continued growth, we do recognize the challenge of the eventual Fed pullback. Valuations for our high-growth small-cap universe, at a median P/E of 14.5x forward earnings, appear slightly below the 10-year average P/E of 17.0x, but higher than the 12.4x seen at the beginning of the year.
In China, new leadership appears resolved to attack credit-driven investment growth. In the short run, this implies slower growth, but may also put China on a more sustainable growth path over the long-term. Chinas economy is also feeling the pinch from weak demand for its exports to Europe and the U.S. While export-driven businesses and GDP-sensitive industries like banking are feeling the sting, other industries like e-commerce, healthcare, and environmental protection continue to experience very strong growth. Indeed, industries appear to be diverging in China and broad-based investment has not been a successful strategy in 2013. By focusing on niche Chinese firms capable of growing even in the face of slower macroeconomic growth, our China team has demonstrated its stock picking skill thus far this year. With valuations for Chinese equities at among the lowest levels since we started in 2005, we believe the climate for finding investment opportunities in China is presently above-average.
1
In Japan, consumer sentiment has improved and inflation expectations have risen as a result of aggressive fiscal stimulus. While Japan is one of the most cyclical economies and faces challenges, short-term growth will be supported by unprecedented fiscal stimulus and yen depreciation. It remains to be seen what the long term impact of the Abenomics growth strategies will have on the Japanese economy.
In Europe, while growth remains muted, valuations are at a discount to most of the rest of the developed world, and expectations have decreased. At the beginning of the year, IBES estimates expected 10% EPS growth for 2013, but that has decreased to 3% currently. While sovereign debt issues remain a real threat, Eurozone PMIs have started to stabilize, even in the periphery. European Central Bank policy is becoming more accommodative and a return to positive Eurozone GDP growth is likely to drive an improving earnings profile in 2014.
In terms of valuation specifics, the average forward P/E ratio as of June 30, 2013 was 18.4 times for the Micro-Cap Fund (versus 18.4 last quarter), 19.3 times for the Emerging Growth Fund (versus 19.3 last quarter), 16.6 times for the Small-Cap Opportunities Fund (versus 16.6 last quarter), 13.9 times for the International Opportunities Fund (versus 14.7 last quarter), 13.3 times for the China Opportunities Fund (versus 12.1 last quarter), and 12.3 times for the Asia Opportunities Fund (versus 17.9 last quarter). Remember, each of the Funds invests in companies with expected earnings growth substantially higher than that of the broader market. As of June 30, 2013, the weighted average market capitalization was $629 million for the Micro-Cap Fund, $1.5 billion for the Emerging Growth Fund, $1.8 billion for the Small-Cap Opportunities Fund, $2.5 billion for the International Opportunities Fund, $2.9 billion for the China Opportunities Fund, and $2.3 billion for the Asia Opportunities Fund.
Lastly, Id like to personally congratulate our China Opportunities Fund (OBCHX) and International Opportunities Fund (OBIOX) investment teams, which have performed well against peer funds. For your reference, please see the peer comparisons at the end of this letter.
As always, we would like to sincerely thank you for investing in The Oberweis Funds. For more information on all six of The Oberweis Funds, please call Shareholder Services at (800) 245-7311 or visit our website at www.oberweisfunds.com .
Sincerely,
James W. Oberweis, CFA
President & Portfolio Manager
2
We are pleased to report the following rankings, according to Morningstar, for the period ending June 28, 2013:
Oberweis International Opportunities Fund (OBIOX)
| One Year OBIOX ranked 1 st out of 136 Foreign Small/Mid Cap Growth funds for all share classes. |
| Three Year OBIOX ranked 1 st out of 115 Foreign Small/Mid Cap Growth funds for all share classes. |
| Five Year OBIOX ranked 11 th out of 92 Foreign Small/Mid Cap Growth funds for all share classes. |
Oberweis China Opportunities Fund (OBCHX)
| One Year OBCHX ranked 1 st out of 99 China Region funds for all share classes. |
| Three Year OBCHX ranked 5 th out of 76 China Region funds for all share classes. |
| Five Year OBCHX ranked 1 st out of 58 China Region funds for all share classes. |
Average Annual Total Returns
as of 06/30/13
Fund Ticker | 2 nd Quarter | 1 Year | 3 Year | 5 Year | 10 Year | Life of Fund* | Expense Ratio** | |||||||||||||||||||||
OBEGX | 7.25% | 21.45% | 13.76% | 5.17% | 4.16% | 8.44% | 1.57% | |||||||||||||||||||||
OBMCX | 6.98% | 27.23% | 16.95% | 6.14% | 6.40% | 8.72% | 2.00% | |||||||||||||||||||||
OBSOX | 5.65% | 16.51% | 16.04% | 4.66% | 6.32% | 5.44% | 2.00% | |||||||||||||||||||||
OBCHX | 6.07% | 38.62% | 6.62% | 6.38% | n/a | 14.12% | 2.15% | |||||||||||||||||||||
OBIOX | 5.77% | 49.65% | 24.34% | 4.22% | n/a | 7.68% | 1.60% | |||||||||||||||||||||
OBAOX | -5.19% | 16.23% | 6.64% | -0.38% | n/a | -2.03% | 2.49% |
* | Life of Fund returns are from commencement of operations on 01/07/87 for the Emerging Growth Fund, 01/01/96 for the Micro-Cap Fund, 09/15/96 for the Small-Cap Opportunities Fund, 10/1/05 for the China Opportunities Fund, 02/01/07 for the International Opportunities Fund, and 02/01/08 for the Asia Opportunities Fund. |
** | Expense ratio is the total net annualized fund operating expense ratio as of 12/31/12. The expense ratio gross of any fee waivers or expense reimbursement was 1.57%,2.00%, 2.43%, 2.15%,2.86% and 4.64% for the Emerging Growth, Micro-Cap, Small-Cap Opportunities, China Opportunities, International Opportunities and Asia Opportunities Funds, respectively. Oberweis Asset Management, Inc., the Funds investment advisor, has contractually agreed to reimburse Fund expenses through April 30, 2014 to the extent necessary that Total Annual Fund Operating Expenses for OBEGX, OBMCX, OBSOX, OBCHX, OBIOX and OBAOX exceed 2.00%, 2.00%, 2.00%, 2.49%, 1.60% and 2.49% of average net assets, respectively. |
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate, so that you may have gain or loss when shares are sold. Current performance may be higher or lower than quoted. Visit us online at oberweisfunds.com for most recent month-end performance. The Oberweis Funds invest in rapidly growing smaller and medium sized companies which may offer greater return potential. However, these investments often involve greater risks and volatility. Foreign investments involve greater risks than U.S investments, including political and economic risks and the risk of currency fluctuations. There is no guarantee that the funds can achieve their objectives. Holdings in the Funds are subject to
3
change. Before investing, consider the funds investment objectives, risks, charges, and expenses. To obtain a copy of the prospectus or summary prospectus containing this and other information please visit our website at oberweisfunds.com or call 800-323-6166. Read it carefully before investing.
The MSCI Zhong Hua Small Cap Growth Index (Net) is a free float-adjusted, market capitalization weighted index that is designed to measure the performance of small cap stocks in the developed markets and emerging markets of China and Hong Kong excluding A share classes, with minimum dividends reinvested net of withholding tax.
The MSCI AC Asia Pacific Ex-Japan Small-Cap Growth Index (Net) is a free float adjusted market capitalization index that is designed to measure the equity market performance of small cap growth developed and emerging markets in the Pacific region excluding Japan, with minimum dividends reinvested net of withholding tax.
The MSCI World ex-US Small Cap Growth Index (Net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of small cap growth developed markets excluding the US, with minimum dividends reinvested net of withholding tax.
The Russell 2000 Index measures the performance of approximately 2,000 companies with small-market capitalizations. The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted earnings growth rates. Each index is an unmanaged group of stocks, whose performance does not reflect the deduction of fees, expenses or taxes.
The Morningstar ranking is the rank of a fund among its category peers, which rank is based on a comparison of a funds total return performance against its peers over the stated time period.
4
The following tables present portfolio holdings as a percentage of net assets.
Oberweis Micro-Cap Fund
At June 30, 2013 (unaudited)
Asset Allocation | |||||
Common Stocks | 94.8 | % | |||
Corporate Bonds | 2.6 | % | |||
Real Estate Investment Trust | 1.6 | % | |||
Other Assets in excess of Liabilities | 1.0 | % | |||
100.0 | % |
Top Holdings | |||||
Medidata Solutions, Inc. | 6.2 | % | |||
BOFI Hldg., Inc. | 3.7 | % | |||
On Assignment, Inc. | 3.5 | % | |||
Stamps.com, Inc. | 3.2 | % | |||
Web.com Group, Inc. | 2.9 | % | |||
Support.com, Inc. | 2.8 | % | |||
AdCare Health Systems, Inc. | 2.6 | % | |||
Datawatch Corp. | 2.4 | % | |||
eGain Communications Corp. | 2.4 | % | |||
Gentherm, Inc. | 2.4 | % | |||
Other Holdings | 67.9 | % | |||
100.0 | % |
Top Industries | |||||
Computer Services Software & Systems | 18.6 | % | |||
Healthcare Services | 6.8 | % | |||
Computer Technology | 5.9 | % | |||
Back Office Support | 5.7 | % | |||
Banks - Diversified | 5.4 | % | |||
Specialty Retail | 4.3 | % | |||
Banks-Savings/Thrifts & Mortgage Lending | 4.3 | % | |||
Oil Well Equipment & Services | 3.7 | % | |||
Consumer Services - Misc. | 3.2 | % | |||
Medical & Dental Instruments & Supplies | 3.0 | % | |||
Other Industries | 39.1 | % | |||
100.0 | % |
Oberweis Emerging Growth Fund
At June 30, 2013 (unaudited)
Asset Allocation | |||||
Common Stocks | 100.1 | % | |||
Real Estate Investment Trust | 0.9 | % | |||
Other Liabilities in excess of Assets | (1.0 | %) | |||
100.0 | % |
Top Holdings | |||||
Medidata Solutions, Inc. | 5.1 | % | |||
Francesca's Hldgs. Corp. | 3.9 | % | |||
Gulfport Energy Corp. | 3.7 | % | |||
Web.com Group, Inc. | 3.6 | % | |||
Acacia Research Corp. | 3.4 | % | |||
Roadrunner Transportation Systems, Inc. | 2.9 | % | |||
HMS Hldgs. Corp. | 2.8 | % | |||
Evestnet, Inc. | 2.6 | % | |||
Multimedia Games Hldg. Co., Inc. | 2.5 | % | |||
IPG Photonics Corp. | 2.5 | % | |||
Other Holdings | 67.0 | % | |||
100.0 | % |
Top Industries | |||||
Computer Services Software & Systems | 19.9 | % | |||
Healthcare Services | 11.5 | % | |||
Back Office Support | 10.3 | % | |||
Oil Crude Producer | 7.5 | % | |||
Specialty Retail | 5.5 | % | |||
Computer Technology | 4.9 | % | |||
Electronics Components | 4.8 | % | |||
Truckers | 2.9 | % | |||
Casinos & Gambling | 2.5 | % | |||
Electronics | 2.5 | % | |||
Other Industries | 27.7 | % | |||
100.0 | % |
5
Oberweis Small-Cap Opportunities Fund
At June 30, 2013 (unaudited)
Asset Allocation | |||||
Common Stocks | 96.7 | % | |||
Other Assets in excess of Liabilities | 3.3 | % | |||
100.0 | % |
Top Holdings | |||||
Big 5 Sporting Goods Corp. | 2.7 | % | |||
Medidata Solutions, Inc. | 2.6 | % | |||
IPG Photonics Corp. | 2.4 | % | |||
InvenSense, Inc. | 2.4 | % | |||
Web.com Group, Inc. | 2.4 | % | |||
Stamps.com, Inc. | 2.4 | % | |||
NQ Mobile, Inc. ADR | 2.3 | % | |||
AVG Technologies N.V. | 2.2 | % | |||
HMS Hldgs. Corp. | 2.1 | % | |||
Francesca's Hldgs. Corp. | 2.1 | % | |||
Other Holdings | 76.4 | % | |||
100.0 | % |
Top Industries | |||||
Computer Services Software & Systems | 11.8 | % | |||
Healthcare Services | 9.3 | % | |||
Specialty Retail | 9.0 | % | |||
Electronics Components | 5.0 | % | |||
Aerospace | 4.7 | % | |||
Computer Technology | 4.5 | % | |||
Foods | 4.0 | % | |||
Financial Data & Systems | 3.7 | % | |||
Railroad Equipment | 3.1 | % | |||
Truckers | 3.0 | % | |||
Other Industries | 41.9 | % | |||
100.0 | % |
Oberweis China Opportunities Fund
At June 30, 2013 (unaudited)
Asset Allocation | |||||
Common Stocks | 94.4 | % | |||
Commercial Paper | 4.9 | % | |||
Other Assets in excess of Liabilities | 0.7 | % | |||
100.0 | % |
Top Holdings | |||||
China State Construction International Hldgs. Ltd. | 3.7 | % | |||
China Everbright International Ltd. | 3.5 | % | |||
Spreadtrum Communications, Inc. ADR | 3.4 | % | |||
Galaxy Entertainment Group Ltd. | 3.0 | % | |||
Sunny Optical Technology Group Co. Ltd. | 2.9 | % | |||
Qihoo 360 Technology Co. Ltd. | 2.8 | % | |||
Great Wall Motor Co. Ltd. | 2.8 | % | |||
Biostime International Hldgs. Ltd. | 2.8 | % | |||
Anton Oilfield Services Group | 2.7 | % | |||
China Sanjiang Fine Chemicals Co. Ltd. | 2.7 | % | |||
Other Holdings | 69.7 | % | |||
100.0 | % |
Top Industries | |||||
Internet Software & Services | 9.3 | % | |||
Software | 7.4 | % | |||
Energy Equipment & Services | 7.2 | % | |||
Food Products | 6.8 | % | |||
Construction & Engineering | 5.7 | % | |||
Household Durables | 5.4 | % | |||
Electronic Equipment & Instruments | 5.1 | % | |||
Pharmaceuticals | 4.7 | % | |||
Chemicals | 4.3 | % | |||
Hotels Restaurants & Leisure | 4.0 | % | |||
Other Industries | 40.1 | % | |||
100.0 | % |
6
Oberweis International Opportunities Fund
At June 30, 2013 (unaudited)
Asset Allocation | |||||
Common Stocks | 90.7 | % | |||
Commercial Paper | 4.5 | % | |||
Other Assets in excess of Liabilities | 4.8 | % | |||
100.0 | % |
Top Holdings | |||||
Teleperformance | 3.4 | % | |||
International Personal Finance PLC | 2.6 | % | |||
Ashtead Group PLC | 2.4 | % | |||
Enplas Corp. | 2.4 | % | |||
ERG SpA | 2.3 | % | |||
Tadano Ltd. | 2.3 | % | |||
UbiSoft Entertainment SA | 2.3 | % | |||
Duerr AG | 2.3 | % | |||
Babcock International Group PLC | 2.2 | % | |||
Thales SA | 2.2 | % | |||
Other Holdings | 75.6 | % | |||
100.0 | % |
Top Industries | |||||
Software | 9.8 | % | |||
Household Durables | 6.6 | % | |||
Machinery | 6.2 | % | |||
Electronic Equipment, Instruments & Components | 5.9 | % | |||
Commercial Service & Supply | 5.4 | % | |||
Professional Services | 4.5 | % | |||
Oil, Gas & Consumable Fuels | 4.3 | % | |||
Hotels Restaurants & Leisure | 4.3 | % | |||
Semiconductors & Semiconductor Equipment | 3.7 | % | |||
Trading Companies & Distributors | 3.7 | % | |||
Other Industries | 45.6 | % | |||
100.0 | % |
Oberweis Asia Opportunities Fund
At June 30, 2013 (unaudited)
Asset Allocation | |||||
Common Stocks | 90.4 | % | |||
Other Assets in excess of Liabilities | 9.6 | % | |||
100.0 | % |
Top Holdings | |||||
Ezion Hldgs. Ltd. | 4.6 | % | |||
Spreadtrum Communications, Inc. ADR | 2.8 | % | |||
Tianjin Zhongxin Pharmaceutical Group Corp. Ltd. | 2.6 | % | |||
Bloomage Biotechnology Corp. | 2.6 | % | |||
Kingsoft Corp. Ltd. | 2.6 | % | |||
China State Construction International Hldgs. Ltd. | 2.6 | % | |||
Airports of Thailand PCL | 2.3 | % | |||
Sunny Optical Technology Group Co. Ltd. | 2.2 | % | |||
Honghua Group Ltd. | 2.2 | % | |||
Techtronic Industries Co. Ltd. | 2.2 | % | |||
Other Holdings | 73.3 | % | |||
100.0 | % |
Top Industries | |||||
Construction & Engineering | 10.7 | % | |||
Energy Equipment & Services | 10.3 | % | |||
Real Estate Management & Development | 7.2 | % | |||
Food Products | 6.8 | % | |||
Household Durables | 6.3 | % | |||
Software | 5.1 | % | |||
Pharmaceuticals | 4.8 | % | |||
Electronic Equipment, Instruments & Components | 4.3 | % | |||
Chemicals | 3.8 | % | |||
Communications Equipment | 3.0 | % | |||
Other Industries | 37.7 | % | |||
100.0 | % |
7
Shares | Value | |||||||
Equities 94.8%
|
||||||||
Auto Parts 2.3%
|
||||||||
Gentherm, Inc.* | 27,900 | $ | 518,103 | |||||
Back Office Support 5.7%
|
||||||||
Barrett Business Services, Inc. | 9,300 | 485,553 | ||||||
On Assignment, Inc.* | 28,900 | 772,208 | ||||||
1,257,761 | ||||||||
Banks Diversified 5.4%
|
||||||||
Bryn Mawr Bank Corp. | 12,300 | 294,339 | ||||||
Cardinal Financial Corp. | 17,300 | 253,272 | ||||||
Eagle Bancorp, Inc.* | 16,280 | 364,347 | ||||||
First Savings Financial Group, Inc. | 5,000 | 116,700 | ||||||
The Bancorp, Inc.* | 10,100 | 151,399 | ||||||
1,180,057 | ||||||||
Banks Savings/Thrifts & Mortgage Lending 4.3%
|
||||||||
BOFI Hldg., Inc.* | 17,576 | 805,332 | ||||||
United Financial Bancorp, Inc. | 8,800 | 133,320 | ||||||
938,652 | ||||||||
Biotechnology 0.7%
|
||||||||
Ligand Pharmaceuticals, Inc.* | 4,000 | 149,600 | ||||||
Commercial Finance & Mortgage Companies 1.7%
|
||||||||
Consumer Portfolio Services, Inc.* | 51,800 | 380,212 | ||||||
Commercial Services 2.9%
|
||||||||
NQ Mobile, Inc. ADR* | 44,600 | 360,368 | ||||||
Points International Ltd.* | 12,500 | 269,125 | ||||||
629,493 | ||||||||
Communications 1.4%
|
||||||||
Datalink Corp.* | 11,695 | 124,435 | ||||||
Procera Networks, Inc.* | 13,400 | 183,982 | ||||||
308,417 | ||||||||
Computer Services Software & Systems 18.6%
|
||||||||
ClickSoftware Technologies Ltd. | 32,800 | 273,552 | ||||||
Datawatch Corp.* | 29,900 | 539,396 | ||||||
Digimarc Corp. | 9,500 | 197,315 | ||||||
eGain Communications Corp.* | 55,300 | 531,986 | ||||||
Ellie Mae, Inc.* | 22,000 | 507,760 | ||||||
Magic Software Enterprises Ltd. | 7,900 | 42,581 |
See accompanying notes to the financial statements.
8
Shares | Value | |||||||
Perficient, Inc.* | 16,800 | $ | 224,112 | |||||
Support.com, Inc.* | 134,400 | 614,208 | ||||||
Tangoe, Inc.* | 22,700 | 350,261 | ||||||
Virtusa Corp.* | 7,800 | 172,848 | ||||||
Web.com Group, Inc.* | 25,300 | 647,680 | ||||||
4,101,699 | ||||||||
Computer Technology 5.9%
|
||||||||
21Vianet Group, Inc. ADR* | 18,400 | 208,472 | ||||||
Allot Communications Ltd.* | 7,700 | 105,567 | ||||||
Immersion Corp.* | 35,800 | 474,350 | ||||||
Silicom Ltd. | 13,100 | 449,068 | ||||||
Streamline Health Solutions, Inc.* | 8,700 | 57,159 | ||||||
1,294,616 | ||||||||
Consumer Services Misc. 3.2%
|
||||||||
Stamps.com, Inc.* | 17,700 | 697,203 | ||||||
Education Services 1.5%
|
||||||||
HealthStream, Inc.* | 13,500 | 341,820 | ||||||
Electrical Scientific Instruments 0.7%
|
||||||||
TASER International, Inc.* | 17,700 | 150,804 | ||||||
Electronics Components 1.5%
|
||||||||
Acacia Research Corp. | 15,100 | 337,485 | ||||||
Healthcare Services 6.8%
|
||||||||
IPC The Hospitalist Co., Inc.* | 2,680 | 137,645 | ||||||
Medidata Solutions, Inc.* | 17,600 | 1,363,120 | ||||||
1,500,765 | ||||||||
Homebuilding 0.9%
|
||||||||
Comstock Hldg. Cos., Inc.* | 70,500 | 195,285 | ||||||
Industrial Machinery 0.8%
|
||||||||
Manitex International, Inc.* | 16,600 | 181,770 | ||||||
Insurance Property-Casualty 2.2%
|
||||||||
Federated National Hldg. Co.* | 2,615 | 25,496 | ||||||
HCI Group, Inc. | 11,000 | 337,920 | ||||||
United Insurance Hldgs. Corp. | 16,600 | 116,034 | ||||||
479,450 | ||||||||
Leisure Time 0.5%
|
||||||||
Premier Exhibitions, Inc.* | 60,100 | 104,574 |
See accompanying notes to the financial statements.
9
Shares | Value | |||||||
Medical & Dental Instruments & Supplies 3.0%
|
||||||||
Endologix, Inc.* | 34,300 | $ | 455,504 | |||||
MGC Diagnostics Corp.* | 8,600 | 71,810 | ||||||
Vascular Solutions, Inc.* | 9,800 | 144,158 | ||||||
671,472 | ||||||||
Medical Equipment 0.5%
|
||||||||
Cynosure, Inc.* | 4,000 | 103,920 | ||||||
Oil Crude Producer 2.5%
|
||||||||
Callon Petroleum Co.* | 53,000 | 178,610 | ||||||
Panhandle Oil & Gas, Inc. | 5,100 | 145,350 | ||||||
Triangle Petroleum Corp.* | 33,000 | 231,330 | ||||||
555,290 | ||||||||
Oil Well Equipment & Services 3.7%
|
||||||||
Flotek Industries, Inc.* | 22,100 | 396,474 | ||||||
Mitcham Industries, Inc.* | 9,300 | 156,054 | ||||||
RigNet, Inc.* | 10,500 | 267,540 | ||||||
820,068 | ||||||||
Pharmaceuticals 1.1%
|
||||||||
Lannett Co., Inc.* | 19,700 | 234,627 | ||||||
Pollution Control 1.3%
|
||||||||
ADA-ES, Inc.* | 6,900 | 290,628 | ||||||
Producer Durables Misc. 0.3%
|
||||||||
MFRI, Inc.* | 5,800 | 65,946 | ||||||
Real Estate 2.1%
|
||||||||
Market Leader, Inc.* | 44,200 | 472,940 | ||||||
Recreational Vehicles & Boats 0.8%
|
||||||||
Arctic Cat, Inc. | 2,700 | 121,446 | ||||||
Marine Products Corp. | 5,800 | 46,516 | ||||||
167,962 | ||||||||
Rental & Leasing Services Consumer 1.8%
|
||||||||
CAI International, Inc.* | 16,600 | 391,262 | ||||||
Semiconductors & Components 2.4%
|
||||||||
Inphi Corp.* | 32,200 | 354,200 | ||||||
MaxLinear, Inc.* | 23,900 | 167,300 | ||||||
521,500 |
See accompanying notes to the financial statements.
10
Shares | Value | |||||||
Specialty Retail 4.3%
|
||||||||
Francesca's Hldgs. Corp.* | 18,000 | $ | 500,220 | |||||
Tilly's, Inc.* | 27,500 | 440,000 | ||||||
940,220 | ||||||||
Telecommunications Equipment 0.8%
|
||||||||
CalAmp Corp.* | 12,100 | 176,660 | ||||||
Textiles Apparel & Shoes 1.5%
|
||||||||
G-III Apparel Group Ltd.* | 3,600 | 173,232 | ||||||
Joe's Jeans, Inc.* | 97,400 | 159,736 | ||||||
332,968 | ||||||||
Truckers 1.7%
|
||||||||
Roadrunner Transportation Systems, Inc.* | 13,600 | 378,624 | ||||||
Total Equities
|
||||||||
(Cost: $13,814,265) | $ | 20,871,853 | ||||||
Real Estate Investment Trust 1.6%
|
||||||||
PennyMac Mortgage Investment Trust | 17,000 | 357,850 | ||||||
Total Real Estate Investment Trust
|
||||||||
(Cost: $338,254) | $ | 357,850 |
Face Amount | Value | |||||||
Corporate Bonds 2.6%
|
||||||||
Healthcare Facilities
|
||||||||
AdCare Health Systems, Inc. (10.00%, 10/26/13) (a) | 500,000 | $ | 576,270 | |||||
Total Corporate Bonds
|
||||||||
(Cost: $500,000) | $ | 576,270 | ||||||
Total Investments 99.0%
|
||||||||
(Cost: $14,652,519) | $ | 21,805,973 | ||||||
Other Assets Less Liabilities 1.0% | 226,492 | |||||||
Net Assets 100% | $ | 22,032,465 |
Cost of Investments is $14,686,048 for federal income tax purposes and net unrealized appreciation consists of:
Gross unrealized appreciation | $ | 7,456,365 | ||
Gross unrealized depreciation | (336,440 | ) | ||
Net unrealized appreciation | $ | 7,119,925 |
(a) | Certain securities were fair valued under the discretion of the Board of Trustees |
* | Non-income producing security during the period ended June 30, 2013 |
ADR American depositary receipt
See accompanying notes to the financial statements.
11
Shares | Value | |||||||
Equities 100.1%
|
||||||||
Advertising Agency 1.8%
|
||||||||
ValueClick, Inc.* | 49,100 | $ | 1,213,261 | |||||
Asset Management & Custodian 0.3%
|
||||||||
Financial Engines, Inc. | 4,200 | 191,478 | ||||||
Auto Parts 2.2%
|
||||||||
Gentherm, Inc.* | 77,600 | 1,441,032 | ||||||
Back Office Support 10.3%
|
||||||||
ExlService Hldgs., Inc.* | 46,900 | 1,386,364 | ||||||
MAXIMUS, Inc. | 11,300 | 841,624 | ||||||
On Assignment, Inc.* | 60,382 | 1,613,407 | ||||||
RPX Corp.* | 45,900 | 771,120 | ||||||
The Advisory Board Co.* | 20,700 | 1,131,255 | ||||||
WageWorks, Inc.* | 28,500 | 981,825 | ||||||
6,725,595 | ||||||||
Banks Diversified 1.1%
|
||||||||
The Bancorp, Inc.* | 46,600 | 698,534 | ||||||
Banks Savings/Thrifts & Mortgage Lending 1.4%
|
||||||||
Berkshire Hills Bancorp, Inc. | 32,900 | 913,304 | ||||||
Biotechnology 0.6%
|
||||||||
Protalix BioTherapeutics, Inc.* | 82,300 | 404,093 | ||||||
Casinos & Gambling 2.5%
|
||||||||
Multimedia Games Hldg. Co., Inc.* | 62,862 | 1,638,812 | ||||||
Communications 0.7%
|
||||||||
Procera Networks, Inc.* | 31,000 | 425,630 | ||||||
Computer Services Software & Systems 19.9%
|
||||||||
AVG Technologies N.V.* | 80,400 | 1,563,780 | ||||||
DealerTrack Hldgs., Inc.* | 36,600 | 1,296,738 | ||||||
Ellie Mae, Inc.* | 57,800 | 1,334,024 | ||||||
Envestnet, Inc.* | 68,100 | 1,675,260 | ||||||
Infoblox, Inc.* | 13,200 | 386,232 | ||||||
Interactive Intelligence, Inc.* | 25,800 | 1,331,280 | ||||||
PDF Solutions, Inc.* | 40,100 | 739,043 | ||||||
Sourcefire, Inc.* | 17,000 | 944,350 | ||||||
Tangoe, Inc.* | 92,700 | 1,430,361 | ||||||
Web.com Group, Inc.* | 91,500 | 2,342,400 | ||||||
13,043,468 |
See accompanying notes to the financial statements.
12
Shares | Value | |||||||
Computer Technology 4.9%
|
||||||||
21Vianet Group, Inc. ADR* | 126,400 | $ | 1,432,112 | |||||
Stratasys, Inc.* | 10,500 | 879,270 | ||||||
Synaptics, Inc.* | 23,300 | 898,448 | ||||||
3,209,830 | ||||||||
Consumer Services Misc. 2.2%
|
||||||||
51job, Inc. ADR* | 14,000 | 945,140 | ||||||
Stamps.com, Inc.* | 12,400 | 488,436 | ||||||
1,433,576 | ||||||||
Diversified Metals & Minerals 0.5%
|
||||||||
U.S. Silica Hldgs., Inc. | 14,500 | 301,310 | ||||||
Education Services 2.3%
|
||||||||
Grand Canyon Education, Inc.* | 37,000 | 1,192,510 | ||||||
HealthStream, Inc.* | 13,900 | 351,948 | ||||||
1,544,458 | ||||||||
Electronics 2.5%
|
||||||||
IPG Photonics Corp.* | 26,800 | 1,627,564 | ||||||
Electronics Components 4.8%
|
||||||||
Acacia Research Corp. | 98,876 | 2,209,879 | ||||||
InvenSense, Inc.* | 59,400 | 913,572 | ||||||
3,123,451 | ||||||||
Energy Equipment 1.0%
|
||||||||
SunPower Corp.* | 31,400 | 649,980 | ||||||
Healthcare Services 11.5%
|
||||||||
Catamaran Corp.* | 19,500 | 950,820 | ||||||
HMS Hldgs. Corp.* | 78,000 | 1,817,400 | ||||||
Medidata Solutions, Inc.* | 43,500 | 3,369,075 | ||||||
Omnicell, Inc.* | 67,500 | 1,387,125 | ||||||
7,524,420 | ||||||||
Homebuilding 1.2%
|
||||||||
Taylor Morrison Home Corp.* | 31,300 | 763,094 | ||||||
Industrial Machinery 1.2%
|
||||||||
Proto Labs, Inc.* | 12,400 | 805,628 | ||||||
Medical & Dental Instruments & Supplies 0.9%
|
||||||||
Endologix, Inc.* | 45,900 | 609,552 | ||||||
Medical Equipment 1.6%
|
||||||||
Cyberonics, Inc.* | 20,300 | 1,054,788 |
See accompanying notes to the financial statements.
13
Shares | Value | |||||||
Oil Crude Producer 7.5%
|
||||||||
Bonanza Creek Energy, Inc.* | 23,900 | $ | 847,494 | |||||
Diamondback Energy, Inc.* | 15,200 | 506,464 | ||||||
EPL Oil & Gas, Inc.* | 18,800 | 551,968 | ||||||
Gulfport Energy Corp.* | 51,800 | 2,439,262 | ||||||
Northern Oil & Gas, Inc.* | 43,800 | 584,292 | ||||||
4,929,480 | ||||||||
Pharmaceuticals 0.6%
|
||||||||
Santarus, Inc.* | 17,300 | 364,165 | ||||||
Photography 0.8%
|
||||||||
IMAX Corp.* | 22,300 | 554,378 | ||||||
Recreational Vehicles & Boats 0.7%
|
||||||||
Winnebago Industries, Inc.* | 22,300 | 468,077 | ||||||
Rental & Leasing Services Consumer 0.9%
|
||||||||
CAI International, Inc.* | 23,800 | 560,966 | ||||||
Semiconductors & Components 2.4%
|
||||||||
Ambarella, Inc.* | 37,100 | 624,393 | ||||||
Spreadtrum Communications, Inc. ADR | 35,600 | 934,500 | ||||||
1,558,893 | ||||||||
Specialty Retail 5.5%
|
||||||||
Francesca's Hldgs. Corp.* | 91,600 | 2,545,564 | ||||||
Zumiez, Inc.* | 37,800 | 1,086,750 | ||||||
3,632,314 | ||||||||
Textiles Apparel & Shoes 1.8%
|
||||||||
G-III Apparel Group Ltd.* | 10,100 | 486,012 | ||||||
Steven Madden Ltd.* | 13,800 | 667,644 | ||||||
1,153,656 | ||||||||
Truckers 2.9%
|
||||||||
Roadrunner Transportation Systems, Inc.* | 67,600 | 1,881,984 | ||||||
Utilities Telecommunications 1.6%
|
||||||||
8x8, Inc.* | 129,000 | 1,062,960 | ||||||
Total Equities
|
||||||||
(Cost: $48,749,906) | $ | 65,509,731 | ||||||
Real Estate Investment Trust 0.9%
|
||||||||
PennyMac Mortgage Investment Trust | 26,800 | 564,140 | ||||||
Total Real Estate Investment Trust
|
||||||||
(Cost: $603,210) | $ | 564,140 |
See accompanying notes to the financial statements.
14
Shares | Value | |||||||
Total Investments 101.0%
|
||||||||
(Cost: $49,353,116) | $ | 66,073,871 | ||||||
Other Liabilities Less Assets (1.0%) | (625,912 | ) | ||||||
Net Assets 100% | $ | 65,447,959 |
Cost of Investments is $49,412,644 for federal income tax purposes and net unrealized appreciation consists of:
Gross unrealized appreciation | $ | 18,304,178 | ||
Gross unrealized depreciation | (1,642,951 | ) | ||
Net unrealized appreciation | $ | 16,661,227 |
* | Non-income producing security during the period ended June 30, 2013 |
ADR American depositary receipt
See accompanying notes to the financial statements.
15
Shares | Value | |||||||
Equities 96.7%
|
||||||||
Aerospace 4.7%
|
||||||||
Astronics Corp.* | 3,300 | $ | 134,871 | |||||
HEICO Corp.* | 2,600 | 130,962 | ||||||
Wesco Aircraft Hldgs., Inc.* | 4,500 | 83,565 | ||||||
349,398 | ||||||||
Auto Parts 1.2%
|
||||||||
Tower International, Inc.* | 4,400 | 87,076 | ||||||
Back Office Support 1.2%
|
||||||||
On Assignment, Inc.* | 3,300 | 88,176 | ||||||
Banks Diversified 1.2%
|
||||||||
PrivateBancorp, Inc. | 4,200 | 89,145 | ||||||
Banks Savings/Thrifts & Mortgage Lending 1.1%
|
||||||||
BOFI Hldg., Inc.* | 1,800 | 82,476 | ||||||
Biotechnology 0.9%
|
||||||||
Albany Molecular Research, Inc.* | 5,700 | 67,659 | ||||||
Commercial Services 2.3%
|
||||||||
NQ Mobile, Inc. ADR* | 21,400 | 172,912 | ||||||
Communications 0.7%
|
||||||||
Finisar Corp.* | 3,200 | 54,240 | ||||||
Computer Services Software & Systems 11.8%
|
||||||||
AVG Technologies N.V.* | 8,600 | 167,270 | ||||||
Ellie Mae, Inc.* | 6,400 | 147,712 | ||||||
Informatica Corp.* | 3,000 | 104,940 | ||||||
NetScout Systems, Inc.* | 2,400 | 56,016 | ||||||
SS&C Technologies Hldgs., Inc.* | 2,900 | 95,410 | ||||||
Synchronoss Technologies, Inc.* | 4,300 | 132,741 | ||||||
Web.com Group, Inc.* | 7,000 | 179,200 | ||||||
883,289 | ||||||||
Computer Technology 4.5%
|
||||||||
21Vianet Group, Inc. ADR* | 10,300 | 116,699 | ||||||
Immersion Corp.* | 11,000 | 145,750 | ||||||
Synaptics, Inc.* | 1,900 | 73,264 | ||||||
335,713 | ||||||||
Consumer Lending 1.9%
|
||||||||
Encore Capital Group, Inc.* | 4,400 | 145,684 |
See accompanying notes to the financial statements.
16
Shares | Value | |||||||
Consumer Services Misc. 2.4%
|
||||||||
Stamps.com, Inc.* | 4,516 | $ | 177,885 | |||||
Containers & Packaging 1.6%
|
||||||||
Crown Hldgs., Inc.* | 3,000 | 123,390 | ||||||
Diversified Chemicals 2.0%
|
||||||||
OM Group, Inc.* | 4,800 | 148,416 | ||||||
Drug & Grocery Store Chains 1.6%
|
||||||||
The Fresh Market, Inc.* | 2,400 | 119,328 | ||||||
Electronics 2.4%
|
||||||||
IPG Photonics Corp.* | 3,000 | 182,190 | ||||||
Electronics Components 5.0%
|
||||||||
Acacia Research Corp. | 3,050 | 68,167 | ||||||
InvenSense, Inc.* | 11,800 | 181,484 | ||||||
Methode Electronics, Inc. | 7,200 | 122,472 | ||||||
372,123 | ||||||||
Engineering & Contracting Services 1.3%
|
||||||||
Furmanite Corp.* | 14,600 | 97,674 | ||||||
Environmental Maintenance & Security Services 1.9%
|
||||||||
G&K Services, Inc. | 1,400 | 66,640 | ||||||
UniFirst Corp. | 800 | 73,000 | ||||||
139,640 | ||||||||
Financial Data & Systems 3.7%
|
||||||||
Advent Software, Inc.* | 4,000 | 140,240 | ||||||
Cardtronics, Inc.* | 1,900 | 52,440 | ||||||
Fair Isaac Corp. | 1,900 | 87,077 | ||||||
279,757 | ||||||||
Foods 4.0%
|
||||||||
Annie's, Inc.* | 2,300 | 98,302 | ||||||
B&G Foods, Inc. | 2,800 | 95,340 | ||||||
The Hain Celestial Group, Inc.* | 1,600 | 104,016 | ||||||
297,658 | ||||||||
Healthcare Facilities 1.4%
|
||||||||
AmSurg Corp.* | 1,500 | 52,650 | ||||||
Universal Health Services, Inc. | 800 | 53,568 | ||||||
106,218 |
See accompanying notes to the financial statements.
17
Shares | Value | |||||||
Healthcare Services 9.3%
|
||||||||
AMN Healthcare Services, Inc.* | 9,600 | $ | 137,472 | |||||
Catamaran Corp.* | 1,474 | 71,872 | ||||||
HMS Hldgs. Corp.* | 6,900 | 160,770 | ||||||
Medidata Solutions, Inc.* | 2,510 | 194,400 | ||||||
Omnicell, Inc.* | 6,500 | 133,575 | ||||||
698,089 | ||||||||
Machinery Construction & Handling 0.9%
|
||||||||
Hyster-Yale Materials Handling, Inc. | 1,100 | 69,069 | ||||||
Medical & Dental Instruments & Supplies 2.0%
|
||||||||
Cantel Medical Corp.* | 2,600 | 88,062 | ||||||
The Cooper Cos., Inc. | 500 | 59,525 | ||||||
147,587 | ||||||||
Medical Equipment 0.9%
|
||||||||
Cyberonics, Inc.* | 1,300 | 67,548 | ||||||
Medical Services 0.9%
|
||||||||
PAREXEL International Corp.* | 1,400 | 64,358 | ||||||
Oil Crude Producer 0.9%
|
||||||||
Sanchez Energy Corp.* | 2,900 | 66,584 | ||||||
Oil Well Equipment & Services 1.3%
|
||||||||
Hornbeck Offshore Services, Inc.* | 1,800 | 96,300 | ||||||
Railroad Equipment 3.1%
|
||||||||
Trinity Industries, Inc. | 3,000 | 115,320 | ||||||
Wabtec Corp. | 2,200 | 117,546 | ||||||
232,866 | ||||||||
Railroads 1.2%
|
||||||||
Genesee & Wyoming, Inc.* | 1,100 | 93,324 | ||||||
Rental & Leasing 1.6%
|
||||||||
CAI International, Inc.* | 5,000 | 117,850 | ||||||
Restaurants 1.5%
|
||||||||
Dunkin' Brands Group, Inc. | 2,600 | 111,332 | ||||||
Semiconductors & Components 1.6%
|
||||||||
Diodes, Inc.* | 4,700 | 122,059 | ||||||
Specialty Retail 9.0%
|
||||||||
Big 5 Sporting Goods Corp. | 9,100 | 199,745 | ||||||
Conns, Inc.* | 2,400 | 124,224 |
See accompanying notes to the financial statements.
18
Shares | Value | |||||||
Francesca's Hldgs. Corp.* | 5,600 | $ | 155,624 | |||||
Nu Skin Enterprises, Inc. | 1,700 | 103,904 | ||||||
Penske Automotive Group, Inc. | 2,900 | 88,566 | ||||||
672,063 | ||||||||
Textiles Apparel & Shoes 0.7%
|
||||||||
Steve Madden Ltd.* | 1,075 | 52,009 | ||||||
Truckers 3.0%
|
||||||||
Roadrunner Transportation Systems, Inc.* | 5,100 | 141,984 | ||||||
Universal Truckload Services, Inc.* | 3,300 | 79,563 | ||||||
221,547 | ||||||||
Total Equities
|
||||||||
(Cost: $5,931,009) | $ | 7,232,632 | ||||||
Total Investments 96.7%
|
||||||||
(Cost: $5,931,009) | $ | 7,232,632 | ||||||
Other Assets Less Liabilities 3.3% | 247,008 | |||||||
Net Assets 100% | $ | 7,479,640 |
Cost of Investments is $5,935,131 for federal income tax purposes and net unrealized appreciation consists of:
Gross unrealized appreciation | $ | 1,370,806 | ||
Gross unrealized depreciation | (73,305 | ) | ||
Net unrealized appreciation | $ | 1,297,501 |
* | Non-income producing security during the period ended June 30, 2013 |
ADR American depositary receipt
See accompanying notes to the financial statements.
19
Shares | Value | |||||||
Equities 94.4%
|
||||||||
Auto Components 0.8%
|
||||||||
Xinyi Glass Hldg. Co. Ltd. | 1,350,000 | $ | 1,045,732 | |||||
Automobiles 3.8%
|
||||||||
Geely Automobile Hldgs. Ltd. | 3,000,000 | 1,288,018 | ||||||
Great Wall Motor Co. Ltd. | 860,000 | 3,680,500 | ||||||
4,968,518 | ||||||||
Capital Markets 1.3%
|
||||||||
Haitong Securities Co. Ltd.* | 300,000 | 360,622 | ||||||
Noah Hldgs. Ltd. | 150,000 | 1,330,500 | ||||||
1,691,122 | ||||||||
Chemicals 4.3%
|
||||||||
Bloomage Biotechnology Corp. | 1,600,000 | 2,044,326 | ||||||
China Sanjiang Fine Chemicals Co. Ltd. | 7,400,000 | 3,553,595 | ||||||
5,597,921 | ||||||||
Commercial Service & Supply 3.5%
|
||||||||
China Everbright International Ltd. | 6,000,000 | 4,616,831 | ||||||
Communications Equipment 3.1%
|
||||||||
AAC Technologies Hldgs., Inc. | 400,000 | 2,244,174 | ||||||
China Wireless Technologies, Inc. | 4,800,000 | 1,805,670 | ||||||
4,049,844 | ||||||||
Construction & Engineering 5.7%
|
||||||||
China Machinery Engineering Corp. | 1,700,000 | 916,905 | ||||||
China Singyes Solar Technologies Hldgs. Ltd. | 1,400,000 | 1,465,739 | ||||||
China State Construction International Hldgs. Ltd. | 3,100,000 | 4,800,901 | ||||||
Louis XIII Hldgs. Ltd.* | 400,000 | 309,908 | ||||||
7,493,453 | ||||||||
Containers & Packaging 0.7%
|
||||||||
CPMC Hldgs. Ltd. | 1,200,000 | 865,966 | ||||||
Diversified Consumer Services 0.2%
|
||||||||
New Oriental Education & Technology Group, Inc. ADR* | 10,000 | 221,500 | ||||||
Diversified Telecommunication Services 1.4%
|
||||||||
CITIC Telecom International Hldgs. Ltd. | 6,188,098 | 1,849,943 | ||||||
Electrical Equipment 1.9%
|
||||||||
Boer Power Hldgs. Ltd. | 2,000,000 | 1,281,727 | ||||||
Wasion Group Hldgs. Ltd. | 1,900,000 | 1,170,582 | ||||||
2,452,309 |
See accompanying notes to the financial statements.
20
Shares | Value | |||||||
Electronic Equipment & Instruments 5.1%
|
||||||||
Sunny Optical Technology Group Co. Ltd. | 3,200,000 | $ | 3,831,740 | |||||
Truly International Hldgs. Ltd. | 5,750,000 | 2,834,040 | ||||||
6,665,780 | ||||||||
Energy Equipment & Services 7.2%
|
||||||||
Anton Oilfield Services Group | 5,000,000 | 3,584,598 | ||||||
Chu Kong Petroleum & Natural Gas Steel Pipe Hldgs. Ltd. | 1,500,000 | 423,441 | ||||||
Hilong Hldg. Ltd.* | 2,700,000 | 1,580,886 | ||||||
Honghua Group Ltd. | 7,500,000 | 2,556,794 | ||||||
Jutal Offshore Oil Services Ltd. | 6,000,000 | 1,282,681 | ||||||
9,428,400 | ||||||||
Food Products 6.8%
|
||||||||
Biostime International Hldgs. Ltd. | 650,000 | 3,634,824 | ||||||
China Minzhong Food Corp. Ltd.* | 500,000 | 409,783 | ||||||
China Modern Dairy Hldgs. Ltd.* | 5,300,000 | 1,508,458 | ||||||
Sino Grandness Food Industry Group Ltd.* | 1,500,000 | 1,512,308 | ||||||
Yashili International Hldgs. Ltd. | 4,000,000 | 1,769,704 | ||||||
8,835,077 | ||||||||
Food & Staples Retailing 0.0%
|
||||||||
FU JI Food & Catering Services Hldgs. Ltd.* | 132,500 | | ||||||
Gas Utilities 1.2%
|
||||||||
China Gas Hldgs. Ltd. | 1,600,000 | 1,626,261 | ||||||
Healthcare Equipment & Supplies 0.8%
|
||||||||
China Medical System Hldgs. Ltd. | 1,200,000 | 1,068,197 | ||||||
Hotels Restaurants & Leisure 4.0%
|
||||||||
China Lodging Group, Ltd.* | 80,000 | 1,280,000 | ||||||
Galaxy Entertainment Group Ltd.* | 800,000 | 3,885,922 | ||||||
5,165,922 | ||||||||
Household Durables 5.4%
|
||||||||
Fujikon Industrial Hldgs. Ltd.* | 4,400,000 | 1,600,000 | ||||||
Man Wah Hldgs. Ltd.* | 1,950,000 | 2,430,555 | ||||||
Techtronic Industries Co. Ltd. | 1,300,000 | 3,086,203 | ||||||
7,116,758 | ||||||||
Independent Power Producers & Energy Traders 2.1%
|
||||||||
China Suntien Green Energy Corp.* | 1,500,000 | 547,292 | ||||||
Huaneng Renewables Corp. Ltd. | 6,000,000 | 2,157,141 | ||||||
2,704,433 |
See accompanying notes to the financial statements.
21
Shares | Value | |||||||
Information Technology Services 1.3%
|
||||||||
51Job, Inc. ADR* | 25,000 | $ | 1,687,750 | |||||
Internet & Catolog Retail 2.6%
|
||||||||
E-Commerce China Dangdang, Inc.* | 159,500 | 1,106,930 | ||||||
Vipshop Hldgs. Ltd.* | 79,700 | 2,324,052 | ||||||
3,430,982 | ||||||||
Internet Software & Services 9.3%
|
||||||||
21Vianet Group, Inc. ADR* | 250,000 | 2,832,500 | ||||||
Bitauto Hldgs. Ltd.* | 40,000 | 438,800 | ||||||
NetEase.com, Inc. ADR | 50,000 | 3,158,500 | ||||||
Qihoo 360 Technology Co. Ltd.* | 80,000 | 3,693,600 | ||||||
SINA Corp.* | 20,000 | 1,114,600 | ||||||
Youku.com, Inc. ADR* | 40,000 | 767,600 | ||||||
YY, Inc.* | 6,900 | 185,127 | ||||||
12,190,727 | ||||||||
Machinery 2.5%
|
||||||||
CIMC Enric Hldgs. Ltd. | 1,800,000 | 2,781,076 | ||||||
Ka Shui International Hldgs. Ltd.* | 1,570,000 | 454,436 | ||||||
3,235,512 | ||||||||
Paper & Forest Products 0.0%
|
||||||||
China Forestry Hldgs. Ltd.* | 5,760,000 | | ||||||
Personal Products 1.1%
|
||||||||
Prince Frog International Hldgs. Ltd. | 2,000,000 | 1,374,247 | ||||||
Pharmaceuticals 4.7%
|
||||||||
Lijun International Pharmaceutical Hldg. Co. Ltd. | 2,500,000 | 789,540 | ||||||
Shandong Luoxin Pharmacy Stock Co. Ltd. | 1,400,000 | 1,350,488 | ||||||
Shanghai Fosun Pharmaceutical (Group) Co. Ltd.* | 200,000 | 324,697 | ||||||
Tianjin Zhongxin Pharmaceutical Group Corp. Ltd.* | 2,100,000 | 2,282,700 | ||||||
Winteam Pharmaceutical Group Ltd.* | 3,000,000 | 1,332,577 | ||||||
6,080,002 | ||||||||
Real Estate Management & Development 1.4%
|
||||||||
Central China Real Estate Ltd. | 3,000,000 | 854,424 | ||||||
China Overseas Grand Ocean Group Ltd. | 800,000 | 1,013,396 | ||||||
1,867,820 | ||||||||
Semiconductor & Semiconductor Equipment 3.4%
|
||||||||
Spreadtrum Communications, Inc. ADR | 169,800 | 4,457,250 |
See accompanying notes to the financial statements.
22
Shares | Value | |||||||
Software 7.4%
|
||||||||
Kingsoft Corp. Ltd. | 2,100,000 | $ | 3,453,286 | |||||
NetDragon Websoft, Inc. | 1,400,000 | 3,491,092 | ||||||
NQ Mobile, Inc. ADR* | 335,000 | 2,706,800 | ||||||
9,651,178 | ||||||||
Specialty Retail 0.4%
|
||||||||
Luk Fook Hldgs. (International) Ltd.* | 250,000 | 575,408 | ||||||
Textile Apparel & Luxury Goods 1.0%
|
||||||||
Texhong Textile Group Ltd. | 1,050,000 | 1,345,705 | ||||||
Total Equities
|
||||||||
(Cost: $95,618,656) | $ | 123,360,548 |
Face
Amount |
Value | |||||||
Commercial Paper 4.9%
|
||||||||
Prudential Financial
|
||||||||
0.30% due 7/01/2013 | 6,400,000 | $ | 6,400,000 | |||||
Total Commercial Paper
|
||||||||
(Cost: $6,400,000) | $ | 6,400,000 | ||||||
Total Investments 99.3%
|
||||||||
(Cost: $102,018,656) | $ | 129,760,548 | ||||||
Other Assets Less Liabilities 0.7% | 871,229 | |||||||
Net Assets 100% | $ | 130,631,777 |
Cost of Investments is $102,490,110 for federal income tax purposes and net unrealized appreciation consists of:
Gross unrealized appreciation | $ | 34,885,361 | ||
Gross unrealized depreciation | (7,614,923 | ) | ||
Net unrealized appreciation | $ | 27,270,438 |
(a) | Certain securities were fair valued under the discretion of the Board of Trustees |
* | Non-income producing security during the period ended June 30, 2013 |
ADR American depositary receipt
COUNTRY ALLOCATION (As a Percentage of Net Assets) | ||||
China (Includes the People's Republic of China and Hong Kong) | 92.9 | % | ||
Singapore | 1.5 | % |
See accompanying notes to the financial statements.
23
Shares | Value | |||||||
Equities 90.7%
|
||||||||
Australia 0.7%
|
||||||||
Ainsworth Game Technology Ltd. | 94,205 | $ | 347,216 | |||||
Canada 4.3%
|
||||||||
Avigilon Corp.* | 18,800 | 289,052 | ||||||
Continental Gold Ltd.* | 82,500 | 258,867 | ||||||
DeeThree Exploration Ltd.* | 135,300 | 977,731 | ||||||
Stantec, Inc. | 13,400 | 565,713 | ||||||
2,091,363 | ||||||||
China 10.6%
|
||||||||
Anton Oilfield Services Group | 320,000 | 231,044 | ||||||
Biostime International Hldgs. Ltd. | 152,000 | 852,490 | ||||||
China Gas Hldgs. Ltd. | 376,000 | 384,430 | ||||||
Hilong Hldg. Ltd.* | 1,368,000 | 804,281 | ||||||
Honghua Group Ltd. | 1,857,000 | 639,263 | ||||||
Kingsoft Corp. Ltd. | 592,000 | 978,512 | ||||||
Spreadtrum Communications, Inc. ADR* | 32,700 | 858,375 | ||||||
Sunny Optical Technology Group Co. Ltd. | 393,000 | 474,269 | ||||||
5,222,664 | ||||||||
Denmark 6.8%
|
||||||||
Auriga Industries A/S* | 22,700 | 637,807 | ||||||
GN Store Nord A/S | 52,300 | 988,480 | ||||||
Pandora A/S | 24,700 | 837,113 | ||||||
SimCorp A/S | 30,300 | 898,937 | ||||||
3,362,337 | ||||||||
Finland 2.0%
|
||||||||
Huhtamaki OYJ | 29,300 | 544,203 | ||||||
Outotec OYJ | 38,300 | 459,121 | ||||||
1,003,324 | ||||||||
France 7.9%
|
||||||||
Teleperformance | 34,500 | 1,660,562 | ||||||
Thales SA | 23,300 | 1,087,970 | ||||||
UbiSoft Entertainment SA* | 84,700 | 1,109,049 | ||||||
3,857,581 | ||||||||
Germany 6.2%
|
||||||||
Aurelius AG | 14,548 | 349,546 | ||||||
Deutsche Wohnen AG | 36,613 | 621,654 | ||||||
Duerr AG | 18,374 | 1,108,586 |
See accompanying notes to the financial statements.
24
Shares | Value | |||||||
Freenet AG | 23,200 | $ | 506,698 | |||||
KUKA AG | 10,700 | 452,414 | ||||||
3,038,898 | ||||||||
Hong Kong 5.2%
|
||||||||
AAC Technologies Hldgs., Inc. | 110,500 | 624,012 | ||||||
Man Wah Hldgs. Ltd.* | 763,200 | 957,432 | ||||||
Truly International Hldgs. Ltd. | 1,946,000 | 963,453 | ||||||
2,544,897 | ||||||||
Italy 3.7%
|
||||||||
De'Longhi SpA | 44,400 | 694,057 | ||||||
ERG SpA | 122,200 | 1,141,997 | ||||||
1,836,054 | ||||||||
Japan 13.9%
|
||||||||
CMIC Hldgs. Co. Ltd.* | 13,400 | 274,945 | ||||||
Enish, Inc.* | 19,000 | 848,659 | ||||||
Enplas Corp.* | 15,900 | 1,176,709 | ||||||
Kanamoto Co. Ltd. | 21,000 | 419,449 | ||||||
Odelic Co. Ltd. | 11,400 | 463,793 | ||||||
Sanix, Inc.* | 51,900 | 695,977 | ||||||
Showa Corp.* | 59,400 | 765,408 | ||||||
Tadano Ltd. | 87,000 | 1,114,035 | ||||||
TS Tech Co. Ltd. | 16,000 | 508,167 | ||||||
Tsumura & Co. | 18,100 | 533,620 | ||||||
6,800,762 | ||||||||
Norway 0.2%
|
||||||||
Norwegian Air Shuttle ASA* | 2,000 | 87,383 | ||||||
Singapore 1.2%
|
||||||||
OSIM International Ltd. | 278,000 | 430,982 | ||||||
Tat Hong Hldgs. Ltd.* | 181,000 | 179,929 | ||||||
610,911 | ||||||||
Sweden 2.7%
|
||||||||
Hexpol AB | 7,100 | 462,668 | ||||||
Intrum Justitia AB* | 42,100 | 863,208 | ||||||
1,325,876 | ||||||||
United Kingdom 25.3%
|
||||||||
888 Hldgs. PLC | 318,600 | 715,215 | ||||||
Ashtead Group PLC | 121,900 | 1,196,752 | ||||||
Babcock International Group PLC | 65,500 | 1,098,806 |
See accompanying notes to the financial statements.
25
Shares | Value | |||||||
Barratt Developments PLC* | 217,000 | $ | 1,021,798 | |||||
Bellway PLC | 28,100 | 542,768 | ||||||
Bodycote PLC | 43,800 | 349,068 | ||||||
Britvic PLC | 111,000 | 866,053 | ||||||
CSR PLC | 118,700 | 973,069 | ||||||
easyJet PLC | 48,100 | 948,100 | ||||||
Galliford Try PLC | 21,900 | 311,263 | ||||||
Intermediate Capital Group PLC | 158,800 | 1,050,375 | ||||||
International Personal Finance PLC | 169,730 | 1,288,141 | ||||||
Micro Focus International PLC | 91,018 | 982,856 | ||||||
Thomas Cook Group PLC* | 133,700 | 262,926 | ||||||
William Hill PLC | 118,177 | 792,460 | ||||||
12,399,650 | ||||||||
Total Equities
|
||||||||
(Cost: $41,122,198) | $ | 44,528,916 |
Face
Amount |
Value | |||||||
Commercial Paper 4.5%
|
||||||||
Prudential Financial
|
||||||||
0.30% due 7/01/2013 | 2,200,000 | $ | 2,200,000 | |||||
Total Commercial Paper
|
||||||||
(Cost: $2,200,000) | $ | 2,200,000 | ||||||
Total Investments 95.2%
|
||||||||
(Cost: $43,322,198) | $ | 46,728,916 | ||||||
Other Assets Less Liabilities 4.8% | 2,345,943 | |||||||
Net Assets 100% | $ | 49,074,859 |
Cost of investments is $43,471,897 for federal income tax purposes and net unrealized appreciation consists of:
Gross unrealized appreciation | $ | 5,201,543 | ||
Gross unrealized depreciation | (1,944,524 | ) | ||
Net unrealized appreciation | $ | 3,257,019 |
* | Non-income producing security during the period ended June 30, 2013 |
ADR American depositary receipt
See accompanying notes to the financial statements.
26
SECTOR ALLOCATIONS (As a percentage of Net Assets) | ||||
Consumer Discretionary | 16.0 | % | ||
Consumer Staples | 3.5 | % | ||
Energy | 7.7 | % | ||
Financials | 6.7 | % | ||
Health Care | 3.7 | % | ||
Industrials | 26.6 | % | ||
Information Technology | 20.8 | % | ||
Materials | 3.9 | % | ||
Telecommunications Service | 1.0 | % | ||
Utilities | 0.8 | % |
See accompanying notes to the financial statements.
27
Shares | Value | |||||||
Equities 90.4%
|
||||||||
Australia 0.5%
|
||||||||
Atlas Iron Ltd. | 20,000 | $ | 13,583 | |||||
Karoon Gas Australia Ltd. | 3,000 | 13,961 | ||||||
27,544 | ||||||||
China 35.8%
|
||||||||
Anton Oilfield Services Group | 100,000 | 71,692 | ||||||
Baidu.com, Inc. ADR* | 300 | 28,359 | ||||||
Biostime International Hldgs. Ltd. | 18,000 | 100,657 | ||||||
Bloomage Biotechnology Corp. | 110,000 | 140,547 | ||||||
China Medical System Hldgs. Ltd. | 50,000 | 44,508 | ||||||
China Modern Dairy Hldgs. Ltd.* | 150,000 | 42,692 | ||||||
China Overseas Grand Ocean Group Ltd. | 30,000 | 38,002 | ||||||
China Singyes Solar Technologies Hldgs. Ltd. | 100,000 | 104,696 | ||||||
China State Construction International Hldgs. Ltd. | 90,000 | 139,381 | ||||||
China Wireless Technologies, Inc. | 192,000 | 72,227 | ||||||
CIMC Enric Hldgs. Ltd. | 64,000 | 98,883 | ||||||
E-Commerce China Dangdang, Inc.* | 14,800 | 102,712 | ||||||
Great Wall Motor Co. Ltd. | 20,000 | 85,593 | ||||||
Hilong Hldg. Ltd.* | 190,000 | 111,247 | ||||||
Honghua Group Ltd. | 350,000 | 119,317 | ||||||
Kingsoft Corp. Ltd. | 85,000 | 139,776 | ||||||
Spreadtrum Communications, Inc. ADR* | 5,700 | 149,625 | ||||||
Sunny Optical Technology Group Co. Ltd. | 100,000 | 119,742 | ||||||
Tianjin Zhongxin Pharmaceutical Group Corp. Ltd.* | 130,000 | 141,310 | ||||||
Winteam Pharmaceutical Group Ltd.* | 170,000 | 75,513 | ||||||
1,926,479 | ||||||||
Hong Kong 13.0%
|
||||||||
AAC Technologies Hldgs., Inc. | 16,000 | 89,767 | ||||||
CITIC Telecom International Hldgs. Ltd. | 360,167 | 107,672 | ||||||
Fujikon Industrial Hldgs. Ltd.* | 230,000 | 83,636 | ||||||
Galaxy Entertainment Group Ltd.* | 20,000 | 97,148 | ||||||
Man Wah Hldgs. Ltd.* | 70,000 | 87,251 | ||||||
Techtronic Industries Co. Ltd. | 50,000 | 118,700 | ||||||
Truly International Hldgs. Ltd. | 230,000 | 113,362 | ||||||
697,536 | ||||||||
India 4.0%
|
||||||||
Havells India Ltd. | 3,000 | 36,980 | ||||||
Ipca Laboratories Ltd.* | 4,000 | 43,979 |
See accompanying notes to the financial statements.
28
Shares | Value | |||||||
McLeod Russel (India) Ltd.* | 12,000 | $ | 58,290 | |||||
Yes Bank Ltd. | 10,000 | 77,303 | ||||||
216,552 | ||||||||
Indonesia 9.9%
|
||||||||
PT Akasha Wira International TBK* | 160,000 | 56,231 | ||||||
PT Bumi Serpong Damai | 350,000 | 63,098 | ||||||
PT Ciputra Property TBK | 800,000 | 95,439 | ||||||
PT Global Mediacom TBK* | 300,000 | 64,563 | ||||||
PT Kawasan Industri Jababeka TBK* | 1,500,000 | 53,359 | ||||||
PT Mitra Adiperkasa TBK* | 40,000 | 28,083 | ||||||
PT Pakuwon Jati TBK* | 1,500,000 | 51,931 | ||||||
PT Waskita Karya Persero TBK* | 1,000,000 | 77,158 | ||||||
PT Wijaya Karya Persero TBK | 200,000 | 41,171 | ||||||
531,033 | ||||||||
Japan 2.9%
|
||||||||
Hajime Construction Co. Ltd.* | 900 | 50,150 | ||||||
JTEKT Corp.* | 3,500 | 39,231 | ||||||
Sanix, Inc.* | 3,500 | 46,878 | ||||||
Wacom Co. Ltd. | 2,000 | 22,108 | ||||||
158,367 | ||||||||
Philippines 1.2%
|
||||||||
Metropolitan Bank & Trust Co. | 15,000 | 38,372 | ||||||
Puregold Price Club, Inc.* | 30,000 | 25,184 | ||||||
63,556 | ||||||||
Singapore 9.8%
|
||||||||
Ezion Hldgs. Ltd. | 150,000 | 250,118 | ||||||
Sino Grandness Food Industry Group Ltd.* | 100,000 | 100,821 | ||||||
Super Group Ltd. | 18,000 | 63,153 | ||||||
Yoma Strategic Hldgs. Ltd.* | 90,000 | 64,431 | ||||||
Yongnam Hldgs. Ltd.* | 180,000 | 48,852 | ||||||
527,375 | ||||||||
South Korea 5.0%
|
||||||||
AJ Rent A Car Co. Ltd.* | 4,000 | 39,492 | ||||||
Com2uS Corp. | 1,500 | 43,630 | ||||||
Easy Bio, Inc.* | 15,000 | 64,957 | ||||||
Medy-Tox, Inc. | 300 | 26,272 | ||||||
Wemade Entertainment Co. Ltd.* | 2,000 | 93,564 | ||||||
267,915 |
See accompanying notes to the financial statements.
29
Shares | Value | |||||||
Thailand 8.3%
|
||||||||
Airports of Thailand PCL* | 23,000 | $ | 124,296 | |||||
AP Thailand PCL | 100,000 | 20,867 | ||||||
Central Plaza Hotel PCL | 60,000 | 63,990 | ||||||
Home Product Center PCL | 200,000 | 73,849 | ||||||
Quality Houses PCL | 200,000 | 19,857 | ||||||
Sino Thai Engineering & Construction PCL | 100,001 | 62,477 | ||||||
Ticon Industrial Connection PCL | 80,000 | 46,432 | ||||||
Toyo-Thai Corp. PCL* | 35,000 | 37,262 | ||||||
449,030 | ||||||||
Total Equities
|
||||||||
(Cost: $4,440,567) | $ | 4,865,387 | ||||||
Total Investments 90.4%
|
||||||||
(Cost: $4,440,567) | $ | 4,865,387 | ||||||
Other Asset Less Liabilities 9.6% | 518,097 | |||||||
Net Assets 100% | $ | 5,383,484 |
Cost of Investments is $4,453,662 for federal income tax purposes and net unrealized appreciation consists of:
Gross unrealized appreciation | $ | 732,955 | ||
Gross unrealized depreciation | (321,230 | ) | ||
Net unrealized appreciation | $ | 411,725 |
(a) | Certain securities were fair valued under the discretion of the Board of Trustees |
* | Non-income producing security during the period ended June 30, 2013 |
ADR American depositary receipt
SECTOR ALLOCATIONS (As a percentage of Net Assets) | ||||
Consumer Discretionary | 16.6 | % | ||
Consumer Staples | 8.3 | % | ||
Energy | 10.5 | % | ||
Financials | 9.4 | % | ||
Health Care | 6.2 | % | ||
Industrials | 17.1 | % | ||
Information Technology | 16.2 | % | ||
Materials | 4.1 | % | ||
Telecommunication Service | 2.0 | % |
See accompanying notes to the financial statements.
30
See accompanying notes to the financial statements.
31
See accompanying notes to the financial statements.
32
Micro-Cap
Fund |
Emerging
Growth Fund |
Small-Cap
Opportunities Fund |
||||||||||
Investment Income:
|
||||||||||||
Interest | $ | 25,000 | $ | 81 | $ | | ||||||
Dividends (a) | 52,231 | 68,260 | 11,129 | |||||||||
Total Income | 77,231 | 68,341 | 11,129 | |||||||||
Expenses:
|
||||||||||||
Investment advisory fees (see note 2) | 62,137 | 135,294 | 14,725 | |||||||||
Management fees (see note 2) | 41,424 | 122,896 | 14,725 | |||||||||
Distribution fees and shareholder services (see note 2) | 25,890 | 76,810 | 9,203 | |||||||||
Transfer agent fees and expenses | 21,787 | 50,216 | 14,120 | |||||||||
Custodian fees and expenses | 28,141 | 31,710 | 23,835 | |||||||||
Federal and state registration fees | 9,705 | 10,750 | 10,047 | |||||||||
Other | 19,581 | 52,182 | 6,703 | |||||||||
Total expenses before reimbursed expenses | 208,665 | 479,858 | 93,358 | |||||||||
Earnings credit (see note 5) | 16 | 14 | 23 | |||||||||
Expense reimbursement (see note 2) | 1,503 | | 19,775 | |||||||||
Total Expenses | 207,146 | 479,844 | 73,560 | |||||||||
Net Investment Loss | (129,915 | ) | (411,503 | ) | (62,431 | ) | ||||||
Net Realized and Unrealized Gains
(Losses) from Investments: |
||||||||||||
Net realized gain on investment transactions | 1,456,123 | 4,938,778 | 569,422 | |||||||||
Change in unrealized appreciation/depreciation on investments | 2,829,120 | 6,878,541 | 493,685 | |||||||||
Net realized/unrealized gains on investments | 4,285,243 | 11,817,319 | 1,063,107 | |||||||||
Net increase in net assets resulting from operations | $ | 4,155,328 | $ | 11,405,816 | $ | 1,000,676 |
(a) | Dividends are net of foreign withholding tax of $2,009, $0 and $0 for the Micro-Cap Fund, Emerging Growth Fund, and Small-Cap Opportunities Fund, respectively |
See accompanying notes to the financial statements.
33
China
Opportunities Fund |
International
Opportunities Fund |
Asia
Opportunities Fund |
||||||||||
Investment Income:
|
||||||||||||
Interest | $ | 7,526 | $ | 762 | $ | | ||||||
Dividends (a) | 1,663,612 | 458,895 | 42,344 | |||||||||
Total Income | 1,671,138 | 459,657 | 42,344 | |||||||||
Expenses:
|
||||||||||||
Investment advisory fees (see note 2) | 829,222 | 206,458 | 38,045 | |||||||||
Distribution fees and shareholder services (see note 2) | 165,844 | 41,292 | 7,609 | |||||||||
Transfer agent fees and expenses
|
133,558 | 37,637 | 13,217 | |||||||||
Custodian fees and expenses | 156,011 | 84,886 | 91,748 | |||||||||
Federal and state registration fees | 11,677 | 9,786 | 10,448 | |||||||||
Other | 110,775 | 24,231 | 6,024 | |||||||||
Total expenses before reimbursed expenses | 1,407,087 | 404,290 | 167,091 | |||||||||
Earnings credit (see note 5) | 258 | 699 | 86 | |||||||||
Expense reimbursement (see note 2) | | 138,608 | 91,210 | |||||||||
Total Expenses | 1,406,829 | 264,983 | 75,795 | |||||||||
Net Investment Income (Loss) | 264,309 | 194,674 | (33,451 | ) | ||||||||
Net Realized and Unrealized Gains
(Losses) from Investments: |
||||||||||||
Net realized gains on investment transactions | 15,042,204 | 3,757,839 | 889,889 | |||||||||
Net realized losses on foreign currency transactions | (12,646 | ) | (3,395 | ) | (3,892 | ) | ||||||
Net realized gains on investment and foreign currency transactions | 15,029,558 | 3,754,444 | 885,997 | |||||||||
Change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies | 5,870,973 | 726,263 | (758,638 | ) | ||||||||
Net realized/unrealized gains on investments and foreign currencies | 20,900,531 | 4,480,707 | 127,359 | |||||||||
Net increase in net assets resulting from operations | $ | 21,164,840 | $ | 4,675,381 | $ | 93,908 |
(a) | Dividends are net of foreign withholding tax of $20,100, $47,186, and $3,034 for the China Opportunities Fund, International Opportunities Fund and Asia Opportunities Fund, respectively. |
See accompanying notes to the financial statements.
34
Micro-Cap Fund | ||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Year Ended
December 31, 2012 |
|||||||
From Operations:
|
||||||||
Net investment loss | $ | (129,915 | ) | $ | (270,778 | ) | ||
Net realized gain on investment transactions | 1,456,123 | 900,558 | ||||||
Change in net unrealized appreciation (depreciation) of investments | 2,829,120 | 1,085,955 | ||||||
Net increase in net assets resulting from operations | 4,155,328 | 1,715,735 | ||||||
From Capital Share Transactions:
|
||||||||
Proceeds from sale of shares | 288,373 | 472,083 | ||||||
Redemption of shares | (1,956,653 | ) | (3,782,824 | ) | ||||
Net decrease from capital share transactions | (1,668,280 | ) | (3,310,741 | ) | ||||
Total increase (decrease) in net assets | 2,487,048 | (1,595,006 | ) | |||||
Net Assets:
|
||||||||
Beginning of period | 19,545,417 | 21,140,423 | ||||||
End of period | $ | 22,032,465 | $ | 19,545,417 | ||||
Accumulated Net Investment Loss | $ | (129,915 | ) | $ | (270,772 | ) | ||
Transactions in Shares:
|
||||||||
Shares sold | 21,107 | 39,642 | ||||||
Less shares redeemed | (145,150 | ) | (320,093 | ) | ||||
Net decrease from capital share transactions | (124,043 | ) | (280,451 | ) |
See accompanying notes to the financial statements.
35
Emerging Growth Fund | ||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Year Ended
December 31, 2012 |
|||||||
From Operations:
|
||||||||
Net investment loss | $ | (411,503 | ) | $ | (881,599 | ) | ||
Net realized gain on investment transactions | 4,938,778 | 1,129,380 | ||||||
Change in net unrealized appreciation (depreciation) of investments | 6,878,541 | 4,600,034 | ||||||
Net increase in net assets resulting from operations | 11,405,816 | 4,847,815 | ||||||
From Capital Share Transactions:
|
||||||||
Proceeds from sale of shares | 2,034,654 | 5,067,881 | ||||||
Redemption of shares | (6,436,627 | ) | (11,612,374 | ) | ||||
Net decrease from capital share transactions | (4,401,973 | ) | (6,544,493 | ) | ||||
Total increase (decrease) in net assets | 7,003,843 | (1,696,678 | ) | |||||
Net Assets:
|
||||||||
Beginning of period | 58,444,116 | 60,140,794 | ||||||
End of period | $ | 65,447,959 | $ | 58,444,116 | ||||
Accumulated Net Investment Loss | $ | (411,503 | ) | $ | (881,582 | ) | ||
Transactions in Shares:
|
||||||||
Shares sold | 92,720 | 257,078 | ||||||
Less shares redeemed | (297,586 | ) | (590,066 | ) | ||||
Net decrease from capital share transactions | (204,866 | ) | (332,988 | ) |
See accompanying notes to the financial statements.
36
Small-Cap Opportunities Fund | ||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Year Ended
December 31, 2012 |
|||||||
From Operations:
|
||||||||
Net investment loss | $ | (62,431 | ) | $ | (126,209 | ) | ||
Net realized gains on investment transactions | 569,422 | 599,015 | ||||||
Change in net unrealized appreciation (depreciation) of investments | 493,685 | 151,099 | ||||||
Net increase in net assets resulting from operations | 1,000,676 | 623,905 | ||||||
From Capital Share Transactions:
|
||||||||
Proceeds from sale of shares | 110,185 | 309,070 | ||||||
Redemption of shares | (928,930 | ) | (1,214,670 | ) | ||||
Net decrease from capital share transactions | (818,745 | ) | (905,600 | ) | ||||
Total increase (decrease) in net assets | 181,931 | (281,695 | ) | |||||
Net Assets:
|
||||||||
Beginning of period | 7,297,709 | 7,579,404 | ||||||
End of period | $ | 7,479,640 | $ | 7,297,709 | ||||
Accumulated Net Investment Loss | $ | (62,431 | ) | $ | (126,206 | ) | ||
Transactions in Shares:
|
||||||||
Shares sold | 8,554 | 25,517 | ||||||
Less shares redeemed | (72,173 | ) | (100,251 | ) | ||||
Net decrease from capital share transactions | (63,619 | ) | (74,734 | ) |
See accompanying notes to the financial statements.
37
China Opportunities Fund | ||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Year Ended December 31,
2012 |
|||||||
From Operations:
|
||||||||
Net investment income (loss) | $ | 264,309 | $ | (192,842 | ) | |||
Net realized gain (loss) on investments and foreign
currency transactions |
15,029,558 | (11,791,400 | ) | |||||
Change in net unrealized appreciation (depreciation) of investments and foreign currencies | 5,870,973 | 41,669,555 | ||||||
Net increase in net assets resulting from operations | 21,164,840 | 29,685,313 | ||||||
From Capital Share Transactions:
|
||||||||
Proceeds from sale of shares | 14,849,216 | 9,263,157 | ||||||
Redemption of shares | (25,322,038 | ) | (38,827,568 | ) | ||||
Net decrease from capital share transactions | (10,472,822 | ) | (29,564,411 | ) | ||||
Total increase in net assets | 10,692,018 | 120,902 | ||||||
Net Assets:
|
||||||||
Beginning of period | 119,939,759 | 119,818,857 | ||||||
End of period | $ | 130,631,777 | $ | 119,939,759 | ||||
Accumulated Net Investment Income (Loss) | $ | 156,783 | $ | (779,570 | ) | |||
Transactions in Shares:
|
||||||||
Shares sold | 1,210,011 | 929,860 | ||||||
Less shares redeemed | (2,020,407 | ) | (3,918,462 | ) | ||||
Net decrease from capital share transactions | (810,396 | ) | (2,988,602 | ) |
See accompanying notes to the financial statements.
38
International Opportunities Fund | ||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Year Ended December 31,
2012 |
|||||||
From Operations:
|
||||||||
Net investment income | $ | 194,674 | $ | 150,479 | ||||
Net realized gains on investments and foreign currency transactions | 3,754,444 | 2,272,408 | ||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currencies | 726,263 | 2,471,903 | ||||||
Net increase in net assets resulting from operations | 4,675,381 | 4,894,790 | ||||||
From Dividends:
|
||||||||
Dividends from net investment income | | (332,920 | ) | |||||
From Capital Share Transactions:
|
||||||||
Proceeds from sale of shares | 27,689,819 | 3,606,079 | ||||||
Proceeds from reinvestment of dividends | | 283,465 | ||||||
Redemption of shares | (4,041,166 | ) | (2,930,718 | ) | ||||
Net increase from capital share transactions | 23,648,653 | 958,826 | ||||||
Total increase in net assets | 28,324,034 | 5,520,696 | ||||||
Net Assets:
|
||||||||
Beginning of period | 20,750,825 | 15,230,129 | ||||||
End of period | $ | 49,074,859 | $ | 20,750,825 | ||||
Accumulated Net Investment Income (Loss) | $ | 153,328 | $ | (303,163 | ) | |||
Transactions in Shares:
|
||||||||
Shares sold | 1,833,280 | 301,060 | ||||||
Shares issued in reinvestment of distributions | | 22,533 | ||||||
Less shares redeemed | (274,815 | ) | (258,614 | ) | ||||
Net increase from capital share transactions | 1,558,465 | 64,979 |
See accompanying notes to the financial statements.
39
Asia Opportunities Fund | ||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Year Ended December 31,
2012 |
|||||||
From Operations:
|
||||||||
Net investment loss | $ | (33,451 | ) | $ | (43,037 | ) | ||
Net realized gain (loss) on investments and foreign
currency transactions |
885,997 | (19,665 | ) | |||||
Change in net unrealized appreciation (depreciation) of investments and foreign currencies | (758,638 | ) | 1,020,593 | |||||
Net increase in net assets resulting from operations | 93,908 | 957,891 | ||||||
From Capital Share Transactions:
|
||||||||
Proceeds from sale of shares | 198,679 | 141,736 | ||||||
Redemption of shares | (965,781 | ) | (1,472,550 | ) | ||||
Net decrease from capital share transactions | (767,102 | ) | (1,330,814 | ) | ||||
Total decrease in net assets | (673,194 | ) | (372,923 | ) | ||||
Net Assets:
|
||||||||
Beginning of period | 6,056,678 | 6,429,601 | ||||||
End of period | $ | 5,383,484 | $ | 6,056,678 | ||||
Accumulated Net Investment Loss | $ | (41,673 | ) | $ | (64,339 | ) | ||
Transactions in Shares:
|
||||||||
Shares sold | 20,953 | 17,241 | ||||||
Less shares redeemed | (102,311 | ) | (183,311 | ) | ||||
Net decrease from capital share transactions | (81,358 | ) | (166,070 | ) |
See accompanying notes to the financial statements.
40
Description of business. The Oberweis Funds (the Trust) is registered under the Investment Company Act of 1940 as a diversified open-end management investment company. The Trust is authorized to operate numerous Funds under various trading strategies. The Trust consists of six Funds: the Oberweis Micro-Cap Fund, the Oberweis Emerging Growth Fund, the Oberweis Small-Cap Opportunities Fund, the Oberweis China Opportunities Fund, the Oberweis International Opportunities Fund, and the Oberweis Asia Opportunities Fund (collectively, the Funds).
Investment valuation. Investments in securities are stated at value as of the close of the regular trading session on the New York Stock Exchange (NYSE) (generally 3 p.m., Central Standard Time). Each listed and unlisted security for which last sale information is regularly reported is valued at the last reported sales price on that day. If there has been no sale on such day, then such security is valued at the current days bid price. Any unlisted security for which last sale information is not regularly reported and any listed debt security which has an inactive listed market for which over-the-counter market quotations are readily available is valued at the closing bid price determined on the basis of reasonable inquiry. Options are valued at the last reported bid price on the primary exchange as of the close of the regular trading session of the Chicago Board Options Exchange (CBOE). Restricted securities and any other securities or other assets for which market quotations are not readily available are valued by appraisal at their fair value as determined in good faith under procedures established by and under the general supervision and responsibility of the Board of Trustees. Short-term debt obligations, commercial paper and repurchase agreements are valued on the basis of quoted yields for securities of comparable maturity, quality and type or on the basis of amortized cost.
The Oberweis China Opportunities Fund, the Oberweis International Opportunities Fund, and the Oberweis Asia Opportunities Fund hold foreign equity securities. Foreign securities are fair valued as described in the following circumstances. Generally, trading in foreign securities markets is completed each day at various times prior to the close of the regular trading session of the NYSE. Due to the time differences between the closings of the relevant foreign securities exchanges and the close of the regular trading session of the NYSE for the Funds, the Funds will fair value their foreign investments when it is determined that the market quotations for the foreign investments either are not readily available or are unreliable and, therefore, do not represent fair value. When the fair value prices are utilized, these prices will attempt to reflect the impact of the U.S. financial markets perceptions and trading activities on the Funds foreign investments since the last closing prices of the foreign investments were calculated on their primary foreign securities markets or exchanges. For these purposes, the Board of Trustees of the Trust has determined that movements in relevant indices, after the close of the foreign securities exchanges, may demonstrate that market quotations are unreliable, and may trigger fair value pricing for certain securities. Consequently, fair valuation of portfolio securities may occur on a daily basis. In determining fair value prices, the Trust utilizes data furnished by an independent pricing service (and that data draws upon, among other information, the market values of foreign investments). When a Fund uses fair value pricing, the values assigned to the Funds foreign investments may not be the quoted or published prices of the investments on their primary markets or exchanges.
41
Fair Value Measurements. In accordance with Financial Accounting Standards Board (FASB) guidance, the Funds utilize the Fair Value Measurements and Disclosures to define fair value, set out a framework for measuring fair value, and expand disclosures regarding fair value measurements. The Fair Value Measurement Standard applies to fair value measurements already required or permitted by existing standards.
Various inputs are used in determining the value of the Funds investments. These inputs are summarized in the three levels listed below:
| Level 1 Quoted prices in active markets for identical securities. |
| Level 2 Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc). |
| Level 3 Significant unobservable inputs (including the Funds 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 value the Funds net assets as of June 30, 2013:
Micro-Cap
Fund |
Emerging
Growth Fund |
Small-Cap
Opportunities Fund |
||||||||||
Level 1 Equities
|
$ | 20,871,853 | $ | 65,509,731 | $ | 7,232,632 | ||||||
REIT
|
357,850 | 564,140 | | |||||||||
Total Level 1
|
21,229,703 | 66,073,871 | 7,232,632 | |||||||||
Level 2 Equities
|
| | | |||||||||
Corporate Bonds
|
576,270 | | | |||||||||
Total Level 2
|
576,270 | | | |||||||||
Level 3
|
| | | |||||||||
Total Investments
|
$ | 21,805,973 | $ | 66,073,871 | $ | 7,232,632 |
China
Opportunities Fund |
International
Opportunities Fund |
Asia
Opportunities Fund |
||||||||||
Level 1 - Equities
|
||||||||||||
Total Asia
|
$ | 29,349,836 | $ | 15,179,234 | $ | 421,243 | ||||||
Total Australia
|
| 347,216 | | |||||||||
Total Europe
|
| 26,911,103 | | |||||||||
Total North America
|
| 2,091,363 | | |||||||||
Total Level 1
|
29,349,836 | 44,528,916 | 421,243 | |||||||||
Level 2 - Equities
|
||||||||||||
Total Asia
|
94,010,712 | | 4,416,600 | |||||||||
Total Australia
|
| | 27,544 | |||||||||
Total Europe
|
| | | |||||||||
Total North America
|
| | | |||||||||
Total Commercial Paper
|
6,400,000 | 2,200,000 | | |||||||||
Total Level 2
|
100,410,712 | 2,200,000 | 4,444,144 | |||||||||
Level 3
|
| | | |||||||||
Total Investments
|
$ | 129,760,548 | $ | 46,728,916 | $ | 4,865,387 |
42
The Funds assets include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation. The pricing service provides fair market valuation on days when the movement in relevant indices exceeds a predetermined threshold. When fair market valuations are employed these techniques may result in transfers between Level 1 and Level 2.
The Micro-Cap Fund holds a corporate bond with a convertible feature. The value of this security is determined based on multiple factors, including the performance of the underlying stock, its volatility, and coupon rate.
Significant transfers between Levels 1 and 2 included securities valued at $2,961,161, $17,684,603, and $993,042 at June 30, 2013 respectively for the China Opportunities Fund, International Opportunities Fund, and the Asia Opportunities Fund. These changes were primarily the result of certain foreign securities using a systematic fair value model at June 30, 2013.
Foreign Currency Transactions. The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective date of these transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gains or losses from investments and foreign currencies.
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries.
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers of industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and a high price volatility with respect to securities of issuers from developing countries.
Fund share valuation. Fund shares are sold and redeemed on a continuous basis at net asset value. On each day the NYSE is open for trading, the net asset value per share is determined as of the later of the close of the NYSE or the CBOE by dividing the total value of each Funds investments and other assets, less liabilities, by the number of each Funds shares outstanding.
Investment transactions and investment income. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed). Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon as the information is available to the Fund, and interest income is recorded on the
43
accrual basis and includes amortization of premium and discount. Realized gains and losses from investment transactions are reported on an identified cost basis. Gains and losses on premiums from expired options are recognized on the date of expiration.
Federal income taxes and dividends to shareholders. It is the policy of the Funds to comply with all requirements of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies and to distribute substantially all of their taxable income to their shareholders. The Funds have met the requirements of the Code applicable to regulated investment companies for the period ended June 30, 2013. Therefore, no federal income tax provision is required. Income and capital gains of the Funds are determined in accordance with both tax regulations and accounting principles generally accepted in the U.S. (GAAP). Such treatment may result in temporary and permanent differences between tax basis earnings and earnings reported for financial statement purposes. These reclassifications, which have no impact on the net asset value of the Funds, are primarily attributable to certain differences in computation of distributable income and capital gains under federal tax rules versus GAAP, and the use of the tax accounting practice known as equalization.
In addition to the requirements of the Code, the Funds may be subject to short-term capital gains tax in India on gains realized upon disposition of Indian securities held less than one year. The tax is computed on net realized gains; any realized losses in excess of gains may be carried forward for a period of up to eight years to offset future gains. Any net taxes payable must be remitted to the Indian government prior to repatriation of sales proceeds. The funds that invest in Indian securities accrue a deferred tax liability for net unrealized short-term gains in excess of available carryforwards on Indian securities. As of June 30, 2013, the Oberweis Asia Opportunities Fund has recorded a payable of $0 as an estimate for potential future India capital gains taxes, which is included in the net unrealized appreciation of investments and translation of assets and liabilities denominated in the foreign currencies line of the Statement of Assets and Liabilities.
For the period ended June 30, 2013, permanent book and tax basis differences resulting primarily from differing treatments for net operating losses, foreign currency transactions, passive foreign investment company (PFIC) adjustments were identified and reclassified among the components of the Funds net assets.
As of June 30, 2013, the China Opportunities Fund and the International Opportunities Fund had a tax basis in undistributed net investment income of $936,127 and $296,324. No other Funds had undistributed net investment income or net short-term or net long-term capital gains from the prior calendar year.
44
As of June 30, 2013, the following Funds had net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by treasury regulations through the following year ends:
2016 | 2017 | Not Subject to Expiration | ||||||||||
Micro-Cap Fund | $ | 2,885,816 | $ | 2,989,022 | $ | | ||||||
Emerging Growth Fund | $ | | $ | 17,736,174 | $ | 1,289,064 | ||||||
Small-Cap Opportunities Fund | $ | | $ | 342,042 | $ | | ||||||
China Opportunities Fund | $ | | $ | | $ | 16,049,598 | ||||||
International Opportunities Fund | $ | | $ | 6,283,387 | $ | | ||||||
Asia Opportunities Fund | $ | 899,557 | $ | 1,710,212 | $ | 185,767 |
Post-October capital losses and qualified late-year losses incurred after October 31 and within the taxable year are deemed to arise on the first business day of the Funds next taxable year. For the year ended December 31, 2012, the following Funds deferred to January 1, 2013 post-October capital losses:
Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds will be permitted to carryforward capital losses incurred in taxable years beginning after December 22, 2010, the date of enactment of the Act, for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
Post-October
Capital Losses |
Qualified
Late-Year Losses |
|||||||
Micro-Cap Fund | $ | 27,749 | $ | | ||||
Emerging Growth Fund | $ | 326,442 | $ | | ||||
Small-Cap Opportunities Fund | $ | 39,384 | $ | | ||||
China Opportunities Fund | $ | 288,214 | $ | | ||||
International Opportunities Fund | $ | | $ | | ||||
Asia Opportunities Fund | $ | | $ | 2,607 |
The Funds have reviewed all open tax years and major jurisdictions and concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for exam by taxing authorities and, as of June 30, 2013, open Federal tax years include the tax years ended 2009 through 2013. The Funds have no examinations in progress and are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
45
Use of estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
Indemnifications. Under the Trusts organizational documents, its present and former Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trusts 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. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
The Funds have written agreements with Oberweis Asset Management, Inc. (OAM) as the Funds investment adviser and manager. Oberweis Securities, Inc. (OSI), the Funds principal distributor, is an affiliate of OAM.
Investment advisory agreement. Under the Advisory Agreement, OAM provides investment advisory services to the Micro-Cap, Emerging Growth, and Small-Cap Opportunities Funds and pursuant to a separate Management Agreement, OAM provides non-investment advisory management services such as administrative, compliance and accounting services to these Funds. For investment advisory services, the Micro-Cap Fund paid monthly investment advisory fees at an annual rate equal to .60% of average daily net assets. The Emerging Growth Fund paid monthly investment advisory fees at an annual rate equal to .45% of the first $50 million of average daily net assets and .40% of average daily net assets in excess of $50 million. The Small-Cap Opportunities Fund paid monthly investment advisory fees at an annual rate equal to .40% of average daily net assets. For investment advisory and management services, the China Opportunities Fund, International Opportunities Fund, and Asia Opportunities Fund paid monthly investment advisory and management fees at an annual rate equal to 1.25% of average daily net assets. For the period ended June 30, 2013, the Micro-Cap Fund, Emerging Growth Fund, and Small-Cap Opportunities Fund, incurred investment advisory fees totaling $62,137, $135,294, and $14,725, respectively. For the period ended June 30, 2013, the China Opportunities Fund, International Opportunities Fund, and Asia Opportunities Fund incurred investment advisory and management fees totaling $829,222, $206,458 and $38,045, respectively.
Management agreement. For management services and facilities furnished, the Micro-Cap Fund, Emerging Growth Fund, and Small-Cap Opportunities Fund each paid a monthly fee at an annual rate equal to .40% of average daily net assets. For the period ended June 30, 2013, the Micro-Cap Fund, Emerging Growth Fund, and Small-Cap Opportunities Fund incurred management fees totaling $41,424, $122,896, and $14,725, respectively.
Expense reimbursement. OAM is contractually obligated to reduce its management fees or reimburse the Emerging Growth Fund, Micro-Cap Fund, and Small-Cap Opportunities Fund to the extent that total ordinary operating expenses, as defined, exceed in any one year the following amounts expressed as a percentage of each Funds average daily net assets: 2% of
46
the first $25 million; plus 1.8% of the next $25 million; plus 1.6% of average daily net assets in excess of $50 million. OAM is also contractually obligated to reduce its investment and management fees or reimburse the China Opportunities Fund, and the Asia Opportunities Fund to the extent that total ordinary operating expenses, as defined, exceed in any one year 2.49% expressed as a percentage of the Funds average daily net assets. OAM is also contractually obligated to reduce its investment and management fees or reimburse the International Opportunities Fund to the extent that total ordinary operating expenses, as defined, exceed in any one year 1.60% expressed as a percentage of the Funds average daily net assets. For the period ended June 30, 2013 OAM reimbursed the Micro-Cap Fund, the Small-Cap Opportunities Fund, the International Opportunities Fund, and the Asia Opportunities Fund in the amount of $1,503, $19,775, $138,608 and $91,210, respectively.
Officers and trustees. Certain officers and trustees of the Trust are also officers and/or directors of OAM and OSI. During the period ended June 30, 2013, the Trust made no direct payments to its officers and paid $26,000 to its unaffiliated trustees.
Distribution and shareholder service agreement. The Funds have a distribution and shareholder services agreement with OSI. For services under the distribution and shareholder services agreement, the Funds pay OSI a fee at the annual rate of .25% of the average daily net assets as compensation for services. For the period ended June 30, 2013, the Micro-Cap Fund, Emerging Growth Fund, Small-Cap Opportunities Fund, China Opportunities Fund, International Opportunities Fund, and Asia Opportunities Fund incurred distribution fees totaling $25,890, $76,810, $9,203, $165,844, $41,292, and $7,609, respectively.
Affiliated Commissions. For the period ended June 30, 2013, the Micro-Cap Fund, Emerging Growth Fund, Small-Cap Opportunities Fund, China Opportunities Fund, International Opportunities Fund, and Asia Opportunities Fund did not execute any security transactions through OSI and therefore did not pay commissions to OSI.
The cost of securities purchased and proceeds from securities sold during the period ended June 30, 2013, other than options written and money market investments, aggregated $4,064,113 and $6,034,138, respectively, for the Micro-Cap Fund, $16,700,233 and $21,881,028, respectively, for the Emerging Growth Fund, $4,844,644 and $5,949,009, respectively, for the Small-Cap Opportunities Fund, $82,748,363 and $100,441,852, respectively, for the China Opportunities Fund, $48,058,990 and $28,286,335, respectively, for the International Opportunities Fund and $7,424,324 and $8,647,646, respectively, for the Asia Opportunities Fund. The Funds did not hold government securities during the period ended June 30, 2013.
The Funds may write covered call options. The premiums received provide a partial hedge (protection) against declining prices and enables each Fund to generate a higher return during periods when OAM does not expect the underlying security to make any major price moves in the near future but still deems the underlying security to be, over the long term, an attractive investment for each Fund. The Funds write covered call options for which premiums received are recorded as liabilities and are subsequently adjusted to the current value of the options written. Premiums received from writing options that expire are treated as realized
47
gains. Premiums received from writing options, which are either exercised or closed, are offset against the proceeds received or amount paid on the transaction to determine realized gains or losses. Amounts recovered for securities litigation are included in the realized gains of the Fund and are recorded when received. The Funds did not write covered call options for the period ended June 30, 2013.
The Oberweis Funds are designed for long-term investors. To discourage market timers redemptions of shares of the Micro-Cap Fund, Emerging Growth Fund, and Small-Cap Opportunities Fund within 90 days of purchase are subject to a 1% redemption fee of the total redemption amount and 2% for the China Opportunities Fund, the International Opportunities Fund, and the Asia Opportunities Fund. The redemption fee is deducted from the redemption proceeds and is retained by the Fund.
The redemption fee is retained by the Funds for the expense they incur in connection with shareholder redemptions. Redemption fees received by the Micro-Cap Fund, Emerging Growth Fund, Small-Cap Opportunities Fund, China Opportunities Fund, International Opportunities Fund, and Asia Opportunities Fund were $193, $291, $22, $57,421, $18,629, and $59, respectively, for the period ended June 30, 2013, and were recorded as a reduction of the cost of shares redeemed in the statements of changes in net assets.
The Trust, as part of the agreement with the Custodian, receives credits against its custodian fees on its uninvested cash balances and is allowed to borrow for temporary purposes. Borrowings are not to exceed 5% of the value of each Funds total assets at the time of any such borrowing. Interest on amounts borrowed is calculated at the prime rate and is payable monthly. During the period ended June 30, 2013, the Micro-Cap Fund, Emerging Growth Fund, Small-Cap Opportunities Fund, China Opportunities Fund, International Opportunities Fund, and Asia Opportunities Fund received credits of $16, $14, $23, $258, $699, and $86, respectively. During the period ended June 30, 2013, the Micro-Cap Fund, Emerging Growth Fund, Small-Cap Opportunities Fund, China Opportunities Fund, International Opportunities Fund, and Asia Opportunities Fund incurred interest charges of $305, $4,782, $164, $225, $0 and $18, respectively, which is included in custodian fees and expenses in the statement of operations.
The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no significant events have occurred that require disclosure.
48
Per share income and capital for a share outstanding throughout each period is as follows:
Micro-Cap Fund | ||||||||||||||||||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Years Ended December 31, |
|||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
Net asset value at beginning of period | $ | 12.16 | $ | 11.20 | $ | 12.18 | $ | 10.40 | $ | 6.95 | $ | 15.56 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment loss (a) | (.08 | ) | (.16 | ) | (.18 | ) | (.17 | ) | (.15 | ) | (.17 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 2.78 | 1.12 | (.80 | ) | 1.95 | 3.60 | (8.10 | ) | ||||||||||||||||
Total from investment operations | 2.70 | .96 | (.98 | ) | 1.78 | 3.45 | (8.27 | ) | ||||||||||||||||
Redemption Fees (a) (e) | | | | | | | ||||||||||||||||||
Less distributions:
|
||||||||||||||||||||||||
Distribution from net realized gains on investments | | | | | | (.34 | ) | |||||||||||||||||
Net asset value at end of period | $ | 14.86 | $ | 12.16 | $ | 11.20 | $ | 12.18 | $ | 10.40 | $ | 6.95 | ||||||||||||
Total Return (%) | 22.20 | (d) | 8.57 | (8.05 | ) | 17.12 | 49.64 | (52.98 | ) | |||||||||||||||
Ratio/Supplemental Data
|
||||||||||||||||||||||||
Net Assets at end of period (in thousands) | $ | 22,032 | $ | 19,545 | $ | 21,140 | $ | 26,619 | $ | 26,967 | $ | 21,383 | ||||||||||||
Ratio of gross expenses to average net assets (%) | 2.02 | (c) | 2.00 | 1.91 | 1.89 | 1.99 | 1.69 | |||||||||||||||||
Ratio of net expenses to average net assets (%) (b) | 2.00 | (c) | 2.00 | 1.91 | 1.89 | 1.99 | 1.68 | |||||||||||||||||
Ratio of net investment loss to average net assets (%) | (1.26 | ) (c) | (1.31 | ) | (1.53 | ) | (1.68 | ) | (1.81 | ) | (1.53 | ) | ||||||||||||
Portfolio turnover rate (%) | 20 | (d) | 48 | 62 | 85 | 92 | 81 |
Notes:
(a) | The net investment loss per share data and the redemption fee data were determined using average shares outstanding during the period. |
(b) | The ratios in this row reflect the impact, if any, of expense offset arrangements and expense reimbursement from the advisor. |
(c) | Annualized. |
(d) | Not annualized. |
(e) | Amount represents less than $.01 per share. |
49
Per share income and capital for a share outstanding throughout each period is as follows:
Emerging Growth Fund | ||||||||||||||||||||||||
Six Months Ended June 30, 2013 (unaudited) |
Years Ended December 31, |
|||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
Net asset value at beginning of period | $ | 19.68 | $ | 18.21 | $ | 20.59 | $ | 16.24 | $ | 10.69 | $ | 25.80 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment loss (a) | (.14 | ) | (.28 | ) | (.29 | ) | (.23 | ) | (.18 | ) | (.22 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 4.13 | 1.75 | (2.11 | ) | 4.58 | 5.73 | (14.51 | ) | ||||||||||||||||
Total from investment operations | 3.99 | 1.47 | (2.40 | ) | 4.35 | 5.55 | (14.73 | ) | ||||||||||||||||
Redemption Fees (a) | | (e) | | (e) | 0.02 | | (e) | | (e) | | (e) | |||||||||||||
Less distributions:
|
||||||||||||||||||||||||
Distribution from net realized gains on investments | | | | | | (.38 | ) | |||||||||||||||||
Net asset value at end of period | $ | 23.67 | $ | 19.68 | $ | 18.21 | $ | 20.59 | $ | 16.24 | $ | 10.69 | ||||||||||||
Total Return (%) | 20.27 | (d) | 8.07 | (11.56 | ) | 26.79 | 51.92 | (57.00 | ) | |||||||||||||||
Ratio/Supplemental Data
|
||||||||||||||||||||||||
Net Assets at end of period (in thousands) | $ | 65,448 | $ | 58,444 | $ | 60,141 | $ | 99,013 | $ | 117,388 | $ | 81,738 | ||||||||||||
Ratio of gross expenses to average net assets (%) | 1.57 | (c) | 1.57 | 1.47 | 1.39 | 1.52 | 1.40 | |||||||||||||||||
Ratio of net expenses to average net assets (%) (b) | 1.57 | (c) | 1.57 | 1.47 | 1.39 | 1.52 | 1.40 | |||||||||||||||||
Ratio of net investment loss to average net assets (%) | (1.34 | ) (c) | (1.43 | ) | (1.39 | ) | (1.30 | ) | (1.43 | ) | (1.28 | ) | ||||||||||||
Portfolio turnover rate (%) | 27 | (d) | 54 | 85 | 104 | 97 | 89 |
Notes:
(a) | The net investment loss per share data and the redemption fee data were determined using average shares outstanding during the period. |
(b) | The ratios in this row reflect the impact, if any, of expense offset arrangements. |
(c) | Annualized. |
(d) | Not annualized. |
(e) | Amount represents less than $.01 per share. |
50
Per share income and capital for a share outstanding throughout each period is as follows:
Small-Cap Opportunities Fund | ||||||||||||||||||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Years Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
Net asset value at beginning of period | $ | 12.08 | $ | 11.16 | $ | 11.61 | $ | 9.09 | $ | 5.56 | $ | 15.55 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment loss (a) | (.11 | ) | (.20 | ) | (.22 | ) | (.17 | ) | (.14 | ) | (.22 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.86 | 1.12 | (.23 | ) | 2.69 | 3.66 | (8.81 | ) | ||||||||||||||||
Total from investment operations | 1.75 | .92 | (.45 | ) | 2.52 | 3.52 | (9.03 | ) | ||||||||||||||||
Redemption Fees (a) | | (e) | | (e) | | (e) | | (e) | .01 | | (e) | |||||||||||||
Less distributions:
|
||||||||||||||||||||||||
Distribution from net realized gains on investments | | | | | | (.96 | ) | |||||||||||||||||
Net asset value at end of period | $ | 13.83 | $ | 12.08 | $ | 11.16 | $ | 11.61 | $ | 9.09 | $ | 5.56 | ||||||||||||
Total Return (%) | 14.49 | (d) | 8.24 | (3.88 | ) | 27.72 | 63.49 | (57.66 | ) | |||||||||||||||
Ratio/Supplemental Data
|
||||||||||||||||||||||||
Net Assets at end of period (in thousands) | $ | 7,480 | $ | 7,298 | $ | 7,579 | $ | 7,961 | $ | 6,575 | $ | 4,232 | ||||||||||||
Ratio of gross expenses to average net assets (%) | 2.55 | (c) | 2.43 | 2.33 | 2.47 | 2.95 | 2.14 | |||||||||||||||||
Ratio of net expenses to
average net assets (%) (b) |
2.00 | (c) | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 | |||||||||||||||||
Ratio of net investment loss to average net assets (%) | (1.70 | ) (c) | (1.61 | ) | (1.87 | ) | (1.80 | ) | (1.92 | ) | (1.94 | ) | ||||||||||||
Portfolio turnover rate (%) | 67 | (d) | 99 | 129 | 165 | 212 | 162 |
Notes:
(a) | The net investment loss per share data and the redemption fee data were determined using average shares outstanding during the period. |
(b) | The ratios in this row reflect the impact, if any, of expense offset arrangements and expense reimbursement from the advisor. |
(c) | Annualized. |
(d) | Not annualized. |
(e) | Amount represents less than $.01 per share. |
51
Per share income and capital for a share outstanding throughout each period is as follows:
China Opportunities Fund | ||||||||||||||||||||||||
Six Months Ended June 30, 2013 (unaudited) | Years Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
Net asset value at beginning of period | $ | 11.12 | $ | 8.70 | $ | 16.63 | $ | 17.27 | $ | 7.51 | $ | 29.06 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment income (loss) (a) | .02 | (.02 | ) | (.11 | ) | (.14 | ) | (.11 | ) | (.20 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments and translation of assets and liabilities denominated in foreign currencies | 1.95 | 2.44 | (6.36 | ) | 3.06 | 9.96 | (18.64 | ) | ||||||||||||||||
Total from investment operations | 1.97 | 2.42 | (6.47 | ) | 2.92 | 9.85 | (18.84 | ) | ||||||||||||||||
Redemption Fees (a) | .01 | | (e) | .01 | .02 | .03 | .06 | |||||||||||||||||
Less dividends and distributions:
|
||||||||||||||||||||||||
Distribution from net realized gains on investments | | | (1.47 | ) | (3.47 | ) | | (2.77 | ) | |||||||||||||||
Dividends from net investment income | | | | (.11 | ) | (.12 | ) | | ||||||||||||||||
Net asset value at end of period | $ | 13.10 | $ | 11.12 | $ | 8.70 | $ | 16.63 | $ | 17.27 | $ | 7.51 | ||||||||||||
Total Return (%) | 17.81 | (d) | 27.82 | (38.72 | ) | 17.43 | 131.54 | (64.34 | ) | |||||||||||||||
Ratio/Supplemental Data
|
||||||||||||||||||||||||
Net Assets at end of period (in thousands) | $ | 130,632 | $ | 119,940 | $ | 119,819 | $ | 292,934 | $ | 371,709 | $ | 118,449 | ||||||||||||
Ratio of gross expenses to average net assets (%) | 2.12 | (c) | 2.15 | 2.08 | 1.97 | 2.07 | 2.00 | |||||||||||||||||
Ratio of net expenses to average net assets (%) (b) | 2.12 | (c) | 2.15 | 2.08 | 1.97 | 2.07 | 2.00 | |||||||||||||||||
Ratio of net investment income (loss) to average net assets (%) | .40 | (c) | (.16 | ) | (.76 | ) | (.80 | ) | (.89 | ) | (1.03 | ) | ||||||||||||
Portfolio turnover rate (%) | 65 | (d) | 115 | 107 | 104 | 101 | 70 |
Notes:
(a) | The net investment loss per share data and the redemption fee data were determined using average shares outstanding during the period. |
(b) | The ratios in this row reflect the impact, if any, of expense offset arrangements. |
(c) | Annualized. |
(d) | Not annualized. |
(e) | Amount represents less than $.01 per share. |
52
Per share income and capital for a share outstanding throughout each period is as follows:
International Opportunities Fund | ||||||||||||||||||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Years Ended December 31, |
|||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
Net asset value at beginning of period | $ | 12.74 | $ | 9.74 | $ | 11.61 | $ | 8.97 | $ | 5.57 | $ | 14.10 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment income (loss) (a) | .08 | .10 | .01 | (.08 | ) | (.07 | ) | (.05 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and translation of assets and liabilities denominated in foreign currencies | 2.57 | 3.11 | (1.70 | ) | 2.80 | 3.47 | (8.49 | ) | ||||||||||||||||
Total from investment operations | 2.65 | 3.21 | (1.69 | ) | 2.72 | 3.40 | (8.54 | ) | ||||||||||||||||
Redemption Fees (a) | .01 | | (e) | | (e) | | (e) | | (e) | .01 | ||||||||||||||
Less dividends:
|
||||||||||||||||||||||||
Dividends from investment income | | (.21 | ) | (.18 | ) | (.08 | ) | | | |||||||||||||||
Net asset value at end of period | $ | 15.40 | $ | 12.74 | $ | 9.74 | $ | 11.61 | $ | 8.97 | $ | 5.57 | ||||||||||||
Total Return (%) | 20.88 | (d) | 32.96 | (14.50 | ) | 30.37 | 61.04 | (60.50 | ) | |||||||||||||||
Ratio/Supplemental Data
|
||||||||||||||||||||||||
Net Assets at end of period (in thousands) | $ | 49,075 | $ | 20,751 | $ | 15,230 | $ | 21,755 | $ | 18,311 | $ | 13,961 | ||||||||||||
Ratio of gross expenses to average net assets (%) | 2.45 | (c) | 2.86 | 2.65 | 2.66 | 3.14 | 2.24 | |||||||||||||||||
Ratio of net expenses to average net assets (%) (b) | 1.60 | (c) | 1.60 | 1.89 | 2.49 | 2.49 | 2.23 | |||||||||||||||||
Ratio of net investment gain (loss) to average net assets (%) | 1.18 | (c) | .86 | .12 | (.86 | ) | (1.01 | ) | (.40 | ) | ||||||||||||||
Portfolio turnover rate (%) | 94 | (d) | 280 | 257 | 160 | 280 | 221 |
Notes:
(a) | The net investment loss per share data and the redemption fee data were determined using average shares outstanding during the period. |
(b) | The ratios in this row reflect the impact, if any, of expense offset arrangements and expense reimbursement from the advisor. |
(c) | Annualized. |
(d) | Not annualized. |
(e) | Amount represents less than $.01 per share. |
53
Per share income and capital for a share outstanding throughout each period is as follows:
Asia Opportunities Fund | ||||||||||||||||||||||||
Six Months
Ended June 30, 2013 (unaudited) |
Years Ended December 31, | Period Ended December 31, 2008 (a) | ||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||
Net asset value at beginning of period | $ | 8.87 | $ | 7.57 | $ | 9.05 | $ | 7.99 | $ | 4.30 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment loss (b) | (.05 | ) | (.06 | ) | (.09 | ) | (.10 | ) | (.07 | ) | (.07 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments and translation of assets and liabilities denominated in foreign currencies | .13 | 1.36 | (1.39 | ) | 1.16 | 3.75 | (5.65 | ) | ||||||||||||||||
Total from investment operations | .08 | 1.30 | (1.48 | ) | 1.06 | 3.68 | (5.72 | ) | ||||||||||||||||
Redemption Fees (b) | | (f) | | (f) | | (f) | | (f) | .01 | .02 | ||||||||||||||
Net asset value at end of period | $ | 8.95 | $ | 8.87 | $ | 7.57 | $ | 9.05 | $ | 7.99 | $ | 4.30 | ||||||||||||
Total Return (%) | .90 | (e) | 17.17 | (16.35 | ) | 13.27 | 85.81 | (57.00 | ) | |||||||||||||||
Ratio/Supplemental Data
|
||||||||||||||||||||||||
Net Assets at end of period (in thousands) | $ | 5,383 | $ | 6,057 | $ | 6,430 | $ | 9,088 | $ | 8,605 | $ | 3,889 | ||||||||||||
Ratio of gross expenses to average net assets (%) | 5.50 | (d) | 4.64 | 4.17 | 3.42 | 4.31 | 3.85 | |||||||||||||||||
Ratio of net expenses to average net assets (%) (c) | 2.49 | (d) | 2.49 | 2.49 | 2.49 | 2.49 | 2.49 | |||||||||||||||||
Ratio of net investment loss to average net assets (%) | (1.10 | ) (d) | (.71 | ) | (1.03 | ) | (1.28 | ) | (1.15 | ) | (.95 | ) | ||||||||||||
Portfolio turnover rate (%) | 130 | (e) | 169 | 188 | 125 | 176 | 165 |
Notes:
(a) | For the period from February 1, 2008 (commencement of operations) through December 31, 2008 |
(b) | The net investment loss per share data and the redemption fee data were determined using average shares outstanding during the period. |
(c) | The ratios in this row reflect the impact, if any, of expense offset arrangements and expense reimbursement from the advisor. |
(d) | Annualized. |
(e) | Not annualized. |
(f) | Amount represents less than $.01 per share. |
54
The Oberweis Funds has delegated authority to vote proxies related to the Funds (Emerging Growth Fund, Micro-Cap Fund, Small-Cap Opportunities Fund, China Opportunities Fund, International Opportunities Fund and Asia Opportunities Fund) Portfolio securities to the Funds investment adviser, Oberweis Asset Management, Inc. (OAM). A description of the policies and procedures that OAM uses in fulfilling this responsibility is available, without charge upon request, by calling 1-800-323-6166. It also appears on www.oberweisfunds.com and in the Funds Statement of Additional Information, which can be found on the Securities and Exchange Commissions (SEC) website at http://www.sec.gov. Information on how the Funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-323-6166, and (2) on the SECs website at http://www.sec.gov.
The Funds file their complete schedule of portfolio investments with the SEC for the first and third quarter of each fiscal year (March 31 and September 30) on Form NQ. The Funds Forms NQ are available, without charge, on the SECs website at http://www.sec.gov and may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
As a shareholder of The Oberweis Funds, you may incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees; distribution (and/or service) 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in The Oberweis Funds 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 investment at the beginning of the period and held for the entire period.
The first line for each Fund in the table below provides information about actual account values and actual expenses. You may use the information below; 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=8.6), then multiply the result by the number in the table under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period.
The second line for each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on each Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds 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 this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
55
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 redemption fees. Therefore, the second line for each Fund in the table is useful in comparing 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 would have been higher.
Beginning
Account Value 1/1/13 |
Ending
Account Value 6/30/13 |
Expense Paid
During Period* 1/1/13 6/30/13 |
Expense Ratio
During Period 1/1/13 6/30/13 |
|||||||||||||
Micro-Cap Fund
|
||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,222.00 | $ | 11.02 | 2.00 | % | ||||||||
Hypothetical (5% return
before expenses) |
$ | 1,000.00 | $ | 1,014.88 | $ | 9.99 | 2.00 | % | ||||||||
Emerging Growth Fund
|
||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,202.70 | $ | 8.57 | 1.57 | % | ||||||||
Hypothetical (5% return
before expenses) |
$ | 1,000.00 | $ | 1,017.01 | $ | 7.85 | 1.57 | % | ||||||||
Small-Cap Opportunities Fund
|
||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,144.90 | $ | 10.64 | 2.00 | % | ||||||||
Hypothetical (5% return
before expenses) |
$ | 1,000.00 | $ | 1,014.88 | $ | 9.99 | 2.00 | % | ||||||||
China Opportunities Fund
|
||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,178.10 | $ | 11.45 | 2.12 | % | ||||||||
Hypothetical (5% return
before expenses) |
$ | 1,000.00 | $ | 1,014.28 | $ | 10.59 | 2.12 | % | ||||||||
International Opportunities Fund
|
||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,208.80 | $ | 8.76 | 1.60 | % | ||||||||
Hypothetical (5% return
before expenses) |
$ | 1,000.00 | $ | 1,016.86 | $ | 8.00 | 1.60 | % | ||||||||
Asia Opportunities Fund
|
||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,009.00 | $ | 12.40 | 2.49 | % | ||||||||
Hypothetical (5% return
before expenses) |
$ | 1,000.00 | $ | 1,012.45 | $ | 12.42 | 2.49 | % |
* | Expenses are equal to the average account value times the Funds annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. |
56
Trustees and Officers
James D. Oberweis
Trustee
Gary D. McDaniel
Trustee
James W. Oberweis
President
David I. Covas
Vice President
Kenneth S. Farsalas
Vice President
Katherine Smith Dedrick
Trustee
James G. Schmidt
Trustee
Patrick B. Joyce
Executive Vice President
Treasurer
Eric V. Hannemann
Secretary
Manager and Investment Advisor
Oberweis Asset Management, Inc.
3333 Warrenville Road, Suite 500, Lisle, IL 60532
1-800-323-6166
www.oberweisfunds.com
Distributor
Oberweis Securities, Inc.
3333 Warrenville Road, Suite 500, Lisle, IL 60532
1-630-577-2300
www.oberweisfunds.com
Custodian
UMB Bank, n.a.
928 Grand Blvd., Kansas City, MO 64106
Transfer Agent
UMB Fund Services, Inc.
P.O. Box 711 Milwaukee, WI 53201-0711
1-800-245-7311
Counsel
Vedder Price P.C.
222 North LaSalle Street, Chicago, IL 60601
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
One North Wacker Drive, Chicago, IL 60606
The Oberweis Funds | ||
Micro-Cap Fund
Emerging Growth Fund Small-Cap Opportunities Fund China Opportunities Fund International Opportunities Fund Asia Opportunities Fund |
1-800-245-7311
www.oberweisfunds.com
Not required for the Semi-Annual Report.
Not required for the Semi-Annual Report.
Not required for the Semi-Annual Report.
Not Applicable to the registrant.
See Schedule of Investments in Item 1.
Not Applicable to the registrant.
Not Applicable to the registrant.
Not Applicable to the registrant.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrants board of trustees since registrant last disclosed such procedures in its proxy statement dated April 16, 2004.
(a) The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act) (17CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There has been no change to the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) 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 registrants internal control over financial reporting.
(a) (1) | Not required for the Semi-Annual Report. |
(a) (2) | Certifications pursuant to Rule 30a-2 under the Investment Company Act of 1940 (17CFR 270.30a-2) in the exact form set forth below: are attached hereto. |
(a) (3) | Any written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not Applicable to the registrant. |
(b) | The certifications required by Rule 30a-2(b) of the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
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) | The Oberweis Funds |
By (Signature and Title*) |
/s/ James W. Oberweis
James W. Oberweis President, The Oberweis Funds |
Date 08/26/2013
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 (Signature and Title*) |
/s/ James W. Oberweis
James W. Oberweis President, The Oberweis Funds |
Date 08/26/2013
By (Signature and Title*) |
/s/ Patrick B. Joyce
Patrick B. Joyce Executive Vice President and Treasurer, The Oberweis Funds |
Date 08/26/2013
/*/ Print the name and title of each signing officer under his or her signature.
1 Year Connexus (CE) Chart |
1 Month Connexus (CE) Chart |
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