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Form N-CSR/A Miller Investment Trust For: Oct 31

October 6, 2022 5:05 PM EDT

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united states
securities and exchange commission
washington, d.c. 20549

form n-csr

certified shareholder report of registered management
investment companies

Investment Company Act file number 811-22131

 

Miller Investment Trust

(Exact name of registrant as specified in charter)

 

20 William Street Wellesley, MA       02481       

(Address of principal executive offices) (Zip code)

 

The Corporation Trust Company

1209 Orange Street Wilmington, DE 19801

(Name and address of agent for service)

 

Registrant's telephone number, including area code: 781-416-4000

 

Date of fiscal year end: 10/31

 

Date of reporting period:10/31/21

 

Refile to update Items 4 and 11 (b).

 

Item 1. Reports to Stockholders.

 

 
 
(THE MILLER FUND LOGO)
 
 
 
Miller Convertible Bond Fund
Miller Convertible Plus Fund
Miller Intermediate Bond Fund
 
 
 
 
 
Annual Report
 
October 31, 2021
 
 
 
877- 441- 4434
www.MillerFamilyofFunds.com
 
 
 
 
 
Investment Advisor
Wellesley Asset Management, Inc.
The Wellesley Office Park
20 William Street, Suite 310
Wellesley, MA 02481
781-416-4000
 
 
 
 
 
 
This report and the financial statements contained herein are submitted for the general information of shareholders and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale or solicitation of an offer to buy shares of Miller Funds. Such offering is made only by prospectus, which includes details as to offering price and other material information.
 
Distributed by Northern Lights Distributors, LLC. Member FINRA
 

 

 

Dear Fellow Shareholder,

 

This annual report of the Miller family of funds provides an overview of mutual fund performance for the 12-month period ending October 31, 2021 (“the Reporting Period”) and provides insights into the convertible market, factors that influenced performance over the last year and what investors may expect going forward.

 

During the reporting period, all share classes of the mutual funds in the Miller family of funds outperformed bonds but underperformed stocks. Similarly, since inception all share classes have outperformed the Bloomberg Barclays US Aggregate Index, while all share classes have underperformed the S&P 500 Total Return Index. Investors must keep in mind that unlike many convertible managers who run equity-like convertible bond strategies, the Miller convertible funds strive to be a more conservative fixed income strategy. As such, historically in equity bull markets we may lag peers, but outperform in equity bear markets. The funds’ performance for the one year ending October 31, 2021 and since inception is as follows:

 

  One Year Ended Annualized Since
Miller Convertible Bond Fund October 31, 2021 Inception
I shares (MCIFX) 11.04% 6.91% (12/27/07)
A shares (MCFAX.LW) 10.54% 6.35% (12/27/07)
C shares (MCFCX) 9.99% 6.59% (12/01/09)
     
    Annualized Since
Miller Convertible Plus Fund   Inception
I shares (MCPIX) 8.05% 8.15% (12/31/14)
     
    Annualized Since
Miller Intermediate Bond Fund   Inception
I shares (MIFIX) 10.83% 5.72% (12/31/14)

 

The funds’ total net assets under management for the period ended 10/31/2021 were as follows:

 

Miller Convertible Bond Fund $973,805,773
   
Miller Convertible Plus Fund $119,886,449
   
Miller Intermediate Bond Fund $127,660,494

1

 

Convertible Market Review

 

For the year ending October 31, 2021, the Bloomberg Barclays US Aggregate Bond Index was down 0.48% while the S&P 500 Total Return Index was up 42.91%. Convertible performance was buoyed by the strength of underlying equities and tighter credit spreads. Higher interest rates and lower volatility offset gains attributable to the previously mentioned factors. Note the following definitions:

 

The Bloomberg/Barclays US Aggregate Bond Index represents most investment grade bonds traded in the United States

 

The S&P 500 Total Return Index is a cap-weighted index of 500 common stocks and is regarded as a leading proxy for the US stock market

 

A credit spread is the difference in yield between a U.S. Treasury bond and a debt security with the same maturity but of lesser quality

 

Please note that Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses, or sales charges.

 

The fiscal year started with a bang, as equities responded positively to early November election results. From there it was off to the races with strong equity markets, characterized by low volatility and very small drawdowns. Interest rates experienced a bumpy ride in the beginning of this year as strong economic data and concerns over inflation caused the 10-year Treasury bond yield to more than double to 1.60%. Equity markets continued to march higher until the month of September. Concerns about the sizes of fiscal stimulus packages and worries about inflation caused equity markets to fall almost 5% during the month. It was also during this time the stock market had its first drawdown greater than 5% during our fiscal year. In October it became clear there would be some paring back of the fiscal stimulus packages. Equity markets responded by recuperating September’s losses and ending the fiscal year at all-time highs.

 

Despite some treasury yield turbulence, the investing environment remained supportive for U.S. equity markets. As the number of COVID-19 cases dropped, the economy began to reopen. With economic numbers improving, corporate earnings continued to beat analyst’s estimates. The CBOE Volatility Index, or VIX, a measure of short-term equity volatility, started the year above 35 and ended at 16, reflecting the calm investing environment. Corporate credit spreads continued to tighten throughout the year despite the rise in government interest rates. Investment grade credit spreads improved by 30 basis points while high yield spreads saw a staggering improvement of 200 basis points. This led to significant outperformance by high yield convertibles (up 72%) when compared to investment grade convertibles (up 17%). The combination of higher equity prices and higher rates provided the ideal backdrop for convertible issuance. Over the fiscal year, more money was raised in the convertible market than in any year going back to 2008.

2

 

Miller Convertible Bond Fund

 

Over the last year, the Miller Convertible Bond Fund outperformed the Bloomberg Barclays US Aggregate Bond Index. The combination of higher rates and higher stock prices led to the fund’s outperformance compared to the Bloomberg Barclays US Aggregate Bond Index.

 

The fund’s position in Innovated Industrial Properties, Inc. (1.65% weight) produced a gain of 122%. On the negative side, the fund’s position in Newmont Mining (1.37% weight) resulted in 16.1% loss.

 

The fund is well diversified with 79 positions. Ford Motor Company is the largest holding representing 3.17% of the fund’s assets. During the reporting period, the market moved higher in an orderly fashion. As a result, the Fund’s largest monthly drawdown, or peak to trough decline, was only 1.66%.

 

Miller Convertible Plus Fund

 

The Miller Convertible Plus Fund also outperformed the Bloomberg Barclays US Aggregate Bond Index and underperformed the S&P 500 Total Return Index. Similar to the Miller Convertible Fund, higher interest rates and higher stock prices led to outperformance versus the Bloomberg Barclays US Aggregate Bond Index.

 

The Miller Convertible Plus Fund’s top performing position was Smart Global Holdings Inc. (3.74% weight) which returned 66%. The Fund’s worst position was in a NASDAQ put option which was used as a portfolio hedge. The NASDAQ 100 Stock Index NDX US 12/17/21 P13000 (0.10% weight) resulted in a 96% loss.

 

The fund remains well diversified with 49 positions, the largest which accounts for 4.96% of assets. The Miller Convertible Plus Fund is often the most volatile in the Miller family of funds because of leverage. As a result, the largest monthly drawdown over the fiscal year in the fund was 5.87%.

 

Miller Intermediate Bond Fund

 

The Miller Intermediate Bond Fund outperformed the Bloomberg Barclays US Aggregate Bond. In a period of rising interest rates, the fund’s shorter duration led to outperformance relative to the Bloomberg Barclays US Aggregate Bond Index.

 

The Intermediate Bond Fund’s best performing position was Smart Global Holdings Inc. (1.17% weight) which gained 66%. The Fund’s worst performing position was Trip Advisor Inc. (2.39% weight) which lost 9.83%.

 

The Intermediate Bond Fund has 54 positions. Ford Motor Company is the largest position representing 2.98% of the fund’s assets. The fund’s largest drawdown for the reporting period was 1.15%.

3

 

Convertible Bond Strategy Review

 

We remain committed to the same strategy we have utilized since Wellesley Asset Management was founded in 1991. It is important to note that we do not change our investment strategy regardless of the current investment climate. Our investment focus is to buy convertible bonds and notes (no convertible preferreds, mandatory preferreds, or other convertible structures) which typically offer the return of the majority of principal within seven years of issuance when purchased at or near par value. Before making an investment, we perform a thorough analysis of a company’s balance sheet and income statement. We seek to invest in profitable companies and avoid companies with large debt loads. While we usually invest with the idea of holding bonds until the next liquidity date (maturity, put or call), we consider selling or reducing our exposure if one of the following scenarios occur:

 

An issuer’s credit quality deteriorates

 

The bond loses its favorable risk/reward characteristics due to price appreciation

 

We perceive an opportunity to increase portfolio diversification

 

We believe more attractive investments are available.

 

One of our key risk management practices involves careful limits on prices we pay to avoid purchasing convertibles trading at prices substantially above par, or which have material negative yields to the next liquidity date. Such investment discipline seeks to reduce exposure to many equity-sensitive convertibles. In the first half of 2021 we reduced equity risk in our portfolios by selling appreciated securities and redeploying those assets into bonds trading closer to their par value. As a result, distributions from our funds were larger than normal in the first half of the year. Profit taking is a normal part of our investment process as we seek to reduce equity risk in our portfolios. While our performance tends to lag broader equity indices in rising markets, we seek to preserve capital in falling stock markets. Our holdings span the convertible market, from investment-grade to small-cap, with a broad distribution among varied industries. Many of our rated convertible bonds are investment grade and a large percentage of the bonds are not rated.

 

New Issuance

 

Primary issuance continued on a record setting pace over the last year. Higher equity prices and interest rates created an ideal environment for companies to issue convertibles. About $91 billion of new paper came to market over the last year which was more than any full year since 2008. Below is a sampling of some of the new issues that met the strategy’s investing criteria and found their way into various portfolios (weightings as of October 31, 2021):

 

Greenbrier Companies Inc. (2.99% weight), a manufacturer of railroad freight car equipment

 

Halozyme Therapeutics, Inc. (2.88% weight), a developer of drug delivery systems for biologics

 

Ford Motor Company (3.33% weight), a manufacturer of automobiles

4

 

Summary

 

Over the last year, equity investors have been beneficiaries of strong returns with little volatility. Even more unusual is that investors have not had to endure any steep drawdowns in the process. The bulls have plenty to cheer about. Coming out of the Covid-19 crisis, the earnings growth rates of many corporations have been impressive. Combined with a dovish Federal Reserve and “Goldilocks” economic numbers have given the bulls plenty to be excited about going into 2022.

 

The bears are focused on valuations as P/E’s continue to move higher. In addition, with the passage of the infrastructure package and an upcoming vote on the Build Back Better Act, the bears are concerned that substantial fiscal stimulus together with endless easy money from Central Banks could ignite persistent inflation.

 

Fortunately, we invest in convertible bonds with asymmetric return profiles and issued by companies with healthy balance sheets which allow investors to stay invested during periods of high valuations or market downturns.

 

For more detailed and timely information on our funds and Wellesley Asset Management, please visit our website at www.wellesleyassetmanagement.com where you can access quarterly commentaries and fund fact sheets. As always, we thank you for your continued trust and confidence in our management. We look forward to helping you achieve your future goals.

 

Sincerely,

 

Greg Miller, Portfolio Manager
Michael Miller, Portfolio Manager

 

2444-NLD-11192021

5

 

Miller Convertible Bond Fund Class A
GROWTH OF A $10,000 INVESTMENT (Unaudited)
Since Inception through October 31, 2021

 

(LINE GRAPH)

 

Miller Convertible Bond Fund Class I
GROWTH OF A $1,000,000 INVESTMENT (Unaudited)
Since Inception through October 31, 2021

 

(LINE GRAPH)

6

 

Total Returns as of October 31, 2021

        Annualized  
        Since Inception * Since Inception **
  One Year Five Years Ten Years (Class A & I) (Class C)
Miller Convertible Bond Fund:          
Class A, without sales charge 10.54% 6.98% 7.23% 6.35%
Class A, with sales charge of 3.75% 4.19% 5.73% 6.59% 5.89%
Class I 11.04% 7.50% 7.76% 6.91%
Class C 9.99% 6.42% 6.68% 6.59%
Bloomberg U.S. Aggregate Bond Index (0.48)% 3.10% 3.00% 3.99% 3.51%
ICE BofA All Yield Alternatives US Convertibles Index 15.97% 8.74% 6.56% 6.01% 6.74%

 

*Class A and Class I shares commenced operations on December 27, 2007.

 

**Class C shares commenced operations on December 1, 2009.

 

The Bloomberg U.S. Aggregate Bond Index is an unmanaged index of prices of U.S. dollar-denominated, fixed-rate, taxable, investment grade fixed-income securities with remaining maturities of one year and longer. The Index includes Treasury, government, corporate, mortgage-backed, commercial mortgage-backed and asset-backed securities.

 

The ICE BofA All Yield Alternatives US Convertibles Index tracks the performance of U.S. dollar denominated convertible debt.

 

Past performance is not predictive of future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than the original cost. Total return is calculated assuming reinvestment of all dividends and distributions and the payment of the maximum 3.75% sales charge. Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class’ distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. Total returns would have been lower had the adviser not waived a portion of its fees and reimbursed a portion of the Fund’s expenses. The Fund’s total gross annual operating expenses, per its prospectus dated March 1, 2021, as supplemented on July 8, 2021, including the indirect expenses of underlying funds, are 1.50%, 1.00%, and 2.00% for Class A shares, Class I shares, and Class C shares, respectively. For performance information current to the most recent month-end, please call 877-441-4434.

7

 

Miller Convertible Plus Fund Class I
GROWTH OF A $1,000,000 INVESTMENT (Unaudited)
Since Inception through October 31, 2021

 

(LINE GRAPH)

 

Total Returns as of October 31, 2021

    Annualized
  One Year Five Years Since Inception*
Miller Convertible Plus Fund:      
Class I 8.05% 7.99% 8.15%
Bloomberg U.S. Aggregate Bond Index (0.48)% 3.10% 3.07%
ICE BofA All Yield Alternatives US Convertibles Index 15.97% 8.74% 6.19%

 

*Class I shares commenced operations on December 31, 2014.

 

The Bloomberg U.S. Aggregate Bond Index is an unmanaged index of prices of U.S. dollar-denominated, fixed-rate, taxable, investment grade fixed-income securities with remaining maturities of one year and longer. The Index includes Treasury, government, corporate, mortgage-backed, commercial mortgage-backed and asset-backed securities.

 

The ICE BofA All Yield Alternatives US Convertibles Index tracks the performance of U.S. dollar denominated convertible debt.

 

Past performance is not predictive of future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than the original cost. Total return is calculated assuming reinvestment of all dividends and distributions. Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class’ distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. Total returns would have been lower had the adviser not waived a portion of its fees and reimbursed a portion of the Fund’s expenses. The Fund’s total gross annual operating expenses, per its prospectus dated March 1, 2021, including the indirect expenses of underlying funds, is 2.97% for Class I shares. For performance information current to the most recent month-end, please call 877-441-4434.

8

 

Miller Intermediate Bond Fund Class I
GROWTH OF A $1,000,000 INVESTMENT (Unaudited)
Since Inception through October 31, 2021

 

(LINE GRAPH)

 

Total Returns as of October 31, 2021

    Annualized
  One Year Five Years Since Inception*
Miller Intermediate Bond Fund:      
Class I 10.83% 5.68% 5.72%
Bloomberg U.S. Aggregate Bond Index (0.48)% 3.10% 3.07%

 

*Class I shares commenced operations on December 31, 2014.

 

The Bloomberg U.S. Aggregate Bond Index is an unmanaged index of prices of U.S. dollar-denominated, fixed-rate, taxable, investment grade fixed-income securities with remaining maturities of one year and longer. The Index includes Treasury, government, corporate, mortgage-backed, commercial mortgage-backed and asset-backed securities.

 

Past performance is not predictive of future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than the original cost. Total return is calculated assuming reinvestment of all dividends and distributions and . Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class’ distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. Total returns would have been lower had the adviser not waived a portion of its fees and reimbursed a portion of the Fund’s expenses. The Fund’s total gross annual operating expenses, per its prospectus dated March 1, 2021, including indirect expenses of underlying funds, is 1.06% for Class I shares. For performance information current to the most recent month-end, please call 877-441-4434.

9

 

MILLER CONVERTIBLE BOND FUND
SCHEDULE OF INVESTMENTS
October 31, 2021

 

Shares            Fair Value 
     COMMON STOCKS — 0.1%           
     ASSET MANAGEMENT - 0.1%           
 88,200   Acropolis Infrastructure Acquisition Corporation(a)        $879,354 
 44,000   TortoiseEcofin Acquisition Corporation III(a)         437,800 
               1,317,154 
                 
     TOTAL COMMON STOCKS (Cost $1,322,000)         1,317,154 
                 
Principal      Coupon Rate        
Amount ($)      (%)  Maturity     
     CONVERTIBLE BONDS — 96.6%           
     AEROSPACE & DEFENSE — 0.2%           
 2,000,000   Kaman Corporation  3.2500  05/01/24   2,032,600 
                 
     ASSET MANAGEMENT — 0.0%(b)           
 100,000   Ares Capital Corporation  4.6250  03/01/24   114,130 
 100,000   New Mountain Finance Corporation  5.7500  08/15/23   107,505 
               221,635 
                 
     AUTOMOTIVE — 3.2%           
 26,000,000   Ford Motor Company(c),(d)    03/15/26   30,885,059 
                 
     BANKING — 0.8%           
 8,000,000   Hope Bancorp, Inc.  2.0000  05/15/38   7,835,044 
                 
     BASIC INDUSTRY — 0.2%           
 2,000,000   Dow, Inc. - Bank of America Finance LLC Synthetic(f)  2.6410  06/18/24   2,128,600 
                 
     BEVERAGES — 0.0%(b)           
 100,000   PepsiCo, Inc. - Citigroup Global Markets Holdings, Inc. Synthetic(f)  1.4930  12/30/27   95,660 
                 
     BIOTECH & PHARMA — 18.2%           
 17,400,000   AbbVie, Inc. - Goldman Sachs Finance Corp. Synthetic(f)  1.4700  02/03/28   16,352,520 
 10,000,000   AbbVie, Inc. - Goldman Sachs Finance Corp. Synthetic(f)  1.9900  05/01/28   9,703,000 
 16,000,000   BioMarin Pharmaceutical, Inc.  1.2500  05/15/27   16,179,625 
 17,000,000   Bristol-Myers Squibb Co. - Wells Fargo Finance, LLC. Synthetic(f)  2.3100  11/01/24   17,588,200 
 30,000,000   Halozyme Therapeutics, Inc.(c)  0.2500  03/01/27   26,688,799 
 25,000,000   Jazz Investments I Ltd.  1.5000  08/15/24   25,468,750 

 

The accompanying notes are an integral part of these financial statements. 

10

 

MILLER CONVERTIBLE BOND FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal      Coupon Rate       
Amount ($)      (%)  Maturity  Fair Value 
     CONVERTIBLE BONDS — 96.6% (Continued)           
     BIOTECH & PHARMA — 18.2% (Continued)           
 18,000,000   Johnson & Johnson - Citigroup Global Markets Holdings, Inc. Synthetic(f)  1.7920  06/30/27  $18,414,000 
 100,000   Johnson & Johnson - Citigroup Global Markets Holdings, Inc. Synthetic(f)  1.5470  10/25/27   96,690 
 100,000   Ligand Pharmaceuticals, Inc.  0.7500  05/15/23   101,187 
 7,300,000   Merck & Co., Inc. - Goldman Sachs Financial Corp. Synthetic(f)  1.5700  02/24/28   7,393,440 
 13,886,000   Merck & Co., Inc. UBS Group AG Synthetic(f)  1.7721  05/25/28   14,469,212 
 100,000   Pacira BioSciences, Inc.  2.3750  04/01/22   103,012 
 22,000,000   Pacira BioSciences, Inc.  0.7500  08/01/25   23,147,983 
 1,000,000   Supernus Pharmaceuticals, Inc.  0.6250  04/01/23   994,375 
               176,700,793 
     CABLE & SATELLITE — 2.7%           
 100,000   Charter Communications, Inc. - Bank of America Finance LLC Synthetic(f)  1.7700  09/01/22   117,900 
 26,000,000   Liberty Broadband Corp. Synthetic(c),(f)  1.2500  09/30/50   26,005,382 
               26,123,282 
                 
     CONSUMER SERVICES — 2.3%           
 22,000,000   Stride, Inc.  1.1250  09/01/27   22,088,000 
                 
     DIVERSIFIED INDUSTRIALS — 1.0%           
 100,000   3M Co. - Citigroup Global Markets Holdings, Inc. Synthetic(f)  1.4930  12/30/27   93,510 
 10,000,000   3M Co. - Citigroup Global Markets Holdings, Inc. Synthetic(f)  2.1030  04/20/28   9,348,000 
               9,441,510 
     ELECTRICAL EQUIPMENT — 3.7%           
 9,000,000   OSI Systems, Inc.  1.2500  09/01/22   9,331,927 
 18,000,000   SMART Global Holdings, Inc.  2.2500  02/15/26   26,865,000 
               36,196,927 
                 
     ENTERTAINMENT CONTENT — 0.2%           
 2,000,000   IMAX Corporation(c)  0.5000  04/01/26   1,984,481 
                 
     FOOD — 1.2%           
 12,000,000   The Kraft Heinz Co. - Citigroup Global Markets Holdings, Inc. Synthetic(f)  1.7920  06/30/27   11,834,400 
                 
     HEALTH CARE FACILITIES & SERVICES — 2.4%           
 19,000,000   PetIQ, Inc.  4.0000  06/01/26   22,974,800 

 

The accompanying notes are an integral part of these financial statements. 

11

 

MILLER CONVERTIBLE BOND FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal      Coupon Rate       
Amount ($)      (%)  Maturity  Fair Value 
     CONVERTIBLE BONDS — 96.6% (Continued)           
     INSTITUTIONAL FINANCIAL SERVICES — 0.0%(b)           
 100,000   Voya Financial, Inc. - Bank of America Finance LLC Synthetic(f)  3.1425  05/01/23  $112,800 
                 
     INSURANCE — 2.3%           
 22,500,000   Berkshire Hathaway, Inc. - Barclays Bank PLC Synthetic(f)  1.8652  04/14/28   22,000,500 
                 
     INTERNET MEDIA & SERVICES—  6.0%           
 14,050,000   Amazon.com, Inc.- JPMorgan Chase Financial Co., LLC Synthetic(f)  3.5900  04/21/23   21,615,925 
 7,000,000   Google, Inc. - Bank of America Finance LLC Synthetic(f)  3.6429  09/28/23   13,649,300 
 21,000,000   TripAdvisor, Inc.(c)  0.2500  04/01/26   18,874,906 
 5,000,000   Twitter, Inc.(c),(d)    03/15/26   4,607,287 
               58,747,418 
     LEISURE FACILITIES & SERVICES — 7.9%           
 22,000,000   Cheesecake Factory, Inc.  0.3750  06/15/26   20,050,523 
 15,000,000   Cracker Barrel Old Country Store, Inc.(c)  0.6250  06/15/26   14,725,609 
 22,000,000   DraftKings, Inc.(c),(d)    03/15/28   19,292,703 
 14,500,000   McDonald’s Corp. - Credit Suisse AG Synthetic(f)  1.9200  05/28/27   15,354,050 
 7,000,000   Vail Resorts, Inc.(c),(d)    01/01/26   7,740,229 
               77,163,114 
     LEISURE PRODUCTS — 5.4%           
 13,000,000   D.R. Horton, Inc. - Barclays Bank PLC Synthetic(f)  3.8900  09/26/23   22,072,700 
 16,360,000   LCI Industries(c)  1.1250  05/15/26   17,281,275 
 10,000,000   Winnebago Industries Inc  1.5000  04/01/25   12,857,848 
               52,211,823 
     MEDICAL EQUIPMENT & DEVICES — 3.6%           
 29,000,000   Haemonetics Corporation(c),(d)    03/01/26   25,464,164 
 10,000,000   NuVasive, Inc.  0.3750  03/15/25   9,475,000 
               34,939,164 
     METALS & MINING — 1.7%           
 17,000,000   Century Aluminum Company(c)  2.7500  05/01/28   16,920,262 
 100,000   Newmont Mining Corp. - Barclays Bank PLC Synthetic(f)  3.9200  10/30/23   145,850 
               17,066,112 
     OIL & GAS — 3.3%           
 27,000,000   Chevron Corporation - Bank of America Finance LLC Synthetic(f)  1.9500  10/27/28   27,099,900 

 

The accompanying notes are an integral part of these financial statements. 

12

 

MILLER CONVERTIBLE BOND FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal      Coupon Rate       
Amount ($)      (%)  Maturity  Fair Value 
     CONVERTIBLE BONDS — 96.6% (Continued)           
     OIL & GAS — 3.3% (Continued)           
 4,462,000   Exxon Mobil Corp. - Citigroup Global Markets Holdings, Inc. Synthetic(f)  1.5490  11/24/27  $4,920,247 
               32,020,147 
                 
     REAL ESTATE INVESTMENT TRUSTS — 1.6%           
 4,000,000   IIP Operating Partnership, L.P.(c)  3.7500  02/21/24   16,030,000 
                 
     RENEWABLE ENERGY — 1.4%           
 12,500,000   Enphase Energy, Inc.(c),(d)    03/01/26   13,589,158 
 100,000   Green Plains, Inc.  2.2500  03/15/27   142,000 
               13,731,158 
                 
     RETAIL - DISCRETIONARY — 0.1%           
 1,000,000   Guess?, Inc.  2.0000  04/15/24   1,110,000 
                 
     SEMICONDUCTORS — 2.5%           
 24,000,000   Vishay Intertechnology, Inc.  2.2500  06/15/25   24,434,400 
                 
     SOFTWARE — 3.2%           
 10,000,000   Akamai Technologies, Inc.  0.3750  09/01/27   11,018,750 
 7,000,000   Microsoft Corp. - Morgan Stanley Finance, LLC. Synthetic(f)  2.3773  10/25/24   12,572,350 
 7,000,000   Mitek Systems, Inc.(c)  0.7500  02/01/26   7,921,719 
               31,512,819 
     SPECIALTY FINANCE — 0.1%           
 100,000   MFA Financial, Inc.  6.2500  06/15/24   103,750 
 100,000   PennyMac Corporation(c)  5.5000  03/15/26   103,500 
 1,000,000   Redwood Trust, Inc.  5.6250  07/15/24   1,048,800 
               1,256,050 
     TECHNOLOGY HARDWARE — 2.6%           
 7,000,000   Apple, Inc. - JPMorgan Chase Financial Co., LLC Synthetic(f)  3.8700  10/16/23   16,326,800 
 8,000,000   InterDigital, Inc.  2.0000  06/01/24   8,665,000 
 100,000   Lumentum Holdings, Inc.  0.5000  12/15/26   109,250 
               25,101,050 
     TECHNOLOGY SERVICES — 6.9%           
 15,000,000   Euronet Worldwide, Inc.  0.7500  03/15/49   16,254,133 

 

The accompanying notes are an integral part of these financial statements. 

13

 

MILLER CONVERTIBLE BOND FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal      Coupon Rate       
Amount ($)      (%)  Maturity  Fair Value 
     CONVERTIBLE BONDS — 96.6% (Continued)           
     TECHNOLOGY SERVICES — 6.9% (Continued)           
 1,000,000   Insight Enterprises, Inc.  0.7500  02/15/25  $1,457,250 
 19,000,000   International Business Machines Corporation - Credit Suisse AG Synthetic(f)  1.8775  07/03/28   17,605,400 
 8,000,000   International Business Machines Corporation - JPMorgan Chase Financial Company, LLC Synthetic(f)  1.0200  06/29/28   7,631,200 
 23,000,000   Parsons Corporation  0.2500  08/15/25   23,441,032 
 100,000   Visa, Inc. - Barclays Bank PLC Synthetic(f)  1.2800  02/18/25   109,880 
               66,498,895 
     TRANSPORTATION & LOGISTICS — 6.2%           
 12,309,000   Air Transport Services Group, Inc.  1.1250  10/15/24   13,078,312 
 26,000,000   JetBlue Airways Corporation(c)  0.5000  04/01/26   25,095,625 
 24,000,000   Spirit Airlines, Inc.  1.0000  05/15/26   21,705,600 
               59,879,537 
     TRANSPORTATION EQUIPMENT — 5.7%           
 391,000   Greenbrier Companies, Inc.  2.8750  02/01/24   394,660 
 27,000,000   Greenbrier Companies, Inc.(c)  2.8750  04/15/28   28,164,927 
 25,000,000   Meritor, Inc.  3.2500  10/15/37   27,258,087 
               55,817,674 
                 
     WHOLESALE - CONSUMER STAPLES — 0.0%(b)           
 100,000   Chefs’ Warehouse, Inc.  1.8750  12/01/24   110,380 
                 
     TOTAL CONVERTIBLE BONDS (Cost $883,035,675)         940,285,832 
                 
                 
     U.S. GOVERNMENT & AGENCIES — 0.0%(b)           
     U.S. TREASURY OBLIGATIONS — 0.0%(b)           
 100,000   United States Treasury Note  0.6250  03/31/27   96,725 
     TOTAL U.S. GOVERNMENT & AGENCIES (Cost $99,282)           

 

The accompanying notes are an integral part of these financial statements. 

14

 

MILLER CONVERTIBLE BOND FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Shares      Fair Value 
     SHORT-TERM INVESTMENTS — 3.1%     
     MONEY MARKET FUND - 3.1%     
 30,409,467   BlackRock Liquidity Funds T-Fund, Institutional Class, 0.01%(e)  $30,409,467 
     TOTAL SHORT-TERM INVESTMENTS (Cost $30,409,467)     
           
     TOTAL INVESTMENTS - 99.8% (Cost $914,866,424)  $972,109,178 
     OTHER ASSETS IN EXCESS OF LIABILITIES- 0.2%   1,696,595 
     NET ASSETS - 100.0%  $973,805,773 

 

LLC- Limited Liability Company

 

LP- Limited Partnership

 

LTD- Limited Company

 

PLC- Public Limited Company

 

REIT- Real Estate Investment Trust

 

(a)Non-income producing security.

 

(b)Percentage rounds to less than 0.1%.

 

(c)Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers.

 

(d)Zero coupon bond.

 

(e)Rate disclosed is the seven-day effective yield as of October 31, 2021.

 

(f)Interest rate represents the comparable yield on the contingent payment debt instruments.

 

PORTFOLIO ANALYSIS
As of October 31, 2021
  % of Net 
Sector  Assets 
Health Care   24.1%
Consumer Discretionary   18.9%
Technology   18.8%
Industrial   16.8%
Communications   5.3%
Energy   4.7%
Financial   3.3%
Materials   2.0%
Real Estate   1.6%
Consumer Staples   1.2%
U.S. Treasury Obligations   0.0%
Short-Term Investments   3.1%
Other Assets in Excess of Liabilities   0.2%
    100.0%

 

The accompanying notes are an integral part of these financial statements. 

15

 

MILLER CONVERTIBLE PLUS FUND
SCHEDULE OF INVESTMENTS
October 31, 2021

 

Shares            Fair Value 
     COMMON STOCKS — 1.6%           
     AUTOMOTIVE - 1.6%           
 34,000   General Motors Company(a)        $1,850,620 
     TOTAL COMMON STOCKS (Cost $1,800,300)           
                 
Principal      Coupon Rate        
Amount ($)      (%)  Maturity     
     CONVERTIBLE BONDS — 142.2%           
     AEROSPACE & DEFENSE — 1.7%           
 2,000,000   Kaman Corporation  3.2500  05/01/24   2,032,600 
                 
     AUTOMOTIVE — 5.0%           
 5,000,000   Ford Motor Company(b),(c)    03/15/26   5,939,434 
                 
     BASIC INDUSTRY — 0.9%           
 1,000,000   Dow, Inc. - Bank of America Finance LLC Synthetic(e)  2.6410  06/18/24   1,064,300 
                 
     BIOTECH & PHARMA — 29.2%           
 5,000,000   AbbVie, Inc. - Goldman Sachs Finance Corp. Synthetic(e)  1.9900  05/01/28   4,851,500 
 4,300,000   BioMarin Pharmaceutical, Inc.  1.2500  05/15/27   4,348,274 
 4,500,000   Bristol-Myers Squibb Co. - Wells Fargo Finance, LLC. Synthetic(e)  2.3100  11/01/24   4,655,700 
 5,600,000   Halozyme Therapeutics, Inc.(b)  0.2500  03/01/27   4,981,909 
 4,100,000   Jazz Investments I Ltd.  1.5000  08/15/24   4,176,875 
 3,000,000   Johnson & Johnson - Citigroup Global Markets Holdings, Inc. Synthetic(e)  1.5470  10/25/27   2,900,700 
 4,700,000   Merck & Co., Inc. UBS Group AG Synthetic(e)  1.7721  05/25/28   4,897,400 
 4,000,000   Pacira BioSciences, Inc.  0.7500  08/01/25   4,208,724 
               35,021,082 
     CABLE & SATELLITE — 3.9%           
 4,700,000   Liberty Broadband Corp. Synthetic(b),(e)  1.2500  09/30/50   4,700,973 
                 
     CONSUMER SERVICES — 3.8%           
 4,500,000   Stride, Inc.  1.1250  09/01/27   4,518,000 
                 
     ELECTRICAL EQUIPMENT — 4.6%           
 1,000,000   OSI Systems, Inc.  1.2500  09/01/22   1,036,881 
 3,000,000   SMART Global Holdings, Inc.  2.2500  02/15/26   4,477,500 
               5,514,381 

 

The accompanying notes are an integral part of these financial statements. 

16

 

MILLER CONVERTIBLE PLUS FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal      Coupon Rate       
Amount ($)      (%)  Maturity  Fair Value 
     CONVERTIBLE BONDS — 142.2% (Continued)           
     ENTERTAINMENT CONTENT — 1.1%           
 1,325,000   IMAX Corporation(b)  0.5000  04/01/26  $1,314,719 
                 
     HEALTH CARE FACILITIES & SERVICES — 3.5%           
 3,500,000   PetIQ, Inc.  4.0000  06/01/26   4,232,200 
                 
     INTERNET MEDIA & SERVICES — 10.0%           
 2,050,000   Amazon.com, Inc.- JPMorgan Chase Financial Co., LLC Synthetic(e)  3.5900  04/21/23   3,153,925 
 1,500,000   Google, Inc. - Bank of America Finance LLC Synthetic(e)  3.6429  09/28/23   2,924,850 
 3,500,000   TripAdvisor, Inc.(b)  0.2500  04/01/26   3,145,818 
 3,000,000   Twitter, Inc.(b),(c)    03/15/26   2,764,372 
               11,988,965 
     LEISURE FACILITIES & SERVICES   13.4%           
 4,500,000   Cheesecake Factory, Inc. (The)  0.3750  06/15/26   4,101,243 
 4,350,000   Cracker Barrel Old Country Store, Inc.(b)  0.6250  06/15/26   4,270,427 
 4,500,000   DraftKings, Inc.(b),(c)    03/15/28   3,946,235 
 2,500,000   McDonald’s Corp. - Credit Suisse AG Synthetic(e)  1.9200  05/28/27   2,647,250 
 1,000,000   Vail Resorts, Inc.(b),(c)    01/01/26   1,105,747 
               16,070,902 
     LEISURE PRODUCTS — 7.6%           
 2,200,000   D.R. Horton, Inc. - Barclays Bank PLC Synthetic(e)  3.8900  09/26/23   3,735,380 
 3,500,000   LCI Industries(b)  1.1250  05/15/26   3,697,094 
 1,300,000   Winnebago Industries Inc  1.5000  04/01/25   1,671,520 
               9,103,994 
                 
     MEDICAL EQUIPMENT & DEVICES — 4.0%           
 5,500,000   Haemonetics Corporation(b),(c)    03/01/26   4,829,410 
                 
     METALS & MINING — 3.7%           
 4,500,000   Century Aluminum Company(b)  2.7500  05/01/28   4,478,893 

 

The accompanying notes are an integral part of these financial statements. 

17

 

MILLER CONVERTIBLE PLUS FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal      Coupon Rate       
Amount ($)      (%)  Maturity  Fair Value 
     CONVERTIBLE BONDS   142.2% (Continued)           
     OIL & GAS   6.7%           
 4,600,000   Chevron Corporation - Bank of America Finance LLC Synthetic(e)  1.9500  10/27/28  $4,617,020 
 3,100,000   Exxon Mobil Corp. - Citigroup Global Markets Holdings, Inc. Synthetic(e)  1.5490  11/24/27   3,418,370 
               8,035,390 
                 
     RENEWABLE ENERGY — 1.8%           
 2,000,000   Enphase Energy, Inc.(b),(c)    03/01/26   2,174,265 
                 
     SEMICONDUCTORS — 3.8%           
 4,500,000   Vishay Intertechnology, Inc.  2.2500  06/15/25   4,581,450 
                 
     SOFTWARE — 4.2%           
 1,600,000   Akamai Technologies, Inc.  0.3750  09/01/27   1,763,000 
 1,200,000   Microsoft Corp. - Morgan Stanley Finance, LLC. Synthetic(e)  2.3773  10/25/24   2,155,260 
 1,000,000   Mitek Systems, Inc.(b)  0.7500  02/01/26   1,131,674 
               5,049,934 
     TECHNOLOGY HARDWARE — 4.0%           
 1,450,000   Apple, Inc. - JPMorgan Chase Financial Co., LLC Synthetic(e)  3.8700  10/16/23   3,381,980 
 1,289,000   InterDigital, Inc.  2.0000  06/01/24   1,396,148 
               4,778,128 
     TECHNOLOGY SERVICES — 9.4%           
 1,900,000   Euronet Worldwide, Inc.  0.7500  03/15/49   2,058,857 
 5,000,000   International Business Machines Corporation - Credit Suisse AG Synthetic(e)  1.8775  07/03/28   4,633,000 
 4,500,000   Parsons Corporation  0.2500  08/15/25   4,586,289 
               11,278,146 
     TRANSPORTATION & LOGISTICS — 11.7%           
 4,385,000   Air Transport Services Group, Inc.  1.1250  10/15/24   4,659,062 
 5,000,000   JetBlue Airways Corporation(b)  0.5000  04/01/26   4,826,082 
 5,000,000   Spirit Airlines, Inc.  1.0000  05/15/26   4,522,000 
               14,007,144 

 

The accompanying notes are an integral part of these financial statements. 

18

 

MILLER CONVERTIBLE PLUS FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal          Coupon Rate         
Amount ($)          (%)   Maturity   Fair Value 
     TRANSPORTATION EQUIPMENT — 8.2%           
 4,700,000   Greenbrier Companies, Inc.(b)        2.8750    04/15/28   $4,902,784 
 4,500,000   Meritor, Inc.        3.2500    10/15/37    4,906,456 
                       9,809,240 
                          
     TOTAL CONVERTIBLE BONDS (Cost $163,250,342)         170,523,550 
                          
                          
        Expiration                
 Contracts(d)      Date   Exercise Price   Notional Value      
     EQUITY OPTIONS PURCHASED (a) - 0.2%  
     PUT OPTIONS PURCHASED - 0.2%                    
 360   General Motors Company   01/20/2023   $50   $1,959,480    207,720 
     TOTAL PUT OPTIONS PURCHASED (Cost - $458,980)      
                          
     TOTAL EQUITY OPTIONS PURCHASED (Cost - $458,980)         207,720 
                          
 Contracts(d)                        
     INDEX OPTIONS PURCHASED (a) - 0.1%           
     PUT OPTIONS PURCHASED - 0.1%                    
 37   NASDAQ 100 Index   12/17/2021    13,000    58,646,739    116,550 
 32   S&P 500 Index   01/21/2022    3,850    14,737,216    75,360 
     TOTAL PUT OPTIONS PURCHASED (Cost - $3,996,138)         191,910 
                          
     TOTAL INDEX OPTIONS PURCHASED (Cost - $3,996,138)         191,910 
                          
     TOTAL INVESTMENTS - 144.1% (Cost $169,505,760)        $172,773,800 
     LIABILITIES IN EXCESS OF OTHER ASSETS - (44.1)%         (52,887,351)
     NET ASSETS - 100.0%        $119,886,449 

 

LLC- Limited Liability Company

 

LTD- Limited Company

 

PLC- Public Limited Company

 

(a)Non-income producing security.

 

(b)Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers.

 

(c)Zero coupon bond.

 

(d)Each contract is equivalent to one futures contract.

 

(e)Interest rate represents the comparable yield on the contingent payment debt instruments.

 

The accompanying notes are an integral part of these financial statements.

19

 

MILLER CONVERTIBLE PLUS FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

PORTFOLIO ANALYSIS
As of October 31, 2021
   % of Net 
Sector  Assets 
Health Care   36.8%
Consumer Discretionary   31.3%
Technology   26.5%
Industrial   26.2%
Communications   9.9%
Energy   8.5%
Materials   4.6%
Options   0.3%
Liabilities in Excess of Other Assets   (44.1)%
    100.0%

 

The accompanying notes are an integral part of these financial statements. 

20

 

MILLER INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
October 31, 2021

 

Shares            Fair Value 
     COMMON STOCKS — 1.1%           
     ASSET MANAGEMENT - 1.1%           
 100,000   Acropolis Infrastructure Acquisition Corporation(a)        $997,000 
 44,000   TortoiseEcofin Acquisition Corporation III(a)         437,800 
               1,434,800 
                 
     TOTAL COMMON STOCKS (Cost $1,440,000)         1,434,800 
                 
Principal      Coupon Rate        
Amount ($)      (%)  Maturity   Fair Value 
     CONVERTIBLE BONDS — 92.6%           
     AEROSPACE & DEFENSE — 0.8%           
 1,000,000   Kaman Corporation  3.2500  05/01/24   1,016,300 
                 
     ASSET MANAGEMENT — 1.3%           
 1,500,000   New Mountain Finance Corporation  5.7500  08/15/23   1,612,575 
                 
     AUTOMOTIVE — 3.0%           
 3,200,000   Ford Motor Company(b),(c)    03/15/26   3,801,238 
                 
     BANKING — 2.3%           
 3,000,000   Hope Bancorp, Inc.  2.0000  05/15/38   2,938,141 
                 
     BASIC INDUSTRY — 0.8%           
 1,000,000   Dow, Inc. - Bank of America Finance LLC Synthetic(e)  2.6410  06/18/24   1,064,300 
                 
     BIOTECH & PHARMA — 18.4%           
 3,800,000   AbbVie, Inc. - Goldman Sachs Finance Corp. Synthetic(e)  1.4700  02/03/28   3,571,240 
 2,900,000   BioMarin Pharmaceutical, Inc.  1.2500  05/15/27   2,932,557 
 2,014,000   Bristol-Myers Squibb Co. - Wells Fargo Finance, LLC. Synthetic(e)  2.3100  11/01/24   2,083,684 
 3,900,000   Halozyme Therapeutics, Inc.(b)  0.2500  03/01/27   3,469,544 
 3,100,000   Jazz Investments I Ltd.  1.5000  08/15/24   3,158,125 
 1,400,000   Johnson & Johnson - Citigroup Global Markets Holdings, Inc. Synthetic(e)  1.7920  06/30/27   1,432,200 
 1,000,000   Johnson & Johnson - Citigroup Global Markets Holdings, Inc. Synthetic(e)  1.5470  10/25/27   966,900 
 2,800,000   Merck & Co., Inc. - Goldman Sachs Financial Corp. Synthetic(e)  1.5700  02/24/28   2,835,840 
 2,000,000   Pacira BioSciences, Inc.  0.7500  08/01/25   2,104,362 

 

The accompanying notes are an integral part of these financial statements. 

21

 

MILLER INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal      Coupon Rate       
Amount ($)      (%)  Maturity  Fair Value 
     CONVERTIBLE BONDS — 92.6% (Continued)           
     BIOTECH & PHARMA — 18.4% (Continued)           
 1,000,000   Supernus Pharmaceuticals, Inc.  0.6250  04/01/23  $994,375 
               23,548,827 
                 
     CABLE & SATELLITE — 2.4%           
 3,000,000   Liberty Broadband Corp. Synthetic(b),(e)  1.2500  09/30/50   3,000,621 
                 
     CONSUMER SERVICES — 2.6%           
 3,300,000   Stride, Inc.  1.1250  09/01/27   3,313,200 
                 
     DIVERSIFIED INDUSTRIALS — 1.9%           
 2,600,000   3M Co. - Citigroup Global Markets Holdings, Inc. Synthetic(e)  2.1030  04/20/28   2,430,480 
                 
     ELECTRICAL EQUIPMENT — 2.0%           
 1,000,000   OSI Systems, Inc.  1.2500  09/01/22   1,036,881 
 1,000,000   SMART Global Holdings, Inc.  2.2500  02/15/26   1,492,500 
               2,529,381 
                 
     ENTERTAINMENT CONTENT — 0.8%           
 1,000,000   IMAX Corporation(b)  0.5000  04/01/26   992,240 
                 
     HEALTH CARE FACILITIES & SERVICES — 1.9%           
 2,000,000   PetIQ, Inc.  4.0000  06/01/26   2,418,400 
                 
     INSURANCE — 2.5%           
 3,200,000   Berkshire Hathaway, Inc. - Barclays Bank PLC Synthetic(e)  1.8652  04/14/28   3,128,960 
                 
     INTERNET MEDIA & SERVICES — 4.5%           
 500,000   Amazon.com, Inc.- JPMorgan Chase Financial Co., LLC Synthetic(e)  3.5900  04/21/23   769,250 
 500,000   Google, Inc. - Bank of America Finance LLC Synthetic(e)  3.6429  09/28/23   974,950 
 3,400,000   TripAdvisor, Inc.(b)  0.2500  04/01/26   3,055,937 
 1,000,000   Twitter, Inc.(b),(c)    03/15/26   921,458 
               5,721,595 

 

The accompanying notes are an integral part of these financial statements. 

22

 

MILLER INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal      Coupon Rate       
Amount ($)      (%)  Maturity  Fair Value 
     CONVERTIBLE BONDS — 92.6% (Continued)           
     LEISURE FACILITIES & SERVICES — 7.3%           
 3,300,000   Cheesecake Factory, Inc.  0.3750  06/15/26  $3,007,578 
 2,900,000   Cracker Barrel Old Country Store, Inc.(b)  0.6250  06/15/26   2,846,951 
 2,500,000   DraftKings, Inc.(b),(c)    03/15/28   2,192,353 
 1,245,000   McDonald’s Corp. - Credit Suisse AG Synthetic(e)  1.9200  05/28/27   1,318,331 
               9,365,213 
     LEISURE PRODUCTS — 3.2%           
 700,000   D.R. Horton, Inc. - Barclays Bank PLC Synthetic(e)  3.8900  09/26/23   1,188,530 
 2,700,000   LCI Industries(b)  1.1250  05/15/26   2,852,044 
               4,040,574 
     MEDICAL EQUIPMENT & DEVICES — 4.2%           
 3,900,000   Haemonetics Corporation(b),(c)    03/01/26   3,424,491 
 2,000,000   NuVasive, Inc.  0.3750  03/15/25   1,895,000 
               5,319,491 
                 
     METALS & MINING — 2.1%           
 2,700,000   Century Aluminum Company(b)  2.7500  05/01/28   2,687,336 
                 
     OIL & GAS — 3.6%           
 3,500,000   Chevron Corporation - Bank of America Finance LLC Synthetic(e)  1.9500  10/27/28   3,512,950 
 1,000,000   Exxon Mobil Corp. - Citigroup Global Markets Holdings, Inc. Synthetic(e)  1.5490  11/24/27   1,102,700 
               4,615,650 
                 
     RENEWABLE ENERGY — 1.7%           
 2,000,000   Enphase Energy, Inc.(b),(c)    03/01/26   2,174,265 
                 
     SEMICONDUCTORS — 2.3%           
 2,900,000   Vishay Intertechnology, Inc.  2.2500  06/15/25   2,952,490 
                 
     SOFTWARE — 0.4%           
 500,000   Akamai Technologies, Inc.  0.3750  09/01/27   550,938 
                 
     SPECIALTY FINANCE — 1.9%           
 2,400,000   PennyMac Corporation(b)  5.5000  03/15/26   2,484,000 

 

The accompanying notes are an integral part of these financial statements. 

23

 

MILLER INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

Principal      Coupon Rate       
Amount ($)      (%)  Maturity  Fair Value 
     CONVERTIBLE BONDS — 92.6% (Continued)           
     TECHNOLOGY HARDWARE — 2.2%           
 300,000   Apple, Inc. - JPMorgan Chase Financial Co., LLC Synthetic(e)  3.8700  10/16/23  $699,720 
 2,000,000   InterDigital, Inc.  2.0000  06/01/24   2,166,250 
               2,865,970 
     TECHNOLOGY SERVICES — 5.8%           
 1,000,000   Euronet Worldwide, Inc.  0.7500  03/15/49   1,083,609 
 3,000,000   International Business Machines Corporation - JPMorgan Chase Financial Company, LLC Synthetic(e)  1.0200  06/29/28   2,861,700 
 3,300,000   Parsons Corporation  0.2500  08/15/25   3,363,279 
 100,000   Visa, Inc. - Barclays Bank PLC Synthetic(e)  1.2800  02/18/25   109,880 
               7,418,468 
     TRANSPORTATION & LOGISTICS — 7.2%           
 2,800,000   Air Transport Services Group, Inc.  1.1250  10/15/24   2,975,000 
 3,200,000   JetBlue Airways Corporation(b)  0.5000  04/01/26   3,088,692 
 3,400,000   Spirit Airlines, Inc.  1.0000  05/15/26   3,074,960 
               9,138,652 
     TRANSPORTATION EQUIPMENT — 5.5%           
 3,300,000   Greenbrier Companies, Inc.(b)  2.8750  04/15/28   3,442,380 
 3,300,000   Meritor, Inc.  3.2500  10/15/37   3,598,067 
               7,040,447 
                 
     TOTAL CONVERTIBLE BONDS (Cost $116,454,489)         118,169,752 
                 
     U.S. GOVERNMENT & AGENCIES — 1.5%           
     U.S. TREASURY OBLIGATIONS — 1.5%           
 2,000,000   United States Treasury Note  0.6250  03/31/27   1,934,492 
     TOTAL U.S. GOVERNMENT & AGENCIES (Cost $1,985,641)           
                 
Shares               
     SHORT-TERM INVESTMENTS — 4.6%           
     MONEY MARKET FUNDS - 4.6%           
 5,876,972   BlackRock Liquidity Funds T-Fund, Institutional Class, 0.01%(d)         5,876,972 
     TOTAL SHORT-TERM INVESTMENTS (Cost $5,876,972)           

 

The accompanying notes are an integral part of these financial statements. 

24

 

MILLER INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (Continued)
October 31, 2021

 

  TOTAL INVESTMENTS - 99.8% (Cost $125,757,102)  $127,416,016 
  OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2%   244,478 
  NET ASSETS - 100.0%  $127,660,494 

 

LLC- Limited Liability Company

 

LTD- Limited Company

 

PLC- Public Limited Company

 

(a)Non-income producing security.

 

(b)Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers.

 

(c)Zero coupon bond.

 

(d)Rate disclosed is the seven-day effective yield as of October 31, 2021.

 

(e)Interest rate represents the comparable yield on the contingent payment debt instruments.

 

PORTFOLIO ANALYSIS
As of October 31, 2021
  % of Net 
Sector  Assets 
Health Care   24.5%
Industrial   17.4%
Consumer Discretionary   16.1%
Technology   12.2%
Financial   9.1%
Communications   6.2%
Energy   5.3%
Materials   2.9%
U.S. Treasury Obligations   1.5%
Short-Term Investments   4.6%
Other Assets in Excess of Liabilities   0.2%
    100.0%

 

The accompanying notes are an integral part of these financial statements.

25

 

Miller Funds
STATEMENTS OF ASSETS AND LIABILITIES
October 31, 2021

 

   Miller   Miller   Miller 
   Convertible   Convertible   Intermediate 
   Bond Fund   Plus Fund   Bond Fund 
Assets:            
Investments in Securities at Cost  $914,866,424   $169,505,760   $125,757,102 
Investments in Securities at Fair Value  $972,109,178   $172,773,800   $127,416,016 
Segregated Cash - Deposit with Broker for Options       1,701,110     
Segregated Cash - Collateral for Loan       13,385     
Receivable for Securities Sold       392,831     
Receivable for Fund Shares Sold   1,078,297    94,855    7,867 
Interest and Dividend Receivable   1,863,989    380,004    308,789 
Prepaid Expenses and Other Assets   64,220    16,406    24,473 
Total Assets   975,115,684    175,372,391    127,757,145 
                
Liabilities:               
Line of Credit Payable       55,000,000     
Accrued Advisory Fees   614,083    155,608    65,333 
Due to Custodian       148,630      
Interest Payable       98,011     
Accrued Distribution Fees   68,182         
Payable for Fund Shares Redeemed   388,862    17,907     
Accrued Expenses and Other Liabilities   238,784    65,786    31,318 
Total Liabilities   1,309,911    55,485,942    96,651 
                
Net Assets  $973,805,773   $119,886,449   $127,660,494 
                
Composition of Net Assets:               
At October 31, 2021, Net Assets consisted of:               
Paid-in-Capital  $883,996,224   $106,565,416   $122,789,454 
Accumulated Earnings   89,809,549    13,321,033    4,871,040 
Net Assets  $973,805,773   $119,886,449   $127,660,494 
                
Net Asset Value Per Share               
Class A Shares               
Net Assets  $40,582,353           
Shares of Beneficial Interest Outstanding (no par value; unlimited shares authorized)   2,792,132           
Net Asset Value and Redemption Price per Share  $14.53           
Maximum Offering Price Per Share (Includes a Maximum Sales Charge of 3.75%)  $15.10           
                
Class I Shares               
Net Assets  $873,183,820   $119,886,449   $127,660,494 
Shares of Beneficial Interest Outstanding (no par value; unlimited shares authorized)   60,277,128    4,617,372    7,285,743 
Net Asset Value, Offering and Redemption Price per Share  $14.49   $25.96   $17.52 
                
Class C Shares               
Net Assets  $60,039,600           
Shares of Beneficial Interest Outstanding (no par value; unlimited shares authorized)   4,175,441           
Net Asset Value, Offering and Redemption Price per Share  $14.38           

 

The accompanying notes are an integral part of these financial statements.

26

 

Miller Funds
STATEMENTS OF OPERATIONS
For the Year Ended October 31, 2021

 

   Miller   Miller   Miller 
   Convertible   Convertible   Intermediate 
   Bond Fund   Plus Fund   Bond Fund 
Investment Income:               
Interest Income  $8,828,487   $1,844,626   $1,312,433 
Dividend Income   1,065,339    166,801    108,481 
Total Investment Income   9,893,826    2,011,427    1,420,914 
                
Expenses:               
Investment Advisory Fees   6,812,275    1,767,826    799,867 
Distribution Fees (Class A)   280,264         
Distribution Fees (Class C)   618,554         
Third Party Administrative Services Fees   598,824    79,900    51,719 
Administration Fees   327,898    68,375    58,355 
Trustees’ Fees   188,582    33,311    21,724 
Transfer Agent Fees   209,685    27,269    24,999 
Audit Fees   114,390    18,570    8,241 
Custodian Fees   101,777    38,314    20,668 
Registration and Filing Fees   86,301    28,310    28,976 
Printing Expense   60,686    8,673    7,428 
Legal Fees   65,626    8,789    6,603 
Insurance Expense   65,329    13,930    7,887 
Chief Compliance Officer Fees   41,811    6,818    4,373 
Interest Expense       826,585     
Miscellaneous Expenses   29,708    4,073    3,979 
Total Expenses   9,601,710    2,930,743    1,044,819 
Plus (Less): Expenses Recaptured (Fees Waived) by Adviser       406,183    (30,326)
Net Expenses   9,601,710    3,336,926    1,014,493 
Net Investment Income (Loss)   292,116    (1,325,499)   406,421 
                
Net Realized and Unrealized Gain (Loss) on Investments:               
Net Realized Gain (Loss) on:               
Investments   71,907,455    26,252,762    9,365,156 
Purchased Options       (7,043,144)    
Written Options       (1,308)    
Total Net Realized Gain   71,907,455    19,208,310    9,365,156 
                
Net Change in Unrealized Appreciation (Depreciation) on:               
Investments   10,759,156    (3,411,237)   (1,657,728)
Purchased Options       (4,317,333)    
Total Net Change in Unrealized Appreciation (Depreciation)   10,759,156    (7,728,570)   (1,657,728)
Net Realized and Unrealized Gain on Investments   82,666,611    11,479,740    7,707,428 
                
Net Increase in Net Assets Resulting From Operations  $82,958,727   $10,154,241   $8,113,849 

 

The accompanying notes are an integral part of these financial statements.

27

 

Miller Convertible Bond Fund
STATEMENTS OF CHANGES IN NET ASSETS

 

   Year   Year 
   Ended   Ended 
   October 31, 2021   October 31, 2020 
Operations:        
Net Investment Income  $292,116   $5,373,540 
Net Realized Gain on Investments   71,907,455    43,864,824 
Net Change in Unrealized Appreciation on Investments   10,759,156    25,608,037 
Net Increase in Net Assets Resulting From Operations   82,958,727    74,846,401 
           
Distributions to Shareholders From:          
Total Distributions Paid          
Class A ($0.69 and $0.31 per share, respectively)   (2,752,370)   (1,415,858)
Class I ($0.77 and $0.39 per share, respectively)   (40,527,256)   (17,950,880)
Class C ($0.62 and $0.25 per share, respectively)   (2,634,187)   (1,163,625)
Total Distributions to Shareholders   (45,913,813)   (20,530,363)
           
Beneficial Interest Transactions:          
Class A          
Proceeds from Shares Issued   12,744,154    10,866,686 
Distributions Reinvested   2,506,175    1,299,096 
Cost of Shares Redeemed   (30,807,101)   (31,912,638)
Total Class A Shares   (15,556,772)   (19,746,856)
Class I          
Proceeds from Shares Issued   324,079,338    225,951,524 
Distributions Reinvested   30,588,176    13,064,107 
Cost of Shares Redeemed   (131,553,593)   (304,816,582)
Total Class I Shares   223,113,921    (65,800,951)
Class C          
Proceeds from Shares Issued   3,573,063    5,184,777 
Distributions Reinvested   2,306,927    1,036,425 
Cost of Shares Redeemed   (8,253,160)   (14,327,153)
Total Class C Shares   (2,373,170)   (8,105,951)
Total Beneficial Interest Transactions   205,183,979    (93,653,758)
           
Increase (Decrease) in Net Assets   242,228,893    (39,337,720)
           
Net Assets:          
Beginning of Year   731,576,880    770,914,600 
End of Year  $973,805,773   $731,576,880 
           
SHARE ACTIVITY          
Class A:          
Shares Issued   857,178    866,118 
Shares Reinvested   170,245    100,185 
Shares Redeemed   (2,109,778)   (2,539,236)
Net decrease in shares of beneficial interest outstanding   (1,082,355)   (1,572,933)
           
Class I:          
Shares Issued   22,118,138    17,402,997 
Shares Reinvested   2,085,030    1,008,737 
Shares Redeemed   (8,960,786)   (24,392,483)
Net increase (decrease) in shares of beneficial interest outstanding   15,242,382    (5,980,749)
           
Class C:          
Shares Issued   244,462    413,651 
Shares Reinvested   158,228    79,800 
Shares Redeemed   (564,544)   (1,137,729)
Net decrease in shares of beneficial interest outstanding   (161,854)   (644,278)

 

The accompanying notes are an integral part of these financial statements.

28

 

Miller Convertible Plus Fund
STATEMENTS OF CHANGES IN NET ASSETS

 

   Year   Year 
   Ended   Ended 
   October 31, 2021   October 31, 2020 
Operations:        
Net Investment Income (Loss)  $(1,325,499)  $16,503 
Net Realized Gain on Investments, Options   19,208,310    9,559,881 
Net Change in Unrealized Appreciation (Depreciation) on Investments and Options   (7,728,570)   5,378,925 
Net Increase in Net Assets Resulting From Operations   10,154,241    14,955,309 
           
Total Distributions Paid          
Class I ($2.13 and $0.42 per share, respectively)   (9,953,438)   (2,047,227)
Total Distributions to Shareholders   (9,953,438)   (2,047,227)
           
Beneficial Interest Transactions:          
Class I          
Proceeds from Shares Issued   20,024,819    10,921,430 
Distributions Reinvested   9,597,199    1,981,817 
Cost of Shares Redeemed   (28,879,054)   (24,278,153)
Total Class I Shares   742,964    (11,374,906)
           
Increase in Net Assets   943,767    1,533,176 
           
Net Assets:          
Beginning of Year   118,942,682    117,409,506 
End of Year  $119,886,449   $118,942,682 
           
SHARE ACTIVITY          
Class I:          
Shares Issued   721,399    437,170 
Shares Reinvested   351,256    83,256 
Shares Redeemed   (1,040,071)   (1,028,830)
Net increase (decrease) in shares of beneficial interest outstanding   32,584    (508,404)

 

The accompanying notes are an integral part of these financial statements.

29

 

Miller Intermediate Bond Fund
STATEMENTS OF CHANGES IN NET ASSETS

 

   Year   Year 
   Ended   Ended 
   October 31, 2021   October 31, 2020 
         
Operations:          
Net Investment Income  $406,421   $1,323,676 
Net Realized Gain on Investments   9,365,156    3,390,299 
Net Change in Unrealized Appreciation (Depreciation) on Investments   (1,657,728)   500,018 
Net Increase in Net Assets Resulting From Operations   8,113,849    5,213,993 
           
Total Distributions Paid Class I ($0.91 and $0.62 per share, respectively)   (5,066,335)   (3,441,879)
Total Distributions to Shareholders   (5,066,335)   (3,441,879)
           
Beneficial Interest Transactions:          
Class I          
Proceeds from Shares Issued   68,613,283    11,400,206 
Distributions Reinvested   4,736,801    3,311,173 
Cost of Shares Redeemed   (25,295,493)   (55,817,609)
Total Class I Shares   48,054,591    (41,106,230)
Total Beneficial Interest Transactions   48,054,591    (41,106,230)
           
Increase (Decrease) in Net Assets   51,102,105    (39,334,116)
           
Net Assets:          
Beginning of Year   76,558,389    115,892,505 
End of Year  $127,660,494   $76,558,389 
           
SHARE ACTIVITY          
Class I:          
Shares Issued   3,838,503    699,252 
Shares Reinvested   268,987    206,290 
Shares Redeemed   (1,421,515)   (3,508,141)
Net increase (decrease) in shares of beneficial interest outstanding   2,685,975    (2,602,599)

 

The accompanying notes are an integral part of these financial statements.

30

 

Miller Convertible Plus Fund
STATEMENT OF CASH FLOWS
For the Year Ended October 31, 2021

 

Cash flows from operating activities:    
Net increase in net assets resulting from operations  $10,154,241 
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:     
Purchases of investments and options   (267,642,594)
Proceeds from sales of investments and options   278,617,232 
Purchases of short term investments, net   (779,191)
Net realized gain from investments   (19,208,310)
Net change in unrealized appreciation (depreciation) from investments   7,728,570 
Net accretion of discounts   (377,747)
      
Changes in assets and liabilities (Increase)/decrease in assets:     
Dividend and interest receivable   226,594 
Receivable for securities sold   (392,831)
Prepaid expenses and other assets   1,300 
Increase/(decrease) in liabilities:     
Interest payable   37,276 
Accrued advisory fees   (32,033)
Accrued expenses and other liabilities   21,672 
Net cash provided by operating activities   8,354,179 
      
Cash flows from financing activities:     
Proceeds from revolving credit line payable to bank   31,000,000 
Repayment of borrowings under revolving credit line payable   (29,000,000)
Proceeds from shares sold   20,084,964 
Payment on shares redeemed   (28,861,147)
Cash distributions paid   (356,239)
Net cash used in financing activities   (7,132,422)
      
Net increase in cash   1,221,757 
Cash & Restricted Cash at beginning of year   492,738 
Cash & Restricted Cash at end of year  $1,714,495 
      
Cash    
Restricted Cash     
Segregated Cash - Deposit with Broker for Options   1,701,110 
Segregated Cash - Collateral for Loan   13,385 
Total Cash and Restricted Cash  $1,714,495 
      
Noncash or supplementary financing activities consist of:     
Noncash financing activities not including herein consists of:     
Reinvestment of dividends  $9,597,199 
Interest paid  $789,309 

 

The accompanying notes are an integral part of the financial statements.

31

 

Miller Convertible Bond Fund  
FINANCIAL HIGHLIGHTS  

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout each year presented.

 

   Class A 
   Year Ended October 31, 
   2021    2020   2019   2018   2017 
Net Asset Value, Beginning of Year  $13.78   $12.56   $12.42   $13.19   $12.53 
Increase (decrease) from operations:                         
Net investment income (loss) (a)   (0.05)   0.05    0.10    0.20    0.72 
Net gain (loss) from securities (both realized and unrealized)   1.49    1.48    0.54    (0.38)   0.36 
Total from operations   1.44    1.53    0.64    (0.18)   1.08 
Distributions to shareholders from:                         
Net investment income   (0.64)   (0.31)   (0.29)   (0.38)   (0.42)
Net realized gain   (0.05)       (0.21)   (0.21)    
Total distributions   (0.69)   (0.31)   (0.50)   (0.59)   (0.42)
Net Asset Value, End of Year  $14.53   $13.78   $12.56   $12.42   $13.19 
Total Return (b)   10.54%   12.33%   5.37%   (1.50)%   8.72%
Ratios/Supplemental Data                         
Net assets, end of year (in 000’s)  $40,582   $53,385   $68,437   $91,985   $109,900 
Ratio of expenses to average net assets   1.46%   1.49%   1.47%   1.44%   1.45%
Ratio of net investment income (loss) to average net assets   (0.36)%   0.40%   0.80%   1.53%   5.55%
Portfolio turnover rate   98%   94%   81%   107%   79%

 

 
(a)Per share amounts are calculated using the daily average shares method, which more appropriately presents the per share data for the year.

 

(b)Total returns are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distributions, if any, excluding the effect of sales loads. Total returns for periods less than one year are not annualized.

 

The accompanying notes are an integral part of the financial statements.

32

 

Miller Convertible Bond Fund
FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout each year presented.

 

   Class I 
   Year Ended October 31, 
   2021   2020   2019   2018   2017 
Net Asset Value, Beginning of Year  $13.75   $12.55   $12.41   $13.19   $12.53 
Increase (decrease) from operations:                         
Net investment income (a)   0.02    0.12    0.16    0.27    0.78 
Net gain (loss) from securities (both realized and unrealized)   1.49    1.47    0.54    (0.40)   0.36 
Total from operations   1.51    1.59    0.70    (0.13)   1.14 
Distributions to shareholders from:                         
Net investment income   (0.72)   (0.39)   (0.35)   (0.44)   (0.48)
Net realized gain   (0.05)       (0.21)   (0.21)    
Total distributions   (0.77)   (0.39)   (0.56)   (0.65)   (0.48)
Net Asset Value, End of Year  $14.49   $13.75   $12.55   $12.41   $13.19 
Total Return (b)   11.04%   12.93%   5.90%   (1.08)%   9.27%
Ratios/Supplemental Data                         
Net assets, end of year (in 000’s)  $873,184   $619,010   $640,466   $821,772   $781,823 
Ratio of expenses to average net assets   0.96%   0.99%   0.97%   0.94%   0.95%
Ratio of net investment income to average net assets   0.13%   0.89%   1.30%   2.09%   6.06%
Portfolio turnover rate   98%   94%   81%   107%   79%

 

 
(a)Per share amounts are calculated using the daily average shares method, which more appropriately presents the per share data for the year.

 

(b)Total returns are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distributions, if any, excluding the effect o sales loads. Total returns for periods less than one year are not annualized.

 

The accompanying notes are an integral part of the financial statements.

33

 

Miller Convertible Bond Fund
FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout each year presented.

 

   Class C 
   Year Ended October 31, 
   2021   2020   2019   2018   2017 
Net Asset Value, Beginning of Year  $13.64   $12.45   $12.31   $13.10   $12.45 
Increase (decrease) from operations:                         
Net investment income (loss) (a)   (0.13)   (0.01)   0.04    0.14    0.65 
Net gain (loss) from securities (both realized and unrealized)   1.49    1.45    0.54    (0.39)   0.35 
Total from operations   1.36    1.44    0.58    (0.25)   1.00 
Distributions to shareholders from:                         
Net investment income   (0.57)   (0.25)   (0.23)   (0.33)   (0.35)
Net realized gain   (0.05)       (0.21)   (0.21)    
Total distributions   (0.62)   (0.25)   (0.44)   (0.54)   (0.35)
Net Asset Value, End of Year  $14.38   $13.64   $12.45   $12.31   $13.10 
Total Return (b)   9.99%   11.68%   4.92%   (2.04)%   8.14%
Ratios/Supplemental Data                         
Net assets, end of year (in 000’s)  $60,040   $59,182   $62,012   $64,832   $71,406 
Ratio of expenses to average net assets   1.96%   1.99%   1.97%   1.94%   1.95%
Ratio of net investment income (loss) to average net assets   (0.86)%   (0.10)%   0.30%   1.06%   5.06%
Portfolio turnover rate   98%   94%   81%   107%   79%

 

 
(a)Per share amounts are calculated using the daily average shares method, which more appropriately presents the per share data for the year.

 

(b)Total returns are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distributions, if any, excluding the effect of sales loads. Total returns for periods less than one year are not annualized.

 

The accompanying notes are an integral part of the financial statements.

34

 

Miller Convertible Plus Fund
FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout each year presented.

 

   Class I 
   Year Ended October 31, 
   2021   2020   2019   2018   2017 
Net Asset Value, Beginning of Year  $25.94   $23.05   $22.82   $24.30   $22.45 
Increase from operations:                         
Net investment income (loss) (a)   (0.28)   0.00(c)   (0.06)   0.14    1.21 
Net gain (loss) from securities (both realized and unrealized)   2.43    3.31    1.53    (0.19)   1.27 
Total from operations   2.15    3.31    1.47    (0.05)   2.48 
Distributions to shareholders from:                         
Net investment income   (1.99)   (0.42)   (0.19)   (0.72)   (0.63)
Net realized gain   (0.14)       (1.05)   (0.71)    
Total distributions   (2.13)   (0.42)   (1.24)   (1.43)   (0.63)
Net Asset Value, End of Year  $25.96   $25.94   $23.05   $22.82   $24.30 
Total Return (b)   8.05%   14.54%   7.16%   (0.32)%   11.16%
Ratios/Supplemental Data                         
Net assets, end of year (in 000’s)  $119,886   $118,943   $117,410   $140,726   $136,449 
Ratio of expenses to average net assets, before reimbursement   2.59% (d)   2.96% (d)   4.75%   4.60%   4.15%
net of reimbursement   2.59% (d)(e)   2.96% (d),(e)   3.61%   3.46%   4.00%
Ratio of net investment income (loss) to average net assets   (1.03)%   0.01%   (0.26)%   0.60%   5.11%
Portfolio turnover rate   145%   127%   110%   141%   122%

 

 
(a)Per share amounts are calculated using the daily average shares method, which more appropriately presents the per share data for the year.

 

(b)Total returns are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distributions, if any, excluding the effect of sales loads. Total returns for periods less than one year are not annualized. Had the adviser not absorbed a portion of the expenses or recaptured expenses during certain periods, total returns would have been lower or higher, respectively.

 

(c)Amount is less than $0.005 per share.

 

(d)Ratio of expenses to average net assets includes borrowing costs not subject to the Expense Limitation Agreement as described in Note 3. Borrowing costs represented 0.64% and 1.01% of average net assets for the year ended October 31, 2021 and year ended October 31, 2020, respectively.

 

(e)Ratio includes expense recapture of prior years’ expense waivers/reimbursements in accordance with the Expense Limitation Agreement as described in Note 3. Recapture of prior years’ expense waivers/reimbursements represented 0.32% and 0.37% of average net assets for the year ended October 31, 2021 and year ended October 31, 2020, respectively.

 

The accompanying notes are an integral part of the financial statements.

35

 

Miller Intermediate Bond Fund
FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout each year presented.

 

   Class I 
   Year Ended October 31, 
   2021   2020   2019   2018   2017 
Net Asset Value, Beginning of Year  $16.64   $16.09   $16.08   $16.55   $16.21 
Increase from operations:                         
Net investment income (a)   0.07    0.24    0.24    0.30    0.62 
Net gain (loss) from securities (both realized and unrealized)   1.72    0.93    0.52    (0.14)   0.08 
Total from operations   1.79    1.17    0.76    0.16    0.70 
Distributions to shareholders from:                         
Net investment income   (0.91)   (0.62)   (0.29)   (0.38)   (0.36)
Net realized gain           (0.46)   (0.25)    
Total distributions   (0.91)   (0.62)   (0.75)   (0.63)   (0.36)
Net Asset Value, End of Year  $17.52   $16.64   $16.09   $16.08   $16.55 
Total Return (b)   10.83%   7.45%   5.08%   0.96%   4.34%
Ratios/Supplemental Data                         
Net assets, end of year (in 000’s)  $127,660   $76,558   $115,893   $108,554   $147,539 
Ratio of expenses to average net assets, before reimbursement/recapture   0.98%   1.06%   1.20%   1.17%   1.18%
net of reimbursement/recapture   0.95%   0.95%   1.02%   1.05%   1.25%
Ratio of net investment income to average net assets   0.38%   1.46%   1.54%   1.85%   3.78%
Portfolio turnover rate   113%   106%   77%   98%   83%

 

 

(a)Per share amounts are calculated using the daily average shares method, which more appropriately presents the per share data for the year.

 

(b)Total returns are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distributions, if any, excluding the effect of sales loads. Total returns for periods less than one year are not annualized. Had the adviser not absorbed a portion of the expenses or recaptured expenses during certain periods, total returns would have been lower or higher, respectively.

 

The accompanying notes are an integral part of the financial statements.

36

 

Miller Funds
NOTES TO FINANCIAL STATEMENTS
October 31, 2021

 

1.ORGANIZATION

 

The Miller Convertible Bond Fund (the “Convertible Bond Fund”), the Miller Convertible Plus Fund (the “Convertible Plus Fund”), and Miller Intermediate Bond Fund (the “Intermediate Bond Fund”) referred to collectively, as the “Funds”, are separate series of the Miller Investment Trust (the “Trust”), a Delaware statutory trust organized on September 28, 2007. The Trust is registered as an open-end management investment company. The Funds are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as diversified, open-end management investment companies. Convertible Bond Fund’s primary investment objective is to maximize total return comprising current income and capital appreciation, consistent with preservation of capital. Convertible Plus Fund’s primary investment objective is to use leverage to maximize total return comprising current income and capital appreciation. Intermediate Bond Fund’s primary investment objective is to maximize total return comprising current income and capital appreciation, consistent with preservation of capital.

 

The Convertible Bond Fund currently offers Class A, Class I and Class C shares of which Class A and Class I shares commenced operations on December 27, 2007 and Class C shares commenced operations on December 1, 2009. Convertible Plus Fund and Intermediate Bond Fund currently offer only Class I shares which commenced operations on December 31, 2014. On July 13, 2019, $987,053 and 42,539 shares of Class A and $250,886 and 10,970 shares of Class C shares of the Convertible Plus Fund were converted into 53,421 Class I shares of Convertible Plus Fund, and $937,238 and 58,646 shares of Class A and $323,384 and 20,140 shares of Class C of the Intermediate Bond Fund were converted into 78,883 Class I shares of Intermediate Bond Fund. Prior to July 13, 2019, the Convertible Plus Fund and Intermediate Bond Fund offered three classes of shares designated as Class A, Class C and Class I. Class A and Class C shares of the Convertible Plus Fund and Intermediate Bond Fund are no longer available for purchase. Class I and Class C shares are offered at net asset value. Class A shares are offered at net asset value plus a maximum sales charge of 3.75% (5.75% through April 13, 2021). Each class represents an interest in the same assets of the respective Fund and classes are identical except for differences in their sales charge structures and ongoing service and distribution charges. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to its service and/or distribution plans. Each Fund’s income, expenses (other than class specific distribution fees) and realized and unrealized gains and losses are allocated proportionately each day based upon the relative net assets of each class.

 

Wellesley Asset Management, Inc. serves as the Funds’ investment adviser (the “Adviser”).

 

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 “Financial Services - Investment Companies.”

 

The following is a summary of significant accounting policies followed by the Funds in preparation of their financial statements.

 

Security Valuation – The Funds’ securities are valued at the last sale price on the exchange in which such securities are primarily traded, as of the close of business on the day the securities are being valued. NASDAQ traded securities are valued using the NASDAQ Official Closing Price (“NOCP”). If the NOCP is not available, such securities shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the bid and asked prices. Exchange traded options, futures and options on futures are valued at the final settle price or, in the absence of a sale price, at the mean between the current bid and ask prices on the day of valuation. Index options shall be valued at the mean between the current bid and ask prices on the day of valuation. Debt securities and long-term U.S. Treasury obligations (other than short-term obligations) are valued each day by an independent pricing service approved by the Trust’s Board of Trustees (the “Board”) using methods which include current market quotations from a major market maker or counterparty in/to the securities and based on

37

 

Miller Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
October 31, 2021

 

methods which include the consideration of yields or prices of securities of comparable quality, coupon, maturity and type. The independent pricing service does not distinguish between smaller-sized bond positions known as “odd lots” and larger institutional-sized bond positions known as “round lots”. The Funds may fair value a particular bond if the Adviser does not believe that the round lot value provided by the independent pricing service reflects fair value of the Funds’ holding. Short-term debt obligations that mature in 60 days or less, at the time of purchase, may be valued at amortized cost, provided such valuations represent fair value. Investments in open-end investment companies are valued at net asset value. Due to custodian as recorded on the Statement of Assets and Liabilities is recorded at cost and approximates fair value; it is classified as level 2 under the fair value hierarchy.

 

Securities for which current market quotations are not readily available or for which quotations are not deemed to be representative of market values are valued at fair value as determined in good faith by a Fair Valuation Committee in accordance with the Trust’s Portfolio Securities Valuation Procedures (the “Procedures”) adopted by the Board. The Procedures consider, among others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security.

 

The Funds utilize various methods to measure the fair value of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

 

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Funds have the ability to access.

 

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participate would use in valuing the asset or liability, and would be based on the best information available.

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of October 31, 2021 for the Funds’ assets and liabilities measured at fair value:

 

Convertible Bond Fund                
                 
Assets  Level 1   Level 2   Level 3   Total 
Investments in Securities:                    
Common Stocks*  $1,317,154   $   $   $1,317,154 
Convertible Bonds*       940,285,832        940,285,832 
U.S. Treasury Obligations       96,725        96,725 
Short-Term Investments   30,409,467            30,409,467 
Total Investments in Securities  $31,726,621   $940,382,557   $   $972,109,178 

38

 

Miller Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
October 31, 2021

 

Convertible Plus Fund                
                 
Assets  Level 1   Level 2   Level 3   Total 
Investments in Securities:                    
Common Stocks*  $1,850,620   $   $   $1,850,620 
Convertible Bonds*       170,523,550        170,523,550 
Option Contracts Purchased   207,720    191,910        399,630 
Total Investments in Securities  $2,058,340   $170,715,460   $   $172,773,800 
                     
Intermediate Bond Fund                
                 
Assets  Level 1   Level 2   Level 3   Total 
Investments in Securities:                    
Common Stocks*  $1,434,800   $   $   $1,434,800 
Convertible Bonds*       118,169,752        118,169,752 
U.S. Treasury Obligations       1,934,492        1,934,492 
Short-Term Investments   5,876,972            5,876,972 
Total Investments in Securities  $7,311,772   $120,104,244   $   $127,416,016 

 

*Please refer to the Schedule of Investments for industry classifications.

 

Synthetic Convertible Bond Risk – Synthetic convertible bonds are financial instruments created by combining two or more separate securities that, in total, have returns that are similar to a convertible bond. Synthetic convertible bonds are derivative debt securities and are subject to the creditworthiness of the counterparty of the synthetic security. The value of a synthetic convertible bond may decline substantially if the counterparty’s creditworthiness deteriorates. The value of a synthetic convertible bond may also respond differently to market fluctuations than a convertible bond because a synthetic convertible is composed of two or more separate securities, each with its own market value.

 

The Funds invest in synthetic convertible bonds which may be packaged by investment banks and brokerage firms. Synthetic convertible bonds include structured equity linked products that combine unrelated securities which together have the characteristics of convertible securities: a fixed-income component and a convertible component. The fixed-income component is achieved by investing in non-convertible, fixed-income securities such as zero coupon, corporate or government bonds. The convertible component is achieved by investing in warrants or options to buy or sell common stock or various indices at a certain exercise price, or options on a stock index.

 

Synthetic convertible bonds also include index-linked and equity-linked convertible structured notes. Index-linked and equity-linked notes are securities, the value of which fluctuates based on the value of a basket of stocks or other securities (in the case of index-linked notes) or a single security (in the case of equity-linked notes). Many index-linked and equity-linked notes have a guarantee feature (usually supplied by a brokerage house or bank) that guarantees return of the original issue price, providing substantial protection against a decline in price, while preserving the ability for capital appreciation if the underlying basket of securities increases in value. Synthetic convertible bonds held by the Funds are contingent payment debt instruments that accrue interest income at the stated coupon rate for book purposes but at the comparable yield for tax purposes.

 

Leverage Risk – The use of leverage through activities such as borrowing or purchasing derivatives can magnify the effects of changes in the value of the Convertible Plus Fund and make the Convertible Plus Fund’s share price more volatile and sensitive to market movements. The leveraged investment techniques that the Convertible Plus Fund employs could cause investors in the Convertible Plus Fund to lose more money in adverse environments. Leverage may result in the creation of a liability that requires the Convertible Plus Fund to pay interest or fees, which may be greater than the income or gain received by the Convertible Plus Fund from the securities purchased with leverage proceeds.

 

Short Sales – A “short sale” is a transaction in which a Fund sells a security it does not own but have borrowed in anticipation that the market price of that security will decline. A Fund is obligated to replace the security borrowed

39

 

Miller Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
October 31, 2021

 

by purchasing it on the open market at a later date. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss, potentially unlimited in size. Conversely, if the price declines, the Fund will realize a gain, limited to the price at which the Fund sold the security short. As of October 31, 2021, the Funds had no open short positions.

 

Options Transactions – Each Fund is subject to equity price risk in the normal course of pursuing its investment objective and may purchase or sell options to help hedge against risk. When a Fund writes put and call options, an amount equal to the premium received is included in the Statements of Assets and Liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option. If an option expires on its stipulated expiration date or if a Fund enters into a closing purchase transaction, a gain or loss is realized. If a written call option is exercised, a gain or loss is realized for the sale of the underlying security and the proceeds from the sale are increased by the premium originally received. As writer of an option, a Fund has no control over whether the option will be exercised and, as a result, retains the market risk of an unfavorable change in the price of the security underlying the written option.

 

The Funds may purchase put and call options. Put options are purchased to hedge against a decline in the value of securities held in a Fund’s portfolio. If such a decline occurs, a put option will permit a Fund to sell the securities underlying such options at the exercise price, or to close out the options at a profit. The premium paid for a put or call option plus any transaction costs will reduce the benefit, if any, realized by a Fund upon exercise of the option, and, unless the price of the underlying security or index rises or declines sufficiently, the option may expire worthless to a Fund. In addition, in the event that the price of the security or index in connection with which an option was purchased moves in a direction favorable to a Fund, the benefits realized by a Fund as a result of such favorable movement will be reduced by the amount of the premium paid for the option and related transaction costs. Written and purchased options are non-income producing securities. With purchased options, there is minimal counterparty risk to a Fund since these options are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded options, guarantees against a possible default.

 

During the year ended October 31, 2021, the Miller Convertible Plus Fund held option contracts subject to equity price risk. The fair value of these option contracts as of October 31, 2021 was $399,630 and is included in Investments in Securities at Fair Value on the Statements of Assets and Liabilities. For the year ended October 31, 2021, the amount of unrealized depreciation and realized loss on purchased options contracts and written options contracts subject to equity price risk as included in the Statements of Operations amounted to $4,317,333, $7,043,144 and $1,308, respectively. During the year ended October 31, 2021, the Miller Convertible Bond Fund and Miller Intermediate Bond Fund did not hold options.

 

The notional value of the derivative instruments outstanding as of October 31, 2021 as disclosed in the Schedule of Investments for Miller Convertible Plus Fund serves as an indicator of the volume of derivative activity during the period.

 

Security Transactions and Investment Income – Investment security transactions are accounted for on a trade date basis. Cost is determined and gains and losses are based upon the specific identification method for both financial statement and federal income tax purposes.

 

Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Purchase discounts and premiums on securities are accreted or amortized over the life of the respective securities.

 

Expenses – Common expenses, income and gains and losses are allocated daily among share classes of the Funds based on the relative proportion of net assets represented by each class. Class specific expenses are charged directly to the responsible class of shares of the Funds.

 

Federal Income Taxes – The Funds intend to continue to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute all of its taxable income, if any, to shareholders. Accordingly, no provision for Federal income taxes is required in the financial statements. The Funds recognize the tax benefits of uncertain tax positions only when the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has reviewed the tax positions on returns filed for

40

 

Miller Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
October 31, 2021

 

open fiscal year ends October 31, 2018 through October 31, 2020, or expected to be taken in the Funds’ current fiscal year end returns, and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. The Funds identify their major tax jurisdictions as U.S. federal and the state of Massachusetts. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended October 31, 2021, the Funds did not incur any interest or penalties.

 

Distributions to Shareholders – Distributions from investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. The Funds will declare and pay net realized capital gains, if any, annually. The character of income and gains to be distributed is determined in accordance with income tax regulations which may differ from GAAP.

 

Indemnification – The Trust indemnifies its officers and trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnities. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Trust expects the risk of loss due to these warranties and indemnities to be remote.

 

3.INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES

 

The activities of the Funds are overseen by the Board. Pursuant to an Investment Advisory Agreement with the Funds, the Adviser, under the oversight of the Board, directs the daily operations of the Funds and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Adviser, the Funds pays the Adviser a management fee, computed and accrued daily and paid monthly, at an annual rate of 0.75% for the Convertible Bond Fund and the Intermediate Bond Fund of the average daily net assets of each respective Fund. The Convertible Plus Fund pays the Adviser an annual rate of 0.95% of the average daily managed assets, which is equal to its total assets including assets attributable to borrowings, minus accrued liabilities other than borrowings. For the year ended October 31, 2021, the Adviser earned management fees of $6,812,275, $1,767,826 and $799,867 for the Convertible Bond Fund, Convertible Plus Fund and the Intermediate Bond Fund, respectively.

 

The Adviser, pursuant to an Expense Limitation Agreement (the “Agreement”), has contractually agreed to reduce its fees and/or absorb expenses of the Convertible Plus Fund and the Intermediate Bond Fund, at least until February 28, 2022, to ensure that net annual operating expenses (excluding any front-end or contingent deferred loads, brokerage fees and commissions, acquired fund fees and expenses, borrowing costs such as interest and dividend expense on securities sold short, taxes and extraordinary expenses such as litigation) will not exceed 1.95% of the Convertible Plus Fund’s average daily net assets for Class I shares and 0.95% of the Intermediate Bond Fund’s average daily net assets for Class I shares. The Agreement allows the Adviser, subject to certain conditions, to recover amounts previously reimbursed for operating expenses to the Funds to the extent that the Funds’ expense ratios fall below the above indicated expense limitations. The amounts that can be recovered are limited to the difference between the actual expense ratio and the amount of the expense limitation during the 36 month period following such waiver or reimbursement. The potential recoupment amounts are the lesser of: (i) the expense cap in effect at the time of the fee waiver/recoupment; or (ii) the expense cap in effect at the time of recapture. For the year ended October 31, 2021 the Adviser waived fees of $30,326 for the Intermediate Bond Fund and recouped expenses of $406,183 from the Convertible Plus Fund.

 

As of October 31, 2021, the following amounts are subject to recapture by the Adviser by October 31 of the following years:

 

   2022   2023   2024 
Convertible Plus Fund  $1,377,852   $   $ 
Intermediate Bond Fund   209,060    101,168    30,326 

41

 

Miller Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
October 31, 2021

 

Distributor – The distributor of the Funds is Northern Lights Distributors, LLC (the “Distributor” or “NLD”). The Board has adopted, on behalf of each Fund, a Distribution Plan and Agreement pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the “Plan”), as amended, to pay for certain distribution activities and shareholder services. Convertible Bond Fund’s Class A shares and Class C shares pay 0.50% and 1.00%, respectively, per year of its average daily net assets for such distribution and shareholder service activities under the Plan. For the year ended October 31, 2021, the 12b-1 fees accrued amounted to $280,264 and $618,554 for the Convertible Bond Fund’s Class A shares and Class C shares, respectively.

 

The Distributor acts as each Fund’s principal underwriter in a continuous public offering of the Funds’ shares. For the year ended October 31, 2021, the Distributor received $106,137 in underwriting commissions for sales of Class A shares, of which $15,123 was retained by the principal underwriter or other affiliated broker-dealers for the Convertible Bond Fund.

 

In addition, certain affiliates of the Distributor provide services to the Funds as follows:

 

Ultimus Fund Solutions, LLC (“UFS”) – UFS, an affiliate of the Distributor, provides administration, fund accounting, and transfer agent services to the Trust. Pursuant to separate servicing agreements with UFS, the Funds pay UFS customary fees for providing administration, fund accounting and transfer agency services to the Funds.

 

Northern Lights Compliance Services, LLC (“NLCS”) – NLCS, an affiliate of UFS and the Distributor, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Funds. An officer of the Trust is also an officer of NLCS.

 

Blu Giant, LLC (“Blu Giant”) – Blu Giant, an affiliate of UFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Funds on an ad-hoc basis. For the provision of these services, Blu Giant receives customary fees from the Funds.

 

Trustee Fees - Each Trustee who is not affiliated with the Trust or the Adviser receives an annual retainer fee of $55,000, as well as $15,000 for one annual in-person meeting and $8,000 for all meetings conducted by telephone. Any additional as needed meetings, either in person or by telephone are covered by the retainer fee. The trustee who is chair of the Audit Committee receives an additional payment of $1,000 as an annual retainer fee for serving in that capacity. None of the Trustees who are affiliated with the Trust receive compensation from the Trust.

 

4.INVESTMENT TRANSACTIONS

 

The cost of security purchases and the proceeds from the sale of securities, other than short-term securities and U.S. Government securities, for the year ended October 31, 2021, amounted to $1,007,805,584 and $848,959,491, respectively, for the Convertible Bond Fund, $258,972,885 and $276,268,427, respectively, for the Convertible Plus Fund and $152,009,828 and $115,194,164, respectively, for the Intermediate Bond Fund. The cost of purchases and the proceeds from the sale of U.S. Government securities for the year ended October 31, 2021, amounted to $61,334,500 and $66,522,496, respectively, for the Convertible Bond Fund, $0 and $0 respectively, for the Convertible Plus Fund and $18,898,184 and $18,313,926, respectively, for the Intermediate Bond Fund.

 

5.LINE OF CREDIT

 

The Convertible Plus Fund may borrow for investment purposes, to meet repurchase requests and for temporary, extraordinary or emergency purposes. The Convertible Plus Fund is required to maintain asset coverage (that is, total assets including borrowings, less liabilities exclusive of borrowings) of at least 300% of the amount borrowed, with an exception it expects to limit its borrowings for investment purposes to 33 1/3% of the value of the Fund’s total assets (including the amount borrowed). The Convertible Plus Fund has entered into a line of credit agreement with Barclays Bank PLC, which permits the Convertible Plus Fund to borrow at a rate, per annum, equal to 1.15% plus the 3 month LIBOR rate to be paid quarterly. There is also an annual commitment fee. During the year ended October 31, 2021, the Convertible Plus Fund recorded $826,585 in interest expense on the line of credit. Average borrowings and the average interest rate during the year ended October 31, 2021, were $57,402,740 and 1.35%,

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Miller Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
October 31, 2021

 

respectively. The largest outstanding amount borrowed during the period was $64,000,000. The balance on the line of credit as of October 31, 2021 was $55,000,000 and the amount of the commitment was $75,000,000. The interest rate as of October 31, 2021 was 1.29%. The line of credit is recorded at cost on the statement of assets and liabilities. As of October 31, 2021, fair value of the line of credit approximates cost; fair value of the line of credit is estimated using level 2 inputs in the fair value hierarchy.

 

6.AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS

 

The identified cost of investments in securities owned by each Fund for federal income tax purposes and its respective gross unrealized appreciation and depreciation at October 31, 2021 were as follows:

 

       Gross Unrealized   Gross Unrealized   Net Unrealized 
   Tax Cost   Appreciation   (Depreciation)   Appreciation 
Convertible Bond Fund  $924,170,395   $78,343,461   $(30,404,678)  $47,938,783 
Convertible Plus Fund   167,179,879    11,329,481    (5,735,560)   5,593,921 
Intermediate Bond Fund   126,422,740    4,444,580    (3,451,304)   993,276 

 

7.DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

 

The tax character of fund distributions for the following periods was as follows:

 

For the year ended October 31, 2021: 
   Ordinary   Long-Term   Return of     
   Income   Capital Gains   Capital   Total 
Convertible Bond Fund  $45,885,245   $28,568   $   $45,913,813 
Convertible Plus Fund   9,953,438            9,953,438 
Intermediate Bond Fund   5,066,335            5,066,335 
                     
For the year ended October 31, 2020: 
   Ordinary   Long-Term   Return of     
   Income   Capital Gains   Capital   Total 
Convertible Bond Fund  $20,530,363   $   $   $20,530,363 
Convertible Plus Fund   2,047,227            2,047,227 
Intermediate Bond Fund   3,441,879            3,441,879 

 

As of October 31, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

 

   Undistributed   Undistributed   Capital Loss   Other   Unrealized   Total 
   Ordinary   Long-Term   Carry   Book/Tax   Appreciation/   Accumulated 
   Income   Capital Gains   Forwards   Differences   (Depreciation)   Earnings/ (Deficits) 
Convertible Bond Fund  $29,119,566   $12,751,200   $   $   $47,938,783   $89,809,549 
Convertible Plus Fund   7,727,112                5,593,921   $13,321,033 
Intermediate Bond Fund   3,877,764                993,276   $4,871,040 

 

The difference between book basis and tax basis distributable earnings and unrealized appreciation is primarily attributable to income on contingent convertible debt securities, 1256 option contracts, Section 305(c) deemed dividend distributions, and the tax deferral of losses on wash sales.

43

 

Miller Funds
NOTES TO FINANCIAL STATEMENTS (Continued)
October 31, 2021

 

At October 31, 2021, the Funds utilized capital loss carry forwards for federal income tax purposes as follows:

 

   Short-Term   Long-Term   Total   Utilized 
Intermediate Bond Fund  $   $   $   $2,479,455 

 

Permanent book and tax differences, primarily attributable to tax adjustments for equalization debits resulted in reclassification for the year ended October 31, 2021 as follows:

 

   Paid   Total 
   In   Distributable 
   Capital   Earnings (Losses) 
Convertible Bond Fund  $3,503,547   $(3,503,547)
Convertible Plus Fund   343,256    (343,256)
Intermediate Bond Fund   248,939    (248,939)

 

TAX INFORMATION

 

We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The Convertible Bond Fund hereby designates the following amounts for the Fund