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Form N-CSR OAK ASSOCIATES FUNDS For: Oct 31

December 29, 2020 7:49 AM EST

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 : 811-08549

 

Oak Associates Funds

(Exact name of registrant as specified in charter)

 

3875 Embassy Parkway, Suite 250

Akron, Ohio 44333

(Address of principal executive offices) (Zip code)

 

Charles A. Kiraly

3875 Embassy Parkway, Suite 250

Akron, Ohio 44333

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 1-888-462-5386

 

Date of fiscal year end: October 31

 

Date of reporting period: October 31, 2020

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

Item 1. Reports to Stockholders.

 

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from each Fund electronically by contacting the Fund at 1-888-462-5386 or, if you own these shares through a financial intermediary, by contacting your financial intermediary.

 

You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting the Fund at 1-888-462-5386. If you own shares through a financial intermediary, you may contact your financial intermediary or follow instructions included with this document to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held with the Fund complex or at your financial intermediary.

 

 

 

Oak Investment Philosophy

 

 

Oak Associates, ltd., advisor to the Oak Associates Funds, has been managing concentrated, low-turnover portfolios for over 30 years.

 

We appreciate the many long-term shareholders who invest alongside us in the Oak Associates Funds. Oak Associates employees, as well as their friends and families, maintain significant investments in the Funds. As fellow shareholders, we have a vested interest in ensuring that the highest standards are maintained and that the portfolios are positioned for future growth. Here is our approach to investing.

 

Long-term focus

 

To us, the appeal of an investment is driven by the long-term fundamentals of the company and its opportunity set, rather than short-term trading factors. We believe that this long-term mindset is increasingly valuable in today’s short-term oriented market.

 

Concentrated portfolios

 

We construct our portfolios with our best ideas, which means that our favorite stock ideas aren’t diluted by investments in less-favored positions. Academic studies have shown that managers gave up performance because they failed to concentrate in their best ideas. Concentration takes discipline, conviction and experience. We continue to adhere to a strategy of concentrated portfolios.

 

Low turnover

 

When we invest in a company, we do so with the intention of holding that stock for several years, not a few quarters. Low turnover can have the effect of minimizing trading costs as well as tempering the natural human instinct to act upon every data point.

 

Independent thinking

 

Being a good investor often requires not doing what the rest of the market is doing. While it’s difficult to go against the crowd – because as humans we are physiologically wired to herd – we believe that long-term outperformance requires it. One benefit of being located in Akron, Ohio (aside from being a great place to live), is that we are removed from the financial centers in other areas of the country, minimizing our chances of being swept up by the herd mentality. We value independent thinking and believe it is beneficial to our investment perspective.

 

The value of a Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Due to a limited number of underlying investments, funds that invest a signification portion of their assets in particular industry sectors or concentrated funds that focus on a particular industry or group of industries are more susceptible to the price movements of any one holding or industry and thus are generally more volatile than a portfolio invested in a wider variety of industries or industry sectors.

 

 

 

 

TABLE of CONTENTS

 

Shareholder Letter

1

Performance Update

5

White Oak Select Growth Fund

5

Pin Oak Equity Fund

7

Rock Oak Core Growth Fund

9

River Oak Discovery Fund

11

Red Oak Technology Select Fund

13

Black Oak Emerging Technology Fund

15

Live Oak Health Sciences Fund

17

Important Disclosures

19

Disclosure of Fund Expenses

22

Financial Statements

 

Schedules of Investments

24

Statements of Assets & Liabilities

43

Statements of Operations

45

Statements of Changes in Net Assets

47

Financial Highlights

53

Notes to Financial Statements

57

Additional Information

69

 

 

 

 

Shareholder Letter

 

 

November 23, 2020

 

Dear Fellow Shareholders,

 

The fiscal year 2020 will forever be remembered for the Coronavirus pandemic. During the health care crisis, a narrow set of large cap growth stocks drove US equity indexes to record levels. Following a sharp decline in March 2020, stocks steadily recovered in the second half of the year on the belief that the Covid-19 pandemic would be temporary in nature and that it would be overcome. Fueled by a broad stimulus package, a loose monetary environment and on the prospects of low interest rates for the foreseeable future, stocks discounted the short-term economic concerns and scaled a wall of worry.

 

The 2020 Coronavirus economy will be defined by the significant outperformance of streaming, working-from-home, video conferencing, and online shopping businesses, versus the underperformance of travel, service, and in-person entertainment industries. As the pandemic accelerated in March, some states issued shelter-in-place orders to help maintain hospital capacity and slow the spread. The resulting economic suppression had dire effects on service-related industries, causing a record-breaking spike in unemployment and producing a sudden recession. In response to the uncertain economic outlook, the Federal Reserve cut interest rates to zero and the Treasury Department coordinated a massive stimulus package of forgivable loans to businesses and direct payments to consumers. This helped avoid economic Armageddon. The combination of low interest rates and loose monetary policy propelled specific sectors. Stuck at home with limitations on travel and vacation options, homeowners renovated and real-estate prices climbed. Others purchased RVs, built home gyms, bought cars or consumed streaming media and online gaming.

 

While many sectors recovered rapidly following the Great Suppression, others have not. Hotel, airlines, entertainment, restaurants, and brick-and-mortar retailers have disproportionately suffered. A distinct split within the economy developed, where hourly and low-wage workers struggled, while corporate jobs simply shifted to a remote working environment. Ultimately, this divergence will need to narrow for the health of the broader US economy, although a vaccine is needed to fully correct the disparity that has developed.

 

The headline performance of popular US market benchmarks is overstated by the outperformance of the largest companies in the Index, which has masked broader weakness experienced throughout the rest of the equity market. Indeed, despite the S&P 500 (the “Index”) gaining 9.7% during the fiscal year, the average (and median) return was around -0.5%. On an absolute basis, 65% of the Index companies underperformed the indexes’ return, highlighting the outsized effect the largest companies exert on market-cap weighted benchmarks. Here are the 5 largest stocks in the Index, which account for close to 20% of the index, and their returns for the fiscal year: Apple +76%, Microsoft +42%, Amazon +37%, Facebook +37%, and Google +28%. While the average company suffered a drop in revenues and earnings, this select set of growth stocks drove the popular benchmark indexes higher.

 

Given the growth focus of Oak Associates’ strategies, our portfolios have performed well, although not as strong as a pure growth approach due to the valuation discipline of our philosophy. We hold several of the leading large-cap growth stocks, but do not own all of the top 5 or top 10 because some have more attractive business models than others. This is also because, historically, owning the largest of the large is usually a recipe for underperformance. At some point, size becomes a limiting factor and smaller companies outmaneuver larger ones by being more innovative or nimble. Yet for 2020 and 2019, owning the top 5 stocks in the index has been a winning strategy. Going forward this may not continue and historical trends could resume.

 

1

Annual Report | October 31, 2020

 

 

Shareholder Letter

 

 

As the Coronavirus pandemic unfolded in March, we authored a commentary that highlighted one relevant parallel for the stock market. Since there has not been a similar global epidemic in over 100 years, there are no past cycles to study the market’s likely response. However, we did foresee a similar chain of events that often occur in commodity markets. Regardless of the cause of a market disruption, it is common for capital to flood the sector in search of a solution and profits. This can dramatically shift a scarce resource into being oversupplied as the massive capital investment affects the supply/demand dynamics. Similarly, the Coronavirus pandemic has seen an unprecedented investment into research, therapeutics and vaccine development. These efforts support the thesis that the pandemic will be a temporary disruption to the global economy and foster a solution.

 

Nine months into the pandemic, we are already seeing confirmation of this. Several vaccines are in advanced trials, and it’s likely several will be safe, effective and readily available in the first half of 2021. Multiple vaccines will also thwart potential distribution problems, supply bottlenecks, and any resource nationalism that could occur, thereby facilitating an end to the contagion. The stock market understands this and may already be discounting its conclusion. In addition to a viable vaccine, progress in treatment options, such as monoclonal antibodies and antiviral drugs, have also improved the prognosis for those affected by Covid-19. While we certainly cannot claim victory yet, progress is being made.

 

One underreported transformational benefit of the 2020 crisis is the work-from-home revolution. Prior to the pandemic, telecommuting was endorsed sparingly by businesses. Yet the Coronavirus forced a real-time work from home experiment upon large segments of the economy with successful results. This could have huge benefits for businesses that may now save money on rent, provide a more attractive work environment, access a larger talent pool, or enhance profits. The concerns over productivity, collaboration, accountability were answered through this experiment. We have long believed that productivity gains are at the root of all good things economically.

 

Looking into 2021, a return to economic normalcy should develop with positive implications for the performance of the broader equity markets, particularly those which lagged in the Coronavirus economy. With a sustained recovery, a reduction in unemployment should also occur. Together, this is beneficial to consumer spending, investor sentiment, and business confidence. In all, the investment backdrop is very favorable, with an accommodative Federal Reserve committed to support the economy and interest rates low for the foreseeable future.

 

Thank you for your investment in The Oak Associates Funds.

 

Best regards,

 

 

Robert Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

 

1-888-462-5386 | www.oakfunds.com

2

 

 

HIGHLIGHTS from the 2020 FISCAL YEAR

 

 

October 31, 2019 to October 31, 2020 (Unaudited)

 

January, 2020

Red Oak Technology Select featured in the Zacks Investment Research article, “4 Best Technology Funds for 2020,” by Nitish Marwah. January 2, 2020.

 

February, 2020

Robert D. Stimpson, Co-Chief Investment Officer of Oak Associates Funds, joined CNBC’s “Closing Bell” to discuss the impact of the Coronavirus on tech. February 21, 2020.

 

March, 2020

Investor’s Business Daily Best Mutual Funds 2020 Awards. Red Oak Technology Select Fund (ROGSX) ranked among Investor’s Business Daily’s Best Sector Funds in their fifth annual “IBD Best Mutual Funds Awards” report supplement for Red Oak’s performance for the one-, three-, five- and 10-year periods ended December 31, 2019. March 23, 2020.

 

May, 2020

Red Oak Technology Select featured in the Zacks Investment Research article, “Are these Top 3 Ranked Mutual Funds in your Retirement Portfolio?” May 4, 2020.

 

READ MORE AT WWW.OAKFUNDS.COM

 

 

OAK ASSOCIATES FUNDS

 

 

This Page Intentionally Left Blank

 

 

White Oak Select Growth Fund

 

   

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

White Oak Select Growth Fund (the “Fund”) gained 11.60% for the fiscal year ended October 31, 2020, while the S&P 500 Index gained 9.71% and the Lipper Large-Cap Core Funds Average gained 7.91%. Over the last ten years, the Fund has gained an average of 11.93% per year.

 

The Coronavirus pandemic dominated the investment landscape for most of the past fiscal year. The high levels of uncertainty, an economic shutdown, and a short-lived recession overshadowed the global economy since January. U.S. equities weathered the turmoil extremely well. This is due to several factors, including: government stimulus, a crowding into large-cap stocks, and the prospects of a persistent low inflation/low interest rate environment.

 

The performance of U.S. benchmarks has actually masked broader weakness in U.S. stocks. This occurred as several of the largest holdings in the indexes soared as investors demonstrated a preference for those companies likely to weather an economic slowdown and/or benefit from the working from home environment. So, while the top 5 holdings in the S&P 500 rose significantly, the rest of the 495 stocks in the index fell on average. Going forward however, the foundation has been laid for a favorable backdrop for equities. Stocks tend to enjoy a low interest-rate/low-inflation environment and should respond positively to an economic normalization as the pandemic wanes.

 

Within the Fund, Amazon.com was not only the Fund’s best performing holding, but also the largest position. The online commerce giant has benefited from the surge in online shopping due to the economic restrictions and work-from-home shift. Amazon rose over 70% during the past fiscal year. The semiconductor company Qualcomm was the Fund’s second-best performing holding, rising 57%. The cellular chip company enjoyed an easing of tensions with Chinese cellular manufacturers and better-than-expected earnings guidance.

 

US Bank was the worst performing stock in the Fund. The diversified bank suffered from the pandemic driven economic slowdown and prospects that lower interest rates could hurt lending and profitability. The stock fell 28% during the fiscal year.

 

Looking to 2021, overcoming the Coronavirus pandemic and a return to a more normalized economy should boost earnings growth for equities. Numerous vaccines in development are likely to facilitate a broader economic recovery, although the speed at which life returns to normal may vary. Better participation from the majority of U.S. stocks, which have lagged the headline popular index returns, should also benefit investors as the narrow market leadership masks the underperformance of most sectors.

 

Overall, the macroeconomic backdrop established in response to the Covid-19 pandemic should support equities. Low interest rates and low inflation increase the present value of future earnings for investors. The prospects of additional monetary and fiscal stimulus would also benefit risk assets. Ultimately, the economic divergence that has developed between corporate and service-based industries will narrow, which should benefit the overall health of the U.S. economy.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

5

Annual Report | October 31, 2020

 

 

White Oak Select Growth Fund

Performance Update

 

All data below as of October 31, 2020 (Unaudited)

 

Fund Data

 

Ticker

WOGSX

Share Price

$107.21

Total Net Assets

$350.0M

Portfolio Turnover

13%

 

Sector Allocation^

 

Technology

24.8%

Health Care

20.7%

Consumer Discretionary

19.0%

Communications

17.4%

Financials

14.0%

Real Estate

3.0%

Consumer Staples

0.7%

Cash & Other Assets

0.4%

 

Top 10 Holdings^

 

1

Amazon.com, Inc.

13.6%

2

Alphabet, Inc.

12.7%

3

Xilinx, Inc.

5.9%

4

Lowe’s Cos., Inc.

5.4%

5

Charles Schwab Corp. (The)

5.2%

6

Amgen, Inc.

5.1%

7

Cisco Systems, Inc.

5.0%

8

Facebook, Inc. - Class A

4.8%

9

KLA Corp.

4.5%

10

JPMorgan Chase & Co.

4.4%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

White Oak Select Growth Fund

11.60%

10.57%

11.66%

11.93%

S&P 500 Total Return Index1

9.71%

10.42%

11.71%

13.01%

Lipper Large-Cap Core Funds Average2

7.91%

8.86%

10.15%

11.45%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2020): 0.95%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2020): 0.93%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1 Standard & Poor’s is the source and owner of the S&P Index data. 2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

6

 

 

Pin Oak Equity Fund

 

   

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Pin Oak Equity Fund (the “Fund”) gained 0.79% for the fiscal year ended October 31, 2020, while the broad Morningstar U.S. Market Index gained 10.45% and the Lipper Multi-Cap Core Funds Average gained 6.43%. Over the last ten years, the Fund has had an average gain of 12.05% per year.

 

Pin Oak Equity Fund’s more valuation sensitive positioning hampered returns during the past fiscal year. During the period, U.S. equity market strength became more concentrated in large-cap and growth companies, despite rising concerns over the U.S. economy during the Coronavirus pandemic. Specifically, the Fund’s exposure to financial stocks, which often reflect the health of the underlying economy, hurt returns as the economic suppression required to maintain hospital capacity early in 2020 sent the sector lower. Financials subsequently failed to recover as quickly as other areas of the market on uncertainty over potential default rates and earnings power due to the zero interest rate environment.

 

Since the Fund tends to take more contrarian positions and avoid over-hyped companies, it lacked exposure to one of the strongest areas in 2020. As the healthcare crisis unfolded, equity market strength became more concentrated in a handful of large-cap U.S. technology companies. This group of large, profitable, blue-chip companies became even more popular as uncertainty grew. Yet, apart from the largest of the large-cap growth stocks, the majority of the U.S. stocks underperformed the popular benchmarks and posted only modest gains.

 

Portfolio leaders during the fiscal year included Amazon.com. The e-commerce giant rose over 70% as shelter-at-home orders drove shoppers online and fueled digital media consumption. Amazon also benefit from the crowding that occurred into large-cap growth stocks. Investors piled into large companies they anticipated would weather the pandemic well. eBay, another online retailer, was the second-best performing holding, gaining 37% for similar reason.

 

Portfolio underperformers included energy company Royal Dutch Shell and diversified banking firm Wells Fargo. The Coronavirus pandemic and resulting economic suppression sent oil demand plummeting. Royal Dutch fell 54% in the fiscal year. Wells Fargo, which lost 41%, before being sold, has struggled to overcome a series of scandals and equity market volatility. It fell along with other financial stocks as the low interest rate environment pressures the industries net interest margins.

 

Pin Oak Equity Fund remains well diversified across industries and styles. More recently, the portfolio has expanded its market capitalization exposure to include more mid-cap stocks. This is in anticipation of a broadening economic recovery as the pandemic wanes. A return to economic normalcy should benefit more cyclical areas of the market and the Fund has shifted to take advantage of this inevitability. The fund’s small-cap exposure remains low due to a relative valuation advantage for large- and mid-cap stocks.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

7

Annual Report | October 31, 2020

 

 

Pin Oak Equity Fund

Performance Update

 

All data below as of October 31, 2020 (Unaudited)

 

Fund Data

 

Ticker

POGSX

Share Price

$70.93

Total Net Assets

$163.1M

Portfolio Turnover

15%

 

Sector Allocation^

 

Technology

23.5%

Health Care

23.4%

Consumer Discretionary

22.2%

Communications

17.9%

Financials

11.9%

Cash & Other Assets

1.1%

 

Top 10 Holdings^

 

1

Alphabet, Inc.

14.0%

2

Amazon.com, Inc.

9.5%

3

KLA Corp.

6.3%

4

Xilinx, Inc.

6.0%

5

Charles Schwab Corp. (The)

5.2%

6

Gentex Corp.

5.0%

7

eBay, Inc.

4.7%

8

Illumina, Inc.

4.2%

9

Facebook, Inc. - Class A

3.9%

10

McKesson Corp.

3.3%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Pin Oak Equity Fund

0.79%

6.34%

9.11%

12.05%

Morningstar U.S. Market Index1

10.45%

10.32%

11.65%

12.94%

Russell 3000 Total Return Index

10.15%

10.04%

11.48%

12.80%

Lipper Multi-Cap Core Funds Average2

6.43%

7.15%

8.94%

10.75%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2020): 0.96%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2020): 0.95%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1 Effective February 28, 2020, the Morningstar U.S. Market Index replaced the Russell 3000 Total Return Index as the Fund’s performance benchmark because Morningstar U.S. Market Index more closely aligns with the Fund’s investment strategy and portfolio composition. 2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

8

 

 

Rock Oak Core Growth Fund

 

   

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Rock Oak Core Growth Fund (the “Fund”) climbed 3.78% for the fiscal year ended October 31, 2020, while the Morningstar U.S. Mid-Cap Index rose 5.49%, and the Lipper Multi-Cap Core Funds Average gained 6.43%. Over the last ten years, the Fund has gained an average of 8.71% per year.

 

The U.S. equity market in 2020 was driven, in large part, by a narrow set of large-cap growth companies that dominate the popular benchmark indexes. The Coronavirus pandemic fueled several mega-cap companies, whose rare attributes of being large, very profitable, and likely to grow during uncertain times, caused them to significantly outperform. Outside of this rare subset of equities, the majority or U.S. equities actually underperformed the benchmarks. The short, but severe Covid-related recession and the uncertainty associated with it, hampered the performance of most companies.

 

During the fiscal year, the government’s response to the Coronavirus defined outcomes within the equity markets. As the health care crisis unfolded, the Federal Reserve acted quickly to lower the Fed Funds rates to zero percent. This helped to stabilize the economy as numerous shelter-in-place orders suppressed economic activity, but it also caused financial stocks to underperform. A massive stimulus package from the Treasury Department with lending to business and direct payments to consumers also aided the economy. The flood of stimulus certainly buoyed asset prices. Although the pandemic has had an uneven impact on the economy, service industries have been hit very hard while other corporate environments have remained resilient. Some sectors, such as home improvement, construction, and digital media have been prime beneficiaries in the recovery.

 

The Fund’s best performing stock in the fiscal year was Pool Corp., a distributor of swimming pool construction and maintenance products. The company has seen a surge of business due to the pandemic and low interest rates. The Fund’s second largest contributor to returns was Amazon.com. The online retailer benefited from the accelerated shift to online shopping during the lockdown phase of the epidemic. The company’s online streaming services also grew as customers sought out entertainment options.

 

The Fund’s largest underperformer was energy company Holly Frontier, which fell 60% on fears of falling global energy demand caused by the Coronavirus pandemic. The position was sold early on in the crisis, but its performance still hampered returns.

 

Going forward, the Fund remains focused on companies with solid fundamentals that trade at reasonable valuations and demonstrate a high commitment to shareholder value creation. The Fund has focused more and more on mid-capitalization stocks, recognizing that an economic normalization once past the Covid crisis should produce a broader participation within the equity market. Relative to other market capitalization ranges, mid-caps offer a solid combination of growth and attractive valuation.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

9

Annual Report | October 31, 2020

 

 

Rock Oak Core Growth Fund

Performance Update

 

All data below as of October 31, 2020 (Unaudited)

 

Fund Data

 

Ticker

RCKSX

Share Price

$16.80

Total Net Assets

$10.1M

Portfolio Turnover

52%

 

Sector Allocation^

 

Technology

29.3%

Consumer Discretionary

21.8%

Health Care

19.3%

Industrials

8.2%

Financials

5.9%

Communications

3.2%

Real Estate

3.2%

Materials

3.1%

Energy

2.9%

Cash & Other Assets

3.1%

 

Top 10 Holdings^

 

1

KLA Corp.

5.9%

2

Jazz Pharmaceuticals PLC

5.2%

3

Cognizant Technology Solutions Corp. - Class A

5.1%

4

TAL Education Group - ADR

4.8%

5

Ubiquiti Networks, Inc.

4.7%

6

Seagate Technology PLC

3.8%

7

F5 Networks, Inc.

3.7%

8

Hartford Financial Services Group, Inc. (The)

3.7%

9

Pool Corp.

3.6%

10

PulteGroup, Inc.

3.6%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Rock Oak Core Growth Fund

3.78%

4.72%

8.69%

8.71%

Morningstar U.S. Mid-Cap Index1

5.49%

7.86%

9.87%

12.05%

S&P 500 Total Return Index

9.71%

10.42%

11.71%

13.01%

Lipper Multi-Cap Core Funds Average2

6.43%

7.15%

8.94%

10.75%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2020): 1.38%/1.25%
Gross/Net Expense Ratio (as of fiscal year end October 31, 2020): 1.57%/1.25%

 

The Adviser has contractually agreed through February 28, 2021, to waive all or a portion of its fee for the Fund (and to reimburse expenses to the extent necessary) in order to limit Fund total operating expenses (excluding Acquired Fund Fees and Expenses) to an annual rate of not more than 1.25% of average daily net assets. This contractual waiver may only be terminated subject to approval by the Board of Trustees of the Trust.

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1 Effective February 28, 2020, the Morningstar U.S. Mid-Cap Index replaced the S&P 500 Total Return Index as the Fund’s performance benchmark because Morningstar U.S. Mid-Cap Index more closely aligns with the Fund’s investment strategy and portfolio composition. 2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

10

 

 

River Oak Discovery Fund

 

   

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

River Oak Discovery Fund (the “Fund”) gained 7.79% for the fiscal year ended October 31, 2020, while the Morningstar U.S. Small-Cap Index fell (1.72%) and the Lipper Small-Cap Core Funds Average lost (7.66%). Over the last ten years, the Fund has gained an average of 7.74% per year.

 

Small-cap stocks have underperformed their large-cap brethren for some time now. Fiscal year 2020 was no different, with a select set of large-cap stocks leading the market higher. However, Oak Associate’s small-cap strategy significantly outperformed its peer group, despite a very challenging environment for high-risk asset classes. Smaller companies tend to be more cyclical and therefore considered higher risk when economic uncertainty increases. The Fund’s focus on companies with a strong niche helped it outperform despite the cloud of uncertainty caused by the Coronavirus.

 

For most of the year, the Coronavirus pandemic overshadowed the investment landscape, fueling uncertainty and prompting a crowding into large-cap growth names. The Fund’s growth focus certainly helped it outperform in 2020, but strong stock selection drove returns despite the preference for blue chip stocks. The Federal Reserves swift action to lower interest rates, along with a broad stimulus package, also helped stabilize equity markets while the healthcare crisis transpired.

 

For the second year in a row, the Fund’s strongest performer was SolarEdge Technologies. The company, which focuses on power optimization for semiconductor chips and solar panels, rose 202%. Power consumption and alternative energy remain strong secular trends. Boston Beer Company, the popular craft brewing company, was the second-best performer, gaining 177%.

 

The Fund’s laggards included Blucora, an online tax preparation and tax compliance company, which fell 54% on concerns over Covid-related weakness for small businesses. Mercer International also weighed on performance. The pulp and paper company lost 45% on concerns over its core business due to the global pandemic and exposure to sales in Europe and China.

 

Looking to 2021, overcoming the Coronavirus pandemic should help broaden equity market participation beyond the large-cap and growth sectors further. A return to economic normalcy will also improve not only earnings power, but visibility as well. Ultimately, the investment environment remains favorable, despite pockets of weakness in service-related industries and above average unemployment. Global policy makers have engineered a low interest rate, low inflation environment, creating a backdrop stocks tend to enjoy.

 

The Fund remains committed to seeking out niche companies with a strong commitment to creation of shareholder value. It also intends to remain squarely focused on small-cap stocks as key growth sectors for the equity market.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

11

Annual Report | October 31, 2020

 

 

River Oak Discovery Fund

Performance Update

 

All data below as of October 31, 2020 (Unaudited)

 

Fund Data

 

Ticker

RIVSX

Share Price

$15.14

Total Net Assets

$14.5M

Portfolio Turnover

48%

 

Sector Allocation^

 

Technology

39.8%

Financials

18.9%

Industrials

13.0%

Consumer Discretionary

12.8%

Health Care

6.9%

Communications

5.3%

Materials

1.5%

Cash & Other Assets

1.8%

 

Top 10 Holdings^

 

1

Cohu, Inc.

4.8%

2

Kulicke & Soffa Industries, Inc.

4.6%

3

Advanced Energy Industries, Inc.

4.0%

4

United Therapeutics Corp.

4.0%

5

Silicon Motion Technology Corp. - ADR

3.6%

6

Ambarella, Inc.

3.5%

7

Kadant, Inc.

3.5%

8

Artisan Partners Asset Management, Inc. - Class A

3.5%

9

Cirrus Logic, Inc.

3.4%

10

Taylor Morrison Home Corp.

3.4%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

River Oak Discovery Fund

7.79%

3.52%

7.05%

7.74%

Morningstar U.S. Small-Cap Index1

(1.72)%

2.03%

6.70%

9.65%

Russell 2000 Growth Total Return Index

13.37%

7.90%

10.36%

11.95%

Lipper Small-Cap Core Funds Average2

(7.66)%

(1.32)%

4.37%

7.88%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2020): 1.60%/1.35%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2020): 1.56%/1.35%

 

The Adviser has contractually agreed through February 28, 2021, to waive all or a portion of its fee for the Fund (and to reimburse expenses to the extent necessary) in order to limit Fund total operating expenses (excluding Acquired Fund Fees and Expenses) to an annual rate of not more than 1.35% of average daily net assets. This contractual tee waiver may only be terminated subject to approval by the Board of Trustees of the Trust.

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1 Effective February 28, 2020, the Morningstar U.S. Small-Cap Index replaced the Russell 2000® Growth Total Return Index as the Fund’s performance benchmark because Morningstar U.S. Small-Cap Index more closely aligns with the Fund’s investment strategy and portfolio composition. 2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

12

 

 

Red Oak Technology Select Fund

 

   

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Red Oak Technology Select Fund (the “Fund”) gained 16.44% for the fiscal year ended October 31, 2020, while the S&P 500 Equal Weight Information Technology Index gained 15.73% and the Lipper Science & Technology Funds Average gained 35.42%. Over the last ten years, the Fund has an average gain of 17.14% per year.

 

Even with all the uncertainty this year, U.S. markets achieved strong absolute returns. The first four months of the fiscal year were pressured by escalating trade tensions between the U.S. and China before progress towards a resolution pushed markets to new highs in February. However, optimistic trade news was quickly pushed aside as the Covid-19 pandemic took center stage and injected significant fear and volatility into the markets. Economies shut down and consumers stayed home. The magnitude of the crisis brought quick action in the form of both monetary and fiscal stimulus easing worries and boosting confidence creating the foundation for the sharp recovery. Through it all, the technology sector remained the market leader due to its secular growth drivers and superior profitability.

 

Over the past several years, we have observed that technology’s continued leadership has consolidated to the point where a few of the largest companies have been doing the heavy lifting of pulling markets higher. Today, the five largest companies (all technology) in the S&P 500 represent over 22% of the index. Extremes such as these can persist but tend not to go on indefinitely as size ultimately becomes an impediment to growth. Attractive long-term growth characteristics will continue to draw investors to technology-oriented companies. We are watching closely for a transition of leadership to relatively smaller players with attractive valuations, in addition to other exciting areas such as Fintech (financial technology) as cashless transactions have benefitted handsomely in this environment.

 

Despite the turmoil of 2020, the current backdrop continues to be supportive of equities overall. Rates are low, there is little to no inflation and large amounts of stimulus have been injected into the system. Further, the Fed has made clear their intention of keeping interest rates low and we will likely see further fiscal stimulus before calendar year end.

 

The Fund’s strongest performer was personal computer, mobile phone and wearables maker Apple, which rose over 75%. Strength was driven by the rollout of new products designed to utilize 5G networks. Amazon was also a winner this year, an obvious beneficiary of consumers shifting even more purchasing online during the pandemic. Large cap technology has continued to benefit as investors gravitate toward its growth and stability which is likely to persist into next year.

 

The Fund’s worst performing stock was digital storage provider Western Digital Corporation. Their business has been significantly impacted by the pandemic due to large cuts in capital spending as business customers preserve cash and their employees work from home. Despite current weakness, Western Digital is well positioned to benefit from the secular shift towards a “big data” economy and the need for mass storage capacity.

 

Going forward, the Fund will continue to pursue blue-chip, technology companies with dominant market positions and favorable shareholder return metrics that are trading at attractive valuations.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

13

Annual Report | October 31, 2020

 

 

Red Oak Technology Select Fund

Performance Update

 

All data below as of October 31, 2020 (Unaudited)

 

Fund Data

 

Ticker

ROGSX

Share Price

$33.97

Total Net Assets

$576.5M

Portfolio Turnover

4%

 

Sector Allocation^

 

Technology

70.0%

Communications

16.4%

Consumer Discretionary

10.8%

Real Estate

2.5%

Cash & Other Assets

0.3%

 

Top 10 Holdings^

 

1

Apple, Inc.

10.1%

2

Alphabet, Inc.

9.9%

3

Amazon.com, Inc.

8.1%

4

Facebook, Inc. - Class A

6.5%

5

Microsoft Corp.

5.5%

6

KLA Corp.

5.2%

7

Xilinx, Inc.

4.1%

8

Intel Corp.

4.1%

9

Oracle Corp.

4.1%

10

Synopsys, Inc.

3.7%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Red Oak Technology Select Fund

16.44%

14.95%

19.29%

17.14%

S&P 500 Equal Weight Information Technology Index1

15.73%

15.13%

19.24%

16.84%

Lipper Science & Technology Funds Average2

35.42%

18.73%

20.03%

15.97%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2020): 0.95%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2020): 0.94%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1 Standard & Poor’s is the source and owner of the S&P Index data. 2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

14

 

 

Black Oak Emerging Technology Fund

 

   

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Black Oak Emerging Technology Fund (the “Fund”) gained 29.48% during the fiscal year ended October 31, 2020, while the S&P 500 Equal Weight Information Technology Index gained 15.73% and the Lipper Science & Technology Funds Average gained 35.42%. Over the last ten years, the Fund has an average gain of 11.51% per year.

 

Although it has been a tumultuous year, investors experienced strong absolute returns. As the fiscal year began, the escalating trade tensions between the U.S. and China continued to hamper technology companies with large exposure to overseas supply chains. Once progress towards a resolution developed, markets pushed to new highs in February. However, optimistic news around trade was quickly pushed aside as the COVID-19 pandemic took center stage and injected significant fear and volatility into the markets. The magnitude of the health care crisis and resulting economic damage was met with significant monetary and fiscal stimulus. The prompt action helped ease worries and boost confidence creating the foundation for a sharp recovery. Through it all, the technology sector remained the market leader due to its secular growth drivers and superior profitability.

 

Technology stocks have come to dominate the largest positions in most popular major indexes. Their continued leadership has consolidated to the point where today, the 5 largest companies (all technology) in the S&P 500, represent over 22% of the index. Extremes such as these can persist but tend not to go on indefinitely as size ultimately becomes an impediment to growth. Attractive long-term growth characteristics will continue to draw investors to technology oriented companies, but we are watching closely for a transition of leadership to relatively smaller players like many of those represented in the Black Oak Emerging Technology Fund.

 

The current macroeconomic backdrop continues to be supportive of equities overall. Interest rates are low and the Fed has made clear their intention to keep rates low for a prolonged period. There is also the prospect of additional stimulus from Washington, once past the current election cycle. The combination of low interest rates, minimal inflation, and governmental stimulus tends to benefit equities.

 

The Fund’s strongest performer was Tesla. The correction in early March gave us an attractive opportunity to start a position in the technology company and maker of high-performance electric vehicles which ultimately rose over 400% from our entry point. SolarEdge, producer of power optimization and monitoring equipment for the solar industry, was also a top performer returning over 202% for the year.

 

The Fund’s worst performing stock was DXC Technology, a provider of information technology solutions such as analytics, cloud and workload, consulting, and security services. A slower than anticipated return to growth was exacerbated by the pandemic. That said, the stock has recovered significantly from March lows as the new CEO’s turnaround plan appears to finally be generating rewards.

 

Going forward, the Fund will continue to seek opportunities within technology companies exposed to emerging niches, with solid earnings prospects, and that are trading at favorable valuations.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

15

Annual Report | October 31, 2020

 

 

Black Oak Emerging Technology Fund

Performance Update

 

All data below as of October 31, 2020 (Unaudited)

 

Fund Data

 

Ticker

BOGSX

Share Price

$6.47

Total Net Assets

$45.5M

Portfolio Turnover

22%

 

Sector Allocation^

 

Technology

69.4%

Communications

10.0%

Energy

8.4%

Consumer Discretionary

5.8%

Health Care

3.0%

Industrials

2.6%

Cash & Other Assets

0.8%

 

Top 10 Holdings^

 

1

SolarEdge Technologies, Inc.

8.4%

2

Apple, Inc.

5.6%

3

Tencent Holdings Ltd. - ADR

5.4%

4

Salesforce.com, Inc.

3.8%

5

Cohu, Inc.

3.4%

6

KLA Corp.

3.3%

7

Diodes, Inc.

3.3%

8

Tesla, Inc.

3.3%

9

Lam Research Corp.

3.2%

10

Facebook, Inc. - Class A

3.2%

 

^    Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Black Oak Emerging Technology Fund

29.48%

15.60%

15.45%

11.51%

S&P 500 Equal Weight Information Technology Index1

15.73%

15.13%

19.24%

16.84%

Lipper Science & Technology Funds Average2

35.42%

18.73%

20.03%

15.97%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2020): 1.18%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2020): 1.12%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1 Standard & Poor’s is the source and owner of the S&P Index data. 2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

16

 

 

Live Oak Health Sciences Fund

 

   

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Live Oak Health Sciences Fund (the “Fund”) gained 0.62% for the fiscal year ended October 31, 2020, while the S&P 500® Health Care Index gained 10.06% and the Lipper Health & Biotechnology Funds Average gained 22.82%. Over the last ten years, the Fund has gained 10.86% per year on average.

 

This year has certainly been eventful, especially within the broader healthcare universe. While concerns over regulatory pricing overhangs abated early in the fiscal year, the sudden emergence of the Covid-19 pandemic, and the economic shut downs that ensued, contributed to unprecedented levels of volatility and uncertainty within the economy and markets. That said, the magnitude of the crisis triggered a swift monetary and fiscal response that poured unparalleled levels of capital into the US economy and its healthcare system, helping both consumers and businesses in addition to kicking off the search for a vaccine.

 

As is typical during severe economic disruptions, resources flow towards the problem in search of a solution. The current pandemic has caused a massive amount of capital investment in the healthcare industry including research, therapeutics and vaccine development. We are already seeing confirmation of these efforts, with several vaccines in late-stage trials proving to be safe and effective. The success of multiple vaccines should not only eliminate the risk of supply constraints, but facilitate an end to the contagion during the first half of 2021. Within the healthcare sector, performance during the year was mixed and depended largely on exposure to specific end markets, rather than individual company execution. The Fund’s underperformance is tied to underexposure to pure play Covid-19 companies, such as telemedicine and experimental anti-virus or vaccine companies. Within these segments, extreme valuations or binary outcomes made them higher risk, but that risk was well rewarded in 2020.

 

The Fund’s best performing stock was Charles Rivers Laboratories, which increased 72%, as demand for outsourcing pre-clinical work within biopharma proved resilient and was unaffected by Covid-19 disruptions. This served as a significant growth driver positively impacting revenues and market share capture. United Therapeutics Corporation was the Fund’s second-best performer. The biotechnology company climbed 49% on better than expected revenue growth and positive data for its Tyvaso drug in the treatment of (PH-ILD) pulmonary hypertension an interstitial lung disease, coupled with prospects for a solid product lineup medium-term.

 

The Fund’s largest laggard was specialty pharma company Eagle Pharmaceuticals, which fell 33% on concerns surrounding generic competition for its leading drug Bendeka and setbacks within their Fulvestrant breast cancer drug. That said, the company possesses a strong balance sheet with a solid pipeline through 2023, which we believe will drive strong shareholder returns long-term.

 

Looking ahead, we expect capital spending within the healthcare sector to intensify creating a solid backdrop for the industry. The Fund continues to favor stable healthcare companies with healthy balance sheets, strong secular tailwinds and earnings prospects at attractive valuations.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

17

Annual Report | October 31, 2020

 

 

Live Oak Health Sciences Fund

Performance Update

 

All data below as of October 31, 2020 (Unaudited)

 

Fund Data

 

Ticker

LOGSX

Share Price

$18.10

Total Net Assets

$44.9M

Portfolio Turnover

33%

 

Sector Allocation^

 

Health Care

99.0%

Cash & Other Assets

1.0%

 

Top 10 Holdings^

 

1

Cigna Corp.

5.6%

2

Charles River Laboratories International, Inc.

5.6%

3

UnitedHealth Group, Inc.

5.3%

4

Amgen, Inc.

4.9%

5

McKesson Corp.

4.7%

6

GlaxoSmithKline PLC - ADR

4.7%

7

Medtronic PLC

4.2%

8

United Therapeutics Corp.

4.1%

9

Biogen, Inc.

3.8%

10

Alcon, Inc.

3.7%

 

^    Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Live Oak Health Sciences Fund

0.62%

3.53%

4.39%

10.86%

S&P 500 Health Care Index1

10.06%

9.99%

9.39%

14.73%

Lipper Health & Biotechnology Funds Average2

22.82%

11.37%

9.26%

15.30%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2020): 1.05%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2020): 1.03%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1 Standard & Poor’s is the source and owner of the S&P Index data. 2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

18

 

 

Important Disclosures

 

 

All data below as of October 31, 2020 (Unaudited)

 

Index Definitions and Disclosures

 

All indices are unmanaged and index performance figures include reinvestment of dividends but do not reflect any fees, expenses or taxes. Investors cannot invest directly in an index.

 

Lipper, a Thomson Reuters Company, is the source and owner of the Lipper Classification data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. Lipper Inc. is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds’ presentation thereof.

 

Lipper Health & Biotechnology Funds – Funds that invest primarily in the equity securities of domestic companies engaged in health care, medicine, and biotechnology.

 

Lipper Large-Cap Core Funds – Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500 Index.

 

Lipper Multi-Cap Core Funds – Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap core funds typically have average characteristics compared to the S&P SuperComposite 1500 Index.

 

Lipper Science & Technology Funds – Funds that invest primarily in the equity securities of domestic companies engaged in science and technology.

 

Lipper Small-Cap Core Funds – Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Small-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SmallCap 600 Index.

 

Oak Associates Funds (the “Funds) are not sponsored, endorsed, sold or promoted by Morningstar, Inc. or any of its affiliates (all such entities, collectively, “Morningstar Entities”). The Morningstar Entities make no representation or warranty, express or implied, to individuals who invest in the Funds or any member of the public regarding the advisability of investing in equity securities generally or in the Funds in particular or the ability of the Funds to track the Morningstar Indices or general equity market performance. THE MORNINGSTAR ENTITIES DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE FUNDS OR ANY DATA INCLUDED THEREIN AND MORNINGSTAR ENTITIES SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. One cannot invest directly in an index

 

Morningstar U.S. Market Index – Measures the performance of US securities and targets 97% market capitalization coverage of the investable universe. It is a diversified broad market index. This Index does not incorporate Environmental, Social, or Governance (ESG) criteria.

 

Morningstar U.S. Mid-Cap Index – Tracks the performance of U.S. mid-cap stocks that fall between 70th and 90th percentile in market capitalization of the investable universe. In aggregate the Mid-Cap Index represents 20 percent of the investable universe.

 

19

Annual Report | October 31, 2020

 

 

Important Disclosures

 

 

All data below as of October 31, 2020 (Unaudited)

 

Morningstar U.S. Small-Cap Index – Measures the performance of U.S. small-cap stocks. These stocks fall between the 90th and 97th percentile in market capitalization of the investable universe. In aggregate, the Small-Cap Index represents 7 percent of the investable universe. This Index does not incorporate Environmental, Social, or Governance (ESG) criteria.

 

NASDAQ is the source and owner of the NASDAQ Index data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. NASDAQ is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds’ presentation thereof.

 

Russell Investments is the source and owner of the Russell Index data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. Russell Investments is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds’ presentation thereof.

 

Russell 2000 Growth Total Return Index – The Russell 2000 Growth Total Return Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

 

Russell 3000 Total Return Index – The Russell 3000 Total Return Index measures the performance of 3,000 publicly held U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

 

Standard & Poor’s is the source and owner of the S&P Index data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. Standard & Poor’s is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds’ presentation thereof.

 

S&P 500 Index – is a commonly-recognized, market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance.

 

S&P 500 Equal Weight Information Technology Index – The S&P 500® Equal Weight Information Technology Index is an unmanaged equal weighted version of the S&P 500® Information Technology Index that consists of the common stocks of the following industries: internet equipment, computers and peripherals, electronic equipment, office electronics and instruments, semiconductor equipment and products, diversified telecommunication services, and wireless telecommunication services that comprise the Information Technology sector of the S&P 500® Index.

 

S&P 500 Health Care Index – The S&P 500® Health Care Index is a capitalization-weighted index that encompasses two main industry groups. The first includes companies who manufacture health care equipment and supplies or provide health care related services, including distributors of health care products, providers of basic health care services, and owners and operators of health care facilities and organizations. The second group consists of companies primarily involved in the research, development, production and marketing of pharmaceuticals and biotechnology products.

 

S&P 500 Total Return Index – The S&P 500® Total Return Index is a commonly recognized, market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance.

 

Investment Definitions

 

Smart beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization based indices. Smart beta emphasizes capturing investment factors of market inefficiencies in a rules-based and transparent way.

 

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20

 

 

Important Disclosures

 

 

All data below as of October 31, 2020 (Unaudited)

 

Correlation is a statistic that measures the degree to which two securities move in relation to each other.

 

The P/E is the ratio for valuing a company that measures its current share price relative to its per share earnings. The price-earnings ratio can be calculated as market value per share divided by earnings per share.

 

Book value of an asset is the value at which the asset is carried on a balance sheet and calculated by taking the cost of an asset minus the accumulated depreciation. Book value is also the net asset value of a company, calculated as total assets minus intangible assets and liabilities.

 

Free cash flow yield is an overall return evaluation ratio of a stock, which standardizes the free cash flow per share a company is expected to earn against its market price per share. The ratio is calculated by taking the free cash flow per share divided by the share price.

 

21

Annual Report | October 31, 2020

 

 

Disclosure of Fund Expenses

 

 

As of October 31, 2020 (Unaudited)

 

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2020 through October 31, 2020.

 

Actual Expenses

 

The first line of the table for each Fund provides information about actual account values and actual expenses. You may use the information in these lines, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

 

Hypothetical Example for Comparison Purposes

 

The second line of the table for each Fund provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

Expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second line of the table for each class is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if transaction costs were included, your costs would have been higher.

 

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22

 

 

Disclosure of Fund Expenses

 

 

As of October 31, 2020 (Unaudited)

 

 

Beginning
Account Value
May 1, 2020

Ending
Account Value
October 31, 2020

Annualized
Expense
Ratio

Expenses
Paid During
Period
(a)

White Oak Select Growth Fund

Actual Return

$1,000.00

$ 1,115.10

0.92%

$4.90

Hypothetical 5% Return

$1,000.00

$ 1,020.50

0.92%

$4.68

Pin Oak Equity Fund

Actual Return

$1,000.00

$ 1,079.30

0.94%

$4.93

Hypothetical 5% Return

$1,000.00

$ 1,020.40

0.94%

$4.79

Rock Oak Core Growth Fund

Actual Return

$1,000.00

$ 1,090.20

1.25%

$6.57

Hypothetical 5% Return

$1,000.00

$ 1,018.85

1.25%

$6.34

River Oak Discovery Fund

Actual Return

$1,000.00

$ 1,170.00

1.35%

$7.36

Hypothetical 5% Return

$1,000.00

$ 1,018.35

1.35%

$6.85

Red Oak Technology Select Fund

Actual Return

$1,000.00

$ 1,131.20

0.93%

$5.00

Hypothetical 5% Return

$1,000.00

$ 1,020.44

0.93%

$4.74

Black Oak Emerging Technology Fund

Actual Return

$1,000.00

$ 1,249.00

1.10%

$6.20

Hypothetical 5% Return

$1,000.00

$ 1,019.62

1.10%

$5.57

Live Oak Health Sciences Fund

Actual Return

$1,000.00

$ 974.70

1.03%

$5.11

Hypothetical 5% Return

$1,000.00

$ 1,019.96

1.03%

$5.22

 

(a)

Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

 

 

23

Annual Report | October 31, 2020

 

 

 

 

Schedule of Investments

White Oak Select Growth Fund

 

As of October 31, 2020

 

 

 

 

Shares

   

Fair
Value

 

COMMON STOCKS — 99.62%

               

COMMUNICATIONS — 17.45%

               

Internet Media & Services — 17.45%

               

Alphabet, Inc. - Class A(a)

    12,680     $ 20,492,275  

Alphabet, Inc. - Class C(a)

    14,695       23,820,742  

Facebook, Inc. - Class A(a)

    63,650       16,746,951  
              61,059,968  

CONSUMER DISCRETIONARY — 19.02%

               

E-Commerce Discretionary — 13.63%

               

Amazon.com, Inc.(a)

    15,705       47,682,736  
                 

Retail - Discretionary — 5.39%

               

Lowe’s Cos., Inc.

    119,390       18,875,559  
                 

CONSUMER STAPLES — 0.70%

               

Beverages — 0.70%

               

PepsiCo, Inc.

    18,465       2,461,200  
                 

FINANCIALS — 13.97%

               

Asset Management — 5.16%

               

Charles Schwab Corp. (The)

    439,100       18,051,401  
                 

Diversified Financial Services — 4.36%

               

JPMorgan Chase & Co.

    155,565       15,251,592  
                 

Institutional Financial Services — 1.04%

               

State Street Corp.

    62,200       3,663,580  
                 

Insurance — 3.41%

               

Chubb Ltd.

    91,890       11,937,430  
                 

HEALTH CARE — 20.66%

               

Biotech & Pharma — 12.10%

               

Amgen, Inc.

    82,460       17,888,873  

Novartis AG - ADR

    160,990       12,570,099  

Pfizer, Inc.

    335,700       11,910,636  
              42,369,608  

Health Care Facilities & Services — 2.73%

               

Laboratory Corp. of America Holdings(a)

    47,770       9,543,013  
                 

 

 

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24

 

 

 

 

White Oak Select Growth Fund

Schedule of Investments

As of October 31, 2020

 

 

 

 

 

Shares

   

Fair
Value

 

Medical Equipment & Devices — 5.83%

               

Alcon, Inc.(a)(b)

    178,972     $ 10,172,768  

Zimmer Biomet Holdings, Inc.

    77,390       10,223,219  
              20,395,987  

REAL ESTATE — 3.03%

               

REIT — 3.03%

               

Digital Realty Trust, Inc.

    73,490       10,604,607  
                 

TECHNOLOGY — 24.79%

               

Communications Equipment — 4.31%

               

QUALCOMM, Inc.

    122,300       15,086,928  
                 

Semiconductors — 10.46%

               

KLA Corp.

    80,425       15,858,202  

Xilinx, Inc.

    174,905       20,759,474  
              36,617,676  

Software — 2.95%

               

Salesforce.com, Inc.(a)

    44,375       10,306,981  
                 

Technology Hardware — 5.03%

               

Cisco Systems, Inc.

    490,000       17,591,000  
                 

Technology Services — 2.04%

               

Cognizant Technology Solutions Corp. - Class A

    100,000       7,142,000  
                 

TOTAL COMMON STOCKS

(Cost $201,061,702)

            348,641,266  

 

 

25

Annual Report | October 31, 2020

 

 

 

 

Schedule of Investments

White Oak Select Growth Fund

 

As of October 31, 2020

 

 

 

 

Shares or
Principal ($)

   

Fair
Value

 

SHORT-TERM INVESTMENTS — 2.23%

               

REPURCHASE AGREEMENTS — 2.21%

               

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 0.03%, dated 10/30/2020 and maturing 11/2/2020, collateralized by U.S. Treasury Securities with rates ranging from 0.38% to 2.00% and maturity dates ranging from 12/24/2020 to 11/15/2026 with a par value of $7,808,581 and a collateral value of $7,906,833

    7,751,757     $ 7,751,757  
                 

COLLATERAL FOR SECURITIES LOANED — 0.02%

               

Mount Vernon Liquid Assets Portfolio, LLC, 0.16%(c)

    58,500       58,500  
                 

TOTAL SHORT-TERM INVESTMENTS

(Cost $7,810,257)

            7,810,257  
                 

TOTAL INVESTMENTS 101.85%

(Cost $208,871,959)

            356,451,523  
                 

Liabilities in Excess of Other Assets — (1.85)%

            (6,468,992 )
                 

NET ASSETS — 100.00%

          $ 349,982,531  

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $56,840.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2020.

 

ADR — American Depositary Receipt.

 

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

 

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26

 

 

Pin Oak Equity Fund

Schedule of Investments

As of October 31, 2020

 

 

 

 

Shares

   

Fair
Value

 

COMMON STOCKS — 98.88%

               

COMMUNICATIONS — 17.88%

               

Internet Media & Services — 17.88%

               

Alphabet, Inc. - Class A(a)

    4,030     $ 6,512,923  

Alphabet, Inc. - Class C(a)

    10,089       16,354,370  

Facebook, Inc. - Class A(a)

    23,900       6,288,329  
              29,155,622  

CONSUMER DISCRETIONARY — 22.19%

               

Automotive — 4.96%

               

Gentex Corp.

    292,500       8,093,475  
                 

E-Commerce Discretionary — 14.22%

               

Amazon.com, Inc.(a)

    5,120       15,545,088  

eBay, Inc.

    160,500       7,644,615  
              23,189,703  

Leisure Facilities & Services — 3.01%

               

DraftKings, Inc. - Class A(a)(b)

    138,555       4,904,847  
                 

FINANCIALS — 11.94%

               

Asset Management — 5.18%

               

Charles Schwab Corp. (The)

    205,351       8,441,980  
                 

Institutional Financial Services — 2.12%

               

Bank of New York Mellon Corp. (The)

    100,745       3,461,598  
                 

Insurance — 4.64%

               

Assurant, Inc.

    38,900       4,837,993  

Everest Re Group Ltd.

    10,600       2,089,048  

Travelers Cos., Inc. (The)

    5,320       642,177  
              7,569,218  

HEALTH CARE — 23.36%

               

Biotech & Pharma — 8.32%

               

Amgen, Inc.

    18,500       4,013,390  

Biogen, Inc.(a)

    7,100       1,789,697  

Gilead Sciences, Inc.

    37,085       2,156,493  

GlaxoSmithKline PLC - ADR

    111,760       3,735,019  

Roche Holding AG - ADR

    47,000       1,879,530  
              13,574,129  

 

27

Annual Report | October 31, 2020

 

 

Schedule of Investments

Pin Oak Equity Fund

 

As of October 31, 2020

 

 

 

Shares

   

Fair
Value

 

Health Care Facilities & Services — 4.43%

               

McKesson Corp.

    36,500     $ 5,383,385  

Quest Diagnostics, Inc.

    15,000       1,832,100  
              7,215,485  

Medical Equipment & Devices — 10.61%

               

Illumina, Inc.(a)

    23,675       6,929,673  

Intuitive Surgical, Inc.(a)

    8,040       5,363,323  

Medtronic PLC

    49,845       5,012,912  
              17,305,908  

TECHNOLOGY — 23.51%

               

Semiconductors — 12.29%

               

KLA Corp.

    52,120       10,277,022  

Xilinx, Inc.

    82,300       9,768,187  
              20,045,209  

Technology Services — 11.22%

               

Amdocs Ltd.

    81,587       4,599,875  

Paychex, Inc.

    43,649       3,590,130  

PayPal Holdings, Inc.(a)

    26,230       4,882,190  

Visa, Inc. - Class A(b)

    28,720       5,218,711  
              18,290,906  

TOTAL COMMON STOCKS

(Cost $104,964,184)

            161,248,080  

 

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28

 

 

Pin Oak Equity Fund

Schedule of Investments

As of October 31, 2020

 

 

 

 

Shares or
Principal ($)

   

Fair
Value

 

SHORT-TERM INVESTMENTS — 7.83%

               

MONEY MARKET FUNDS — 1.23%

               

Fidelity Investments Money Market Government Portfolio - Class I, 0.01%(c)

    2,009,712     $ 2,009,712  
                 

REPURCHASE AGREEMENTS — 1.07%

               

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 0.03%, dated 10/30/2020 and maturing 11/2/2020, collateralized by U.S. Treasury Securities with rates ranging from 0.38% to 2.00% and maturity dates ranging from 12/24/2020 to 11/15/2026 with a par value of $1,755,140 and a collateral value of $1,777,224

    1,742,368       1,742,368  
                 

COLLATERAL FOR SECURITIES LOANED — 5.53%

               

Mount Vernon Liquid Assets Portfolio, LLC, 0.16%(c)

    9,016,489       9,016,489  
                 

TOTAL SHORT-TERM INVESTMENTS

(Cost $12,768,569)

            12,768,569  
                 

TOTAL INVESTMENTS 106.71%

(Cost $117,732,753)

            174,016,649  
                 

Liabilities in Excess of Other Assets — (6.71)%

            (10,942,224 )
                 

NET ASSETS — 100.00%

          $ 163,074,425  

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $8,542,706.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2020.

 

ADR — American Depositary Receipt.

 

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

 

29

Annual Report | October 31, 2020

 

 

Schedule of Investments

Rock Oak Core Growth Fund

 

As of October 31, 2020

 

 

 

Shares

   

Fair
Value

 

COMMON STOCKS — 96.87%

               

COMMUNICATIONS — 3.22%

               

Internet Media & Services — 3.22%

               

iQIYI, Inc. - ADR(a)(b)

    13,155     $ 324,928  
                 

CONSUMER DISCRETIONARY — 21.82%

               

Automotive — 3.50%

               

Gentex Corp.

    12,755       352,931  
                 

Consumer Services — 4.82%

               

TAL Education Group - ADR(a)

    7,315       486,155  
                 

Home Construction — 3.57%

               

PulteGroup, Inc.

    8,820       359,503  
                 

Leisure Facilities & Services — 3.42%

               

DraftKings, Inc. - Class A(a)(b)

    9,745       344,973  
                 

Leisure Products — 2.93%

               

Thor Industries, Inc.

    3,490       295,184  
                 

Wholesale - Discretionary — 3.58%

               

Pool Corp.

    1,030       360,325  
                 

ENERGY — 2.86%

               

Renewable Energy — 2.86%

               

SolarEdge Technologies, Inc.(a)

    1,120       288,613  
                 

FINANCIALS — 5.91%

               

Insurance — 5.91%

               

Assurant, Inc.

    1,830       227,597  

Hartford Financial Services Group, Inc. (The)

    9,565       368,444  
              596,041  

HEALTH CARE — 19.29%

               

Biotech & Pharma — 10.87%

               

Exelixis, Inc.(a)

    14,921       305,582  

Jazz Pharmaceuticals PLC(a)

    3,655       526,685  

Mylan NV(a)(b)

    18,120       263,465  
              1,095,732  

Health Care Facilities & Services — 5.34%

               

Cardinal Health, Inc.

    5,770       264,208  

Quest Diagnostics, Inc.

    2,245       274,205  
              538,413  

 

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30

 

 

Rock Oak Core Growth Fund

Schedule of Investments

As of October 31, 2020

 

 

 

 

Shares

   

Fair
Value

 

Medical Equipment & Devices — 3.08%

               

Illumina, Inc.(a)

    1,060     $ 310,262  
                 

INDUSTRIALS — 8.20%

               

Aerospace & Defense — 2.53%

               

TransDigm Group, Inc.

    535       255,414  
                 

Commercial Support Services — 2.74%

               

Republic Services, Inc.

    3,130       275,972  
                 

Machinery — 2.93%

               

Colfax Corp.(a)

    10,855       295,148  
                 

MATERIALS — 3.06%

               

Construction Materials — 3.06%

               

Carlisle Cos., Inc.

    2,485       307,817  
                 

REAL ESTATE — 3.15%

               

REIT — 3.15%

               

CyrusOne, Inc.(b)

    4,465       317,238  
                 

TECHNOLOGY — 29.36%

               

Semiconductors — 5.87%

               

KLA Corp.

    3,000       591,540  
                 

Software — 2.26%

               

Citrix Systems, Inc.

    2,015       228,239  
                 

Technology Hardware — 14.77%

               

F5 Networks, Inc.(a)

    2,820       374,891  

NetApp, Inc.

    5,805       254,781  

Seagate Technology PLC

    7,998       382,464  

Ubiquiti Networks, Inc.(b)

    2,565       476,090  
              1,488,226  

Technology Services — 6.46%

               

Amdocs Ltd.

    2,475       139,541  

Cognizant Technology Solutions Corp. - Class A

    7,160       511,367  
              650,908  

TOTAL COMMON STOCKS

(Cost $8,222,552)

            9,763,562  
                 

 

31

Annual Report | October 31, 2020

 

 

Schedule of Investments

Rock Oak Core Growth Fund

 

As of October 31, 2020

 

 

 

Shares

   

Fair
Value

 

SHORT-TERM INVESTMENTS — 22.20%

               

MONEY MARKET FUNDS — 5.15%

               

Fidelity Investments Money Market Government Portfolio - Class I, 0.01% (c)

    519,127     $ 519,127  
                 

COLLATERAL FOR SECURITIES LOANED — 17.05%

               

Mount Vernon Liquid Assets Portfolio, LLC, 0.16%(c)

    1,717,884       1,717,884  
                 

TOTAL SHORT-TERM INVESTMENTS

(Cost $2,237,011)

            2,237,011  
                 

TOTAL INVESTMENTS 119.07%

(Cost $10,459,563)

            12,000,573  
                 

Liabilities in Excess of Other Assets (19.07)%

            (1,922,088 )
                 

NET ASSETS — 100.00%

          $ 10,078,485  

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $1,651,664.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2020.

 

ADR — American Depositary Receipt.

 

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

 

1-888-462-5386 | www.oakfunds.com

32

 

 

River Oak Discovery Fund

Schedule of Investments

As of October 31, 2020

 

 

 

 

Shares

   

Fair
Value

 

COMMON STOCKS — 98.18%

               

COMMUNICATIONS — 5.29%

               

Advertising & Marketing — 1.97%

               

QuinStreet, Inc.(a)

    17,875     $ 286,089  
                 

Internet Media & Services — 3.32%

               

Eventbrite, Inc. - Class A(a)(b)

    52,160       481,437  
                 

CONSUMER DISCRETIONARY — 12.77%

               

Consumer Services — 6.10%

               

Adtalem Global Education, Inc.(a)

    19,770       463,409  

American Public Education, Inc.(a)

    14,920       421,788  
              885,197  

Home Construction — 6.67%

               

M/I Homes, Inc.(a)

    11,710       479,174  

Taylor Morrison Home Corp.(a)

    22,580       487,728  
              966,902  

FINANCIALS — 18.94%

               

Asset Management — 9.58%

               

AllianceBernstein Holding LP

    15,900       462,054  

Artisan Partners Asset Management, Inc. - Class A

    12,620       505,557  

Hamilton Lane, Inc. - Class A

    6,050       421,685  
              1,389,296  

Banking — 1.91%

               

Dime Community Bancshares, Inc.

    21,870       276,656  
                 

Insurance — 4.26%

               

CNO Financial Group, Inc.(b)

    17,345       307,874  

Selective Insurance Group, Inc.

    5,960       310,277  
              618,151  

Specialty Finance — 3.19%

               

Aaron’s Holdings Co., Inc.

    8,850       462,501  
                 

HEALTH CARE — 6.87%

               

Biotech & Pharma — 3.96%

               

United Therapeutics Corp.(a)

    4,275       573,833  
                 

Health Care Facilities & Services — 2.91%

               

Magellan Health, Inc.(a)

    5,850       422,780  
                 

 

33

Annual Report | October 31, 2020

 

 

Schedule of Investments

River Oak Discovery Fund

 

As of October 31, 2020

 

 

 

Shares

   

Fair
Value

 

INDUSTRIALS — 12.95%

               

Commercial Support Services — 2.49%

               

Barrett Business Services, Inc.

    6,101     $ 361,484  
                 

Electrical Equipment — 3.99%

               

Advanced Energy Industries, Inc.(a)

    8,575       578,555  
                 

Machinery — 6.47%

               

Hollysys Automation Technologies Ltd.

    38,430       430,032  

Kadant, Inc.

    4,410       507,679  
              937,711  

MATERIALS — 1.52%

               

Forestry, Paper & Wood Products — 1.52%

               

Mercer International, Inc.

    35,145       221,062  
                 

TECHNOLOGY — 39.84%

               

Semiconductors — 22.59%

               

Ambarella, Inc.(a)

    9,360       511,711  

Cirrus Logic, Inc.(a)

    7,195       495,520  

Cohu, Inc.

    31,964       694,578  

Diodes, Inc.(a)

    6,870       397,292  

Kulicke & Soffa Industries, Inc.

    25,285       660,950  

Silicon Motion Technology Corp. - ADR

    13,665       515,717  
              3,275,768  

Software — 11.20%

               

FireEye, Inc.(a)(b)

    24,590       340,326  

NextGen Healthcare, Inc.(a)

    33,665       457,844  

Verint Systems, Inc.(a)

    7,760       376,515  

Workiva, Inc.(a)

    8,120       449,117  
              1,623,802  

Technology Services — 6.05%

               

LiveRamp Holdings, Inc.(a)

    4,710       311,284  

Perficient, Inc.(a)

    8,630       337,951  

Perspecta, Inc.

    12,690       227,531  
              876,766  

TOTAL COMMON STOCKS

(Cost $12,874,303)

            14,237,990  

 

1-888-462-5386 | www.oakfunds.com

34

 

 

River Oak Discovery Fund

Schedule of Investments

As of October 31, 2020

 

 

 

 

Shares or
Principal ($)

   

Fair
Value

 

SHORT-TERM INVESTMENTS — 9.45%

               

REPURCHASE AGREEMENTS — 0.83%

               

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 0.03%, dated 10/30/2020 and maturing 11/2/2020, collateralized by U.S. Treasury Securities with rates ranging from 0.38% to 2.00% and maturity dates ranging from 12/24/2020 to 11/15/2026 with a par value of $120,567 and a collateral value of $122,085

    119,690     $ 119,690  
                 

COLLATERAL FOR SECURITIES LOANED — 8.28%

               

Mount Vernon Liquid Assets Portfolio, LLC, 0.16%(c)

    1,201,162       1,201,162  
                 

TOTAL SHORT-TERM INVESTMENTS

(Cost $1,320,852)

            1,320,852  
                 

TOTAL INVESTMENTS 107.29%

(Cost $14,195,156)

            15,558,842  
                 

Liabilities in Excess of Other Assets (7.29)%

            (1,058,126 )
                 

NET ASSETS — 100.00%

          $ 14,500,716  

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $1,117,797.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2020.

 

ADR — American Depositary Receipt.

 

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

 

35

Annual Report | October 31, 2020

 

 

Schedule of Investments

Red Oak Technology Select Fund

 

As of October 31, 2020

 

 

 

Shares

   

Fair
Value

 

COMMON STOCKS — 99.69%

               

COMMUNICATIONS — 16.44%

               

Internet Media & Services — 16.44%

               

Alphabet, Inc. - Class A(a)

    17,630     $ 28,492,019  

Alphabet, Inc. - Class C(a)

    17,636       28,588,132  

Facebook, Inc. - Class A(a)

    143,225       37,683,930  
              94,764,081  

CONSUMER DISCRETIONARY — 10.79%

               

E-Commerce Discretionary — 10.79%

               

Amazon.com, Inc.(a)

    15,400       46,756,710  

eBay, Inc.

    324,030       15,433,549  
              62,190,259  

REAL ESTATE — 2.52%

               

REIT — 2.52%

               

Digital Realty Trust, Inc.

    100,770       14,541,111  
                 

TECHNOLOGY — 69.94%

               

Semiconductors — 22.97%

               

Intel Corp.

    537,450       23,798,286  

KLA Corp.

    152,400       30,050,232  

NXP Semiconductors NV

    113,550       15,342,876  

QUALCOMM, Inc.

    153,200       18,898,752  

Skyworks Solutions, Inc.

    145,135       20,506,124  

Xilinx, Inc.

    200,585       23,807,434  
              132,403,704  

Software — 23.14%

               

Akamai Technologies, Inc.(a)

    136,780       13,010,514  

Check Point Software Technologies Ltd.(a)

    99,700       11,321,932  

Citrix Systems, Inc.

    129,280       14,643,545  

Microsoft Corp.

    157,970       31,984,186  

Oracle Corp.

    423,601       23,768,252  

Synopsys, Inc.(a)

    99,295       21,235,229  

VMware, Inc. - Class A(a)(b)

    135,470       17,439,053  
              133,402,711  

Technology Hardware — 16.97%

               

Apple, Inc.

    534,880       58,227,037  

Cisco Systems, Inc.

    576,180       20,684,862  

HP, Inc.

    462,970       8,314,941  

NetApp, Inc.

    240,690       10,563,884  
              97,790,724  

 

1-888-462-5386 | www.oakfunds.com

36

 

 

Red Oak Technology Select Fund

Schedule of Investments

As of October 31, 2020

 

 

 

 

Shares or
Principal ($)

   

Fair
Value

 

Technology Services — 6.86%

               

Accenture PLC - Class A

    47,580     $ 10,320,578  

Global Payments, Inc.

    93,157       14,694,585  

Visa, Inc. - Class A

    80,000       14,536,800  
              39,551,963  

TOTAL COMMON STOCKS

(Cost $284,152,546)

            574,644,553  
                 

SHORT-TERM INVESTMENTS — 3.51%

               

REPURCHASE AGREEMENTS — 0.43%

               

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 0.03%, dated 10/30/2020 and maturing 11/2/2020, collateralized by U.S. Treasury Securities with rates ranging from 0.38% to 2.00% and maturity dates ranging from 12/24/2020 to 11/15/2026 with a par value of $2,497,238 and a collateral value of $2,528,660

    2,479,065       2,479,065  
                 

COLLATERAL FOR SECURITIES LOANED — 3.08%

               

Mount Vernon Liquid Assets Portfolio, LLC, 0.16%(c)

    17,770,238       17,770,238  
                 

TOTAL SHORT-TERM INVESTMENTS

(Cost $20,249,303)

            20,249,303  
                 

TOTAL INVESTMENTS 103.20%

(Cost $304,401,849)

            594,893,856  
                 

Liabilities in Excess of Other Assets (3.20)%

            (18,421,087 )
                 

NET ASSETS — 100.00%

          $ 576,472,769  

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $17,264,624.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2020.

 

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

 

37

Annual Report | October 31, 2020

 

 

Schedule of Investments

Black Oak Emerging Technology Fund

 

As of October 31, 2020

 

 

 

Shares

   

Fair
Value

 

COMMON STOCKS — 99.25%

               

COMMUNICATIONS — 10.02%

               

Internet Media & Services — 10.02%

               

Facebook, Inc. - Class A(a)

    5,525     $ 1,453,683  

iQIYI, Inc. - ADR(a)(b)

    26,150       645,905  

Tencent Holdings Ltd. - ADR

    32,245       2,461,583  
              4,561,171  

CONSUMER DISCRETIONARY — 5.83%

               

Automotive — 3.26%

               

Tesla, Inc.(a)

    3,825       1,484,253  
                 

Leisure Facilities & Services — 2.57%

               

DraftKings, Inc. - Class A(a)(b)

    33,140       1,173,156  
                 

ENERGY — 8.35%

               

Renewable Energy — 8.35%

               

SolarEdge Technologies, Inc.(a)

    14,765       3,804,793  
                 

HEALTH CARE — 2.98%

               

Medical Equipment & Devices — 2.98%

               

Illumina, Inc.(a)

    4,635       1,356,665  
                 

INDUSTRIALS — 2.60%

               

Electrical Equipment — 2.60%

               

Advanced Energy Industries, Inc.(a)(b)

    17,560       1,184,773  
                 

TECHNOLOGY — 69.47%

               

Information Technology — 2.94%

               

Paylocity Holdings Corp.(a)

    7,220       1,339,455  
                 

Semiconductors — 26.45%

               

Ambarella, Inc.(a)

    22,000       1,202,740  

Cirrus Logic, Inc.(a)

    20,830       1,434,562  

Cohu, Inc.(b)

    70,552       1,533,095  

Diodes, Inc.(a)

    25,770       1,490,279  

KLA Corp.

    7,590       1,496,596  

Kulicke & Soffa Industries, Inc.(b)

    49,645       1,297,720  

Lam Research Corp.

    4,285       1,465,813  

QUALCOMM, Inc.

    10,844       1,337,716  

Silicon Motion Technology Corp. - ADR

    20,940       790,276  
              12,048,797  
                 

 

1-888-462-5386 | www.oakfunds.com

38

 

 

Black Oak Emerging Technology Fund

Schedule of Investments

As of October 31, 2020

 

 

 

 

Shares

   

Fair
Value

 

Software — 16.28%

               

Citrix Systems, Inc.

    12,595     $ 1,426,636  

Fortinet, Inc.(a)

    11,090       1,224,003  

NextGen Healthcare, Inc.(a)

    88,315       1,201,084  

Palo Alto Networks, Inc.(a)

    5,100       1,128,069  

Salesforce.com, Inc.(a)

    7,480       1,737,380  

Verint Systems, Inc.(a)(b)

    14,335       695,534  
              7,412,706  

Technology Hardware — 12.21%

               

Apple, Inc.

    23,520       2,560,387  

F5 Networks, Inc.(a)

    7,705       1,024,303  

SYNNEX Corp.

    6,380       839,863  

Ubiquiti Networks, Inc.(b)

    6,120       1,135,933  
              5,560,486  

Technology Services — 11.59%

               

Cognizant Technology Solutions Corp. - Class A

    9,600       685,632  

Jack Henry & Associates, Inc.

    8,120       1,203,790  

PayPal Holdings, Inc.(a)

    7,250       1,349,442  

Perficient, Inc.(a)

    31,260       1,224,142  

Science Applications International Corp.

    10,665       814,486  
              5,277,492  

TOTAL COMMON STOCKS

(Cost $23,863,470)

            45,203,747  
                 

 

39

Annual Report | October 31, 2020

 

 

Schedule of Investments

Black Oak Emerging Technology Fund

 

As of October 31, 2020

 

 

 

Shares

   

Fair
Value

 

SHORT-TERM INVESTMENTS — 13.59%

               

MONEY MARKET FUNDS — 1.82%

               

Fidelity Investments Money Market Government Portfolio - Class I, 0.01% (c)

    827,982     $ 827,982  
                 

COLLATERAL FOR SECURITIES LOANED — 11.77%

               

Mount Vernon Liquid Assets Portfolio, LLC, 0.16%(c)

    5,362,048       5,362,048  
                 

TOTAL SHORT-TERM INVESTMENTS

(Cost $6,190,030)

            6,190,030  
                 

TOTAL INVESTMENTS 112.84%

(Cost $30,053,500)

            51,393,777  
                 

Liabilities in Excess of Other Assets (12.84)%

            (5,849,497 )
                 

NET ASSETS — 100.00%

          $ 45,544,280  

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $5,186,788.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2020.

 

ADR — American Depositary Receipt.

 

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

 

1-888-462-5386 | www.oakfunds.com

40

 

 

Live Oak Health Sciences Fund

Schedule of Investments

As of October 31, 2020

 

 

 

 

Shares

   

Fair
Value

 

COMMON STOCKS — 98.97%

               

HEALTH CARE — 98.97%

               

Biotech — 23.71%

               

Alexion Pharmaceuticals, Inc.(a)

    10,610     $ 1,221,635  

Amgen, Inc.

    10,240       2,221,466  

Biogen, Inc.(a)

    6,850       1,726,680  

Exelixis, Inc.(a)

    66,265       1,357,107  

Regeneron Pharmaceuticals, Inc.(a)

    2,550       1,386,078  

United Therapeutics Corp.(a)

    13,650       1,832,239  

Vertex Pharmaceuticals, Inc.(a)

    4,315       899,073  
              10,644,278  

Health Care Services — 8.46%

               

Charles River Laboratories International, Inc.(a)

    11,015       2,508,115  

Quest Diagnostics, Inc.

    10,545       1,287,966  
              3,796,081  

Health Care Supply Chain — 12.08%

               

Cardinal Health, Inc.

    17,409       797,158  

Cigna Corp.

    15,148       2,529,262  

McKesson Corp.

    14,206       2,095,243  
              5,421,663  

Large Pharma — 22.76%

               

Bristol-Myers Squibb Co.(a)

    24,315       79,267  

GlaxoSmithKline PLC - ADR

    62,505       2,088,917  

Johnson & Johnson

    7,688       1,054,102  

Merck & Co., Inc.

    18,800       1,413,948  

Novartis AG - ADR(b)

    14,600       1,139,968  

Novo Nordisk A/S - ADR

    25,330       1,618,334  

Pfizer, Inc.

    37,370       1,325,888  

Sanofi - ADR(b)

    33,002       1,494,991  
              10,215,415  

Life Science & Diagnostics — 3.28%

               

Illumina, Inc.(a)

    5,035       1,473,745  
                 

Managed Care — 8.59%

               

Anthem, Inc.

    5,415       1,477,212  

UnitedHealth Group, Inc.

    7,800       2,380,092  
              3,857,304  

Medical Devices — 10.46%

               

Medtronic PLC

    18,746       1,885,285  

Stryker Corp.

    7,060       1,426,191  

Zimmer Biomet Holdings, Inc.

    10,460       1,381,766  
              4,693,242  

 

41

Annual Report | October 31, 2020

 

 

Schedule of Investments

Live Oak Health Sciences Fund

 

As of October 31, 2020

 

 

 

Shares or
Principal ($)

   

Fair
Value

 

Medical Equipment — 6.65%

               

Alcon, Inc.(a)

    28,995     $ 1,648,076  

Intuitive Surgical, Inc.(a)

    2,005       1,337,495  
              2,985,571  

Specialty & Generic Pharma — 2.98%

               

Jazz Pharmaceuticals PLC(a)

    9,295       1,339,409  
                 

TOTAL COMMON STOCKS

(Cost $33,571,468)

            44,426,708  
                 

SHORT-TERM INVESTMENTS — 13.78%

               

REPURCHASE AGREEMENTS — 9.32%

               

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 0.03%, dated 10/30/2020 and maturing 11/2/2020, collateralized by U.S. Treasury Securities with rates ranging from 0.38% to 2.00% and maturity dates ranging from 12/24/2020 to 11/15/2026 with a par value of $4,212,373 and a collateral value of $4,265,376

    4,181,719       4,181,719  
                 

COLLATERAL FOR SECURITIES LOANED — 4.46%

               

Mount Vernon Liquid Assets Portfolio, LLC, 0.16%(c)

    2,002,773       2,002,773  
                 

TOTAL SHORT-TERM INVESTMENTS

(Cost $6,184,492)

            6,184,492  
                 

TOTAL INVESTMENTS 112.75%

(Cost $39,755,960)

            50,611,200  
                 

Liabilities in Excess of Other Assets (12.75)%

            (5,722,632 )
                 

NET ASSETS — 100.00%

          $ 44,888,568  

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $1,956,698.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2020.

 

ADR — American Depositary Receipt.

 

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

 

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42

 

 

Statements of Assets & Liabilities

 

 

October 31, 2020

 

 

 

White Oak Select
Growth Fund

   

Pin Oak
Equity Fund

 

ASSETS

               

Investment securities at value (cost, $208,871,959, $117,732,753, $10,459,563, $14,195,156, $304,401,849, $30,053,500 and $39,755,960), including, $56,840, $8,542,706, $1,651,664, $1,117,797, $17,264,624, $5,186,788 and $1,956,698 of securities on loan

  $ 356,451,523     $ 174,016,649  

Cash

    15,300        

Receivable for fund shares sold

    5,535       4,146  

Receivable for investments sold

    3,350,531        

Dividends and interest receivable

    71,657       58,304  

Tax reclaims receivable

           

Prepaid expenses

    19,316       12,928  

Total Assets

    359,913,862       174,092,027  
                 

LIABILITIES

               

Payable for fund shares redeemed

    34,978       383,816  

Payable for investments purchased

    9,500,683       1,440,065  

Payable for collateral upon return of securities loaned

    58,500       9,016,489  

Investment advisory fees payable

    226,337       107,116  

Administration fees payable

    12,613       7,039  

Transfer agent fees payable

    6,253       3,368  

Trustee fees payable

    286       448  

Other accrued expenses

    91,681       59,261  

Total Liabilities

    9,931,331       11,017,602  

NET ASSETS

  $ 349,982,531     $ 163,074,425  
                 

Net Assets consist of:

               

Paid-in capital (unlimited authorization - no par value)

  $ 192,407,459     $ 98,567,266  

Accumulated earnings

    157,575,072       64,507,159  

Net Assets

  $ 349,982,531     $ 163,074,425  
                 

Total shares outstanding at end of year

    3,264,382       2,298,981  
                 

Net asset value, offering and redemption price per share (net assets/shares outstanding)

  $ 107.21     $ 70.93  

 

 

43

Annual Report | October 31, 2020

 

 

 

 

 

 

 

 

Rock Oak Core
Growth Fund

   

River Oak
Discovery Fund

   

Red Oak
Technology Select
Fund

   

Black Oak
Emerging
Technology Fund

   

Live Oak Health
Sciences Fund

 
                                       
  $ 12,000,573     $ 15,558,842     $ 594,893,856     $ 51,393,777     $ 50,611,200  
                             
    38       2,000       211,219       619       266  
    1,178,283       1,195,347             367,883        
    5       16,574       41,891       7       17,593  
                            6,695  
    1,931       9,214       37,217       3,677       12,075  
    13,180,830       16,781,977       595,184,183       51,765,963       50,647,829  
                                       
                                       
                359,525       59,576       21,740  
    1,359,929       1,051,491             739,572       3,675,673  
    1,717,884       1,201,162       17,770,238       5,362,048       2,002,773  
    3,996       9,150       385,595       29,932       29,662  
    343       287       23,795       1,354       1,629  
    1,312       1,300       5,176       2,794       1,816  
                1,182              
    18,881       17,871       165,903       26,407       25,968  
    3,102,345       2,281,261       18,711,414       6,221,683       5,759,261  
  $ 10,078,485     $ 14,500,716     $ 576,472,769     $ 45,544,280     $ 44,888,568  
                                       
                                       
  $ 6,836,385     $ 10,600,938     $ 258,012,601     $ 20,941,480     $ 31,297,590  
    3,242,100       3,899,778       318,460,168       24,602,800       13,590,978  
  $ 10,078,485     $ 14,500,716     $ 576,472,769     $ 45,544,280     $ 44,888,568  
                                       
    599,956       957,845       16,968,066       7,043,992       2,479,635  
                                       
  $ 16.80     $ 15.14     $ 33.97     $ 6.47     $ 18.10  

 

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

 

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44

 

 

Statements of Operations

 

 

For the Year Ended October 31, 2020

 

 

 

White Oak Select
Growth Fund

   

Pin Oak
Equity Fund

 

INVESTMENT INCOME

               

Dividends

  $ 5,824,270     $ 3,600,580  

Securities lending income

    57,084       52,367  

Interest

    6,954       10,356  

Less: Foreign withholding tax

    (173,962 )     (107,108 )

Total Investment Income

    5,714,346       3,556,195  
                 

EXPENSES

               

Investment adviser

    2,549,408       1,430,908  

Administration

    150,788       85,537  

Sub transfer agent

    133,866       101,934  

Transfer agent

    75,523       40,956  

Legal

    68,548       34,877  

Trustee

    55,568       30,985  

Registration

    42,593       24,460  

Report printing

    29,256       19,744  

Insurance

    21,352       14,469  

Audit

    16,000       16,000  

Custodian

    14,093       9,532  

Pricing

    1,340       1,397  

Miscellaneous

    51,112       31,248  

Total Expenses

    3,209,447       1,842,047  

Less: Investment advisory fees waived

           

Net Expenses

    3,209,447       1,842,047  

Net Investment Income (Loss)

    2,504,899       1,714,148  
                 

Realized and Unrealized Gain (Loss) on Investments

               

Net realized gain on investment securities transactions

    9,346,902       8,768,143  

Net change in unrealized appreciation (depreciation) of investment securities

    26,200,706       (13,435,080 )

Net Realized and Unrealized Gain (Loss) on Investments

    35,547,608       (4,666,937 )

Net Increase (Decrease) in Net Assets from Operations

  $ 38,052,507     $ (2,952,789 )

 

 

45

Annual Report | October 31, 2020

 

 

 

 

 

 

 

 

Rock Oak Core
Growth Fund

   

River Oak
Discovery Fund

   

Red Oak
Technology Select
Fund

   

Black Oak
Emerging
Technology Fund

   

Live Oak Health
Sciences Fund

 
                                       
  $ 146,776     $ 92,128     $ 8,061,644     $ 292,285     $ 938,554  
    4,457       2,961       123,889       14,732       13,956  
    699       39,413       26,008       2,848       2,931  
    (370 )     (101 )     (26,674 )     (1,331 )     (44,988 )
    151,562       134,401       8,184,867       308,534       910,453  
                                       
                                       
    77,574       111,700       4,521,181       295,516       366,551  
    4,550       5,176       269,092       17,109       21,655  
    2,776       750       414,744       12,663       15,487  
    15,805       15,727       62,992       33,682       21,905  
    1,967       2,291       121,494       8,069       9,342  
    2,529       2,725       97,741       7,035       8,732  
    24,177       21,395       34,380       24,776       19,667  
    3,503       3,473       62,026       5,713       6,035  
    623       727       38,161       1,993       2,858  
    16,000       16,000       16,000       16,000       16,000  
    1,087       817       29,513       2,085       2,523  
    588       693       875       433       652  
    13,714       12,721       57,589       20,679       17,149  
    164,893       194,195       5,725,788       445,753       508,556  
    (33,986 )     (26,640 )                  
    130,907       167,555       5,725,788       445,753       508,556  
    20,655       (33,154 )     2,459,079       (137,219 )     401,897  
                                       
                                       
    1,828,766       2,601,564       32,667,314       3,732,335       3,642,306  
    (1,448,025 )     (1,678,299 )     48,769,663       6,523,676       (3,516,639 )
    380,741       923,265       81,436,977       10,256,011       125,667  
  $ 401,396     $ 890,111     $ 83,896,056     $ 10,118,792     $ 527,564  

 

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

 

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46

 

 

Statements of Changes in Net Assets

 

 

   

White Oak
Select
Growth Fund

 

 

 

For the
Year Ended
October 31,
2020

   

For the
Year Ended
October 31,
2019

 

INVESTMENT ACTIVITIES

               

Net investment income

  $ 2,504,899     $ 3,495,576  

Net realized gain on investment securities transactions and foreign currency translations

    9,346,902       3,166,384  

Net change in unrealized appreciation (depreciation) of investments securities

    26,200,706       28,579,467  

Net Increase (Decrease) in Net Assets Resulting from Operations

    38,052,507       35,241,427  
                 

DISTRIBUTIONS TO SHAREHOLDERS FROM

       

Earnings

    (6,540,759 )     (4,188,988 )

Total Distributions

    (6,540,759 )     (4,188,988 )
                 

CAPITAL TRANSACTIONS

               

Proceeds from shares sold

    11,810,650       58,843,230  

Reinvestment of distributions

    6,253,692       3,998,961  

Amount paid for shares redeemed

    (55,599,534 )     (55,926,084 )

Net Increase (Decrease) in Net Assets Resulting from Capital Transactions

    (37,535,192 )     6,916,107  
                 

Total Increase (Decrease) in Net Assets

    (6,023,444 )     37,968,546  
                 

NET ASSETS

               

Beginning of year

    356,005,975       318,037,429  

End of year

  $ 349,982,531     $ 356,005,975  
                 

SHARE TRANSACTIONS

               

Shares sold

    118,214       637,293  

Shares issued in reinvestment of distributions

    60,733       45,232  

Shares redeemed

    (555,131 )     (593,534 )

Net Increase (Decrease) in Shares Outstanding

    (376,184 )     88,991  

 

47

Annual Report | October 31, 2020

 

 

 

 

 

Pin Oak
Equity Fund

   

Rock Oak Core
Growth Fund

 
 

For the
Year Ended
October 31,
2020

   

For the
Year Ended
October 31,
2019

   

For the
Year Ended
October 31,
2020

   

For the
Year Ended
October 31,
2019

 
                               
  $ 1,714,148     $ 2,943,411     $ 20,655     $ 45,035  
    8,768,143       4,688,656       1,828,766       330,157  
    (13,435,080 )     21,104,275       (1,448,025 )     (762,987 )
    (2,952,789 )     28,736,342       401,396       (387,795 )
                               
                               
    (7,546,924 )     (6,691,879 )     (369,846 )     (103,071 )
    (7,546,924 )     (6,691,879 )     (369,846 )     (103,071 )
                               
                               
    11,743,734       30,974,664       203,391       1,345,884  
    7,126,191       6,371,008       331,685       95,503  
    (80,436,516 )     (85,108,858 )     (2,386,902 )     (9,417,225 )
    (61,566,591 )     (47,763,186 )     (1,851,826 )     (7,975,838 )
                               
    (72,066,304 )     (25,718,723 )     (1,820,276 )     (8,466,704 )
                               
                               
    235,140,729       260,859,452       11,898,761       20,365,465  
  $ 163,074,425     $ 235,140,729     $ 10,078,485     $ 11,898,761  
                               
                               
    171,243       457,122       12,068       79,826  
    95,359       101,256       18,803       5,906  
    (1,204,924 )     (1,262,577 )     (143,446 )     (569,575 )
    (938,322 )     (704,199 )     (112,575 )     (483,843 )

 

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

 

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48

 

 

Statements of Changes in Net Assets

 

 

   

River Oak
Discovery Fund

 

 

 

For the
Year Ended
October 31,
2020

   

For the
Year Ended
October 31,
2019

 

INVESTMENT ACTIVITIES

               

Net investment income (loss)

  $ (33,154 )   $ 14,498  

Net realized gain on investment securities transactions and foreign currency translations

    2,601,564       501,402  

Net change in unrealized appreciation (depreciation) of investments securities

    (1,678,299 )     254,840  

Net Increase in Net Assets Resulting from Operations

    890,111       770,740  
                 

DISTRIBUTIONS TO SHAREHOLDERS FROM

       

Earnings

    (499,422 )     (1,745,948 )

Total Distributions

    (499,422 )     (1,745,948 )
                 

CAPITAL TRANSACTIONS

               

Proceeds from shares sold

    2,038,824       135,650  

Reinvestment of distributions

    328,169       1,130,324  

Amount paid for shares redeemed

    (774,773 )     (723,072 )

Net Increase (Decrease) in Net Assets Resulting from Capital Transactions

    1,592,220       542,902  
                 

Total Increase (Decrease) in Net Assets

    1,982,909       (432,306 )
                 

NET ASSETS

               

Beginning of year

    12,517,807       12,950,113  

End of year

  $ 14,500,716     $ 12,517,807  
                 

SHARE TRANSACTIONS

               

Shares sold

    134,021       9,669  

Shares issued in reinvestment of distributions

    21,104       86,153  

Shares redeemed

    (55,990 )     (52,551 )

Net Increase (Decrease) in Shares Outstanding

    99,135       43,271  

 

49

Annual Report | October 31, 2020

 

 

 

 

 

Red Oak
Technology
Select Fund

   

Black Oak
Emerging
Technology
Fund

 
 

For the
Year Ended
October 31,
2020

   

For the
Year Ended
October 31,
2019

   

For the
Year Ended
October 31,
2020

   

For the
Year Ended
October 31,
2019

 
                               
  $ 2,459,079     $ 5,794,043     $ (137,219 )   $ (2,257 )
    32,667,314       13,970,532       3,732,335       2,132,465  
    48,769,663       73,798,958       6,523,676       1,302,290  
    83,896,056       93,563,533       10,118,792       3,432,498  
                               
                               
    (17,483,737 )     (25,436,992 )     (2,132,576 )     (3,465,522 )
    (17,483,737 )     (25,436,992 )     (2,132,576 )     (3,465,522 )
                               
                               
    108,000,225       171,425,655       5,029,860       1,033,772  
    16,780,845       24,433,832       1,917,928       3,078,344  
    (251,679,737 )     (171,230,234 )     (5,629,709 )     (4,592,033 )
    (126,898,667 )     24,629,253       1,318,079       (479,917 )
                               
    (60,486,348 )     92,755,794       9,304,295       (512,941 )
                               
                               
    636,959,117       544,203,323       36,239,985       36,752,926  
  $ 576,472,769     $ 636,959,117     $ 45,544,280     $ 36,239,985  
                               
                               
    3,491,610       6,308,774       861,284       212,367  
    536,815       975,538       338,259       669,205  
    (8,326,122 )     (6,252,590 )     (1,027,895 )     (938,796 )
    (4,297,697 )     1,031,722       171,648       (57,224 )

 

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

 

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50

 

 

Statements of Changes in Net Assets

 

 

   

Live Oak
Health Sciences Fund

 

 

 

For the
Year Ended
October 31,
2020

   

For the
Year Ended
October 31,
2019

 

INVESTMENT ACTIVITIES

               

Net investment income

  $ 401,897     $ 462,416  

Net realized gain (loss) on investment securities transactions and foreign currency translations

    3,642,306       (461,831 )

Net change in unrealized appreciation (depreciation) of investments securities

    (3,516,639 )     532,564  

Net Increase in Net Assets Resulting from Operations

    527,564       533,149  
                 

DISTRIBUTIONS TO SHAREHOLDERS FROM

               

Earnings

    (446,446 )     (8,114,847 )

Total Distributions

    (446,446 )     (8,114,847 )
                 

CAPITAL TRANSACTIONS

               

Proceeds from shares sold

    1,566,604       2,208,579  

Reinvestment of distributions

    415,073       7,537,113  

Amount paid for shares redeemed

    (8,753,352 )     (16,302,327 )

Net Decrease in Net Assets Resulting from Capital Transactions

    (6,771,675 )     (6,556,635 )
                 

Total Decrease in Net Assets

    (6,690,557 )     (14,138,333 )
                 

NET ASSETS

               

Beginning of year

    51,579,125       65,717,458  

End of year

  $ 44,888,568     $ 51,579,125  
                 

SHARE TRANSACTIONS

               

Shares sold

    84,239       123,001  

Shares issued in reinvestment of distributions

    21,462       427,274  

Shares redeemed

    (469,586 )     (959,209 )

Net Decrease in Shares Outstanding

    (363,885 )     (408,934 )

 

51

Annual Report | October 31, 2020

 

 

OAK ASSOCIATES FUNDS

 

 

This Page Intentionally Left Blank

 

 

Financial Highlights

 

 

For a share outstanding throughout each period

 

 

 

Net Asset
Value
Beginning of
Year

   

Net
Investment
Income
(Loss)
(a)

   

Realized and
Unrealized
Gain (Loss) in
Securities

   

Total from
Operations

   

Dividends from
Net Investment
Income

 

White Oak Select Growth Fund

                                       

For the year ended October 31, 2020

  $ 97.79       0.74       10.53       11.27       (0.97 )

For the year ended October 31, 2019

  $ 89.55       0.94       8.47       9.41       (0.54 )

For the year ended October 31, 2018

  $ 82.36       0.58       7.18       7.76       (0.57 )

For the year ended October 31, 2017

  $ 67.44       0.65       15.00       15.65       (0.73 )

For the year ended October 31, 2016

  $ 65.21       0.66       1.99       2.65       (0.42 )
                                         

Pin Oak Equity Fund

For the year ended October 31, 2020

  $ 72.63       0.62       0.08 (d)      0.70       (0.91 )

For the year ended October 31, 2019

  $ 66.18       0.81       7.41       8.22       (0.62 )

For the year ended October 31, 2018

  $ 63.72       0.59       3.05       3.64       (0.37 )

For the year ended October 31, 2017

  $ 53.35       0.40       11.15       11.55       (0.36 )

For the year ended October 31, 2016

  $ 52.45       0.43       2.38       2.81       (0.40 )
                                         

Rock Oak Core Growth Fund

For the year ended October 31, 2020

  $ 16.70       0.03       0.63       0.66       (0.07 )

For the year ended October 31, 2019

  $ 17.02       0.05       (0.28 )     (0.23 )     (c) 

For the year ended October 31, 2018

  $ 16.07       0.01       1.86       1.87       (0.01 )

For the year ended October 31, 2017

  $ 12.74       0.03       3.40       3.43       (0.10 )

For the year ended October 31, 2016

  $ 12.64       0.18       0.31       0.49       (0.10 )
                                         

River Oak Discovery Fund

For the year ended October 31, 2020

  $ 14.58       (0.04 )     1.19       1.15        

For the year ended October 31, 2019

  $ 15.88       0.02       0.85       0.87        

For the year ended October 31, 2018

  $ 17.42       (0.08 )     (0.54 )     (0.62 )      

For the year ended October 31, 2017

  $ 14.21       (0.10 )     3.31       3.21        

For the year ended October 31, 2016

  $ 13.76       (0.06 )     0.53       (0.47 )     (0.02 )

 

 

53

Annual Report | October 31, 2020

 

 

 

 

 

 

 

 

Distributions
from Capital
Gains

   

Total
Dividends
and
Distributions

   

Net Asset
Value, End of
Year

   

Total
Return
(b)

   

Net Assets,
End of Year
(000)

   

Ratio of Net
Expenses to
Average Net
Assets

   

Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets

   

Ratio of
Expenses
to Average
Net Assets
(Excluding
Waivers and/
or Fees Paid
Indirectly)

   

Portfolio
Turnover Rate

 
                                                                       
    (0.88 )     (1.85 )   $ 107.21       11.60 %   $ 349,983       0.93 %     0.73 %     0.93 %     13 %
    (0.63 )     (1.17 )   $ 97.79       10.66 %   $ 356,006       0.95 %     1.00 %     0.95 %     10 %
    (c)      (0.57 )   $ 89.55       9.46 %   $ 318,037       0.93 %     0.63 %     0.93 %     14 %
          (0.73 )   $ 82.36       23.36 %   $ 285,658       0.98 %     0.86 %     0.98 %     13 %
          (0.42 )   $ 67.44       4.07 %   $ 248,433       1.06 %     1.03 %     1.06 %     14 %
                                                                       

 

    (1.49 )     (2.40 )   $ 70.93       0.79 %   $ 163,074       0.95 %     0.89 %     0.95 %     15 %
    (1.15 )     (1.77 )   $ 72.63       12.83 %   $ 235,141       0.96 %     1.19 %     0.96 %     10 %
    (0.81 )     (1.18 )   $ 66.18       5.75 %   $ 260,859       0.95 %     0.87 %     0.95 %     12 %
    (0.82 )     (1.18 )   $ 63.72       21.86 %   $ 222,085       0.98 %     0.66 %     0.98 %     8 %
    (1.51 )     (1.91 )   $ 53.35       5.54 %   $ 109,928       1.08 %     0.86 %     1.08 %     10 %
                                                                       

 

    (0.49 )     (0.56 )   $ 16.80       3.78 %   $ 10,078       1.25 %     0.20 %     1.57 %     52 %
    (0.09 )     (0.09 )   $ 16.70       (1.34 )%   $ 11,899       1.25 %     0.29 %     1.38 %     16 %
    (0.91 )     (0.92 )   $ 17.02       12.15 %   $ 20,365       1.25 %     0.08 %     1.32 %     14 %
          (0.10 )   $ 16.07       27.02 %   $ 9,183       1.25 %     0.20 %     1.51 %     31 %
    (0.29 )     (0.39 )   $ 12.74       3.98 %   $ 7,395       1.25 %     0.48 %     1.65 %     11 %
                                                                       

 

    (0.59 )     (0.59 )   $ 15.14       7.79 %   $ 14,501       1.35 %     (0.27 )%     1.56 %     48 %
    (2.17 )     (2.17 )   $ 14.58       6.99 %   $ 12,518       1.35 %     0.12 %     1.60 %     15 %
    (0.92 )     (0.92 )   $ 15.88       (3.82 )%   $ 12,950       1.35 %     (0.46 )%     1.50 %     43 %
              $ 17.42       22.59 %   $ 14,427       1.35 %     (0.63 )%     1.41 %     43 %
          (0.02 )   $ 14.21       3.39 %   $ 12,322       1.35 %     (0.40 )%     1.51 %     21 %

 

(a)

Per share calculations were performed using average shares for the period.

(b)

Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares.

(c)

Less than $0.005 per share.

(d)

The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period due to the timing of sales and purchases of fund shares in relation to fluctuating market values during the period.

 

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

 

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54

 

 

Financial Highlights

 

 

For a share outstanding throughout each period

 

 

 

Net Asset
Value
Beginning of
Year

   

Net
Investment
Income
(Loss)
(a)

   

Realized and
Unrealized
Gain (Loss) in
Securities

   

Total from
Operations

   

Dividends from
Net Investment
Income

 

Red Oak Technology Select Fund

                                       

For the year ended October 31, 2020

  $ 29.95       0.13       4.72       4.85       (0.17 )

For the year ended October 31, 2019

  $ 26.90       0.27       4.03       4.30       (0.22 )

For the year ended October 31, 2018

  $ 25.78       0.10       2.72       2.82       (0.10 )

For the year ended October 31, 2017

  $ 19.27       0.09       6.71       6.80       (0.08 )

For the year ended October 31, 2016

  $ 17.17       0.20       2.62       2.82       (0.19 )
                                         

Black Oak Emerging Technology Fund

For the year ended October 31, 2020

  $ 5.27       (0.02 )     1.53       1.51        

For the year ended October 31, 2019

  $ 5.30       (c)      0.48       0.48        

For the year ended October 31, 2018

  $ 5.28       (0.01 )     0.42       0.41        

For the year ended October 31, 2017

  $ 4.53       (0.01 )     0.94       0.93       (c) 

For the year ended October 31, 2016

  $ 4.26       0.01       0.39       0.40        
                                         

Live Oak Health Sciences Fund

For the year ended October 31, 2020

  $ 18.14       0.15       (0.03 )(d)     0.12       (0.16 )

For the year ended October 31, 2019

  $ 20.21       0.15       0.26       0.41       (0.13 )

For the year ended October 31, 2018

  $ 19.98       0.13       1.35       1.48       (0.09 )

For the year ended October 31, 2017

  $ 17.93       0.10       2.33       2.43       (0.10 )

For the year ended October 31, 2016

  $ 21.65       0.11       (0.33 )     (0.22 )     (0.67 )

 

 

55

Annual Report | October 31, 2020

 

 

 

 

 

 

 

 

Distributions
from Capital
Gains

   

Total
Dividends
and
Distributions

   

Net Asset
Value, End of
Year

   

Total
Return
(b)

   

Net Assets,
End of Year
(000)

   

Ratio of Net
Expenses to
Average Net
Assets

   

Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets

   

Ratio of
Expenses
to Average
Net Assets
(Excluding
Waivers and/
or Fees Paid
Indirectly)

   

Portfolio
Turnover Rate

 
                                                                       
    (0.66 )     (0.83 )   $ 33.97       16.44 %   $ 576,473       0.94 %     0.40 %     0.94 %     4 %
    (1.03 )     (1.25 )   $ 29.95       16.92 %   $ 636,959       0.95 %     0.94 %     0.95 %     10 %
    (1.60 )     (1.70 )   $ 26.90       11.56 %   $ 544,203       0.94 %     0.38 %     0.94 %     9 %
    (0.21 )     (0.29 )   $ 25.78       35.76 %   $ 486,295       0.97 %     0.38 %     0.97 %     16 %
    (0.53 )     (0.72 )   $ 19.27       17.14 %   $ 189,064       1.09 %     1.17 %     1.09 %     6 %
                                                                       

 

    (0.31 )     (0.31 )   $ 6.47       29.48 %   $ 45,544       1.12 %     (0.35 )%     1.12 %     22 %
    (0.51 )     (0.51 )   $ 5.27       10.36 %   $ 36,240       1.18 %     (0.01 )%     1.18 %     25 %
    (0.39 )     (0.39 )   $ 5.30       8.12 %   $ 36,753       1.11 %     (0.27 )%     1.11 %     19 %
    (0.18 )     (0.18 )   $ 5.28       21.16 %   $ 37,267       1.17 %     (0.22 )%     1.17 %     39 %
    (0.13 )     (0.13 )   $ 4.53       9.59 %   $ 32,894       1.28 %     0.22 %     1.28 %     35 %
                                                                       

 

          (0.16 )   $ 18.10       0.62 %   $ 44,889       1.03 %     0.81 %     1.03 %     33 %
    (2.35 )     (2.48 )   $ 18.14       2.40 %   $ 51,579       1.05 %     0.87 %     1.05 %     23 %
    (1.16 )     (1.25 )   $ 20.21       7.68 %   $ 65,717       1.01 %     0.65 %     1.01 %     23 %
    (0.28 )     (0.38 )   $ 19.98       13.78 %   $ 64,747       1.02 %     0.50 %     1.02 %     14 %
    (2.83 )     (3.50 )   $ 17.93       (1.85 )%   $ 56,059       1.11 %     0.59 %     1.11 %     14 %

 

(a)

Per share calculations were performed using average shares for the period.

(b)

Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares.

(c)

Less than $0.005 per share.

(d)

The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period due to the timing of sales and purchases of fund shares in relation to fluctuating market values during the period.

 

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

 

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56

 

 

Notes to Financial Statements

 

 

As of October 31, 2020

 

1. ORGANIZATION:

 

 

The Oak Associates Funds (the “Trust”), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with seven diversified funds: White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund and Live Oak Health Sciences Fund (collectively referred to as “Funds” and individually referred to as a “Fund”). The investment objective of each Fund is to seek long-term capital growth. The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment objective, policies and strategies.

 

2. SIGNIFICANT ACCOUNTING POLICIES:

 

 

The following is a summary of significant accounting policies followed by the Funds.

 

Use of Estimates – These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”). Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services - Investment Companies.” The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures of contingent assets and liabilities in the financial statements and the reported amounts of income and expenses during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the value the Funds ultimately realize upon the sale of the securities.

 

Security Valuation – Investments in equity securities, which are traded on a national exchange, are stated at the last quoted sales price if readily available for such equity securities on each business day. Investments in equity securities, which are reported on the NASDAQ national market system are valued at the official closing price; other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding sixty days to maturity for which market quotations are readily available are valued at the most recently quoted bid price. Debt obligations with sixty days or less remaining until maturity may be valued at their amortized cost, which approximates market value, in the absence of a current quoted bid price. Investments in repurchase agreements are generally valued at par each business day.

 

Redeemable securities issued by open-end registered investment companies are valued at the investment company’s applicable net asset value (“NAV”) as determined by those funds each business day.

 

Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Funds’ Board of Trustees. The Board of Trustees has determined to delegate responsibility for pricing and fair valuation determinations for portfolio securities to Funds’ adviser, Oak Associates, Ltd. (“Oak” or the “Adviser”), subject to oversight of the Board of Trustees. Oak may, in turn and subject to its oversight, delegate pricing of securities for which market prices are readily available to the Funds’ administrator. All fair valuation determinations shall be made by Oak’s Fair Value Committee (the “Committee”), in accordance with policies and procedures established by the Board of Trustees and subject to oversight of the Board. Oak and the administrator have established and maintain policies and procedures reasonably designed to

 

57

Annual Report | October 31, 2020

 

 

Notes to Financial Statements

 

 

As of October 31, 2020

 

ensure that their pricing and valuation policies and procedures conform to the requirements of the Funds’ Fair Value Procedures. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de–listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; a significant event with respect to a security or securities has occurred after the close of the market or exchange on which the security or securities principally trades and before the time the Fund calculates net asset value; or trading of the security is subject to local government–imposed restrictions. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee.

 

Security Transactions and Investment Income – Security transactions are accounted for on the date the security is purchased or sold (trade date) for financial reporting purposes. Dividend income is recognized on the ex-dividend date. Interest income is recognized on the accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Costs used in determining realized gains and losses on the sales of investment securities are those of the specific securities sold. If applicable, any foreign capital gains taxes are accrued, net of unrealized gains, and are payable upon the sale of such investments.

 

Expenses – Expenses that are directly related to one of the Funds are charged to that Fund. Expenses not directly billed to a particular Fund are allocated proportionally among all Funds daily in relation to net assets of each Fund or another reasonable allocation method.

 

Repurchase Agreements – The Funds may invest in tri-party repurchase agreements. Securities held as collateral for tri-party repurchase agreements are maintained by the broker’s custodian bank in a segregated account until maturity of the repurchase agreement. Provisions of the repurchase agreements and procedures adopted by the Board of Trustees require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default by the counterparty. A custody agreement in connection with the Master Repurchase Agreement defines eligible securities for collateral in relation to each repurchase agreement. Under the Master Repurchase Agreement, if the counterparty defaults and the value of the collateral declines or if the counter-party enters an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited.

 

Master Agreements and Netting Arrangements – Certain Funds may participate in various repurchase agreements, such as, but not limited to Master Repurchase Agreements, which govern the terms of certain transactions with select counterparties (collectively “Master Agreements”). These Master Agreements generally include provisions for general obligations, agreements, representations, collateral and provisions for events of default or termination. These Master Agreements also include provisions for netting arrangements that help reduce credit and counterparty risk associated with relevant transactions. The netting arrangements are generally tied to credit related events that if triggered, would cause an event of default or termination giving a Fund or counterparty the right to terminate early and cause settlement, on a net basis, of all transactions under the applicable Master Agreement. In the event of an early termination or default event, the total market value exposure would be offset against collateral exchanged to date, which would result in a net receivable or payable that would be due from or to the counterparty. Credit related events include, but are not limited to, bankruptcy, failure to make timely payments, restructuring, obligation acceleration, obligation default, a material decline in net assets, decline in credit rating or repudiation/moratorium. An election made by a counterparty to terminate a

 

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58

 

 

Notes to Financial Statements

 

 

As of October 31, 2020

 

transaction early under a Master Agreement could have an adverse impact on a Fund’s financial statements. Master Agreements can also help limit counterparty risk by requiring collateral posting arrangements at pre-arranged exposure levels. Collateral under the Master Agreements is usually in the form of cash, U.S. Treasury or U.S. Government agency securities, but may include other types of securities. There can be no assurance that the Master Agreements will be successful in limiting credit or counterparty risk.

 

Securities Lending – The Trust has entered into a Securities Lending Agreement (“SLA”) with U.S. Bank National Association (the “Agent”). Under the terms of the SLA, the Funds may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked to market daily. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities and letters of credit. The cash collateral is invested in the Mount Vernon Liquid Assets Portfolio, LLC (“Mount Vernon”), as noted in each lending Fund’s respective Schedule of Investments. Mount Vernon seeks to maximize current income to the extent consistent with the preservation of capital and liquidity; and to maintain a stable NAV of $1.00. The market value of the loaned securities is determined daily at the close of business of the Funds and any additional required collateral is delivered to each Fund on the next business day. The Funds continue to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Funds pay various fees in connection with the investment of cash collateral. The Funds pay the Agent fees based on the investment income received from securities lending activities. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. The contractual maturity of repurchase agreements are on an overnight and continuous basis. Cash and cash equivalent collateral on securities lending transactions are on an overnight and continuous basis.

 

The following is a summary of each Funds’ securities lending agreements and related cash and non-cash collateral received as of October 31, 2020:

 

 

 

Market Value of
Securities on Loan

   

Cash Collateral
Received

 

White Oak Select Growth Fund

  $ 56,840     $ 58,500  

Pin Oak Equity Fund

    8,542,706       9,016,489  

Rock Oak Core Growth Fund

    1,651,664       1,717,884  

River Oak Discovery Fund

    1,117,797       1,201,162  

Red Oak Technology Select Fund

    17,264,624       17,770,238  

Black Oak Emerging Technology Fund

    5,186,788       5,362,048  

Live Oak Health Sciences Fund

    1,956,698       2,002,773  
    $ 35,777,117     $ 37,129,094  

 

Dividends and Distributions to Shareholders – Dividends from net investment income are declared and paid to shareholders on an annual basis, as applicable. Net realized capital gains on sales of securities, if any, are distributed to shareholders at least annually. Distributions to shareholders are determined in accordance with income tax regulations and are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. Therefore, the source of the Funds’ distributions may be shown in the accompanying financial statements as either accumulated earnings, or from paid-in capital, depending upon the type of book/tax differences that may exist.

 

59

Annual Report | October 31, 2020

 

 

Notes to Financial Statements

 

 

As of October 31, 2020

 

3. FAIR VALUE MEASUREMENTS:

 

 

A three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability including assumptions about risk. Inputs may be observable and unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

 

Various inputs are used in determining the value of each Fund’s investments as of the reporting period end. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:

 

The three-tier hierarchy is summarized as follows:

 

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that a Fund has the ability to access at the measurement date, including but not limited to:

 

Equity Securities – investments for which market quotations are readily available that are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded.

 

Investment Companies – investments in open-end registered investment companies which are valued at their closing NAV.

 

Level 2 – Quoted prices which are not active, quoted prices for similar assets or liabilities inactive markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability, including but not limited to:

 

Repurchase Agreements – investments in overnight tri-party repurchase agreements which are valued at par.

 

All Securities – quoted prices for similar securities, including matrix pricing; quoted prices based on recently executed transactions; adjusted quoted prices based on observable and formulaic inputs; or, prices using other observable correlated market inputs.

 

Level 3 – Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset and liability at the measurement date, including but not limited to:

 

All Securities – modeling or manual pricing based on the Adviser’s own assumptions in determining fair value of investments; or, the significant use of other unobservable or very stale inputs within fair valuation.

 

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60

 

 

Notes to Financial Statements

 

 

As of October 31, 2020

 

The following is a summary of the inputs used to value each Fund’s investments as of October 31, 2020:

 

 

 

Level 1

   

Level 2

   

Level 3

   

Total

 

WHITE OAK SELECT GROWTH FUND

                       

Common Stocks

  $ 348,641,266     $     $     $ 348,641,266  

Short-Term Investments

                               

Repurchase Agreements

          7,751,757             7,751,757  

Collateral for Securities Loaned*

                      58,500  

Total

  $ 348,641,266     $ 7,751,757     $     $ 356,451,523  
                                 

 

 

 

Level 1

   

Level 2

   

Level 3

   

Total

 

PIN OAK EQUITY FUND

                       

Common Stocks

  $ 161,248,080     $     $     $ 161,248,080  

Short-Term Investments

                               

Money Market Funds

    2,009,712                   2,009,712  

Repurchase Agreements

          1,742,368             1,742,368  

Collateral for Securities Loaned*

                      9,016,489  

Total

  $ 163,257,792     $ 1,742,368     $     $ 174,016,649  

 

 

 

Level 1

   

Level 2

   

Level 3

   

Total

 

ROCK OAK CORE GROWTH FUND

                       

Common Stocks

  $ 9,763,562     $     $     $ 9,763,562  

Short-Term Investments

                               

Money Market Funds

    519,127                   519,127  

Collateral for Securities Loaned*

                      1,717,884  

Total

  $ 10,282,689     $     $     $ 12,000,573  

 

 

 

Level 1

   

Level 2

   

Level 3

   

Total

 

RIVER OAK DISCOVERY FUND

                       

Common Stocks

  $ 14,237,990     $     $     $ 14,237,990  

Short-Term Investments

                               

Repurchase Agreements

          119,690             119,690  

Collateral for Securities Loaned*

                      1,201,162  

Total

  $ 14,237,990     $ 119,690     $     $ 15,558,842  

 

61

Annual Report | October 31, 2020

 

 

Notes to Financial Statements

 

 

As of October 31, 2020

 

 

 

Level 1

   

Level 2

   

Level 3

   

Total

 

RED OAK TECHNOLOGY SELECT FUND

                       

Common Stocks

  $ 574,644,553     $     $     $ 574,644,553  

Short-Term Investments

                               

Repurchase Agreements

          2,479,065             2,479,065  

Collateral for Securities Loaned*

                      17,770,238  

Total

  $ 574,644,553     $ 2,479,065     $     $ 594,893,856  

 

 

 

Level 1

   

Level 2

   

Level 3

   

Total

 

BLACK OAK EMERGING TECHNOLOGY FUND

                       

Common Stocks

  $ 45,203,747     $     $     $ 45,203,747  

Short-Term Investments

                               

Money Market Funds

    827,982                   827,982  

Collateral for Securities Loaned*

                      5,362,048  

Total

  $ 46,031,729     $     $     $ 51,393,777  

 

 

 

Level 1

   

Level 2

   

Level 3

   

Total

 

LIVE OAK HEALTH SCIENCES FUND

                       

Common Stocks

  $ 44,426,708     $     $     $ 44,426,708  

Short-Term Investments

                               

Repurchase Agreements

          4,181,719             4,181,719  

Collateral for Securities Loaned*

                      2,002,773  

Total

  $ 44,426,708     $ 4,181,719     $     $ 50,611,200  

 

*

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities.

 

The above tables are presented by levels of disaggregation for each asset class. For detailed descriptions of the underlying industries, see the accompanying Schedules of Investments. There were no Level 3 securities held during the period.

 

4. FEES AND OTHER RELATED PARTY TRANSACTIONS:

 

 

The Trust and the Adviser are parties to an Investment Advisory Agreement, under which the Adviser receives an annual fee equal to 0.74% of the average daily net assets of each Fund, except for the River Oak Discovery Fund for which the Adviser receives 0.79% of the average daily net assets of the Fund. Prior to November 1, 2020, the Adviser received a fee of 0.90% for the River Oak Discovery Fund. The Adviser has contractually agreed through February 28, 2021 to waive all or a portion of its fees (and to reimburse the Funds’ expenses if necessary) in order to limit Fund total operating expenses to not more than 1.25% of the average daily net assets of the White Oak Select Growth Fund, Pin Oak Equity Fund, River Oak Discovery Fund, and Rock Oak Core Growth Fund and

 

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Notes to Financial Statements

 

 

As of October 31, 2020

 

1.35% of the average daily net assets of the Red Oak Technology Select Fund, Black Oak Emerging Technology Fund and Live Oak Health Sciences Fund. Prior to November 1, 2020, the expense cap for the River Oak Discovery Fund was 1.35% of average daily net assets.

 

The following table lists the contractual advisory fees and fee waivers that were in effect during the fiscal year ended October 31, 2020:

 

Advisory Fees as a Percentage of Average Net Assets

Fund

Annual Rate

Fee Waiver

Net Annual Rate

White Oak Select Growth Fund

0.74%

 

0.74%

Pin Oak Equity Fund

0.74%

 

0.74%

Rock Oak Core Growth Fund

0.74%

(0.32)%

0.42%

River Oak Discovery Fund

0.90%

(0.21)%

0.69%

Red Oak Technology Select Fund

0.74%

 

0.74%

Black Oak Emerging Technology Fund

0.74%

 

0.74%

Live Oak Health Sciences Fund

0.74%

 

0.74%

 

Ultimus Fund Solutions, LLC (“Ultimus”) provides the Funds with administration, fund accounting and transfer agency services, including all regulatory reporting. The Funds pay Ultimus fees in accordance with the agreements for such services. In addition, each Fund pays out-of-pocket expenses including, but not limited to, postage, supplies and costs of pricing its portfolio securities.

 

Under the terms of a Distribution Agreement with the Trust, Ultimus Fund Distributors, LLC (the “Distributor”) serves as the principal underwriter to each Fund. The Distributor is a wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Funds) for acting as principal underwriter.

 

Certain officers and trustees of the Trust are also officers of the Adviser, Ultimus and/or the Distributor. Such officers are paid no fees by the Trust for serving as officers or trustees to the Trust.

 

5. INVESTMENT TRANSACTIONS:

 

 

The cost of security purchases and the proceeds from security sales, other than short–term investments, for the fiscal year ended October 31, 2020 were as follows:

 

Fund

 

Purchases

   

Sales

 

White Oak Select Growth Fund

  $ 45,103,508     $ 86,894,307  

Pin Oak Equity Fund

    29,009,352       96,780,546  

Rock Oak Core Growth Fund

    5,183,988       7,437,057  

River Oak Discovery Fund

    6,863,155       5,726,124  

Red Oak Technology Select Fund

    26,682,403       169,040,907  

Black Oak Emerging Technology Fund

    8,468,858       9,296,180  

Live Oak Health Sciences Fund

    15,959,070       22,388,171  

 

63

Annual Report | October 31, 2020

 

 

Notes to Financial Statements

 

 

As of October 31, 2020

 

6. FEDERAL INCOME TAXES AND TAX BASIS INFORMATION:

 

 

Each of the Funds is classified as a separate taxable entity for Federal income tax purposes. Each of the Funds has qualified and intends to continue to qualify as a separate “regulated investment company” under Sub–chapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders that will be sufficient to relieve it from Federal income tax and Federal excise tax. Therefore, no Federal tax provision is required.

 

The amounts of dividends from net investment income and distributions from net realized capital gains are determined in accordance with Federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States of America. These book/tax differences are either temporary or permanent in nature. The character of dividends from net investment income or distributions from net realized gains made during the year, and the timing may differ from the year that the income or realized gains (losses) were recorded by the Funds. To the extent these differences are permanent, adjustments are made to the appropriate equity accounts in the period that the differences arise. These differences are primarily due to differences in the treatment of net operating losses, equalization, and certain other investments.

 

Accordingly, the following permanent differences have been reclassified to/from the following accounts:

 

Fund

 

Accumulated Earnings

   

Paid-in Capital

 

White Oak Select Growth Fund

  $ (1,967,804 )   $ 1,967,804  

Pin Oak Equity Fund

    (2,000,565 )     2,000,565  

Rock Oak Core Growth Fund

    (154,879 )     154,879  

River Oak Discovery Fund

    (22,274 )     22,274  

Red Oak Technology Select Fund

    (6,488,836 )     6,488,836  

Black Oak Emerging Technology Fund

    (262,445 )     262,445  

Live Oak Health Sciences Fund

    (277,895 )     277,895  

 

The tax character of the distributions paid by the Funds for the fiscal year ended October 31, 2020 was as follows:

 

Fund

 

Ordinary
Income

   

Long-Term
Capital Gain

   

Total

 

White Oak Select Growth Fund

  $ 3,415,633     $ 3,125,126     $ 6,540,759  

Pin Oak Equity Fund

    2,857,537       4,689,387       7,546,924  

Rock Oak Core Growth Fund

    47,283       322,563       369,846  

River Oak Discovery Fund

          499,422       499,422  

Red Oak Technology Select Fund

    3,512,413       13,971,324       17,483,737  

Black Oak Emerging Technology Fund

          2,132,576       2,132,576  

Live Oak Health Sciences Fund

    446,446             446,446  

 

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Notes to Financial Statements

 

 

As of October 31, 2020

 

The tax character of the distributions paid by the Funds for the fiscal year ended October 31, 2019 was as follows:

 

Fund

 

Ordinary
Income

   

Long-Term
Capital Gain

   

Total

 

White Oak Select Growth Fund

  $ 1,929,925     $ 2,259,063     $ 4,188,988  

Pin Oak Equity Fund

    2,351,826       4,340,053       6,691,879  

Rock Oak Core Growth Fund

    2,601       100,470       103,071  

River Oak Discovery Fund

          1,745,948       1,745,948  

Red Oak Technology Select Fund

    4,856,601       20,580,391       25,436,992  

Black Oak Emerging Technology Fund

          3,465,522       3,465,522  

Live Oak Health Sciences Fund

    827,573       7,287,274       8,114,847  

 

As of October 31, 2020, the components of distributable earnings on a tax basis were as follows:

 

Fund

 

Undistributed
Net Investment
Income

   

Accumulated
Capital
Gain (Loss)

   

Unrealized
Appreciation/
(Depreciation)

   

Cumulative
Effect of
Timing
Differences

   

Total

 

White Oak Select Growth Fund

  $ 2,399,571     $ 7,452,340     $ 147,723,161     $     $ 157,575,072  

Pin Oak Equity Fund

    1,358,322       6,767,178       56,381,659             64,507,159  

Rock Oak Core Growth Fund

    21,261       1,668,983       1,551,856             3,242,100  

River Oak Discovery Fund

          2,560,736       1,414,603       (75,561 )     3,899,778  

Red Oak Technology Select Fund

    1,471,046       26,178,721       290,810,401             318,460,168  

Black Oak Emerging Technology Fund

          3,380,247       21,350,315       (127,762 )     24,602,800  

Live Oak Health Sciences Fund

    264,666       2,930,674       10,395,638             13,590,978  

 

As of October 31, 2020, the difference between book basis and tax basis unrealized appreciation (depreciation) is primarily attributable to wash sales, return of capital adjustments and partnership basis adjustments.

 

The River Oak Discovery Fund and Black Oak Emerging Technology Fund elected to defer to the year ending October 31, 2021, late year ordinary losses in the amount of $75,561 and $127,762, respectively.

 

65

Annual Report | October 31, 2020

 

 

Notes to Financial Statements

 

 

As of October 31, 2020

 

At October 31, 2020, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by the Funds is as follows:

 

Fund

 

Federal Tax Cost

   

Gross
Appreciation

   

Gross
Depreciation

   

Net Appreciation

 

White Oak Select Growth Fund

  $ 208,728,362     $ 149,659,604     $ (1,936,443 )   $ 147,723,161  

Pin Oak Equity Fund

    117,634,990       58,958,287       (2,576,628 )     56,381,659  

Rock Oak Core Growth Fund

    10,448,717       1,892,716       (340,860 )     1,551,856  

River Oak Discovery Fund

    14,193,123       2,218,851       (804,248 )     1,414,603  

Red Oak Technology Select Fund

    304,083,455       291,198,188       (387,787 )     290,810,401  

Black Oak Emerging Technology Fund

    30,043,462       21,511,722       (161,407 )     21,350,315  

Live Oak Health Sciences Fund

    40,215,562       11,346,732       (951,094 )     10,395,638  

 

Management evaluates the Funds’ tax positions to determine if the taken tax positions meet the minimum recognition threshold by measuring and recognizing tax liabilities in the Financial Statements. The threshold is established by accounting for uncertainties in income tax positions, taken or expected. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the period, the Funds did not incur any interest or penalties.

 

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (current and prior three tax years) and has concluded that as of and for the fiscal year ended October 31, 2020, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years (current and prior three tax years) for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

 

7. CONCENTRATION OF CREDIT RISK AND OWNERSHIP:

 

 

The Red Oak Technology Select Fund and the Black Oak Emerging Technology Fund invest a substantial portion of their assets in securities in the information technology sector. The Live Oak Health Sciences Fund invests a substantial portion of its assets in securities in the health care, medicine and life sciences industries. Therefore, each of these Funds may be more affected by economic developments in those sectors than a general equity fund would be.

 

In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however based on experience, the risk of loss from such claims is considered remote.

 

From time to time, the Funds may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund.

 

As of October 31, 2020, the Vanita B. Oelschlager Trust owned 27.99% of the Rock Oak Core Growth

 

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Notes to Financial Statements

 

 

As of October 31, 2020

 

Fund and the James D. Oelschlager Trust owned 38.98% of the River Oak Discovery Fund.

 

8. TRUSTEE AND OFFICERS FEES:

 

 

As of October 31, 2020, there were five Trustees, four of whom are not “interested persons” (within the meaning of the 1940 Act) of the Trust (the “Independent Trustees”). Each Independent Trustee receives a retainer at an annual rate of $30,000 per year. Each Independent Trustee is also paid a fee of $3,500 for each meeting of the Board of Trustees attended or participated in person, and/or is also paid $1,000 per attendance at each telephonic board meeting, as applicable. Each Independent Trustee is paid $4,000 per telephonic or in-person meeting at which they receive and review preliminary materials provided in connection with the annual continuation of the advisory agreement in accordance with Section 15(c) of the 1940 Act. The chairperson of the Audit Committee receives an additional retainer of $1,000 per calendar quarter during which an Audit Committee Meeting is held and the Lead Independent Trustee receives an additional retainer of $3,500 per calendar quarter.

 

The Independent Trustees who do not serve as chairpersons of the applicable Board committee are not paid an additional fee from the Trust for attendance at and/or participation in such meetings of the various committees of the Board. The Independent Trustees are also reimbursed for meeting-related expenses. Officers of the Trust and Trustees who are interested persons of the Trust receive no salary or fees from the Trust, although they may be reimbursed for meeting-related expenses.

 

9. INDEMNIFICATIONS:

 

 

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that may contain general indemnification clauses, which may permit indemnification to the extent permissible under applicable law. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

 

10. CORONAVIRUS (COVID-19) PANDEMIC:

 

 

The COVID-19 pandemic has caused financial markets to experience periods of increased volatility due to uncertainty that exists around its long-term effects. COVID-19 has resulted in varying levels of travel restrictions, quarantines, disruptions to supply chains and customer activity, leading to general concern and economic uncertainty. The full impact and duration of the pandemic cannot necessarily be foreseen. Management continues to monitor developments and navigate accordingly, further evaluating the anticipated impact to financial markets.

 

11. SUBSEQUENT EVENTS:

 

 

As described in Note 4, effective November 1, 2020, the Adviser has agreed to lower the advisory fee and expense cap for the River Oak Discovery Fund to 0.74% and 1.25%, respectively.

 

Management has evaluated events or transactions from October 31, 2020, through the date these financial statements were issued, that would merit recognition or disclosure in the financial statements. There were no other subsequent events to report that would have material impact in the Funds’ financial statements.

 

67

Annual Report | October 31, 2020

 

 

Report of Independent Registered Public Accounting Firm

 

 

To the Shareholders and Board of Trustees of
Oak Associates Funds

 

Opinion on the Financial Statements

 

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Oak Associates Funds comprising White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund (the “Funds”) as of October 31, 2020, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, including the related notes, and the financial highlights for each of the five years in the period then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2020, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

We have served as the Funds’ auditor since 2009.

 

 

COHEN & COMPANY, LTD.
Cleveland, Ohio
December 22, 2020

 

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Additional Information

 

 

As of October 31, 2020 (Unaudited)

 

1. UNAUDITED TAX INFORMATION:

 

 

The White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund designate 100%, 100%, 100%, 0%, 100%, 0% and 100%, respectively, of the income dividends distributed between January 1, 2019 and December 31, 2019, as qualified dividend income (QDI) as defined in Section 1(h)(11) of the Internal Revenue Code.

 

Pursuant to Section 854(b)(2) of the Internal Revenue Code, the White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund designate 100%, 91%, 100%, 0%, 100%, 0% and 100%, respectively, of the ordinary income dividends distributed between January 1, 2019 and December 31, 2019, as qualifying for the corporate dividends received deduction.

 

In early 2020, if applicable, shareholders of record should have received this information for the distributions paid to them by the Fund during the calendar year 2019 via Form 1099. The Fund will notify shareholders in early 2021 of amounts paid to them by the Fund, if any, during the calendar year 2020.

 

Pursuant to Section 852(b)(3) of the Internal Revenue Code, the White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund designated $5,013,000, $6,689,952, $477,442, $539,159, $20,460,160, $2,395,022 and $249,950 as long-term capital gain dividends, respectively.

 

2. PROXY VOTING POLICIES AND VOTING RECORD

 

 

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted those proxies during the most recent twelve month period ended June 30 are available without charge, upon request: (1) by calling the Funds at 1-888-462-5386; and (2) from Fund documents filed with the Securities and Exchange Commission (“SEC”) on the SEC’s website at www.sec.gov.

 

3. QUARTERLY PORTFOLIO HOLDINGS

 

 

The Funds file its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at http://www.sec.gov.

 

69

Annual Report | October 31, 2020

 

 

Additional Information

 

 

As of October 31, 2020 (Unaudited)

 

TRUSTEES OF THE TRUST

Name & Age(1)

Position
Held with
Trust

Length
of Time
Served
(Yrs.)
(2)

Number of
Portfolios
in Fund
Complex
Overseen
by Board
Member
(3)

Principal Occupation(s)
During Past Five Years

Other
Directorships
Held
by Board
Member
(4)

J. John Canon

 

(85)

Trustee

19

7

Retired. Member of Board, Proconex (process control equipment), 1985 – 2007; President and Chairman of the Board, Synergistic Partners, Inc. (technology for information management), 1975 – 1999.

None

James D. Oelschlager(5)

 

(78)

Trustee, Chairman

19

7

Co-CIO of Oak Associates, ltd. since 2019. Founder of Oak Associates, ltd. and Manging Member, President and CIO 1985-2019.

None

Pauline F. Ramig

 

(80)

Trustee

12

7

Financial Planning Practitioner, Ramig Financial Planning since 1991.

None

Michael R. Shade

 

(72)

Trustee

12

7

Attorney at Law; Partner, Shade & Shade since December, 1979.

None

David J. Gruber

 

(57)

Trustee

2

7

Director of Risk Advisory Services, Holbrook & Manter (CPA firm) 2016 to present; President, DJG Financial Consulting, 2007 to 2016.

Trustee for Asset Management Fund (5 Funds); Monteagle Funds (6 Funds); and Cross Shore Discovery Fund 1 Fund)

 

1

Each Trustee may be contacted in writing to the Trustee c/o Oak Associates Funds, 3875 Embassy Parkway, Suite 250, Akron, OH 44333. Each Officer may be contacted in writing to the Officer c/o Ultimus Fund Solutions, LLC, 225 Pictoria Drive, Suite 450, Cincinnati, OH 45426.

 

2

Each Trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns or is removed in accordance with the Trust’s Declaration of Trust.

 

3

The “Oak Associates Funds Complex” consists of all series of the Trust for which Oak Associates, ltd. serves

 

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Additional Information

 

 

As of October 31, 2020 (Unaudited)

 

as investment adviser. As of October 31, 2020, the Oak Associates Funds Complex consisted of 7 Funds.

 

4

Directorships of companies are required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the Investment Company Act of 1940.

 

5

Mr. Oelschlager is considered an “interested” person of the Trust as that term is defined in the Investment Company Act of 1940. Mr. Oelschlager is interested by virtue of his controlling ownership interest in the Adviser.

 

 

71

Annual Report | October 31, 2020

 

 

Additional Information

 

 

As of October 31, 2020 (Unaudited)

 

OFFICERS OF THE TRUST

Name & Age(1)

Position
Held with
Trust

Length
of Time
Served
(Yrs.)

Number of
Portfolios
in Fund
Complex
Overseen
by Board
Member

Principal Occupation(s)
During Past Five Years

Other
Directorships
Held

Charles A. Kiraly(2)

 

(50)

President/ Chief Executive Officer

6

N/A

Director of Mutual Fund Operations at Oak Associates, ltd. since July 2014; Vice President and Senior Fund Administrator at PNC Capital Advisors, LLC from August 2006 to June 2014.

N/A

Margaret L. Ballinger(2)

 

(67)

Chief Compliance Officer

5

N/A

Chief Compliance Officer since February 2015. President since January 2020, Chief Compliance Officer since December 2014 and Chief Operating Officer since 1996 for Oak Associates, ltd. Co-founder of Oak Associates, ltd. in 1985.

N/A

Zachary P. Richmond
(40)

Treasurer

2

N/A

Vice President, Director of Financial Administration for Ultimus Fund Solutions, LLC since February 2019

N/A

Maggie Bull

 

(54)

Secretary

3

N/A

Senior Attorney, Ultimus Fund Solutions, LLC (June 2017 to present); Chief Compliance Officer and Legal Counsel, Meeder Funds, Meeder Investment Management (2011 – 2016).

 

 

1

Each Officer may be contacted in writing to the Officer c/o Ultimus Fund Solutions, LLC, 225 Pictoria Drive, Suite 450, Cincinnati, OH 45246.

 

2

Mr. Kiraly and Ms. Ballinger are considered to be “affiliates” of the Adviser by virtue of their employment by the Adviser.

 

For more information regarding the Trustees, please refer to the Statement of Additional Information, which is available upon request by calling 1-888-462-5386 or on the Funds’ website at www.oakfunds.com.

 

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Oak Associates Funds

 

Privacy Policy

 

Oak Associates Funds recognizes and respects the privacy concerns of our shareholders. The Funds collect nonpublic personal information about you in the course of doing business and providing you with individualized service. “Nonpublic personal information” is personally identifiable financial information about you. We do not sell your personal information to anyone and we do not disclose it to anyone except as permitted or required by law or as described in this policy.

 

INFORMATION WE COLLECT

 

Information we receive from you on applications and other forms (such as your name, birth date, address and social security number);

Information about the transactions in your accounts;

Information about any bank account you use for transfers between your bank account and your Oak Associates accounts; and

Information we receive about you as a result of your inquiries by mail, email and telephone

 

INFORMATION WE SHARE

Oak Associates Funds only discloses your nonpublic personal information as required or permitted by law. The Funds may disclose this information:

 

So that we may complete transactions you authorize or request; and

So that we may provide you with information about Oak Associates Funds products and services; we may disclose information to companies that provide services to us, such as transfer agents or printers and mailers that prepare and distribute materials to you.

 

INFORMATION SECURITY

 

Within Oak Associates Funds, access to your information is restricted to the individuals who need to know the information to service your account. Each Fund conducts its business through its trustees, officers and third party service providers, pursuant to agreements with the Fund. The Fund and its service providers maintain physical, electronic and procedural safeguards that comply with federal standards to guard your information. In the event that you hold shares of the Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank or trust company, the privacy policy of your financial intermediary will govern how your nonpublic personal information will be shared with nonaffiliated third parties by that entity.

 

TO PROTECT YOUR PRIVACY

 

We recommend that you do not provide your account information or Oak Associates Funds user name or password to anyone. If you become aware of any suspicious activity relating to your account, please contact us immediately at 1-888-462-5386.

 

QUESTIONS

 

Should you have any questions regarding the Funds’ Privacy Policy, please call
1-888-462-5386

 

OAK ASSOCIATES FUNDS

 

 

 

By Mail
Oak Associates Funds
225 Pictoria Drive, Suite 450
Cincinnati, OH 45246

 

By Telephone 1-888-462-5386 Monday through Friday, 8:00 a.m. to 6:00 p.m. ET

 

On The Web www.oakfunds.com
Click on the
My Oak Account section to take advantage of these features:

●    Trade Online

●     Access and Update Account Information

●     Go Paperless with eDelivery

●     View and download account history

●     Establish a systematic investment plan

 

The Trust files its complete schedule of portfolio holdings of each Fund monthly on Form N-PORT, with every third month made available to the public by the Commission sixty days after the end of the Funds’ fiscal quarter.

 

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information relating to how a Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-888-462-5386; and (ii) on the Commission’s website at http://www.sec.gov.

 

This report has been prepared for Oak Associates Funds Shareholders and may be distributed to others only if preceded or accompanied by a prospectus.

 

Oak Associates Funds are distributed by Ultimus Fund Distributors, LLC

 

 

 

 

 

 

 

Item 2. Code of Ethics.

(a) As of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant’s Principal Executive Officer and Principal Financial Officer.

 

(b) Not applicable.

 

(c) During the period covered by the report, with respect to the registrant's code of ethics that applies to its Principal Executive Officer and Principal Financial Officer: there have been no amendments to a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.

 

(d) During the period covered by the report, with respect to the registrant's code of ethics that applies to its Principal Executive Officer and Principal Financial Officer: there have been no waivers granted from a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.

 

(e) Not applicable.

 

(f) The registrant has included a copy of the code of ethics that applies to the registrant’s Principal Executive Officer and Principal Financial Officer. This code of ethics is included as an Exhibit on this Form N-CSR.

 

Item 3. Audit Committee Financial Expert.

 

(a)(1) The registrant’s Board of Trustees has determined that the registrant has at least one audit committee financial expert serving on its audit committee.

 

(a)(2) The audit committee financial expert is David Gruber, who is “independent” for purposes of this Item 3 of Form N-CSR.

 

Item 4. Principal Accountant Fees and Services.

 

(a) Audit Fees billed to the registrant by its principal accountants for the two most recent fiscal years:

 

Fiscal year ended 2020: $84,000

Fiscal year ended 2019: $84,000

 

(b) Audit-Related Fees billed to the registrant by its principal accountants for the two most recent fiscal years:

 

Fiscal year ended 2020: $0

Fiscal year ended 2019: $0

 

(c) Tax Fees billed to the registrant by its principal accountants for the two most recent fiscal years:

 

Fiscal year ended 2020: $21,000

Fiscal year ended 2019: $21,000

 

(d) All other fees billed to the registrant by its principal accountants for the two most recent fiscal years:

 

Fiscal year ended 2020: $0

Fiscal year ended 2019: $0

 

 

 

 (e)(1) Not Applicable.

 

(e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) 0%

(c) 0 %

(d) 0%

 

(f) Not applicable.

 

(g) The aggregate non-audit fees and services billed by the applicable principal account for the two most recent fiscal years:

 

Fiscal year ended 2020: $5,250

Fiscal year ended 2019: $0

 

(h) The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable.

 

Item 6. Schedule of Investments.

 

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the Report to Stockholders filed under Item 1 of this Form N-CSR.

 

(b) Not applicable.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

Not applicable.

 

 

 

Item 11. Controls and Procedures.

 

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-2 under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing of this report on Form N-CSR.

 

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Disclosure of Securities Lending Activities for Closed-End Investment Companies.

 

Not applicable.

 

Item 13. Exhibits.

 

(a)(1) The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto.

 

(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.

 

(a)(3) Not applicable.

 

(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) Oak Associates Funds  
     
By (Signature and Title)* /s/ Charles A. Kiraly  
  Charles A. Kiraly, President  
     
Date 12/23/2020  

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)* /s/ Charles A. Kiraly  
  Charles A. Kiraly, President and Principal Executive Officer
     
Date 12/23/2020  
     
By (Signature and Title)* /s/ Zachary P. Richmond  
  Zachary P. Richmond, Treasurer and Principal Financial Officer  
     
Date 12/23/2020  

 

OAK ASSOCIATES FUNDS

 

FINANCIAL OFFICER CODE OF ETHICS

 

Introduction

 

The reputation and integrity of the Oak Associates Funds (the “Trust”) are valuable assets that are vital to the Trust’s success. The Trust’s senior financial officers (“SFOs”) are responsible for conducting the Trust’s business in a manner that demonstrates a commitment to the highest standards of integrity. The Trust’s SFOs include the principal executive officer, the principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function.

 

The Sarbanes-Oxley Act of 2002 (the “Act”) effected sweeping corporate disclosure and financial reporting reform on public companies, including mutual funds, to address corporate malfeasance and assure investors that the companies in which they invest are accurately and completely disclosing financial information. Under the Act, all public companies (including the Trusts) must either have a code of ethics for their SFOs, or disclose why they do not. The Act was intended to foster corporate environments which encourage employees to question and report unethical and potentially illegal business practices. The Trust has chosen to adopt this Financial Officer Code of Ethics (the “Code”) to encourage its SFOs to act in a manner consistent with the highest principles of ethical conduct.

 

Purposes of the Code: The purposes of this Code are:

 

To promote honest and ethical conduct by the Trust’s SFOs, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

 

To assist the Trust’s SFOs in recognizing and avoiding conflicts of interest, including disclosing to an appropriate person any material transaction or relationship that reasonably could be expected to give rise to such a conflict;

 

To promote full, fair, accurate, timely, and understandable disclosure in reports and documents that the Trust files with, or submit to, the SEC and in other public communications made by the Trust;

 

To promote compliance with applicable laws, rules and regulations;

 

To encourage the prompt internal reporting to an appropriate person of violations of this Code; and

 

To establish accountability for adherence to this Code.

 

Questions about this Code

 

The Trust’s compliance officer designated to oversee compliance with the Trust’s Code of Ethics adopted pursuant to Rule 17j-1 shall serve as Compliance Officer for the implementation and administration of this Code. You should direct your questions about this Code to the Compliance Officer.

 

 

 

Conduct Guidelines

 

The Trust has adopted the following guidelines under which the Trust’s SFOs must perform their official duties and conduct the business affairs of the Trust.

 

Ethical and honest conduct is of paramount importance. The Trust’ s SFOs must act with honesty and integrity and avoid violations of this Code, including the avoidance of actual or apparent conflicts of interest with the Trust in personal and professional relationships.

 

SFOs must disclose material transactions or relationships. The Trust’s SFOs must disclose to the Compliance Officer any actual or apparent conflicts of interest the SFO may have with the Trust that reasonably could be expected to give rise to any violations of this Code. Such conflicts of interest may arise as a result of material transactions or business or personal relationships to which the SFO may be a party. If it is not possible to disclose the matter to the Compliance Officer, it should be disclosed to the Trust’s Chief Financial Officer, Chief Executive Officer or another appropriate person. In addition to disclosing any actual or apparent conflicts of interest in which an SFO is personally involved, the Trust’s SFOs have an obligation to report any other actual or apparent conflicts which they discover or of which they otherwise become aware. If you are unsure whether a particular fact pattern gives rise to a conflict of interest, or whether a particular transaction or relationship is “material,” you should bring the matter to the attention of the Compliance Officer.

 

Standards for quality of information shared with service providers of the Trusts. The Trust’s SFOs must at all times seek to provide information to the Trust’s service providers (adviser, administrator, outside auditor, outside counsel, custodian, etc.) that is accurate, complete, objective, relevant, timely, and understandable.

 

Standards for quality of information included in periodic reports. The Trust’s SFOs must at all times endeavor to ensure full, fair, timely, accurate, and understandable disclosure in the Trust’s periodic reports.

 

Compliance with laws. The Trust’s SFOs must comply with the federal securities laws and other laws and rules applicable to the Trust, such as the Internal Revenue Code.

 

Standard of care. The Trust’s SFOs must at all times act in good faith and with due care, competence and diligence, without misrepresenting material facts or allowing your independent judgment to be subordinated. The Trust’s SFOs must conduct the affairs of the Trust in a responsible manner, consistent with this Code.

 

Confidentiality of information. The Trust’s SFOs must respect and protect the confidentiality of information acquired in the course of their professional duties, except when authorized by the Trust to disclose it or where disclosure is otherwise legally mandated. You may not use confidential information acquired in the course of your work for personal advantage.

 

 

 

Sharing of information and educational standards. The Trust’s SFOs should share information with relevant parties to keep them informed of the business affairs of the Trust, as appropriate, and maintain skills important and relevant to the Trust’s needs.

 

Promote ethical conduct. The Trust’s SFOs should at all times proactively promote ethical behavior among peers in your work environment.

 

Standards for recordkeeping. The Trust’s SFOs must at all times endeavor to ensure that the Trust’s financial books and records are thoroughly and accurately maintained to the best of their knowledge in a manner consistent with applicable laws and this Code.

 

Waivers of this Code

 

You may request a waiver of a provision of this Code by submitting your request in writing to the Compliance Officer for appropriate review. For example, if a family member works for a service provider that prepares the Trust’s financial statements, you may have a potential conflict of interest in reviewing those statements and should seek a waiver of this Code to review the work. An executive officer of the Trust, or another appropriate person (such as a designated Board or Audit Committee member), will decide whether to grant a waiver. All waivers of this code must be disclosed to the Trust’s shareholders to the extent required by SEC rules.

 

Affirmation of the Code

 

Upon adoption of the Code, the Trust’s SFOs must affirm in writing that they have received, read and understand the Code, and annually thereafter must affirm that they have complied with the requirements of the Code. To the extent necessary, the Trust’s Compliance Officer will provide guidance on the conduct required by this Code and the manner in which violations or suspected violations must be reported and waivers must be requested.

 

Reporting Violations

 

In the event that an SFO discovers or, in good faith, suspects a violation of this Code, the SFO must immediately report the violation or suspected violation to the Compliance Officer. The Compliance Officer may, in his or her discretion, consult with another member of the Trust’s senior management or the Board in determining how to address the suspected violation. For example, a Code violation may occur when a periodic report or financial statement of the Trust omits a material fact, or is technically accurate but, in the view of the SFO, is written in a way that obscures its meaning.

 

SFOs who report violations or suspected violations in good faith will not be subject to retaliation of any kind. Reported violations will be investigated and addressed promptly and will be treated as confidential to the extent possible.

 

 

 

Violations of the Code

 

Dishonest or unethical conduct or conduct that is illegal will constitute a violation of this Code, regardless of whether this Code specifically refers to such particular conduct. A violation of this Code may result in disciplinary action, up to and including removal as an SFO of the Trust. A variety of laws apply to the Trust and its operations, including the Securities Act of 1933, the Investment Company Act of 1940, state laws relating to duties owed by Trust officers, and criminal laws. The Trust will report any suspected criminal violations to the appropriate authorities, and will investigate, address and report, as appropriate, non-criminal violations

 

CERTIFICATIONS

 

I, Charles A. Kiraly, certify that:

 

1. I have reviewed this report on Form N-CSR of the Oak Associated Funds (the “registrant”);

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

12/23/2020   /s/ Charles A. Kiraly  
Date  

Charles A. Kiraly

President/Principal Executive Officer

 

 

 

 

CERTIFICATIONS

 

I, Zachary P. Richmond, certify that:

 

1. I have reviewed this report on Form N-CSR of the Oak Associated Funds (the “registrant”);

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

12/23/2020   /s/ Zachary P. Richmond  
Date  

Zachary P. Richmond

Treasurer/Principal Financial Officer

 

 

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR for the period ended October 31, 2020 of the Oak Associates Funds (the “Registrant”).

 

I, Charles A Kiraly, the President and Principal Executive Officer of the Registrant, certify that, to the best of my knowledge:

 

1.the Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m(a) or 78o(d)); and

 

2.the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

12/23/2020   
Date  
   
/s/ Charles A. Kiraly  
Charles A. Kiraly  
President/Principal Executive Officer  

 

This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR for the period ended October 31, 2020 of the Oak Associates Funds (the “Registrant”).

 

I, Zachary P. Richmond, the Treasurer and Principal Executive Officer of the Registrant, certify that, to the best of my knowledge:

 

3.the Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m(a) or 78o(d)); and

 

4.the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

12/23/2020   
Date  
   
/s/ Zachary P. Richmond   
Zachary P. Richmond  
Treasurer/ Principal Financial Officer  

 

This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.

 



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