Form N-CSR Trust for Advised Portfo For: Jun 30

September 7, 2021 2:55 PM EDT

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.


As filed with the U.S. Securities and Exchange Commission on September 7, 2021


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 811-21422



Trust for Advised Portfolios
(Exact name of registrant as specified in charter)



615 East Michigan Street
Milwaukee, Wisconsin 53202
(Address of principal executive offices) (Zip code)



Christopher E. Kashmerick
Trust for Advised Portfolios
2020 East Financial Way, Suite 100
Glendora, CA 91741
(Name and address of agent for service)



(626) 914-7385
Registrant's telephone number, including area code



Date of fiscal year end: June 30

Date of reporting period:  June 30, 2021


Item 1. Reports to Stockholders.

(a)

 

image

 

ZEVENBERGEN GROWTH FUND

INVESTOR CLASS (ZVNBX)

INSTITUTIONAL CLASS (ZVNIX)

 

ZEVENBERGEN GENEA FUND  

INVESTOR CLASS (ZVGNX)

INSTITUTIONAL CLASS (ZVGIX)

 

 

ANNUAL REPORT TO SHAREHOLDERS

 

JUNE 30, 2021

 

 

TABLE OF CONTENTS

 

SHAREHOLDER LETTER FROM FUNDS’ ADVISER

1

   

PERFORMANCE SUMMARY

5

   

ZEVENBERGEN GROWTH FUND

 

   

Allocation of Portfolio Holdings

7

   

Schedule of Investments

8

   

Statement of Assets and Liabilities

10

   

Statement of Operations

11

   

Statements of Changes in Net Assets

12

   

Financial Highlights

13

   

ZEVENBERGEN GENEA FUND

 

   

Allocation of Portfolio Holdings

15

   

Schedule of Investments

16

   

Statement of Assets and Liabilities

18

   

Statement of Operations

19

   

Statements of Changes in Net Assets

20

   

Financial Highlights

21

   

NOTES TO THE FINANCIAL STATEMENTS

23

   

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

30

   

EXPENSE EXAMPLE

32

   

ADDITIONAL INFORMATION

33

   

TRUSTEES AND OFFICER INFORMATION

35

   

PRIVACY NOTICE

37

 

 

image

 

For the twelve months ending June 30, 2021 (Unaudited)

 

Dear Fellow Shareholders,

 

It’s not hyperbole to say that the world was changed in many ways by the events of 2020. Stepping back, one of the bigger epiphanies for the last year (and likely a lasting impact of the crisis) is the remarkable acceleration of the digital transformation. Equity returns in Q3 2020 saw shares of large cap technology companies surge, generating bubble comparisons, driving index gains and confounding many with the sheer velocity and strength of the rally. At the outset of Q4 2020, equities retreated, as global COVID-19 cases climbed, and lack of stimulus progress weakened investor enthusiasm. The brief pullback reversed on promising vaccine news, providing light at the end of the pandemic tunnel. After posting several false starts over recent years, value indices topped growth beginning in Q4 2020, as optimism increased regarding the “re-opening” and an economy potentially reclaiming strength. After rewarding high growth again to start the 2021 calendar year, equity markets swung aggressively toward cyclical and value-based strategies beginning in mid-February of 2021.

 

Continuing to invest in companies benefiting from the significant changes underway in how we live, work and play, the Zevenbergen Funds posted strong relative performance for the fiscal year. The Zevenbergen Growth Fund Investor Share Class (ZVNBX) returned 47.2% and the Zevenbergen Genea Fund Investor Share Class (ZVGNX) increased 69.3%, both exceeding the 43.0% gain of the Funds’ benchmark, the Russell 3000® Growth Index. 

 

Zevenbergen Growth Fund:

 

Fund performance benefited from investments in consumer discretionary (electric transportation, advertising technology) and technology (graphics processors). Performance detractors included health care (biotechnology) and technology (insurance & analytics software). 

 

Contributors:

 

Tesla, Inc. (TSLA):

Founder-led technology company helping accelerate the world’s transition efforts to sustainable energy. We believe the future of transportation is electric, and Tesla continues to demonstrate industry leading technology and demand. Strong fundamental results despite continued challenging industry supply chain dynamics supported price appreciation and led to S&P 500 inclusion late in 2020. Additional product expansions, progress on Gigafactories Shanghai, Berlin and Austin, battery investments, and full-self driving deployments point to a company committed to driving innovation in large addressable markets.

 

NVIDIA Corporation (NVDA):

Founder-led manufacturer of high-powered graphics processing chips. Demand for energy efficient, high-performance devices among gamers, remote workers, digital creators, and cryptocurrency miners continues to support growth. Laptop and desktop upgrades and deferred enterprise spending have been catalysts for Gaming segment wins, while data center processor sales have been propelled by hyperscale customers shifting workloads to the cloud and building artificial intelligence infrastructure. The company recently completed its acquisition of Mellanox Technologies, Ltd. (supplier of end-to-end high-speed networking equipment), expanding its ability to serve global enterprise customers with complex data science and storage needs.

 

The Trade Desk, Inc. (TTD):

Founder-led advertising technology platform company benefitting from the ongoing shift of advertising budgets from offline to online channels. Advertisers continue to be attracted to Trade Desk’s transparent, data-driven alternative to the dominant search and social media companies. The accelerating adoption of streaming video has definitively changed the advertising landscape and Trade Desk’s leadership in Connected TV and a redesigned software platform should enable the company to capitalize on the opportunity.

1 

 

Detractors:

 

BioMarin Pharmaceutical Inc. (BMRN):

Leading biotech company with established products and a pipeline focused on discovering, researching, and commercializing first-to-market treatments for life-threatening rare diseases and medical conditions. Management and investors were surprised and disappointed by new guidance from the FDA which included a request for additional data on the company’s most meaningful pipeline product; potentially delaying approval and commercial launch by two years. The position was sold due to the increasingly binary nature of clinical trial outcomes and lack of transparency around the ultimate timeline for approval.

 

Alteryx, Inc. (AYX):

Founder-led analytics software provider cited elongated sales cycles, smaller than average deal sizes, and “less favorable” business trends as reasons for tepid Q3 2020 results and full year 2020 guidance. The company struggled to onboard new sales hires amid COVID-19 lockdowns and experienced sales and marketing productivity declines, as prospective customers focused on operational continuity projects, not data science initiatives. Given management’s belief that soft performance will likely continue until 2021, the position was sold for better growth alternatives.

 

EverQuote, Inc. (EVER):

Founder-led digital insurance marketplace positioned to capture share of growing insurance carrier sales and online spending. The announced acquisition of a direct-to-consumer health insurance agency overshadowed positive fundamental results and guidance in Q3 2020, as investors contemplated the business and financial model implications. The sudden and unfortunate passing of the company’s Co-Founder/CEO in late November 2020 led to further uncertainty and the position was sold for higher conviction holdings.

 

Zevenbergen Genea Fund:

 

Similar to the Growth Fund, the Genea Fund benefited from strong fundamental growth in innovative, technology-driven companies. Tesla, Inc. was also a top contributor for the period, in addition to investments in industrials (financial technology) and real estate. Alteryx, Inc. and EverQuote, Inc. were also detractors to performance as well as financials (cryptocurrency trading). 

 

Contributors:

 

Please see Growth Fund commentary for discussion on Tesla, Inc.

 

Zillow Group, Inc. (ZG):

Founder-led real estate information and services provider, giving consumers transparency and tools to buy, rent, and sell homes. Extended work-from-home mandates led many individuals to re-evaluate their living situations. For large swaths of the American population, the home is no longer just a place to eat and sleep, but where one works, lives, learns, and plays. This shift in utility, along with favorable mortgage rates, contributed to record traffic on Zillow’s website and mobile app. After an operational pause early in 2020, Zillow resumed its Offers business (home buying program), which adds a fast-growing revenue source and allows it to participate in multiple areas of a real estate transaction.

 

Square, Inc. (SQ):

Founder-led commerce and consumer finance platform, empowering economic participation for entrepreneurs and individuals. In response to the difficult retail environment, Square supported its merchant customers through contactless functionality, such as curbside pickup and online shopping, while reinvigorated mainstream interest in Bitcoin led to strong engagement for Cash App. Longer term, additional investments in Cash App, omnichannel solutions and international markets could help Square become the preferred financial platform for individuals and sellers in the digital age.

2 

Detractors:

 

Please see Growth Fund commentary for discussions on Alteryx, Inc., and EverQuote, Inc.

 

Coinbase Global, Inc. (COIN):

Founder-led financial technology company operating the largest U.S. platform for cryptocurrency trading and custody. Cryptocurrencies (or crypto, for short) are digital mediums of exchange and stores of value secured by complex cryptography (encoded data) offering security, anonymity and independence from central authorities to transaction participants. Earning transaction and subscription fees, Coinbase serves as a trusted digital asset service provider (zero reported security breaches since 2012 founding) and provides equity investors exposure to the rapidly evolving, yet relatively nascent, crypto industry. Following the company’s April 2021 direct public listing, shares reflected volatility in underlying crypto prices.

 

Manager Perspective:

 

Given the stellar gains in U.S. stocks over the twelve months ended June 30, 2021, investors with a cynical view have been trying in vain to predict when stock prices would start falling in earnest. While there is no perfect historical comparison that can be used as a road map for future market performance, we are reminded of a lesson learned from the pandemic: the world is rapidly changing. The continuous evolution and widespread adoption of technology are helping a multitude of industries, allowing users and enterprises to connect, create and achieve more than what was previously thought possible. We believe this is the key to future resilience and growth, and the bigger risk may be overestimating the significance of negatives and underestimating the magnitude of positives.

 

In health and prosperity.

 

Zevenbergen Capital Investments Portfolio Management Team

 

image

 

Brooke de Boutray, CFA, CIC

 

image

 

 

Joe Dennison, CFA

 

image

 

 

Leslie Tubbs, CFA, CIC

 

image

 

 

Anthony Zackery, CFA

 

image

 

Nancy Zevenbergen, CFA, CIC

 

3 

Past performance is no guarantee of future results.

 

Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.

 

Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security. Please refer to the Schedule of Investments in this report for a complete list of fund holdings.

 

Russell 3000® Growth Index: A market capitalization weighted index based on the Russell 3000® Index. The Russell 3000® Growth Index includes companies that display signs of above average growth. The Index is used to provide a gauge of the performance of growth stocks in the U.S. One cannot invest directly in an index.

 

Mutual fund investing involves risk, including the loss of principal. The Funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Non-diversified funds may hold a significant percentage of their assets in the securities of fewer companies and therefore events affecting those companies have a greater impact on the funds than on a diversified fund. If the Funds invest in a few sectors they may have increased exposure to price movements of those sectors. Small and medium capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies.

4 

Zevenbergen Growth Fund

Performance Summary
June 30, 2021 (Unaudited)  

 

 

Comparison of a Hypothetical $50,000 Investment
in the Zevenbergen Growth Fund - Institutional Class
and Russell 3000® Growth Index

 

 

Investment Returns
For the Periods Ended June 30, 2021

 

 

One Year

 

Three Year*

 

Five Year*

 

Since Inception*

Zevenbergen Growth Fund **

 

 

 

 

 

 

 

Investor Class

47.22%

 

37.84%

 

36.42%

 

28.29%

Institutional Class

      47.63%***

 

38.20%

 

36.78%

 

28.62%

Russell 3000® Growth Index

42.99%

 

24.47%

 

23.31%

 

20.74%

 

*

Annualized.

**

Inception date on August 31, 2015.

*** Returns are based on unadjusted net asset values and differ from returns shown in Financial Highlights which include adjustments in accordance with GAAP.

 

5 

 

 

Zevenbergen Genea Fund

Performance Summary
June 30, 2021 (Unaudited)

 

 

Comparison of a Hypothetical $50,000 Investment
in the Zevenbergen Genea Fund - Institutional Class
and Russell 3000® Growth Index

 

 

Investment Returns

For the Periods Ended June 30, 2021

 

 

One Year

 

Three Year*

 

Five Year*

 

Since Inception*

Zevenbergen Genea Fund **

 

 

 

 

 

 

 

Investor Class

      69.27%***

 

39.68%

 

43.20%

 

34.61%

Institutional Class

      69.80%***

 

40.01%

 

43.59%

 

34.95%

Russell 3000® Growth Index

42.99%

 

24.47%

 

23.31%

 

20.74%

 


*

Annualized.


**

Inception date on August 31, 2015.


*** Returns are based on unadjusted net asset values and differ from returns shown in Financial Highlights which include adjustments in accordance with GAAP.

 

6 

 

Zevenbergen Growth Fund

Allocation of Portfolio Holdings

(Calculated as a percentage of Total Investments)

June 30, 2021 (Unaudited)

 

 

 


*

Short-Term Investments consist of amounts held in money market funds. The Fund strategy does not seek to hold large cash balances (more than 5% of total investments), and any significant cash holdings are typically due to trade settlement timing.

 

7 

 

 

Zevenbergen Growth Fund
Schedule of Investments
As of June 30, 2021

 

 

Number of

Shares

 

 

 

 

Value

 

 

 

 

COMMON STOCKS 98.7%

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY 35.6%

 

 

 

 

 

16,675

 

 

Airbnb, Inc. (a)

 

 

$

2,553,610

 

1,200

 

 

Amazon.com, Inc. (a)

 

 

 

4,128,192

 

25,485

 

 

Chegg, Inc. (a)

 

 

 

2,118,058

 

28,000

 

 

Chewy, Inc. (a)

 

 

 

2,231,880

 

16,500

 

 

Coursera, Inc. (a)

 

 

 

652,740

 

4,030

 

 

MercadoLibre, Inc. (a)

 

 

 

6,277,894

 

5,500

 

 

Netflix, Inc. (a)

 

 

 

2,905,155

 

24,700

 

 

Peloton Interactive, Inc. (a)

 

 

 

3,063,294

 

13,200

 

 

Tesla, Inc. (a)

 

 

 

8,972,040

 

91,000

 

 

The Trade Desk, Inc. (a)

 

 

 

7,039,760

 

73,575

 

 

Uber Technologies, Inc. (a)

 

 

 

3,687,579

 

 

 

 

 

 

 

 

43,630,202

 

 

 

 

FINANCIALS 3.8%

 

 

 

 

 

3,950

 

 

Coinbase Global, Inc. (a)

 

 

 

1,000,535

 

9,975

 

 

Goosehead Insurance, Inc.

 

 

 

1,269,817

 

10,250

 

 

Lemonade, Inc. (a)

 

 

 

1,121,453

 

11,500

 

 

Silvergate Capital Corporation (a)

 

 

 

1,303,180

 

 

 

 

 

 

 

 

4,694,985

 

 

 

 

HEALTH CARE 13.4%

 

 

 

 

 

23,350

 

 

Adaptive Biotechnologies Corporation (a)

 

 

 

954,081

 

12,000

 

 

Castle Biosciences, Inc. (a)

 

 

 

879,960

 

48,850

 

 

Exact Sciences Corporation (a)

 

 

 

6,072,543

 

35,000

 

 

GoodRx Holdings, Inc. (a)

 

 

 

1,260,350

 

7,225

 

 

Seagen Inc. (a)

 

 

 

1,140,683

 

25,325

 

 

Teladoc Health, Inc. (a)

 

 

 

4,211,294

 

6,050

 

 

Veeva Systems Inc. (a)

 

 

 

1,881,248

 

 

 

 

 

 

 

 

16,400,159

 

 

 

 

INDUSTRIALS 7.6%

 

 

 

 

 

22,600

 

 

Desktop Metal, Inc. (a)

 

 

 

259,900

 

14,300

 

 

PayPal Holdings, Inc. (a)

 

 

 

4,168,164

 

19,775

 

 

Square, Inc. (a)

 

 

 

4,821,145

 

 

 

 

 

 

 

 

9,249,209

 

 

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

 

8 

 

 

Zevenbergen Growth Fund
Schedule of Investments (Continued)

As of June 30, 2021

 

 

Number of

Shares

 

 

 

 

Value

 

 

 

 

REAL ESTATE 3.6%

 

 

 

 

 

36,200

 

 

Zillow Group, Inc. Class C (a)

 

 

$

4,424,364

 

 

 

 

 

 

 

 

 

 

 

 

 

TECHNOLOGY 33.5%

 

 

 

 

 

2,315

 

 

Coupa Software Incorporated (a)

 

 

 

606,785

 

4,450

 

 

Fiverr International Ltd. ― ADR (a)

 

 

 

1,079,081

 

13,900

 

 

Global-e Online Ltd. ― ADR (a)

 

 

 

793,412

 

8,000

 

 

NVIDIA Corporation

 

 

 

6,400,800

 

17,275

 

 

Okta, Inc. (a)

 

 

 

4,226,847

 

4,200

 

 

Sea Limited ― ADR (a)

 

 

 

1,153,320

 

5,300

 

 

ServiceNow, Inc. (a)

 

 

 

2,912,615

 

5,650

 

 

Shopify Inc. ― ADR (a)

 

 

 

8,254,537

 

57,625

 

 

Snap Inc. (a)

 

 

 

3,926,567

 

8,500

 

 

Snowflake Inc. (a)

 

 

 

2,055,300

 

22,150

 

 

Sprout Social, Inc. (a)

 

 

 

1,980,653

 

3,350

 

 

Twilio Inc. (a)

 

 

 

1,320,436

 

8,500

 

 

UiPath, Inc. (a)

 

 

 

577,405

 

24,400

 

 

Unity Software Inc. (a)

 

 

 

2,679,852

 

7,800

 

 

Zoom Video Communications, Inc. (a)

 

 

 

3,018,834

 

 

 

 

 

 

 

 

40,986,444

 

 

 

 

TELECOMMUNICATIONS 1.2%

 

 

 

 

 

46,050

 

 

fuboTV Inc. (a)

 

 

 

1,478,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL COMMON STOCKS

 

 

 

 

 

 

 

 

(Cost $71,455,954)

 

 

$

120,864,028

 

 

 

 

 

 

 

 

 

 

 

 

 

SHORT-TERM INVESTMENTS 0.9%

 

 

 

 

 

1,081,861

 

 

First American U.S. Treasury Money Market Fund, Class Z, 0.06%(b)

 

 

 

1,081,861

 

 

 

 

TOTAL SHORT-TERM INVESTMENTS (Cost $1,081,861)

 

 

$

1,081,861

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS 99.6% (Cost $72,537,815)

 

 

 

121,945,889

 

 

 

 

Other Assets in Excess of Liabilities ― 0.4%

 

 

 

478,778

 

 

 

 

TOTAL NET ASSETS 100.0%

 

 

$

122,424,667

 

 


ADR: American Depository Receipt.

(a): Non Income Producing.

(b): Variable rate security. The rate disclosed is the annualized seven-day effective yield as of June 30, 2021.

 

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

 

9 

 

 

Zevenbergen Growth Fund
Statement of Assets and Liabilities

June 30, 2021

 

 

Assets

 

 

 

Investments in securities, at value (cost $72,537,815)

 

$

121,945,889

 

Dividend and interest receivable

 

 

1,281

 

Receivable for Fund shares sold

 

 

1,252,021

 

Receivable for investments sold

 

 

1,407,052

 

Prepaid expenses

 

 

22,777

 

Total Assets

 

 

124,629,020

 

 

 

 

 

 

Liabilities

 

 

 

 

Payable for Fund shares redeemed

 

 

10,572

 

Payable for securities purchased

 

 

1,950,232

 

Payable to Adviser

 

 

136,234

 

Shareholder Service Fees

 

 

23,256

 

Distribution fees - Investor Class

 

 

13,710

 

Accrued other expenses and other liabilities

 

 

70,349

 

Total Liabilities

 

 

2,204,353

 

 

 

 

 

 

Net Assets

 

$

122,424,667

 

 

 

 

 

 

Components of Net Assets

 

 

 

 

Paid-in capital

 

$

71,722,395

 

Total distributable earnings

 

 

50,702,272

 

Net Assets

 

$

122,424,667

 

 

 

 

 

 

Investor Class:

 

 

 

 

Net assets

 

$

40,471,655

 

Shares outstanding (unlimited number of shares authorized, no par value)

 

 

946,910

 

Net asset value, offering and redemption price per share *

 

$

42.74

 

 

 

 

 

 

Institutional Class:

 

 

 

 

Net assets

 

$

81,953,012

 

Shares outstanding (unlimited number of shares authorized, no par value)

 

 

1,888,696

 

Net asset value, offering and redemption price per share *

 

$

43.39

 

 

* Shares redeemed or exchanged within 90 days of purchase are charged a 1.00% redemption fee (Note 9).

 

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

 

10 

 

 

Zevenbergen Growth Fund
Statement of Operations
For the Year Ended June 30, 2021

 

 

Investment Income

 

 

 

Dividends and interest income

 

$

52,462

 

 

 

 

 

 

Expenses

 

 

 

 

Advisory fees

 

 

806,382

 

Administration fees (Note 3)

 

 

124,117

 

Shareholder servicing fees (Note 6)

 

 

119,656

 

Distribution fees - Investor Class

 

 

94,289

 

Transfer agent fees and expenses (Note 3)

 

 

55,450

 

Registration fees

 

 

37,624

 

Legal fees

 

 

29,310

 

Custody fees (Note 3)

 

 

17,863

 

Trustees’ fees

 

 

17,548

 

Audit fees

 

 

15,695

 

Compliance fees (Note 3)

 

 

12,680

 

Shareholder reporting fees

 

 

5,205

 

Miscellaneous expenses

 

 

4,758

 

Insurance fees

 

 

2,919

 

Total expenses

 

 

1,343,496

 

Expenses waived by the Adviser (Note 3)

 

 

(222,372

)

         

Net Expenses

 

 

1,121,124

 

 

 

 

 

 

Net Investment Loss

 

 

(1,068,662

)

 

 

 

 

 

Realized and Unrealized Gain on Investments

 

 

 

 

Net realized gain on investments

 

 

2,557,399

 

Change in unrealized appreciation on investments

 

 

26,632,067

 

Net Realized and Unrealized Gain on Investments

 

 

29,189,466

 

 

 

 

 

 

Net Increase in Net Assets from Operations

 

$

28,120,804

 

 

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

 

11 

Zevenbergen Growth Fund
Statements of Changes in Net Assets
 

 

Operations   For the Year
Ended
June 30, 2021
    For the Year
Ended
June 30, 2020
 
Net investment loss   $ (1,068,662 )   $ (272,739 )
Net realized gain (loss) on investments     2,557,399       (499,239 )
Net change in unrealized appreciation on investments     26,632,067       15,723,445  
Net Increase in Net Assets from Operations     28,120,804       14,951,467  
                 
Distributions to shareholders from                
Net realized gain on investments                
Investor Class     (28,529 )      
Institutional Class     (44,887 )      
Total distributions to shareholders     (73,416 )      
                 
                 
Capital Transactions                
Proceeds from shares sold                
Investor Class     43,165,174       13,574,932  
Institutional Class     52,153,468       15,697,643  
Proceeds from shares reinvested                
Investor Class     28,457        
Institutional Class     44,273        
Cost of shares redeemed                
Investor Class     (30,756,770 )     (3,969,298 )
Institutional Class     (26,179,707 )     (3,633,206 )
Redemption fees                
Investor Class     49,185       7,748  
Institutional Class     80,175       17,169  
Net Increase in Net Assets from Capital Share Transactions     38,584,255       21,694,988  
                 
Total Increase in Net Assets     66,631,643       36,646,455  
                 
Net Assets                
Beginning of year     55,793,024       19,146,569  
End of year   $ 122,424,667     $ 55,793,024  
                 
Capital Shares Transactions                
Investor Class                
Shares sold     1,100,673       601,012  
Shares reinvested     631        
Shares redeemed     (790,935 )     (199,182 )
Net increase in shares outstanding     310,369       401,830  
                 
Institutional Class                
Shares sold     1,321,445       672,998  
Shares reinvested     968        
Shares redeemed     (702,266 )     (169,981 )
Net increase in shares outstanding     620,147       503,017  

 

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

 

12 

 

Zevenbergen Growth Fund
Financial Highlights
Investor Class

 

For a Capital Share Outstanding Throughout Each Year Presented:

 

    For the Year
Ended
June 30, 2021
    For the Year
Ended
June 30, 2020
    For the Year
Ended
June 30, 2019
    For the Year
Ended
June 30, 2018
    For the Year
Ended
June 30, 2017
 
Net Asset Value, Beginning of Year   $ 29.05     $ 19.00     $ 16.33     $ 12.27     $ 9.05  
                                         
Gain (Loss) from Investment Operations:                                        
Net investment loss (1)     (0.49 )     (0.27 )     (0.20 )     (0.17 )     (0.13 )
Net realized and unrealized gain on investments     14.16       10.30       2.85       4.22       3.35  
Total Gain from Investment Operations     13.67       10.03       2.65       4.05       3.22  
                                         
Less Distributions:     (0.03 )                        
                                         
Redemption Fee Proceeds (1)     0.05       0.02       0.02       0.01        
                                         
Net Asset Value, End of Year   $ 42.74     $ 29.05     $ 19.00     $ 16.33     $ 12.27  
                                         
Total Return     47.22 %     52.89 %     16.35 %     33.09 %     35.58 %
                                         
Supplemental Data and Ratios:                                        
Net assets, end of year (in thousands)   $ 40,472     $ 18,492     $ 4,460     $ 1,292     $ 194  
Ratio of expenses to average net assets                                        
Before fees waived and reimbursed by the Adviser     1.52 %     2.14 %     2.78 %     3.63 %     5.89 %
After fees waived and reimbursed by the Adviser     1.30 %     1.30 %     1.30 %     1.30 %     1.30 %
Ratio of net investment loss to average net assets                                        
Before fees waived and reimbursed by the Adviser     -1.47 %     -2.12 %     -2.69 %     -3.53 %     -5.76 %
After fees waived and reimbursed by the Adviser     -1.25 %     -1.28 %     -1.21 %     -1.20 %     -1.17 %
Portfolio turnover rate (2)     43.12 %     38.74 %     28.68 %     31.12 %     25.90 %

 


(1) Per share amounts have been calculated using the average shares method

(2) Portfolio turnover rate is calculated for the Fund without distinguishing between classes.

 

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

 

13 

 

Zevenbergen Growth Fund
Financial Highlights
Institutional Class

 

For a Capital Share Outstanding Throughout Each Year Presented:

 

    For the Year
Ended
June 30, 2021
    For the Year
Ended
June 30, 2020
    For the Year
Ended
June 30, 2019
    For the Year
Ended
June 30, 2018
    For the Year
Ended
June 30, 2017
 
Net Asset Value, Beginning of Year   $ 29.40     $ 19.18     $ 16.45     $ 12.33     $ 9.07  
                                         
Gain (Loss) from Investment Operations:                                        
Net investment loss (1)     (0.37 )     (0.20 )     (0.15 )     (0.13 )     (0.09 )
Net realized and unrealized gain on investments     14.34       10.40       2.87       4.24       3.35  
Total Gain from Investment Operations     13.97       10.20       2.72       4.11       3.26  
                                         
Less Distributions:     (0.03 )                        
                                         
Redemption Fee Proceeds (1)     0.05       0.02       0.01       0.01        *
                                         
Net Asset Value, End of Year   $ 43.39     $ 29.40     $ 19.18     $ 16.45     $ 12.33  
                                         
Total Return     47.68 %     53.28 %     16.60 %     33.41 %     35.94 %
                                         
Supplemental Data and Ratios:                                        
Net assets, end of year (in thousands)   $ 81,953     $ 37,302     $ 14,686     $ 10,970     $ 6,427  
Ratio of expenses to average net assets                                        
Before fees waived and reimbursed by the Adviser     1.22 %     1.90 %     2.52 %     3.55 %     5.86 %
After fees waived and reimbursed by the Adviser     1.00 %     1.00 %     1.00 %     1.00 %     1.00 %
Ratio of net investment loss to average net assets                                        
Before fees waived and reimbursed by the Adviser     -1.17 %     -1.88 %     -2.43 %     -3.45 %     -5.72 %
After fees waived and reimbursed by the Adviser     -0.95 %     -0.98 %     -0.91 %     -0.90 %     -0.87 %
Portfolio turnover rate (2)     43.12 %     38.74 %     28.68 %     31.12 %     25.90 %

 


* Less than $0.01 per share

(1) Per share amounts have been calculated using the average shares method

(2) Portfolio turnover rate is calculated for the Fund without distinguishing between classes.

 

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

 

14 

 

Zevenbergen Genea Fund
Allocation of Portfolio Holdings
(Calculated as a percentage of Total Investments)
June 30, 2021 (Unaudited)

 

 

 


* Short-Term Investments consist of amounts held in money market funds. The Fund strategy does not seek to hold large cash balances (more than 5% of total investments), and any significant cash holdings are typically due to trade settlement timing.

 

15 

 

Zevenbergen Genea Fund
Schedule of Investments
As of June 30, 2021

 

Number of            
Shares         Value  
        COMMON STOCKS ― 99.3%        
        CONSUMER DISCRETIONARY ― 38.8%        
  31,202     Airbnb, Inc. (a)   $ 4,778,274  
  2,520     Amazon.com, Inc. (a)     8,669,203  
  65,850     Chegg, Inc. (a)     5,472,793  
  55,500     Chewy, Inc. (a)     4,423,905  
  37,100     Coursera, Inc. (a)     1,467,676  
  7,575     MercadoLibre, Inc. (a)     11,800,259  
  8,500     Netflix, Inc. (a)     4,489,785  
  57,250     Peloton Interactive, Inc. (a)     7,100,145  
  42,425     Poshmark, Inc. (a)     2,025,370  
  26,205     Tesla, Inc. (a)     17,811,539  
  176,400     The Trade Desk, Inc. (a)     13,646,304  
  139,400     Uber Technologies, Inc. (a)     6,986,728  
              88,671,981  
        FINANCIALS ― 4.5%        
  12,000     Coinbase Global, Inc. (a)     3,039,600  
  45,815     Lemonade, Inc. (a)     5,012,619  
  18,900     Silvergate Capital Corporation (a)     2,141,748  
              10,193,967  
        HEALTH CARE ― 0.9%        
  65,500     Green Thumb Industries Inc. ADR (a)     2,161,500  
                 
        INDUSTRIALS ― 7.4%        
  19,830     Axon Enterprise, Inc. (a)     3,505,944  
  21,600     Bill.com Holdings, Inc. (a)     3,956,688  
  38,300     Square, Inc. (a)     9,337,540  
              16,800,172  
        REAL ESTATE ― 5.1%        
  94,615     Zillow Group, Inc. Class C (a)     11,563,845  
                 
        TECHNOLOGY ― 41.6%        
  39,900     Bumble Inc. (a)     2,298,240  
  9,830     Coupa Software Incorporated (a)     2,576,541  
  10,860     Datadog, Inc. (a)     1,130,309  
  39,750     Global-e Online Ltd. ADR (a)     2,268,930  
  17,240     MongoDB, Inc. (a)     6,232,605  
  14,525     NVIDIA Corporation     11,621,452  
  24,575     Okta, Inc. (a)     6,013,011  
  47,591     Olo Inc. (a)     1,779,427  

 

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

 

16 

 

Zevenbergen Genea Fund
Schedule of Investments (Continued)
As of June 30, 2021

 

Number of            
Shares         Value  
        TECHNOLOGY ― 41.6% (Continued)        
  82,030     Pinterest, Inc. (a)   $ 6,476,269  
  9,500     Shopify Inc. (a)     13,879,310  
  123,800     Snap Inc. (a)     8,435,732  
  23,800     Snowflake Inc. (a)     5,754,840  
  42,540     Sprout Social, Inc. (a)     3,803,927  
  19,350     Twilio Inc. (a)     7,626,996  
  24,300     UiPath, Inc. (a)     1,650,699  
  46,000     Unity Software Inc. (a)     5,052,180  
  21,000     Zoom Video Communications, Inc. (a)     8,127,630  
              94,728,098  
        TELECOMMUNICATIONS ― 1.0%        
  74,100     fuboTV Inc. (a)     2,379,352  
                 
        TOTAL COMMON STOCKS        
        (Cost $152,428,981)   $ 226,498,915  
                 
        SHORT-TERM INVESTMENTS ― 0.7%        
  1,496,779     First American U.S. Treasury Money Market Fund, Class Z, 0.06%(b)     1,496,779  
        TOTAL SHORT-TERM INVESTMENTS (Cost $1,496,779)   $ 1,496,779  
                 
        TOTAL INVESTMENTS ― 100.0% (Cost $153,925,760)     227,995,694  
        Liabilities in Excess of Other Assets ― 0.0%     (98,064 )
        TOTAL NET ASSETS ― 100.0%   $ 227,897,630  

 


ADR: American Depository Receipt.

(a): Non Income Producing.

(b): Variable rate security. The rate disclosed is the annualized seven-day effective yield as of June 30, 2021.

 

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

 

17 

 

Zevenbergen Genea Fund

Statement of Assets and Liabilities

June 30, 2021

 

Assets

 

 

 

Investments in securities, at value (cost $153,925,760)

 

$

227,995,694

 

Receivable for Fund shares sold

 

 

671,952

 

Receivable for investments sold

 

 

1,312,329

 

Dividends and Interest receivable

 

 

2,277

 

Prepaid expenses

 

 

35,214

 

Total Assets

 

 

230,017,466

 

 

 

 

 

 

Liabilities

 

 

 

 

Payable for Fund shares redeemed

 

 

89,639

 

Payable for securities purchased

 

 

1,495,736

 

Payable to Adviser

 

 

350,932

 

Shareholder Service Fees

 

 

51,535

 

Distribution fees - Investor Class

 

 

56,691

 

Accrued other expenses and other liabilities

 

 

75,303

 

Total Liabilities

 

 

2,119,836

 

 

 

 

 

 

Net Assets

 

$

227,897,630

 

 

 

 

 

 

Components of Net Assets

 

 

 

 

Paid-in capital

 

$

158,434,120

 

Total distributable earnings

 

 

69,463,510

 

Net Assets

 

$

227,897,630

 

 

 

 

 

 

Investor Class:

 

 

 

 

Net assets

 

$

120,715,711

 

Shares outstanding (unlimited number of shares authorized, no par value)

 

 

2,140,332

 

Net asset value, offering and redemption price per share *

 

$

56.40

 

 

 

 

 

 

Institutional Class:

 

 

 

 

Net assets

 

$

107,181,919

 

Shares outstanding (unlimited number of shares authorized, no par value)

 

 

1,872,478

 

Net asset value, offering and redemption price per share *

 

$

57.24

 

 

* Shares redeemed or exchanged within 90 days of purchase are charged a 1.00% redemption fee (Note 9). 

 

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


18 

Zevenbergen Genea Fund

Statement of Operations

For the Year Ended June 30, 2021

 

Investment Income

 

 

 

Dividends and interest income

 

$

8,832

 

 

 

 

 

 

Expenses

 

 

 

 

Advisory fees

 

 

1,359,261

 

Distribution fees - Investor Class

 

 

218,645

 

Shareholder servicing fees (Note 6)

 

 

200,677

 

Administration fees (Note 3)

 

 

119,624

 

Transfer agent fees and expenses (Note 3)

 

 

61,075

 

Registration fees

 

 

42,620

 

Legal fees

 

 

32,289

 

Trustees’ fees

 

 

16,956

 

Custody fees (Note 3)

 

 

16,176

 

Audit fees

 

 

15,695

 

Compliance fees (Note 3)

 

 

11,683

 

Shareholder reporting fees

 

 

9,125

 

Miscellaneous expenses

 

 

6,846

 

Insurance fees

 

 

3,196

 

Total expenses

 

 

2,113,868

 

Expenses waived by the Adviser (Note 3)

 

 

(178,337

)

 

 

 

 

 

Net Expenses

 

 

1,935,531

 

 

 

 

 

 

Net Investment Loss

 

 

(1,926,699

)

 

 

 

 

 

Realized and Unrealized Gain on Investments

 

 

 

 

Net realized gain on investments

 

 

229,375

 

Change in unrealized appreciation on investments

 

 

45,466,313

 

Net Realized and Unrealized Gain on Investments

 

 

45,695,688

 

 

 

 

 

 

Net Increase in Net Assets from Operations

 

$

43,768,989

 

 

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


19 

Zevenbergen Genea Fund

Statements of Changes in Net Assets

 

 

 

 

For the Year
Ended

 

 

For the Year
Ended

 

Operations

 

June 30, 2021

 

 

June 30, 2020

 

Net investment loss

 

$

(1,926,699

)

 

$

(503,696

)

Net realized gain (loss) on investments

 

 

229,375

 

 

 

(2,559,382

)

Net change in unrealized appreciation on investments

 

 

45,466,313

 

 

 

17,999,600

 

Net Increase in Net Assets from Operations

 

 

43,768,989

 

 

 

14,936,522

 

 

 

 

 

 

 

 

 

 

Capital Transactions

 

 

 

 

 

 

 

 

Proceeds from shares sold

 

 

 

 

 

 

 

 

Investor Class

 

 

123,929,435

 

 

 

13,742,698

 

Institutional Class

 

 

93,591,974

 

 

 

6,071,493

 

Cost of shares redeemed

 

 

 

 

 

 

 

 

Investor Class

 

 

(61,416,630

)

 

 

(17,810,000

)

Institutional Class

 

 

(30,234,551

)

 

 

(4,320,587

)

Redemption fees

 

 

 

 

 

 

 

 

Investor Class

 

 

176,080

 

 

 

12,696

 

Institutional Class

 

 

140,670

 

 

 

10,340

 

Net Increase/(Decrease) in Net Assets from Capital Share Transactions

 

 

126,186,978

 

 

 

(2,293,360

)

 

 

 

 

 

 

 

 

 

Total Increase in Net Assets

 

 

169,955,967

 

 

 

12,643,162

 

 

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

 

 

 

 

Beginning of year

 

 

57,941,663

 

 

 

45,298,501

 

End of year

 

$

227,897,630

 

 

$

57,941,663

 

 

 

 

 

 

 

 

 

 

Capital Shares Transactions

 

 

 

 

 

 

 

 

Investor Class

 

 

 

 

 

 

 

 

Shares sold

 

 

2,373,277

 

 

 

544,623

 

Shares reinvested

 

 

 

 

 

 

Shares redeemed

 

 

(1,215,594

)

 

 

(815,815

)

Net increase/(decrease) in shares outstanding

 

 

1,157,683

 

 

 

(271,192

)

 

 

 

 

 

 

 

 

 

Institutional Class

 

 

 

 

 

 

 

 

Shares sold

 

 

1,715,120

 

 

 

248,310

 

Shares reinvested

 

 

 

 

 

 

Shares redeemed

 

 

(588,952

)

 

 

(201,126

)

Net increase in shares outstanding

 

 

1,126,168

 

 

 

47,184

 

 

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


20 

Zevenbergen Genea Fund
Financial Highlights
Investor Class

 

For a Capital Share Outstanding Throughout Each Year Presented:

  

 

 

For the Year
Ended
June 30, 2021

 

 

For the Year
Ended
June 30, 2020

 

 

For the Year
Ended
June 30, 2019

 

 

For the Year
Ended
June 30, 2018

 

 

For the Year
Ended
June 30, 2017

 

Net Asset Value, Beginning of Year

 

$

33.34

 

 

$

23.12

 

 

$

20.77

 

 

$

14.20

 

 

$

9.40

 

Gain (Loss) from Investment Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment loss (1)

 

 

(0.69

)

 

 

(0.32

)

 

 

(0.29

)

 

 

(0.23

)

 

 

(0.16

)

Net realized and unrealized gain on investments

 

 

23.65

 

 

 

10.53

 

 

 

2.68

 

 

 

6.79

 

 

 

4.96

 

Total Gain from Investment Operations

 

 

22.96

 

 

 

10.21

 

 

 

2.39

 

 

 

6.56

 

 

 

4.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Distributions:

 

 

 

 

 

 

 

 

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption Fee Proceeds (1)

 

 

0.10

 

 

 

0.01

 

 

 

0.02

 

 

 

0.01

 

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Year

 

$

56.40

 

 

$

33.34

 

 

$

23.12

 

 

$

20.77

 

 

$

14.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Return

 

 

69.17

%

 

 

44.20

%

 

 

11.72

%

 

 

46.27

%

 

 

51.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data and Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets, end of year (in thousands)

 

$

120,716

 

 

$

32,763

 

 

$

28,986

 

 

$

12,633

 

 

$

2,074

 

Ratio of expenses to average net assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before fees waived and reimbursed by the Adviser

 

 

1.48

%

 

 

1.98

%

 

 

2.09

%

 

 

3.35

%

 

 

7.96

%

After fees waived and reimbursed by the Adviser

 

 

1.37

%

 

 

1.40

%

 

 

1.40

%

 

 

1.40

%

 

 

1.40

%

Ratio of net investment loss to average net assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before fees waived and reimbursed by the Adviser

 

 

-1.47

%

 

 

-1.96

%

 

 

-2.04

%

 

 

-3.27

%

 

 

-7.89

%

After fees waived and reimbursed by the Adviser

 

 

-1.36

%

 

 

-1.38

%

 

 

-1.35

%

 

 

-1.32

%

 

 

-1.33

%

Portfolio turnover rate (2)

 

 

32.40

%

 

 

61.63

%

 

 

35.25

%

 

 

22.35

%

 

 

67.59

%

 

*

Less than $0.01 per share

(1)

Per share amounts have been calculated using the average shares method

(2)

Portfolio turnover rate is calculated for the Fund without distinguishing between classes.

 

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


21 

Zevenbergen Genea Fund
Financial Highlights
Institutional Class

 

For a Capital Share Outstanding Throughout Each Year Presented:

 

 

 

For the Year
Ended
June 30, 2021

 

 

For the Year
Ended
June 30, 2020

 

 

For the Year
Ended
June 30, 2019

 

 

For the Year
Ended
June 30, 2018

 

 

For the Year
Ended
June 30, 2017

 

Net Asset Value, Beginning of Year

 

$

33.74

 

 

$

23.33

 

 

$

20.93

 

 

$

14.30

 

 

$

9.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) from Investment Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment loss (1)

 

 

(0.54

)

 

 

(0.25

)

 

 

(0.22

)

 

 

(0.18

)

 

 

(0.12

)

Net realized and unrealized gain on investments

 

 

23.94

 

 

 

10.65

 

 

 

2.66

 

 

 

6.80

 

 

 

4.99

 

Total Gain from Investment Operations

 

 

23.40

 

 

 

10.40

 

 

 

2.44

 

 

 

6.62

 

 

 

4.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Distributions:

 

 

 

 

 

 

 

 

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption Fee Proceeds (1)

 

 

0.10

 

 

 

0.01

 

 

 

0.02

 

 

 

0.01

 

 

 

0.02

 

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value, End of Year

 

$

57.24

 

 

$

33.74

 

 

$

23.33

 

 

$

20.93

 

 

$

14.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Return

 

 

69.65

%

 

 

44.62

%

 

 

11.87

%

 

 

46.36

%

 

 

51.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data and Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets, end of year (in thousands)

 

$

107,182

 

 

$

25,179

 

 

$

16,312

 

 

$

9,073

 

 

$

3,669

 

Ratio of expenses to average net assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before fees waived and reimbursed by the Adviser

 

 

1.18

%

 

 

1.70

%

 

 

1.80

%

 

 

3.21

%

 

 

8.08

%

After fees waived and reimbursed by the Adviser

 

 

1.07

%

 

 

1.10

%

 

 

1.10

%

 

 

1.10

%

 

 

1.10

%

Ratio of net investment loss to average net assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before fees waived and reimbursed by the Adviser

 

 

-1.17

%

 

 

-1.68

%

 

 

-1.75

%

 

 

-3.14

%

 

 

-8.02

%

After fees waived and reimbursed by the Adviser

 

 

-1.06

%

 

 

-1.08

%

 

 

-1.05

%

 

 

-1.03

%

 

 

-1.04

%

Portfolio turnover rate (2)

 

 

32.40

%

 

 

61.63

%

 

 

35.25

%

 

 

22.35

%

 

 

67.59

%

 

(1)

Per share amounts have been calculated using the average shares method

(2)

Portfolio turnover rate is calculated for the Fund without distinguishing between classes.

 

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


22 

Zevenbergen Funds

Notes to the Financial Statements

June 30, 2021

  

 

NOTE 1 – ORGANIZATION

 

Zevenbergen Growth Fund (the “Growth Fund”) and Zevenbergen Genea Fund (the “Genea Fund”; each a “Fund” collectively the “Funds”) are non-diversified series of Trust for Advised Portfolios (the “Trust”). The Trust, a Delaware Statutory Trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company. Zevenbergen Capital Investments LLC (the “Adviser”) serves as the investment manager to the Funds. The inception date of the Funds was August 31, 2015. The Funds’ investment objective is long-term capital appreciation.

 

Growth Fund and Genea Fund, each, currently offer two classes of shares, Institutional Class and Investor Class. Each share class represents an equal interest in the Fund, except the difference of class specific expenses, which reflects the difference in the range of services provided to each class. Income, expenses (other than class specific), and realized and unrealized gains and losses on investments are allocated daily to each class based on relative net assets.

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of significant accounting policies consistently followed by the Funds in preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for investment companies. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946. The presentation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the period. Actual results may differ from those estimates.

 

A. Securities Valuation

 

The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). The inputs or methodology used in determining the value of each Fund’s investments are not necessarily an indication of the risk associated with investing in those securities.

 

Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized into three broad categories as defined below:

 

Level 1 -  Quoted prices in active markets for identical securities. An active market for a security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.

 

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

 

Level 3 -  Significant unobservable inputs, including the Funds’ own assumptions in determining fair value of investments.

 

Equity securities that are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

 

Short-term investments classified as money market instruments are valued at NAV. These investments are categorized as Level 1 of the fair value hierarchy.


23 

Zevenbergen Funds

Notes to the Financial Statements (Continued)

June 30, 2021

 

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the fair values of the Funds’ investments in each category investment type as of June 30, 2021:

 

Growth Fund

  

Description

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

120,864,028

 

 

$

 

 

$

 

 

$

120,864,028

 

Short-Term Investments

 

 

1,081,861

 

 

 

 

 

 

 

 

 

1,081,861

 

Total Assets

 

$

121,945,889

 

 

$

 

 

$

 

 

$

121,945,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Genea Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Description

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

  $

226,498,915

 

 

$

 

 

 

 

226,498,915

 

Short-Term Investments

 

 

1,496,779

 

 

 

 

 

 

 

 

 

1,496,779

 

Total Assets

 

$

227,995,694

 

 

$

 

 

$

 

 

$

227,995,694

 

 

Please refer to the Schedule of Investments for further classification.

 

B. Security Transactions, Investment Income and Distributions

 

The Funds record security transactions based on trade date. Realized gains and losses on sales of securities are calculated by comparing the original cost of the specifically identified security lot sold with the net sales proceeds. Dividend income is recognized on the ex-dividend date, and interest income is recognized on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.

 

C. Federal Income Taxes

 

The Funds have elected to be taxed as Regulated Investment Companies (“RIC”) under the U.S. Internal Revenue Code of 1986, as amended, and intend to maintain this qualification and to distribute substantially all of their net taxable income to their shareholders. Therefore, no provision is made for federal income taxes. Due to the timing of dividend distributions (if any) and the differences in accounting for income and realized gains and losses for financial statement and federal income tax purposes, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses are recorded by the Funds.

 

Management of the Funds is required to analyze all open tax years, as defined by IRS statute of limitations for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the period ended June 30, 2021, the Funds did not have a liability for any unrecognized tax benefits. Generally, tax authorities can examine tax returns filed for the preceding three years. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.


24 

Zevenbergen Funds

Notes to the Financial Statements (Continued)

June 30, 2021

 

 

NOTE 3 – INVESTMENT MANAGEMENT AGREEMENT AND OTHER RELATED PARTY TRANSACTIONS

 

The Trust entered into an agreement for the Adviser to furnish investment advisory services to the Funds. Under the terms of this agreement, Growth Fund and Genea Fund will pay the Adviser a monthly fee based on each Fund’s average daily net assets at the annual rate of 0.80%.

 

Effective April 1, 2021, the advisory fee of the Zevenbergen Genea Fund decreased from 0.90% to 0.80%, and the limits on total annual fund operating expenses decreased from 1.25% to 1.15% for the Fund’s Investor Class and from 1.00% to 0.90% for the Fund’s Institutional Class shares as detailed in the following section.

 

The Adviser has contractually agreed to waive its management fee and/or reimburse each Fund’s operating expenses (excluding shareholder servicing fees, any front-end or contingent deferred loads, taxes, leverage interest, brokerage commissions, acquired fund fees and expenses, merger or reorganization-related expenses, portfolio transaction expenses, interest expense and dividends paid on short sales, and extraordinary expenses) to ensure they do not exceed, on an annual basis, the expense limitations, expressed as a percentage rate of the average daily net assets of each Fund, listed below. Waivers or reimbursements are calculated daily and settled monthly or quarterly in conjunction with each Fund’s payment of advisory fees.

 

Fund

Investor Class

Institutional Class

Growth Fund

1.15%

0.90%

Genea Fund

1.15%

0.90%

 

See Note 6 – Shareholder Servicing Plan for shareholder servicing fees charged in addition to fees outlined in this table.

 

The Adviser is permitted to recapture amounts waived and/or reimbursed to a class within three years if the class’s total annual operating expenses have fallen to a level below the expense limitation (“expense cap”) in effect at the time the fees were earned or the expenses incurred. However, in no case will the Adviser recapture any amount that would result, on any particular business day of the Funds, in the class’s total annual operating expenses exceeding the expense cap or any other lower limit then in effect.

 

At June 30, 2021, the expenses reimbursed and contractual fees waived by the Adviser and subject to potential recapture by period were as follows:

 

Fiscal Year

waived/reimbursed

 

Growth Fund

 

 

Genea Fund

 

 

    Expiration

 

FYE June 30, 2019

 

$

227,826

 

 

$

224,757

 

 

 

June 30, 2022

 

FYE June 30, 2020

 

 

230,107

 

 

 

236,776

 

 

 

June 30, 2023

 

FYE June 30, 2021

 

 

222,372

 

 

 

178,337

 

 

 

June 30, 2024

 

 

 

$

680,305

 

 

$

639,870

 

 

 

 

 

 

U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”), serves as the Funds’ administrator, fund accountant, and transfer agent. The officers of the Trust are employees of Fund Services. U.S. Bank serves as the Funds’ custodian and provides compliance services to the Funds. For the year ended June 30, 2021, the Funds incurred the following expenses for administration and fund accounting, custody, transfer agent and compliance fees:

  

 

 

Growth Fund

 

 

Genea Fund

 

Administration

 

$

124,117

 

 

$

119,624

 

Custody

 

 

17,863

 

 

 

16,176

 

Transfer Agency

 

 

55,450

 

 

 

61,075

 

Chief Compliance Officer

 

 

12,680

 

 

 

11,683

 

                 
25 

 

 

Zevenbergen Funds

Notes to the Financial Statements (Continued)
June 30, 2021

 

 

 

At June 30, 2021, the Funds had payables due to Fund Services and its affiliates for administration and fund accounting, custody, transfer agent and compliance fees in the following amounts:

 



Growth Fund



Genea Fund


Administration

 

$

24,110

 

 

$

21,187

 

Custody

 

 

5,521

 

 

 

2,878

 

Transfer Agency

 

 

13,925

 

 

 

15,672

 

Chief Compliance Officer

 

 

3,204

 

 

 

3,219

 

 

The above payable amounts are included in the Accrued other expenses and other liabilities line item in the Statement of Assets and Liabilities.

 

The Independent Trustees were paid $34,504 for their services to the Funds during the year ended June 30, 2021. No compensation is paid directly by the Funds to the Interested Trustee or officers of the Trust.

 

NOTE 4 – INVESTMENT TRANSACTIONS

 

Purchases and sales of investment securities (excluding short-term investments) for each Fund for the year ended June 30, 2021, were as follows:

 

Growth Fund




Purchases

 

$

79,037,774

 

Sales

 

$

42,899,999

 

 

 

 


 

Genea Fund

 

 


 

Purchases

 

$

173,288,076

 

Sales

 

$

50,112,496

 

 

NOTE 5 – FEDERAL INCOME TAX INFORMATION

 

At June 30, 2021, the components of distributable earnings for income tax purposes were as follows:

 



Growth

Fund



Genea

Fund


 

 

 


 

 

 


 

Cost of investments

 

$

72,558,536

 

 

$

154,258,793

 

Gross unrealized appreciation

 

 

52,666,310

 

 

 

83,885,935

 

Gross unrealized depreciation

 

 

(3,278,957

)

 

 

(10,149,034

)

Net unrealized appreciation on investments

 

 

49,387,353

 

 

 

73,736,901

 

 

 

 


 

 

 


 

Undistributed ordinary income

 

 

 

 

 

 

Undistributed long-term capital gains

 

 

1,961,571

 

 

 

 

Accumulated earnings

 

 

1,961,571

 

 

 

 

 

 

 


 

 

 


 

Capital loss carryforwards

 

 

 

 

 

(3,090,082

)

Other book/tax temporary differences

 

 

(646,652

)

 

 

(1,183,309

)

Total distributable earnings

 

$

50,702,272

 

 

$

69,463,510

 


The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable in part to the tax deferral of losses on wash sales.

 

26 

 

 

Zevenbergen Funds

Notes to the Financial Statements (Continued)
June 30, 2021

 

 

 

GAAP requires that certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended June 30, 2021, permanent differences, due to net operating losses, in book and tax accounting have been reclassified to capital and distributable earnings as follows:

 

    Distributable Earnings   Paid In Capital
Growth Fund   $ 586,334     $ (586,334 )
Genea Fund   $ 875,671     $ (875,671 )

 

The following table summarizes the characteristics of distributions paid during the year ended June 30, 2021:

 

    Short-Term   Long-Term   Total
    Capital Gains   Capital Gains   Distributions Paid
Growth Fund   $     $ 73,416     $ 73,416  
Genea Fund   $     $     $  

 

No distributions were paid by the Growth Fund or Genea Fund during the year ended June 30, 2020.

 

The following capital loss carryovers were utilized during the year ended June 30, 2021:

 

Growth Fund:  $ 523,514
Genea Fund:    $ 241,399

 

The Funds are required, in order to meet certain excise tax requirements, to measure and distribute annually, net capital gains realized during the twelve month period ending October 31. In connection with this requirement, the Funds are permitted, for tax purposes, to defer into their next fiscal year any net capital losses incurred from November 1 through the end of the fiscal year. Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. At June 30, 2021, the Funds deferred the following, on a tax basis, losses:

 

 

 

Late Year Loss


Post October Loss

Growth Fund

 

$

(646,652

)

 

$

 

Genea Fund

 

$

(1,183,309

)

 

$

 

 

At June 30, 2021, the Funds had capital loss carryforwards, which reduce the Funds’ taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal tax. Pursuant to the Internal Revenue Code, the character of such capital loss carryforwards is as follows:

 

   

Capital Loss Carryforwards Not Subject to Expiration

   

Short-Term

 

Long-Term

 

Total

Growth Fund   $     $     $  
Genea Fund   $ (3,090,082 )   $     $ (3,090,082 )

 

27 

 

 

Zevenbergen Funds

Notes to the Financial Statements (Continued)
June 30, 2021

 

 

 

NOTE 6 – SHAREHOLDER SERVICING PLAN

 

The Trust, on behalf of the Funds, has adopted a Shareholder Servicing Plan to pay a fee at an annual rate on average daily net assets as follows:

 

Fund


Investor Class


Institutional Class

Growth Fund