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Form N-CSRS FORUM FUNDS II For: Mar 31

May 25, 2022 12:21 PM EDT

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As filed with the Securities and Exchange Commission on May 25, 2022
 
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 811-22842
 
FORUM FUNDS II
Three Canal Plaza, Suite 600
Portland, Maine 04101
 
 
Jessica Chase, Principal Executive Officer
Three Canal Plaza, Suite 600
Portland, Maine 04101
207-347-2000
 
 
Date of fiscal year end: September 30
 
Date of reporting period: October 1, 2021 – March 31, 2022
 
 

ITEM 1. REPORT TO STOCKHOLDERS.
Semi-Annual
Report
March
31,
2022
(Unaudited)
Advised
by:
SKBA
Capital
Management,
LLC
www.baywoodfunds.com
BAYWOOD
VALUE
PLUS
FUND
A
MESSAGE
TO
OUR
SHAREHOLDERS
March
31,
2022
1
Dear
Shareholders,
We
are
pleased
to
report
our
economic
and
financial
market
perspectives
and
the
investment
activities
for
the
Baywood
Value
Plus
Fund
(the
“Fund”)
for
the
six
months
ended
March
31,
2022.
The
Fund
is
a
large
capitalization
value-oriented
portfolio
of
stock
holdings
selected
from
a
universe
of
dividend-paying
companies
traded
on
U.S.
exchanges.
SKBA
attempts
to
identify
candidates
for
purchase
that
appear
to
have
low
expectations
and
pessimism
already
reflected
in
their
current
valuations
by
using
its
Relative
Dividend
Yield
(RDY)
discipline,
which
compares
each
stock’s
yield
history
to
SKBA’s
own
yield
index
of
500
large
dividend-paying
companies.
A
high
RDY
compared
to
a
stock’s
own
history
that
captures
such
pessimism
provides
a
useful
starting
point
for
research
into
each
stock’s
underlying
fundamentals.
Over
the
last
six
months,
the
broad
stock
market
(represented
by
the
S&P
500)
experience
two
diametrically
opposed
quarters,
with
a
strong
11.0%
gain
in
the
4th
quarter
of
2021
followed
by
a
reversal
of
trend
to
post
a
-4.6%
return
in
the
1st
quarter
of
2022.
Over
the
six
months
as
a
whole,
The
S&P
gained
5.92%.
The
stock
market’s
first
quarter
of
2022
decline
could
be
attributed
to
a
number
of
factors—Omicron,
the
war
in
Ukraine,
the
highest
year
over
year
consumer
price
inflation
in
40
years,
labor
shortages,
and/or
continued
supply
chain
disruption.
Yet
its
root
cause
might
be
best
attributed
to
“Poor
Peter
Powell
finally
had
to
Pay
the
Piper!”
Naturally,
“Peter”
is
Fed
Chairman
Jerome
Powell
who
indulged
in
the
fantasy
that
MMT
(Modern
Monetary
Theory)
offered
a
free
lunch—meaning
no
amount
of
Federal
Reserve
Board
money
supply
growth
to
fund
the
federal
government’s
massive
deficit
spending
spree,
while
suppressing
of
yields
via
its
Zero
Interest
Rate
Policy
(ZIRP),
would
put
upward
pressure
on
consumer
and
industrial
prices.
After
wishing
and
forecasting
for
months
that
price
inflation
would
prove
to
be
transitory,
Powell
finally
acknowledged
the
Fed
was
behind
the
curve.
The
Piper
now
has
to
be
paid
with
many
more
Fed
Fund
rate
hikes
than
would
likely
have
been
necessary
had
he
ended
the
Fed’s
extraordinary
monetary
ease
and
ZIRP
in
June
of
2021.
We
identified
the
coming
awakening
of
price
inflation
before
it
actually
appeared
in
2021.
In
light
of
these
pressures,
it
is
a
pleasure
to
report
that
Baywood
Value
Plus
Fund
produced
positive
returns
in
the
1st
quarter,
with
a
total
return
of
5.61%,
and
an
11.51%
return
over
the
last
six
months.
This
compared
to
the
return
on
our
primary
benchmark,
Morningstar
US
Large
Cap
Value
Index,
of
1.63%
and
9.37%
over
the
first
quarter
and
six-month
periods,
respectively.
For
years
now
through
the
end
of
2021,
growth-stock
indexes
feasted
on
low
interest
rates
that
justified
high
price/earnings
ratios.
Not
surprisingly,
the
rise
in
discount
rates
so
far
in
2022
year
punished
these
stocks
the
most.
Even
with
price
recovery
in
March,
the
NASDAQ
plunged
-8.9%
for
the
first
quarter
as
a
whole,
the
S&P
500
dropped
-4.6%,
and
even
the
S&P
500
Value
produced
a
modest
decline
of
-0.16%.
Given
the
shellacking
the
30-year
T-bond
took,
with
a
return
of
-11%,
T-bonds
looked
a
lot
like
growth
stocks
and
offered
no
protection
against
the
weak
equity
market
returns.
It
is
important
to
note
that
the
booming
economic
recovery
was
well
underway
at
the
beginning
of
the
new
year,
producing
real
growth
from
pent
up
demand
at
the
same
time
price
inflation
was
gaining
upside
momentum.
All
of
the
factors
necessary
to
create
today’s
problems
were
in
place
before
the
Fed
realized
its
error
and
changed
policy
in
2022,
before
the
wave
of
Omicron
infections
peaked
and
then
dropped
sharply
in
January,
and
before
Russia
launched
its
war
against
Ukraine.
With
the
Omicron
wave
receding
rapidly
(except
in
China),
the
economic
reopening
story
was
revived
once
again.
Was
the
first
quarter
of
2022
then
the
beginning
of
the
“perfect
storm”
for
stocks
and
bonds
or
just
a
short-lived
squall
in
financial
markets?
Certainly,
if
the
Federal
Reserve
Board
actually
follows
through
and
raises
the
Fed
Fund
Rate
six
more
times
(at
least
175
basis
points
in
total
this
year),
rising
interest
rates
should
push
up
cash
flow
discount
rates.
As
a
result,
growth
stock
valuations
(as
measure
by
a
stock’s
price/earnings
ratio)
should
remain
under
downside
pressure
as
they
were
in
the
first
quarter.
The
highest
growth
sectors
in
the
value
benchmark,
information
technology
and
consumer
discretionary
sectors
of
the
Morningstar
US
Large
Cap
Value
fell
approximately
-8%
and
-18%
in
the
1st
quarter,
respectively,
with
six-month
returns
of
+2%
and
-3%,
respectively,
which
highlights
that
rising
interest
rates
the
1st
quarter
have
already
begun
to
hit
the
valuations
of
stocks
in
these
two
sectors
Nor
is
it
difficult
to
understand
that
rising
prices
benefit
the
purveyors
of
commodities.
Energy
stocks
topped
Morningstar’s
sector
list
rising
nearly
51%,
followed
by
materials
up
nearly
35%.
Having
anticipated
that
the
problem
with
price
inflation
would
not
be
transitory,
SKBA
positioned
Value
Plus
to
have
more
of
the
latter
holdings
(energy
and
materials)
compared
to
the
former.
While
Russia’s
invasion
of
Ukraine
pushed
the
price
of
West
Texas
Intermediate
(WTI)
and
Brent
Crude
temporarily
above
$120
per
barrel,
even
a
quick
resolution
of
the
war
would
not
likely
cause
crude
oil
prices
to
collapse.
Worldwide
consumption
is
back
to
pre-pandemic
BAYWOOD
VALUE
PLUS
FUND
A
MESSAGE
TO
OUR
SHAREHOLDERS
March
31,
2022
2
levels
of
100
million
barrels
per
day
even
without
a
full
recovery
in
jet
fuel
consumption.
Equinor,
Chevron
and
ConocoPhillips
led
the
charge
higher
among
energy
stocks
in
the
portfolio.
Yet
it
wasn’t
simply
the
over-weighted
positions
in
energy
and
materials
that
made
the
difference
over
the
last
two
quarters.
Drug
manufacturer
AbbVie
gained
almost
53%
as
its
Botox
franchise
regained
momentum
along
with
its
new
treatments
for
autoimmune
diseases,
Skyrizi
and
Rinvoq.
Raytheon
Technologies,
known
for
its
highly
successful
Patriot
missile
system
as
well
as
commercial
jet
engine
manufacturing
and
maintenance,
rose
16%.
Union
Pacific
(railroad)
rose
almost
41%.
Even
though
Morningstar’s
financial
sector
reported
a
negative
-3%
return
over
the
period,
SKBA’s
holdings
produced
positive
9%
return.
While
underweighting
bank
stocks,
SKBA
overweight
insurance
stocks.
Among
financials,
insurance
stocks
posted
the
largest
returns
with
American
International
Group,
Chubb,
and
MetLife
each
producing
low
double-digit
returns.
The
rise
in
the
yield
curve
result
in
the
decision
to
start
a
position
in
Wells
Fargo
during
the
1st
quarter
as
we
believe
it
has
the
potential
for
upside
surprise
in
its
net
interest
margins
and
cost
cutting.
Next
to
energy,
our
overweight
among
diversified
holdings
in
materials
stocks
generate
nearly
a
34%
total
return
with
holdings
in
gold
miner
Newmont,
fertilizer
company
Nutrien,
metals
miner
Rio
Tinto,
and
Packaging
Corp
all
contributing
to
this
sizeable
outperformance.
At
the
other
end
of
the
spectrum,
the
strategy
underperformed
the
benchmark
in
two
sectors,
consumer
discretionary
and
utilities.
Three
stocks
saw
significant
losses.
Generic
drug
maker
Viatris
plunged
-24%
in
part
due
to
a
dramatic
shift
in
business
strategy
that
we
do
not
support,
and
so
we
chose
to
exit
the
position
during
the
first
quarter.
Following
its
decline
in
the
4th
quarter,
we
also
exited
healthcare
equipment
company,
Royal
Philips,
as
product
quality
and
demand
issues
arose.
Auto
parts
maker
Lear
and
clothing
manufacturer
Kontoor
declined
-8%
and
-16%,
respectively,
but
because
we
continue
to
have
confidence
in
their
long-term
prospects,
we
used
this
opportunity
to
buy
low.
The
question
arises,
can
Value
Plus
sustain
positive
performance
in
the
face
of
a
weak
market
or
a
resurgence
of
return
from
growth-stock
indexes?
Certainly
no
one
knows
the
answer
to
this
but
it
is
important
to
note
that
there
are
some
parallels
between
to
market
and
the
peak
of
the
growth-stock
mania
of
1999.
First,
using
various
valuation
metrics,
“growth”
substantially
outperformed
“value”
in
the
late
1990s,
setting
up
an
extreme
differential
in
valuation
that
left
growth
stocks
vulnerable
to
any
deterioration
in
the
“new
paradigm”
set
of
growth
stock
beliefs
from
the
tech
and
internet
boom.
We
have
believed
a
similar
valuation
spread
exists
today,
particularly
heightened
by
the
boom
in
stay-at-home/work-at-
home
products
and
services
during
the
pandemic
shutdown.
With
Omicron
fading
and
economic
reopening
more
secure,
this
valuation
difference
is
no
longer
justified.
In
our
view,
the
first
quarter
market
decline
barely
put
a
dent
in
the
continued
overvaluation.
Second,
we
also
believe
both
periods
(late
1990s
and
2020-21)
saw
a
pull
forward
revenues
from
future
periods
due
to
the
surge
in
pandemic
services
like
Netflix
and
Zoom
subscriptions
of
late
and
info
tech
spending
to
resolve
the
Y2K
problem
of
the
late
1990’s
(the
need
to
shift
from
2-digit
years
to
4-digit
years
in
all
computer
systems
and
software).
Investors
who
believed
the
new
paradigm
of
accelerated
growth
were
massively
disappointed
in
the
new
century,
and
it
is
our
view
that
we
have
just
begun
a
significant
slowdown
in
the
relative
growth
rates
of
growth
stocks
compared
to
value
stocks.
Only
time
will
tell
if
these
perspectives
are
accurate.
In
the
meantime,
we’ll
keep
an
eye
on
these
trends
and
how
to
best
adjust
client
portfolios
to
changes
we
see
coming.
Current
and
future
portfolio
holdings
are
subject
to
change
and
risk.
Fund
holdings
and
sector
allocations
are
subject
to
change
at
any
time
and
are
not
recommendations
to
buy
or
sell
any
security.
Please
see
the
Schedule
of
Investments
in
this
report
for
a
complete
list
of
Fund
holdings.
The
S&P
500®
Index,
is
a market-capitalization-weighted
index of
500
leading publicly
traded
companies
in
the
U.S.
An
investment
cannot
be
made
directly
in
an
index.
The
S&P
500®
Value
Index
is
an
unmanaged
group
of
securities
and
is
considered
to
be
representative
of
those
stocks
in
the
S&P
500®
Index
exhibiting
the
strongest
value
characteristics.
The
gains
and
losses
reflect
the
monthly
price
of
the
Index
only,
and
therefore,
do
not
include
dividends.
The
Morningstar
US
Large
Value
TR
Index
measures
the
performance
of
measures
the
performance
of
US
large-cap
stocks
with
relatively
low
prices
given
anticipated
per-share
earnings,
book
value,
cash
flow,
sales
and
dividends.
This
Index
does
not
incorporate
Environmental,
Social,
or
Governance
(ESG)
criteria.
Basis
points
refers
to a
common
unit
of
measure
for
interest
rates
and
other
percentages
in
finance.
One
basis
point
is
equal
to
1/100th
of
1%,
or
0.01%,
or
0.0001,
and
is
used
to
denote
the
percentage
change
in
a
financial
instrument.
BAYWOOD
VALUE
PLUS
FUND
A
MESSAGE
TO
OUR
SHAREHOLDERS
March
31,
2022
3
Past
performance
is
no
guarantee
of
future
results.
Risk
Considerations:
Mutual
fund
investing
involves
risk,
including
the
possible
loss
of
principal.
The
Fund
primarily
invests
in
undervalued
securities,
which
may
not
appreciate
in
value
as
anticipated
by
the
Advisor
or
remain
undervalued
for
longer
than
anticipated.
The
Fund
may
invest
in
American
Depositary
Receipts
(ADRs),
which
involves
risks
relating
to
political,
economic
or
regulatory
conditions
in
foreign
countries
and
may
cause
greater
volatility
and
less
liquidity.
The
Fund
may
also
invest
in
convertible
securities
and
preferred
stock,
which
may
be
adversely
affected
as
interest
rates
rise.
BAYWOOD
VALUE
PLUS
FUND
PERFORMANCE
CHART
AND
ANALYSIS
March
31,
2022
4
The
following
chart
reflects
the
change
in
the
value
of
a
hypothetical
$10,000
investment,
including
reinvested
dividends
and
distributions,
in
the
Baywood
Value
Plus
Fund
(the
“Fund”)
compared
with
the
performance
of
the
benchmark,
Morningstar
US
Large
Value
TR
Index,
since
inception.
The
Morningstar
US
Large
Value
TR
Index
measures
the
performance
of
large-cap
stocks
with
relatively
low
prices
given
anticipated
per
share
earnings,
book
value,
cash
flow,
sales
and
dividends.
The
total
return
of
the
index
includes
the
reinvestment
of
dividends
and
income.
The
total
return
of
the
Fund
includes
operating
expenses
that
reduce
returns,
while
the
total
return
of
the
index
does
not
include
expenses.
The
Fund
is
professionally
managed,
while
the
index
is
unmanaged
and
is
not
available
for
investment.
Comparison
of
Change
in
Value
of
a
$10,000
Investment
Baywood
Value
Plus
Fund
vs.
Morningstar
US
Large
Value
TR
Index
Performance
data
quoted
represents
past
performance
and
is
no
guarantee
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Investment
return
and
principal
value
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
original
cost.
As
stated
in
the
Fund’s
prospectus,
the
annual
operating
expense
ratio
(gross)
is
5.66%.
However,
the
Fund’s
advisor has
contractually
agreed
to
waive
its
fee
and/or
reimburse
Fund
expenses
to
limit
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
acquired
fund
fees
and
expenses,
proxy
expenses
and
extraordinary
expenses)
to
0.70%,
through
January
31,
2023
(the
“Expense
Cap”).
The
Expense
Cap
may
be
raised
or
eliminated
only
with
the
consent
of
the
Board
of
Trustees.
The
advisor
may
be
reimbursed
by
the
Fund
for
fees
waived
and
expenses
reimbursed
by
the
advisor
pursuant
to
the
Expense
Cap
if
such
payment
is
made
within
three
years
of
the
fee
waiver
or
expense
reimbursement
and
does
not
cause
the
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/
or
Expense
Reimbursement
to
exceed
the
lesser
of
(i)
the
then-current
Expense
Cap
and
(ii)
the
Expense
Cap
in
place
at
the
time
the
fees/expenses
were
waived/reimbursed.
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
will
increase
if
exclusions
from
the
Expense
Cap
apply.
During
the
period,
certain
fees
were
waived
and/or
expenses
reimbursed;
otherwise,
returns
would
have
been
lower.
The
performance
table
and
graph
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Returns
greater
than
one
year
are
annualized.
For
the
most
recent
month-end
performance,
please
call
(855)
409-2297.
Average
Annual
Total
Returns
Periods
Ended
March
31,
2022
One
Year
Five
Year
Ten
Year
Since
Inception
06/27/08
Baywood
Value
Plus
Fund
15.95%
10.37%
10.67%
9.84%
Morningstar
US
Large
Value
TR
Index
12.12%
10.26%
11.14%
8.64%
*
The
Fund’s
Institutional
Shares
performance
for
periods
prior
to
the
commencement
of
operations
(12/2/13)
is
that
of
a
collective
investment
trust
managed
by
the
Fund’s
Advisor
and
portfolio
management
team.
The
Institutional
Shares
of
the
collective
investment
trust
commenced
operations
on
June
27,
2008.
BAYWOOD
VALUE
PLUS
FUND
SCHEDULE
OF
INVESTMENTS
March
31,
2022
5
See
Notes
to
Financial
Statements.
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's instruments
as
of
March
31,
2022. 
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
For
more
information
on
valuation
inputs,
and
their
aggregation
into
the
levels
used
in
the
table
below,
please
refer
to
the
Security
Valuation
section
in
Note
2
of
the
accompanying
Notes
to
Financial
Statements.
The
Level
1
value
displayed
in
this
table
is
Common
Stock.
The
Level
2
value
displayed
in
this
table
is
a
Money
Market
Fund.
Refer
to
this
Schedule
of
Investments
for
a
further
breakout
of
each
security
by
industry.
Shares
Security
Description
Value
Common
Stock
-
97.2%
Basic
Materials
-
10.8%
400‌
International
Flavors
&
Fragrances,
Inc.
$
52,532‌
1,300‌
Newmont
Corp.
103,285‌
860‌
Nutrien,
Ltd.
89,431‌
300‌
Packaging
Corp.
of
America
46,833‌
1,400‌
Rio
Tinto
PLC,
ADR
112,560‌
404,641‌
Capital
Goods
/
Industrials
-
5.9%
800‌
ManpowerGroup,
Inc.
75,136‌
100‌
Parker-Hannifin
Corp.
28,376‌
1,200‌
Raytheon
Technologies
Corp.
118,884‌
222,396‌
Communication
Services
-
6.2%
2,900‌
AT&T,
Inc.
68,527‌
1,900‌
Comcast
Corp.,
Class A
88,958‌
1,500‌
Verizon
Communications,
Inc.
76,410‌
233,895‌
Consumer
Discretionary
-
6.9%
500‌
Darden
Restaurants,
Inc.
66,475‌
400‌
Genuine
Parts
Co.
50,408‌
2,000‌
Kontoor
Brands,
Inc.
82,700‌
400‌
Lear
Corp.
57,036‌
256,619‌
Consumer
Staples
-
6.9%
800‌
Ingredion,
Inc.
69,720‌
700‌
Molson
Coors
Beverage
Co.,
Class B
37,366‌
200‌
PepsiCo.,
Inc.
33,476‌
1,900‌
The
Kraft
Heinz
Co.
74,841‌
300‌
Walmart,
Inc.
44,676‌
260,079‌
Energy
-
10.4%
300‌
Chevron
Corp.
48,849‌
1,400‌
ConocoPhillips
140,000‌
2,100‌
Equinor
ASA,
ADR
78,771‌
3,200‌
Kinder
Morgan,
Inc.
60,512‌
700‌
Phillips
66
60,473‌
388,605‌
Financials
-
18.5%
2,200‌
American
International
Group,
Inc.
138,094‌
500‌
Chubb,
Ltd.
106,950‌
1,600‌
Citigroup,
Inc.
85,440‌
200‌
CME
Group,
Inc.
47,572‌
400‌
First
American
Financial
Corp.
25,928‌
1,600‌
MetLife,
Inc.
112,448‌
500‌
Northern
Trust
Corp.
58,225‌
900‌
Prosperity
Bancshares,
Inc.
62,442‌
1,100‌
Wells
Fargo
&
Co.
53,306‌
690,405‌
Health
Care
-
13.4%
700‌
AbbVie,
Inc.
113,477‌
300‌
Amgen,
Inc.
72,546‌
1,000‌
AstraZeneca
PLC,
ADR
66,340‌
1,500‌
Cardinal
Health,
Inc.
85,050‌
16‌
Koninklijke
Philips
NV,
ADR
489‌
600‌
Medtronic
PLC
66,570‌
1,200‌
Merck
&
Co.,
Inc.
98,460‌
502,932‌
Real
Estate
-
3.9%
1,104‌
Realty
Income
Corp.
REIT
76,507‌
2,400‌
VICI
Properties,
Inc.
REIT
68,304‌
144,811‌
Shares
Security
Description
Value
Technology
-
9.3%
1,200‌
Cisco
Systems,
Inc.
$
66,912‌
1,300‌
Corning,
Inc.
47,983‌
600‌
International
Business
Machines
Corp.
78,012‌
1,100‌
NetApp,
Inc.
91,300‌
200‌
TE
Connectivity,
Ltd.
26,196‌
200‌
Texas
Instruments,
Inc.
36,696‌
347,099‌
Transportation
-
3.9%
6,100‌
Atlas
Corp.
89,548‌
200‌
Union
Pacific
Corp.
54,642‌
144,190‌
Utilities
-
1.1%
1,000‌
OGE
Energy
Corp.
40,780‌
Total
Common
Stock
(Cost
$2,826,430)
3,636,452‌
Shares
Security
Description
Value
Money
Market
Fund
-
3.1%
115,103‌
First
American
Government
Obligations
Fund,
Class X,
0.19% 
(a)
(Cost
$115,103)
115,103‌
Investments,
at
value
-
100.3%
(Cost
$2,941,533)
$
3,751,555‌
Other
Assets
&
Liabilities,
Net
-
(0.3)%
(11,716‌)
Net
Assets
-
100.0%
$
3,739,839‌
ADR
American
Depositary
Receipt
PLC
Public
Limited
Company
REIT
Real
Estate
Investment
Trust
(a)
Dividend
yield
changes
daily
to
reflect
current
market
conditions.
Rate
was
the
quoted
yield
as
of
March
31,
2022.
Valuation
Inputs
Investments
in
Securities
Level
1
-
Quoted
Prices
$
3,636,452‌
Level
2
-
Other
Significant
Observable
Inputs
115,103‌
Level
3
-
Significant
Unobservable
Inputs
–‌
Total
$
3,751,555‌
BAYWOOD
VALUE
PLUS
FUND
SCHEDULE
OF
INVESTMENTS
March
31,
2022
6
See
Notes
to
Financial
Statements.
PORTFOLIO
HOLDINGS
%
of
Total
Investments
Basic
Materials
10.8%‌
Capital
Goods
/
Industrials
5.9%‌
Communication
Services
6.2%‌
Consumer
Discretionary
6.8%‌
Consumer
Staples
6.9%‌
Energy
10.4%‌
Financials
18.4%‌
Health
Care
13.4%‌
Real
Estate
3.9%‌
Technology
9.3%‌
Transportation
3.8%‌
Utilities
1.1%‌
Money
Market
Fund
3.1%‌
100.0%‌
BAYWOOD
VALUE
PLUS
FUND
STATEMENT
OF
ASSETS
AND
LIABILITIES
March
31,
2022
7
See
Notes
to
Financial
Statements.
ASSETS
Investments,
at
value
(Cost
$2,941,533)
$
3,751,555‌
Receivables:
Dividends
13,509‌
From
investment
advisor
10,546‌
Prepaid
expenses
13,542‌
Total
Assets
3,789,152‌
LIABILITIES
Payables:
Fund
shares
redeemed
25,401‌
Accrued
Liabilities:
Trustees’
fees
and
expenses
22‌
Fund
services
fees
5,117‌
Other
expenses
18,773‌
Total
Liabilities
49,313‌
NET
ASSETS
$
3,739,839‌
COMPONENTS
OF
NET
ASSETS
Paid-in
capital
$
2,719,420‌
Distributable
earnings
1,020,419‌
NET
ASSETS
$
3,739,839‌
SHARES
OF
BENEFICIAL
INTEREST
AT
NO
PAR
VALUE
(UNLIMITED
SHARES
AUTHORIZED)
183,203‌
NET
ASSET
VALUE,
OFFERING
AND
REDEMPTION
PRICE
PER
SHARE
$
20.41‌
BAYWOOD
VALUE
PLUS
FUND
STATEMENT
OF
OPERATIONS
SIX
MONTHS
ENDED
MARCH
31,
2022
8
See
Notes
to
Financial
Statements.
INVESTMENT
INCOME
Dividend
income
(Net
of
foreign
withholding
taxes
of
$383)
$
63,860‌
Total
Investment
Income
63,860‌
EXPENSES
Investment
advisor
fees
8,889‌
Fund
services
fees
29,623‌
Transfer
agent
fees
9,262‌
Custodian
fees
2,547‌
Registration
fees
12,469‌
Professional
fees
16,636‌
Trustees'
fees
and
expenses
2,322‌
Other
expenses
15,065‌
Total
Expenses
96,813‌
Fees
waived
and
expenses
reimbursed
(84,368‌)
Net
Expenses
12,445‌
NET
INVESTMENT
INCOME
51,415‌
NET
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
Net
realized
gain
on
investments
197,408‌
Net
change
in
unrealized
appreciation
(depreciation)
on
investments
139,493‌
NET
REALIZED
AND
UNREALIZED
GAIN
336,901‌
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
$
388,316‌
BAYWOOD
VALUE
PLUS
FUND
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
9
See
Notes
to
Financial
Statements.
For
the
Six
Months
Ended
March
31,
2022
For
the
Year
Ended
September
30,
2021
OPERATIONS
Net
investment
income
$
51,415‌
$
78,386‌
Net
realized
gain
197,408‌
281,849‌
Net
change
in
unrealized
appreciation
(depreciation)
139,493‌
592,957‌
Increase
in
Net
Assets
Resulting
from
Operations
388,316‌
953,192‌
DISTRIBUTIONS
TO
SHAREHOLDERS
Total
Distributions
Paid
(303,361‌)
(71,909‌)
CAPITAL
SHARE
TRANSACTIONS
Sale
of
shares
40,792‌
97,772‌
Reinvestment
of
distributions
300,824‌
71,883‌
Redemption
of
shares
(75,300‌)
(250,617‌)
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
266,316‌
(80,962‌)
Increase
in
Net
Assets
351,271‌
800,321‌
NET
ASSETS
Beginning
of
Period
3,388,568‌
2,588,247‌
End
of
Period
$
3,739,839‌
$
3,388,568‌
SHARE
TRANSACTIONS
Sale
of
shares
2,022‌
5,147‌
Reinvestment
of
distributions
15,780‌
3,675‌
Redemption
of
shares
(3,747‌)
(12,688‌)
Increase
(Decrease)
in
Shares
14,055‌
(3,866‌)
BAYWOOD
VALUE
PLUS
FUND
FINANCIAL
HIGHLIGHTS
10
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period.
For
the
Six
Months
Ended
March
31,
2022
For
the
Years
Ended
September
30,
2021
2020
2019
2018
2017