Form N-CSRS Starboard Investment For: Nov 30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22298
Starboard Investment Trust
(Exact name of registrant as specified in charter)
(Exact name of registrant as specified in charter)
116 South Franklin Street, Rocky Mount, North Carolina 27804
(Address of principal executive offices) (Zip code)
Paracorp Inc.
2140 South Dupont Hwy., Camden, DE 19934
(Name and address of agent for service)
Registrant's telephone number, including area code: 252-972-9922
Date of fiscal year end: May 31
Date of reporting period: November 30, 2020
Item 1. REPORTS TO STOCKHOLDERS.
Adaptive Funds
SEMI-ANNUAL REPORT
(Unaudited)
For the fiscal period from June 1, 2020
through November 30, 2020
Adaptive Fundamental Growth Fund
Adaptive Growth Opportunities Fund
Adaptive Hedged High Income Fund
Adaptive Hedged Income Fund
Adaptive Tactical Economic Fund
Adaptive Tactical Rotation Fund
Institutional Class
Class C Shares
Class A Shares
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Adaptive Funds (the “Funds”). The Funds’ shares are not deposits or obligations of, or guaranteed by, any depository
institution. The Funds’ shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested. Neither the Funds nor the Funds’ distributor is a bank.
The Adaptive Funds are distributed by Capital Investment Group, Inc., Member FINRA/SIPC, 100 E. Six Forks Road, Suite 200, Raleigh, NC, 27609. There is no affiliation between the Adaptive Funds, including their principals, and Capital Investment
Group, Inc.
Table of Contents
Adaptive Fundamental Growth Fund
|
……………………………………………………………………………………
|
1
|
Adaptive Growth Opportunities Fund
|
……………………………………………………………………………………
|
10
|
Adaptive Hedged High Income Fund
|
……………………………………………………………………………………
|
18
|
Adaptive Hedged Income Fund
|
……………………………………………………………………………………
|
24
|
Adaptive Tactical Economic Fund
|
……………………………………………………………………………………
|
33
|
Adaptive Tactical Rotation Fund
|
……………………………………………………………………………………
|
40
|
Notes to Financial Statements
|
……………………………………………………………………………………
|
48
|
Additional Information
|
……………………………………………………………………………………
|
62
|
Statements in this Semi-Annual Report that reflect projections or expectations of future financial or economic performance of the Adaptive Funds (“Funds”) and of the market in general and statements of the Funds’ plans and objectives for
future operations are forward-looking statements. No assurance can be given that actual results or events will not differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important
factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include, without limitation, general economic conditions such as inflation, recession and interest rates. Past
performance is not a guarantee of future results.
|
An investor should consider the investment objectives, risks, charges and expenses of the Funds carefully before
investing. The prospectus contains this and other information about the Funds. A copy of the prospectus is available at ncfunds.com or by calling
Shareholder Services at 800-773-3863. The prospectus should be read carefully before investing.
|
For More Information on the Adaptive Funds:
See Our Web site @ adaptivefunds.com
or
Call Our Shareholder Services Group at 800-773-3863.
Beginning on January 1, 2021, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website at
https://www.nottinghamco.com/fundpages/Adaptive, 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 have previously 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 a Fund
electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by clicking Enroll at https://www.nottinghamco.com/fundpages/Adaptive.
You may, notwithstanding the availability of shareholder reports online, elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to
request that you continue to receive paper copies of your shareholder reports. If you invest directly with a Fund, you can call 800-773-3863 to let the Fund know you wish to continue receiving paper copies of your shareholder reports.
Adaptive Fundamental Growth Fund
|
|||||||||
Schedule of Investments
|
|||||||||
(Unaudited)
|
|||||||||
As of November 30, 2020
|
|||||||||
Shares
|
Value
(Note 1)
|
||||||||
COMMON STOCKS - 91.66%
|
|||||||||
Business Services - 7.55%
|
|||||||||
Accenture PLC
|
5,282
|
$
|
1,315,693
|
||||||
Apple, Inc.
|
12,116
|
1,442,410
|
|||||||
*
|
PayPal Holdings, Inc.
|
6,439
|
1,378,719
|
||||||
4,136,822
|
|||||||||
Communication Services - 16.97%
|
|||||||||
*
|
Alphabet, Inc. - Class C
|
733
|
1,290,622
|
||||||
Cisco Systems, Inc.
|
24,480
|
1,053,130
|
|||||||
*
|
Facebook, Inc.
|
4,518
|
1,251,350
|
||||||
*
|
Netflix, Inc.
|
2,384
|
1,169,829
|
||||||
*
|
The Trade Desk, Inc.
|
2,591
|
2,334,672
|
||||||
*
|
The Walt Disney Co.
|
8,881
|
1,314,477
|
||||||
*
|
Zoom Video Communications, Inc.
|
1,861
|
890,228
|
||||||
9,304,308
|
|||||||||
Consumer Discretionary - 9.13%
|
|||||||||
*
|
JD.com, Inc.
|
6,496
|
554,434
|
||||||
*
|
Lululemon Athletica, Inc.
|
3,488
|
1,291,327
|
||||||
NIKE, Inc.
|
8,397
|
1,131,076
|
|||||||
Starbucks Corp.
|
8,718
|
854,538
|
|||||||
The Home Depot, Inc.
|
4,240
|
1,176,218
|
|||||||
5,007,593
|
|||||||||
Consumer Staples - 2.99%
|
|||||||||
*
|
Monster Beverage Corp.
|
14,772
|
1,252,370
|
||||||
The Clorox Co.
|
1,900
|
385,624
|
|||||||
1,637,994
|
|||||||||
Financials - 10.83%
|
|||||||||
MarketAxess Holdings, Inc.
|
2,107
|
1,136,052
|
|||||||
Mastercard, Inc.
|
3,488
|
1,173,747
|
|||||||
MSCI, Inc.
|
3,259
|
1,334,300
|
|||||||
S&P Global, Inc.
|
3,251
|
1,143,637
|
|||||||
Visa, Inc.
|
5,482
|
1,153,139
|
|||||||
5,940,875
|
|||||||||
Health Care - 11.29%
|
|||||||||
Abbott Laboratories
|
10,784
|
1,167,044
|
|||||||
Danaher Corp.
|
6,028
|
1,354,070
|
|||||||
Merck & Co., Inc.
|
14,039
|
1,128,595
|
|||||||
UnitedHealth Group, Inc.
|
3,676
|
1,236,386
|
|||||||
Zoetis, Inc.
|
8,119
|
1,302,125
|
|||||||
6,188,220
|
|||||||||
Industrials - 2.04%
|
|||||||||
*
|
Copart, Inc.
|
9,705
|
1,120,442
|
||||||
1,120,442
|
|||||||||
Information Technology - 30.86%
|
|||||||||
*
|
Adobe, Inc.
|
2,744
|
1,312,922
|
||||||
*
|
Cadence Design Systems, Inc.
|
10,802
|
1,256,273
|
||||||
*
|
Digital Turbine, Inc.
|
16,035
|
721,254
|
||||||
(Continued)
|
Adaptive Fundamental Growth Fund
|
|||||||||
Schedule of Investments - Continued
|
|||||||||
(Unaudited)
|
|||||||||
As of November 30, 2020
|
|||||||||
Shares
|
Value
(Note 1)
|
||||||||
COMMON STOCKS - Continued
|
|||||||||
Information Technology - Continued
|
|||||||||
*
|
DocuSign, Inc.
|
6,062
|
$
|
1,381,409
|
|||||
*
|
Enphase Energy, Inc.
|
9,193
|
1,255,488
|
||||||
*
|
Fair Isaac Corp.
|
2,509
|
1,186,205
|
||||||
*
|
Fortinet, Inc.
|
8,516
|
1,049,427
|
||||||
Intuit, Inc.
|
3,789
|
1,333,804
|
|||||||
KLA Corp.
|
3,527
|
888,698
|
|||||||
Microsoft Corp.
|
5,458
|
1,168,394
|
|||||||
NVIDIA Corp.
|
2,140
|
1,147,168
|
|||||||
*
|
salesforce.com, Inc.
|
5,743
|
1,411,630
|
||||||
*
|
ServiceNow, Inc.
|
2,775
|
1,483,376
|
||||||
*
|
Shopify, Inc. - Class A
|
1,216
|
1,325,902
|
||||||
16,921,950
|
|||||||||
Total Common Stocks (Cost $40,884,257)
|
50,258,204
|
||||||||
EXCHANGE-TRADED PRODUCT - 7.60%
|
|||||||||
Large-Cap - 7.60%
|
|||||||||
Invesco QQQ Trust Series 1
|
13,899
|
4,164,418
|
|||||||
Total Exchange-Traded Product (Cost $3,475,608)
|
4,164,418
|
||||||||
SHORT-TERM INVESTMENT - 0.76%
|
|||||||||
§
|
Fidelity Investments Money Market Government Portfolio -
|
||||||||
Class I, 0.01%
|
418,056
|
418,056
|
|||||||
Total Short-Term Investment (Cost $418,056)
|
418,056
|
||||||||
Investments, at Value (Cost $44,777,921) - 100.02%
|
$
|
54,840,678
|
|||||||
Liabilities in Excess of Other Assets - (0.02)%
|
(10,234)
|
||||||||
Net Assets - 100.00%
|
$
|
54,830,444
|
|||||||
*
|
Non-income producing investment
|
||||||||
§
|
Represents 7 day effective yield as of November 30, 2020.
|
||||||||
The following acronym or abbreviation is used in this Schedule:
|
|||||||||
PLC - Public Limited Company
|
|||||||||
(Continued)
|
Adaptive Fundamental Growth Fund
|
|||||||||
Schedule of Investments - Continued
|
|||||||||
(Unaudited)
|
|||||||||
As of November 30, 2020
|
|||||||||
Summary of Investments
|
|||||||||
% of Net
|
|||||||||
by Industry
|
Assets
|
Value
|
|||||||
Common Stocks:
|
|||||||||
Business Services
|
7.55%
|
$
|
4,136,822
|
||||||
Communication Services
|
16.97%
|
9,304,308
|
|||||||
Consumer Discretionary
|
9.13%
|
5,007,593
|
|||||||
Consumer Staples
|
2.99%
|
1,637,994
|
|||||||
Financials
|
10.83%
|
5,940,875
|
|||||||
Health Care
|
11.29%
|
6,188,220
|
|||||||
Industrials
|
2.04%
|
1,120,442
|
|||||||
Information Technology
|
30.86%
|
16,921,950
|
|||||||
Exchange-Traded Product
|
|||||||||
Large-Cap
|
7.60%
|
4,164,418
|
|||||||
Short-Term Investment
|
0.76%
|
418,056
|
|||||||
Liabilities in Excess of Other Assets
|
-0.02%
|
(10,234)
|
|||||||
Total Net Assets
|
100.00%
|
$
|
54,830,444
|
||||||
See Notes to Financial Statements
|
Adaptive Fundamental Growth Fund
|
|||||||
Statement of Assets and Liabilities
|
|||||||
(Unaudited)
|
|||||||
As of November 30, 2020
|
|||||||
Assets:
|
|||||||
Investments, at value (cost $44,777,921)
|
$
|
54,840,678
|
|||||
Receivables:
|
|||||||
Fund shares sold
|
367,195
|
||||||
Dividends and interest
|
16,135
|
||||||
Prepaid expenses:
|
|||||||
Registration and filing expenses
|
26,750
|
||||||
Professional fees
|
21,915
|
||||||
Fund accounting fees
|
3,094
|
||||||
Insurance fees
|
2,144
|
||||||
Total assets
|
55,277,911
|
||||||
Liabilities:
|
|||||||
Payables:
|
|||||||
Fund shares repurchased
|
422,900
|
||||||
Accrued expenses:
|
|||||||
Advisory fees
|
13,137
|
||||||
Trustee fees and meeting expenses
|
4,852
|
||||||
Shareholder fulfillment fees
|
2,474
|
||||||
Distribution and service fees - Class C Shares and Class A Shares
|
2,168
|
||||||
Transfer agent fees
|
569
|
||||||
Security pricing fees
|
541
|
||||||
Custody fees
|
298
|
||||||
Compliance fees
|
186
|
||||||
Administration fees
|
173
|
||||||
Miscellaneous reporting expenses
|
169
|
||||||
Total liabilities
|
447,467
|
||||||
Total Net Assets
|
$
|
54,830,444
|
|||||
Net Assets Consist of:
|
|||||||
Paid in capital
|
$
|
39,925,074
|
|||||
Distributable earnings
|
14,905,370
|
||||||
Total Net Assets
|
$
|
54,830,444
|
|||||
Institutional Class Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
3,116,729
|
||||||
Net Assets
|
$
|
51,164,210
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share
|
$
|
16.42
|
|||||
Class C Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
185,605
|
||||||
Net Assets
|
$
|
2,858,221
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share (a)
|
$
|
15.40
|
|||||
Class A Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
82,385
|
||||||
Net Assets
|
$
|
808,013
|
|||||
Net Asset Value and Redemption Price Per Share
|
$
|
9.81
|
|||||
Maximum Offering Price Per Share ($9.81 ÷ 95.50%)(b)
|
$
|
10.27
|
|||||
(a)
|
Contingent deferred sales charge for Class C Shares is imposed on shares redeemed within one year of the purchase date (note 1).
|
||||||
(b)
|
The Fund charges a 4.50% maximum sales load on all initial purchases.
|
||||||
See Notes to Financial Statements
|
Adaptive Fundamental Growth Fund
|
|||||||
Statement of Operations
|
|||||||
(Unaudited)
|
|||||||
For the fiscal period ended November 30, 2020
|
|||||||
Investment Income:
|
|||||||
Dividends (net of withholding taxes of $1,621)
|
$
|
168,682
|
|||||
Total Investment Income
|
168,682
|
||||||
Expenses:
|
|||||||
Advisory fees (note 2)
|
271,837
|
||||||
Professional fees
|
31,491
|
||||||
Administration fees (note 2)
|
30,420
|
||||||
Transfer agent fees (note 2)
|
25,335
|
||||||
Registration and filing expenses
|
22,932
|
||||||
Fund accounting fees (note 2)
|
22,367
|
||||||
Distribution and service fees - Class C Shares (note 4)
|
12,987
|
||||||
Shareholder fulfillment fees
|
11,529
|
||||||
Custody fees (note 2)
|
9,331
|
||||||
Trustee fees and meeting expenses (note 3)
|
4,392
|
||||||
Security pricing fees
|
3,653
|
||||||
Compliance fees (note 2)
|
2,636
|
||||||
Insurance fees
|
2,588
|
||||||
Interest expense
|
2,459
|
||||||
Distribution and service fees - Class A Shares (note 4)
|
1,185
|
||||||
Miscellaneous reporting expenses (note 2)
|
915
|
||||||
Total Expenses
|
456,057
|
||||||
Fees waived by Advisor (note 2)
|
(97,943)
|
||||||
Net Expenses
|
358,114
|
||||||
Net Investment Loss
|
(189,432)
|
||||||
Realized and Unrealized Gain (Loss) on Investments:
|
|||||||
Net realized gain from investment transactions
|
14,274,338
|
||||||
Net change in unrealized depreciation on investments
|
(3,871,417)
|
||||||
Net Realized and Unrealized Gain on Investments
|
10,402,921
|
||||||
Net Increase in Net Assets Resulting from Operations
|
$
|
10,213,489
|
|||||
See Notes to Financial Statements
|
Adaptive Fundamental Growth Fund
|
||||||||||||
Statements of Changes in Net Assets
|
||||||||||||
November 30,
|
May 31,
|
|||||||||||
For the fiscal year or period ended
|
2020
|
(a)
|
2020
|
|||||||||
Operations:
|
||||||||||||
Net investment loss
|
$
|
(189,432)
|
$
|
(131,463)
|
||||||||
Net realized gain (loss) from investment transactions
|
14,274,338
|
(2,320,087)
|
||||||||||
Net change in unrealized appreciation (depreciation) on investments
|
(3,871,417)
|
8,708,004
|
||||||||||
Net Increase in Net Assets Resulting from Operations
|
10,213,489
|
6,256,454
|
||||||||||
Distributions to Shareholders:
|
||||||||||||
Institutional Class Shares
|
-
|
(29,438)
|
||||||||||
Class C Shares
|
-
|
(991)
|
||||||||||
Class A Shares
|
-
|
(573)
|
||||||||||
Decrease in Net Assets Resulting from Distributions
|
-
|
(31,002)
|
||||||||||
Beneficial Interest Transactions:
|
||||||||||||
Shares sold
|
20,458,973
|
8,009,809
|
||||||||||
Reinvested dividends and distributions
|
-
|
29,515
|
||||||||||
Shares repurchased
|
(54,131,240)
|
(19,521,938)
|
||||||||||
Decrease from Beneficial Interest Transactions
|
(33,672,267)
|
(11,482,614)
|
||||||||||
Net Decrease in Net Assets
|
(23,458,778)
|
(5,257,162)
|
||||||||||
Net Assets:
|
||||||||||||
Beginning of Period
|
78,289,222
|
83,546,384
|
||||||||||
End of Period
|
$
|
54,830,444
|
$
|
78,289,222
|
||||||||
Share Information:
|
November 30, 2020 (a)
|
May 31, 2020
|
||||||||||
Institutional Class Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||
Shares sold
|
1,367,664
|
$
|
19,822,610
|
553,937
|
$
|
7,394,028
|
||||||
Reinvested dividends and distributions
|
-
|
-
|
1,980
|
28,056
|
||||||||
Shares repurchased
|
(3,758,139)
|
(53,230,220)
|
(1,417,097)
|
(18,704,137)
|
||||||||
Net Increase (Decrease) in Shares of
|
||||||||||||
Beneficial Interest
|
(2,390,475)
|
$
|
(33,407,610)
|
(861,180)
|
$
|
(11,282,053)
|
||||||
Class C Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||
Shares sold
|
31,789
|
$
|
467,604
|
18,224
|
$
|
237,333
|
||||||
Reinvested dividends and distributions
|
-
|
-
|
69
|
932
|
||||||||
Shares repurchased
|
(31,608)
|
(457,004)
|
(52,792)
|
(675,133)
|
||||||||
Net Increase (Decrease) in Shares of
|
||||||||||||
Beneficial Interest
|
181
|
$
|
10,600
|
(34,499)
|
$
|
(436,868)
|
||||||
Class A Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||
Shares sold
|
17,961
|
$
|
168,759
|
48,457
|
$
|
378,448
|
||||||
Reinvested dividends and distributions
|
-
|
-
|
62
|
527
|
||||||||
Shares repurchased
|
(47,187)
|
(444,016)
|
(17,135)
|
(142,668)
|
||||||||
Net Increase (Decrease) in Shares of
|
||||||||||||
Beneficial Interest
|
(29,226)
|
$
|
(275,257)
|
31,384
|
$
|
236,307
|
||||||
(a)
|
Unaudited.
|
|||||||||||
See Notes to Financial Statements
|
Adaptive Fundamental Growth Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Institutional Class Shares
|
|||||||||||||||
For a share outstanding during each
|
|
November 30, |
May 31,
|
||||||||||||
of the fiscal years or period ended
|
2020
|
(g)
|
2020
|
2019
|
2018
|
2017
|
|||||||||
|
|||||||||||||||
Net Asset Value, Beginning of Period
|
$
|
13.62
|
$
|
12.61
|
$
|
16.06
|
$
|
13.69
|
$
|
11.58
|
|||||
Income (Loss) from Investment Operations
|
|||||||||||||||
Net investment income (loss) (c)
|
(0.05)
|
(0.02)
|
(0.01)
|
(0.06)
|
0.03
|
||||||||||
Net realized and unrealized gain (loss) on
|
|||||||||||||||
investments
|
2.85
|
1.04
|
(2.43)
|
3.05
|
2.10
|
||||||||||
Total from Investment Operations
|
2.80
|
1.02
|
(2.44)
|
2.99
|
2.13
|
||||||||||
Less Distributions:
|
|||||||||||||||
|
From net investment income |
-
|
(0.01)
|
-
|
-
|
(0.02)
|
|||||||||
|
From net realized gains |
-
|
-
|
(1.01)
|
(0.62)
|
-
|
|||||||||
Total Distributions
|
-
|
(0.01)
|
(1.01)
|
(0.62)
|
(0.02)
|
||||||||||
Net Asset Value, End of Period
|
$
|
16.42
|
$
|
13.62
|
$
|
12.61
|
$
|
16.06
|
$
|
13.69
|
|||||
Total Return (a)
|
20.38%
|
(i)
|
8.05%
|
(13.63)%
|
22.23%
|
18.42%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
51,163
|
$
|
74,999
|
$
|
80,299
|
$
|
102,233
|
$
|
63,142
|
|||||
Ratios of:
|
|||||||||||||||
Interest Expense to Average Net Assets
|
0.00%
|
(f)(h)
|
0.01%
|
-
|
-
|
-
|
|||||||||
Gross Expenses to Average Net Assets (b)
|
1.60%
|
(e)(h)
|
1.47%
|
(e)
|
1.39%
|
1.39%
|
1.55%
|
||||||||
Net Expenses to Average Net Assets (b)
|
1.25%
|
(e)(h)
|
1.25%
|
(e)
|
1.25%
|
1.25%
|
1.18%
|
||||||||
Net Investment Income (Loss) to
|
|||||||||||||||
Average Net Assets (b)(d)
|
(0.63)%
|
(h)
|
(0.13)%
|
(0.07)%
|
(0.39)%
|
0.29%
|
|||||||||
Portfolio turnover rate
|
123.58%
|
(i)
|
72.71%
|
122.27%
|
124.11%
|
135.58%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Calculated using the average shares method.
|
||||||||||||||
(d)
|
Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(e)
|
Includes interest expense.
|
||||||||||||||
(f)
|
Less than 0.01%.
|
||||||||||||||
(g)
|
Unaudited.
|
||||||||||||||
(h)
|
Annualized.
|
||||||||||||||
(i)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
(Continued)
|
Adaptive Fundamental Growth Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Class C Shares
|
|||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(h)
|
2020
|
2019
|
2018
|
2017
|
(d)
|
||||||||
Net Asset Value, Beginning of Period
|
$
|
12.84
|
$
|
12.01
|
$
|
15.51
|
$
|
13.38
|
$
|
11.42
|
|||||
Income (Loss) from Investment Operations
|
|||||||||||||||
Net investment loss (c)
|
(0.12)
|
(0.14)
|
(0.15)
|
(0.20)
|
(0.06)
|
||||||||||
Net realized and unrealized gain (loss) on
|
|||||||||||||||
investments
|
2.68
|
0.98
|
(2.34)
|
2.95
|
2.04
|
||||||||||
Total from Investment Operations
|
2.56
|
0.84
|
(2.49)
|
2.75
|
1.98
|
||||||||||
Less Distributions:
|
|||||||||||||||
From net investment income
|
-
|
(0.01)
|
-
|
-
|
(0.02)
|
||||||||||
From net realized gains
|
-
|
-
|
(1.01)
|
(0.62)
|
-
|
||||||||||
Total from Investment Operations
|
-
|
(0.01)
|
(1.01)
|
(0.62)
|
(0.02)
|
||||||||||
Net Asset Value, End of Period
|
$
|
15.40
|
$
|
12.84
|
$
|
12.01
|
$
|
15.51
|
$
|
13.38
|
|||||
Total Return (a)
|
19.75%
|
(j)
|
6.95%
|
(14.47)%
|
20.92%
|
17.37%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
2,859
|
$
|
2,381
|
$
|
2,641
|
$
|
3,028
|
$
|
2,423
|
|||||
Ratios of:
|
|||||||||||||||
Interest Expense to Average Net Assets
|
0.00%
|
(g)
|
0.01%
|
-
|
-
|
-
|
|||||||||
Gross Expenses to Average Net Assets (b)
|
2.56%
|
(f)(i)
|
2.47%
|
(f)
|
2.39%
|
2.39%
|
2.49%
|
||||||||
Net Expenses to Average Net Assets (b)
|
2.25%
|
(f)(i)
|
2.25%
|
(f)
|
2.25%
|
2.25%
|
2.13%
|
||||||||
Net Investment Loss to Average
|
|||||||||||||||
Net Assets (b)(e)
|
(1.69)%
|
(i)
|
(1.13)%
|
(1.07)%
|
(1.39)%
|
(0.51)%
|
|||||||||
Portfolio turnover rate
|
123.58%
|
(j)
|
72.71%
|
122.27%
|
124.11%
|
135.58%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Calculated using the average shares method.
|
||||||||||||||
(d)
|
As of February 24, 2017, the "Advisor Class" Shares were renamed to the "Class C" Shares. There were no other changes to this class of shares.
|
||||||||||||||
(e)
|
Recognition of net investment loss by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(f)
|
Includes interest expense.
|
||||||||||||||
(g)
|
Less than 0.01%.
|
||||||||||||||
(h)
|
Unaudited.
|
||||||||||||||
(i)
|
Annualized.
|
||||||||||||||
(j)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
(Continued)
|
Adaptive Fundamental Growth Fund
|
|||||||||||||
Financial Highlights
|
|||||||||||||
Class A Shares
|
|||||||||||||
For a share outstanding during
|
November 30,
|
May 31,
|
|||||||||||
the fiscal years or periods ended
|
2020
|
(l)
|
2020
|
2019
|
2018
|
(j)
|
|||||||
Net Asset Value, Beginning of Period
|
$
|
8.15
|
$
|
7.56
|
$
|
10.25
|
$
|
10.00
|
|||||
Income (Loss) from Investment Operations
|
|||||||||||||
Net investment loss (e)
|
(0.04)
|
(0.03)
|
(0.03)
|
(0.00)
|
(h)
|
||||||||
Net realized and unrealized gain (loss) on
|
|||||||||||||
investments
|
1.70
|
0.63
|
(1.65)
|
0.25
|
|||||||||
Total from Investment Operations
|
1.66
|
0.60
|
(1.68)
|
0.25
|
|||||||||
Less Distributions:
|
|||||||||||||
From net investment income
|
-
|
(0.01)
|
-
|
-
|
|||||||||
From net realized gains
|
-
|
-
|
(1.01)
|
-
|
|||||||||
Total from Investment Operations
|
-
|
(0.01)
|
(1.01)
|
-
|
|||||||||
Net Asset Value, End of Period
|
$
|
9.81
|
$
|
8.15
|
$
|
7.56
|
$
|
10.25
|
|||||
Total Return (c)(g)
|
20.22%
|
(b)
|
7.87%
|
(13.95)%
|
2.50%
|
(b)
|
|||||||
Net Assets, End of Period (in thousands)
|
$
|
808
|
$
|
909
|
$
|
607
|
$
|
478
|
|||||
Ratios of:
|
|||||||||||||
Interest Expense to Average Net Assets
|
0.00%
|
(m)
|
0.01%
|
-
|
-
|
||||||||
Gross Expenses to Average Net Assets (d)
|
1.82%
|
(a)(k)
|
1.72%
|
(k)
|
1.64%
|
1.72%
|
(a)
|
||||||
Net Expenses to Average Net Assets (d)
|
1.50%
|
(a)(k)
|
1.50%
|
(k)
|
1.50%
|
1.47%
|
(a)
|
||||||
Net Investment Loss to Average
|
|||||||||||||
Net Assets (d)(f)
|
(0.93)%
|
(a)
|
(0.37)%
|
(0.30)%
|
(0.20)%
|
(a)
|
|||||||
Portfolio turnover rate
|
123.58%
|
(b)
|
72.71%
|
122.27%
|
124.11%
|
(b)(i)
|
|||||||
(a)
|
Annualized.
|
||||||||||||
(b)
|
Not annualized.
|
||||||||||||
(c)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||
(d)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||
(e)
|
Calculated using the average shares method.
|
||||||||||||
(f)
|
Recognition of net investment loss by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||
(g)
|
Does not include impact of sales charge, if any.
|
||||||||||||
(h)
|
Less than $0.01 per share.
|
||||||||||||
(i)
|
Portfolio turnover rate is calculated based on the entire Fund, not the Class A Shares.
|
||||||||||||
(j)
|
For the period from March 13, 2018 (Date of Initial Public Investment) through May 31, 2018.
|
||||||||||||
(k)
|
Includes interest expense.
|
||||||||||||
(l)
|
Unaudited.
|
||||||||||||
(m)
|
Less than 0.01%.
|
||||||||||||
See Notes to Financial Statements
|
Adaptive Growth Opportunities Fund
|
|||||||||
Schedule of Investments
|
|||||||||
(Unaudited)
|
|||||||||
As of November 30, 2020
|
|||||||||
Shares
|
Value (Note 1)
|
||||||||
EXCHANGE-TRADED PRODUCTS - 92.11%
|
|||||||||
Communication Services - 11.32%
|
|||||||||
Communication Services Select Sector SPDR ETF
|
61,853
|
$
|
4,045,186
|
||||||
ETFMG Prime Mobile Payments ETF
|
115,855
|
7,108,863
|
|||||||
11,154,049
|
|||||||||
Consumer Discretionary - 10.20%
|
|||||||||
Amplify Online Retail ETF
|
56,773
|
5,998,067
|
|||||||
Consumer Discretionary Select Sector SPDR ETF
|
25,795
|
4,056,522
|
|||||||
10,054,589
|
|||||||||
Financials - 6.30%
|
|||||||||
Financial Select Sector SPDR ETF
|
93,639
|
2,610,655
|
|||||||
iShares U.S. Broker-Dealers & Securities Exchanges ETF
|
23,965
|
1,742,975
|
|||||||
SPDR S&P Capital Markets ETF
|
14,411
|
994,536
|
|||||||
SPDR S&P Regional Banking ETF
|
18,000
|
856,800
|
|||||||
6,204,966
|
|||||||||
Health Care - 13.23%
|
|||||||||
Invesco DWA Healthcare Momentum ETF
|
32,491
|
4,832,062
|
|||||||
iShares U.S. Medical Devices ETF
|
12,430
|
3,893,200
|
|||||||
SPDR S&P Biotech ETF
|
19,790
|
2,636,028
|
|||||||
SPDR S&P Health Care Services ETF
|
18,763
|
1,682,339
|
|||||||
13,043,629
|
|||||||||
Industrials - 3.64%
|
|||||||||
Global X Lithium & Battery Tech ETF
|
68,764
|
3,590,856
|
|||||||
Information Technology - 35.18%
|
|||||||||
First Trust Cloud Computing ETF
|
67,728
|
6,082,652
|
|||||||
iShares Expanded Technology Software ETF
|
19,247
|
6,499,904
|
|||||||
iShares PHLX Semiconductor ETF
|
14,559
|
5,267,592
|
|||||||
O'Shares Global Internet Giants ETF
|
81,065
|
4,127,830
|
|||||||
Technology Select Sector SPDR ETF
|
59,953
|
7,402,997
|
|||||||
Vaneck Vectors Semiconductor ETF
|
25,353
|
5,288,889
|
|||||||
34,669,864
|
|||||||||
Large-Cap - 7.33%
|
|||||||||
SPDR S&P 500 ETF Trust
|
19,944
|
7,220,925
|
|||||||
Materials - 4.91%
|
|||||||||
SPDR S&P Homebuilders ETF
|
84,579
|
4,840,456
|
|||||||
Total Exchange-Traded Products (Cost $72,091,855)
|
90,779,334
|
||||||||
SHORT-TERM INVESTMENT - 7.87%
|
|||||||||
§
|
Fidelity Investments Money Market Government Portfolio -
|
||||||||
Class I, 0.01%
|
7,757,819
|
7,757,819
|
|||||||
Total Short-Term Investment (Cost $7,757,819)
|
7,757,819
|
||||||||
(Continued)
|
Adaptive Growth Opportunities Fund
|
|||||||||
Schedule of Investments - Continued
|
|||||||||
(Unaudited)
|
|||||||||
As of November 30, 2020
|
|||||||||
Value (Note 1)
|
|||||||||
Investments, at Value (Cost $79,849,674) - 99.98%
|
$
|
98,537,153
|
|||||||
Other Assets Less Liabilities - 0.02%
|
23,293
|
||||||||
Net Assets - 100.00%
|
$
|
98,560,446
|
|||||||
§
|
Represents 7 day effective yield as of November 30, 2020.
|
||||||||
Summary of Investments
|
|||||||||
by Industry
|
% of Net Assets
|
Value
|
|||||||
Exchange-Traded Products:
|
|||||||||
Communication Services
|
11.32%
|
$
|
11,154,049
|
||||||
Consumer Discretionary
|
10.20%
|
10,054,589
|
|||||||
Financials
|
6.30%
|
6,204,966
|
|||||||
Health Care
|
13.23%
|
13,043,629
|
|||||||
Industrials
|
3.64%
|
3,590,856
|
|||||||
Information Technology
|
35.18%
|
34,669,864
|
|||||||
Large-Cap
|
7.33%
|
7,220,925
|
|||||||
Materials
|
4.91%
|
4,840,456
|
|||||||
Short-Term Investment
|
7.87%
|
7,757,819
|
|||||||
Other Assets Less Liabilities
|
0.02%
|
23,293
|
|||||||
Total Net Assets
|
100.00%
|
$
|
98,560,446
|
||||||
See Notes to Financial Statements
|
Adaptive Growth Opportunities Fund
|
||||||
Statement of Assets and Liabilities
|
||||||
(Unaudited)
|
||||||
As of November 30, 2020
|
||||||
Assets:
|
||||||
Investments, at value (cost $79,849,674)
|
98,537,153
|
|||||
Cash
|
2,805
|
|||||
Due from broker
|
5
|
|||||
Receivables:
|
||||||
Fund shares sold
|
506,375
|
|||||
Dividends and interest
|
62
|
|||||
Prepaid expenses:
|
||||||
Registration and filing expenses
|
38,285
|
|||||
Fund accounting fees
|
3,096
|
|||||
Insurance expenses
|
2,008
|
|||||
Compliance fees
|
676
|
|||||
Total assets
|
99,090,465
|
|||||
Liabilities:
|
||||||
Payables:
|
||||||
Fund shares repurchased
|
471,906
|
|||||
Accrued expenses:
|
||||||
Advisory fees
|
36,006
|
|||||
Professional fees
|
6,328
|
|||||
Trustee fees and meeting expenses
|
6,139
|
|||||
Custody fees
|
3,831
|
|||||
Shareholder fulfillment fees
|
2,977
|
|||||
Distribution and service fees - Class C Shares and Class A Shares
|
1,576
|
|||||
Transfer agent fees
|
598
|
|||||
Security pricing fees
|
330
|
|||||
Administration fees
|
157
|
|||||
Miscellaneous reporting expenses
|
171
|
|||||
Total liabilities
|
530,019
|
|||||
Net Assets
|
$
|
98,560,446
|
||||
Net Assets Consist of:
|
||||||
Paid in capital
|
$
|
75,949,618
|
||||
Distributable earnings
|
22,610,828
|
|||||
Total Net Assets
|
$
|
98,560,446
|
||||
Institutional Class Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
||||||
Net Assets
|
$
|
94,409,270
|
||||
Net Asset Value, Offering Price and Redemption Price Per Share
|
22.39
|
|||||
Class C Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
||||||
Net Assets
|
$
|
1,878,011
|
||||
Net Asset Value, Offering Price and Redemption Price Per Share (a)
|
20.94
|
|||||
Class A Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
||||||
Net Assets
|
$
|
2,273,165
|
||||
Net Asset Value and Redemption Price Per Share
|
12.00
|
|||||
Maximum Offering Price Per Share ($12.00 ÷ 95.50%)(b)
|
12.56
|
|||||
(a)
|
Contingent deferred sales charge for Class C Shares is imposed on shares redeemed within one year of the purchase date (note 1).
|
|||||
(b)
|
The Fund charges a 4.50% maximum sales load on all initial purchases.
|
|||||
See Notes to Financial Statements
|
Adaptive Growth Opportunities Fund
|
|||||||
Statement of Operations
|
|||||||
(Unaudited)
|
|||||||
For the fiscal period ended November 30, 2020
|
|||||||
Investment Income:
|
|||||||
Dividends
|
$
|
169,971
|
|||||
Total Investment Income
|
169,971
|
||||||
Expenses:
|
|||||||
Advisory fees (note 2)
|
379,852
|
||||||
Administration fees (note 2)
|
40,547
|
||||||
Registration and filing expenses
|
33,540
|
||||||
Transfer agent fees (note 2)
|
30,895
|
||||||
Fund accounting fees (note 2)
|
23,379
|
||||||
Professional fees
|
18,236
|
||||||
Shareholder fulfillment fees
|
14,457
|
||||||
Custody fees (note 2)
|
10,159
|
||||||
Distribution and service fees - Class C Shares (note 4)
|
7,559
|
||||||
Interest expense
|
6,594
|
||||||
Compliance fees (note 2)
|
4,026
|
||||||
Trustee fees and meeting expenses (note 3)
|
3,798
|
||||||
Insurance expenses
|
2,207
|
||||||
Security pricing fees
|
1,647
|
||||||
Distribution and service fees - Class A Shares (note 4)
|
1,357
|
||||||
Miscellaneous reporting expenses (note 2)
|
917
|
||||||
Total Expenses
|
579,170
|
||||||
Fees waived by Advisor (note 2)
|
(88,844)
|
||||||
Net Expenses
|
490,326
|
||||||
Net Investment Loss
|
(320,355)
|
||||||
Realized and Unrealized Gain on Investments:
|
|||||||
Net realized gain from investment transactions
|
2,803,110
|
||||||
Net change in unrealized appreciation on investments
|
15,611,405
|
||||||
Net Realized and Unrealized Gain on Investments
|
18,414,515
|
||||||
Net Increase in Net Assets Resulting from Operations
|
$
|
18,094,160
|
|||||
See Notes to Financial Statements
|
Adaptive Growth Opportunities Fund
|
|||||||||||
Statements of Changes in Net Assets
|
|||||||||||
November 30,
|
May 31,
|
||||||||||
For the fiscal year or period ended
|
2020
|
(a)
|
2020
|
||||||||
Operations:
|
|||||||||||
Net investment income (loss)
|
$
|
(320,355)
|
$
|
34,959
|
|||||||
Net realized gain from investment transactions
|
2,803,110
|
4,345,385
|
|||||||||
Net change in unrealized appreciation on investments
|
15,611,405
|
4,445,475
|
|||||||||
Net Increase in Net Assets Resulting from Operations
|
18,094,160
|
8,825,819
|
|||||||||
Distributions to Shareholders:
|
|||||||||||
Institutional Class Shares
|
-
|
(1,779,848)
|
|||||||||
Class C Shares
|
-
|
(32,066)
|
|||||||||
Class A Shares
|
-
|
(25,086)
|
|||||||||
Net Decrease in Net Assets Resulting from Distributions
|
-
|
(1,837,000)
|
|||||||||
Beneficial Interest Transactions:
|
|||||||||||
Shares sold
|
37,535,856
|
27,636,231
|
|||||||||
Reinvested dividends and distributions
|
-
|
1,519,120
|
|||||||||
Shares repurchased
|
(19,161,650)
|
(28,445,149)
|
|||||||||
Net Increase from Beneficial Interest Transactions
|
18,374,206
|
710,202
|
|||||||||
Net Increase in Net Assets
|
36,468,366
|
7,699,021
|
|||||||||
Net Assets:
|
|||||||||||
Beginning of Period
|
62,092,080
|
54,393,059
|
|||||||||
End of Period
|
$
|
98,560,446
|
$
|
62,092,080
|
|||||||
Share Information:
|
November 30, 2020 (a)
|
May 31, 2020
|
|||||||||
Institutional Class Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
1,744,583
|
$
|
35,292,691
|
1,590,458
|
$
|
26,603,783
|
|||||
Reinvested dividends and distributions
|
-
|
-
|
86,910
|
1,465,301
|
|||||||
Shares repurchased
|
(896,363)
|
(18,214,808)
|
(1,718,069)
|
(28,009,831)
|
|||||||
Net Increase (Decrease) in Shares of
|
|||||||||||
Beneficial Interest
|
848,220
|
$
|
17,077,883
|
(40,701)
|
$
|
59,253
|
|||||
Class C Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
27,282
|
$
|
527,205
|
15,911
|
$
|
251,125
|
|||||
Reinvested dividends and distributions
|
-
|
-
|
2,014
|
32,066
|
|||||||
Shares repurchased
|
(11,573)
|
(226,883)
|
(12,433)
|
(193,295)
|
|||||||
Net Increase in Shares of
|
|||||||||||
Beneficial Interest
|
15,709
|
$
|
300,322
|
5,492
|
$
|
89,896
|
|||||
Class A Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
152,339
|
$
|
1,715,961
|
85,727
|
$
|
781,323
|
|||||
Reinvested dividends and distributions
|
-
|
-
|
2,404
|
21,753
|
|||||||
Shares repurchased
|
(66,431)
|
(719,960)
|
(27,495)
|
(242,023)
|
|||||||
Net Increase in Shares of
|
|||||||||||
Beneficial Interest
|
85,908
|
$
|
996,001
|
60,636
|
$
|
561,053
|
|||||
(a)
|
Unaudited.
|
||||||||||
See Notes to Financial Statements
|
Adaptive Growth Opportunities Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
|
Institutional Class Shares |
||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(f)
|
2020
|
2019
|
2018
|
2017
|
|||||||||
Net Asset Value, Beginning of Period
|
$
|
17.78
|
$
|
15.55
|
$
|
17.45
|
$
|
14.56
|
$
|
11.81
|
|||||
Income (Loss) from Investment Operations:
|
|||||||||||||||
Net investment income (loss) (d)
|
(0.08)
|
0.01
|
0.01
|
(0.08)
|
0.05
|
||||||||||
Net realized and unrealized gain (loss)
|
|||||||||||||||
on investments
|
4.69
|
2.69
|
(0.93)
|
2.99
|
2.73
|
||||||||||
Total from Investment Operations
|
4.61
|
2.70
|
(0.92)
|
2.91
|
2.78
|
||||||||||
Less Distributions From:
|
|||||||||||||||
Net investment income
|
-
|
-
|
(0.82)
|
(0.02)
|
(0.03)
|
||||||||||
Net realized gains
|
-
|
(0.47)
|
(0.16)
|
-
|
-
|
||||||||||
Total Distributions
|
-
|
(0.47)
|
(0.98)
|
(0.02)
|
(0.03)
|
||||||||||
Net Asset Value, End of Period
|
$
|
22.39
|
$
|
17.78
|
$
|
15.55
|
$
|
17.45
|
$
|
14.56
|
|||||
Total Return (a)
|
25.79%
|
(h)
|
17.50%
|
(4.37)%
|
19.98%
|
23.53%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
94,410
|
$
|
59,869
|
$
|
53,013
|
$
|
37,778
|
$
|
22,149
|
|||||
Ratios of:
|
|||||||||||||||
Interest Expense to Average Net Assets
|
0.01%
|
0.01%
|
-
|
-
|
-
|
||||||||||
Gross Expenses to Average Net Assets (b)
|
1.51%
|
(e)(g)
|
1.58%
|
(e)
|
1.57%
|
1.81%
|
2.56%
|
||||||||
Net Expenses to Average Net Assets (b)
|
1.26%
|
(e)(g)
|
1.26%
|
(e)
|
1.27%
|
1.35%
|
1.24%
|
||||||||
Net Investment Income (Loss) to
|
|||||||||||||||
Average Net Assets (b)(c)
|
(0.82)%
|
(g)
|
0.07%
|
0.08%
|
(0.52)%
|
0.39%
|
|||||||||
Portfolio turnover rate
|
51.80%
|
(h)
|
319.85%
|
268.30%
|
491.30%
|
439.72%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(d)
|
Calculated using the average shares method.
|
||||||||||||||
(e)
|
Includes interest expense.
|
||||||||||||||
(f)
|
Unaudited.
|
||||||||||||||
(g)
|
Annualized.
|
||||||||||||||
(h)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Growth Opportunities Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
|
Class C Shares
|
||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(g)
|
2020
|
2019
|
2018
|
2017
|
(e)
|
||||||||
Net Asset Value, Beginning of Period
|
$
|
16.71
|
$
|
14.79
|
$
|
16.81
|
$
|
14.22
|
$
|
11.61
|
|||||
Income (Loss) from Investment Operations:
|
|||||||||||||||
Net investment loss (d)
|
(0.17)
|
(0.14)
|
(0.15)
|
(0.28)
|
(0.01)
|
||||||||||
Net realized and unrealized gain (loss)
|
|||||||||||||||
on investments
|
4.40
|
2.53
|
(0.89)
|
2.89
|
2.65
|
||||||||||
Total from Investment Operations
|
4.23
|
2.39
|
(1.04)
|
2.61
|
2.64
|
||||||||||
Less Distributions From:
|
|||||||||||||||
Net investment income
|
-
|
-
|
(0.82)
|
(0.02)
|
(0.03)
|
||||||||||
Net realized gains
|
-
|
(0.47)
|
(0.16)
|
-
|
-
|
||||||||||
Total Distributions
|
-
|
(0.47)
|
(0.98)
|
(0.02)
|
(0.03)
|
||||||||||
Net Asset Value, End of Period
|
$
|
20.94
|
$
|
16.71
|
$
|
14.79
|
$
|
16.81
|
$
|
14.22
|
|||||
Total Return (a)
|
25.16%
|
(i)
|
16.29%
|
(5.28)%
|
18.35%
|
22.73%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
1,878
|
$
|
1,236
|
$
|
1,013
|
$
|
1,079
|
$
|
871
|
|||||
Ratios of:
|
|||||||||||||||
Interest Expense to Average Net Assets
|
0.01%
|
0.01%
|
-
|
-
|
-
|
||||||||||
Gross Expenses to Average Net Assets (b)
|
2.51%
|
(f)(h)
|
2.58%
|
(f)
|
2.57%
|
2.81%
|
2.91%
|
||||||||
Net Expenses to Average Net Assets (b)
|
2.26%
|
(f)(h)
|
2.25%
|
(f)
|
2.27%
|
2.35%
|
2.14%
|
||||||||
Net Investment Loss to Average
|
|||||||||||||||
Net Assets (b)(c)
|
(1.81)%
|
(h)
|
(0.91)%
|
(0.94)%
|
(1.80)%
|
(0.09)%
|
|||||||||
Portfolio turnover rate
|
51.80%
|
(i)
|
319.85%
|
268.30%
|
491.30%
|
439.72%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values may
differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Recognition of net investment loss by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(d)
|
Calculated using the average shares method.
|
||||||||||||||
(e)
|
As of February 24, 2017, the "Advisor Class" Shares were renamed to the "Class C" Shares. There were no other changes to this class of shares.
|
||||||||||||||
(f)
|
Includes interest expense.
|
||||||||||||||
(g)
|
Unaudited.
|
||||||||||||||
(h)
|
Annualized.
|
||||||||||||||
(i)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Growth Opportunities Fund
|
||||||||||
Financial Highlights
|
||||||||||
Class A Shares
|
||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
||||||||
of the fiscal years or periods ended
|
2020
|
(k)
|
2020
|
2019
|
2018
|
(h)
|
||||
Net Asset Value, Beginning of Period
|
$
|
9.53
|
$
|
8.56
|
$
|
10.15
|
$
|
10.00
|
||
Income (Loss) from Investment Operations:
|
||||||||||
Net investment loss (e)
|
(0.06)
|
(0.03)
|
(0.03)
|
(0.02)
|
||||||
Net realized and unrealized gain (loss)
|
||||||||||
on investments
|
2.53
|
1.47
|
(0.58)
|
0.17
|
||||||
Total from Investment Operations
|
2.47
|
1.44
|
(0.61)
|
0.15
|
||||||
Less Distributions From:
|
||||||||||
Net investment income
|
-
|
-
|
(0.82)
|
-
|
||||||
Net realized gains
|
-
|
(0.47)
|
(0.16)
|
-
|
||||||
Total Distributions
|
-
|
(0.47)
|
(0.98)
|
-
|
||||||
Net Asset Value, End of Period
|
$
|
12.00
|
$
|
9.53
|
$
|
8.56
|
$
|
10.15
|
||
Total Return (f)(j)
|
25.65%
|
(b)
|
17.06%
|
(4.45)%
|
1.50%
|
(b)
|
||||
Net Assets, End of Period (in thousands)
|
$
|
2,272
|
$
|
987
|
$
|
367
|
$
|
10
|
||
Ratios of:
|
||||||||||
Interest Expense to Average Net Assets
|
0.01%
|
0.01%
|
-
|
-
|
||||||
Gross Expenses to Average Net Assets (c)
|
1.74%
|
(a)(i)
|
1.83%
|
(i)
|
1.82%
|
2.00%
|
(a)
|
|||
Net Expenses to Average Net Assets (c)
|
1.51%
|
(a)(i)
|
1.51%
|
(i)
|
1.52%
|
1.60%
|
(a)
|
|||
Net Investment Loss to Average
|
||||||||||
Net Assets (c)(d)
|
(1.10)%
|
(a)
|
(0.39)%
|
(0.28)%
|
(1.59)%
|
(a)
|
||||
Portfolio turnover rate
|
51.80%
|
(b)
|
319.85%
|
268.30%
|
491.30%
|
(b)(g)
|
||||
(a)
|
Annualized.
|
|||||||||
(b)
|
Not annualized.
|
|||||||||
(c)
|
Does not include expenses of the investment companies in which the Fund invests.
|
|||||||||
(d)
|
Recognition of net investment loss by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
|||||||||
(e)
|
Calculated using the average shares method.
|
|||||||||
(f)
|
Does not include impact of sales charge, if any.
|
|||||||||
(g)
|
Portfolio turnover rate is calculated based on the entire Fund, not the Class A Shares.
|
|||||||||
(h)
|
For a share outstanding during the period from April 16, 2018 (Date of Initial Public Investment) through May 31, 2018.
|
|||||||||
(i)
|
Includes interest expense.
|
|||||||||
(j)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
|||||||||
(k)
|
Unaudited.
|
|||||||||
See Notes to Financial Statements
|
Adaptive Hedged High Income Fund
|
|||||||||
Schedule of Investments
|
|||||||||
(Unaudited)
|
|||||||||
As of November 30, 2020
|
|||||||||
Shares
|
Value (Note 1)
|
||||||||
EXCHANGE-TRADED PRODUCTS - 97.62%
|
|||||||||
Debt Funds - 97.62%
|
|||||||||
Goldman Sachs Access High Yield Corporate Bond ETF
|
124,114
|
$
|
6,177,327
|
||||||
SPDR Bloomberg Barclays High Yield Bond ETF
|
3,652
|
392,700
|
|||||||
Van Eck Vectors Fallen Angel High Yield Bond ETF
|
59,089
|
1,860,122
|
|||||||
Total Exchange-Traded Products (Cost $7,902,634)
|
8,430,149
|
||||||||
SHORT-TERM INVESTMENT - 2.24%
|
|||||||||
§
|
Fidelity Investments Money Market Government Portfolio -
|
||||||||
Class I, 0.01%
|
193,435
|
193,435
|
|||||||
Total Short-Term Investment (Cost $193,435)
|
193,435
|
||||||||
Investments, at Value (Cost $8,096,069) - 99.86%
|
$
|
8,623,584
|
|||||||
Other Assets Less Liabilities - 0.14%
|
11,658
|
||||||||
Net Assets - 100.00%
|
$
|
8,635,242
|
|||||||
§
|
Represents 7 day effective yield as of November 30, 2020.
|
||||||||
Summary of Investments
|
|||||||||
by Industry
|
% of Net Assets
|
Value
|
|||||||
Exchange-Traded Products:
|
|||||||||
Debt Funds
|
97.62%
|
$
|
8,430,149
|
||||||
Short-Term Investment
|
2.24%
|
193,435
|
|||||||
Other Assets Less Liabilities
|
0.14%
|
11,658
|
|||||||
Total Net Assets
|
100.00%
|
$
|
8,635,242
|
||||||
See Notes to Financial Statements
|
Adaptive Hedged High Income Fund
|
|||||||
Statement of Assets and Liabilities
|
|||||||
(Unaudited)
|
|||||||
As of November 30, 2020
|
|||||||
Assets:
|
|||||||
Investments, at value (cost $8,096,069)
|
$
|
8,623,584
|
|||||
Receivables:
|
|||||||
Dividends
|
2
|
||||||
Fund shares purchased
|
217,641
|
||||||
Due from Advisor
|
10,212
|
||||||
Prepaid expenses:
|
|||||||
Registration and filing expenses
|
20,294
|
||||||
Fund accounting fees
|
2,409
|
||||||
Insurance expenses
|
1,970
|
||||||
Custody fees
|
497
|
||||||
Compliance fees
|
110
|
||||||
Total assets
|
8,876,719
|
||||||
Liabilities:
|
|||||||
Payables:
|
|||||||
Fund share repurchased
|
217,611
|
||||||
Accrued expenses:
|
|||||||
Professional fees
|
7,994
|
||||||
Shareholder fulfillment fees
|
6,555
|
||||||
Trustee fees and meeting expenses
|
6,012
|
||||||
Other operating expenses
|
1,512
|
||||||
Administration fees
|
474
|
||||||
Distribution and service fees - Class C Shares
|
418
|
||||||
Security pricing fees
|
399
|
||||||
Miscellaneous reporting expenses
|
272
|
||||||
Transfer agent fees
|
230
|
||||||
Total liabilities
|
241,477
|
||||||
Net Assets
|
$
|
8,635,242
|
|||||
Net Assets Consist of:
|
|||||||
Paid in capital
|
$
|
10,752,820
|
|||||
Accumulated deficit
|
(2,117,578)
|
||||||
Total Net Assets
|
$
|
8,635,242
|
|||||
Institutional Class Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
800,770
|
||||||
Net Assets
|
$
|
8,088,504
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share
|
$
|
10.10
|
|||||
Class C Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
54,649
|
||||||
Net Assets
|
$
|
546,738
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share (a)
|
$
|
10.00
|
|||||
(a)
|
Contingent deferred sales charge for Class C Shares is imposed on proceeds redeemed within one year of the purchase date (note 1).
|
||||||
See Notes to Financial Statements
|
Adaptive Hedged High Income Fund
|
|||||||
Statement of Operations
|
|||||||
(Unaudited)
|
|||||||
For the fiscal period ended November 30, 2020
|
|||||||
Investment Income:
|
|||||||
Dividends
|
$
|
168,913
|
|||||
Total Investment Income
|
168,913
|
||||||
Expenses:
|
|||||||
Advisory fees (note 2)
|
61,195
|
||||||
Registration and filing expenses
|
27,097
|
||||||
Professional fees
|
19,799
|
||||||
Fund accounting fees (note 2)
|
17,265
|
||||||
Administration fees (note 2)
|
14,567
|
||||||
Transfer agent fees (note 2)
|
13,683
|
||||||
Shareholder fulfillment fees
|
8,056
|
||||||
Custody fees (note 2)
|
3,753
|
||||||
Trustee fees and meeting expenses (note 3)
|
3,655
|
||||||
Distribution and service fees - Class C Shares (note 4)
|
2,618
|
||||||
Insurance fees
|
2,386
|
||||||
Compliance fees (note 2)
|
1,935
|
||||||
Other operating expenses
|
1,512
|
||||||
Security pricing fees
|
1,281
|
||||||
Miscellaneous reporting expenses (note 2)
|
915
|
||||||
Total Expenses
|
179,717
|
||||||
Fees waived by Advisor (note 2)
|
(61,195)
|
||||||
Expenses reimbursed by Advisor (note 2)
|
(39,411)
|
||||||
Net Expenses
|
79,111
|
||||||
Net Investment Income
|
89,802
|
||||||
Realized and Unrealized Gain on Investments:
|
|||||||
Net realized gain from investment transactions
|
223,506
|
||||||
Net change in unrealized appreciation on investments
|
426,459
|
||||||
Realized and Unrealized Gain on Investments
|
649,965
|
||||||
Net Increase in Net Assets Resulting from Operations
|
$
|
739,767
|
|||||
See Notes to Financial Statements
|
Adaptive Hedged High Income Fund
|
|||||||||||
Statements of Changes in Net Assets
|
|||||||||||
November 30,
|
May 31,
|
||||||||||
For the fiscal year or period ended
|
2020
|
(a)
|
2020
|
||||||||
Operations:
|
|||||||||||
Net investment income
|
$
|
89,802
|
$
|
730,093
|
|||||||
Net realized gain from investment transactions
|
223,506
|
18,533
|
|||||||||
Net change in unrealized appreciation on investments
|
426,459
|
124,012
|
|||||||||
Net Increase in Net Assets Resulting from Operations
|
739,767
|
872,638
|
|||||||||
Distributions to Shareholders:
|
|||||||||||
Institutional Class Shares
|
(191,077)
|
(709,393)
|
|||||||||
Class C Shares
|
(6,349)
|
(13,541)
|
|||||||||
Net Decrease in Net Assets Resulting from Distributions
|
(197,426)
|
(722,934)
|
|||||||||
Beneficial Interest Transactions:
|
|||||||||||
Shares sold
|
4,305,401
|
2,757,489
|
|||||||||
Reinvested dividends and distributions
|
110,218
|
273,521
|
|||||||||
Shares repurchased
|
(14,277,078)
|
(10,336,982)
|
|||||||||
Net Decrease from Beneficial Interest Transactions
|
(9,861,459)
|
(7,305,972)
|
|||||||||
Net Decrease in Net Assets
|
(9,319,118)
|
(7,156,268)
|
|||||||||
Net Assets:
|
|||||||||||
Beginning of Period
|
17,954,360
|
25,110,628
|
|||||||||
End of Period
|
$
|
8,635,242
|
$
|
17,954,360
|
|||||||
Share Information:
|
November 30, 2020 (a)
|
May 31, 2020
|
|||||||||
Institutional Class Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
431,840
|
$
|
4,269,984
|
282,421
|
$
|
2,757,489
|
|||||
Reinvested dividends and distributions
|
10,513
|
103,869
|
26,593
|
259,980
|
|||||||
Shares repurchased
|
(1,443,613)
|
(14,257,499)
|
(1,036,620)
|
(10,149,243)
|
|||||||
Net Decrease in Shares of
|
|||||||||||
Beneficial Interest
|
(1,001,260)
|
$
|
(9,883,646)
|
(727,606)
|
$
|
(7,131,774)
|
|||||
Class C Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
3,653
|
$
|
35,417
|
-
|
$
|
-
|
|||||
Reinvested dividends and distributions
|
648
|
6,349
|
1,398
|
13,541
|
|||||||
Shares repurchased
|
(1,982)
|
(19,579)
|
(19,128)
|
(187,739)
|
|||||||
Net Increase (Decrease) in
|
|||||||||||
Shares of Beneficial Interest
|
2,319
|
$
|
22,187
|
(17,730)
|
$
|
(174,198)
|
|||||
(a)
|
Unaudited.
|
||||||||||
See Notes to Financial Statements
|
Adaptive Hedged High Income Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Institutional Class Shares
|
|||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(e)
|
2020
|
2019
|
2018
|
2017
|
|||||||||
Net Asset Value, Beginning of Period
|
$
|
9.68
|
$
|
9.66
|
$
|
9.82
|
$
|
10.20
|
$
|
9.25
|
|||||
Income from Investment Operations
|
|||||||||||||||
Net investment income (d)
|
0.34
|
0.34
|
0.39
|
0.42
|
0.27
|
||||||||||
Net realized and unrealized gain (loss)
|
|||||||||||||||
on investments
|
0.25
|
0.02
|
(0.10)
|
(0.37)
|
0.88
|
||||||||||
Total from Investment Operations
|
0.59
|
0.36
|
0.29
|
0.05
|
1.15
|
||||||||||
Less Distributions From:
|
|||||||||||||||
Net investment income
|
(0.17)
|
(0.34)
|
(0.45)
|
(0.43)
|
(0.20)
|
||||||||||
Net realized gains
|
-
|
-
|
-
|
-
|
-
|
||||||||||
Total Distributions
|
(0.17)
|
(0.34)
|
(0.45)
|
(0.43)
|
(0.20)
|
||||||||||
Net Asset Value, End of Period
|
$
|
10.10
|
$
|
9.68
|
$
|
9.66
|
$
|
9.82
|
$
|
10.20
|
|||||
Total Return (a)
|
6.06%
|
(g)
|
3.75%
|
3.02%
|
0.52%
|
12.45%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
8,089
|
$
|
17,452
|
$
|
24,440
|
$
|
33,016
|
$
|
4,789
|
|||||
Ratios of:
|
|||||||||||||||
Gross Expenses to Average Net Assets (b)
|
2.91%
|
(f)
|
2.07%
|
1.65%
|
2.88%
|
4.06%
|
|||||||||
Net Expenses to Average Net Assets (b)
|
1.25%
|
(f)
|
1.25%
|
1.25%
|
1.25%
|
1.40%
|
|||||||||
Net Investment Income to Average Net Assets (b)(c)
|
3.34%
|
(f)
|
3.43%
|
3.99%
|
4.18%
|
2.77%
|
|||||||||
Portfolio turnover rate
|
76.17%
|
(g)
|
136.88%
|
81.99%
|
13.23%
|
184.78%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(d)
|
Calculated using the average shares method.
|
||||||||||||||
(e)
|
Unaudited.
|
||||||||||||||
(f)
|
Annualized.
|
||||||||||||||
(g)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Hedged High Income Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Class C Shares
|
|||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(e)
|
2020
|
2019
|
2018
|
2017
|
(f)
|
||||||||
Net Asset Value, Beginning of Period
|
$
|
9.60
|
$
|
9.57
|
$
|
9.71
|
$
|
10.09
|
$
|
9.22
|
|||||
Income (Loss) from Investment Operations
|
|||||||||||||||
Net investment income (d)
|
0.22
|
0.24
|
0.29
|
0.35
|
0.19
|
||||||||||
Net realized and unrealized gain (loss)
|
|||||||||||||||
on investments
|
0.30
|
0.02
|
(0.10)
|
(0.40)
|
0.86
|
||||||||||
Total from Investment Operations
|
0.52
|
0.26
|
0.19
|
(0.05)
|
1.05
|
||||||||||
Less Distributions From:
|
|||||||||||||||
Net investment income
|
(0.12)
|
(0.23)
|
(0.33)
|
(0.33)
|
(0.18)
|
||||||||||
Net realized gains
|
-
|
-
|
-
|
-
|
-
|
||||||||||
Total Distributions
|
(0.12)
|
(0.23)
|
(0.33)
|
(0.33)
|
(0.18)
|
||||||||||
Net Asset Value, End of Period
|
$
|
10.00
|
$
|
9.60
|
$
|
9.57
|
$
|
9.71
|
$
|
10.09
|
|||||
Total Return (a)
|
5.44%
|
(h)
|
2.71%
|
1.99%
|
(0.50)%
|
11.38%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
547
|
$
|
502
|
$
|
670
|
$
|
1,263
|
$
|
1,515
|
|||||
Ratios of:
|
|||||||||||||||
Gross Expenses to Average Net Assets (b)
|
3.81%
|
(g)
|
3.07%
|
2.65%
|
4.54%
|
5.48%
|
|||||||||
Net Expenses to Average Net Assets (b)
|
2.25%
|
(g)
|
2.25%
|
2.25%
|
2.25%
|
2.37%
|
|||||||||
Net Investment Income to Average Net Assets (b)(c)
|
2.09%
|
(g)
|
2.44%
|
3.01%
|
3.52%
|
1.93%
|
|||||||||
Portfolio turnover rate
|
76.17%
|
(h)
|
136.88%
|
81.99%
|
13.23%
|
184.78%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values may
differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(d)
|
Calculated using the average shares method.
|
||||||||||||||
(e)
|
Unaudited.
|
||||||||||||||
(f)
|
As of February 24, 2017, the "Advisor Class" Shares were renamed to the "Class C" Shares. There were no other changes to this class of shares.
|
||||||||||||||
(g)
|
Annualized.
|
||||||||||||||
(h)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Hedged Income Fund
|
||||||||
Schedule of Investments
|
||||||||
(Unaudited)
|
||||||||
As of November 30, 2020
|
||||||||
Shares
|
Value
(Note 1)
|
|||||||
EXCHANGE-TRADED PRODUCTS - 41.72%
|
||||||||
Commodity Fund - 2.49%
|
||||||||
Credit Suisse X-Links Gold Shares Covered Call ETN
|
125,000
|
$
|
1,148,750
|
|||||
Debt Fund - 32.08%
|
||||||||
iShares 3-7 Year Treasury Bond ETF
|
25,000
|
3,325,250
|
||||||
iShares Broad USD High Yield Corporate Bond ETF
|
110,000
|
4,478,100
|
||||||
iShares MBS ETF
|
45,409
|
5,001,801
|
||||||
SPDR Bloomberg Barclays High Yield Bond ETF
|
18,500
|
1,989,305
|
||||||
14,794,456
|
||||||||
Equity Fund - 7.15%
|
||||||||
Global SuperDividend US ETF
|
45,300
|
749,715
|
||||||
Global X Nasdaq 100 Covered Call ETF
|
112,918
|
2,545,172
|
||||||
3,294,887
|
||||||||
Total Exchange-Traded Products (Cost $19,271,149)
|
19,238,093
|
|||||||
PREFERRED STOCK - 1.08%
|
Shares
|
Interest
|
Maturity
|
|||||
Real Estate - 1.08%
|
Rate | Date |
||||||
Preferred Apartment Communities, Inc.
|
500
|
5.750%
|
11/20/2029
|
500,000
|
||||
Total Preferred Stock (Cost $500,000)
|
500,000
|
|||||||
Interest
|
Maturity
|
|||||||
ASSET BACKED SECURITIES - 5.22%
|
Principal
|
Rate | Date |
|||||
Commercial MBS - 2.17%
|
||||||||
JP Morgan Chase Commercial Mortgage
|
||||||||
Securities Trust 2010-C2
|
$ 1,000,000
|
5.075%
|
11/15/2043
|
998,600
|
||||
Home Equity ABS - 0.63%
|
||||||||
Accredited Mortgage Loan Trust 2002-2
|
322,915
|
1.150%
|
1/25/2033
|
290,396
|
||||
WL Collateral CMO - 2.42%
|
||||||||
Merrill Lynch Mortgage Investors Trust
|
||||||||
Series MLCC 2004-F (a)
|
958,938
|
1.941%
|
12/25/2029
|
851,554
|
||||
MortgageIT Mortgage Loan Trust 2006-1
|
||||||||
(1M LIBOR + 0.23%)(b)
|
281,010
|
0.610%
|
4/25/2036
|
266,801
|
||||
1,118,355
|
||||||||
Total Asset-Backed Securities (Cost $2,547,375)
|
2,407,351
|
|||||||
Interest
|
Maturity
|
|||||||
COLLATERALIZED MORTGAGE OBLIGATIONS - 32.83%
|
Principal
|
Rate |
Date |
|||||
Home Equity ABS - 4.67%
|
||||||||
ABFC 2005-WF1 Trust (1M LIBOR + 2.55%)(b)
|
$ 1,352,029
|
2.700%
|
2/25/2034
|
1,428,638
|
||||
ACE Securities Corp Home Equity Loan Trust
|
||||||||
Series 2004-RM1 (1M LIBOR + 5.25%)(b)
|
342,628
|
5.400%
|
7/25/2034
|
344,847
|
||||
Contimortgage Home Equity Loan Trust 1996-3
|
||||||||
(1M LIBOR + 0.64%)(b)
|
196,627
|
0.781%
|
9/15/2027
|
171,317
|
||||
Morgan Stanley ABS Capital I Inc Trust 2007-NC1
|
||||||||
(1M LIBOR +0.13%)(b)
|
61,329
|
0.280%
|
11/25/2036
|
31,158
|
||||
RASC Series 2006-EMX9 Trust (1M LIBOR + 0.13%)(b)
|
204,662
|
0.410%
|
11/25/2036
|
178,871
|
||||
2,154,831
|
||||||||
(Continued)
|
Adaptive Hedged Income Fund
|
||||||||
Schedule of Investments - Continued
|
||||||||
(Unaudited)
|
||||||||
As of November 30, 2020
|
||||||||
Value
(Note 1)
|
||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS -
|
Interest
|
Maturity
|
||||||
Continued
|
Principal
|
Rate |
Date |
|||||
Other ABS - 4.95%
|
||||||||
Chase Funding Trust Series 2003-3
|
||||||||
(1M LIBOR + 1.845%)(b)
|
$ 350,304
|
1.995%
|
11/25/2032
|
$
|
351,279
|
|||
Countrywide Asset-Backed Certificates
|
||||||||
(1M LIBOR + 2.625%)(b)
|
452,008
|
2.775%
|
10/25/2033
|
476,527
|
||||
Countrywide Asset-Backed Certificates
|
||||||||
(1M LIBOR + 1.875%)(b)
|
442,790
|
2.025%
|
10/25/2034
|
410,725
|
||||
FFMLT Trust 2004-FF3 (1M LIBOR + 2.40%)(b)
|
192,057
|
2.550%
|
11/25/2034
|
187,294
|
||||
First Franklin Mortgage Loan Trust 2003-FF3
|
||||||||
(1M LIBOR + 1.125%)(b)
|
194,148
|
1.275%
|
7/25/2033
|
152,022
|
||||
Merrill Lynch Mortgage Investors Trust Series
|
||||||||
2004-WMC2 (1M LIBOR + 2.025%)(b)
|
692,218
|
2.175%
|
12/25/2034
|
705,402
|
||||
2,283,249
|
||||||||
WL Collateral CMO - 23.21%
|
||||||||
Adjustable Rate Mortgage Trust 2005-9 (a)
|
322,067
|
3.147%
|
11/25/2035
|
303,297
|
||||
Adjustable Rate Mortgage Trust 2005-11 (a)
|
404,495
|
3.178%
|
2/25/2036
|
310,555
|
||||
Alternative Loan Trust 2004-15 (a)
|
579,162
|
2.737%
|
9/25/2034
|
546,836
|
||||
Alternative Loan Trust 2005-10CB
|
536,774
|
5.000%
|
12/25/2020
|
536,774
|
||||
Alternative Loan Trust 2005-27 (a)
|
82,235
|
1.713%
|
8/25/2035
|
63,971
|
||||
Alternative Loan Trust 2005-J11
|
171,822
|
5.000%
|
12/25/2020
|
171,822
|
||||
Alternative Loan Trust 2006-28CB
|
688,606
|
6.500%
|
10/25/2036
|
268,769
|
||||
Alternative Loan Trust 2006-28CB
|
135,704
|
6.500%
|
10/25/2036
|
53,250
|
||||
Alternative Loan Trust 2007-9T1
|
302,370
|
6.000%
|
5/25/2037
|
182,957
|
||||
American Home Mortgage Investment
|
||||||||
Trust 2004-1 (c)
|
238,696
|
2.254%
|
4/25/2044
|
228,374
|
||||
American Home Mortgage Investment Trust
|
||||||||
2005-2 (1M LIBOR + 0.70%)(b)
|
178,380
|
0.850%
|
9/25/2045
|
142,958
|
||||
Banc of America Funding 2004-B Trust (a)
|
58,290
|
2.239%
|
12/20/2034
|
44,996
|
||||
Banc of America Mortgage 2005-C Trust (a)
|
259,456
|
3.805%
|
4/25/2035
|
246,846
|
||||
Banc of America Mortgage 2005-G Trust (a)
|
840,810
|
3.043%
|
8/25/2035
|
780,375
|
||||
Banc of America Funding 2006-B Trust (a)
|
23,154
|
3.996%
|
3/20/2036
|
23,153
|
||||
Bear Stearns ALT-A Trust 2005-7 (a)
|
348,419
|
3.352%
|
9/25/2035
|
286,530
|
||||
Bear Stearns ARM Trust 2004-8 (a)
|
122,667
|
2.158%
|
11/25/2034
|
122,669
|
||||
Chase Mortgage Finance Trust Series 2007-S5
|
179,259
|
6.000%
|
7/25/2037
|
121,779
|
||||
Chevy Chase Funding LLC Mortgage-Backed Certificates Series 2005-2
|
215,812
|
0.380%
|
5/25/2036
|
190,584
|
||||
CHL Mortgage Pass-Through Trust 2004-20 (a)
|
223,329
|
2.750%
|
9/25/2034
|
163,859
|
||||
CHL Mortgage Pass-Through Trust 2005-HYB8 (a)
|
333,963
|
3.271%
|
12/20/2035
|
329,140
|
||||
CHL Mortgage Pass-Through Trust 2006-3
|
||||||||
(1M LIBOR + 0.48%)(b)
|
46,784
|
0.630%
|
3/25/2036
|
42,192
|
||||
CHL Mortgage Pass-Through Trust 2006-J2
|
57,099
|
6.000%
|
4/25/2036
|
46,424
|
||||
Citigroup Global Markets Mortgage Securities VII, Inc.
|
101,990
|
7.000%
|
6/25/2026
|
60,550
|
||||
Citigroup Mortgage Loan Trust 2006-AR5 (a)
|
135,857
|
3.072%
|
7/25/2036
|
116,979
|
||||
(Continued)
|
Adaptive Hedged Income Fund
|
||||||||
Schedule of Investments - Continued
|
||||||||
(Unaudited)
|
||||||||
As of November 30, 2020
|
||||||||
Value
(Note 1)
|
||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS -
|
Interest
|
Maturity
|
||||||
Continued
|
Principal
|
Rate |
Date |
|||||
WL Collateral CMO - Continued
|
||||||||
Credit Suisse First Boston Mortgage Securities Corp.
|
$ 70,832
|
6.000%
|
9/25/2033
|
$
|
77,406
|
|||
Credit Suisse First Boston Mortgage Securities Corp.
|
477,829
|
5.250%
|
1/25/2036
|
464,602
|
||||
Deutsche Alt-A Securities Inc Mortgage Loan
|
||||||||
Trust Series 2006-AR1 (a)
|
275,482
|
3.413%
|
2/25/2036
|
234,620
|
||||
First Horizon Alternative Mortgage Securities Trust
|
||||||||
2007-FA2
|
159,639
|
5.750%
|
4/25/2022
|
116,823
|
||||
GSR Mortgage Loan Trust 2004-15F
|
21,130
|
4.750%
|
12/25/2020
|
21,107
|
||||
GSR Mortgage Loan Trust 2004-8F
|
41,523
|
6.061%
|
9/25/2034
|
34,480
|
||||
HarborView Mortgage Loan Trust 2006-2
|
16,289
|
3.148%
|
2/25/2036
|
8,398
|
||||
IndyMac INDA Mortgage Loan Trust 2006-AR2
|
34,066
|
3.194%
|
9/25/2036
|
33,124
|
||||
IndyMac INDX Mortgage Loan Trust 2005-AR23
|
980,969
|
2.629%
|
11/25/2035
|
844,282
|
||||
JP Morgan Mortgage Trust 2004-A1
|
5,282
|
3.024%
|
2/25/2034
|
5,053
|
||||
JP Morgan Mortgage Trust 2005-A6
|
155,990
|
4.637%
|
8/25/2035
|
149,781
|
||||
JP Morgan Mortgage Trust 2006-A6
|
301,123
|
2.740%
|
10/25/2036
|
247,976
|
||||
Lehman Mortgage Trust 2007-9
|
20,749
|
6.000%
|
10/25/2037
|
22,006
|
||||
MASTR Adjustable Rate Mortgages Trust 2003-3
|
47,875
|
3.008%
|
9/25/2033
|
46,344
|
||||
MASTR Adjustable Rate Mortgages Trust 2004-10
|
8,567
|
3.118%
|
10/25/2034
|
8,558
|
||||
MASTR Asset Securitization Trust 2004-9
|
132,733
|
5.250%
|
7/25/2034
|
141,296
|
||||
Merrill Lynch Mortgage Investors Trust MLMI Series
|
||||||||
2003-A4
|
12,509
|
3.868%
|
5/25/2033
|
12,189
|
||||
Merrill Lynch Mortgage Investors Trust Series
|
||||||||
MLCC 2004-B
|
100,295
|
2.550%
|
5/25/2029
|
76,284
|
||||
Merrill Lynch Mortgage Investors Trust Series
|
||||||||
MLMI 2004-A1
|
26,840
|
3.250%
|
2/25/2034
|
28,422
|
||||
Morgan Stanley Mortgage Loan Trust 2006-6AR
|
||||||||
(1M LIBOR + 2.475%)(b)
|
515,382
|
3.391%
|
5/25/2036
|
467,312
|
||||
MortgageIT Trust 2005-2 (1M LIBOR + 1.65%)(c)
|
184,375
|
4.750%
|
5/25/2035
|
184,375
|
||||
MortgageIT Trust 2005-3 (1M LIBOR + 1.575%)(b)
|
138,199
|
1.725%
|
8/25/2035
|
129,703
|
||||
MortgageIT Trust 2005-3 (1M LIBOR + 2.55%)(b)
|
158,619
|
2.700%
|
8/25/2035
|
166,152
|
||||
Opteum Mortgage Acceptance Corp. Asset-Backed
|
||||||||
Pass-Through Certificates 2005-2
|
||||||||
(1M LIBOR + 1.95%)(b)
|
845,790
|
2.100%
|
4/25/2035
|
745,499
|
||||
PHH Mortgage Trust Series 2008-CIM2
|
||||||||
(1M LIBOR + 2.25%)(c)
|
153,876
|
2.399%
|
7/25/2038
|
153,876
|
||||
RALI Series 2005-QS17 Trust
|
78,945
|
6.000%
|
12/25/2035
|
72,152
|
||||
RBSGC Mortgage Loan Trust 2007-B (a)
|
5,068
|
4.495%
|
11/25/2021
|
4,179
|
||||
Structured Asset Mortgage Investments II Trust
|
||||||||
2006-AR5
|
129,481
|
0.570%
|
5/25/2036
|
111,071
|
||||
WaMu Mortgage Backed Pass Through
|
||||||||
Certificates Series 2001-AR5 (a)
|
167,804
|
3.185%
|
12/19/2039
|
167,149
|
||||
(Continued)
|
Adaptive Hedged Income Fund
|
||||||||
Schedule of Investments - Continued
|
||||||||
(Unaudited)
|
||||||||
As of November 30, 2020
|
||||||||
Value
(Note 1)
|
||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS -
|
Interest
|
Maturity
|
||||||
Continued
|
Principal
|
Rate | Date | |||||
WL Collateral CMO - Continued
|
||||||||
WaMu Mortgage Pass-Through
|
||||||||
Certificates Series 2002-AR14 Trust (a)
|
$ 153,122
|
2.540%
|
11/25/2032
|
$
|
153,122
|
|||
WaMu Mortgage Pass-Through Certificates Series
|
||||||||
2002-AR6 Trust (FCN 12M A1 YYM + 1.40%)(b)
|
385,222
|
3.158%
|
8/25/2046
|
362,652
|
||||
WaMu Mortgage Pass-Through Certificates Series
|
||||||||
Series 2006-AR10 Trust (a)
|
27,697
|
3.158%
|
8/25/2046
|
24,617
|
||||
10,700,249
|
||||||||
Total Collateralized Mortgage Obligations (Cost $15,689,600)
|
15,138,329
|
|||||||
SHORT-TERM INVESTMENT - 19.93%
|
||||||||
Fidelity Investments Money Market Government Portfolio -
|
Shares
|
|||||||
Institutional Class, 0.01% §
|
9,188,609
|
9,188,609
|
||||||
Total Short-Term Investment (Cost $9,188,609)
|
9,188,609
|
|||||||
Investments, at Value (Cost $47,196,733) - 100.78%
|
$
|
46,472,382
|
||||||
Liabilities in Excess of Other Assets - (0.78)%
|
(359,488)
|
|||||||
Net Assets - 100.00%
|
$
|
46,112,894
|
||||||
§
|
Represents 7 day effective yield as of November 30, 2020.
|
|||||||
(a)
|
Variable interest rate - The interest rate of which adjusts periodically based on changes in current interest rates. Rate represented is as of November 30, 2020.
|
|||||||
(b)
|
Floating interest rate
|
|||||||
(c)
|
Fixed to floating interest rate
|
*
|
Non income-producing investment
|
|||||
(d)
|
Weighted average
|
|||||||
(e)
|
Fixed to weighted average
|
|||||||
Summary of Investments
|
||||||||
by Industry
|
% of Net Assets
|
Value
|
||||||
Exchange-Traded Products:
|
||||||||
Commodity Fund
|
2.49%
|
$ 1,148,750
|
||||||
Debt Fund
|
32.08%
|
14,794,456
|
||||||
Equity Fund
|
7.15%
|
3,294,887
|
||||||
Preferred Stock:
|
||||||||
Real Estate
|
1.08%
|
500,000
|
||||||
Asset-Backed Securities:
|
||||||||
Commercial MBS
|
2.17%
|
998,600
|
||||||
Home Equity ABS
|
0.63%
|
290,396
|
||||||
WL Collateral CMO
|
2.43%
|
1,118,355
|
||||||
Collateralized Mortgage Obligations:
|
||||||||
Home Equity ABS
|
4.67%
|
2,154,831
|
||||||
Other ABS
|
4.95%
|
2,283,249
|
||||||
WL Collateral CMO
|
23.20%
|
10,700,249
|
||||||
Short-Term Investment
|
19.93%
|
9,188,609
|
||||||
Liabilities in Excess of Other Assets
|
-0.78%
|
(359,488)
|
||||||
Total Net Assets
|
100.00%
|
$ 46,112,894
|
||||||
See Notes to Financial Statements
|
Adaptive Hedged Income Fund
|
|||||||
Statement of Assets and Liabilities
|
|||||||
(Unaudited)
|
|||||||
As of November 30, 2020
|
|||||||
Assets:
|
|||||||
Investments, at value (cost $47,196,733)
|
$
|
46,472,382
|
|||||
Receivables:
|
|||||||
Investments sold
|
42,268
|
||||||
Fund shares sold
|
509,285
|
||||||
Dividends
|
25,216
|
||||||
Interest
|
43,589
|
||||||
Prepaid expenses:
|
|||||||
Registration and filing expenses
|
36,562
|
||||||
Fund accounting fees
|
2,665
|
||||||
Insurance fees
|
2,139
|
||||||
Shareholder fulfillment fees
|
515
|
||||||
Total assets
|
47,134,621
|
||||||
Liabilities:
|
|||||||
Due to custodian
|
172,220
|
||||||
Payables:
|
|||||||
Fund shares repurchased
|
824,237
|
||||||
Accrued expenses:
|
|||||||
Advisory fees
|
11,256
|
||||||
Trustee fees and meeting expenses
|
5,587
|
||||||
Distribution and service fees - Class C Shares
|
3,271
|
||||||
Custody fees
|
2,304
|
||||||
Security pricing fees
|
1,653
|
||||||
Professional fees
|
600
|
||||||
Compliance fees
|
276
|
||||||
Miscellaneous reporting expenses
|
170
|
||||||
Transfer agent fees
|
86
|
||||||
Administration fees
|
67
|
||||||
Total liabilities
|
1,021,727
|
||||||
Total Net Assets
|
$
|
46,112,894
|
|||||
Net Assets Consist of:
|
|||||||
Paid in capital
|
$
|
48,250,313
|
|||||
Accumulated deficit
|
(2,137,419)
|
||||||
Total Net Assets
|
$
|
46,112,894
|
|||||
Institutional Class Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
4,233,982
|
||||||
Net Assets
|
$
|
41,782,062
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share
|
$
|
9.87
|
|||||
Class C Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
455,673
|
||||||
Net Assets
|
$
|
4,330,832
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share (a)
|
$
|
9.50
|
|||||
(a)
|
Contingent deferred sales charge for Class C Shares is imposed on proceeds redeemed within one year of the purchase date (note 1).
|
||||||
See Notes to Financial Statements
|
Adaptive Hedged Income Fund
|
|||||||
Statement of Operations
|
|||||||
(Unaudited)
|
|||||||
For the fiscal period ended November 30, 2020
|
|||||||
Investment Income:
|
|||||||
Dividends
|
$
|
63,434
|
|||||
Interest
|
799,822
|
||||||
Total Investment Income
|
863,256
|
||||||
Expenses:
|
|||||||
Advisory fees (note 2)
|
235,668
|
||||||
Registration and filing expenses
|
37,489
|
||||||
Administration fees (note 2)
|
26,129
|
||||||
Professional fees
|
24,285
|
||||||
Distribution and service fees - Class C Shares (note 4)
|
21,187
|
||||||
Fund accounting fees (note 2)
|
19,010
|
||||||
Transfer agent fees (note 2)
|
14,006
|
||||||
Security pricing fees
|
12,030
|
||||||
Custody fees (note 2)
|
10,386
|
||||||
Shareholder fulfillment fees
|
10,108
|
||||||
Compliance fees (note 2)
|
4,000
|
||||||
Trustee fees and meeting expenses (note 3)
|
3,644
|
||||||
Insurance fees
|
2,145
|
||||||
Miscellaneous reporting expenses (note 2)
|
915
|
||||||
Total Expenses
|
421,002
|
||||||
Fees waived by Advisor (note 2)
|
(105,230)
|
||||||
Net Expenses
|
315,772
|
||||||
Net Investment Income
|
547,484
|
||||||
Realized and Unrealized Gain (Loss) on Investments:
|
|||||||
Net realized loss from investment transactions
|
(1,313,265)
|
||||||
Net change in unrealized appreciation on investments
|
1,808,681
|
||||||
Net Realized and Unrealized Gain on Investments
|
495,416
|
||||||
Net Increase in Net Assets Resulting from Operations
|
$
|
1,042,900
|
|||||
See Notes to Financial Statements
|
Adaptive Hedged Income Fund
|
|||||||||||
Statements of Changes in Net Assets
|
|||||||||||
November 30,
|
May 31,
|
||||||||||
For the fiscal year or period ended
|
2020 (a)
|
2020
|
|||||||||
Operations:
|
|||||||||||
Net investment income
|
$
|
547,484
|
$
|
1,288,811
|
|||||||
Net realized gain (loss) from investment transactions
|
(1,313,265)
|
98,087
|
|||||||||
Net change in unrealized appreciation (depreciation) on investments
|
1,808,681
|
(2,690,319)
|
|||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations
|
1,042,900
|
(1,303,421)
|
|||||||||
Distributions to Shareholders:
|
|||||||||||
Institutional Class Shares
|
(510,863)
|
(1,295,673)
|
|||||||||
Class C Shares
|
(28,334)
|
(99,082)
|
|||||||||
Net Decrease in Net Assets Resulting from Distributions
|
(539,197)
|
(1,394,755)
|
|||||||||
Beneficial Interest Transactions:
|
|||||||||||
Shares sold
|
9,239,655
|
44,009,006
|
|||||||||
Reinvested dividends and distributions
|
374,336
|
1,001,462
|
|||||||||
Shares repurchased
|
(10,505,628)
|
(14,580,727)
|
|||||||||
Increase (Decrease) from Beneficial Interest Transactions
|
(891,637)
|
30,429,741
|
|||||||||
Net Increase (Decrease) in Net Assets
|
(387,934)
|
27,731,565
|
|||||||||
Net Assets:
|
|||||||||||
Beginning of Period
|
46,500,828
|
18,769,263
|
|||||||||
End of Period
|
$
|
46,112,894
|
$
|
46,500,828
|
|||||||
Share Information:
|
November 30, 2020 (a)
|
May 31, 2020
|
|||||||||
Institutional Class Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
901,906
|
$
|
8,909,029
|
4,240,660
|
$
|
43,282,368
|
|||||
Reinvested dividends and distributions
|
35,135
|
346,641
|
89,737
|
903,862
|
|||||||
Shares repurchased
|
(1,028,548)
|
(10,298,634)
|
(1,440,502)
|
(14,115,308)
|
|||||||
Net Increase (Decrease) in Shares of
|
|||||||||||
Beneficial Interest
|
(91,507)
|
$
|
(1,042,964)
|
2,889,895
|
$
|
30,070,922
|
|||||
Class C Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
34,763
|
$
|
330,626
|
73,427
|
$
|
726,638
|
|||||
Reinvested dividends and distributions
|
2,915
|
27,695
|
10,037
|
97,600
|
|||||||
Shares repurchased
|
(21,840)
|
(206,994)
|
(47,637)
|
(465,419)
|
|||||||
Net Increase in Shares of
|
|||||||||||
Beneficial Interest
|
15,838
|
$
|
151,327
|
35,827
|
$
|
358,819
|
|||||
(a)
|
Unaudited
|
||||||||||
See Notes to Financial Statements
|
Adaptive Hedged Income Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Institutional Class Shares
|
|||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(e)
|
2020
|
2019
|
2018
|
2017
|
|||||||||
Net Asset Value, Beginning of Period
|
$
|
9.79
|
$
|
10.29
|
$
|
10.12
|
$
|
10.42
|
$
|
9.98
|
|||||
Income (Loss) from Investment Operations
|
|||||||||||||||
Net investment income (c)
|
0.23
|
0.31
|
0.43
|
0.38
|
0.38
|
||||||||||
Net realized and unrealized gain (loss) on
|
|||||||||||||||
investments
|
(0.03)
|
(0.47)
|
0.17
|
(0.18)
|
0.46
|
||||||||||
Total from Investment Operations
|
0.20
|
(0.16)
|
0.60
|
0.20
|
0.84
|
||||||||||
Less Distributions:
|
|||||||||||||||
From net investment income
|
(0.12)
|
(0.34)
|
(0.43)
|
(0.33)
|
(0.40)
|
||||||||||
From return of capital
|
-
|
-
|
-
|
(0.17)
|
-
|
||||||||||
Total Distributions
|
(0.12)
|
(0.34)
|
(0.43)
|
(0.50)
|
(0.40)
|
||||||||||
Net Asset Value, End of Period
|
$
|
9.87
|
$
|
9.79
|
$
|
10.29
|
$
|
10.12
|
$
|
10.42
|
|||||
Total Return (a)
|
2.03%
|
(g)
|
(1.62)%
|
6.07%
|
1.93%
|
8.54%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
41,782
|
$
|
42,354
|
$
|
14,767
|
$
|
4,822
|
$
|
4,498
|
|||||
Ratios of:
|
|||||||||||||||
Gross Expenses to Average Net Assets (b)
|
1.70%
|
(f)
|
1.83%
|
2.88%
|
4.03%
|
3.90%
|
|||||||||
Net Expenses to Average Net Assets (b)
|
1.25%
|
(f)
|
1.25%
|
1.25%
|
1.25%
|
1.29%
|
|||||||||
Net Investment Income to Average
|
|||||||||||||||
Net Assets (b)(d)
|
2.40%
|
(f)
|
3.04%
|
4.19%
|
3.75%
|
3.68%
|
|||||||||
Portfolio turnover rate
|
50.57%
|
(g)
|
9.52%
|
27.78%
|
99.44%
|
110.84%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Calculated using the average shares method.
|
||||||||||||||
(d)
|
Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(e)
|
Unaudited.
|
||||||||||||||
(f)
|
Annualized.
|
||||||||||||||
(g)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Hedged Income Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Class C Shares
|
|||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(f)
|
2020
|
2019
|
2018
|
2017
|
(e)
|
||||||||
Net Asset Value, Beginning of Period
|
$
|
9.43
|
$
|
9.91
|
$
|
9.75
|
$
|
10.07
|
$
|
9.67
|
|||||
Income (Loss) from Investment Operations
|
|||||||||||||||
Net investment income (c)
|
0.12
|
0.20
|
0.31
|
0.25
|
0.29
|
||||||||||
Net realized and unrealized gain (loss) on
|
|||||||||||||||
investments
|
0.01
|
(0.45)
|
0.17
|
(0.16)
|
0.42
|
||||||||||
Total from Investment Operations
|
0.13
|
(0.25)
|
0.48
|
0.09
|
0.71
|
||||||||||
Less Distributions:
|
|||||||||||||||
From net investment income
|
(0.06)
|
(0.23)
|
(0.32)
|
(0.24)
|
(0.31)
|
||||||||||
From return of capital
|
-
|
-
|
-
|
(0.17)
|
-
|
||||||||||
Total Distributions
|
(0.06)
|
(0.23)
|
(0.32)
|
(0.41)
|
(0.31)
|
||||||||||
Net Asset Value, End of Period
|
$
|
9.50
|
$
|
9.43
|
$
|
9.91
|
$
|
9.75
|
$
|
10.07
|
|||||
Total Return (a)
|
1.42%
|
(h)
|
(2.58)%
|
4.97%
|
0.94%
|
7.46%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
4,331
|
$
|
4,147
|
$
|
4,002
|
$
|
2,749
|
$
|
2,204
|
|||||
Ratios of:
|
|||||||||||||||
Gross Expenses to Average Net Assets (b)
|
2.70%
|
(g)
|
2.84%
|
3.84%
|
5.07%
|
5.27%
|
|||||||||
Net Expenses to Average Net Assets (b)
|
2.25%
|
(g)
|
2.25%
|
2.25%
|
2.25%
|
2.28%
|
|||||||||
Net Investment Income to Average
|
|||||||||||||||
Net Assets (b)(d)
|
1.39%
|
(g)
|
2.10%
|
3.17%
|
2.54%
|
2.96%
|
|||||||||
Portfolio turnover rate
|
50.57%
|
(h)
|
9.52%
|
27.78%
|
99.44%
|
110.84%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values may
differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Calculated using the average shares method.
|
||||||||||||||
(d)
|
Recognition of net investment incomeby the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(e)
|
As of February 24, 2017, the "Advisor Class" Shares were renamed to the "Class C" Shares. There were no other changes to this class of shares.
|
||||||||||||||
(f)
|
Unaudited.
|
||||||||||||||
(g)
|
Annualized.
|
||||||||||||||
(h)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Tactical Economic Fund
|
|||||||||
Schedule of Investments
|
|||||||||
(Unaudited)
|
|||||||||
As of November 30, 2020
|
|||||||||
Shares
|
Value (Note 1)
|
||||||||
EXCHANGE-TRADED PRODUCTS - 99.44%
|
|||||||||
Large-Cap - 66.36%
|
|||||||||
Invesco QQQ Trust
|
8,332
|
$
|
2,496,434
|
||||||
iShares Core S&P 500 ETF
|
7,730
|
2,808,464
|
|||||||
iShares Edge MSCI Minimum Volatility ETF
|
30,186
|
2,011,897
|
|||||||
7,316,795
|
|||||||||
Mid-Cap - 21.80%
|
|||||||||
iShares Core S&P Mid-Cap ETF
|
11,099
|
2,403,155
|
|||||||
Small-Cap - 11.28%
|
|||||||||
iShares Russell 2000 ETF
|
6,874
|
1,244,331
|
|||||||
Total Exchange-Traded Products (Cost $9,839,869)
|
10,964,281
|
||||||||
SHORT-TERM INVESTMENT - 1.09%
|
|||||||||
§
|
Fidelity Investments Money Market Government Portfolio -
|
||||||||
Class I, 0.01%
|
120,082
|
120,082
|
|||||||
Total Short-Term Investment (Cost $120,082)
|
120,082
|
||||||||
Investments, at Value (Cost $9,959,951) - 100.53%
|
$
|
11,084,363
|
|||||||
Liabilities in Excess of Other Assets - (0.53)%
|
(57,944)
|
||||||||
Net Assets - 100.00%
|
$
|
11,026,419
|
|||||||
§
|
Represents 7 day effective yield as of November 30, 2020.
|
||||||||
Summary of Investments
|
|||||||||
by Industry
|
% of Net Assets
|
Value
|
|||||||
Exchange-Traded Products:
|
|||||||||
Large-Cap
|
66.36%
|
$
|
7,316,795
|
||||||
Mid-Cap
|
21.80%
|
2,403,155
|
|||||||
Small-Cap
|
11.28%
|
1,244,331
|
|||||||
Short-Term Investment
|
1.09%
|
120,082
|
|||||||
Liabilities in Excess of Other Assets
|
-0.53%
|
(57,944)
|
|||||||
Total Net Assets
|
100.00%
|
$
|
11,026,419
|
||||||
See Notes to Financial Statements
|
Adaptive Tactical Economic Fund
|
|||||||
Statement of Assets and Liabilities
|
|||||||
(Unaudited)
|
|||||||
As of November 30, 2020
|
|||||||
Assets:
|
|||||||
Investments, at value (cost $9,959,951)
|
$
|
11,084,363
|
|||||
Receivables:
|
|||||||
Dividends
|
2
|
||||||
Fund shares sold
|
221,845
|
||||||
Due from Advisor
|
8,963
|
||||||
Prepaid expenses:
|
|||||||
Registration and filing expenses
|
20,747
|
||||||
Fund accounting fees
|
3,076
|
||||||
Insurance expenses
|
1,685
|
||||||
Compliance fees
|
2
|
||||||
Total assets
|
11,340,683
|
||||||
Liabilities:
|
|||||||
Payables:
|
|||||||
Fund shares purchased
|
287,028
|
||||||
Accrued expenses:
|
|||||||
Professional fees
|
11,220
|
||||||
Trustee fees and meeting expenses
|
7,295
|
||||||
Shareholder fulfillment fees
|
5,155
|
||||||
Custody fees
|
1,574
|
||||||
Distribution and service fees - Class C and Class A Shares
|
638
|
||||||
Transfer agent fees
|
549
|
||||||
Administration fees
|
489
|
||||||
Miscellaneous reporting expenses
|
272
|
||||||
Security pricing fees
|
44
|
||||||
Total liabilities
|
314,264
|
||||||
Total Net Assets
|
$
|
11,026,419
|
|||||
Net Assets Consist of:
|
|||||||
Paid in capital
|
$
|
10,978,132
|
|||||
Distributable earnings
|
48,287
|
||||||
Total Net Assets
|
$
|
11,026,419
|
|||||
Institutional Class Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
806,819
|
||||||
Net Assets
|
$
|
10,198,886
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share
|
$
|
12.64
|
|||||
Class C Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
67,757
|
||||||
Net Assets
|
$
|
798,655
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share (a)
|
$
|
11.79
|
|||||
Class A Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
3,358
|
||||||
Net Assets
|
$
|
28,878
|
|||||
Net Asset Value and Redemption Price Per Share
|
$
|
8.60
|
|||||
Maximum Offering Price Per Share ($8.60 ÷ 95.50%)(b)
|
9.00
|
||||||
(a)
|
Contingent deferred sales charge for Class C Shares is imposed on shares redeemed within one year of the purchase date (note 1).
|
||||||
(b)
|
The Fund charges a 4.50% maximum sales load on all initial purchases.
|
||||||
See Notes to Financial Statements
|
Adaptive Tactical Economic Fund
|
|||||||
Statement of Operations
|
|||||||
(Unaudited)
|
|||||||
For the fiscal period ended November 30, 2020
|
|||||||
Investment Income:
|
|||||||
Dividends
|
$
|
92,301
|
|||||
Total Investment Income
|
92,301
|
||||||
Expenses:
|
|||||||
Advisory fees (note 2)
|
68,732
|
||||||
Registration and filing expenses
|
24,117
|
||||||
Fund accounting fees (note 2)
|
20,268
|
||||||
Professional fees
|
19,593
|
||||||
Transfer agent fees (note 2)
|
18,696
|
||||||
Administration fees (note 2)
|
14,584
|
||||||
Shareholder fulfillment fees
|
6,516
|
||||||
Distribution and service fees - Class C Shares (note 4)
|
3,841
|
||||||
Custody fees (note 2)
|
3,684
|
||||||
Trustee fees and meeting expenses (note 3)
|
3,436
|
||||||
Compliance fees (note 2)
|
2,076
|
||||||
Insurance fees
|
1,916
|
||||||
Security pricing fees
|
1,176
|
||||||
Miscellaneous reporting expenses (note 2)
|
915
|
||||||
Distribution and service fees - Class A Shares (note 4)
|
22
|
||||||
Total Expenses
|
189,572
|
||||||
Fees waived by Advisor (note 2)
|
(68,732)
|
||||||
Expenses reimbursed by Advisor (note 2)
|
(31,069)
|
||||||
Net Expenses
|
89,771
|
||||||
Net Investment Income
|
2,530
|
||||||
Realized and Unrealized Gain (Loss) on Investments:
|
|||||||
Net realized gain from investment transactions
|
1,494,827
|
||||||
Net change in unrealized depreciation on investments
|
(91,560)
|
||||||
Net Realized and Unrealized Gain on Investments
|
1,403,267
|
||||||
Net Increase in Net Assets Resulting from Operations
|
$
|
1,405,797
|
|||||
See Notes to Financial Statements
|
Adaptive Tactical Economic Fund
|
|||||||||||
Statements of Changes in Net Assets
|
|||||||||||
November 30,
|
May 31,
|
||||||||||
For the fiscal year or period ended
|
2020
|
(a)
|
2020
|
||||||||
Operations:
|
|||||||||||
Net investment income
|
$
|
2,530
|
$
|
96,101
|
|||||||
Net realized gain (loss) from investment transactions
|
1,494,827
|
(2,531,822)
|
|||||||||
Net change in unrealized appreciation (depreciation) on investments
|
(91,560)
|
1,467,496
|
|||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations
|
1,405,797
|
(968,225)
|
|||||||||
Distributions to Shareholders:
|
|||||||||||
Institutional Class Shares
|
-
|
(213,808)
|
|||||||||
Class C Shares
|
-
|
(3,740)
|
|||||||||
Class A Shares
|
-
|
(452)
|
|||||||||
Net Decrease in Net Assets Resulting from Distributions
|
-
|
(218,000)
|
|||||||||
Beneficial Interest Transactions:
|
|||||||||||
Shares sold
|
2,598,877
|
6,163,783
|
|||||||||
Reinvested dividends and distributions
|
-
|
181,034
|
|||||||||
Shares repurchased
|
(9,066,993)
|
(4,679,482)
|
|||||||||
Net Increase (Decrease) from Beneficial Interest Transactions
|
(6,468,116)
|
1,665,335
|
|||||||||
Net Increase in Net Assets
|
(5,062,319)
|
479,110
|
|||||||||
Net Assets:
|
|||||||||||
Beginning of Period
|
16,088,738
|
15,609,628
|
|||||||||
End of Period
|
$
|
11,026,419
|
$
|
16,088,738
|
|||||||
Share Information:
|
November 30, 2020 (a)
|
May 31, 2020
|
|||||||||
Institutional Class Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
210,038
|
$
|
2,532,181
|
485,735
|
$
|
6,146,769
|
|||||
Reinvested dividends and distributions
|
-
|
-
|
13,407
|
176,842
|
|||||||
Shares repurchased
|
(753,621)
|
(8,998,486)
|
(396,760)
|
(4,615,724)
|
|||||||
Net Increase (Decrease) in Shares of
|
|||||||||||
Beneficial Interest
|
(543,583)
|
$
|
(6,466,305)
|
102,382
|
$
|
1,707,887
|
|||||
Class C Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
4,030
|
$
|
46,539
|
748
|
$
|
8,667
|
|||||
Reinvested dividends and distributions
|
-
|
-
|
301
|
3,740
|
|||||||
Shares repurchased
|
(5,934)
|
(68,507)
|
(4,503)
|
(48,722)
|
|||||||
Net Decrease in Shares of
|
|||||||||||
Beneficial Interest
|
(1,904)
|
$
|
(21,968)
|
(3,454)
|
$
|
(36,315)
|
|||||
Class A Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||
Shares sold
|
2,341
|
$
|
20,157
|
1,000
|
$
|
8,347
|
|||||
Reinvested dividends and distributions
|
-
|
-
|
50
|
452
|
|||||||
Shares repurchased
|
-
|
-
|
(2,032)
|
(15,036)
|
|||||||
Net Increase (Decrease) in Shares of
|
|||||||||||
Beneficial Interest
|
2,341
|
$
|
20,157
|
(982)
|
$
|
(6,237)
|
|||||
(a)
|
Unaudited.
|
||||||||||
See Notes to Financial Statements
|
Adaptive Tactical Economic Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Institutional Class Shares
|
|||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(e)
|
2020
|
2019
|
2018
|
2017
|
|||||||||
Net Asset Value, Beginning of Period
|
$
|
11.36
|
$
|
11.84
|
$
|
13.79
|
$
|
12.30
|
$
|
11.00
|
|||||
Income (Loss) from Investment Operations:
|
|||||||||||||||
Net investment income (loss) (c)
|
0.01
|
0.08
|
0.09
|
0.02
|
(0.01)
|
||||||||||
Net realized and unrealized gain (loss)
|
|||||||||||||||
on investments
|
1.27
|
(0.39)
|
(0.29)
|
1.68
|
1.31
|
||||||||||
Total from Investment Operations
|
1.28
|
(0.31)
|
(0.20)
|
1.70
|
1.30
|
||||||||||
Less Distributions From:
|
|||||||||||||||
Net investment income
|
-
|
(0.17)
|
(0.04)
|
-
|
-
|
||||||||||
Net realized gains
|
-
|
-
|
(1.71)
|
(0.21)
|
-
|
||||||||||
Total Distributions
|
-
|
(0.17)
|
(1.75)
|
(0.21)
|
-
|
||||||||||
Net Asset Value, End of Period
|
$
|
12.64
|
$
|
11.36
|
$
|
11.84
|
$
|
13.79
|
$
|
12.30
|
|||||
Total Return (d)
|
11.27%
|
(g)
|
(2.84)%
|
(0.55)%
|
13.87%
|
11.82%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
10,199
|
$
|
15,339
|
$
|
14,781
|
$
|
9,562
|
$
|
9,178
|
|||||
Ratios of:
|
|||||||||||||||
Gross Expenses to Average Net Assets (a)
|
2.71%
|
(f)
|
2.50%
|
2.65%
|
3.08%
|
4.87%
|
|||||||||
Net Expenses to Average Net Assets (a)
|
1.25%
|
(f)
|
1.25%
|
1.25%
|
1.25%
|
1.41%
|
|||||||||
Net Investment Income (Loss) to Average
|
|||||||||||||||
Net Assets (a)(b)
|
0.10%
|
(f)
|
0.62%
|
0.70%
|
0.18%
|
(0.09)%
|
|||||||||
Portfolio turnover rate
|
109.99%
|
(g)
|
141.55%
|
159.92%
|
163.22%
|
190.49%
|
|||||||||
(a)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(b)
|
Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Calculated using the average shares method.
|
||||||||||||||
(d)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(e)
|
Unaudited.
|
||||||||||||||
(f)
|
Annualized.
|
||||||||||||||
(g)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Tactical Economic Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Class C Shares
|
|||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(f)
|
2020
|
2019
|
2018
|
2017
|
(d)
|
||||||||
Net Asset Value, Beginning of Period
|
$
|
10.64
|
$
|
11.12
|
$
|
13.18
|
$
|
11.88
|
$
|
10.73
|
|||||
Income (Loss) from Investment Operations:
|
|||||||||||||||
Net investment loss (c)
|
(0.06)
|
(0.04)
|
(0.03)
|
(0.10)
|
(0.12)
|
||||||||||
Net realized and unrealized gain (loss)
|
|||||||||||||||
on investments
|
1.21
|
(0.39)
|
(0.28)
|
1.61
|
1.27
|
||||||||||
Total from Investment Operations
|
1.15
|
(0.43)
|
(0.31)
|
1.51
|
1.15
|
||||||||||
Less Distributions From:
|
|||||||||||||||
Net investment income
|
-
|
(0.05)
|
(0.04)
|
-
|
-
|
||||||||||
Net realized gains
|
-
|
-
|
(1.71)
|
(0.21)
|
-
|
||||||||||
Total Distributions
|
-
|
(0.05)
|
(1.75)
|
(0.21)
|
-
|
||||||||||
Net Asset Value, End of Period
|
$
|
11.79
|
$
|
10.64
|
$
|
11.12
|
$
|
13.18
|
$
|
11.88
|
|||||
Total Return (e)
|
10.70%
|
(h)
|
(3.92)%
|
(1.47)%
|
12.75%
|
10.72%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
799
|
$
|
742
|
$
|
813
|
$
|
737
|
$
|
643
|
|||||
Ratios of:
|
|||||||||||||||
Gross Expenses to Average Net Assets (a)
|
3.60%
|
(g)
|
3.53%
|
3.67%
|
4.09%
|
5.85%
|
|||||||||
Net Expenses to Average Net Assets (a)
|
2.25%
|
(g)
|
2.25%
|
2.25%
|
2.25%
|
2.44%
|
(d)
|
||||||||
Net Investment Loss to Average
|
|||||||||||||||
Net Assets (a)(b)
|
(1.01)%
|
(g)
|
(0.33)%
|
(0.25)%
|
(0.82)%
|
(1.06)%
|
(d)
|
||||||||
Portfolio turnover rate
|
109.99%
|
(h)
|
141.55%
|
159.92%
|
163.22%
|
190.49%
|
|||||||||
(a)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(b)
|
Recognition of net investment loss by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Calculated using the average shares method.
|
||||||||||||||
(d)
|
As of February 24, 2017, the "Advisor Class" Shares were renamed to the "Class C" Shares. There were no other changes to this class of shares.
|
||||||||||||||
(e)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset
values may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(f)
|
Unaudited.
|
||||||||||||||
(g)
|
Annualized.
|
||||||||||||||
(h)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Tactical Economic Fund
|
|||||||||||
Financial Highlights
|
|||||||||||
Class A Shares
|
|||||||||||
For a share outstanding during
|
November 30,
|
May 31,
|
|||||||||
the fiscal year or periods ended
|
2020
|
(j)
|
2020
|
2019
|
(h)
|
||||||
Net Asset Value, Beginning of Period
|
$
|
7.74
|
$
|
8.11
|
$
|
10.00
|
|||||
Income (Loss) from Investment Operations:
|
|||||||||||
Net investment income (c)
|
(0.01)
|
0.04
|
0.02
|
||||||||
Net realized and unrealized (gain) loss
|
|||||||||||
on investments
|
0.87
|
(0.26)
|
(0.16)
|
||||||||
Total from Investment Operations
|
0.86
|
(0.22)
|
(0.14)
|
||||||||
Less Distributions From:
|
|||||||||||
Net investment income
|
-
|
(0.15)
|
(0.04)
|
||||||||
Net realized gains
|
-
|
-
|
(1.71)
|
||||||||
Total Distributions
|
-
|
(0.15)
|
(1.75)
|
||||||||
Net Asset Value, End of Period
|
$
|
8.60
|
$
|
7.74
|
$
|
8.11
|
|||||
Total Return (g)(i)
|
11.11%
|
(e)
|
(2.96)%
|
(0.18)%
|
(e)
|
||||||
Net Assets, End of Period (in thousands)
|
$
|
29
|
$
|
8
|
$
|
16
|
|||||
Ratios of:
|
|||||||||||
Gross Expenses to Average Net Assets (a)
|
2.96%
|
(d)
|
2.83%
|
2.96%
|
(d)
|
||||||
Net Expenses to Average Net Assets (a)
|
1.50%
|
(d)
|
1.50%
|
1.50%
|
(d)
|
||||||
Net Investment Income to Average
|
|||||||||||
Net Assets (a)(b)
|
(0.17)%
|
(d)
|
0.52%
|
0.43%
|
(d)
|
||||||
Portfolio turnover rate
|
109.99%
|
(e)
|
141.55%
|
159.92%
|
(e)(f)
|
||||||
(a)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||
(b)
|
Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||
(c)
|
Calculated using the average shares method.
|
||||||||||
(d)
|
Annualized.
|
||||||||||
(e)
|
Not annualized.
|
||||||||||
(f)
|
Portfolio turnover rate is calculated based on the entire Fund, not the Class A Shares.
|
||||||||||
(g)
|
Does not include impact of sales charge, if any.
|
||||||||||
(h)
|
For a share outstanding during the period from October 18, 2018 (Date of Initial Public Investment) through May 31, 2019.
|
||||||||||
(i)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||
(j)
|
Unaudited.
|
||||||||||
See Notes to Financial Statements
|
Adaptive Tactical Rotation Fund
|
|||||||||
Schedule of Investments
|
|||||||||
(Unaudited)
|
|||||||||
As of November 30, 2020
|
|||||||||
Shares |
Value (Note 1) |
||||||||
EXCHANGE-TRADED PRODUCTS - 98.89%
|
|||||||||
Consumer Discretionary - 8.93%
|
|||||||||
Consumer Discretionary Select Sector SPDR Fund
|
9,819
|
$
|
1,544,136
|
||||||
Emerging Markets - 4.55%
|
|||||||||
SPDR Portfolio Emerging Markets ETF
|
19,555
|
786,502
|
|||||||
Growth - 12.92%
|
|||||||||
SPDR Series S&P 500 Growth Portfolio
|
33,312
|
1,775,530
|
|||||||
Vanguard Russell 1000 Growth ETF
|
1,930
|
459,321
|
|||||||
2,234,851
|
|||||||||
Income - 13.75%
|
|||||||||
Vanguard Dividend Appreciation ETF
|
17,191
|
2,378,547
|
|||||||
Industrials - 8.79%
|
|||||||||
Industrial Select Sector SPDR Fund
|
17,272
|
1,520,454
|
|||||||
Large-Cap - 23.88%
|
|||||||||
Invesco QQQ ETF
|
3,903
|
1,169,417
|
|||||||
iShares Edge MSCI Momentum Factor ETF
|
7,422
|
1,159,613
|
|||||||
SPDR S&P 500 ETF Trust
|
4,974
|
1,800,886
|
|||||||
4,129,916
|
|||||||||
Materials - 7.51%
|
|||||||||
Materials Select Sector SPDR Fund
|
18,293
|
1,298,620
|
|||||||
Mid-Cap - 13.62%
|
|||||||||
SPDR S&P 400 Mid-Cap Growth ETF
|
36,073
|
2,354,845
|
|||||||
Small-Cap - 4.94%
|
|||||||||
SPDR S&P 600 Small-Cap Value ETF
|
13,801
|
854,282
|
|||||||
Total Exchange-Traded Products (Cost $15,688,097)
|
17,102,153
|
||||||||
SHORT-TERM INVESTMENT - 1.07%
|
|||||||||
§
|
Fidelity Investments Money Market Government Portfolio -
|
||||||||
Institutional Class, 0.01%
|
184,907
|
184,907
|
|||||||
Total Short-Term Investment (Cost $184,907)
|
184,907
|
||||||||
(Continued)
|
Adaptive Tactical Rotation Fund
|
|||||||||
Schedule of Investments
|
|||||||||
(Unaudited)
|
|||||||||
As of November 30, 2020
|
|||||||||
Value (Note 1)
|
|||||||||
Investments, at Value (Cost $15,873,004) - 99.96%
|
$
|
17,287,060
|
|||||||
Other Assets Less Liabilities - 0.04%
|
6,823
|
||||||||
Net Assets - 100.00%
|
$
|
17,293,883
|
|||||||
§
|
Represents 7 day effective yield as of November 30, 2020.
|
||||||||
Summary of Investments
|
|||||||||
by Industry
|
% of Net Assets
|
Value
|
|||||||
Exchange-Traded Products
|
|||||||||
Consumer Discretionary
|
8.93%
|
$
|
1,544,136
|
||||||
Emerging Markets
|
4.55%
|
786,502
|
|||||||
Growth
|
12.92%
|
2,234,851
|
|||||||
Income
|
13.75%
|
2,378,547
|
|||||||
Industrials
|
8.79%
|
1,520,454
|
|||||||
Large-Cap
|
23.88%
|
4,129,916
|
|||||||
Materials
|
7.51%
|
1,298,620
|
|||||||
Mid-Cap
|
13.62%
|
2,354,845
|
|||||||
Small-Cap
|
4.94%
|
854,282
|
|||||||
Short-Term Investment
|
1.07%
|
184,907
|
|||||||
Other Assets Less Liabilities
|
0.04%
|
6,823
|
|||||||
Total Net Assets
|
100.00%
|
$
|
17,293,883
|
||||||
See Notes to Financial Statements
|
Adaptive Tactical Rotation Fund
|
|||||||
Statement of Assets and Liabilities
|
|||||||
(Unaudited)
|
|||||||
As of November 30, 2020
|
|||||||
Assets:
|
|||||||
Investments, at value (cost $15,873,004)
|
$
|
17,287,060
|
|||||
Cash
|
8,061
|
||||||
Receivables:
|
|||||||
Fund shares sold
|
423,431
|
||||||
Dividends
|
2
|
||||||
Due from Advisor
|
10,370
|
||||||
Prepaid expenses:
|
|||||||
Registration and filing expenses
|
17,752
|
||||||
Fund accounting fees
|
3,106
|
||||||
Insurance expenses
|
1,891
|
||||||
Total assets
|
17,751,673
|
||||||
Liabilities:
|
|||||||
Payables:
|
|||||||
Fund shares repurchased
|
417,559
|
||||||
Accrued expenses:
|
|||||||
Shareholder fulfillment fees
|
10,981
|
||||||
Professional fees
|
10,811
|
||||||
Custody fees
|
7,878
|
||||||
Trustee fees and meeting expenses
|
6,075
|
||||||
Compliance fees
|
1,536
|
||||||
Transfer agent fees
|
1,432
|
||||||
Distribution and service fees - Class C Shares and Class A Shares
|
705
|
||||||
Security pricing fees
|
341
|
||||||
Administration fees
|
269
|
||||||
Miscellaneous reporting expenses
|
203
|
||||||
Total liabilities
|
457,790
|
||||||
Total Net Assets
|
$
|
17,293,883
|
|||||
Net Assets Consist of:
|
|||||||
Paid in capital
|
$
|
23,061,585
|
|||||
Accumulated deficit
|
(5,767,702)
|
||||||
Total Net Assets
|
$
|
17,293,883
|
|||||
Institutional Class Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
1,352,331
|
||||||
Net Assets
|
$
|
16,021,391
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share
|
$
|
11.85
|
|||||
Class C Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
105,980
|
||||||
Net Assets
|
$
|
1,174,247
|
|||||
Net Asset Value, Offering Price and Redemption Price Per Share (a)
|
$
|
11.08
|
|||||
Class A Shares of beneficial interest outstanding, no par value (unlimited authorized shares)
|
11,557
|
||||||
Net Assets
|
$
|
98,245
|
|||||
Net Asset Value and Redemption Price Per Share
|
$
|
8.50
|
|||||
Maximum Offering Price Per Share ($8.50 ÷ 95.50%)(b)
|
$
|
8.90
|
|||||
(a)
|
Contingent deferred sales charge for Class C Shares is imposed on shares redeemed within one year of the purchase date (note 1).
|
||||||
(b)
|
The Fund charges a 4.50% maximum sales load on all initial purchases.
|
||||||
See Notes to Financial Statements
|
Adaptive Tactical Rotation Fund
|
|||||||
Statement of Operations
|
|||||||
(Unaudited)
|
|||||||
For the fiscal period ended November 30, 2020
|
|||||||
Investment Income:
|
|||||||
Dividends
|
$
|
90,212
|
|||||
Total Investment Income
|
90,212
|
||||||
Expenses:
|
|||||||
Advisory fees (note 2)
|
95,322
|
||||||
Registration and filing expenses
|
22,698
|
||||||
Fund accounting fees (note 2)
|
20,534
|
||||||
Transfer agent fees (note 2)
|
18,513
|
||||||
Professional fees
|
18,483
|
||||||
Administration fees (note 2)
|
14,601
|
||||||
Shareholder fulfillment fees
|
13,256
|
||||||
Custody fees (note 2)
|
9,570
|
||||||
Compliance fees (note 2)
|
7,149
|
||||||
Distribution and service fees - Class C Shares (note 4)
|
5,712
|
||||||
Trustee fees and meeting expenses (note 3)
|
3,712
|
||||||
Insurance expenses
|
2,067
|
||||||
Security pricing fees
|
1,464
|
||||||
Miscellaneous expenses (note 2)
|
915
|
||||||
Interest expense
|
701
|
||||||
Distribution and service fees - Class A Shares (note 4)
|
143
|
||||||
Total Expenses
|
234,840
|
||||||
Fees waived by Advisor (note 2)
|
(95,322)
|
||||||
Expenses reimbursed by Advisor (note 2)
|
(13,809)
|
||||||
Net Expenses
|
125,709
|
||||||
Net Investment Loss
|
(35,497)
|
||||||
Realized and Unrealized Gain on Investments:
|
|||||||
Net realized gain from investment transactions
|
2,155,295
|
||||||
Net change in unrealized appreciation on investments
|
178,501
|
||||||
Net Realized and Unrealized Gain on Investments
|
2,333,796
|
||||||
Net Increase in Net Assets Resulting from Operations
|
$
|
2,298,299
|
|||||
See Notes to Financial Statements
|
Adaptive Tactical Rotation Fund
|
||||||||||||
Statements of Changes in Net Assets
|
||||||||||||
November 30,
|
May 31,
|
|||||||||||
For the fiscal year or period ended
|
2020 (a)
|
2020
|
||||||||||
Operations:
|
||||||||||||
Net investment income (loss)
|
$ (35,497)
|
$ 176,637
|
||||||||||
Net realized gain (loss) from investment transactions
|
2,155,295
|
(1,773,728)
|
||||||||||
Net change in unrealized appreciation on investments
|
178,501
|
890,097
|
||||||||||
Net Decrease in Net Assets Resulting from Operations
|
2,298,299
|
(706,994)
|
||||||||||
Distributions to Shareholders:
|
||||||||||||
Institutional Class Shares
|
-
|
(899,006)
|
||||||||||
Class C Shares
|
-
|
(26,127)
|
||||||||||
Class A Shares
|
-
|
(5,867)
|
||||||||||
Net Decrease in Net Assets Resulting from Distributions
|
-
|
(931,000)
|
||||||||||
Beneficial Interest Transactions:
|
||||||||||||
Shares sold
|
4,508,713
|
7,651,188
|
||||||||||
Reinvested dividends and distributions
|
-
|
897,756
|
||||||||||
Shares repurchased
|
(9,753,666)
|
(60,649,474)
|
||||||||||
Decrease from Beneficial Interest Transactions
|
(5,244,953)
|
(52,100,530)
|
||||||||||
Net Decrease in Net Assets
|
(2,946,654)
|
(53,738,524)
|
||||||||||
Net Assets:
|
||||||||||||
Beginning of Period
|
20,240,537
|
73,979,061
|
||||||||||
End of Period
|
$17,293,883
|
$ 20,240,537
|
||||||||||
Share Information:
|
November 30, 2020 (a)
|
May 31, 2020
|
||||||||||
Institutional Class Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||
Shares sold
|
386,187
|
$
|
4,372,905 |
657,769
|
$ |
7,633,434 | ||||||
Reinvested dividends and distributions
|
-
|
-
|
70,525
|
866,047
|
||||||||
Shares repurchased
|
(863,877)
|
(9,517,995)
|
(5,072,896)
|
(59,675,291)
|
||||||||
Net Decrease in Shares of
|
||||||||||||
Beneficial Interest
|
(477,690)
|
(5,145,090)
|
(4,344,602)
|
$ |
(51,175,810) | |||||||
Class C Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||
Shares sold
|
13,055
|
$ |
135,808 |
866
|
$ |
9,412 | ||||||
Reinvested dividends and distributions
|
-
|
-
|
2,254
|
26,127
|
||||||||
Shares repurchased
|
(20,333)
|
(212,228)
|
(79,278)
|
(870,559)
|
||||||||
Net Decrease in Shares of
|
||||||||||||
Beneficial Interest
|
(7,278)
|
$ |
(76,420) |
(76,158)
|
$ |
(835,020) | ||||||
Class A Shares
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||
Shares sold
|
-
|
$ |
- |
1,016
|
$ |
8,342 | ||||||
Reinvested dividends and distributions
|
-
|
-
|
632
|
5,582
|
||||||||
Shares repurchased
|
(2,823)
|
(23,443)
|
(12,844)
|
(103,624)
|
||||||||
Net Decrease in Shares of
|
||||||||||||
Beneficial Interest
|
(2,823)
|
$ |
(23,443) |
(11,196)
|
$ |
(89,700) | ||||||
(a) Unaudited.
|
||||||||||||
See Notes to Financial Statements
|
Adaptive Tactical Rotation Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Institutional Class Shares
|
|||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(f)
|
2020
|
2019
|
2018
|
2017
|
|||||||||
Net Asset Value, Beginning of Period
|
$
|
10.40
|
$
|
11.61
|
$
|
13.76
|
$
|
12.78
|
$
|
11.26
|
|||||
Income (Loss) from Investment Operations:
|
|||||||||||||||
Net investment income (loss)(d)
|
(0.02)
|
0.06
|
0.13
|
0.09
|
0.08
|
||||||||||
Net realized and unrealized gain (loss)
|
|||||||||||||||
on investments
|
1.47
|
(0.94)
|
(0.75)
|
0.97
|
1.44
|
||||||||||
Total from Investment Operations
|
1.45
|
(0.88)
|
(0.62)
|
1.06
|
1.52
|
||||||||||
Less Distributions From:
|
|||||||||||||||
Net investment income
|
-
|
(0.33)
|
(0.10)
|
(0.08)
|
-
|
||||||||||
Net realized gains
|
-
|
-
|
(1.43)
|
-
|
-
|
||||||||||
Total Distributions
|
-
|
(0.33)
|
(1.53)
|
(0.08)
|
-
|
||||||||||
Net Asset Value, End of Period
|
$
|
11.85
|
$
|
10.40
|
$
|
11.61
|
$
|
13.76
|
$
|
12.78
|
|||||
Total Return (a)
|
14.05%
|
(h)
|
(7.98)%
|
(3.38)%
|
8.28%
|
13.50%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
16,021
|
$
|
19,027
|
$
|
71,697
|
$
|
129,034
|
$
|
89,872
|
|||||
Ratios of:
|
|||||||||||||||
Interest Expense to Average Net Assets
|
0.00%
|
(e)
|
0.00%
|
(e)
|
-
|
-
|
-
|
||||||||
Gross Expenses to Average Net Assets (b)
|
2.41%
|
(g)
|
1.80%
|
1.34%
|
1.30%
|
1.41%
|
|||||||||
Net Expenses to Average Net Assets (b)
|
1.25%
|
(g)
|
1.25%
|
1.25%
|
1.25%
|
1.40%
|
|||||||||
Net Investment Income (Loss) to Average
|
|||||||||||||||
Net Assets (b)(c)
|
(0.31)%
|
(g)
|
0.49%
|
1.03%
|
0.66%
|
0.64%
|
|||||||||
Portfolio turnover rate
|
170.28%
|
(h)
|
624.45%
|
379.14%
|
80.28%
|
166.56%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(d)
|
Calculated using the average shares method.
|
||||||||||||||
(e)
|
Less than 0.01% of net assets.
|
||||||||||||||
(f)
|
Unaudited.
|
||||||||||||||
(g)
|
Annualized.
|
||||||||||||||
(h)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Tactical Rotation Fund
|
|||||||||||||||
Financial Highlights
|
|||||||||||||||
Class C Shares
|
|||||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||||
of the fiscal years or period ended
|
2020
|
(g)
|
2020
|
2019
|
2018
|
2017
|
(e)
|
||||||||
Net Asset Value, Beginning of Period
|
$
|
9.77
|
$
|
10.91
|
$
|
13.16
|
$
|
12.36
|
$
|
10.99
|
|||||
Income (Loss) from Investment Operations:
|
|||||||||||||||
Net investment loss (d)
|
(0.07)
|
(0.06)
|
(0.01)
|
(0.04)
|
(0.02)
|
||||||||||
Net realized and unrealized gain (loss)
|
|||||||||||||||
on investments
|
1.38
|
(0.89)
|
(0.71)
|
0.92
|
1.39
|
||||||||||
Total from Investment Operations
|
1.31
|
(0.95)
|
(0.72)
|
0.88
|
1.37
|
||||||||||
Less Distributions From:
|
|||||||||||||||
Net investment income
|
-
|
(0.19)
|
(0.10)
|
(0.08)
|
-
|
||||||||||
Net realized gains
|
-
|
-
|
(1.43)
|
-
|
-
|
||||||||||
Total Distributions
|
-
|
(0.19)
|
(1.53)
|
(0.08)
|
-
|
||||||||||
Net Asset Value, End of Period
|
$
|
11.08
|
$
|
9.77
|
$
|
10.91
|
$
|
13.16
|
$
|
12.36
|
|||||
Total Return (a)
|
13.41%
|
(i)
|
(8.96)%
|
(4.35)%
|
7.10%
|
12.47%
|
|||||||||
Net Assets, End of Period (in thousands)
|
$
|
1,174
|
$
|
1,107
|
$
|
2,066
|
$
|
2,713
|
$
|
2,076
|
|||||
Ratios of:
|
|||||||||||||||
Interest Expense to Average Net Assets
|
0.00%
|
(f)
|
-
|
(g)
|
-
|
-
|
-
|
||||||||
Gross Expenses to Average Net Assets (b)
|
3.37%
|
(h)
|
2.80%
|
2.34%
|
2.30%
|
2.41%
|
|||||||||
Net Expenses to Average Net Assets (b)
|
2.25%
|
(h)
|
2.25%
|
2.25%
|
2.25%
|
2.40%
|
|||||||||
Net Investment Loss to Average
|
|||||||||||||||
Net Assets (b)(c)
|
(1.34)%
|
(h)
|
(0.53)%
|
(0.10)%
|
(0.32)%
|
(0.14)%
|
|||||||||
Portfolio turnover rate
|
170.28%
|
(i)
|
624.45%
|
379.14%
|
80.28%
|
166.56%
|
|||||||||
(a)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||||
(b)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||||
(c)
|
Recognition of net investment loss by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||||
(d)
|
Calculated using the average shares method.
|
||||||||||||||
(e)
|
As of February 24, 2017, the "Advisor Class" Shares were renamed to the "Class C" Shares. There were no other changes to this class of shares.
|
||||||||||||||
(f)
|
Less than 0.01% of net assets.
|
||||||||||||||
(g)
|
Unaudited.
|
||||||||||||||
(h)
|
Annualized.
|
||||||||||||||
(i)
|
Not annualized.
|
||||||||||||||
See Notes to Financial Statements
|
Adaptive Tactical Rotation Fund
|
|||||||||||||
Financial Highlights
|
|||||||||||||
Class A Shares
|
|||||||||||||
For a share outstanding during each
|
November 30,
|
May 31,
|
|||||||||||
of the fiscal years or periods ended
|
2020
|
(k)
|
2020
|
2019
|
2018
|
(i)
|
|||||||
Net Asset Value, Beginning of Period
|
$
|
7.47
|
$
|
8.42
|
$
|
10.49
|
$
|
10.00
|
|||||
Income from Investment Operations:
|
|||||||||||||
Net investment income (loss) (f)
|
(0.02)
|
0.02
|
0.05
|
(0.02)
|
|||||||||
Net realized and unrealized gain (loss) on investments
|
1.05
|
(0.66)
|
(0.59)
|
0.51
|
|||||||||
Total from Investment Operations
|
1.03
|
(0.64)
|
(0.54)
|
0.49
|
|||||||||
Less Distributions From:
|
|||||||||||||
Net investment income
|
-
|
(0.31)
|
(0.10)
|
-
|
|||||||||
Net realized gains
|
-
|
-
|
(1.43)
|
-
|
|||||||||
Total Distributions
|
-
|
(0.31)
|
(1.53)
|
-
|
|||||||||
Net Asset Value, End of Period
|
$
|
8.50
|
$
|
7.47
|
$
|
8.42
|
$
|
10.49
|
|||||
Total Return (c)(g)
|
13.79%
|
(b)
|
(8.17)%
|
(3.69)%
|
4.90%
|
(b)
|
|||||||
Net Assets, End of Period (in thousands)
|
$
|
98
|
$
|
107
|
$
|
215
|
$
|
47
|
|||||
Ratios of:
|
|||||||||||||
Interest Expense to Average Net Assets
|
0.00%
|
(j)
|
0.00%
|
(j)
|
-
|
-
|
|||||||
Gross Expenses to Average Net Assets (d)
|
2.63%
|
(a)
|
2.05%
|
1.59%
|
1.61%
|
(a)
|
|||||||
Net Expenses to Average Net Assets (d)
|
1.50%
|
(a)
|
1.50%
|
1.50%
|
1.50%
|
(a)
|
|||||||
Net Investment Income (Loss) to Average Net Assets (d)(e)
|
(0.58)%
|
(a)
|
0.23%
|
0.55%
|
(1.49)%
|
(a)
|
|||||||
Portfolio turnover rate
|
170.28%
|
(b)
|
624.45%
|
379.14%
|
80.28%
|
(b)(h)
|
|||||||
(a)
|
Annualized.
|
||||||||||||
(b)
|
Not annualized.
|
||||||||||||
(c)
|
Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values
may differ from the net asset values and returns for shareholder transactions.
|
||||||||||||
(d)
|
Does not include expenses of the investment companies in which the Fund invests.
|
||||||||||||
(e)
|
Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
|
||||||||||||
(f)
|
Calculated using the average shares method.
|
||||||||||||
(g)
|
Does not include impact of sales charge, if any.
|
||||||||||||
(h)
|
Portfolio turnover rate is calculated based on the entire Fund, not the Class A Shares.
|
||||||||||||
(i)
|
For a share outstanding during the period from April 2, 2018 (Date of Initial Public Investment) through May 31, 2018.
|
||||||||||||
(j)
|
Less than 0.01% of net assets.
|
||||||||||||
(k)
|
Unaudited.
|
||||||||||||
See Notes to Financial Statements
|
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
1.
|
Organization and Significant Accounting Policies
|
The Adaptive Funds (“Funds”), formerly known as the Cavalier Funds, are series of the Starboard Investment Trust (“Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as
amended (the “1940 Act”), as an open-end management investment company. Each Fund is a separate, diversified series of the Trust.
The Adaptive Fundamental Growth Fund, formerly known as Cavalier Fundamental Growth Fund, seeks to achieve its investment objective of capital appreciation by principally investing in domestic stocks that the
portfolio manager believes to have above-average growth potential relative to their peers.
The Adaptive Growth Opportunities Fund, formerly known as Cavalier Growth Opportunities Fund, seeks to achieve its investment objective of capital appreciation by investing in exchange-traded funds (“ETFs”) that are
registered under the 1940 Act and not affiliated with the Fund that invest in equity securities of any market capitalization of issuers from a number of countries throughout the world, including emerging market countries.
The Adaptive Hedged High Income Fund, formerly known as Cavalier Hedged High Income Fund, seeks to achieve its investment objective of current income and real return by investing
in other investment companies, including mutual funds and ETFs that are registered under the 1940 Act and not affiliated with the Fund or making direct investments in portfolio securities based upon institutional research.
The Adaptive Hedged Income Fund, formerly known as Cavalier Adaptive Income Fund, seeks to achieve its investment objective of total return by investing in other investment companies, including mutual funds and ETFs
that are registered under the 1940 Act, or making direct investments.
The Adaptive Tactical Economic Fund, formerly known as Cavalier Tactical Economic Fund, seeks to achieve its investment objective of total return by investing in ETFs
as well as other funds that are registered under the 1940 Act and not affiliated with the Fund.
The Adaptive Tactical Rotation Fund, formerly known as Cavalier Tactical Rotation Fund, seeks to achieve its investment objective of capital appreciation by investing
in ETFs that are registered under the 1940 Act and not affiliated with the Fund.
Each Fund currently has an unlimited number of authorized shares, which are divided into three classes – Institutional Class Shares, Class C Shares, and Class A Shares. Each class of shares has equal rights to
assets of the Funds, and the classes are identical except for differences in ongoing distribution and service fees.
The Class C Shares and Class A Shares are subject to distribution plan fees as described in Note 4. Each Fund’s Class C Shares are sold without an initial sales charge; however, they are subject to a contingent
deferred sales charge of 1.00% on shares redeemed within one year of the purchase date. This amount is paid to Capital Investment Group, Inc. (the “Distributor”). Income, expenses (other than distribution and service fees), and realized and
unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. All classes have equal voting privileges, except where otherwise required by law or when the Trustees determine that the matter to
be voted on affects only the interests of the shareholders of a particular class. Class C Shares held longer than seven years will automatically convert into Institutional Class Shares. Class A Shares have an initial sales charge of 4.50%, but
there is no automatic conversion of Class A Shares into any other Class of Shares.
As of November 30, 2020, the Adaptive Fundamental Growth Fund, the Adaptive Growth Opportunities Fund, the Adaptive Tactical Economic Fund, and the Adaptive Tactical Rotation Fund were the only Funds with active
Class A Shares.
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
The Date of Initial Public Investment for each Fund and Class of Shares is as follows:
Fund
|
Institutional
Class Shares
|
Class C Shares
|
Class A Shares
|
Adaptive Fundamental Growth Fund
|
October 17, 2013
|
November 4, 2013
|
March 13, 2018
|
Adaptive Growth Opportunities Fund
|
September 20, 2012
|
September 26, 2012
|
April 16, 2018
|
Adaptive Hedged High Income Fund
|
September 20, 2012
|
September 26, 2012
|
-
|
Adaptive Hedged Income Fund
|
October 2, 2009
|
February 25, 2011
|
-
|
Adaptive Tactical Economic Fund
|
September 20, 2012
|
September 26, 2012
|
October 18, 2018
|
Adaptive Tactical Rotation Fund
|
September 20, 2012
|
September 26, 2012
|
April 2, 2018
|
The following is a summary of significant accounting policies consistently followed by the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Funds follow the
accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946 “Financial Services – Investment Companies.”
Investment Valuation
Each Fund’s investments in securities are carried at fair value. Securities listed on an exchange or quoted on a national market system are valued at the last quoted sales price provided by a third-party pricing service at the time the
valuation is made (generally 4:00 p.m. Eastern Time). Securities traded in the NASDAQ over-the-counter market are generally valued at the NASDAQ Official Closing Price. Other securities traded in the over-the-counter market and listed securities
for which no sale was reported on that date are valued at the most recent bid price. Securities and assets for which representative market quotations are not readily available (e.g., if the exchange on which the portfolio security is principally
traded closes early or if trading of the particular portfolio security is halted during the day and does not resume prior to each Fund’s net asset value calculation) or which cannot be accurately valued using each Fund’s normal pricing procedures
are valued at fair value as determined in good faith under policies approved by the Board of Trustees (the “Trustees”). A portfolio security’s “fair value” price may differ from the price next available for that portfolio security using each
Fund’s normal pricing procedures. Instruments with maturities of 60 days or less are valued at amortized cost, which approximates market value. Unlisted securities for which market quotations are readily available are valued at the latest quoted
sales price, if available, at the time of valuation, otherwise, at the latest quoted bid price. Options are valued at the mean of the last quoted bid and ask prices provided by a third-party pricing service from the primary exchange or the board
of trade on which such options are traded. Foreign securities listed on foreign exchanges are valued with quotations from the primary market in which they are traded and are translated from the local currency into U.S. dollars using current
exchange rates.
Underlying Funds
Open-End Funds - Open-end funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other
securities and assets at their fair value to the methods established by the boards of directors of the open-end funds. Open-end funds are valued at their respective net asset values as reported by such investment companies.
Fair Value Measurement
Each Fund has adopted ASC Topic 820, Fair Value Measurements. ASC Topic 820 defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements.
Various inputs are used in determining the value of each Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1: Unadjusted quoted prices in active markets for identical securities
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
Level 2: Other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.)
Level 3: Significant unobservable inputs (including each Fund’s own assumptions in determining fair value of investments)
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the
liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.
Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is
determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs as of November 30, 2020 for each Fund’s investments
measured at fair value:
Adaptive Fundamental Growth Fund (a)
Assets
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Common Stocks*
|
$
|
50,258,204
|
$
|
50,258,204
|
$
|
-
|
$
|
-
|
Exchange-Traded Product
|
4,164,418
|
4,164,418
|
-
|
-
|
||||
Short-Term Investment
|
418,056
|
418,056
|
-
|
-
|
||||
Total Assets
|
$
|
54,840,678
|
$
|
54,840,678
|
$
|
-
|
$
|
-
|
Adaptive Growth Opportunities Fund (a)
Assets
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Exchange-Traded Products*
|
$
|
90,779,332
|
$
|
90,779,332
|
$
|
-
|
$
|
-
|
Short-Term Investment
|
7,757,819
|
7,757,819
|
-
|
-
|
||||
Total Assets
|
$
|
98,537,151
|
$
|
98,537,151
|
$
|
-
|
$
|
-
|
Adaptive Hedged High Income Fund (a)
Assets
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Exchange-Traded Products*
|
$
|
8,430,149
|
$
|
8,430,149
|
$
|
-
|
$
|
-
|
Short-Term Investment
|
193,435
|
193,435
|
-
|
-
|
||||
Total Assets
|
$
|
8,623,584
|
$
|
8,623,584
|
$
|
-
|
$
|
-
|
Adaptive Hedged Income Fund (a)
Assets
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Exchange-Traded Products*
|
$
|
19,238,093
|
$
|
19,238,093
|
$
|
-
|
$
|
-
|
Preferred Stock*
|
500,000
|
-
|
500,000
|
-
|
||||
Asset-Backed Securities*
|
2,407,351
|
-
|
2,407,351
|
-
|
||||
Collateralized Mortgage Obligations*
|
15,138,329
|
-
|
15,138,329
|
-
|
||||
Short-Term Investment
|
9,188,609
|
9,188,609
|
-
|
-
|
||||
Total Assets
|
$
|
46,372,382
|
$
|
28,426,702
|
$
|
17,945,680
|
$
|
-
|
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
Adaptive Tactical Economic Fund (a)
Assets
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Exchange-Traded Products*
|
$
|
10,964,281
|
$
|
10,964,281
|
$
|
-
|
$
|
-
|
Short-Term Investment
|
120,082
|
120,082
|
-
|
-
|
||||
Total Assets
|
$
|
11,084,363
|
$
|
11,084,363
|
$
|
-
|
$
|
-
|
Adaptive Tactical Rotation Fund (a)
Assets
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Exchange-Traded Products*
|
$
|
17,102,153
|
$
|
17,102,153
|
$
|
-
|
$
|
-
|
Short-Term Investment
|
184,907
|
184,907
|
-
|
-
|
||||
Total Assets
|
$
|
17,287,060
|
$
|
17,287,060
|
$
|
-
|
$
|
-
|
*Refer to the Schedules of Investments for a breakdown by Industry.
(a) The Funds held no Level 3 securities during the fiscal period ended November 30, 2020.
Purchased Options
When the Funds purchase an option, an amount equal to the premium paid by the Funds is recorded as an investment and is subsequently adjusted to the current value of the option purchased. If an option expires on the stipulated expiration date or
if the Funds enter into a closing sale transaction, a gain or loss is realized. If a call option is exercised, the cost of the security acquired is increased by the premium paid for the call. If a put option is exercised, a gain or loss is realized
from the sale of the underlying security, and the proceeds from such sale are decreased by the premium originally paid. Purchased options are non-income producing securities.
Derivative Financial Instruments
The Funds may invest in derivative financial instruments (derivatives) in order to manage risk or gain exposure to various other investments or markets. Derivatives may contain various risks including the potential inability of the counterparty
to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and the potential for market movements which may expose the Funds to gains or losses in excess of the amounts shown on each Funds’
Statement of Assets and Liabilities.
Derivatives are marked to market daily based upon quotations from market makers or the Funds’ independent pricing services and the Funds’ net benefit or obligation under the contract, as measured by the fair market value of the contract, is
included in Investments, at value on the Statement of Assets and Liabilities for options purchased. Net realized gains and losses and net change in unrealized appreciation and depreciation on these contracts for the year are included in the
Realized and Unrealized Gain on Investments on each Funds’ Statement of Operations for options purchased. The Funds had no open option positions as of the fiscal period ended November 30, 2020.
The following table sets forth the effect of the derivative instruments on the Statement of Operations for the fiscal period ended November 30, 2020 for each applicable Fund as follows:
Adaptive Fundamental Growth Fund
Derivative Type
|
Location
|
Gains/Losses
|
|
Equity Contracts – purchased options
|
Net realized loss from investments
|
$ (302,043)
|
|
Equity Contracts – purchased options
|
Net change in unrealized appreciation on investments
|
$ 112,081
|
|
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
Adaptive Growth Opportunities Fund
Derivative Type
|
Location
|
Gains/Losses
|
|
Equity Contracts – purchased options
|
Net realized loss from investments
|
$ (238,827)
|
|
Equity Contracts – purchased options
|
Net change in unrealized appreciation on investments
|
$ 89,221
|
Investments in the Funds are subject to the following options risks:
Risks from Purchasing Options. If a call or put option purchased by the Funds is not sold when it has remaining value and if the market price of the underlying security, in the case of a call, remains
less than or equal to the exercise price, or, in the case of a put, remains equal to or greater than the exercise price, the Funds will lose its entire investment in the option. Since many factors influence the value of an option, including the
price of the underlying security, the exercise price, the time to expiration, the interest rate, and the dividend rate of the underlying security, the Advisor’s success in implementing the Funds’ strategy may depend on an ability to predict
movements in the prices of individual securities, fluctuations in markets, and movements in interest rates. There is no assurance that a liquid market will exist when the Funds seek to close out an option position. Where a position in a purchased
option is used as a hedge against price movements in a related position, the price of the option may move more or less than the price of the related position.
Investments in the Funds may also be subject to counterparty risk on derivatives. This risk refers to the risk that an issuer or counterparty will fail to pay its obligations to the Funds when they are due. As a result, the Funds’ income might
be reduced, the value of the Funds’ investment might fall, and/or the Funds could lose the entire amount of their investment. Changes in the financial condition of an issuer or counterparty, changes in specific economic, social, or political
conditions that affect a particular type of security or other instrument or an issuer, and changes to economic, social, or political conditions in general can increase the risk of default by an issuer or counterparty, which can affect a security’s
or other instrument’s credit quality or value and an issuer’s or counterparty’s ability to pay interest and principal when due.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as a Fund is informed of the
dividend if such information is obtained subsequent to the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion and amortization of discounts and premiums. Gains and losses are determined on the identified cost
basis, which is the same basis used for federal income tax purposes.
Expenses
Each Fund bears expenses incurred specifically on its behalf as well as a portion of general expenses, which are allocated according to methods reviewed annually by the Trustees.
Distributions
The Funds may declare and distribute dividends from net investment income (if any) monthly. Distributions from capital gains (if any) are generally declared and distributed annually. Dividends and distributions to shareholders are recorded on
ex-date.
Estimates
The preparation of financial statements in conformity with 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 increases and decreases in the net assets from operations during the reporting period. Actual results could differ from those estimates.
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements, as each Fund intends to distribute to shareholders all taxable investment income and realized gains and otherwise continue to comply with Subchapter M of the
Internal Revenue Code applicable to regulated investment companies.
2.
|
Transactions with Related Parties and Service Providers
|
Advisor
Each Fund pays a monthly advisory fee to Cavalier Investments, LLC d/b/a Adaptive Investments, LLC (the “Advisor”), based upon the average daily net assets and calculated at an annual rate.
See the table below for the advisory fee rates and amounts earned by the Advisor from each Fund during fiscal period ended November 30, 2020:
Fund
|
Advisory Fee Rate
June 1, 2020 -
November 30, 2020
|
Amount Earned
|
Amount
Waived
by
Advisor
|
Expenses
Reimbursed
by Advisor
|
|
Adaptive Fundamental Growth Fund |
1.00% |
$ 271,837 | $ 97,943 | $ - | |
Adaptive Growth Opportunities Fund |
1.00% | 379,852 | 88,844 | - | |
Adaptive Hedged High Income Fund |
1.00% | 61,195 | 61,195 | 39,411 | |
Adaptive Hedged Income Fund |
1.00% | 235,668 | 105,230 | - | |
Adaptive Tactical Economic Fund |
1.00% | 68,732 | 68,732 | 31,069 | |
Adaptive Tactical Rotation Fund |
1.00% | 95,322 | 95,322 | 13,809 | |
The Advisor has engaged sub-advisors to provide day to day portfolio management for some of the Funds. Each sub-advisor is paid directly by the Advisor based upon the average daily net assets and calculated at an annual rate. See the table
below for the sub-advisory fee rates and amounts paid by the Advisor to the Sub-Advisor for each sub-advised Fund during the fiscal period ended November 30, 2020:
|
Sub-Advisors
|
Sub-Advisory
Fee Rate
|
Sub-Advisory
Fee Received
|
Adaptive Fundamental Growth Fund |
Navellier & Associates, Inc.* | 0.30% (on AUM over $20M) | $ - |
Adaptive Growth Opportunities Fund |
Bluestone Capital Management, LLC | 0.30% | 114,257 |
0.10% (on AUM over $10M) | |||
Adaptive Hedged Income Fund
|
Buckhead Capital Management, LLC**
|
and 0.32% (on AUM over $20M)
|
42,922 |
*As of June 2, 2020, Navellier and Associates, Inc. (“Navellier”) was no longer being compensated for managing the assets of the Adaptive Fundamental Growth Fund under the Sub-Advisor Agreement and ceased providing services under the
Sub-Advisory Agreement as of June 15, 2020. Adaptive Investments, LLC continues to serve as Advisor to the Fund and has taken over management of the Fund’s assets.
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
**As of September 30, 2020, Buckhead Capital Management, LLC no longer managed the assets of the Adaptive Hedged Income Fund. Adaptive Investments, LLC continues to serve as Advisor to the Fund and has taken over management of the Fund’s
assets.
Expense Limitation
The Advisor has entered into a contractual expense limitation agreement (the “Expense Limitation Agreement”) with the Trust, on behalf of the Funds, under which it has agreed to waive or reduce its fees and to assume other expenses of the Funds,
if necessary, in amounts that limit the Funds’ total operating expenses (exclusive of (i) any front-end or contingent deferred loads; (ii) brokerage fees and commissions, (iii) acquired fund fees and expenses; (iv) fees and expenses associated with
investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); (v) borrowing costs (such as interest and dividend expense on securities sold short); (vi) taxes; and (vii)
extraordinary expenses, such as litigation expenses (which may include indemnification of Fund officers and Trustees and contractual indemnification of Fund service providers (other than the Advisor)) to not more than the following percentages of
the average daily net assets of the Institutional Class Shares, Class C Shares, and Class A Shares of the Funds:
Fund
|
Institutional Class
Shares
|
Class C
Shares
|
Class A
Shares
|
||
Adaptive Fundamental Growth Fund
|
1.25%
|
2.25%
|
1.50%
|
||
Adaptive Growth Opportunities Fund
|
1.25%
|
2.25%
|
1.50%
|
||
Adaptive Hedged High Income Fund
|
1.25%
|
2.25%
|
1.50%
|
||
Adaptive Hedged Income Fund
|
1.25%
|
2.25%
|
1.50%
|
||
Adaptive Tactical Economic Fund
|
1.25%
|
2.25%
|
1.50%
|
||
Adaptive Tactical Rotation Fund
|
1.25%
|
2.25%
|
1.50%
|
Administrator
Each Fund pays a monthly fee to The Nottingham Company (the “Administrator”) based upon the average daily net assets of each Fund and calculated at the annual rates as shown in the schedule below subject to a minimum of $2,000 per month. The
Administrator also receives a fee as to procure and pay the Fund’s custodian, additional compensation for fund accounting and recordkeeping services, and additional compensation for certain costs involved with the daily valuation of securities and
as reimbursement for out-of-pocket expenses. The Administrator also receives a miscellaneous reporting expense for peer group, comparative analysis, and compliance support totaling $150 per month.
A breakdown of these fees is provided in the following table:
Administration Fees*
|
Custody Fees*
|
Fund
Accounting Fees
(base fee)
(monthly fee)
|
Fund
Accounting
Fees
(asset-based
fee)
|
Blue Sky
Administration
Fees (annual)
|
||
Average Net Assets
|
Annual
Rate
|
Average Net
Assets
|
Annual
Rate
|
|||
First $250 million
|
0.100%
|
First $200 million
|
0.020%
|
$2,250 plus
$500/additional
share class
|
0.01%
|
$150 per state
|
Next $250 million
|
0.080%
|
Over $200 million
|
0.009%
|
|||
Next $250 million
|
0.060%
|
|||||
Next $250 million
|
0.050%
|
*Minimum monthly fees of $2,000 and $417 for Administration and Custody, respectively.
|
||||
On the next $1 billion
|
0.040%
|
|||||
On all assets over $2 billion
|
0.035%
|
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
The Fund incurred the following amounts in Administration fees for the fiscal period ended November 30, 2020:
Fund
|
|||||
Adaptive Fundamental Growth Fund
|
$ 30,420
|
||||
Adaptive Growth Opportunities Fund
|
40,547
|
||||
Adaptive Hedged High Income Fund
|
14,567
|
||||
Adaptive Hedged Income Fund
|
26,129
|
||||
Adaptive Tactical Economic Fund
|
14,584
|
||||
Adaptive Tactical Rotation Fund
|
14,601
|
The Funds incurred the following amounts in Fund Accounting fees for the fiscal period ended November 30, 2020:
Fund
|
|||||
Adaptive Fundamental Growth Fund
|
$ 22,367
|
||||
Adaptive Growth Opportunities Fund
|
23,379
|
||||
Adaptive Hedged High Income Fund
|
17,265
|
||||
Adaptive Hedged Income Fund
|
19,010
|
||||
Adaptive Tactical Economic Fund
|
20,268
|
||||
Adaptive Tactical Rotation Fund
|
20,534
|
The Funds incurred the following amounts in Custody fees for the period ended November 30, 2020:
Fund
|
|||||
Adaptive Fundamental Growth Fund
|
$ 9,331
|
||||
Adaptive Growth Opportunities Fund
|
10,159
|
||||
Adaptive Hedged High Income Fund
|
3,753
|
||||
Adaptive Hedged Income Fund
|
10,386
|
||||
Adaptive Tactical Economic Fund
|
3,684
|
||||
Adaptive Tactical Rotation Fund
|
9,570
|
Compliance Services
The Nottingham Company, Inc. serves as the Trust’s compliance services provider including services as the Trust’s Chief Compliance Officer. The Nottingham Company, Inc. is entitled to receive customary fees from the Funds for its services
pursuant to the Compliance Services Agreement with the Funds.
Transfer Agent
Nottingham Shareholder Services, LLC (“Transfer Agent”), an affiliate of the Administrator, serves as transfer, dividend paying, and shareholder servicing agent for the Funds. For its services, the Transfer Agent is entitled to receive
compensation from the Funds pursuant to the Transfer Agent’s fee arrangements with the Funds.
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
The Funds incurred the following amounts in Transfer Agent fees for the fiscal period ended November 30, 2020:
Fund
|
|||||
Adaptive Fundamental Growth Fund
|
$ 25,335
|
||||
Adaptive Growth Opportunities Fund
|
30,895
|
||||
Adaptive Hedged High Income Fund
|
13,683
|
||||
Adaptive Hedged Income Fund
|
14,006
|
||||
Adaptive Tactical Economic Fund
|
18,696
|
||||
Adaptive Tactical Rotation Fund
|
18,513
|
The Shareholder Fulfillment Fees disclosed on the Statement of Operations for the Funds include fees paid by the Fund to a Sub-Transfer Agent for certain services.
Distributor
Capital Investment Group, Inc. (the “Distributor”) serves as the Funds’ principal underwriter and distributor. For its services, the Distributor is entitled to receive compensation from the Funds pursuant to the Funds’ fee arrangements with the
Distributor.
3.
|
Trustees and Officers
|
The Trust is governed by the Board of Trustees, which is responsible for the management and supervision of the Funds. The Trustees meet periodically throughout the year to review contractual agreements with companies that furnish services to
the Funds; review performance of the Advisor and the Funds; and oversee activities of the Funds. Officers of the Trust and Trustees who are interested persons of the Trust or the Advisor will receive no salary or fees from the Trust. Each Trustee
will receives $2,000 per series per year, $200 per meeting attended, and $500 per series per special meeting related to contract renewal issues. The Trust reimburses each Trustee and officer of the Trust for his or her travel and other expenses
related to attendance of Board meetings. Additional fees were incurred during the period as special meetings were necessary in addition to the regularly scheduled meetings of the Board of Trustees.
Certain officers of the Trust may also be officers of the Administrator.
4.
|
Distribution and Service Fees
|
The Board of Trustees, including a majority of the Independent Trustees, adopted a distribution and service plan pursuant to Rule 12b-1 of the 1940 Act (the “Plan”) for the Class C Shares and Class A Shares. The 1940 Act regulates the manner in
which a registered investment company may assume costs of distributing and promoting the sales of its shares and servicing of its shareholder accounts. The Plan provides that each Fund may incur certain costs, which may not exceed 1.00% per annum
of the average daily net assets of the Class C Shares and 0.25% per annum of the average daily net assets of the Class A Shares for each year elapsed subsequent to adoption of the Plan, for payment to the Distributor and others for items such as
advertising expenses, selling expenses, commissions, travel, or other expenses reasonably intended to result in sales of Class C Shares or Class A Shares or servicing of Class C or Class A shareholder accounts.
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
See the table below for the Distribution and Service Fees of the Class C Shares and Class A Shares for each Fund during the fiscal period ended November 30, 2020:
Fund
|
Amount Incurred
|
||||
Class C Shares
|
Class A Shares | ||||
Adaptive Fundamental Growth Fund
|
$ 12,987
|
$ 1,185 | |||
Adaptive Growth Opportunities Fund
|
7,559
|
1,357 | |||
Adaptive Hedged High Income Fund
|
2,618
|
- | |||
Adaptive Hedged Income Fund
|
21,187
|
- | |||
Adaptive Tactical Economic Fund
|
3,841
|
22 |
|||
Adaptive Tactical Rotation Fund
|
5,712
|
43 | |||
5.
|
Purchases and Sales of Investment Securities
|
For the fiscal period ended November 30, 2020, the aggregate cost of purchases and proceeds from sales of investment securities (excluding short-term securities) were as follows:
Purchases of
Securities
|
Proceeds from
Sales of Securities
|
||
Adaptive Fundamental Growth Fund
|
$ 65,639,797
|
$ 93,238,651
|
|
Adaptive Growth Opportunities Fund
|
46,179,115
|
37,887,360
|
|
Adaptive Hedged High Income Fund
|
9,090,151
|
16,638,330
|
|
Adaptive Hedged Income Fund
|
20,338,866
|
26,949,954
|
|
Adaptive Tactical Economic Fund
|
12,951,095
|
15,594,493
|
|
Adaptive Tactical Rotation Fund
|
26,678,988
|
28,240,326
|
|
There were no long-term purchases or sales of U.S. Government Obligations during the fiscal period ended November 30, 2020.
6.
|
Federal Income Tax
|
Distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP, and, therefore, may differ significantly in amount or character from net investment income and realized gains for financial reporting
purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character but are not adjusted for temporary differences.
Management has reviewed all taxable years / periods that are open for examination (i.e., not barred by the applicable statute of limitations) by taxing authorities of all major jurisdictions, including
the Internal Revenue Service. As of November 30, 2020, open taxable years consisted of the taxable years ended May 31, 2017 through May 31, 2020 and the fiscal period ended November 30, 2020. No examination of tax returns is currently in progress
for any of the Funds.
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
Distributions during the fiscal years ended below were characterized for tax purposes as follows:
Distributions from
|
|||
Fund
|
Fiscal year or
period ended
|
Ordinary Income
|
Long-Term
Capital Gains
|
Adaptive Fundamental Growth Fund
|
11/30/2020
|
$ -
|
$ -
|
05/31/2020
|
31,002
|
-
|
|
Adaptive Growth Opportunities Fund
|
11/30/2020
|
-
|
-
|
05/31/2020
|
1,837,000
|
-
|
|
Adaptive Hedged High Income Fund
|
11/30/2020
|
197,426
|
-
|
05/31/2020
|
722,934
|
-
|
|
Adaptive Hedged Income Fund
|
11/30/2020
|
539,197
|
-
|
05/31/2020
|
1,394,755
|
-
|
|
Adaptive Tactical Economic Fund
|
11/30/2020
|
-
|
-
|
05/31/2020
|
218,000
|
-
|
|
Adaptive Tactical Rotation Fund
|
11/30/2020
|
-
|
-
|
05/31/2020
|
931,000
|
-
|
|
At November 30, 2020, the tax-basis cost of investments and components of distributable earnings were as follows:
Adaptive
Fundamental
Growth Fund
|
Adaptive
Growth
Opportunities
Fund
|
Adaptive
Hedged High
Income Fund
|
|||
Cost of Investments
|
$44,777,921
|
$79,849,674
|
$ 8,096,069
|
||
Gross Unrealized Appreciation
|
10,062,757
|
18,687,479
|
527,515
|
||
Gross Unrealized Depreciation
|
(-)
|
(-)
|
(-)
|
||
Net Unrealized Appreciation
|
$10,062,757
|
$18,687,479
|
$ 527,515
|
||
Adaptive Hedged
Income Fund
|
Adaptive Tactical
Economic Fund
|
Adaptive
Tactical Rotation
Fund
|
||
Cost of Investments
|
$47,196,733
|
$9,959,951
|
$15,873,004
|
|
Gross Unrealized Appreciation
|
276,257
|
1,124,412
|
1,414,056
|
|
Gross Unrealized Depreciation
|
(1,000,608)
|
(-)
|
(-)
|
|
Net Unrealized Appreciation/Depreciation
|
$ (724,351)
|
$1,124,412
|
$ 1,414,056
|
|
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
7. Concentration of Risk
The Adaptive Hedged High Income Fund currently invests a significant portion of its assets in the Goldman Sachs Access High Yield Corporate Bond ETF (“Goldman”). The Adaptive Hedged High Income Fund may redeem its investment from Goldman at any
time if the Advisor determines that it is in the best interest of the Adaptive Hedged High Income Fund and its shareholders to do so. The performance of the Adaptive Hedged High Income Fund may be directly affected by the performance of Goldman.
The financial statements of Goldman, including the portfolio of investments, can be found at Goldman’s website, www.gsam.com, or the Securities and Exchange Commission’s website, www.sec.gov, and should be read in conjunction with the
Adaptive Hedged High Income’s financial statements. As of November 30, 2020, the Adaptive Hedged Income Fund’s net assets invested in Goldman were 71.54%.
8. Beneficial Ownership
The beneficial ownership, either directly or indirectly, of 25% or more of the voting securities of a fund creates a presumption of control of a fund, under Section 2(a)(9) of the Investment Company Act of 1940.
As of November 30, 2020, Charles Schwab & Co. held 27.94% of the Adaptive Hedged Income Fund.
As of November 30, 2020, LPL Financial held 46.50% of the Adaptive Fundamental Growth Fund, 34.76% of the Adaptive Growth Opportunities Fund, 34.52% of the Adaptive Tactical Economic Fund, and 35.24% of the Adaptive Tactical Rotation Fund.
As of November 30, 2020, Pershing LLC held 31.29% of the Adaptive Hedged High Income Fund, 29.57% of the Adaptive Tactical Economic Fund, and 25.15% of the Adaptive Tactical Rotation Fund.
The Funds have no knowledge as to whether all or any portion of the shares of record owned by Pershing LLC, Charles Schwab & Co., and LPL Financial are also owned beneficially.
9. Commitments and Contingencies
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Trust entered into
contracts with its service providers, on behalf of the Funds, and others that provide for general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the
Funds. The Funds expect the risk of loss to be remote.
10. Borrowings
The Funds established a borrowing agreement with Interactive Brokers, LLC for investment purposes subject to the limitations of the 1940 Act for borrowings by registered investment companies. Interest expense in the Funds relates to the
negative daily cash balance held at Interactive Brokers, LLC. The Adaptive Fundamental Growth Fund, Adaptive Growth Opportunities Fund, and Adaptive Tactical Rotation Fund each had negative daily cash balances at Interactive Brokers, LLC during the
fiscal period ended November 30, 2020. The interest expense that accrued is reflected on the Statement of Operations for each Fund and is deemed immaterial based on the average net assets of each Fund.
11. Reorganization
Adaptive Growth Opportunities Fund
At meetings held on September 24, 2020 and October 8, 2020 and through a written consent in lieu of a meeting dated October 23, 2020, the Board of Trustees of the Starboard Investment Trust (the “Board”) approved the reorganization of the
Adaptive Growth Opportunities Fund (the “Mutual Fund”) into an exchange-traded fund (the “Reorganization”). The Reorganization will occur pursuant to an Agreement and Plan of Reorganization, whereby the Mutual Fund will transfer all of its assets
and liabilities to the Adaptive Growth Opportunities ETF (the “ETF”), a newly organized series of the Starboard Investment Trust in a tax-free reorganization. The investment objective, principal investment strategies, and portfolio management will
remain the same after the Reorganization. A Combined Information Statement and Prospectus containing information on the ETF, reasons for the proposed Reorganization and benefits to the Mutual Fund’s shareholders will be mailed before the
consummation of the Reorganization to shareholders of the Mutual Fund.
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
12. Subsequent Events
Distributions
Per share distributions during the subsequent period were as follows:
Fund
|
Class
|
Record Date
|
Ex-
Date/Payable
Date |
Ordinary
Income
|
Long-Term Capital Gain
|
Adaptive
Fundamental
Growth Fund
|
Institutional
Class
|
12/16/2020
|
12/17/2020
|
$0.175149
|
$ -
|
Class C
|
12/16/2020
|
12/17/2020
|
$0.175149
|
$ -
|
|
Class A
|
12/16/2020
|
12/17/2020
|
$0.175149
|
$ -
|
|
Adaptive
Fundamental
Growth Fund
|
Institutional
Class
|
12/16/2020
|
12/17/2020
|
$ -
|
$1.246849
|
Class C
|
12/16/2020
|
12/17/2020
|
$ -
|
$1.246849
|
|
Class A
|
12/16/2020
|
12/17/2020
|
$ -
|
$1.246849
|
Fund
|
Class
|
Record
Date
|
Ex-
Date/Payable
Date
|
Ordinary
Income
|
Long-Term Capital Gain
|
Adaptive Growth
Opportunities Fund
|
Institutional
Class
|
12/29/2020
|
12/30/2020
|
$0.021617
|
$ -
|
Class C
|
12/29/2020
|
12/30/2020
|
$ -
|
$ -
|
|
Class A
|
12/29/2020
|
12/30/2020
|
$0.014476
|
$ -
|
|
Adaptive Hedged
High Income Fund
|
Institutional
Class
|
12/29/2020
|
12/30/2020
|
$0.058810
|
$ -
|
Class C
|
12/29/2020
|
12/30/2020
|
$0.048552
|
$ -
|
|
Adaptive Hedged
Income Fund
|
Institutional
Class
|
12/29/2020
|
12/30/2020
|
$0.059729
|
$ -
|
Class C
|
12/29/2020
|
12/30/2020
|
$0.050013
|
$ -
|
|
Adaptive Tactical
Rotation Fund
|
Institutional
Class
|
12/29/2020
|
12/30/2020
|
$0.127106
|
$ -
|
Class C
|
12/29/2020
|
12/30/2020
|
$ -
|
$ -
|
|
Class A
|
12/29/2020
|
12/30/2020
|
$0.085950
|
$ -
|
|
(Continued) |
Adaptive Funds |
Notes to Financial Statements |
(Unaudited) |
As of November 30, 2020 |
Management is currently evaluating the impact of the COVID-19 virus on the financial services industry and has concluded that, while it is reasonably possible that the virus could have a negative effect on the fair value of the Funds’
investments and results of operations, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
In accordance with GAAP, management has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date of issuance of these financial statements. Management has concluded there are no additional matters,
other than those noted above, requiring recognition or disclosure.
Adaptive Funds |
Additional Information |
(Unaudited) |
As of November 30, 2020 |
1.
|
Proxy Voting Policies and Voting Record
|
A copy of the Advisor’s Disclosure Policy is included as Appendix B to the Fund’s Statement of Additional Information and is available, without charge, upon request, by calling 800-773-3863, and on the website of the Securities and Exchange
Commission (“SEC”) at http://www.sec.gov. Information regarding how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, is available (1) without charge, upon request, by calling the
Funds at the number above and (2) on the SEC’s website at http://www.sec.gov.
2.
|
Quarterly Portfolio Holdings
|
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Each Fund’s Form N-PORT is available on the SEC’s website at http://www.sec.gov. You may also
obtain copies without charge, upon request, by calling the Fund at 800-773-3863.
3.
|
Tax Information
|
We are required to advise you within 60 days of each Fund’s fiscal period end regarding the federal tax status of certain distributions received by shareholders during each fiscal period.
Each of the funds listed below had the following distribution information for the fiscal period ended November 30, 2020.
Ordinary Income
|
Long-Term Capital Gains
|
|
Adaptive Fundamental Growth Fund
|
$ -
|
$ -
|
Adaptive Growth Opportunities Fund
|
-
|
-
|
Adaptive Hedged High Income Fund
|
197,426
|
-
|
Adaptive Hedged Income Fund
|
539,197
|
-
|
Adaptive Tactical Economic Fund
|
-
|
-
|
Adaptive Tactical Rotation Fund
|
-
|
-
|
Dividend and distributions received by retirement plans such as IRAs, Keogh-type plans, and 403(b) plans need not be reported as taxable income. However, many retirement plans may need this information for their annual information meeting.
4. Schedule of Shareholder Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including contingent deferred sales charges; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund
expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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 June 1, 2020 through November 30, 2020.
Actual Expenses – The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested,
to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (e.g., an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled
“Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
|
(Continued) |
Adaptive Funds |
Additional Information |
(Unaudited) |
As of November 30, 2020 |
Hypothetical Example for Comparison Purposes – The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio
and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the Fund 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees.
Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have
been higher.
Adaptive Fundamental Growth Fund
|
Beginning
Account Value
June 1, 2020
|
Ending
Account Value
November 30,
2020
|
Expenses
Paid
During
Period*
|
Annualized
Expense
Ratio*
|
Institutional Class Shares
|
||||
Actual
|
$1,000.00
|
$1,203.80 | $6.91 |
1.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,018.80 | $6.33 |
1.25%
|
Class C Shares
|
||||
Actual
|
$1,000.00
|
$1,197.50 | $12.39 |
2.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,013.79 | $11.36 |
2.25%
|
Class A Shares | ||||
Actual | $1,000.00 | $1,202.20 | $8.28 | 1.50% |
Hypothetical (5% annual return before expenses) | $1,000.00 | $1,017.55 | $7.59 | 1.50% |
Adaptive Growth Opportunities Fund
|
Beginning
Account Value
June 1, 2020
|
Ending
Account Value
November 30,
2020
|
Expenses
Paid
During
Period*
|
Annualized
Expense
Ratio*
|
Institutional Class Shares
|
||||
Actual
|
$1,000.00
|
$1,257.90 | $7.08 |
1.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,018.80 | $6.33 |
1.25%
|
Class C Shares
|
||||
Actual
|
$1,000.00
|
$1,251.60 | $12.70 |
2.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,013.79 | $11.36 |
2.25%
|
Class A Shares | ||||
Actual | $1,000.00 | $1,256.50 | $8.49 | 1.50% |
Hypothetical (5% annual return before expenses) | $1,000.00 | $1,017.55 | $7.59 | 1.50% |
Adaptive Hedged High Income Fund
|
Beginning
Account Value
June 1, 2020
|
Ending
Account Value
November 30,
2020
|
Expenses
Paid
During
Period*
|
Annualized
Expense
Ratio*
|
Institutional Class Shares
|
||||
Actual
|
$1,000.00
|
$1,060.60
|
$6.46
|
1.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,018.80
|
$6.33
|
1.25%
|
Class C Shares
|
||||
Actual
|
$1,000.00
|
$1,054.40
|
$11.59
|
2.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,013.79
|
$11.36
|
2.25%
|
|
(Continued) |
Adaptive Funds |
Additional Information |
(Unaudited) |
As of November 30, 2020 |
Adaptive Hedged Income Fund
|
Beginning
Account Value
June 1, 2020
|
Ending
Account Value
November 30,
2020
|
Expenses
Paid
During
Period*
|
Annualized
Expense
Ratio*
|
Institutional Class Shares
|
||||
Actual
|
$1,000.00
|
$1,020.30
|
$6.33
|
1.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,018.80
|
$6.33
|
1.25%
|
Class C Shares
|
||||
Actual
|
$1,000.00
|
$1,014.20
|
$11.36
|
2.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,013.79
|
$11.36
|
2.25%
|
Adaptive Tactical Economic Fund
|
Beginning
Account Value
June 1, 2020
|
Ending
Account Value
November 30,
2020
|
Expenses
Paid
During
Period*
|
Annualized
Expense
Ratio*
|
Institutional Class Shares
|
||||
Actual
|
$1,000.00
|
$1,112.70 | $6.62 |
1.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,018.80 | $6.33 |
1.25%
|
Class C Shares
|
||||
Actual
|
$1,000.00
|
$1,107.00 |
$11.88
|
2.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,013.79 | $11.36 |
2.25%
|
Class A Shares | ||||
Actual | $1,000.00 | $1,111.10 | $7.94 | 1.50% |
Hypothetical (5% annual return before expenses) | $1,000.00 | $1,017.55 | $7.59 | 1.50% |
Adaptive Tactical Rotation Fund
|
Beginning
Account Value
June 1, 2020
|
Ending
Account Value
November 30,
2020
|
Expenses
Paid
During
Period*
|
Annualized
Expense
Ratio*
|
Institutional Class Shares
|
||||
Actual
|
$1,000.00
|
$1,140.50 | $6.71 |
1.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,018.80 | $6.33 |
1.25%
|
Class C Shares
|
||||
Actual
|
$1,000.00
|
$1,134.10 | $12.04 |
2.25%
|
Hypothetical (5% annual return before expenses)
|
$1,000.00
|
$1,013.79 | $11.36 |
2.25%
|
Class A Shares | ||||
Actual | $1,000.00 | $1,137.90 | $8.04 | 1.50% |
Hypothetical (5% annual return before expenses) | $1,000.00 | $1,017.55 | $7.59 | 1.50% |
*Expenses are equal to the average account value over the period multiplied by each Fund’s annualized expense ratio, multiplied by the number of days in the most recent period divided by the number of days in the fiscal year (to reflect the
six month period).
The Adaptive Funds
are a series of
The Starboard Investment Trust
For Shareholder Service Inquiries: |
For Investment Advisor Inquiries:
|
Nottingham Shareholder Services |
Adaptive Investments, LLC
|
116 South Franklin Street |
12600 Deerfield Parkway
|
Post Office Box 69
Rocky Mount, North Carolina 27802-0069
|
Suite #100
Alpharetta, GA 30004
|
Telephone: |
Telephone:
|
800-773-3863 |
770-777-8277
|
World Wide Web @:
ncfunds.com
|
World Wide Web @:
adaptivefunds.com
|
ITEM 2. |
CODE OF ETHICS. |
Not applicable.
ITEM 3. |
AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
ITEM 4. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
ITEM 5. |
AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. |
SCHEDULE OF INVESTMENTS. |
A copy of Schedule I - Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1
of this Form.
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 SECURITYHOLDERS. |
None.
ITEM 11. |
CONTROLS AND PROCEDURES. |
(a) |
The President and Principal Executive Officer and the Treasurer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940)
are effective based on their evaluation of these disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934, as of a date within 90 days
of the filing of this report.
|
(b) |
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) 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 MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. |
EXHIBITS. |
(a)(1) |
Not applicable.
|
(a)(2) |
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 are filed herewith.
|
(a)(3) |
Not applicable.
|
(a)(4) |
Not applicable.
|
(b) |
Certifications pursuant to Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act of 2002 are filed 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.
Starboard Investment Trust
|
||
/s/ Katherine M. Honey | ||
By:
|
Katherine M. Honey
President and Principal Executive Officer
|
|
Date:
|
February 8, 2021
|
|
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.
/s/ Katherine M. Honey |
||
By:
|
Katherine M. Honey
President and Principal Executive Officer
|
|
Date:
|
February 8, 2021
|
|
/s/ Ashley H. Lanham |
||
By:
|
Ashley H. Lanham
Treasurer, Principal Financial Officer, Principal Accounting Officer
|
|
Date:
|
February 8, 2021
|
Exhibit 13(a)(2)
CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Katherine M. Honey, certify that:
1. |
I have reviewed this report on Form N-CSR of the Adaptive Hedged Income Fund, Adaptive Fundamental Growth Fund, Adaptive Growth Opportunities Fund, Adaptive Hedged High Income Fund, Adaptive Tactical Economic Fund, and Adaptive Tactical
Rotation Fund, each a series of the Starboard Investment Trust.
|
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(s) 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 second fiscal quarter of 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(s) 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.
|
By:
|
/s/ Katherine M. Honey |
|
Katherine M. Honey
President and Principal Executive Officer
|
||
Date:
|
February 8, 2021
|
Exhibit 13(a)(2)
CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Ashley H. Lanham, certify that:
1. |
I have reviewed this report on Form N-CSR of the Adaptive Hedged Income Fund, Adaptive Fundamental Growth Fund, Adaptive Growth Opportunities Fund, Adaptive Hedged High Income Fund, Adaptive Tactical Economic Fund, and Adaptive Tactical
Rotation Fund, each a series of the Starboard Investment Trust.
|
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(s) 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 second fiscal quarter of 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(s) 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.
|
By:
|
/s/ Ashley H. Lanham |
|
Ashley H. Lanham
Treasurer, Principal Financial Officer, and Principal Accounting Officer
|
||
Date:
|
February 8, 2021
|
Exhibit 13(b)
CERTIFICATION
PURSUANT TO RULE 30A-2(B) UNDER THE INVESTMENT COMPANY ACT OF 1940 AND SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the semi-annual report of the Adaptive Hedged Income Fund, Adaptive Fundamental Growth Fund, Adaptive Growth Opportunities Fund, Adaptive Hedged High Income Fund, Adaptive Tactical
Economic Fund, and Adaptive Tactical Rotation Fund (the “Funds”), each a series of the Starboard Investment Trust on Form N-CSR for the period ended November 30, 2020, as filed with the Securities and Exchange Commission (the “Report”), the
undersigned, Katherine M. Honey, President and Principal Executive Officer of the Funds, does hereby certify, to her knowledge, that:
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Funds.
|
By:
|
/s/ Katherine M. Honey | |
Katherine M. Honey
President and Principal Executive Officer
|
||
Date:
|
February 8, 2021
|
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