Contravisory Strategic Equity Fund
|
STATEMENTS OF CHANGES IN NET ASSETS
(Continued)
|
|
(a)
|
Summary of capital share transactions is as follows:
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
|
December 31, 2013
|
|
|
December 31, 2012
|
|
|
Investor Class
|
|
Shares
|
|
|
Value
|
|
|
Shares
|
|
|
Value
|
|
|
Shares sold
|
|
|
124,935
|
|
|
$
|
1,480,123
|
|
|
|
133,308
|
|
|
$
|
1,232,308
|
|
|
Shares issued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in reinvestment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of distributions
|
|
|
7,239
|
|
|
|
88,394
|
|
|
|
1,930
|
|
|
|
18,895
|
|
|
Shares redeemed (b)
|
|
|
(42,036
|
)
|
|
|
(470,794
|
)
|
|
|
(32,977
|
)
|
|
|
(303,258
|
)
|
|
Net increase
|
|
|
90,138
|
|
|
$
|
1,097,723
|
|
|
|
102,261
|
|
|
$
|
947,945
|
|
|
(b)
|
Net of redemption fees of $24 and $2,114, respectively.
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
Institutional Class
|
|
Shares
|
|
|
Value
|
|
|
Shares
|
|
|
Value
|
|
|
Shares sold
|
|
|
154,252
|
|
|
$
|
1,733,709
|
|
|
|
135,158
|
|
|
$
|
1,269,072
|
|
|
Shares issued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in reinvestment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of distributions
|
|
|
18,451
|
|
|
|
225,287
|
|
|
|
6,093
|
|
|
|
59,595
|
|
|
Shares redeemed (c)
|
|
|
(32,173
|
)
|
|
|
(366,491
|
)
|
|
|
(23,769
|
)
|
|
|
(227,964
|
)
|
|
Net increase
|
|
|
140,530
|
|
|
$
|
1,592,505
|
|
|
|
117,482
|
|
|
$
|
1,100,703
|
|
|
(c)
|
Net of redemption fees of $0 and $0, respectively.
|
The accompanying notes are an integral part of these financial statements.
Contravisory Strategic Equity Fund
|
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the year/period
|
|
|
|
|
|
|
|
|
|
Period Ended
|
|
|
|
|
Year Ended December 31,
|
|
|
December 31,
|
|
|
Investor Class
|
|
2013
|
|
|
2012
|
|
|
2011
±
|
|
|
Net asset value at
|
|
|
|
|
|
|
|
|
|
|
beginning of year/period
|
|
$
|
9.77
|
|
|
$
|
8.68
|
|
|
$
|
10.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM INVESTMENT OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income^
|
|
0.00
|
~
|
|
|
0.10
|
|
|
0.00
|
~
|
|
Net realized and unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gain (loss) on investments
|
|
|
2.86
|
|
|
|
1.07
|
|
|
|
(1.32
|
)
|
|
Total from investment operations
|
|
|
2.86
|
|
|
|
1.17
|
|
|
|
(1.32
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS DISTRIBUTIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.01
|
)
|
|
|
(0.09
|
)
|
|
0.00
|
~
|
|
From net realized gain
|
|
|
(0.30
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Total distributions
|
|
|
(0.31
|
)
|
|
|
(0.09
|
)
|
|
0.00
|
~
|
|
Paid-in capital from redemption fees
|
|
0.00
|
~
|
|
|
0.01
|
|
|
0.00
|
~
|
|
Net asset value, end of year/period
|
|
$
|
12.32
|
|
|
$
|
9.77
|
|
|
$
|
8.68
|
|
|
Total Return
|
|
|
29.31
|
%
|
|
|
13.62
|
%
|
|
|
(13.15
|
)%
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RATIOS/SUPPLEMENTAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year/period (millions)
|
|
$
|
3.7
|
|
|
$
|
2.1
|
|
|
$
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RATIO OF EXPENSES TO AVERAGE NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before fees waived and expenses absorbed
|
|
|
3.54
|
%
|
|
|
5.44
|
%
|
|
|
12.74
|
%
2
|
|
After fees waived and expenses absorbed
|
|
|
1.28
|
%*
|
|
|
1.50
|
%
|
|
|
1.50
|
%
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before fees waived and expenses absorbed
|
|
|
(2.23
|
)%
|
|
|
(2.86
|
)%
|
|
|
(11.24
|
)%
2
|
|
After fees waived and expenses absorbed
|
|
|
0.03
|
%
|
|
|
1.09
|
%
|
|
|
0.00
|
%
2
|
|
Portfolio turnover rate
|
|
|
64
|
%
|
|
|
68
|
%
|
|
|
56
|
%
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
±
|
Commenced operations on June 30, 2011. The information presented is for the period from June 30, 2011 to December 31, 2011.
|
|
|
^
|
Calculated using the average shares outstanding method.
|
|
|
~
|
Amount is less than $0.005 per share.
|
|
|
*
|
Effective April 30, 2013, Contravisory Investment Management, Inc. (the “Advisor”) has contractually agreed to reduce the Fund’s fees from 1.5% to 1.25% for Investor Class.
|
The accompanying notes are an integral part of these financial statements.
Contravisory Strategic Equity Fund
|
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the year/period
|
|
|
|
|
|
|
|
|
|
Period Ended
|
|
|
|
|
Year Ended December 31,
|
|
|
December 31,
|
|
|
Institutional Class
|
|
2013
|
|
|
2012
|
|
|
2011
±
|
|
|
Net asset value at
|
|
|
|
|
|
|
|
|
|
|
beginning of year/period
|
|
$
|
9.76
|
|
|
$
|
8.68
|
|
|
$
|
10.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM INVESTMENT OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income^
|
|
|
0.03
|
|
|
|
0.13
|
|
|
|
0.01
|
|
|
Net realized and unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gain (loss) on investments
|
|
|
2.87
|
|
|
|
1.06
|
|
|
|
(1.32
|
)
|
|
Total from investment operations
|
|
|
2.90
|
|
|
|
1.19
|
|
|
|
(1.31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS DISTRIBUTIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.03
|
)
|
|
|
(0.11
|
)
|
|
|
(0.01
|
)
|
|
From net realized gain
|
|
|
(0.30
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Total distributions
|
|
|
(0.33
|
)
|
|
|
(0.11
|
)
|
|
|
(0.01
|
)
|
|
Paid-in capital from redemption fees
|
|
|
—
|
|
|
|
—
|
|
|
0.00
|
~
|
|
Net asset value, end of year/period
|
|
$
|
12.33
|
|
|
$
|
9.76
|
|
|
$
|
8.68
|
|
|
Total Return
|
|
|
29.76
|
%
|
|
|
13.70
|
%
|
|
|
(13.09
|
)%
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RATIOS/SUPPLEMENTAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year/period (millions)
|
|
$
|
8.6
|
|
|
$
|
5.5
|
|
|
$
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RATIO OF EXPENSES TO AVERAGE NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before fees waived and expenses absorbed
|
|
|
3.29
|
%
|
|
|
5.19
|
%
|
|
|
12.49
|
%
2
|
|
After fees waived and expenses absorbed
|
|
|
1.03
|
%*
|
|
|
1.25
|
%
|
|
|
1.25
|
%
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before fees waived and expenses absorbed
|
|
|
(1.98
|
)%
|
|
|
(2.61
|
)%
|
|
|
(10.99
|
)%
2
|
|
After fees waived and expenses absorbed
|
|
|
0.28
|
%
|
|
|
1.34
|
%
|
|
|
0.25
|
%
2
|
|
Portfolio turnover rate
|
|
|
64
|
%
|
|
|
68
|
%
|
|
|
56
|
%
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
±
|
Commenced operations on June 30, 2011. The information presented is for the period from June 30, 2011 to December 31, 2011.
|
|
^
|
C
alculated using the average shares outstanding method.
|
|
|
~
|
Amount is less than $0.005 per share.
|
|
|
*
|
Effective April 30, 2013, Contravisory Investment Management, Inc. (the “Advisor”) has contractually agreed to reduce the Fund’s fees from 1.25% to 1.00% for Institutional Class.
|
The accompanying notes are an integral part of these financial statements.
Contravisory Strategic Equity Fund
|
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
|
The Contravisory Strategic Equity Fund (the “Fund”) is a diversified series of shares of beneficial interest of Professionally Managed Portfolios (the “Trust”), which is registered under the Investment Company Act of 1940 (the “1940 Act”) as an open-end management investment company. The Fund commenced operations on June 30, 2011.
The Fund offers Institutional and Investor Class shares. Each class of shares has equal rights as to earnings and assets except that Investor Class shares bear distribution expenses. Each class of shares has exclusive voting rights with respect to matters that affect just that class. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
The investment objective of the Fund is to seek long-term capital appreciation.
|
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
|
The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
|
|
A.
|
Security Valuation.
All equity securities that are traded on a national securities exchange, except those listed on the NASDAQ Global Market
®
(“NASDAQ”), are valued at the last reported sale price on the exchange on which the security is principally traded. Securities traded on NASDAQ will be valued at the NASDAQ Official Closing Price (“NOCP”). If, on a particular day, an exchange-traded or NASDAQ security does not trade, then the mean between the most recent quoted bid and asked prices will be used. All equity securities that are not traded on a listed exchange are valued at the last sale price in the over-the-counter market. If a non-exchange traded security does not trade on a particular day, then the mean between the last quoted closing bid and asked price will be used.
|
Securities for which quotations are not readily available are valued at their respective fair values as determined in good faith by the Board of Trustees. When a security is “fair valued,” consideration is given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the pricing procedures adopted by
Contravisory Strategic Equity Fund
|
NOTES TO FINANCIAL STATEMENTS
December 31, 2013 (Continued)
|
the Fund’s Board of Trustees. The use of fair value pricing by the Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated without regard to such considerations.
The Fund has adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:
|
|
Level 1 –
|
Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
|
|
|
|
|
|
|
Level 2 –
|
Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
|
|
|
|
|
|
|
Level 3 –
|
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
|
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Contravisory Strategic Equity Fund
|
NOTES TO FINANCIAL STATEMENTS
December 31, 2013 (Continued)
|
The Fund records transfers between levels at the end of each reporting period. The Fund did not invest in any Level 3 securities or have transfers into or out of Level 1 or Level 2 securities during the year. The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2013:
|
Description
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Common Stocks^
|
|
$
|
12,287,958
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,287,958
|
|
|
Short-Term Investments
|
|
|
58,223
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58,223
|
|
|
Total Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in Securities
|
|
$
|
12,346,181
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,346,181
|
|
^ See Schedule of Investments for industry breakouts.
|
|
B.
|
Foreign Currency.
Foreign currency amounts, other than the cost of investments, are translated into U.S. dollar values based upon the spot exchange rate prior to the close of regular trading. The cost of investments is translated at the rates of exchange prevailing on the dates the portfolio securities were acquired. The Fund includes foreign exchange gains and losses from dividends receivable and other foreign currency denominated payables and receivables in realized and unrealized gain (loss) on investments and foreign currency. The Fund does not isolate that portion of realized and unrealized gain (loss) on investments resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in the market price of securities for financial reporting purposes. Fluctuations in foreign exchange rates on investments are thus included with net realized and unrealized gain (loss) on investments and foreign currency.
|
|
|
C.
|
Federal Income Taxes.
The Fund has elected to be taxed as a “regulated investment company” and intends to distribute substantially all taxable income to its shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Therefore, no provision for federal income taxes or excise taxes has been made.
|
In order to avoid imposition of the excise tax applicable to regulated investment companies, the Fund intends to declare each year as dividends in each calendar year at least 98.0% of its net investment income (earned during the calendar year) and at least 98.2% of its net
Contravisory Strategic Equity Fund
|
NOTES TO FINANCIAL STATEMENTS
December 31, 2013 (Continued)
|
realized capital gains (earned during the twelve months ended October 31) plus undistributed amounts, if any, from prior years.
Net capital losses incurred after October 31, within the taxable year are deemed to arise on the first business day of the Fund’s next taxable year. At December 31, 2013, the Fund deferred, on a tax-basis, post-October losses of $39,691. At December 31, 2013, the Fund did not have any short-term or long-term capital loss carry-forwards.
The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities.
Management has analyzed the Fund’s tax position, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain income tax positions taken on returns filed for the open tax year 2011-2012 or expected to be taken on the Fund’s tax return for the fiscal year ended 2013. The Fund identifies its major tax jurisdictions as U.S. Federal and the State of Massachusetts; however the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
|
|
D.
|
Security Transactions and Investment Income.
Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales of securities are determined on a specific identification basis. Discounts/premiums on debt securities purchased are accreted/amortized over the life of the respective securities using the effective interest method. Dividend income is recorded on the ex-dividend date. Interest income is recorded on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.
|
|
|
E.
|
Distributions to Shareholders.
Distributions to shareholders from net investment income and net realized gains on securities for the Fund normally are declared and paid on an annual basis. Distributions are recorded on the ex-dividend date.
|
|
|
F.
|
Use of Estimates.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported
|
Contravisory Strategic Equity Fund
|
NOTES TO FINANCIAL STATEMENTS
December 31, 2013 (Continued)
|
amounts of revenues and expenses during the period. Actual results could differ from those estimates.
|
|
G.
|
Share Valuation.
The net asset value (“NAV”) per share of the Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash and other assets, minus all liabilities by the total number of shares outstanding for the Fund, rounded to the nearest cent. The Fund’s shares will not be priced on the days on which the NYSE is closed for trading. The offering and redemption price per share for the Fund is equal to the Fund’s net asset value per share. The Fund charges a 2.00% redemption fee on shares held less than 60 days. These fees are deducted from the redemption proceeds otherwise payable to the shareholder. The Fund will retain the fee charged as paid-in capital and such fees become part of that Fund’s daily NAV calculation.
|
|
|
H.
|
Guarantees and Indemnifications.
In the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
|
|
|
I.
|
Reclassification of Capital Accounts.
U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the fiscal year ended December 31, 2013, the following adjustments were made:
|
|
|
Undistributed Net
|
|
|
|
|
Investment
|
Accumulated
|
Paid-in
|
|
|
Income/(Loss)
|
Gains/(Losses)
|
Capital
|
|
Contravisory Strategic
|
|
|
|
|
Equity Fund
|
$24
|
$(24)
|
$—
|
|
|
J.
|
Subsequent Events.
In preparing these financial statements, Management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or transactions that occurred after the period that materially impacted the amounts or disclosures in the Fund’s financial statements.
|
Contravisory Strategic Equity Fund
|
NOTES TO FINANCIAL STATEMENTS
December 31, 2013 (Continued)
|
|
NOTE 3 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
|
Contravisory Investment Management, Inc. (the “Advisor”) provides the Contravisory Strategic Equity Fund with investment management services under an Investment Advisory Agreement (the “Agreement”). Under the agreement, the Advisor furnishes all investment advice, office space, certain administrative services, and most of the personnel needed by the Fund. As compensation for its services, the Advisor is entitled to a monthly fee at the annual rate of 0.80% of the Fund’s average daily net assets. Effective April 30, 2013, the Advisor reduced its fee from 1.00% of average daily net assets to 0.80%. For the period ended December 31, 2013, the Fund incurred $82,758 in advisory fees.
Effective April 30, 2013, the Advisor has contractually agreed to limit expenses for the Fund by reducing all or a portion of its fees and reimbursing Fund expenses so that its ratio of expenses to average net assets will not exceed 1.00% for the Institutional Class and 1.25% for the Investor Class. Previously, the expense caps were 1.25% and 1.50%, respectively. The contract’s term is indefinite and may be terminated only by the Board of Trustees. The Advisor is permitted to seek reimbursement from the Fund, subject to limitations, for fees waived and/or Fund expenses it pays over the following three years after such payment. For the year ended December 31, 2013, the Advisor waived $218,869 in fees for the Fund. At December 31, 2013, the cumulative unreimbursed amount waived by the Advisor on behalf of the Fund was $616,917. The Advisor may recoup portions of this amount no later than the dates below:
|
December 31, 2014
|
$145,935
|
|
December 31, 2015
|
$252,113
|
|
December 31, 2016
|
$218,869
|
U.S. Bancorp Fund Services, LLC (the “USBFS”), an indirect wholly-owned subsidiary of U.S. Bancorp, serves as the Fund’s Administrator (the “Administrator”) and, in that capacity, performs various administrative and accounting services for the Fund. USBFS also serves as the Fund’s fund accountant, transfer agent, dividend disbursing agent and registrar. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund; prepares reports and materials to be supplied to the trustees; monitors the activities of the Fund’s custodian, transfer agent and accountants; coordinates the preparation and payment of Fund expenses and reviews the Fund’s expense accruals. For the year ended December 31, 2013, the Fund incurred administration and accounting fees of $98,171. The
Contravisory Strategic Equity Fund
|
NOTES TO FINANCIAL STATEMENTS
December 31, 2013 (Continued)
|
Officers of the Trust are employees of the Administrator. The Chief Compliance Officer is also an employee of the Administrator. For the year ended December 31, 2013, the Fund was allocated $10,129 of the Trust’s Chief Compliance Officer fees.
Quasar Distributors, LLC (the “Distributor”) acts as the Fund’s principal underwriter in a continuous public offering of the Fund’s shares. U.S. Bank, N.A. serves as custodian (the “Custodian”) to the Fund. Both the Distributor and Custodian are affiliates of the Administrator.
The Fund has adopted at 12b-1 Distribution Plan (the “12b-1 Plan”) in accordance with Rule 12b-1 under the 1940 Act. The 12b-1 Plan provides that the Fund’s Investor Class shares may pay a fee to the Distributor of up to 0.25% of the average daily net assets of the Investor Class to reimburse the Distributor for a portion of the costs incurred in distributing the Fund’s Investor Class shares. For the year ended December 31, 2013, the Fund’s Investor Class shares incurred $6,470 in 12b-1 fees.
|
NOTE 4 – PURCHASES AND SALES OF SECURITIES
|
The cost of purchases and proceeds from the sales of securities, excluding short-term investments, for the year ended December 31, 2013, were $6,076,873 and $8,662,441, respectively.
There were no purchases or sales of long-term U.S. Government securities for the year ended December 31, 2013.
|
NOTE 5 – DISTRIBUTIONS TO SHAREHOLDERS
|
The tax character of distributions paid during the periods ended December 31, 2013 and December 31, 2012 was as follows:
|
|
|
2013
|
|
|
2012
|
|
|
Distributions paid from:
|
|
|
|
|
|
|
|
Ordinary income
|
|
$
|
21,205
|
|
|
$
|
79,069
|
|
|
Long-term capital gain*
|
|
$
|
296,744
|
|
|
$
|
—
|
|
|
*
|
Designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3).
|
Contravisory Strategic Equity Fund
|
NOTES TO FINANCIAL STATEMENTS
December 31, 2013 (Continued)
|
As of December 31, 2013, the components of distributable earnings on a tax basis were as follows:
|
Cost of Investments
|
|
$
|
9,416,097
|
|
|
Gross tax unrealized appreciation
|
|
|
2,977,688
|
|
|
Gross tax unrealized depreciation
|
|
|
(47,604
|
)
|
|
Net tax unrealized appreciation
|
|
|
2,930,084
|
|
|
Undistributed ordinary income
|
|
|
102
|
|
|
Undistributed long-term capital gain
|
|
|
—
|
|
|
Total distributable earnings
|
|
|
102
|
|
|
Other accumulated gain/loss
|
|
|
(39,691
|
)
|
|
Total accumulated earnings/losses
|
|
$
|
2,890,495
|
|
Contravisory Strategic Equity Fund
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
To the Board of Trustees of
Professionally Managed Portfolios and
Shareholders of Contravisory Strategic Equity Fund
We have audited the accompanying statement of assets and liabilities of the Contravisory Strategic Equity Fund (the “Fund”), a series of Professionally Managed Portfolios, including the schedule of investments, as of December 31, 2013, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and financial highlights for each of the two years in the period then ended and for the period June 30, 2011 (commencement of operations) to December 31, 2011. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Contravisory Strategic Equity Fund of December 31, 2013, the results of its operations for the year ended, the statement of changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the two years in the period then ended and for the period June 30, 2011 to December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.
TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
February 27, 2014
Contravisory Strategic Equity Fund
|
EXPENSE EXAMPLE
For the Six-Months Ended December 31, 2013 (Unaudited)
|
As a shareholder of the Contravisory Strategic Equity Fund (the “Fund”) you incur two types of costs: (1) transaction costs, including redemption fees and exchange fees; and (2) ongoing costs, including investment advisory 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 (July 1, 2013 – December 31, 2013).
Actual Expenses
The first line of the table provides information about actual account values based on actual returns and actual expenses. Although the Fund charges no sales load or other transaction fees, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Fund’s transfer agent. If you request that a redemption be made by wire transfer, currently, the Fund’s transfer agent charges a $15.00 fee. You will be charged a redemption fee equal to 2.00% of the net amount of the redemption if you redeem shares that have been held for less than 60 days. Individual Retirement Accounts (“IRA”) will be charged a $15.00 annual maintenance fee. To the extent the Fund invests in shares of other investment companies as part of its investment strategy, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying funds in which the Fund invests in addition to the expenses of the Fund. Actual expenses of the underlying funds may vary. These expenses are not included in the example. The example includes, but is not limited to, investment advisory, fund accounting, custody and transfer agent fees. However, the example does not include portfolio trading commissions and related expenses and other extraordinary expenses as determined under generally accepted accounting principles. 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 (for example, 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.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values based on a hypothetical return and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per
Contravisory Strategic Equity Fund
|
EXPENSE EXAMPLE
For the Six-Months Ended December 31, 2013 (Unaudited) (Continued)
|
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. If these transactional costs were included, your costs would have been higher.
|
|
|
|
Expenses Paid
|
|
|
Beginning
|
Ending
|
During the Period
|
|
|
Account Value
|
Account Value
|
July 1, 2013 –
|
|
Investor Class
|
July 1, 2013
|
December 31, 2013
|
December 31, 2013^
|
|
Actual
|
$1,000.00
|
$1,152.70
|
$6.78
|
|
Hypothetical (5% annual
|
$1,000.00
|
$1,018.90
|
$6.36
|
|
return before expenses)
|
|
|
|
|
|
|
|
Expenses Paid
|
|
|
Beginning
|
Ending
|
During the Period
|
|
|
Account Value
|
Account Value
|
July 1, 2013 –
|
|
Institutional Class
|
July 1, 2013
|
December 31, 2013
|
December 31, 2013^
|
|
Actual
|
$1,000.00
|
$1,154.50
|
$5.43
|
|
Hypothetical (5% annual
|
$1,000.00
|
$1,020.16
|
$5.09
|
|
return before expenses)
|
|
|
|
|
|
^
|
The calculations are based on expenses incurred during the most recent six-month period. The annualized six-month expense ratios for the Contravisory Strategic Equity Fund Investor Class and Institutional Class were 1.25% and 1.00%, respectively. The dollar amounts shown as expenses paid during the period are equal to the annualized six-month expense ratio multiplied by the average account value during the period, multiplied by the number of days in the most recent six-month period and divided by the number of days in the fiscal year.
|
Contravisory Strategic Equity Fund
|
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
(Unaudited)
|
At a meeting held on August 12 and 13, 2013, the Board (which is comprised of five persons, all of whom are Independent Trustees as defined under the Investment Company Act) considered and approved the continuance of the Advisory Agreement for the Contravisory Strategic Equity Fund, a series of Professionally Managed Portfolios, with Contravisory Investment Management, Inc. (the “Advisor” or “Contravisory”). At this meeting and at a prior meeting held on May 14 and 15, 2013, the Board received and reviewed substantial information regarding the Fund, the Advisor and the services to be provided by the Advisor to the Fund under the Advisory Agreement. This information, together with the information provided to the Board throughout the course of the year, formed the primary (but not exclusive) basis for the Board’s determinations. Below is a summary of the factors considered by the Board and the conclusions that formed the basis for the Board’s approval of the continuance of the Advisory Agreement:
1.
The nature, extent and quality of the services provided and to be provided by the Advisor under the Advisory Agreement.
The Trustees considered the nature, extent and quality of the Advisor’s overall services provided to the Fund as well as its specific responsibilities in all aspects of day-to-day management of the Fund. The Board considered the qualifications, experience and responsibilities of the portfolio managers and other key personnel at Contravisory involved in the day-to-day activities of the Fund. The Trustees also considered the resources and structure of Contravisory’s compliance procedures and the trading capability of Contravisory, including information regarding its compliance program, its chief compliance officer and the Advisor’s compliance record, the Advisor’s disaster recovery plan, and the Advisor’s business continuity plan. The Board also considered the prior relationship between the Advisor and the Trust, as well as the Board’s knowledge of the Advisor’s operations, and noted that during the course of the prior year they had met with the Advisor in person to discuss fund performance, investment outlook as well as various marketing and compliance topics, including the Advisor’s risk management process. The Board concluded that the Advisor had the quality and depth of personnel, resources, investment methods and compliance policies and procedures essential to performing its duties under the Advisory Agreement and that the nature, overall quality, and extent of the management services are satisfactory.
2.
The Fund’s historical performance and the overall performance of the Advisor.
In assessing the quality of the portfolio management delivered by the Advisor, the Board reviewed the performance of the Fund on both an absolute basis, and in comparison to appropriate securities benchmarks and its peer funds utilizing Morningstar classifications.
Contravisory Strategic Equity Fund
|
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
(Unaudited) (Continued)
|
The Board noted that the Fund significantly outperformed its peer group median for the one-year time period. The Board took into consideration the short period of time the Fund had been in operation. The Board also considered the Fund’s slight underperformance compared to its similarly managed accounts for the one-year time period, but found the performance differences to be reasonable.
3.
Costs of Services Provided and Profits Realized by Contravisory.
In considering the advisory fee and total fees and expenses of the Fund, the Board reviewed comparisons to its peer funds and similarly managed separate accounts for other types of clients advised by the Advisor, as well as expense waivers and reimbursements.
The Board noted that Contravisory had contractually agreed to maintain an annual expense ratio of 1.50% and 1.25% for the Investor Class and Institutional Class shares, respectively, of average daily net assets. The Trustees noted that both the Fund’s contractual advisory fee and net expense ratio were above those of its peer group median. The Board concluded that, as the Fund was relatively new, the fees paid to the Advisor were not unreasonable.
The Board took into consideration the services the Advisor provided to its similarly managed institutional and separately managed account clients comparing the fees charged for those management services to the fees charged to the Fund. The Board found that the fees charged to the Fund were in line with the fees charged by the Advisor to its similarly managed institutional and separately managed account clients.
4.
Economies of Scale.
The Board also considered that economies of scale would be expected to be realized as the assets of the Fund grow. The Board noted that the Advisor has contractually agreed to reduce its advisory fees or reimburse expenses, so that the Fund does not exceed its specified expense limitation. The Board concluded that there were no effective economies of scale to be shared with the Fund at current asset levels, but would revisit this issue in the future as circumstances changed and asset levels increased.
5.
The profits to be realized by the Advisor and its affiliates from their relationship with the Fund.
The Trustees reviewed the Advisor’s financial information and took into account both the direct benefits and indirect benefits to the Advisor from advising the Fund. The Board considered the profitability to Contravisory from its relationship with the Fund and considered any additional benefits derived by the Advisor from its relationship with the Fund, particularly the 12b-1 fees paid to the Advisor.
Contravisory Strategic Equity Fund
|
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
(Unaudited) (Continued)
|
After such review, the Board determined that the profitability to the Advisor with respect to the Advisory Agreement was not excessive, and that the Advisor had maintained adequate profit levels to support the services it provides to the Fund.
No single factor was determinative of the Board’s decision to approve the Advisory Agreement, but rather the Board based its determination on the total mix of information available to them. Based on a consideration of all the factors in their totality, the Board determined that the advisory arrangements with the Advisor, including the advisory fees, were fair and reasonable. The Board therefore determined that the Advisory Agreement would be in the best interests of the Fund and its shareholders.
Contravisory Strategic Equity Fund
|
TRUSTEES AND EXECUTIVE OFFICERS
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
Portfolios
|
|
|
|
|
Term of
|
Principal
|
in Fund
|
Other
|
|
|
Position
|
Office and
|
Occupation
|
Complex
(2)
|
Directorships
|
|
Name, Age
|
with the
|
Length of
|
During
|
Overseen
|
Held During
|
|
and Address
|
Trust
(1)
|
Time Served
|
Past Five Years
|
by Trustees
|
Past Five Years
|
|
|
|
|
|
|
|
|
Independent Trustees of the Trust
|
|
|
|
|
|
|
|
|
Dorothy A. Berry
|
Chairman
|
Indefinite
|
Formerly, President,
|
1
|
Director, PNC
|
|
(born 1943)
|
and
|
Term;
|
Talon Industries,
|
|
Funds, Inc.
|
|
c/o U.S. Bancorp
|
Trustee
|
Since
|
Inc. (business consulting);
|
|
|
|
Fund Services, LLC
|
|
May
|
formerly, Executive
|
|
|
|
2020 E. Financial Way
|
|
1991.
|
Vice President and
|
|
|
|
Suite 100
|
|
|
Chief Operating Officer,
|
|
|
|
Glendora, CA 91741
|
|
|
Integrated Asset
|
|
|
|
|
|
|
Management (investment
|
|
|
|
|
|
|
advisor and manager) and
|
|
|
|
|
|
|
formerly, President, Value
|
|
|
|
|
|
|
Line, Inc. (investment
|
|
|
|
|
|
|
advisory and financial
|
|
|
|
|
|
|
publishing firm).
|
|
|
|
|
|
|
|
|
|
|
Wallace L. Cook
|
Trustee
|
Indefinite
|
Investment
|
1
|
The Dana
|
|
(born 1939)
|
|
Term;
|
Consultant; formerly,
|
|
Foundation;
|
|
c/o U.S. Bancorp
|
|
Since
|
Chief Executive Officer,
|
|
The Univ. of
|
|
Fund Services, LLC
|
|
May
|
Rockefeller Trust Co.,
|
|
Virginia Law
|
|
2020 E. Financial Way
|
|
1991.
|
(prior thereto Senior
|
|
School Fdn.
|
|
Suite 100
|
|
|
Vice President), and
|
|
|
|
Glendora, CA 91741
|
|
|
Managing Director,
|
|
|
|
|
|
|
Rockefeller & Co.
|
|
|
|
|
|
|
(Investment Manager
|
|
|
|
|
|
|
and Financial Advisor);
|
|
|
|
|
|
|
formerly, Senior Vice
|
|
|
|
|
|
|
President, Norton
|
|
|
|
|
|
|
Simon, Inc.
|
|
|
|
|
|
|
|
|
|
|
Eric W. Falkeis
(3)
|
Trustee
|
Indefinite
|
President and Chief
|
1
|
None.
|
|
(born 1973)
|
|
Term;
|
Operating Officer,
|
|
|
|
c/o U.S. Bancorp
|
|
Since
|
Direxion Funds since
|
|
|
|
Fund Services, LLC
|
|
September
|
2013; formerly, Senior
|
|
|
|
2020 E. Financial Way
|
|
2011.
|
Vice President, and
|
|
|
|
Suite 100
|
|
|
Chief Financial Officer
|
|
|
|
Glendora, CA 91741
|
|
|
(and other positions),
|
|
|
|
|
|
|
U.S. Bancorp Fund
|
|
|
|
|
|
|
Services, LLC,
|
|
|
|
|
|
|
(1997-2013).
|
|
|
|
|
|
|
|
|
|
Contravisory Strategic Equity Fund
|
TRUSTEES AND EXECUTIVE OFFICERS
(Continued)
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
Portfolios
|
|
|
|
|
Term of
|
Principal
|
in Fund
|
Other
|
|
|
Position
|
Office and
|
Occupation
|
Complex
(2)
|
Directorships
|
|
Name, Age
|
with the
|
Length of
|
During
|
Overseen
|
Held During
|
|
and Address
|
Trust
(1)
|
Time Served
|
Past Five Years
|
by Trustees
|
Past Five Years
|
|
|
|
|
|
|
|
|
Carl A. Froebel
|
Trustee
|
Indefinite
|
Formerly President
|
1
|
None.
|
|
(born 1938)
|
|
Term;
|
and Founder,
|
|
|
|
c/o U.S. Bancorp
|
|
Since
|
National Investor
|
|
|
|
Fund Services, LLC
|
|
May
|
Data Services, Inc.
|
|
|
|
2020 E. Financial Way
|
|
1991.
|
(investment related
|
|
|
|
Suite 100
|
|
|
computer software).
|
|
|
|
Glendora, CA 91741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steven J. Paggioli
|
Trustee
|
Indefinite
|
Consultant, since
|
1
|
Independent
|
|
(born 1950)
|
|
Term;
|
July 2001; formerly,
|
|
Trustee, The
|
|
c/o U.S. Bancorp
|
|
Since
|
Executive Vice
|
|
Managers
|
|
Fund Services, LLC
|
|
May
|
President, Investment
|
|
Funds; Trustee,
|
|
2020 E. Financial Way
|
|
1991.
|
Company Administration,
|
|
Managers
|
|
Suite 100
|
|
|
LLC (mutual fund
|
|
AMG Funds,
|
|
Glendora, CA 91741
|
|
|
administrator).
|
|
Aston Funds;
|
|
|
|
|
|
|
Advisory Board
|
|
|
|
|
|
|
Member,
|
|
|
|
|
|
|
Sustainable
|
|
|
|
|
|
|
Growth
|
|
|
|
|
|
|
Advisers, LP;
|
|
|
|
|
|
|
Independent
|
|
|
|
|
|
|
Director, Chase
|
|
|
|
|
|
|
Investment
|
|
|
|
|
|
|
Counsel.
|
|
|
|
|
|
|
|
|
Officers of the Trust
|
|
|
|
|
|
|
|
|
Elaine E. Richards
|
President
|
Indefinite
|
Vice President
|
Not
|
Not
|
|
(born 1968)
|
|
Term;
|
and Legal
|
Applicable.
|
Applicable.
|
|
c/o U.S. Bancorp
|
|
Since
|
Compliance
|
|
|
|
Fund Services, LLC
|
|
March
|
Officer, U.S.
|
|
|
|
2020 E. Financial Way
|
|
2013.
|
Bancorp Fund
|
|
|
|
Suite 100
|
Secretary
|
Indefinite
|
Services, LLC,
|
|
|
|
Glendora, CA 91741
|
|
Term;
|
since July 2007.
|
|
|
|
|
|
Since
|
|
|
|
|
|
|
February
|
|
|
|
|
|
|
2008.
|
|
|
|
|
|
|
|
|
|
|
Contravisory Strategic Equity Fund
|
TRUSTEES AND EXECUTIVE OFFICERS
(Continued)
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
Portfolios
|
|
|
|
|
Term of
|
Principal
|
in Fund
|
Other
|
|
|
Position
|
Office and
|
Occupation
|
Complex
(2)
|
Directorships
|
|
Name, Age
|
with the
|
Length of
|
During
|
Overseen
|
Held During
|
|
and Address
|
Trust
(1)
|
Time Served
|
Past Five Years
|
by Trustees
|
Past Five Years
|
|
|
|
|
|
|
|
|
Eric C. VanAndel
|
Treasurer
|
Indefinite
|
Vice President,
|
Not
|
Not
|
|
(born 1975)
|
|
Term;
|
U.S. Bancorp
|
Applicable.
|
Applicable.
|
|
c/o U.S. Bancorp
|
|
Since
|
Fund Services,
|
|
|
|
Fund Services, LLC
|
|
April
|
LLC, since
|
|
|
|
615 East Michigan St.
|
|
2013.
|
April 2005.
|
|
|
|
Milwaukee, WI 53202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Donna Barrette
|
Chief
|
Indefinite
|
Senior Vice
|
Not
|
Not
|
|
(born 1966)
|
Compliance
|
Term;
|
President and
|
Applicable.
|
Applicable.
|
|
c/o U.S. Bancorp
|
Officer
|
Since
|
Compliance
|
|
|
|
Fund Services, LLC
|
|
July
|
Officer, U.S.
|
|
|
|
615 East Michigan St.
|
|
2011.
|
Bancorp Fund
|
|
|
|
Milwaukee, WI 53202
|
Anti-
|
Indefinite
|
Services, LLC
|
|
|
|
|
Money
|
Term;
|
since August 2004.
|
|
|
|
|
Laundering
|
Since
|
|
|
|
|
|
Officer
|
July
|
|
|
|
|
|
|
2011.
|
|
|
|
|
|
Vice
|
Indefinite
|
|
|
|
|
|
President
|
Term;
|
|
|
|
|
|
|
Since
|
|
|
|
|
|
|
July
|
|
|
|
|
|
|
2011.
|
|
|
|
|
(1)
|
The Trustees of the Trust are not “interested persons” of the Trust as defined under the 1940 Act (“Independent Trustees”).
|
|
(2)
|
The Trust is comprised of numerous series managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Fund. The Fund does not hold itself out as related to any other series within the Trust for purposes of investment and investor services, nor does it share the same investment advisor with any other series.
|
|
(3)
|
Prior to March 8, 2013, Mr. Falkeis was an “interested person” of the Trust as defined by the 1940 Act by virtue of the fact that he was an interested person of Quasar Distributors, LLC who acts as principal underwriter to the series of the Trust.
|
Contravisory Strategic Equity Fund
|
FEDERAL TAX INFORMATION
(Unaudited)
|
For the fiscal year ended December 31, 2013, certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of dividends declared from ordinary income designated as qualified dividend income was 100.00%.
For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended December 31, 2013, was 100.00%.
|
INFORMATION ABOUT PROXY VOTING
(Unaudited)
|
A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling toll-free at (855) 558-8818 or by accessing the Fund’s website at
www.contravisoryfunds.com
or the SEC’s website at
www.sec.gov
.
Information regarding how the Fund voted proxies relating to portfolio securities during the twelve months ending June 30 is available by calling toll-free at (855) 558-8818 or by accessing the SEC’s website at
www.sec.gov
.
|
INFORMATION ABOUT THE PORTFOLIO HOLDINGS
(Unaudited)
|
The Fund files its complete schedule of portfolio holdings for its first and third fiscal quarters with the SEC on Form N-Q. The Fund’s Form N-Q is available without charge, upon request, by calling toll-free at (855) 558-8818. Furthermore, you may obtain the Form N-Q on the SEC’s website at
www.sec.gov
.
In an effort to conserve resources, the Fund intends to reduce the number of duplicate Prospectuses and Annual and Semi-Annual Reports you receive by sending only one copy of each to addresses where we reasonably believe two or more accounts are from the same family. If you would like to discontinue householding for your accounts, please call toll-free (855) 558-8818 to request individual copies of these documents. We will begin sending individual copies thirty days after receiving your request to stop householding. This policy does not apply to account statements.
Contravisory Strategic Equity Fund
|
ADDITIONAL INFORMATION
(Continued)
|
|
INFORMATION ABOUT THE FUND’S TRUSTEES
(Unaudited)
|
The Statement of Additional Information (“SAI”) includes additional information about the Fund’s Trustees and is available without charge, upon request, by calling (855) 558-8818. Furthermore, you can obtain the SAI on the SEC’s website at www.sec.gov or the Fund’s website at www.contravisoryfunds.com.
Contravisory Strategic Equity Fund
|
PRIVACY NOTICE
(Unaudited)
|
The Fund collects non-public information about you from the following sources:
•
Information we receive about you on applications or other forms;
•
Information you give us orally; and
•
Information about your transactions with us or others
The Fund does not disclose any non-public personal information about our customers or former customers without the customer’s authorization, except as permitted by law or in response to inquiries from governmental authorities. The Fund may share information with affiliated parties and unaffiliated third parties with whom we have contracts for servicing the Fund. The Fund will provide unaffiliated third parties with only the information necessary to carry out their assigned responsibility and require third parties to treat your non-public information with the same high degree of confidentiality. The Fund maintains physical, electronic and procedural safeguards to guard your non-public information and require third parties to treat your non-public information with the same high degree of confidentiality.
In the event that you hold shares of a Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.
Advisor
CONTRAVISORY INVESTMENT MANAGEMENT, INC.
120 Longwater Drive, Suite 100
Norwell, MA 02061
Distributor
QUASAR DISTRIBUTORS, LLC
615 East Michigan Street
Milwaukee, WI 53202
Custodian
U.S. BANK, N.A.
Custody Operations
1555 North RiverCenter Drive, Suite 302
Milwaukee, WI 53212
Transfer Agent
U.S. BANCORP FUND SERVICES, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
(855) 558-8818
Independent Registered Public Accounting Firm
TAIT, WELLER & BAKER LLP
1818 Market Street, Suite 2400
Philadelphia, PA 19103
Legal Counsel
PAUL HASTINGS, LLP
Park Avenue Tower
75 E. 55th Street, Floor 15
New York, NY 10022
Symbol
Investor Class – CSEFX
Institutional Class – CSSFX
CUSIP
Investor Class – 74316J730
Institutional Class – 74316J748