SEMI-ANNUAL REPORT

JUNE 30, 2022

- GROWTH FUND (MPGFX)

est. 1958

- BALANCED FUND (MAPOX)

est. 1961

- SMALL CAP FUND (MSCFX)

est. 2011

- MINNESOTA MUNICIPAL BOND ETF (MINN)

est. 2021


MAIRS & POWER FUNDS MARKET COMMENTARY (unaudited)

June 30, 2022

The first half of 2022 was a difficult period for the market, which has been reacting to higher interest rates and the near-term likelihood of economic weakness and lower earnings.

So far, many indicators of economic activity have generally looked good. Unemployment has been low, home prices have been rising, and industrial production has not slowed. In addition, corporate earnings have remained resilient. The current consensus of earnings growth is 10.6% for this year and 9.2% in 2023. But the market focuses on leading indicators, and those are flashing yellow and, in some cases, even red.

In fact, some signs suggest that the economy may be heading toward recession. According to the University of Michigan consumer sentiment index, consumer confidence is at an all-time low, due largely to inflation, which has reached levels not seen since the 1980s. Because consumers are paying higher prices, they are buying fewer items. In addition, there are signs that the housing market is softening. A slowdown in housing could have a far-reaching impact on economic growth, and while unemployment rates remain low, there has been a recent uptick in layoffs. Initial unemployment claims have been inching up and at 231,000 as of June 30, 2022, they are about 40% above the low level hit in the Spring. When weekly claims reach 400,000, that suggests a recession is ahead. We're still a long way from that, but the numbers bear watching.

In the first half of 2022, the S&P 500 Total Return (TR) Index (the "S&P 500") dropped 19.96%. The S&P 500 entered a bear market on June 13, when it declined 20% from its previous peak of 4797, which it reached on January 3. In the second quarter, the S&P 500 declined 16.10%, the Dow Jones Industrial Average TR Index fell 10.78%, and the Bloomberg U.S. Government/Credit Bond Index dropped 5.03%.

Future Outlook

For the economy to flourish in the long term, the Federal Reserve (Fed) needs to get inflation under control. The current inflationary pressures have been caused by multiple factors. Demand, which was overheating thanks to massive fiscal and monetary stimulus during the pandemic, is one. Supply constraints caused by Covid shutdowns in China and labor shortages in the U.S. have also pushed inflation higher.

Higher inflation erodes purchasing power and leads to higher interest rates which chokes off borrowing, resulting in an economy that struggles to grow. In addition, rapidly rising prices have the greatest impact on low-wage earners, who often spend more of their income on necessities. But when inflation is low, interest rates stay low. This encourages companies to fund growth through borrowing and allows consumers to afford loans more easily for homes, cars, and other big-ticket items. Growing companies and growing consumer demand lead to job growth and income growth, resulting in a virtuous cycle.

The Fed is determined to bring inflation back to 2%, and it plans to do so by raising interest rates to temporarily slow demand. The Fed understands that there will be short-term pain because of higher interest rates and that its actions risk causing a recession. But it is committed to putting the economy back on a more sustainable, long-term growth footing. However, we are watching for signs of weakening. In an economic downturn, earnings estimates will almost certainly be reduced. The decline in stock prices is the market's way of anticipating the possibility of lower corporate earnings.

A positive long-term outlook depends primarily on slowing inflation. Should inflation recede and interest rates decline, the economy and markets will begin another cycle of growth. And as Covid recedes, we expect that China will reopen its economy and that supplies of goods will return to normal, further easing inflationary pressures.

Past Performance is not a guarantee of future results.

The Michigan Consumer Sentiment Index is a monthly survey of consumer confidence levels in the United States conducted by the University of Michigan. The survey is based on telephone interviews that gather information on consumer expectations for the economy.


1


MAIRS & POWER FUNDS MARKET COMMENTARY (unaudited) (continued)

S&P 500 Total Return (TR) Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. It is not possible to invest directly in an index.

Dow Jones Industrial Average TR Index is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. It is not possible to invest directly in an index.

Bloomberg U.S. Government/Credit Bond Index is a broad-based flagship benchmark that measures the non-securitized component of the U.S. Aggregate Index. It includes investment-grade, U.S. dollar-denominated, fixed-rate Treasuries, government-related and corporate securities. It is not possible to invest directly in an index.


2


MAIRS & POWER GROWTH FUND (unaudited)

To Our Shareholders:  June 30, 2022

In the first half of 2022, the Mairs & Power Growth Fund fell 21.69%, compared to declines of 19.96% for the S&P 500 Total Return (TR) Index benchmark and 19.25% for its peer group as measured by the Morningstar U.S. Fund Large Blend category. In the second quarter of 2022, the Fund fell 15.54%, the benchmark lost 16.10%, and the Morningstar peer group dropped 14.89%.

Overall, sector allocation had little effect on the Fund's relative performance in the first half. Positive contributions from overweighting Healthcare and Industrials, along with an underweight in Consumer Discretionary, were offset by lack of exposure to Energy. Energy makes up only 4.4% of the S&P 500 Index benchmark, but in the first half it was the best-performing sector by far, up 31.8%. We expect that in the longer term, Energy demand and supply will converge. As a result, price increases should slow, and the Fund's portfolio should benefit.

Stock selection weighed on performance in the first half of the year. Ecolab (ECL) detracted the most from relative performance in the first half as its stock declined 34.5%. The company suffered with higher input costs as most are tied to oil derivatives. Ecolab should report better results as management takes appropriate pricing actions to offset these increased costs. Also, Ecolab is well-positioned to benefit from a rebound in travel as its customers' businesses improve and its investments in digital technology further differentiate it from its competitors.

Alphabet (GOOG) was also a significant drag on relative performance, even though it performed well compared to other Technology stocks in the first half of the year. While its revenue grew more than 20% in the first quarter, this was a deceleration from the 30% or more growth it posted in each quarter of 2021. Alphabet continues to have a near-monopoly of online search, and its stock should perform better when investor sentiment swings back toward growth stocks.

Healthcare holdings UnitedHealth Group (UHG) and Eli Lilly (LLY) were two of the Fund's largest contributors to relative performance in the first half. UnitedHealth has executed well on its strategy to shift away from its traditional health insurance model and into healthcare delivery. The company is utilizing its unmatched scale in data analysis to provide the most efficient care possible. Eli Lilly, meanwhile, has benefited from positive study results for its groundbreaking product aimed at reducing Alzheimer's disease progression and a new weight loss product within its diabetes franchise. We have trimmed positions in both companies to redeploy proceeds into promising stocks hit hard in 2022.

MAIRS & POWER GROWTH FUND (MPGFX) CONTRIBUTORS

Year To Date (12/31/2021 – 6/30/2022)

Largest Contributors To
Relative Performance
  Largest Detractors To
Relative Performance
 

Eli Lilly & Company

   

17.38

%

 

Sherwin-Williams Company

   

-36.42

%

 

Sysco Corporation

   

7.84

%

 

Ecolab, Inc.

   

-34.46

%

 

Johnson & Johnson

   

3.76

%

 

Bio-Techne Corporation

   

-33.00

%

 

UnitedHealth Group, Inc.

   

2.29

%

 

Graco Inc.

   

-26.31

%

 

Digi International, Inc.*

   

-1.42

%

 

Alphabet Inc. Class C

   

-24.40

%

 

Largest relative contributors and detractors are securities that were selected based on their contribution to the portfolio as of June 30, 2022. The performance number shown is total return of the security for the period and includes only securities held for the entire period. Total return is the amount of value an investor earns from a security over a specific period and when distributions are reinvested. Past performance does not guarantee future results.

*  Digi International, Inc. was a relative contributor because even though it was down on an absolute basis, it performed well relative to the Fund benchmark.


3


MAIRS & POWER GROWTH FUND (unaudited) (continued)

In the second quarter, the Fund started two new positions. Both are Industrial companies that are leaders in markets with growth tailwinds.

Georgia-based Chart Industries (GTLS), which has a significant manufacturing facility in New Prague, Minnesota, manufactures storage tanks and heat exchangers for the industrial gas and energy markets. It foresees increased demand over the next several years in the LNG (liquid natural gas) industry as countries scramble to adjust to supply disruptions resulting from Russia's invasion of Ukraine. Also, Chart is positioned to benefit if hydrogen becomes an energy storage solution for utilities shifting to renewable sources.

The Fund's other new holding is Wisconsin-based Generac (GNRC), which dominates the market for residential standby generation. Increasingly frequent and severe weather events are driving demand for its products, particularly as consumers rely more on digital connectivity. We saw an opportunity given the significant pullback in the stock over the last year.

Looking ahead, we believe the Fund should perform well even if the current inflationary environment persists. A significant part of our analysis involves looking closely at companies' competitive positions and their ability to pass on price increases to their customers. We also expect the Fund's significant exposure to Industrials to benefit as global supply chain disruptions improve.

Andrew R. Adams
Lead Manager
  Peter J. Johnson
Co-Manager
 

The Fund's investment objective, risks, charges and expenses must be considered carefully before investing. The summary prospectus or full prospectus contains this and other important information about the Fund and they may be obtained by calling Shareholder Services at (800) 304-7404 or by visiting www.mairsandpower.com. Read the summary prospectus or full prospectus carefully before investing.

All holdings in the portfolio are subject to change without notice and may or may not represent current or future portfolio composition. The mention of specific securities is not intended as a recommendation or an offer of a particular security, nor is it intended to be a solicitation for the purchase or sale of any security.

All investments have risks. The Growth Fund is designed for long-term investors. Equity investments are subject to market fluctuations and the Fund's share price can fall because of weakness in the broad market, a particular industry or specific holdings. Investments in small and midcap companies generally are more volatile. International investing risks include among others political, social or economic instability, difficulty in predicting international trade patterns, taxation and foreign trading practices and greater fluctuations in price than U.S. corporations.

This commentary includes forward-looking statements such as economic predictions and portfolio manager opinions. The statements are subject to change at any time based on market and other conditions. No predictions, forecasts, outlooks, expectations or beliefs are guaranteed.

S&P 500 Total Return (TR) Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. It is not possible to invest directly in an index.

Morningstar U.S. Fund Large-Blend portfolios are fairly representative of the overall U.S. stock marketing in size, growth rates, and price. Stocks in the to 70% of the capitalization of the U.S equity market are defined as large-cap. The blend style is assigned to portfolios where neither growth nor value characteristics predominate. These portfolios tend to invest across the spectrum of U.S. industries, and owing to their broad exposure, the portfolios' returns are often similar to those of the S&P 500 Index.


4


Mairs & Power Growth Fund
PERFORMANCE INFORMATION (unaudited)  June 30, 2022

Ten years of investment performance (through June 30, 2022)

This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund 10 years ago.

Average annual total returns for periods ended June 30, 2022

   

1 year

 

5 years

 

10 years

 

20 years

 

Mairs & Power Growth Fund(1)

   

-13.28

%

   

9.39

%

   

11.72

%

   

9.30

%

 

S&P 500 Total Return Index(2)

   

-10.62

%

   

11.31

%

   

12.96

%

   

9.08

%

 

Performance data quoted represents past performance and does not guarantee future results. All performance information shown includes the reinvestment of dividend and capital gain distributions, but does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. For the most recent month-end performance figures, visit the Fund's website at www.mairsandpower.com or call Shareholder Services at (800) 304-7404. Per the Prospectus dated April 20, 2022, the expense ratio for the Fund is 0.61%. See the Financial Highlights in this report for the most recent expense ratio.

(1)  Performance figures reflect the historical performance of the Mairs & Power Growth Fund (the "Predecessor Growth Fund"), a series of Mairs & Power Funds Trust, for periods prior to April 29, 2022.

(2)  The S&P 500 Total Return Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. It tracks both the capital gains of a group of stocks over time and assumes that any cash distributions, such as dividends, are reinvested back into the index. It is not possible to invest directly in an index.


5


Mairs & Power Growth Fund
FUND INFORMATION (unaudited)  June 30, 2022

Portfolio Managers

Andrew R. Adams, CFA, lead manager of the Mairs & Power Growth Fund and the Predecessor Growth Fund since April 1, 2019, co-manager from January 1, 2015 through April 1, 2019, University of Wisconsin-Madison, MS Finance 1997

Peter J. Johnson, CFA, co-manager of the Mairs & Power Growth Fund and the Predecessor Growth Fund since April 1, 2019, University of Wisconsin-Madison, MBA Applied Security Analysis 2010

General Information

Fund Symbol

    MPGFX    

Net Asset Value (NAV) Per Share

 

$

126.81

   

Expense Ratio

   

0.63

%1

 

Portfolio Turnover Rate

   

6.35

%

 

Sales Charge

   

None2

   

Fund Inception Year

   

1958

   

Portfolio Composition

Top Ten Portfolio Holdings
(Percent of Total Net Assets)3

Microsoft Corp

   

7.9

%

 

Alphabet Inc

   

6.7

   

UnitedHealth Group Inc

   

6.2

   

Amazon.com Inc

   

4.7

   

US Bancorp/MN

   

4.0

   

Ecolab Inc

   

3.6

   

Graco Inc

   

3.0

   

Medtronic PLC

   

3.0

   

Roche Holding AG

   

2.9

   

Bio-Techne Corp

   

2.8

   

Portfolio Diversification
(Percent of Total Net Assets)

Common Stocks 99.3%

 

Information Technology

   

24.8

%

 

Health Care

   

20.5

   

Industrials

   

16.3

   

Financials

   

10.3

   

Consumer Discretionary

   

7.1

   

Communication Services

   

7.6

   

Materials

   

7.4

   

Consumer Staples

   

4.6

   

Utilities

   

0.7

   

Short-term Investments 0.7%4

   

0.7

   
     

100.0

%

 

1  Ratio has been annualized for the six month period ended June 30, 2022.

2  Although the Fund is no-load, investment management fees and other expenses still apply.

3  All holdings in the portfolio are subject to change without notice and may or may not represent current or future portfolio composition. The mention of specific securities is not intended as a recommendation or offer for a particular security, nor is it intended to be a solicitation for the purchase or sale of any security.

4  Represents short-term investments and other assets and liabilities (net).

  The Schedule of Investments and portfolio diversification utilize the Global Industry Classification Standard (GICS®) which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Mairs & Power, Inc. (the "Adviser").


6


Mairs & Power Growth Fund
SCHEDULE OF INVESTMENTS (unaudited)  June 30, 2022

Shares

 

Security Description

 

Fair Value

 
   

COMMON STOCKS 99.3%

 
   

COMMUNICATION SERVICES 7.6%

 
 

136,500

   

Alphabet Inc (a)

 

$

298,586,925

   
 

455,000

   

Walt Disney Co/The (a)

   

42,952,000

   
     

341,538,925

   
   

CONSUMER DISCRETIONARY 7.1%

 
 

1,994,000

   

Amazon.com Inc (a)

   

211,782,740

   
 

157,999

   

Gentherm Inc (a)

   

9,860,718

   
 

115,000

   

Home Depot Inc/The

   

31,541,050

   
 

297,000

   

Polaris Inc

   

29,486,160

   
 

312,000

   

Sleep Number Corp (a)

   

9,656,400

   
 

180,000

   

Target Corp

   

25,421,400

   
     

317,748,468

   
   

CONSUMER STAPLES 4.6%

 
 

2,621,592

   

Hormel Foods Corp

   

124,158,597

   
 

947,000

   

Sysco Corp

   

80,220,370

   
     

204,378,967

   
   

FINANCIALS 10.3%

 
 

1,440,300

   

Charles Schwab Corp/The

   

90,998,154

   
 

257,000

   

JPMorgan Chase & Co

   

28,940,770

   
 

364,000

   

Northern Trust Corp

   

35,118,720

   
 

700,000

   

Principal Financial Group Inc

   

46,753,000

   
 

3,925,000

   

US Bancorp/MN

   

180,628,500

   
 

2,064,000

   

Wells Fargo & Co

   

80,846,880

   
     

463,286,024

   
   

HEALTH CARE 20.5%

 
 

515,000

   

Abbott Laboratories

   

55,954,750

   
 

195,000

   

Baxter International Inc

   

12,524,850

   
 

362,700

   

Bio-Techne Corp

   

125,726,328

   
 

152,000

   

Eli Lilly & Co

   

49,282,960

   
 

60,000

   

Inspire Medical Systems Inc (a)

   

10,960,200

   
 

690,000

   

Johnson & Johnson

   

122,481,900

   
 

1,488,000

   

Medtronic PLC (d)

   

133,548,000

   
 

3,145,000

   

Roche Holding AG (c)

   

131,177,950

   
 

541,000

   

UnitedHealth Group Inc

   

277,873,830

   
     

919,530,768

   
   

INDUSTRIALS 16.3%

 
 

171,000

    3M Co    

22,129,110

   
 

536,000

   

CH Robinson Worldwide Inc

   

54,334,320

   
 

104,000

   

Chart Industries Inc (a)

   

17,407,520

   
 

1,510,000

   

Donaldson Co Inc

   

72,691,400

   
 

1,588,000

   

Fastenal Co

   

79,272,960

   
 

49,000

   

Generac Holdings Inc (a)

   

10,318,420

   


7


Mairs & Power Growth Fund
SCHEDULE OF INVESTMENTS (unaudited)
(continued)  June 30, 2022

Shares

 

Security Description

 

Fair Value

 
    COMMON STOCKS (continued)  
    INDUSTRIALS (continued)  
 

2,295,000

   

Graco Inc

 

$

136,345,950

   
 

225,000

   

Honeywell International Inc

   

39,107,250

   
 

2,176,066

   

nVent Electric PLC (d)

   

68,176,148

   
 

246,000

   

Rockwell Automation Inc

   

49,030,260

   
 

942,966

   

Tennant Co (e)

   

55,870,735

   
 

1,636,000

   

Toro Co/The

   

123,992,440

   
     

728,676,513

   
   

INFORMATION TECHNOLOGY 24.8%

 
 

921,533

   

Digi International Inc (a)

   

22,319,529

   
 

523,000

   

Entegris Inc

   

48,183,990

   
 

1,080,000

   

Fiserv Inc (a)

   

96,087,600

   
 

1,018,000

   

Jamf Holding Corp (a)

   

25,215,860

   
 

480,000

   

Littelfuse Inc

   

121,939,200

   
 

1,382,000

   

Microsoft Corp

   

354,939,060

   
 

459,500

   

Motorola Solutions Inc

   

96,311,200

   
 

622,000

   

NVIDIA Corp

   

94,288,980

   
 

802,000

   

QUALCOMM Inc

   

102,447,480

   
 

372,000

   

salesforce.com Inc (a)

   

61,394,880

   
 

290,000

   

Visa Inc

   

57,098,100

   
 

483,857

   

Workiva Inc (a)

   

31,929,724

   
     

1,112,155,603

   
   

MATERIALS 7.4%

 
 

1,039,000

   

Ecolab Inc

   

159,756,640

   
 

1,385,000

   

HB Fuller Co

   

83,390,850

   
 

403,953

   

Sherwin-Williams Co/The

   

90,449,116

   
     

333,596,606

   
   

UTILITIES 0.7%

 
 

500,000

   

Alliant Energy Corp

   

29,305,000

   
        TOTAL COMMON STOCKS
(cost $2,508,095,844)
 

$

4,450,216,874
 
   

SHORT-TERM INVESTMENTS 0.5%

 

20,850,698

  First American Government Obligations Fund, Class X, 1.286% (b)
(cost $20,850,698)
 

$

20,850,698

 
  TOTAL INVESTMENTS 99.8%
(cost $2,528,946,542)
 

$

4,471,067,572

 
        OTHER ASSETS AND LIABILITIES (NET) 0.2%    

8,842,662

   
       

TOTAL NET ASSETS 100.0%

 

$

4,479,910,234

   


8


Mairs & Power Growth Fund
SCHEDULE OF INVESTMENTS (unaudited)
(continued)  June 30, 2022

(a)  Non-income producing.

(b)  The rate quoted is the annualized seven-day effective yield as of June 30, 2022.

(c)  American Depositary Receipt.

(d)  Issuer headquartered overseas but considered domestic. The Adviser defines foreign issuers as those whose operational leadership or headquarters is located in a foreign country; provided, however, if an issuer is believed by the Adviser to be headquartered in a jurisdiction primarily for tax purposes, the Adviser will consider the following additional factors: 1) the location of the primary exchange trading its securities; 2) where it derives the majority of its revenues; and/or 3) where it earns the majority of its profits.

(e)  Affiliated company at June 30, 2022.

  The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by the Adviser.

See accompanying Notes to Financial Statements.


9


MAIRS & POWER BALANCED FUND (unaudited)

To Our Shareholders:  June 30, 2022

The Mairs & Power Balanced Fund finished the first half of 2022 down 15.79%. The benchmark composite index (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index) lost 16.38% during the period, while the Morningstar US Fund Allocation 50%-70% Equity category peer group fell 14.75%. In the second quarter, the Fund fell 9.93%, the benchmark lost 11.76%, and the Morningstar peer group dropped 10.64%.

The Fund's asset allocation negatively impacted year-to-date performance as stocks fell more than bonds during the first half. While bonds continue to have their worst year in the last 40 years, stocks fell more due to economic uncertainty in the face of higher interest rates and inflationary pressures.

Investors may be aware of our long-term equity strategy, which seeks to identify companies with durable competitive advantages, buy them at attractive valuations, and hold them for the long-run returns. The equity portion of the Fund's portfolio outperformed its primary benchmark during the first half of the year, aided by our value tilt and our security selection.

The Fund's underweight to Technology has had a pronounced positive impact on relative equity returns year-to-date, and selection within the sector added to performance given our focus on companies generating steady cash flow. Visa (V) was the largest positive contributor to relative performance as consumers demonstrate a willingness to spend again and cross-border travel picks up. Fiserv (FISV) also benefited from the rebound in consumer spending and from consistent execution leading to high-quality cash flow generation. Partly helpful was our general underweight to semiconductor manufacturers. However, Qualcomm (QCOM), the Fund's second-largest Technology holding, negatively impacted performance as semiconductor manufacturers widely experienced weakness due to supply shortages. We have leveraged weakness in some Technology companies with long-term competitive advantages, adding to Qualcomm and Salesforce (CRM).

The Fund's significant overweight to Healthcare helped meaningfully with year-to-date outperformance. Eli Lilly (LLY) continued to perform well as studies point to positive indications for an obesity/type 2 diabetes treatment, Mounjaro, which is still in testing. Johnson & Johnson (JNJ) and Medtronic (MDT) also added meaningfully to performance as the rebound in elective procedures boosted sales of medical devices.

MAIRS & POWER BALANCED FUND (MAPOX) CONTRIBUTORS

Year To Date (12/31/2021 – 6/30/2022)

Largest Contributors
To Relative Performance
  Largest Detractors
To Relative Performance
 

Eli Lilly & Company

   

17.38

%

 

Sherwin-Williams Company

   

-36.42

%

 

Hershey Company

   

11.21

%

 

Ecolab, Inc.

   

-34.46

%

 

Sysco Corporation

   

7.84

%

 

Qualcomm, Inc.

   

-30.15

%

 

Johnson & Johnson

   

3.76

%

 

Alphabet Inc. Class C

   

-24.40

%

 

UnitedHealth Group, Inc.

   

2.29

%

 

Toro Company

   

-24.14

%

 

Largest relative contributors and detractors are securities that were selected based on their contribution to the portfolio as of June 30, 2022. The performance number shown is total return of the security for the period and includes only securities held for the entire period. Total return is the amount of value an investor earns from a security over a specific period and when distributions are reinvested. Past performance does not guarantee future results.

Communication Services benefited because of stock selection, with Alphabet (GOOG) primarily contributing to relative returns. Alphabet's results have been bolstered by growth in its search and Google Cloud businesses. Microsoft's (MSFT) acquisition of Activision (ATVI) also positively affected first-half performance. Lastly, sector results were aided by a general avoidance of social media names, which languished during the first half.


10


MAIRS & POWER BALANCED FUND (unaudited) (continued)

The portfolio's lack of Energy holdings hurt year-to-date performance as the recent spike in oil prices drove the sector to the best performance in the market. Despite the near term strength, we have concluded that traditional producers and suppliers cannot build sustainable durable competitive advantages over the long run.

Materials has been a large detractor to year-to-date returns as the Fund's holdings face short-term pressure partly due to hydrocarbon price increases. Our three sector holdings – Ecolab (ECL), Sherwin-Williams (SHW), and H.B. Fuller (FUL) – are downstream, value-added manufacturers that experienced significant raw materials price pressures but were unable to raise prices fast enough to avoid a profit margin squeeze. We believe this price versus cost imbalance is a short-term phenomenon and that gross margins will eventually normalize.

The Fund's Industrial holdings underperformed slightly during the second quarter due to raw materials and transportation cost pressures. Graco (GGG), for instance, experienced margin pressure from its supply chain. We remain confident in the company's long-term strategy, and we believe that it has best-in-class technology in niche segments, such as liquid applicators and pumps. As a result, we took advantage of a rare opportunity to add to the name at a reasonable price.

Fixed income experienced a difficult first half as U.S. Treasury yields rose and credit spreads widened. The 5-year Treasury yield rose 58 basis points during the quarter, and the 10-year Treasury yield rose 68 basis points, making total year-to-date moves of 178 basis points higher on the 5-year Treasury and 151 basis points on the 10-year Treasury. Investment-grade corporate credit spreads widened by about 65 basis points as investors grew more cautious. Even with a duration that is short of the index, the Fund's fixed income portfolio underperformed due to a heavy overweight in corporate bonds.

We continue to believe the primary determinant of outperformance in fixed income will be high-quality credit decisions based on good research. For this reason, we do not make large interest rate calls, and we will maintain our strategic position of slightly short duration with an overweight to corporate credits. There are currently no securities in the Fund's portfolio that are deemed stressed or near stressed, and we continually research company credit in an attempt to pre-empt credit weakness. Over the past two years, portfolio quality has improved, which helps position us for any credit event.

Kevin V. Earley
Lead Manager
  Robert W. Thompson
Co-Manager
 

Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates.

Basis point is a unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01%, or 0.0001.

The Fund's investment objective, risks, charges and expenses must be considered carefully before investing. The summary prospectus or full prospectus contains this and other important information about the Fund and they may be obtained by calling Shareholder Services at (800) 304-7404 or by visiting www.mairsandpower.com. Read the summary prospectus or full prospectus carefully before investing.

All holdings in the portfolio are subject to change without notice and may or may not represent current or future portfolio composition. The mention of specific securities is not intended as a recommendation or an offer of a particular security, nor is it intended to be a solicitation for the purchase or sale of any security.

All investments have risks. The Balanced Fund is designed for long-term investors. The Fund's share price can fall because of weakness in the broad market, a particular industry or specific holdings. Investments in small and midcap companies generally are more volatile. International investing risks include among others political, social or economic instability, difficulty in predicting international trade patterns, taxation and foreign trading practices and greater fluctuations in price than U.S. corporations. The Balanced Fund is subject to yield and share price variances with changes in interest rates and market conditions. Investors should note that if interest rates rise significantly from current levels, bond total returns will decline and may even turn negative in the short-term. There is also a chance that some of the Balanced Fund's holdings may have their credit rating downgraded or may default.


11


MAIRS & POWER BALANCED FUND (unaudited) (continued)

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower rated and non-rated securities present a greater risk of loss to principal and interest than higher rated securities.

This commentary includes forward-looking statements such as economic predictions and portfolio manager opinions. The statements are subject to change at any time based on market and other conditions. No predictions, forecasts, outlooks, expectations or beliefs are guaranteed.

Composite Index reflects an unmanaged portfolio of 60% of the S&P 500 TR Index and 40% of the Bloomberg Barclays U.S. Government/Credit Bond Index. It is not possible to invest directly in an index.

Morningstar US Fund Allocation – 50%-70% Equity Category is designed to benchmark target-date and target-risk investment products. Index is based on well-established asset allocation methodology from Ibbotson Associates, a Morningstar company. Index has 60% global equity exposure and 40% global bond exposure. It is not possible to invest directly in an index.

S&P 500 Total Return (TR) Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. It is not possible to invest directly in an index.

Bloomberg U.S. Government/Credit Bond Index is a broad-based flagship benchmark that measures the non-securitized component of the U.S. Aggregate Index. It includes investment-grade, U.S. dollar-denominated, fixed-rate Treasuries, government-related and corporate securities. It is not possible to invest directly in an index.


12


Mairs & Power Balanced Fund
PERFORMANCE INFORMATION (unaudited)  June 30, 2022

Ten years of investment performance (through June 30, 2022)

This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund 10 years ago.

Average annual total returns for periods ended June 30, 2022

   

1 year

 

5 years

 

10 years

 

20 years

 

Mairs & Power Balanced Fund(1)

   

-10.32

%

   

6.42

%

   

8.08

%

   

7.57

%

 

Composite Index(2)

   

-10.47

%

   

7.44

%

   

8.55

%

   

7.20

%

 

S&P 500 Total Return Index(3)

   

-10.62

%

   

11.31

%

   

12.96

%

   

9.08

%

 
Bloomberg U.S. Government/
Credit Bond Index(4)
   

-10.85

%

   

1.05

%

   

1.67

%

   

3.71

%

 

Performance data quoted represents past performance and does not guarantee future results. All performance information shown includes the reinvestment of dividend and capital gain distributions, but does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. For the most recent month-end performance figures, visit the Fund's website at www.mairsandpower.com or call Shareholder Services at (800) 304-7404. Per the Prospectus dated April 20, 2022, the expense ratio for the Fund is 0.69%. See the Financial Highlights in this report for the most recent expense ratio.

(1)  Performance figures reflect the historical performance of the Mairs & Power Balanced Fund (the "Predecessor Balanced Fund"), a series of Mairs & Power Funds Trust, for periods prior to April 29, 2022.

(2)  The Composite Index reflects an unmanaged portfolio comprised of 60% of the S&P 500 Total Return Index and 40% of the Bloomberg Barclays U.S. Government/Credit Bond Index. It is not possible to invest directly in an index.

(3)  The S&P 500 Total Return Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. It tracks both the capital gains of a group of stocks over time and assumes that any cash distributions, such as dividends, are reinvested back into the index. It is not possible to invest directly in an index.

(4)  The Bloomberg U.S. Government/Credit Bond Index is a broad-based flagship benchmark that measures the non-securitized component of the U.S. Aggregate Index. It includes investment-grade, U.S. dollar-denominated, fixed-rate Treasuries, government-related and corporate securities. It is not possible to invest directly in an index.


13


Mairs & Power Balanced Fund
FUND INFORMATION (unaudited)  June 30, 2022

Portfolio Managers

Kevin V. Earley, CFA, lead manager of the Mairs & Power Balanced Fund and the Predecessor Balanced Fund since April 1, 2018, co-manager from January 1, 2015 through April 1, 2018, University of Minnesota, MBA Finance 1990

Robert W. Thompson, CFA, co-manager of the Mairs & Power Balanced Fund and the Predecessor Balanced Fund since April 1, 2018, University of Minnesota, MBA Finance 1995

General Information

Fund Symbol

 

MAPOX

 

Net Asset Value (NAV) Per Share

  $97.59  

Expense Ratio

  0.69%1  

Portfolio Turnover Rate

  6.03%  

Sales Charge

 

None2

 

Fund Inception Year

 

1961

 

Portfolio Composition

Top Ten Common Stock Holdings
(Percent of Total Net Assets)3

Alphabet Inc

   

4.1

%

 

Microsoft Corp

   

3.9

   

UnitedHealth Group Inc

   

2.9

   

Eli Lilly & Co

   

2.7

   

US Bancorp/MN

   

2.4

   

Abbott Laboratories

   

2.3

   

Johnson & Johnson

   

2.1

   

Toro Co/The

   

2.1

   

Hormel Foods Corp

   

2.1

   

Ecolab Inc

   

1.9

   

Portfolio Diversification
(Percent of Total Net Assets)

Fixed Income Securities 33.6%

 

Corporate Bonds

   

28.3

%

 

U.S. Government Obligations

   

2.2

   

Municipal Bonds

   

1.5

   

Asset Backed Securities

   

1.6

   

Common Stocks 64.8%

 

Health Care

   

15.8

   

Information Technology

   

14.0

   

Industrials

   

10.4

   

Financials

   

7.7

   

Communication Services

   

4.7

   

Consumer Staples

   

4.8

   

Materials

   

4.4

   

Consumer Discretionary

   

2.1

   

Utilities

   

0.9

   

Short-term Investments 1.6%4

   

1.6

   
     

100.0

%

 

1  Ratio has been annualized for the six month period ended June 30, 2022.

2  Although the Fund is no-load, investment management fees and other expenses still apply.

3  All holdings in the portfolio are subject to change without notice and may or may not represent current or future portfolio composition. The mention of specific securities is not intended as a recommendation or offer for a particular security, nor is it intended to be a solicitation for the purchase or sale of any security.

4  Represents short-term investments and other assets and liabilities (net).

  The Schedule of Investments and portfolio diversification utilize the Global Industry Classification Standard (GICS®) which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Mairs & Power, Inc. (the "Adviser").


14


Mairs and Power Balanced Fund
SCHEDULE OF INVESTMENTS (unaudited)  June 30, 2022

Par Value

 

Security Description

 

Fair Value

 
   

FIXED INCOME SECURITIES 33.6%

 
   

CORPORATE BONDS 28.3%

 
   

COMMUNICATION SERVICES 0.9%

 

$

1,688,000

   

Netflix Inc

   

5.875

%

 

11/15/28

 

$

1,654,240

   
  2,000,000    

Comcast Corp

   

4.250

%

 

01/15/33

   

1,973,355

   
  1,000,000    

Verizon Communications Inc

   

4.400

%

 

11/01/34

   

965,437

   
  3,000,000    

AT&T Inc

   

4.500

%

 

05/15/35

   

2,858,069

   
     

7,451,101

   
   

CONSUMER DISCRETIONARY 3.2%

 
  1,000,000    

General Motors Financial Co Inc

   

3.700

%

 

05/09/23

   

1,000,228

   
  1,000,000    

General Motors Financial Co Inc

   

4.250

%

 

05/15/23

   

1,003,881

   
  1,000,000    

General Motors Financial Co Inc

   

3.950

%

 

04/13/24

   

994,004

   
  250,000    

General Motors Co

   

4.000

%

 

04/01/25

   

247,125

   
  1,000,000    

General Motors Financial Co Inc

   

4.300

%

 

07/13/25

   

985,845

   
  1,064,000    

Block Financial LLC

   

5.250

%

 

10/01/25

   

1,084,259

   
  1,500,000    

Ford Motor Co

   

4.346

%

 

12/08/26

   

1,393,125

   
  1,000,000    

Darden Restaurants Inc

   

3.850

%

 

05/01/27

   

964,001

   
  2,245,000    

Lear Corp

   

3.800

%

 

09/15/27

   

2,126,163

   
  1,000,000    

General Motors Co

   

4.200

%

 

10/01/27

   

951,127

   
  1,000,000    

AutoNation Inc

   

3.800

%

 

11/15/27

   

948,288

   
  2,000,000    

Hasbro Inc

   

3.900

%

 

11/19/29

   

1,841,938

   
  2,000,000    

Advance Auto Parts Inc

   

3.900

%

 

04/15/30

   

1,825,243

   
  1,000,000    

Mohawk Industries Inc

   

3.625

%

 

05/15/30

   

895,416

   
  2,000,000    

Block Financial LLC

   

3.875

%

 

08/15/30

   

1,805,292

   
  1,000,000    

Kohl's Corp

   

3.375

%

 

05/01/31

   

870,613

   
  1,750,000    

Ford Motor Credit Co LLC

   

3.625

%

 

06/17/31

   

1,361,920

   
  1,000,000    

Starbucks Corp

   

3.000

%

 

02/14/32

   

871,746

   
  500,000    

Tapestry Inc

   

3.050

%

 

03/15/32

   

409,235

   
  500,000    

Kohl's Corp

   

6.875

%

 

12/15/37

   

469,530

   
  1,000,000    

General Motors Co

   

5.150

%

 

04/01/38

   

876,892

   
  1,000,000    

Ford Motor Co

   

4.750

%

 

01/15/43

   

715,178

   
  1,100,000    

Whirlpool Corp

   

5.150

%

 

03/01/43

   

1,009,962

   
  750,000    

Hasbro Inc

   

5.100

%

 

05/15/44

   

676,215

   
  1,073,000    

Kohl's Corp

   

5.550

%

 

07/17/45

   

910,209

   
     

26,237,435

   
   

CONSUMER STAPLES 1.3%

 
  430,000    

Land O' Lakes Inc (g)

   

6.000

%

 

11/15/22

   

431,169

   
  2,500,000    

Land O' Lakes Inc (h)

   

7.250

%

 

04/04/27

   

2,387,238

   
  1,949,000    

Land O' Lakes Capital Trust I (g)

   

7.450

%

 

03/15/28

   

2,025,693

   
  2,500,000    

Land O' Lakes Inc (h)

   

7.000

%

 

09/18/28

   

2,358,063

   
  250,000    

Smithfield Foods Inc (g)

   

3.000

%

 

10/15/30

   

208,073

   
  1,000,000    

Walgreens Boots Alliance Inc

   

4.500

%

 

11/18/34

   

923,889

   


15


Mairs and Power Balanced Fund
SCHEDULE OF INVESTMENTS (unaudited)
(continued)  June 30, 2022

Par Value

 

Security Description

 

Fair Value

 
    FIXED INCOME SECURITIES (continued)  
    CORPORATE BONDS (continued)  
    CONSUMER STAPLES (continued)  

$

1,000,000

    Anheuser-Busch Cos LLC / Anheuser-Busch InBev
Worldwide Inc
   

4.700

%

 

02/01/36

 

$

962,972

   
  1,000,000    

Walgreens Boots Alliance Inc

   

4.800

%

 

11/18/44

   

881,592

   
  1,000,000    

Molson Coors Brewing Co

   

4.200

%

 

07/15/46

   

826,399

   
     

11,005,088

   
   

CONSUMER, NON-CYCLICAL 0.1%

 
  1,000,000    

Wildlife Conservation Society

   

3.414

%

 

08/01/50

   

790,967

   
     

790,967

   
   

ENERGY 0.5%

 
  1,500,000    

Sunoco Logistics Partners Operations LP

   

3.450

%

 

01/15/23

   

1,495,865

   
  1,000,000    

Boardwalk Pipelines LP

   

4.950

%

 

12/15/24

   

1,008,437

   
  1,200,000    

Kinder Morgan Inc

   

5.300

%

 

12/01/34

   

1,178,293

   
  500,000    

Murphy Oil Corp

   

6.125

%

 

12/01/42

   

374,685

   
     

4,057,280

   
   

FINANCIALS 10.6%

 
  2,000,000    

OneBeacon US Holdings Inc

   

4.600

%

 

11/09/22

   

2,008,339

   
  1,000,000    

Standard Chartered PLC (b) (g)

   

3.950

%

 

01/11/23

   

997,838

   
  500,000    

First American Financial Corp

   

4.300

%

 

02/01/23

   

500,759

   
  374,000    

Assurant Inc

   

4.200

%

 

09/27/23

   

376,940

   
  500,000    

CNA Financial Corp

   

7.250

%

 

11/15/23

   

523,440

   
  500,000    

Pacific Life Insurance Co (g)

   

7.900

%

 

12/30/23

   

528,554

   
  1,000,000    

HSBC Holdings PLC (b)

   

4.250

%

 

03/14/24

   

993,993

   
  540,000    

Wintrust Financial Corp

   

5.000

%

 

06/13/24

   

537,313

   
  824,000    

Assured Guaranty US Holdings Inc

   

5.000

%

 

07/01/24

   

846,917

   
  3,088,000    

Legg Mason Inc

   

3.950

%

 

07/15/24

   

3,109,501

   
  1,500,000    

Symetra Financial Corp

   

4.250

%

 

07/15/24

   

1,500,520

   
  1,000,000    

Citigroup Inc

   

4.000

%

 

08/05/24

   

998,843

   
  3,000,000    

Synchrony Financial

   

4.250

%

 

08/15/24

   

2,987,303

   
  2,000,000    

Old Republic International Corp

   

4.875

%

 

10/01/24

   

2,034,503

   
  1,627,000    

Associated Banc-Corp

   

4.250

%

 

01/15/25

   

1,625,086

   
  4,000,000    

Kemper Corp

   

4.350

%

 

02/15/25

   

3,992,026

   
  1,050,000    

TCF National Bank

   

4.600

%

 

02/27/25

   

1,047,369

   
  1,000,000    

BBVA USA

   

3.875

%

 

04/10/25

   

993,331

   
  250,000    

Liberty Mutual Insurance Co (g)

   

8.500

%

 

05/15/25

   

273,678

   
  1,000,000    

Prudential Insurance Co of America/The (g)

   

8.300

%

 

07/01/25

   

1,108,692

   
  1,000,000    

Synchrony Financial

   

4.500

%

 

07/23/25

   

975,076

   
  2,000,000    

Janus Capital Group Inc (b)

   

4.875

%

 

08/01/25

   

2,009,375

   
  2,000,000    

HSBC Holdings PLC (b)

   

4.250

%

 

08/18/25

   

1,974,660

   
  4,000,000    

Capital One Financial Corp

   

4.200

%

 

10/29/25

   

3,957,159

   
  20,000    

Wells Fargo & Co (h)

   

4.700

%

 

12/15/25

   

386,600

   


16


Mairs and Power Balanced Fund
SCHEDULE OF INVESTMENTS (unaudited)
(continued)  June 30, 2022

Par Value

 

Security Description

 

Fair Value

 
    FIXED INCOME SECURITIES (continued)  
    CORPORATE BONDS (continued)  
    FINANCIALS (continued)  

$

1,520,000

   

Legg Mason Inc

   

4.750

%

 

03/15/26

 

$

1,556,677

   
  2,000,000    

Hanover Insurance Group Inc/The

   

4.500

%

 

04/15/26

   

1,998,506

   
  3,000,000    

JPMorgan Chase & Co (f) (h)

   

3.650

%

 

06/01/26

   

2,497,500

   
  1,000,000    

Wells Fargo & Co

   

4.100

%

 

06/03/26

   

986,555

   
  3,290,000    

Old Republic International Corp

   

3.875

%

 

08/26/26

   

3,206,268

   
  500,000    

Morgan Stanley

   

4.350

%

 

09/08/26

   

496,471

   
  4,000,000    

PNC Financial Services Group Inc/The (f) (h)

   

3.400

%

 

09/15/26

   

3,046,536

   
  2,500,000    

M&T Bank Corp (f) (h)

   

5.125

%

 

11/01/26

   

2,248,596

   
  1,000,000    

Citigroup Inc

   

4.300

%

 

11/20/26

   

987,131

   
  1,000,000    

JPMorgan Chase & Co

   

4.125

%

 

12/15/26

   

993,094

   
  2,000,000    

Bank of New York Mellon Corp/The (f) (h)

   

3.750

%

 

12/20/26

   

1,639,008

   
  4,000,000    

Mercury General Corp

   

4.400

%

 

03/15/27

   

3,916,679

   
  450,000    

Athene Holding Ltd (b)

   

4.125

%

 

01/12/28

   

424,273

   
  500,000    

Citigroup Inc (f)

   

3.070

%

 

02/24/28

   

464,469

   
  250,000    

Provident Cos Inc

   

7.250

%

 

03/15/28

   

270,755

   
  2,000,000    

E*TRADE Financial Corp

   

4.500

%

 

06/20/28

   

2,006,742

   
  500,000    

Farmers Exchange Capital (g)

   

7.050

%

 

07/15/28

   

551,093

   
  1,000,000    

Lazard Group LLC

   

4.375

%

 

03/11/29

   

957,389

   
  2,500,000    

Wintrust Financial Corp

   

4.850

%

 

06/06/29

   

2,449,646

   
  2,300,000    

Assurant Inc

   

3.700

%

 

02/22/30

   

2,053,511

   
  500,000    

Park National Corp (f)

   

4.500

%

 

09/01/30

   

489,271

   
  500,000    

Goldman Sachs Group Inc/The

   

4.250

%

 

11/15/30

   

476,564

   
  6,000,000    

Charles Schwab Corp (f) (h)

   

4.000

%

 

12/01/30

   

4,591,540

   
  500,000    

Goldman Sachs Group Inc/The

   

4.000

%

 

02/15/31

   

464,327

   
  1,000,000    

SVB Financial Group (f) (h)

   

4.100

%

 

02/15/31

   

692,459

   
  2,000,000    

Synchrony Financial

   

2.875

%

 

10/28/31

   

1,521,955

   
  1,000,000    

Blackstone Holdings Finance Co LLC (g)

   

2.550

%

 

03/30/32

   

838,667

   
  2,000,000    

Goldman Sachs Group Inc/The (f)

   

2.650

%

 

10/21/32

   

1,654,213

   
  500,000    

Goldman Sachs Group Inc/The

   

4.300

%

 

12/15/32

   

463,644

   
  1,700,000    

Morgan Stanley (f)

   

2.943

%

 

01/21/33

   

1,459,567

   
  500,000    

American Express Co (f)

   

4.989

%

 

05/26/33

   

502,161

   
  538,000    

Bank of America Corp

   

4.000

%

 

08/15/34

   

499,165

   
  3,000,000    

Fulton Financial Corp (f)

   

3.750

%

 

03/15/35

   

2,648,999

   
  2,150,000    

Bank of Montreal (b) (f)

   

3.088

%

 

01/10/37

   

1,766,659

   
  500,000    

Swiss Re Treasury US Corp (g)

   

4.250

%

 

12/06/42

   

465,897

   
  500,000    

Principal Financial Group Inc

   

4.350

%

 

05/15/43

   

450,210

   
     

88,024,012

   
   

HEALTH CARE 0.8%

 
  500,000    

Wyeth LLC

   

6.450

%

 

02/01/24

   

523,230

   
  2,000,000    

AbbVie Inc

   

3.800

%

 

03/15/25

   

1,988,178

   


17


Mairs and Power Balanced Fund
SCHEDULE OF INVESTMENTS (unaudited)
(continued)  June 30, 2022

Par Value

 

Security Description

 

Fair Value

 
    FIXED INCOME SECURITIES (continued)  
    CORPORATE BONDS (continued)  
    HEALTH CARE (continued)  

$

43,000

   

Bristol-Myers Squibb Co

   

3.875

%

 

08/15/25

 

$

43,272

   
  1,000,000    

Cigna Corp

   

4.500

%

 

02/25/26

   

1,012,654

   
  700,000    

Zimmer Biomet Holdings Inc

   

4.250

%

 

08/15/35

   

644,098

   
  1,400,000    

CVS Health Corp

   

4.780

%

 

03/25/38

   

1,331,665

   
  1,000,000    

UnitedHealth Group Inc

   

3.500

%

 

08/15/39

   

877,598

   
     

6,420,695

   
   

INDUSTRIALS 2.6%

 
  500,000    

Penske Truck Leasing Co Lp / PTL Finance Corp (g)

   

4.875

%

 

07/11/22

   

500,120

   
  1,000,000    

GATX Corp

   

3.900

%

 

03/30/23

   

1,000,009

   
  1,500,000    

Hillenbrand Inc

   

5.000

%

 

09/15/26

   

1,418,520

   
  500,000    

Toro Co/The

   

7.800

%

 

06/15/27

   

565,519

   
  2,000,000    

Kennametal Inc

   

4.625

%

 

06/15/28

   

1,970,183

   
  3,000,000    

Steelcase Inc

   

5.125

%

 

01/18/29

   

2,797,020

   
  1,000,000    

Oshkosh Corp

   

3.100

%

 

03/01/30

   

860,162

   
  2,000,000    

GATX Corp

   

4.000

%

 

06/30/30

   

1,862,809

   
  1,000,000    

Flowserve Corp

   

3.500

%

 

10/01/30

   

862,039

   
  3,000,000    

Hillenbrand Inc

   

3.750

%

 

03/01/31

   

2,428,455

   
  4,000,000    

United Rentals North America Inc

   

3.750

%

 

01/15/32

   

3,293,780

   
  2,000,000    

Eaton Corp

   

4.000

%

 

11/02/32

   

1,939,980

   
  1,400,000    

Leidos Holdings Inc

   

5.950

%

 

12/01/40

   

1,418,634

   
  1,000,000    

FedEx Corp

   

4.100

%

 

04/15/43

   

861,266

   
     

21,778,496

   
   

INFORMATION TECHNOLOGY 4.9%

 
  696,000    

Dell International LLC / EMC Corp.

   

5.450

%

 

06/15/23

   

703,329

   
  1,031,000    

Arrow Electronics Inc

   

4.000

%

 

04/01/25

   

1,026,826

   
  2,000,000    

Hewlett Packard Enterprise Co

   

4.900

%

 

10/15/25

   

2,035,012

   
  1,500,000    

Dell International LLC / EMC Corp.

   

6.020

%

 

06/15/26

   

1,561,397

   
  2,500,000    

Motorola Solutions Inc

   

4.600

%

 

02/23/28

   

2,424,197

   
  1,500,000    

Trimble Inc

   

4.900

%

 

06/15/28

   

1,466,190

   
  1,000,000    

Fiserv Inc

   

4.200

%

 

10/01/28

   

966,226

   
  3,000,000    

Entegris Escrow Corp (g)

   

4.750

%

 

04/15/29

   

2,802,675

   
  1,000,000    

Juniper Networks Inc

   

3.750

%

 

08/15/29

   

922,033

   
  1,000,000    

Dell International LLC / EMC Corp.

   

5.300

%

 

10/01/29

   

988,859

   
  1,000,000    

Citrix Systems Inc

   

3.300

%

 

03/01/30

   

978,657

   
  2,000,000    

Avnet Inc

   

3.000

%

 

05/15/31

   

1,659,026

   
  1,000,000    

HP Inc

   

2.650

%

 

06/17/31

   

807,098

   
  1,000,000    

Autodesk Inc

   

2.400

%

 

12/15/31

   

819,872

   
  1,000,000    

Magallanes Inc (g)

   

4.279

%

 

03/15/32

   

897,934

   
  1,000,000    

Avnet Inc

   

5.500

%

 

06/01/32

   

985,140

   
  2,000,000    

Broadcom Inc

   

4.300

%

 

11/15/32

   

1,824,331

   


18


Mairs and Power Balanced Fund
SCHEDULE OF INVESTMENTS (unaudited)
(continued)  June 30, 2022

Par Value

 

Security Description

 

Fair Value

 
    FIXED INCOME SECURITIES (continued)  
    CORPORATE BONDS (continued)  
    INFORMATION TECHNOLOGY (continued)  

$

3,000,000

   

Intel Corp

   

4.000

%

 

12/15/32

 

$

2,950,315

   
  2,000,000    

HP Inc

   

5.500

%

 

01/15/33

   

1,958,490

   
  2,850,000    

Leidos Inc

   

5.500

%

 

07/01/33

   

2,763,032

   
  1,000,000    

Broadcom Inc (g)

   

3.469

%

 

04/15/34

   

817,936

   
  1,500,000    

Western Union Co/The

   

6.200

%

 

11/17/36

   

1,531,683

   
  1,500,000    

Broadcom Inc (g)

   

4.926

%

 

05/15/37

   

1,351,730

   
  3,000,000    

Oracle Corp

   

3.600

%

 

04/01/40

   

2,250,016

   
  1,000,000    

Dell, Inc.

   

5.400

%

 

09/10/40

   

885,730

   
  1,000,000    

Analog Devices Inc

   

2.800

%

 

10/01/41

   

789,266

   
  570,000    

Discovery Communications LLC

   

4.950

%

 

05/15/42

   

477,293

   
  2,000,000    

Motorola Solutions Inc

   

5.500

%

 

09/01/44

   

1,874,581

   
     

40,518,874

   
   

MATERIALS 2.5%

 
  750,000    

RPM International Inc

   

3.450

%

 

11/15/22

   

750,351

   
  756,000    

Eastman Chemical Co

   

3.800

%

 

03/15/25

   

747,776

   
  865,000    

Union Carbide Corp

   

7.500

%

 

06/01/25

   

946,085

   
  2,000,000    

DowDuPont Inc

   

4.493

%

 

11/15/25

   

2,018,638

   
  200,000    

Worthington Industries Inc

   

4.550

%

 

04/15/26

   

194,054

   
  1,500,000    

Cabot Corp

   

3.400

%

 

09/15/26

   

1,447,863

   
  782,000    

HB Fuller Co

   

4.000

%

 

02/15/27

   

705,161

   
  3,200,000    

HB Fuller Co

   

4.250

%

 

10/15/28

   

2,677,504

   
  4,000,000    

Cabot Corp

   

4.000

%

 

07/01/29

   

3,766,387

   
  1,175,000    

Albemarle Wodgina Pty Ltd (b)

   

3.450

%

 

11/15/29

   

1,056,482

   
  3,000,000    

Freeport McMoRan Inc

   

4.250

%

 

03/01/30

   

2,736,654

   
  1,250,000    

Dow Chemical Co/The

   

4.250

%

 

10/01/34

   

1,191,503

   
  1,000,000    

Alcoa Inc

   

5.950

%

 

02/01/37

   

944,690

   
  1,000,000    

Newmont Mining Corp

   

4.875

%

 

03/15/42

   

960,937

   
  325,000    

Albemarle Corp

   

5.450

%

 

12/01/44

   

321,164

   
  250,000    

Steel Dynamics Inc

   

3.250

%

 

10/15/50

   

174,071

   
     

20,639,320

   
   

REAL ESTATE 0.0%

 
  350,000    

CBRE Services Inc

   

4.875

%

 

03/01/26

   

354,233

   
     

354,233

   
   

UTILITIES 0.9%

 
  75,000    

National Fuel Gas Co

   

3.750

%

 

03/01/23

   

75,062

   
  250,000    

Jersey Central Power & Light Co (g)

   

4.300

%

 

01/15/26

   

247,491

   
  2,000,000    

National Fuel Gas Co

   

3.950

%

 

09/15/27

   

1,873,063

   
  416,000    

Toledo Edison Co (g)

   

2.650

%

 

05/01/28

   

390,833

   
  1,000,000    

National Fuel Gas Co

   

4.750

%

 

09/01/28

   

985,014

   
  2,000,000    

Alliant Energy Finance LLC (g)

   

3.600

%

 

03/01/32

   

1,816,253

   


19


Mairs and Power Balanced Fund
SCHEDULE OF INVESTMENTS (unaudited)
(continued)  June 30, 2022

Par Value

 

Security Description

 

Fair Value

 
    FIXED INCOME SECURITIES (continued)  
    CORPORATE BONDS (continued)  
    UTILITIES (continued)  

$

1,165,000

   

Duke Energy Progress LLC

   

5.700

%

 

04/01/35

 

$

1,248,647

   
  1,021,000    

Northern Natural Gas Co (g)

   

4.100

%

 

09/15/42

   

874,748

   
     

7,511,111

   
   

TOTAL CORPORATE BONDS

   

234,788,612

   
   

US GOVERNMENT OBLIGATIONS 2.2%

 
  1,000,000    

United States Treasury Note/Bond

   

0.875

%

 

01/31/24

   

968,477

   
  1,000,000    

United States Treasury Note/Bond

   

0.250

%

 

03/15/24

   

955,703

   
  3,000,000    

United States Treasury Note/Bond

   

0.750

%

 

03/31/26

   

2,759,297

   
  1,000,000    

United States Treasury Note/Bond

   

0.750

%

 

04/30/26

   

918,008

   
  1,000,000    

United States Treasury Note/Bond

   

1.125

%

 

10/31/26

   

923,184

   
  1,000,000    

United States Treasury Note/Bond

   

1.250

%

 

06/30/28

   

901,328

   
  1,000,000    

United States Treasury Note/Bond

   

1.000

%

 

07/31/28

   

886,211

   
  7,000,000    

United States Treasury Note/Bond

   

2.625

%

 

02/15/29

   

6,829,922

   
  1,000,000    

United States Treasury Note/Bond

   

3.250

%

 

05/15/42

   

981,562

   
  2,000,000    

United States Treasury Note/Bond

   

3.000

%

 

02/15/49

   

1,921,562

   
     

18,045,254

   
   

ASSET BACKED SECURITIES 1.6%

 
  36,881    

Southwest Airlines Co 2007-1 Pass Through Trust

   

6.150

%

 

08/01/22

   

37,010

   
  29,975    

United Airlines 2014-2 Class B Pass Through Trust

   

4.625

%

 

09/03/22

   

30,016

   
  237,106    

American Airlines 2014-1 Class B Pass Through Trust

   

4.375

%

 

10/01/22

   

237,566

   
  1,000,000    

United Airlines 2015-1 Class A Pass Through Trust

   

3.700

%

 

12/01/22

   

1,000,955

   
  295,646    

US Airways 2010-1 Class A Pass Through Trust

   

6.250

%

 

04/22/23

   

295,679

   
  848,037    

Delta Air Lines 2015-1 Class B Pass Through Trust

   

4.250

%

 

07/30/23

   

841,099

   
  522,451    

American Airlines 2015-2 Class B Pass Through Trust

   

4.400

%

 

09/22/23

   

504,470

   
  173,542    

US Airways 2011-1 Class A Pass Through Trust

   

7.125

%

 

10/22/23

   

174,840

   
  1,991,384    

American Airlines 2016-1 Class B Pass Through Trust

   

5.250

%

 

01/15/24

   

1,944,896

   
  626,327    

Spirit Airlines Pass Through Trust 2015-1B

   

4.450

%

 

04/01/24

   

604,972

   
  1,071,871    

Continental Airlines 2012-2 Class A Pass Through Trust

   

4.000

%

 

10/29/24

   

1,029,465

   
  678,508    

American Airlines 2017-1 Class B Pass Through Trust

   

4.950

%

 

02/15/25

   

638,868

   
  659,435    

United Airlines 2013-1 Class A Pass Through Trust

   

4.300

%

 

08/15/25

   

634,615

   
  602,274    

American Airlines 2016-3 Class B Pass Through Trust

   

3.750

%

 

10/15/25

   

524,621

   
  476,255    

US Airways 2013-1 Class A Pass Through Trust

   

3.950

%

 

11/15/25

   

424,343

   
  1,558,677    

Hawaiian Airlines 2013-1 Class A Pass Through Certificates

   

3.900

%

 

01/15/26

   

1,307,905

   
  526,903    

United Airlines 2014-1 Class A Pass Through Trust

   

4.000

%

 

04/11/26

   

495,074

   
  441,577    

United Airlines 2014-2 Class A Pass Through Trust

   

3.750

%

 

09/03/26

   

413,071

   
  1,167,568    

American Airlines 2014-1 Class A Pass Through Trust

   

3.700

%

 

10/01/26

   

998,233

   
  302,746    

American Airlines 2015-1 Class A Pass Through Trust

   

3.375

%

 

05/01/27

   

266,238

   
  448,085    

American Airlines 2015-2 Class A Pass Through Trust

   

4.000

%

 

09/22/27

   

393,291

   


20


Mairs and Power Balanced Fund
SCHEDULE OF INVESTMENTS (unaudited)
(continued)  June 30, 2022

Par Value/Shares

 

Security Description

 

Fair Value

 
    FIXED INCOME SECURITIES (continued)  
    ASSET BACKED SECURITIES (continued)  

$

137,431

   

American Airlines 2015-2 Class AA Pass Through Trust

   

3.600

%

 

09/22/27

 

$

126,437

   
  85,814    

Spirit Airlines Pass Through Trust 2015-1A

   

4.100

%

 

04/01/28

   

80,279

   
  761,295    

British Airways 2018-1 Class A Pass Through Trust (b) (g)

   

4.125

%

 

09/20/31

   

676,429

   
     

13,680,372

   
   

MUNICIPAL BONDS 1.5%

 
  500,000    

BAC Capital Trust XIV (f) (h)

   

4.000

%

 

07/18/22

   

355,609

   
  650,000    

Glendale Community College District/CA

   

2.113

%

 

08/01/31

   

554,336

   
  500,000    

Socorro Independent School District

   

2.125

%

 

08/15/31

   

434,036

   
  920,000    

Pierre School District No 32-2

   

2.040

%

 

08/01/33

   

769,198

   
  500,000    

Redondo Beach Unified School District

   

2.040

%

 

08/01/34

   

392,670

   
  400,000    

County of Hennepin MN

   

4.800

%

 

12/01/35

   

438,468

   
  500,000     DeKalb Kane & LaSalle Counties Etc Community College
District No 523 Kishwaukee
   

3.017

%

 

02/01/36

   

431,938

   
  305,000    

State of California

   

4.600

%

 

04/01/38

   

308,708

   
  1,000,000    

Crowley Independent School District

   

3.010

%

 

08/01/38

   

858,900

   
  500,000    

Idaho Bond Bank Authority

   

2.354

%

 

09/15/38

   

415,386

   
  850,000    

Worthington Independent School District No 518

   

3.300

%

 

02/01/39

   

745,368

   
  750,000    

Allen Independent School District

   

3.148

%

 

02/15/39

   

640,116

   
  610,000    

Rockwall Independent School District

   

3.091

%

 

02/15/39

   

503,864

   
  945,000    

City of Minnetonka MN

   

3.050

%

 

02/01/40

   

831,540

   
  885,000    

Massachusetts Development Finance Agency

   

2.550

%

 

05/01/40

   

681,060

   
  750,000    

Woodbury County Law Enforcement Center Authority

   

3.090

%

 

06/01/40

   

615,103

   
  505,000    

Village of Ashwaubenon WI

   

2.970

%

 

06/01/40

   

414,644

   
  300,000    

Desert Community College District

   

2.457

%

 

08/01/40

   

222,440

   
  800,000    

Utah Transit Authority

   

3.443

%

 

12/15/42

   

672,511

   
  600,000    

San Diego Community College District