CornerCap Fundametrics® Large-Cap ETF
Ticker: FUNL

 

SEMI ANNUAL REPORT TO SHAREHOLDERS
SEPTEMBER 30, 2021


TABLE OF CONTENTS

 

EXPENSE EXAMPLE   1
     
ALLOCATION OF PORTFOLIO HOLDINGS   2
     
SCHEDULE OF INVESTMENTS   3
     
STATEMENT OF ASSETS AND LIABILITIES   8
     
STATEMENT OF OPERATIONS   9
     
STATEMENTS OF CHANGES IN NET ASSETS   10
     
FINANCIAL HIGHLIGHTS   11
     
NOTES TO FINANCIAL STATEMENTS   12
     
ADDITIONAL INFORMATION   17
     
PRIVACY NOTICE   20


CornerCap Fundametrics® Large-Cap ETF
Expense Example (Unaudited)
September 30, 2021

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs, including management fees, shareholder servicing fees, and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2021 to September 30, 2021 (the “period”).

 

Actual Expenses

 

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 equals 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.

 

Hypothetical Example for Comparison Purposes

 

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of 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). Therefore, the second line of the table is useful in comparing the ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs could have been higher.

 

Expenses Paid During the Period

 

    Beginning Account Value   Ending Account Value   Expenses Paid During the Period (1)  
                           
Actual Fund Return     $  1,000.00       $  1,047.90       $  2.57    
Hypothetical 5% Return     1,000.00       1,022.56       2.54    

(1) Expenses are equal to the Fund’s annualized expense ratio of 0.50%, multiplied by the average account value over the period, multiplied by 183/365. The expense ratios reflect an expense waiver. Assumes all dividends and distributions were reinvested.

1  

CornerCap Fundametrics® Large-Cap ETF
Allocation of Portfolio Holdings (Unaudited)
September 30, 2021
(Calculated as a percentage of Total Investments)

 

2  

CornerCap Fundametrics® Large-Cap ETF
Schedule of Investments (Unaudited)
September 30, 2021

Security Description   Shares     Value  
Common Stocks ― 99.9%                
Aerospace/Defense ― 2.8%                
General Dynamics Corp.     2,252     $ 441,460  
L3Harris Technologies, Inc.     3,993       879,418  
Lockheed Martin Corp.     2,055       709,180  
Northrop Grumman Corp.     2,391       861,119  
Total Aerospace/Defense             2,891,177  
                 
Agriculture ― 1.5%                
Altria Group, Inc.     15,391       700,598  
Philip Morris International, Inc.     8,690       823,725  
Total Agriculture             1,524,323  
                 
Apparel ― 0.7%                
VF Corp.     10,521       704,802  
Total Apparel             704,802  
                 
Auto Manufacturers ― 1.1%                
Cummins, Inc.     3,072       689,848  
PACCAR, Inc.     5,190       409,595  
Total Auto Manufacturers             1,099,443  
                 
Banks ― 11.0%                
Bank of New York Mellon Corp./The     17,400       902,016  
Citigroup, Inc.     11,833       830,440  
Citizens Financial Group, Inc.     18,549       871,432  
Comerica, Inc.     11,544       929,292  
Goldman Sachs Group, Inc./The     2,246       849,055  
Huntington Bancshares, Inc./OH     52,747       815,469  
JPMorgan Chase & Co.     5,152       843,331  
KeyCorp     39,728       858,919  
M&T Bank Corp.     6,040       902,014  
Regions Financial Corp.     38,318       816,557  
Truist Financial Corp.     13,756       806,789  
US Bancorp     13,860       823,838  
Wells Fargo & Co.     20,704       960,873  
Total Banks             11,210,025  
                 
Beverages ― 1.5%                
Coca-Cola Co/The     14,689       770,732  
Constellation Brands, Inc. - Class A     3,444       725,616  
Total Beverages             1,496,348  
                 
Biotechnology ― 1.5%                
Amgen, Inc.     3,174       674,951  
Gilead Sciences, Inc.     11,942       834,149  
Total Biotechnology             1,509,100  
                 
Chemicals ― 3.6%                
CF Industries Holdings, Inc.     17,397       971,101  
Dow, Inc.     12,641       727,616  
Eastman Chemical Co.     6,920       697,121  
FMC Corp.     6,668       610,522  
LyondellBasell Industries NV - Class A     7,638       716,826  
Total Chemicals             3,723,186  

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

3

CornerCap Fundametrics® Large-Cap ETF
Schedule of Investments (Unaudited) (Continued)
September 30, 2021

Security Description   Shares     Value  
Commercial Services ― 1.6%                
FleetCor Technologies, Inc.*     3,306     $ 863,759  
Global Payments, Inc.     4,569       719,983  
Total Commercial Services             1,583,742  
                 
Computers ― 2.4%                
Leidos Holdings, Inc.     7,840       753,659  
NetApp, Inc.     9,106       817,355  
Western Digital Corp.*     14,962       844,455  
Total Computers             2,415,469  
                 
Diversified Financial Services ― 4.5%                
CBOE Global Markets, Inc.     7,498       928,702  
Capital One Financial Corp.     5,803       939,912  
Discover Financial Services     7,823       961,056  
Synchrony Financial     19,030       930,186  
Visa, Inc. - Class A     3,619       806,132  
Total Diversified Financial Services             4,565,988  
                 
Electric ― 5.0%                
Ameren Corp.     10,159       822,879  
American Electric Power Co., Inc.     9,283       753,594  
Avangrid, Inc.     7,259       352,787  
Duke Energy Corp.     7,789       760,129  
Edison International     13,450       746,071  
PPL Corp.     27,932       778,744  
Southern Co./The     13,538       838,950  
Total Electric             5,053,154  
                 
Electrical Components & Equipment ― 0.8%                
Emerson Electric Co.     8,925       840,735  
Total Electrical Components & Equipment             840,735  
                 
Electronics ― 0.8%                
TE Connectivity Ltd.     5,780       793,132  
Total Electronics             793,132  
                 
Entertainment ― 0.9%                
Caesars Entertainment, Inc.*     8,385       941,468  
Total Entertainment             941,468  
                 
Food ― 2.8%                
Campbell Soup Co.     7,600       317,756  
General Mills, Inc.     14,572       871,697  
Sysco Corp.     10,600       832,100  
Tyson Foods, Inc. - Class A     10,792       851,921  
Total Food             2,873,474  
                 
Forest Products & Paper ― 0.8%                
International Paper Co.     13,946       779,860  
Total Forest Products & Paper             779   ,860  

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

4

CornerCap Fundametrics® Large-Cap ETF
Schedule of Investments (Unaudited) (Continued)
September 30, 2021

Security Description   Shares     Value  
Health Care ― 5.7%                
Abbott Laboratories     6,914     $ 816,751  
Boston Scientific Corp.*     19,797       858,992  
HCA Healthcare, Inc.     3,647       885,200  
Medtronic Plc     6,407       803,117  
Stryker Corp.     3,054       805,401  
Universal Health Services, Inc. - Class B     5,735       793,552  
Zimmer Biomet Holdings, Inc.     5,632       824,299  
Total Health Care             5,787,312  
                 
Home Builders ― 1.9%                
DR Horton, Inc.     9,132       766,814  
Lennar Corp. - Class A     4,301       402,918  
NVR, Inc.*     169       810,199  
Total Home Builders             1,979,931  
                 
Insurance ― 4.1%                
American International Group, Inc.     17,044       935,545  
Fidelity National Financial, Inc.     18,982       860,644  
Principal Financial Group, Inc.     12,807       824,771  
Prudential Financial, Inc.     8,167       859,168  
Travelers Cos, Inc./The     4,904       745,457  
Total Insurance             4,225,585  
                 
Internet ― 4.8%                
Alphabet, Inc. - Class A*     577       1,542,621  
Booking Holdings, Inc.*     391       928,183  
Facebook, Inc. - Class A*     2,638       895,311  
Pinterest, Inc. - Class A*     15,241       776,529  
Roku, Inc. - Class A*     2,551       799,356  
Total Internet             4,942,000  
                 
Machinery ― 1.4%                
Caterpillar, Inc.     3,647       700,114  
Deere & Co.     2,240       750,557  
Total Machinery             1,450,671  
                 
Miscellaneous Manufacturing― 2.3%                
3M Co.     4,068       713,608  
Parker-Hannifin Corp.     2,750       768,955  
Textron, Inc.     11,675       815,032  
Total Miscellaneous Manufacturing             2,297,595  
                 
Oil and Gas ― 5.2%                
Diamondback Energy, Inc.     10,460       990,248  
EOG Resources, Inc.     11,517       924,470  
Exxon Mobil Corp.     13,805       812,010  
Marathon Petroleum Corp.     14,149       874,550  
Occidental Petroleum Corp.     32,882       972,649  
Schlumberger NV     26,029       771,500  
Total Oil and Gas             5,345,427  

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

5

CornerCap Fundametrics® Large-Cap ETF
Schedule of Investments (Unaudited) (Continued)
September 30, 2021

Security Description   Shares     Value  
Pharmaceuticals ― 5.0%                
AbbVie, Inc.     6,927     $ 747,215  
Bristol-Myers Squibb Co.     12,865       761,222  
Cigna Corp.     3,316       663,731  
Johnson & Johnson     5,068       818,482  
Merck & Co., Inc.     10,393       780,618  
Pfizer, Inc.     30,097       1,294,472  
Total Pharmaceuticals             5,065,740  
                 
Pipelines ― 0.8%                
Kinder Morgan, Inc.     50,698       848,178  
Total Pipelines             848,178  
                 
Private Equity ― 0.8%                
Carlyle Group Inc/The     17,161       811,372  
Total Private Equity             811,372  
                 
Real Estate Investment Trusts (REITs) ― 5.4%                
Boston Properties, Inc.     3,655       396,019  
Cousins Properties, Inc.     11,263       419,997  
Gaming and Leisure Properties, Inc.     8,555       396,268  
Healthcare Trust of America, Inc. - Class A     16,242       481,738  
Host Hotels & Resorts, Inc.*     26,790       437,481  
Invitation Homes, Inc.     11,629       445,739  
Lamar Advertising Co. - Class A     4,084       463,330  
Medical Properties Trust, Inc.     21,764       436,803  
National Retail Properties, Inc.     9,149       395,145  
PS Business Parks, Inc.     2,743       429,938  
Public Storage     1,559       463,179  
Spirit Realty Capital, Inc.     8,344       384,158  
Sun Communities, Inc.     2,182       403,888  
Total Real Estate Investment Trusts (REITs)             5,553,683  
                 
Retail ― 4.0%                
Best Buy Co., Inc.     6,675       705,614  
Darden Restaurants, Inc.     5,724       867,015  
McDonald's Corp.     3,675       886,079  
O'Reilly Automotive, Inc.*     1,354       827,375  
Starbucks Corp.     7,198       794,012  
Total Retail             4,080,095  
                 
Semiconductors ― 3.4%                
Broadcom, Inc.     887       430,133  
Intel Corp.     10,230       545,054  
Micron Technology, Inc.     11,961       848,992  
ON Semiconductor Corp.*     19,956       913,386  
Qorvo, Inc.*     4,510       754,027  
Total Semiconductors             3,491,592  

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

6

CornerCap Fundametrics® Large-Cap ETF
Schedule of Investments (Unaudited) (Continued)
September 30, 2021

Security Description   Shares     Value  
Software ― 6.6%                
Activision Blizzard, Inc.     5,055     $ 391,206  
Autodesk, Inc.*     2,891       824,426  
Cerner Corp.     10,158       716,342  
Fidelity National Information Services, Inc.     6,390       777,535  
Fiserv, Inc.*     7,663       831,436  
Oracle Corp.     9,126       795,148  
SS&C Technologies Holdings, Inc.     10,809       750,145  
Take-Two Interactive Software, Inc. *     5,295       815,801  
VMware, Inc. - Class A *     5,341       794,207  
Total Software             6,696,246  
                 
Telecommunications ― 2.2%                
AT&T, Inc.     26,797       723,787  
Cisco Systems, Inc.     13,805       751,406  
Verizon Communications, Inc.     14,109       762,027  
Total Telecommunications             2,237,220  
                 
Transportation ― 2.3%                
CSX Corp.     23,769       706,890  
FedEx Corp.     2,799       613,793  
Norfolk Southern Corp.     1,666       398,590  
Union Pacific Corp.     3,363       659,182  
Total Transportation             2,378,455  
                 
Total Common Stocks (Cost ― $93,238,087)           $ 101,196,528  
                 
Short-Term Investment ― 0.7%                
First American Government Obligations Fund - Class X - 0.03% (a)     716,128       716,128  
Total Short-Term Investment (Cost ― $716,128 )           $ 716,128  
                 
Total Investments ― 99.9% (Cost ― $93,954,215)             101,912,656  
Other Assets in Excess of Liabilities ― 0.1%             61,778  
Total Net Assets ― 100.0%           $ 101,974,434  

PLC - Public Limited Company

* Non-income producing security.

(a) The rate reported is the annualized seven-day yield at period end.

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

7

CornerCap Fundametrics® Large-Cap ETF

Statement of Assets and Liabilities (Unaudited)

September 30, 2021

 

Assets:      
Investments in securities at value (cost $93,954,215)   $ 101,912,656  
Receivables:        
Dividends and interest     145,503  
Total assets     102,058,159  
         
Liabilities:        
Payables:        
Due to Investment Adviser     83,725  
Total liabilities     83,725  
         
Net Assets   $ 101,974,434  
         
Components of Net Assets:        
Paid-in capital   $ 85,231,164  
Total accumulated income     16,743,270  
Net Assets   $ 101,974,434  
         
Net Assets   $ 101,974,434  
Shares Outstanding (unlimited number of shares authorized, no par value)     3,045,000  
Net asset value, offering and redemption price per share   $ 33.49  

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


8


CornerCap Fundametrics® Large-Cap ETF 

Statement of Operations (Unaudited)

For the Six Months Ended September 30, 2021

 

Investment Income:      
Dividend income   $ 1,119,195  
Interest income     248  
Total investment income     1,119,443  
         
Expenses:        
Advisory fees     258,430  
Total expenses     258,430  
         
Net investment income     861,013  
         
Realized and Unrealized Gain on Investments and In-Kind Redemptions        
Net realized gain (loss) on:        
Investments     (244,328 )
In-Kind Redemptions     7,813,873  
Net realized gain     7,569,545  
Net change in unrealized appreciation/depreciation on investments     (3,870,653 )
Net realized and unrealized gain on investments and in-kind redemptions     3,698,892  
         
Net Increase in Net Assets Resulting from Operations   $ 4,559,905  

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


9



CornerCap Fundametrics® Large-Cap ETF

Statement of Changes in Net Assets

 

 

    For the Six Months
Ended
September 30, 2021
(Unaudited)
   

For the Period
Ended
March 31, 2021 *

 

 
Operations:            
Net investment income
  $ 861,013     $ 603,309  
Net realized gain on investments and in-kind redemptions
    7,569,545       3,138,598  
Net change in unrealized appreciation/depreciation on investments
    (3,870,653 )     11,829,094  
Net increase in net assets resulting from operations
    4,559,905       15,571,001  
                 
Distributions to shareholders:                
Net Investment Income
          (259,883 )
Total distributions to shareholders
          (259,883 )
                 
Capital Transactions:                
Proceeds from shares sold
    41,552,004       96,397,320  
Cost of shares repurchased
    (40,972,643 )     (14,873,270 )
Net increase in net assets from capital transactions
    579,361       81,524,050  
Total Increase in Net Assets
    5,139,266       96,835,168  
                 
Net Assets:                
Beginning of period
    96,835,168        
End of period
  $ 101,974,434     $ 96,835,168  
                 
Capital Share Transactions:                
Shares sold
    1,230,000       3,540,000  
Shares repurchased
    (1,215,000 )     (510,000 )
Net increase in shares outstanding     15,000       3,030,000  

* Commencement of operations on August 19, 2020.

 

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


10


 

CornerCap Fundametrics® Large-Cap ETF

Financial Highlights

 

For a capital share outstanding throughout the period:

 

    For the Period
Ended
September 30, 2021
(Unaudited)
   

For the Period
Ended
March 31, 2021 *

 
Net Asset Value, Beginning of Period   $ 31.96     $ 25.00  
                 
Gain from Investment Operations:                
Net investment income (1)     0.28       0.33  
Net realized and unrealized gain on investments     1.25       6.76  
Total Gain from Investment Operations     1.53       7.09  
                 
Less Distributions:                
Net investment income     0.00       (0.13 )
Total Distributions     0.00       (0.13 )
                 
Net Asset Value, End of Period   $ 33.49     $ 31.96  
                 
Total Return   (2)     4.79 %     28.41 %
                 
Supplemental Data and Ratios:                
Net assets, end of period (in thousands)   $ 101,974     $ 96,835  
Ratio of expenses to average net assets   (3)     0.50 %     0.50 %
Ratio of net investment income to average net assets (3)     1.67 %     1.89 %
Portfolio turnover rate (2) (4)     8 %     6 %

* Commencement of operations on August 19, 2020. 

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

(2) Not Annualized. 

(3) Annualized. 

(4) Portfolio turnover rate excludes securities received or delivered in-kind.

 

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


11

CornerCap Fundametrics® Large-Cap ETF  

Notes to Financial Statements (Unaudited)

September 30, 2021

 

Note 1 – Organization

 

CornerCap Fundametrics® Large-Cap ETF (the “Fund”) is a diversified series of Trust for Advised Portfolios (the “Trust”). The Trust, a Delaware Statutory Trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end investment management company. CornerCap Investment Counsel, Inc. (the “Adviser”) serves as the investment manager to the Fund. The inception date of the Fund was August 19, 2020. The investment objective of the Fund seeks long-term capital appreciation.

 

Shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc. (“Cboe” or the “Exchange”). Market prices for the shares may be different from their net asset value (“NAV”). The Fund issues and redeems shares on a continuous basis at NAV only in large blocks of shares, called “Creation Units,” which generally consist of 25,000 shares. Creation Units are issued and redeemed principally in-kind for securities included in a specified universe. Once created, shares generally trade in the secondary market at market prices that change throughout the day in amounts less than a Creation Unit. Except when aggregated in Creation Units, shares are not redeemable securities of a Fund. Shares of a Fund may only be purchased directly from or redeemed directly to a Fund by certain financial institutions (“Authorized Participants”). An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with Quasar Distributors, LLC (the “Distributor”). Most retail investors do not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, most retail investors may purchase shares in the secondary market with the assistance of a broker and are subject to customary brokerage commissions or fees.

 

Note 2 – Significant Accounting Policies

 

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

 

(a) Securities Valuation – Investments in securities traded on a national securities exchange are valued at the last reported sales price on the exchange on which the security is principally traded. Securities traded on the NASDAQ exchanges are valued at the NASDAQ Official Closing Price (“NOCP”). Exchange-traded securities for which no sale was reported and NASDAQ securities for which there is no NOCP are valued at the mean of the most recent quoted bid and ask prices. Unlisted securities held by the Fund are valued at the last sale price in the over-the-counter (“OTC”) market. If there is no trading on a particular day, the mean between the last quoted bid and ask price is used.


12

CornerCap Fundametrics® Large-Cap ETF  

Notes to Financial Statements (Unaudited) (Continued)

September 30, 2021

 

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

 

Short-term investments classified as money market instruments are valued at net asset value (“NAV”). These investments are categorized as Level 1 of the fair value hierarchy.

 

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized into three broad levels and described below:

 


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

 


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

 


Level 3 - significant unobservable inputs, including the Fund’s own assumptions in determining the fair value of investments.

 

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

 

Description   Level 1     Level 2       Level 3     Total  
Assets                        
Common Stocks   $ 101,196,528     $     $     $ 101,196,528  
Short-Term Investment     716,128                   716,128  
Total   $ 101,912,656     $     $     $ 101,912,656  

 

See the Schedule of Investments for further detail of investment classifications.

 

(b) Securities Transactions, Investment Income and Distributions – The Fund records security transactions based on trade date. Realized gains and losses on sales of securities are reported based on identified cost of securities delivered. Dividend income and expense are recognized on the ex-dividend date, and interest income and expense are recognized on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates. Trust-level expenses are allocated across the series of the Trust.


13


CornerCap Fundametrics® Large-Cap ETF  

Notes to Financial Statements (Unaudited) (Continued) 

September 30, 2021

  

(c)  Distributions to shareholders - Distributions from net investment income and distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

 

(d)  Federal Income Taxes - The Fund has elected to be taxed as a Regulated Investment Company (“RIC”) under the U.S. Internal Revenue Code of 1986, as amended, and intends to maintain this qualification and to distribute substantially all net taxable income to its shareholders. Therefore, no provision is made for federal income taxes. Due to the timing of dividend distributions and the differences in accounting for income and realized gains and losses for financial statement and federal income tax purpose, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses is recorded by the Fund.

 

As of and during the period ended September 30, 2021, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as interest expense and other expense for penalties in the statement of operations. During the period, the Fund did not incur any interest or tax penalties. The Fund has not currently filed any tax returns; generally, tax authorities can examine tax returns filed for the preceding three years.

 

(e)  REIT distribution - The character of distributions received from Real Estate Investment Trusts (‘’REITs’’) held by the Fund is generally comprised of net investment income, capital gains, and return of capital. It is the policy of the Fund to estimate the character of distributions received from underlying REITs based on historical data provided by the REITs. After each calendar year end, REITs report the actual tax character of these distributions. Differences between the estimated and actual amounts reported by the REITs are reflected in the Fund’s records in the year in which they are reported by the REITs by adjusting related investment cost basis, capital gains and income, as necessary.

 

Note 3 - Investment Management Agreement and Other Related Party Transactions

 

The Trust has an agreement with the Adviser to furnish investment advisory services to the Fund. Under the terms of this agreement, the Fund will pay the Adviser a monthly fee based on the Fund’s average daily net assets at annual rate of 0.50%. Additionally, the Adviser is responsible for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services. The Adviser is not responsible for, and the Fund will bear the cost of, (i) interest expense, (ii) taxes, (iii) brokerage expenses and other expenses connected with the execution of portfolio securities transactions, (iv) dividends and expenses associated with securities sold short, (v) non-routine expenses and fees, and (vi) expenses paid by the Trust under any plan adopted pursuant to Rule 12b-1 under the 1940 Act.

 

14

 

CornerCap Fundametrics® Large-Cap ETF  

Notes to Financial Statements (Unaudited) (Continued) 

September 30, 2021

  

U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”), serves as the Fund’s administrator and fund accountant and transfer agent. The officers of the Trust are employees of Fund Services. U.S. Bank serves as the Fund’s custodian and provides compliance services to the Fund. Quasar Distributors, LLC (“Quasar” or the “Distributor”) acts as the Fund’s distributor and principal underwriter.

 

Note 4 - Investment Transactions

 

Purchases and sales of investment securities (excluding short-term securities, in-kind transactions, and U.S. government obligations) for the period ended September 30, 2021, were as follows:

 

Purchases     $ 45,554,786  
Sales     $ 7,803,690  

Purchases and sales of in-kind transactions associated with creations and redemptions during the period ended September 30, 2021, were as follows:

 

Purchases In-Kind   $ 4,467,620  
Sales In-Kind   $ 40,032,253  

Note 5 - Commitments and Contingencies

 

In the normal course of business, the Fund enters into contracts that provide general indemnifications by the Fund to the counterparty to the contract. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.

 

Note 6 - Subsequent Events

 

Management has evaluated events and transactions that occurred subsequent to September 30, 2021 through the date the financial statements have been issued and has determined that there were no significant subsequent events that would require adjustment to or additional disclosure in these financial statements.

 

Note 7 - COVID-19 Risk

 

The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Fund invest depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Fund’s investments, impair the Fund’s ability to satisfy redemption requests, and negatively impact the Fund’s performance.

 

15

 

CornerCap Fundametrics® Large-Cap ETF  

Notes to Financial Statements (Unaudited) (Continued) 

September 30, 2021

  

Note 8 - Federal Income Tax Information

 

At March 31, 2021, the components of accumulated earnings (losses) for federal income tax purposes were as follows:

 

Tax Cost of Investments   $ 84,923,777  
Unrealized Appreciation     12,382,277  
Unrealized Depreciation     (555,380 )
Net Unrealized Appreciation on Investments     11,826,897  
Undistributed Ordinary Income     351,372  
Undistributed Long-Term Capital Gains     5,096  
Total Distributable Earnings     356,468  
Total Accumulated Income   $ 12,183,365  

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

 

GAAP requires that certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended March 31, 2021, permanent differences in book and tax accounting have been reclassified to capital, and accumulated income as follows:

 

Accumulated Income Paid In Capital
$ (3,127,753) $ 3,127,753

The tax character of distributions paid during the year ended March 31, 2021 was as follows:

 

    Year Ended
Distributions Paid From:   March 31, 2021
Ordinary Income   $ 259,883
Total Distributions Paid   $ 259,883

The Fund is required, in order to meet certain excise tax requirements, to measure and distribute annually, net capital gains realized during the twelve-month period ending October 31. In connection with this requirement, the Fund is permitted, for tax purposes, to defer into its next fiscal year any net capital losses incurred from November 1 through the end of the fiscal year. Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. As of March 31, 2021, the Fund had no late-year or post-October losses.

 

At March 31, 2021, the Fund did not have any capital loss carryforwards.

 

16

 

 

CornerCap Fundametrics® Large-Cap ETF  

Additional Infor mation (Unaudited) 

September 30, 2021

 

Quarterly Portfolio Schedule 

The Fund files its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission (SEC) on Part F of Form N-PORT. The Fund’s Form N-PORT is available without charge by visiting the SEC’s Web site at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.

 

Proxy Voting 

You may obtain a description of the Fund’s proxy voting policy and voting records, without charge, upon request by contacting the Fund directly at 1-800-617-0004 or on the EDGAR Database on the SEC’s website at ww.sec.gov. The Fund files its proxy voting records annually as of June 30, with the SEC on Form N-PX. The Fund’s Form N-PX is available without charge by visiting the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.

 

Statement Regarding Liquidity Risk Management Program 

The Fund has adopted a liquidity risk management program. The Fund’s Board has designated the Operational Risk Committee (“Committee”) of the Adviser to serve as the administrator of the program. The Committee conducts the day-to-day operation of the program pursuant to policies and procedures administered by the Committee.

 

Under the program, the Committee manages the Fund’s liquidity risk, which is the risk that the Fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the Fund. This risk is managed by monitoring the degree of liquidity of the Fund’s investments, limiting the amount of the Fund’s illiquid investments, and utilizing various risk management tools and facilities available to the Fund for meeting shareholder redemptions, among other means. The Committee’s process of determining the degree of liquidity of the Fund’s investments is supported by one or more third-party liquidity assessment vendors.

 

The Fund’s Board reviewed a report prepared by the committee regarding the operation and effectiveness of the program for the period January 1, 2020 through December 31, 2020. No liquidity events impacting the Fund were noted in the report. In addition, the committee provided its assessment that the program had been effective in managing the Fund’s liquidity risk.

 

Frequency Distribution of Premiums and Discounts 

Information regarding how often shares of each Fund traded on the Exchange at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV is available on the Fund’s website at www.cornercapfunl-etf.com.

 

Approval of Investment Advisory Agreement 

At a meeting held on August 12-13, 2021, the Board of Trustees (the “Board”) of Trust for Advised Portfolios (the “Trust”), including all the Trustees who are not “interested persons” of the Trust (“Independent Trustees”), as that term is defined in the Investment Company Act of 1940, considered and approved the investment advisory agreement (“Advisory Agreement”) with CornerCap Investment Counsel, Inc. (“Adviser”) for the CornerCap Fundametrics Large-Cap ETF (“Fund”).

 

17

 

CornerCap Fundametrics® Large-Cap ETF  

Additional Information (Unaudited) 

September 30, 2021

 

Ahead of the August meeting, the Board received and reviewed substantial information regarding the Fund, the Adviser and the services provided by the Adviser to the Fund under the Advisory Agreement. This information formed the primary (but not exclusive) basis for the Board’s determinations. The information prepared specifically for the annual review of the Advisory Agreement supplemented the information provided to the Board and its committees throughout the year. The Board and its committees met regularly during the year and the information provided and topics discussed at such meetings were relevant to the review of the Advisory Agreement. Some of these reports and other data included, among other things, materials that outlined the investment performance of the Fund; compliance, regulatory, and risk management matters; the trading practices of the Adviser; valuation of investments; fund expenses; and overall market and regulatory developments. The Trustees considered the review of the Advisory Agreement to be an ongoing process and employed the accumulated information, knowledge, and experience they had gained during their tenure on the Board governing the Fund and working with the Adviser in their review of the Advisory Agreement. The Independent Trustees were advised by independent legal counsel during the annual review process as well as throughout the year, including meeting in executive sessions with such counsel without representatives from the Adviser present. In connection with their annual review, the Independent Trustees also received a memorandum from independent legal counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreement.

 

In considering the continuance of the Advisory Agreement, the Board considered the following factors and made the following determinations. In its deliberations, the Board did not identify any single factor or piece of information as all important, controlling, or determinative of its decision, and each Trustee may have attributed different weights to the various factors and information.

 


In considering the nature, extent and quality of the services provided by the Adviser, the Trustees considered the Adviser’s specific responsibilities in all aspects of the day-to-day management of the Fund, as well as the qualifications, experience and responsibilities of the portfolio managers and other key personnel who are involved in the day-to-day activities of the Fund. The Board also considered the Adviser’s resources and compliance structure, including information regarding its compliance program, chief compliance officer, and compliance record, and its disaster recovery/business continuity plan, including how the Adviser has operated through the COVID- 19 pandemic. The Board also considered the existing relationship between the Adviser and the Trust, as well as the Board’s knowledge of the Adviser’s operations, and noted that during the course of the year it met with representatives of the Adviser to discuss fund performance and investment outlook, as well as various marketing and compliance topics, including the Adviser’s risk management process. The Board concluded that the Adviser had sufficient quality and depth of personnel, resources, investment methods and compliance policies and procedures essential to performing its duties under the Advisory Agreement and that, in the Board’s view, the nature, overall quality, and extent of the management services provided were and would continue to be satisfactory and reliable.

 


In assessing the quality of the portfolio management delivered by the Adviser, the Board reviewed the performance of the Fund on both an absolute basis and in comparison to its peer group, relevant benchmark index, and a comparable composite of accounts managed by the Adviser. The Board considered that the Fund had outperformed relative to its peer group average/median and its benchmark index for the year-to-date period as of June 30, 2021. The Board noted that the Fund had a performance record of less than one year as of June 30, 2021.

 

18

 

CornerCap Fundametrics® Large-Cap ETF  

Additional Information (Unaudited) 

September 30, 2021

 


The Trustees also reviewed the cost of the services, and the structure and level of advisory fees payable by the Fund, including a comparison of the fee to fees payable by a peer group of funds. The Board noted that the Fund has a unitary fee under which the Adviser pays all fees to its service providers. The Board noted that the Fund’s advisory fee and net expense ratio was lower than its peer group median/average. After reviewing the materials that were provided, the Trustees concluded that the fee to be received by the Adviser was fair and reasonable.

 


The Trustees considered whether, based on the asset size of the Fund, economies of scale had been achieved. The Board also considered the Adviser’s commitment to the unitary fee model would keep the net expense ratio of the Fund fixed. The Trustees concluded that they will have the opportunity to periodically reexamine whether economies of scale have been achieved.

 


The Trustees considered the profitability of the Adviser from managing the Fund. In assessing the Adviser’s profitability, the Trustees reviewed the Adviser’s financial information that was provided in the materials and took into account both the direct and indirect benefits to The Adviser from managing the Fund. The Trustees concluded that the Adviser’s profits from managing the Fund were not excessive and, after a review of the relevant financial information, that the Adviser appeared to have adequate capitalization and/or would maintain adequate profit levels to support the Fund.

 

19

PRIVACY NOTICE

 

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/or

 

●  Information about your transactions with us or others.

 

We do 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. We may share information with affiliated and unaffiliated third parties with whom we have contracts for servicing the Fund. We will provide unaffiliated third parties with only the information necessary to carry out their assigned responsibilities. We maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your personal information with the same high degree of confidentiality.

 

In the event that you hold shares of the 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.

 

20

This page intentionally left blank.

 

 

Investment Adviser 

CornerCap Investment Counsel, Inc. 

The Peachtree, Suite 1700, 1355 Peachtree Street NE
Atlanta, GA 30309

 

Distributor 

Quasar Distributors, LLC
111 East Kilbourn Avenue, Suite 2200
Milwaukee, Wisconsin 53202

 

Custodian 

U.S. Bank National Association 

Custody Operations 

1555 North River Center Drive, Suite 302
Milwaukee, Wisconsin 53212

 

Transfer Agent, Fund Accountant and Fund Administrator 

U.S. Bancorp Fund Services, LLC 

615 East Michigan Street 

Milwaukee, Wisconsin 53202

 

Independent Registered Public Accounting Firm 

BBD, LLP 

1835 Market Street, 3 rd Floor 

Philadelphia, PA 19103

 

Legal Counsel 

Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue, NW 

Washington, DC 20004

 

This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.