|
Pinnacle
Funds
|
|
STATEMENTS
OF OPERATIONS (Unaudited)
|
|
For
the Six Months Ended March 31, 2020
|
|
|
|
Pinnacle Sherman
|
|
|
Pinnacle TrendRating
|
|
|
|
|
Multi-Strategy Core Fund
|
|
|
Innovative Equity Fund
|
|
|
INVESTMENT INCOME
|
|
|
|
|
|
|
|
|
|
Dividends (including $0, $389 of foreign witholding tax)
|
|
$
|
239,511
|
|
|
$
|
21,779
|
|
|
Interest
|
|
|
6,473
|
|
|
|
408
|
|
|
TOTAL INVESTMENT INCOME
|
|
|
245,984
|
|
|
|
22,187
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
|
|
149,218
|
|
|
|
12,177
|
|
|
Distribution (12b-1) fees:
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
6,808
|
|
|
|
8
|
|
|
Class C
|
|
|
55,996
|
|
|
|
—
|
|
|
Registration fees
|
|
|
22,300
|
|
|
|
1,813
|
|
|
Printing and postage expenses
|
|
|
13,716
|
|
|
|
3,158
|
|
|
Administrative services fees
|
|
|
12,485
|
|
|
|
17,033
|
|
|
Transfer agent fees
|
|
|
11,935
|
|
|
|
5,055
|
|
|
Accounting services fees
|
|
|
10,922
|
|
|
|
10,504
|
|
|
Audit fees
|
|
|
8,511
|
|
|
|
8,545
|
|
|
Legal fees
|
|
|
7,804
|
|
|
|
7,105
|
|
|
Trustees fees and expenses
|
|
|
7,566
|
|
|
|
7,366
|
|
|
Third pary administrative servicing fees
|
|
|
6,822
|
|
|
|
8
|
|
|
Compliance officer fees
|
|
|
6,320
|
|
|
|
1,976
|
|
|
Custodian fees
|
|
|
2,791
|
|
|
|
2,558
|
|
|
Insurance expense
|
|
|
623
|
|
|
|
20
|
|
|
Other expenses
|
|
|
1,177
|
|
|
|
426
|
|
|
TOTAL EXPENSES
|
|
|
324,994
|
|
|
|
77,752
|
|
|
Less: Fees waived / expenses reimbursed by the adviser
|
|
|
(77,200
|
)
|
|
|
(61,590
|
)
|
|
NET EXPENSES
|
|
|
247,794
|
|
|
|
16,162
|
|
|
NET INVESTMENT INCOME (LOSS)
|
|
|
(1,810
|
)
|
|
|
6,025
|
|
|
|
|
|
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
|
|
|
|
|
|
|
|
|
|
Net realized gain from security transactions
|
|
|
788,306
|
|
|
|
89,980
|
|
|
Net change in unrealized depreciation on investments
|
|
|
(1,721,746
|
)
|
|
|
(682,359
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS
|
|
|
(933,440
|
)
|
|
|
(592,379
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
|
$
|
(935,250
|
)
|
|
$
|
(586,354
|
)
|
See
Accompanying Notes to Financial Statements.
|
Pinnacle
Sherman Multi-Strategy Core Fund
|
|
STATEMENTS
OF CHANGES IN NET ASSETS
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
Year Ended
|
|
|
|
|
2020
|
|
|
September 30,
|
|
|
|
|
(Unaudited)
|
|
|
2019
|
|
|
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
$
|
(1,810
|
)
|
|
$
|
139,631
|
|
|
Net realized gain (loss) from security transactions
|
|
|
788,306
|
|
|
|
(4,464,094
|
)
|
|
Net change in unrealized depreciation on investments
|
|
|
(1,721,746
|
)
|
|
|
(5,724,945
|
)
|
|
Net decrease in net assets resulting from operations
|
|
|
(935,250
|
)
|
|
|
(10,049,408
|
)
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS
|
|
|
|
|
|
|
|
|
|
Total distributions paid:
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
(24,748
|
)
|
|
|
(393,920
|
)
|
|
Class C
|
|
|
—
|
|
|
|
(782,391
|
)
|
|
Class I
|
|
|
(114,703
|
)
|
|
|
(1,336,862
|
)
|
|
Total Distributions to Shareholders
|
|
|
(139,451
|
)
|
|
|
(2,513,173
|
)
|
|
|
|
|
|
|
|
|
|
|
|
FROM SHARES OF BENEFICIAL INTEREST
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold:
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
60,436
|
|
|
|
1,039,524
|
|
|
Class C
|
|
|
141,092
|
|
|
|
441,412
|
|
|
Class I
|
|
|
77,685
|
|
|
|
2,078,560
|
|
|
Shares issued to shareholders in reinvestment (Note 8):
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
2,857,262
|
|
|
|
—
|
|
|
Class C
|
|
|
456,970
|
|
|
|
—
|
|
|
Class I
|
|
|
5,167,457
|
|
|
|
—
|
|
|
Net asset value of shares issued in reinvestment of distributions:
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
23,505
|
|
|
|
365,229
|
|
|
Class C
|
|
|
—
|
|
|
|
711,208
|
|
|
Class I
|
|
|
111,877
|
|
|
|
1,301,047
|
|
|
Payments for shares redeemed:
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
(2,995,651
|
)
|
|
|
(10,165,690
|
)
|
|
Class C
|
|
|
(2,191,305
|
)
|
|
|
(11,776,094
|
)
|
|
Class I
|
|
|
(2,883,156
|
)
|
|
|
(31,899,924
|
)
|
|
Redemption fee proceeds:
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
—
|
|
|
|
584
|
|
|
Class C
|
|
|
4
|
|
|
|
120
|
|
|
Class I
|
|
|
98
|
|
|
|
608
|
|
|
Net increase (decrease) in net assets resulting from shares of beneficial interest
|
|
|
826,274
|
|
|
|
(47,903,416
|
)
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL DECREASE IN NET ASSETS
|
|
|
(248,427
|
)
|
|
|
(60,465,997
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
|
33,582,957
|
|
|
|
94,048,954
|
|
|
End of Period
|
|
$
|
33,334,530
|
|
|
$
|
33,582,957
|
|
See
Accompanying Notes to Financial Statements.
|
Pinnacle
Sherman Multi-Strategy Core Fund
|
|
STATEMENTS
OF CHANGES IN NET ASSETS (Continued)
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
Year Ended
|
|
|
|
|
2020
|
|
|
September 30,
|
|
|
|
|
(Unaudited)
|
|
|
2019
|
|
|
SHARE ACTIVITY
|
|
|
|
|
|
|
|
|
|
Class A:
|
|
|
|
|
|
|
|
|
|
Shares Sold
|
|
|
5,725
|
|
|
|
102,504
|
|
|
Shares issued due to merger (Note 8)
|
|
|
357,755
|
|
|
|
—
|
|
|
Shares Reinvested
|
|
|
2,174
|
|
|
|
37,769
|
|
|
Shares Redeemed
|
|
|
(286,027
|
)
|
|
|
(978,868
|
)
|
|
Net increase (decrease) in shares of beneficial interest outstanding
|
|
|
79,627
|
|
|
|
(838,595
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Class C:
|
|
|
|
|
|
|
|
|
|
Shares Sold
|
|
|
13,677
|
|
|
|
43,451
|
|
|
Shares issued due to merger (Note 8)
|
|
|
59,471
|
|
|
|
|
|
|
Shares Reinvested
|
|
|
—
|
|
|
|
75,340
|
|
|
Shares Redeemed
|
|
|
(211,680
|
)
|
|
|
(1,191,188
|
)
|
|
Net decrease in shares of beneficial interest outstanding
|
|
|
(138,532
|
)
|
|
|
(1,072,397
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Class I:
|
|
|
|
|
|
|
|
|
|
Shares Sold
|
|
|
7,318
|
|
|
|
197,435
|
|
|
Shares issued due to merger (Note 8)
|
|
|
481,637
|
|
|
|
—
|
|
|
Shares Reinvested
|
|
|
10,302
|
|
|
|
133,715
|
|
|
Shares Redeemed
|
|
|
(272,004
|
)
|
|
|
(3,213,268
|
)
|
|
Net increase (decrease) in shares of beneficial interest outstanding
|
|
|
227,253
|
|
|
|
(2,882,118
|
)
|
See
Accompanying Notes to Financial Statements.
|
Pinnacle
TrendRating Innovative Equity Fund
|
|
STATEMENT
OF CHANGES IN NET ASSETS
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
Period Ended
|
|
|
|
|
2020
|
|
|
September 30,
|
|
|
|
|
(Unaudited)
|
|
|
2019*
|
|
|
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
$
|
6,025
|
|
|
$
|
(1,259
|
)
|
|
Net realized gain from security transactions
|
|
|
89,980
|
|
|
|
30,271
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
(682,359
|
)
|
|
|
121,113
|
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
(586,354
|
)
|
|
|
150,125
|
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS
|
|
|
|
|
|
|
|
|
|
Total Distributions Paid
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
(119
|
)
|
|
|
—
|
|
|
Class I
|
|
|
(29,782
|
)
|
|
|
—
|
|
|
Net decrease in net assets resulting from distributions to shareholders
|
|
|
(29,901
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
FROM SHARES OF BENEFICIAL INTEREST
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold:
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
10,454
|
|
|
|
5,009
|
|
|
Class C
|
|
|
—
|
|
|
|
10
|
|
|
Class I
|
|
|
3,472,742
|
|
|
|
1,824,530
|
|
|
Net asset value of shares issued in reinvestment of distributions:
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
119
|
|
|
|
—
|
|
|
Class C
|
|
|
—
|
|
|
|
—
|
|
|
Class I
|
|
|
29,510
|
|
|
|
—
|
|
|
Payments for shares redeemed:
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
(16,953
|
)
|
|
|
—
|
|
|
Class I
|
|
|
(5,600
|
)
|
|
|
—
|
|
|
Net increase in net assets resulting from shares of beneficial interest
|
|
|
3,490,272
|
|
|
|
1,829,549
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INCREASE IN NET ASSETS
|
|
|
2,874,017
|
|
|
|
1,979,674
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
|
1,979,674
|
|
|
|
—
|
|
|
End of Period
|
|
$
|
4,853,691
|
|
|
$
|
1,979,674
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARE ACTIVITY
|
|
|
|
|
|
|
|
|
|
Class A:
|
|
|
|
|
|
|
|
|
|
Shares Sold
|
|
|
947
|
|
|
|
474
|
|
|
Shares Reinvested
|
|
|
10
|
|
|
|
—
|
|
|
Shares Redeemed
|
|
|
(1,430
|
)
|
|
|
—
|
|
|
Net increase (decrease) in shares of beneficial interest outstanding
|
|
|
(473
|
)
|
|
|
474
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C:
|
|
|
|
|
|
|
|
|
|
Shares Sold
|
|
|
—
|
|
|
|
1
|
|
|
Shares Reinvested
|
|
|
—
|
|
|
|
—
|
|
|
Net increase in shares of beneficial interest outstanding
|
|
|
—
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I:
|
|
|
|
|
|
|
|
|
|
Shares Sold
|
|
|
291,170
|
|
|
|
177,990
|
|
|
Shares Reinvested
|
|
|
2,580
|
|
|
|
—
|
|
|
Shares Redeemed
|
|
|
(487
|
)
|
|
|
—
|
|
|
Net increase in shares of beneficial interest outstanding
|
|
|
293,263
|
|
|
|
177,990
|
|
|
|
*
|
The
Pinnacle TrendRating Innovative Equity Fund commenced operations on December 3, 2018.
|
See
Accompanying Notes to Financial Statements.
|
Pinnacle
Sherman Multi-Strategy Core Fund
|
|
FINANCIAL
HIGHLIGHTS
|
Per
Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period Presented
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2020
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Period Ended
|
|
|
Class
A
|
|
(Unaudited)
|
|
|
September
30, 2019
|
|
|
September
30, 2018
|
|
|
September
30, 2017
|
|
|
September
30, 2016 (1)
|
|
|
Net asset
value, beginning of period
|
|
$
|
10.36
|
|
|
$
|
11.71
|
|
|
$
|
11.61
|
|
|
$
|
10.53
|
|
|
$
|
10.00
|
|
|
Activity from investment
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(loss) (2)
|
|
|
0.01
|
|
|
|
0.04
|
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
|
0.01
|
|
|
Net
realized and unrealized gain / (loss) on investments
|
|
|
(0.55
|
)
|
|
|
(1.04
|
)
|
|
|
0.80
|
|
|
|
1.15
|
|
|
|
0.52
|
(10)
|
|
Total
from investment operations
|
|
|
(0.54
|
)
|
|
|
(1.00
|
)
|
|
|
0.79
|
|
|
|
1.14
|
|
|
|
0.53
|
|
|
Less distributions from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.05
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.02
|
)
|
|
|
—
|
|
|
Net
realized gains
|
|
|
—
|
|
|
|
(0.35
|
)
|
|
|
(0.69
|
)
|
|
|
(0.04
|
)
|
|
|
—
|
|
|
Total distributions
|
|
|
(0.05
|
)
|
|
|
(0.35
|
)
|
|
|
(0.69
|
)
|
|
|
(0.06
|
)
|
|
|
—
|
|
|
Paid-in-Capital
From Redemption Fees (2)
|
|
|
—
|
|
|
|
0.00
|
(9)
|
|
|
0.00
|
(9)
|
|
|
0.00
|
(9)
|
|
|
0.00
|
(9)
|
|
Net asset value,
end of period
|
|
$
|
9.77
|
|
|
$
|
10.36
|
|
|
$
|
11.71
|
|
|
$
|
11.61
|
|
|
$
|
10.53
|
|
|
Total
return (3)
|
|
|
(5.27
|
)% (7)
|
|
|
(8.31
|
)%
|
|
|
6.96
|
%
|
|
|
10.91
|
%
|
|
|
5.30
|
% (7)
|
|
Net
assets, at end of period (000s)
|
|
$
|
7,425
|
|
|
$
|
7,047
|
|
|
$
|
17,779
|
|
|
$
|
25,056
|
|
|
$
|
13,604
|
|
|
Ratio of gross expenses
to average net assets (4)(6)
|
|
|
2.01
|
% (5)
|
|
|
1.78
|
%
|
|
|
1.61
|
%
|
|
|
1.63
|
%
|
|
|
1.72
|
% (5)
|
|
Ratio of net expenses
to average net assets (6)
|
|
|
1.49
|
% (5)
|
|
|
1.49
|
%
|
|
|
1.49
|
%
|
|
|
1.49
|
%
|
|
|
1.49
|
% (5)
|
|
Ratio of net investment
income (loss) to average net assets (6)(8)
|
|
|
0.11
|
% (5)
|
|
|
0.37
|
%
|
|
|
(0.05
|
)%
|
|
|
(0.09
|
)%
|
|
|
0.30
|
% (5)
|
|
Portfolio Turnover Rate
|
|
|
293
|
% (7)
|
|
|
607
|
%
|
|
|
402
|
%
|
|
|
337
|
%
|
|
|
449
|
% (7)
|
|
|
(1)
|
The
Pinnacle Sherman Multi-Strategy Core Fund’s Class A shares commenced operations on October 1, 2015.
|
|
|
(2)
|
Per
share amounts calculated using the average shares method, which more appropriately presents the per share data for the period.
|
|
|
(3)
|
Total
returns shown are historical in nature and assume changes in share price, reinvestment of dividends and distributions, if any,
and exclude the effect of applicable sales charges and redemption fees. Had the adviser not waived fees / reimbursed a portion
of its expenses, total returns would have been lower.
|
|
|
(4)
|
Represents
the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.
|
|
|
(6)
|
Does
not include the expenses of other investment companies in which the Fund invests.
|
|
|
(8)
|
Recognition
of net investment income by the Fund is affected by the timing of declaration of dividends by the underlying investment companies
in which the Fund invests.
|
|
|
(9)
|
Amount
represents less than $0.01 per share.
|
|
|
(10)
|
Realized
and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the changes in net asset
value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to
share transactions for the period.
|
See
Accompanying Notes to Financial Statements.
|
Pinnacle
Sherman Multi-Strategy Core Fund
|
|
FINANCIAL
HIGHLIGHTS
|
Per
Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period Presented
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2020
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Period Ended
|
|
|
Class
C
|
|
(Unaudited)
|
|
|
September
30, 2019
|
|
|
September
30, 2018
|
|
|
September
30, 2017
|
|
|
September
30, 2016 (1)
|
|
|
Net
asset value, beginning of period
|
|
$
|
10.06
|
|
|
$
|
11.46
|
|
|
$
|
11.46
|
|
|
$
|
10.46
|
|
|
$
|
10.00
|
|
|
Activity from investment
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss
(2)
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
(0.09
|
)
|
|
|
(0.06
|
)
|
|
|
(0.08
|
)
|
|
Net
realized and unrealized gain / (loss) on investments
|
|
|
(0.53
|
)
|
|
|
(1.02
|
)
|
|
|
0.78
|
|
|
|
1.10
|
|
|
|
0.54
|
|
|
Total
from investment operations
|
|
|
(0.56
|
)
|
|
|
(1.05
|
)
|
|
|
0.69
|
|
|
|
1.04
|
|
|
|
0.46
|
|
|
Less distributions from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized gains
|
|
|
—
|
|
|
|
(0.35
|
)
|
|
|
(0.69
|
)
|
|
|
(0.04
|
)
|
|
|
—
|
|
|
Total
distributions
|
|
|
—
|
|
|
|
(0.35
|
)
|
|
|
(0.69
|
)
|
|
|
(0.04
|
)
|
|
|
—
|
|
|
Paid-in-Capital
From Redemption Fees (2)(9)
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
Net
asset value, end of period
|
|
$
|
9.50
|
|
|
$
|
10.06
|
|
|
$
|
11.46
|
|
|
$
|
11.46
|
|
|
$
|
10.46
|
|
|
Total
return (3)
|
|
|
(5.57
|
)% (7)
|
|
|
(8.95
|
)%
|
|
|
6.15
|
%
|
|
|
9.97
|
%
|
|
|
4.60
|
% (7)
|
|
Net
assets, at end of period (000s)
|
|
$
|
10,109
|
|
|
$
|
12,104
|
|
|
$
|
26,079
|
|
|
$
|
24,709
|
|
|
$
|
14,578
|
|
|
Ratio of gross expenses
to average net assets (4)(6)
|
|
|
2.76
|
% (5)
|
|
|
2.53
|
%
|
|
|
2.36
|
%
|
|
|
2.38
|
%
|
|
|
2.47
|
% (5)
|
|
Ratio of net expenses
to average net assets (6)
|
|
|
2.24
|
% (5)
|
|
|
2.24
|
%
|
|
|
2.24
|
%
|
|
|
2.24
|
%
|
|
|
2.24
|
% (5)
|
|
Ratio of net investment
loss to average net assets (6)(8)
|
|
|
(0.56
|
)% (5)
|
|
|
(0.31
|
)%
|
|
|
(0.80
|
)%
|
|
|
(0.56
|
)%
|
|
|
(0.77
|
)% (5)
|
|
Portfolio Turnover Rate
|
|
|
293
|
% (7)
|
|
|
607
|
%
|
|
|
402
|
%
|
|
|
337
|
%
|
|
|
449
|
% (7)
|
|
|
(1)
|
The
Pinnacle Sherman Multi-Strategy Core Fund’s Class C shares commenced operations on October 1, 2015.
|
|
|
(2)
|
Per
share amounts calculated using the average shares method, which more appropriately presents the per share data for the period.
|
|
|
(3)
|
Total
returns shown are historical in nature and assume changes in share price, reinvestment of dividends and distributions, if any,
and exclude the effect of applicable sales charges and redemption fees. Had the adviser not waived fees / reimbursed a portion
of its expenses, total returns would have been lower.
|
|
|
(4)
|
Represents
the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.
|
|
|
(6)
|
Does
not include the expenses of other investment companies in which the Fund invests.
|
|
|
(8)
|
Recognition
of net investment loss by the Fund is affected by the timing of declaration of dividends by the underlying investment companies
in which the Fund invests.
|
|
|
(9)
|
Amount
represents less than $0.01 per share.
|
See
Accompanying Notes to Financial Statements.
|
Pinnacle
Sherman Multi-Strategy Core Fund
|
|
FINANCIAL
HIGHLIGHTS
|
Per
Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period Presented
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2020
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Period Ended
|
|
|
Class
I
|
|
(Unaudited)
|
|
|
September
30, 2019
|
|
|
September
30, 2018
|
|
|
September
30, 2017
|
|
|
September
30, 2016 (1)
|
|
|
Net asset
value, beginning of period
|
|
$
|
10.45
|
|
|
$
|
11.77
|
|
|
$
|
11.66
|
|
|
$
|
10.57
|
|
|
$
|
10.00
|
|
|
Activity from investment
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(2)
|
|
|
0.02
|
|
|
|
0.07
|
|
|
|
0.02
|
|
|
|
0.05
|
|
|
|
0.01
|
|
|
Net
realized and unrealized gain / (loss) on investments
|
|
|
(0.54
|
)
|
|
|
(1.04
|
)
|
|
|
0.79
|
|
|
|
1.12
|
|
|
|
0.56
|
(10)
|
|
Total
from investment operations
|
|
|
(0.52
|
)
|
|
|
(0.97
|
)
|
|
|
0.81
|
|
|
|
1.17
|
|
|
|
0.57
|
|
|
Less distributions from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.10
|
)
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
(0.04
|
)
|
|
|
—
|
|
|
Net
realized gains
|
|
|
—
|
|
|
|
(0.35
|
)
|
|
|
(0.69
|
)
|
|
|
(0.04
|
)
|
|
|
—
|
|
|
Total
distributions
|
|
|
(0.10
|
)
|
|
|
(0.35
|
)
|
|
|
(0.70
|
)
|
|
|
(0.08
|
)
|
|
|
—
|
|
|
Paid-in-Capital
From Redemption Fees (2)(9)
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
Net asset value,
end of period
|
|
$
|
9.83
|
|
|
$
|
10.45
|
|
|
$
|
11.77
|
|
|
$
|
11.66
|
|
|
$
|
10.57
|
|
|
Total
return (3)
|
|
|
(5.08
|
)% (7)
|
|
|
(8.01
|
)%
|
|
|
7.16
|
%
|
|
|
11.09
|
%
|
|
|
5.70
|
% (7)
|
|
Net
assets, at end of period (000s)
|
|
$
|
15,800
|
|
|
$
|
14,431
|
|
|
$
|
50,191
|
|
|
$
|
67,546
|
|
|
$
|
27,240
|
|
|
Ratio of gross expenses
to average net assets (4)(6)
|
|
|
1.76
|
% (5)
|
|
|
1.53
|
%
|
|
|
1.36
|
%
|
|
|
1.38
|
%
|
|
|
1.47
|
% (5)
|
|
Ratio of net expenses
to average net assets (6)
|
|
|
1.24
|
% (5)
|
|
|
1.24
|
%
|
|
|
1.24
|
%
|
|
|
1.24
|
%
|
|
|
1.24
|
% (5)
|
|
Ratio of net investment
income to average net assets (6)(8)
|
|
|
0.40
|
% (5)
|
|
|
0.67
|
%
|
|
|
0.20
|
%
|
|
|
0.47
|
%
|
|
|
0.06
|
% (5)
|
|
Portfolio Turnover Rate
|
|
|
293
|
% (7)
|
|
|
607
|
%
|
|
|
402
|
%
|
|
|
337
|
%
|
|
|
449
|
% (7)
|
|
|
(1)
|
The
Pinnacle Sherman Multi-Strategy Core Fund’s Class I shares commenced operations on October 1, 2015.
|
|
|
(2)
|
Per
share amounts calculated using the average shares method, which more appropriately presents the per share data for the period.
|
|
|
(3)
|
Total
returns shown are historical in nature and assume changes in share price, reinvestment of dividends and distributions, if any,
and exclude the effect of applicable sales charges and redemption fees. Had the adviser not waived a portion of its fees / reimbused
expenses, total returns would have been lower.
|
|
|
(4)
|
Represents
the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.
|
|
|
(6)
|
Does
not include the expenses of other investment companies in which the Fund invests.
|
|
|
(8)
|
Recognition
of net investment income by the Fund is affected by the timing of declaration of dividends by the underlying investment companies
in which the Fund invests.
|
|
|
(9)
|
Amount
represents less than $0.01 per share.
|
|
|
(10)
|
Realized
and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the changes in net asset
value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to
share transactions for the period.
|
See
Accompanying Notes to Financial Statements.
|
Pinnacle
TrendRating Innovative Equity Fund
|
|
FINANCIAL
HIGHLIGHTS
|
Per
Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period Presented
|
|
|
Class A
|
|
|
Class A
|
|
|
Class C
|
|
|
Class C
|
|
|
Class I
|
|
|
Class I
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
March 31, 2020
|
|
|
Period Ended
|
|
|
March 31, 2020
|
|
|
Period Ended
|
|
|
March 31, 2020
|
|
|
Period Ended
|
|
|
|
|
(Unaudited)
|
|
|
September 30, 2019 (1)
|
|
|
(Unaudited)
|
|
|
September 30, 2019 (1)
|
|
|
(Unaudited)
|
|
|
September 30, 2019 (1)
|
|
|
Net asset value, beginning of period
|
|
$
|
11.08
|
|
|
$
|
10.00
|
|
|
$
|
11.08
|
|
|
$
|
10.00
|
|
|
$
|
11.09
|
|
|
$
|
10.00
|
|
|
Activity from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income/(loss) (2)
|
|
|
0.01
|
|
|
|
(0.06
|
)
|
|
|
0.01
|
|
|
|
(0.06
|
)
|
|
|
0.02
|
|
|
|
(0.01
|
)
|
|
Net realized and unrealized gain on investments
|
|
|
(0.67
|
)
|
|
|
1.14
|
|
|
|
(0.67
|
)
|
|
|
1.14
|
|
|
|
(0.68
|
)
|
|
|
1.10
|
|
|
Total from investment operations
|
|
|
(0.66
|
)
|
|
|
1.08
|
|
|
|
(0.66
|
)
|
|
|
1.08
|
|
|
|
(0.66
|
)
|
|
|
1.09
|
|
|
Less distributions from:
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net realized gains
|
|
|
(0.13
|
)
|
|
|
—
|
|
|
|
(0.13
|
)
|
|
|
—
|
|
|
|
(0.13
|
)
|
|
|
—
|
|
|
Total distributions
|
|
|
(0.13
|
)
|
|
|
—
|
|
|
|
(0.13
|
)
|
|
|
—
|
|
|
|
(0.13
|
)
|
|
|
—
|
|
|
Net asset value, end of period
|
|
$
|
10.29
|
|
|
$
|
11.08
|
|
|
$
|
10.29
|
|
|
$
|
11.08
|
|
|
$
|
10.30
|
|
|
$
|
11.09
|
|
|
Total return (3)(6)
|
|
|
(6.11
|
)%
|
|
|
10.80
|
%
|
|
|
(6.20
|
)%
|
|
|
10.80
|
%
|
|
|
(6.10
|
)%
|
|
|
10.90
|
%
|
|
Net assets, at end of period
|
|
$
|
10
|
|
|
$
|
5,256
|
|
|
$
|
10
|
|
|
$
|
11
|
|
|
$
|
4,853,671
|
|
|
$
|
1,974,407
|
|
|
Ratio of gross expenses to average net assets (4)(5)
|
|
|
5.01
|
% (5)
|
|
|
13.38
|
%
|
|
|
5.76
|
% (5)
|
|
|
14.13
|
%
|
|
|
4.76
|
% (5)
|
|
|
13.13
|
%
|
|
Ratio of net expenses to average net assets (5)
|
|
|
1.24
|
% (5)
|
|
|
1.24
|
%
|
|
|
1.99
|
% (5)
|
|
|
1.99
|
%
|
|
|
0.99
|
% (5)
|
|
|
0.99
|
%
|
|
Ratio of net investment income/(loss) to average net assets (5)
|
|
|
0.10
|
% (5)
|
|
|
(0.38
|
)%
|
|
|
(0.65
|
)% (5)
|
|
|
(1.13
|
)%
|
|
|
0.37
|
% (5)
|
|
|
(0.13
|
)%
|
|
Portfolio Turnover Rate (6)
|
|
|
114
|
%
|
|
|
149
|
%
|
|
|
114
|
%
|
|
|
149
|
%
|
|
|
114
|
%
|
|
|
149
|
%
|
|
|
(1)
|
The
Pinnacle TrendRating Innovative Equity Fund Class A, Class C and Class I shares commenced operations on December 3, 2018.
|
|
|
(2)
|
Per
share amounts calculated using the average shares method, which more appropriately presents the per share data for the period.
|
|
|
(3)
|
Total
returns shown are historical in nature and assume changes in share price, reinvestment of dividends and distributions, if any,
and exclude the effect of applicable sales charges and redemption fees. Had the adviser not waived fees / reimbursed a portion
of its expenses, total returns would have been lower.
|
|
|
(4)
|
Represents
the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.
|
See
Accompanying Notes to Financial Statements.
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited)
|
|
March
31, 2020
|
|
|
The
Pinnacle Sherman Multi-Strategy Core Fund and Pinnacle TrendRating Innovative Equity Fund (each a “Fund” and collectively
the “Funds”) each are a diversified series of shares of beneficial interest of Northern Lights Fund Trust III (the
“Trust”), a Delaware statutory trust organized on December 5, 2011 under the laws of the state of Delaware. Each Fund
is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment
company. The investment objective of Pinnacle Sherman Multi-Strategy Core Fund is to seek high total return with reasonable risk.
The investment objective of Pinnacle TrendRating Innovative Equity Fund is to seek high total return. Pinnacle Sherman Multi-Strategy
Core Fund commenced operations on October 1, 2015. Pinnacle TrendRating Innovative Equity Fund commenced operations on December
3, 2018.
Each
Fund currently offers Class A, Class C and Class I shares. Class C and Class I shares are offered at net asset value (“NAV”).
Class A shares are offered at NAV plus a maximum sales charge of 5.75%. Each class represents an interest in the same assets of
the Funds and classes are identical except for differences in their sales charge structures and ongoing service and distribution
charges. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to
its service and/or distribution plans. The Funds’ income, expenses (other than class specific distribution fees) and realized
and unrealized gains and losses are allocated proportionately each day based upon the relative net assets of each class.
|
|
2.
|
SIGNIFICANT
ACCOUNTING POLICIES
|
The
following is a summary of significant accounting policies followed by the Funds in preparation of their financial statements.
These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
The preparation of financial statements 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 for the period. Actual results could differ from those estimates. Each Fund is an investment
company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards
Board (“FASB”) Accounting Standards Codification Topic 946 “Financial Services – Investment Companies,”
including FASB Accounting Standards Update (“ASU”) 2013-08.
Securities
Valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular
trading session of the primary exchange on the business day the value is being determined, or in the case of securities listed
on NASDAQ at the NASDAQ Official Closing Price. In the absence of a sale, such securities shall be valued at the mean between
the current bid and ask prices on the day of valuation. Investments in open-end investment companies are valued at NAV. The independent
pricing service does not distinguish between smaller-sized bond positions known as “odd lots” and larger institutional-sized
bond positions known as “round lots”. The Fund may fair value a particular bond if the adviser does not believe that
the round lot value provided by the independent pricing service reflects fair value of the Fund’s holding. Short-term debt
obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost.
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
The
Funds may hold securities, such as private investments, interests in commodity pools, other non-traded securities or temporarily
illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities
will be valued using the “fair value” procedures approved by the Trust’s Board of Trustees (the “Board”).
The Board has delegated execution of these procedures to a fair value committee composed of one or more representatives from each
of the (i) Trust, (ii) administrator, and (iii) adviser. The committee may also enlist third party consultants such as a valuation
specialist at a public accounting firm, valuation consultant or financial officer of a security issuer on an as-needed basis to
assist in determining a security-specific fair value. The Board reviews and ratifies the execution of this process and the resultant
fair value prices at least quarterly to assure the process produces reliable results.
Fair
Valuation Process – As noted above, the fair valuation committee is composed of one or more representatives from each
of the (i) Trust, (ii) administrator, and (iii) adviser. The applicable investments are valued collectively via inputs from each
of these groups. For example, fair value determinations are required for the following securities: (i) securities for which market
quotations are insufficient or not readily available on a particular business day (including securities for which there is a short
and temporary lapse in the provision of a price by the regular pricing source), (ii) securities for which, in the judgment of
the adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause the adviser
to make such a judgment include, but are not limited to, the following: only a bid price or an ask price is available; the spread
between bid and ask prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and
actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid;
(iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”)
since the closing prices were established on the principal exchange on which they are traded, but prior to the Funds’ calculation
of their NAVs. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to
the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or
illiquid securities, such as private investments or non-traded securities are valued via inputs from the adviser based upon the
current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances
of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the
adviser is unable to obtain a current bid from such independent dealers or other independent parties, the fair value committee
shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of
purchase; (iii) the size and nature of the Fund’s holdings; (iv) the discount from market value of unrestricted securities of
the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to
the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration
rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness;
(viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x)
current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
Cash
and Cash Equivalents – Cash and cash equivalents includes cash and overnight investments in interest-bearing demand
deposits with a financial institution with original maturities of three months or less. The assets of the Funds may be placed
in deposit accounts at U.S. banks and such deposits generally exceed Federal Deposit Insurance Corporation (“FDIC”)
insurance limits. The FDIC insures deposit accounts up to $250,000 for each accountholder. The counterparty is generally a single
bank or other financial institution, rather than a group of financial institutions; thus there may be a greater counterparty credit
risk. The Funds place deposits only with those counterparties which are believed to be creditworthy. As of March 31, 2020, Pinnacle
Sherman Multi-Strategy Core Fund and Pinnacle TrendRating Innovative Equity Fund had deposits with MUFG Union Bank of $737,172
representing 2.21% of net assets, and $121,628 representing 2.51% of net assets, respectively.
Valuation
of Underlying Funds – The Funds may invest in portfolios of open-end or closed-end investment companies (the “underlying
funds”). Underlying open-end investment companies are valued at their respective NAVs as reported by such investment companies.
The underlying funds value securities in their portfolios for which market quotations are readily available at their market values
(generally the last reported sale price) and all other securities and assets at their fair value by the methods established by
the board of trustees of the underlying funds. The shares of many closed-end investment companies, after their initial public
offering, frequently trade at a price per share, which is different than the NAV per share. The difference represents a market
premium or market discount of such shares. There can be no assurances that the market discount or market premium on shares of
any closed-end investment company purchased by a Fund will not change.
The
Funds utilize various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy
that prioritizes inputs to valuation methods. The three levels of inputs are:
Level
1 – Unadjusted quoted prices in active markets for identical assets and liabilities that a Fund has the ability to access.
Level
2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for
similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level
3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing
a Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would
be based on the best information available.
The
availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including,
for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets,
and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less
observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment
exercised in determining fair value is greatest for instruments categorized in Level 3.
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
The
inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.
The
inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those
securities. The following tables summarize the inputs used as of March 31, 2020 for the Funds’ investments measured at fair
value:
Pinnacle
Sherman Multi-Strategy Core Fund
|
Assets *
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Exchange Traded Funds
|
|
$
|
32,616,977
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,616,977
|
|
|
Total
|
|
$
|
32,616,977
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,616,977
|
|
Pinnacle
TrendRating Innovative Equity Fund
|
Assets *
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Common Stock
|
|
$
|
4,107,428
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,107,428
|
|
|
REITs
|
|
|
626,588
|
|
|
|
—
|
|
|
|
—
|
|
|
|
626,588
|
|
|
Total
|
|
$
|
4,734,016
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,734,016
|
|
The
Funds did not hold any Level 3 securities during the period.
|
|
*
|
Refer
to the Portfolio of Investments for classification by asset class.
|
Security
Transactions and Related Income – Investment security transactions are accounted for on a trade date basis. Cost is
determined and gains and losses are based upon the specific identification method for both financial statement and federal income
tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Purchase
discounts and premiums on securities are accreted and amortized over the life of the respective securities using the effective
interest method.
Dividends
and Distributions to Shareholders – Dividends from net investment income, if any, are declared and paid annually. Distributable
net realized capital gains, if any, are declared and distributed annually. Dividends from net investment income and distributions
from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax”
differences are considered either temporary (e.g., deferred losses) or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment;
temporary differences do not require reclassification. Any such reclassifications will have no effect on net assets, results from
operations, or net asset value per share of a Fund. Dividends and distributions to shareholders are recorded on the ex-dividend
date.
Federal
Income Taxes – The Funds intend to continue to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no provision for
federal income tax is required. The Funds recognize the tax benefits of uncertain tax positions only where the position is “more
likely than not”
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
to
be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions and has concluded
that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions for the period ended September
30, 2017 to September 30, 2019 for the Funds or expected to be taken in the Funds’ September 30, 2020 year-end tax returns.
The Funds identify their major tax jurisdictions as U.S. federal, Ohio and foreign jurisdictions where a Fund makes significant
investments; however, each Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of
unrecognized tax benefits will change materially in the next twelve months.
Exchange
Traded Funds – The Funds may invest in exchange traded funds (“ETFs”). ETFs are a type of fund bought and
sold on a securities exchange. An ETF trades like common stock and may be actively managed or represent a fixed portfolio of securities.
The risks of owning an ETF generally reflect the risks of owning the underlying securities in which they invest, although the
lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their
value.
Expenses
– Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses, which
are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable (as determined by the Board),
taking into consideration the nature and type of expense and the relative sizes of the funds in the Trust.
Indemnification
– The Trust indemnifies its officers and trustees for certain liabilities that may arise from the performance of their
duties to the Trust. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of
representations and warranties and which provide general indemnities. The Funds’ maximum exposure under these arrangements
is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based
on experience, the risk of loss due to these warranties and indemnities appears to be remote.
|
|
3.
|
INVESTMENT
TRANSACTIONS
|
For
the six months ended March 31, 2020, cost of purchases and proceeds from sales of portfolio securities, other than short-term
investments and U.S. Government securities, amounted to the following:
|
Fund
|
|
Purchases
|
|
|
Sales
|
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
$
|
86,552,289
|
|
|
$
|
85,932,756
|
|
|
Pinnacle TrendRating Innovative Equity Fund
|
|
|
7,127,168
|
|
|
|
3,750,442
|
|
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
The
Funds may assess a short-term redemption fee of 1.00% of the total redemption amount if a shareholder sells their shares after
holding them for less than 60 days. The redemption fee is paid directly to the Funds. For the six months ended March 31, 2020,
the redemption fees paid to the funds were as follows:
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
|
|
|
|
Redemption Fee
|
|
|
Class C
|
|
$
|
4
|
|
|
Class I
|
|
|
98
|
|
|
|
|
|
|
|
|
|
5.
|
INVESTMENT
ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES
|
Pinnacle
Family Advisors, LLC serves as the Funds’ investment adviser (the “Adviser”).
Pursuant
to an Advisory Agreement with the Trust on behalf of the Funds, the Adviser, under the oversight of the Board, directs the daily
operations of the Funds and supervises the performance of administrative and professional services provided by others. As compensation
for its services and the related expenses borne by the Adviser, the Funds pay the Adviser a management fee, computed and accrued
daily and paid monthly, at an annual rate of 1.00% of the average daily net assets of Pinnacle Sherman Multi-Strategy Core Fund,
and 0.75% of average daily net assets for TrendRating Innovative Equity Fund paid monthly. For the six months ended March 31,
2020, Pinnacle Sherman Multi-Strategy Core Fund, and Pinnacle TrendRating Innovative Equity Fund incurred $149,218, and $12,177
in advisory fees respectively.
Pursuant
to a written contract (the “Waiver Agreement”), the Adviser has agreed, at least until July 31, 2021 for Pinnacle
Sherman Multi-Strategy Core Fund and January 31, 2021 for the Pinnacle TrendRating Innovative Equity Fund, to waive a portion
of its advisory fees and has agreed to reimburse the Funds for other expenses to the extent necessary so that the total expenses
incurred by the Funds (excluding front-end or contingent deferred loads, brokerage fees and commissions, acquired fund fees and
expenses, borrowing costs such as interest and dividend expenses on securities sold short, taxes, or extraordinary expenses, such
as litigation, not incurred in the ordinary course of the Funds’ business) do not exceed 1.49% per annum of Class A average
daily net assets, 2.24% per annum for Class C average daily net assets, and 1.24% per annum for Class I average daily net assets
for Pinnacle Sherman Multi-Strategy Core Fund; and 1.24% per annum of Class A average daily net assets, 1.99% per annum for Class
C average daily net assets, and 0.99% per annum for Class I average daily net assets for Pinnacle TrendRating Innovative Equity
Fund (the “expense limitation”).
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
If
the Adviser waives any fee or reimburses any expense pursuant to the Waiver Agreement, and a Fund’s operating expenses attributable
to Class A, Class C and Class I shares are subsequently less than the expense limitation, the Adviser shall be entitled to reimbursement
by the applicable Fund for such waived fees or reimbursed expenses provided that such reimbursement does not cause the Fund’s
expenses to exceed the lesser of the expense limitation in place at the time of the waiver or at the time of the reimbursement.
If the operating expenses attributable to the Class A, Class C and Class I shares subsequently exceed the expense limitation then
in place or in place at time of waiver, the reimbursements shall be suspended. The Adviser may seek recoupment only for expenses
waived or paid by it during the three years prior to such reimbursement; provided, however, that such expenses may only be reimbursed
to the extent they were waived or paid after the date of the Waiver Agreement (or any similar agreement). The Board may terminate
this expense reimbursement arrangement at any time. For the six months ended March 31, 2020, the Adviser of Pinnacle Sherman Multi-Strategy
Core Fund, and Pinnacle TrendRating Innovative Equity Fund waived and/or reimbursed $77,200 and $61,590 respectively in advisory
fees or expenses pursuant to the Waiver Agreement.
The
following amounts are subject to recapture until the following dates:
|
|
|
9/30/2020
|
|
|
9/30/2021
|
|
|
9/30/2022
|
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
$
|
115,925
|
|
|
$
|
131,985
|
|
|
$
|
162,100
|
|
|
Pinnalce TrendRating Innovative Equity Fund
|
|
|
—
|
|
|
|
—
|
|
|
|
116,003
|
|
Distributor
– The Trust, on behalf of the Funds, has adopted the Trust’s Class A and Class C Master Distribution and Shareholder
Servicing Plans (the “Plans”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that a monthly service
and/or distribution fee is calculated by the Funds at an annual rate of 0.25% and 1.00% of the average daily net assets attributable
to Class A shares and Class C shares, respectively, and is paid to Northern Lights Distributors, LLC (the “Distributor”),
to provide compensation for ongoing distribution-related activities or services and/or maintenance of the Funds’ shareholder
accounts, not otherwise required to be provided by the Adviser. Pursuant to the Plans, the Funds incurred distribution fees during
the period ended March 31, 2020 as follows:
|
|
|
Class A
|
|
|
Class C
|
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
$
|
6,808
|
|
|
$
|
55,996
|
|
|
Pinnacle TrendRating Innovative Equity Fund
|
|
|
8
|
|
|
|
—
|
|
The
Distributor acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. For the six months
ended March 31, 2020, the Distributor received $768 from front-end sales charge of which $108 was retained by the principal underwriter
or other affiliated broker-dealers for Pinnacle Multi-Strategy Core Fund Class A.
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
In
addition, certain affiliates of the Distributor provide services to the Funds as follows:
Gemini
Fund Services, LLC (“GFS”) - GFS, an affiliate of the Distributor, provides administration, fund accounting,
and transfer agent services to the Trust. Pursuant to separate servicing agreements with GFS, the Funds pay GFS customary fees
for providing administration, fund accounting and transfer agency services to each Fund. Certain officers of the Trust are also
officers of GFS, and are not paid any fees directly by the Funds for serving in such capacities.
Northern
Lights Compliance Services, LLC (“NLCS”) - NLCS, an affiliate of GFS and the Distributor, provides
a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS
and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Funds.
Blu
Giant LLC (“Blu Giant”) - Blu Giant, an affiliate of GFS and the Distributor, provides EDGAR
conversion and filing services as well as print management services for the Funds on an ad-hoc basis. For the provision of these
services, Blu Giant receives customary fees from the Funds.
Effective
February 1, 2019, NorthStar Financial Services Group, LLC, the parent company of GFS and its affiliated companies including NLD,
NLCS and Blu Giant (collectively, the “Gemini Companies”), sold its interest in the Gemini Companies to a third party
private equity firm that contemporaneously acquired Ultimus Fund Solutions, LLC (an independent mutual fund administration firm)
and its affiliates (collectively, the “Ultimus Companies”). As a result of these separate transactions, the Gemini
Companies and the Ultimus Companies are now indirectly owned through a common parent entity, The Ultimus Group, LLC.
The
beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption
of control of the fund, under Section 2(a)(9) of the 1940 Act. Persons controlling the Funds can determine the outcome of any
proposal submitted to the shareholders for approval, including changes to the Funds’ fundamental policies or the terms of
the advisory agreement with the Adviser. As of March 31, 2020, the following held in excess of 25% of the voting securities of
the Funds listed, for the sole benefit of customers and may be deemed to control the applicable Funds:
|
|
|
|
|
Percentage of Voting Securities as of
|
|
Fund
|
|
Shareholder
|
|
March 31, 2020
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
LPL Financial
|
|
30.1%
|
|
Pinnacle TrendRating Innovative Equity Fund
|
|
National Financial Services LLC
|
|
78.7%
|
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
|
|
7.
|
DISTRIBUTIONS
TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL
|
The
identified cost of investments in securities owned by each Fund for federal income tax purposes, and their respective unrealized
appreciation and depreciation at March 31, 2020, were as follows:
|
|
|
Cost for
|
|
|
Gross
|
|
|
Gross
|
|
|
Tax Net
|
|
|
|
|
Federal Tax
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Fund
|
|
purposes
|
|
|
Appreciation
|
|
|
Depreciation
|
|
|
App/Dep
|
|
|
Pinnacle Sherman Multi -Strategy Core
|
|
$
|
33,148,791
|
|
|
$
|
555,597
|
|
|
$
|
(1,087,411
|
)
|
|
$
|
(531,814
|
)
|
|
Pinnacle TrendRating Innovative Equity Fund
|
|
|
5,296,081
|
|
|
|
15,590
|
|
|
|
(577,655
|
)
|
|
|
(562,065
|
)
|
The
tax character of distributions paid for the year ended September 30, 2019 and September 30, 2018 was as follows:
|
|
|
For the period ended September 30, 2019
|
|
|
|
|
Ordinary
|
|
|
Long-Term
|
|
|
Return of
|
|
|
|
|
|
Fund
|
|
Income
|
|
|
Capital Gains
|
|
|
Capital
|
|
|
Total
|
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
$
|
1,580,031
|
|
|
$
|
933,142
|
|
|
$
|
—
|
|
|
$
|
2,513,173
|
|
|
Pinnacle Trend Rating Innovative Equity Fund
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the period ended September 30, 2018
|
|
|
|
|
Ordinary
|
|
|
Long-Term
|
|
|
Return of
|
|
|
|
|
|
Fund
|
|
Income
|
|
|
Capital Gains
|
|
|
Capital
|
|
|
Total
|
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
$
|
7,040,589
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,040,589
|
|
|
Pinnacle Trend Rating Innovative Equity Fund
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of September 30, 2019, the components of accumulated earnings/(losses) on a tax basis were as follows:
|
|
|
Undistributed
|
|
|
Undistributed
|
|
|
Capital Loss
|
|
|
Other
|
|
|
Post October Loss
|
|
|
Unrealized
|
|
|
Total
|
|
|
|
|
Ordinary
|
|
|
Long-Term
|
|
|
Carry
|
|
|
Book/Tax
|
|
|
and
|
|
|
Appreciation/
|
|
|
Accumulated
|
|
|
Fund
|
|
Income
|
|
|
Capital Gains
|
|
|
Forwards
|
|
|
Differences
|
|
|
Late Year Loss
|
|
|
(Losses)
|
|
|
Earnings/(Losses)
|
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
$
|
139,004
|
|
|
$
|
—
|
|
|
$
|
(934,856
|
)
|
|
$
|
—
|
|
|
$
|
(2,965,866
|
)
|
|
$
|
1,189,932
|
|
|
$
|
(2,571,786
|
)
|
|
Pinnacle Trend Rating Innovative Equity Fund
|
|
|
29,879
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
120,294
|
|
|
$
|
150,173
|
|
The
difference between book basis and tax basis accumulated net realized gain/(loss), and unrealized appreciation/(depreciation) from
investments is primarily attributable to the tax deferral of losses on wash sales.
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.
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
Capital
losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal
year for tax purposes. The following funds incurred and elected to defer such capital losses as follows:
|
|
|
Post October
|
|
|
Fund
|
|
Losses
|
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
$
|
2,965,866
|
|
|
Pinnacle Trend Rating Innovative Equity Fund
|
|
|
—
|
|
|
|
|
|
|
|
At
September 30, 2019, the Funds had capital loss carry forwards for federal income tax purposes available to offset future capital
gains, as follows:
|
|
|
Non-Expiring
|
|
|
Non-Expiring
|
|
|
|
|
|
Fund
|
|
Short-Term
|
|
|
Long-Term
|
|
|
Total
|
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
$
|
934,856
|
|
|
$
|
—
|
|
|
$
|
934,856
|
|
|
Pinnacle Trend Rating Innovative Equity Fund
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent
book and tax differences, primarily attributable to the tax treatment of the Funds non-deductible expenses, resulted in reclassifications
for the year or period ended September 30, 2019 as follows:
|
|
|
Paid
|
|
|
Accumulated
|
|
|
|
|
In
|
|
|
Earnings/
|
|
|
Fund
|
|
Capital
|
|
|
(Losses)
|
|
|
Pinnacle Sherman Multi-Strategy Core Fund
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Pinnacle Trend Rating Innovative Equity Fund
|
|
|
(48
|
)
|
|
|
48
|
|
|
PINNACLE
FUNDS
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
March
31, 2020
|
|
|
The
Board, after careful consideration, approved the reorganization of the Pinnacle Sherman Tactical Allocation Fund into the Pinnacle
Multi-Strategy Core Fund. The plan of the reorganization provides for the transfer of all the assets and the presumption of the
liabilities of the Pinnacle Sherman Tactical Allocation Fund. The following table illustrates the specifics of the reorganization
that occurred on March 27, 2020.
|
|
|
|
|
|
|
Pinnacle Multi-Strategy Core Fund
|
|
|
|
|
|
|
|
Shares Issued to
|
|
|
|
|
|
|
|
|
|
|
Pinnacle Sherman
|
|
|
Shareholders of
|
|
|
|
|
|
|
|
|
|
|
Tactical Allocation
|
|
|
Pinnacle Multi-
|
|
|
|
|
|
Combined (Post
|
|
|
Tax Status
|
|
Fund
|
|
|
Strategy Core Fund
|
|
|
Pre Merger
|
|
|
Merger) Net Assets
|
|
|
of Transfer
|
|
$
|
8,683,114
|
(1)
|
|
|
898,863
|
|
|
$
|
24,226,623
|
|
|
$
|
32,909,737
|
|
|
Non-taxable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes
unrealized appreciation in the amount of $201,425
|
Subsequent
events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements
were issued. Management has determined that no events or transactions occurred requiring adjustment or disclosure in the financial
statements.
|
PINNACLE
FUNDS
|
|
EXPENSE
EXAMPLES (Unaudited)
|
|
March
31, 2020
|
|
|
As
a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases of
Class A shares; (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses.
This example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 October
1, 2019 through March 31, 2020.
Actual
Expenses
The
“Actual” columns in the table below provide information about actual account values and actual expenses. You may use
the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number
in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account
during this period.
Hypothetical
Example for Comparison Purposes
The
“Hypothetical” columns in the table below provide information about hypothetical account values and hypothetical expenses
based on each 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
balances or expenses you paid for the period. You may use this information to 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) or redemption fees. Therefore, the table is useful in comparing ongoing costs only, and will
not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
|
|
|
|
|
|
|
Hypothetical
|
|
|
|
|
Actual*
|
|
(5%
return before expenses)
|
|
|
|
Beginning
|
|
|
|
|
|
|
|
Fund’s
|
Account
|
Ending
|
Expenses
|
|
Ending
|
Expenses
|
|
|
Annualized
|
Value
|
Account
Value
|
Paid
During
|
|
Account
Value
|
Paid
During
|
|
|
Expense
Ratio
|
10/1/19
|
3/31/20
|
Period
|
|
3/31/20
|
Period
|
|
|
|
|
|
|
|
|
|
|
Pinnacle
Sherman Multi-Strategy – Class A
|
1.49%
|
$1,000.00
|
$947.30
|
$ 7.25
|
|
$1,017.55
|
$ 7.52
|
|
Pinnacle
Sherman Multi-Strategy – Class C
|
2.24%
|
$1,000.00
|
$944.30
|
$ 10.89
|
|
$1,013.80
|
$ 11.28
|
|
|
|
|
|
|
|
|
|
|
Pinnacle
Sherman Multi-Strategy – Class I
|
1.24%
|
$1,000.00
|
$949.20
|
$ 6.04
|
|
$1,018.80
|
$ 6.26
|
|
Pinnacle
TrendRating Innovative Equity Fund – Class A
|
1.24%
|
$1,000.00
|
$938.90
|
$ 6.01
|
|
$1,018.80
|
$ 6.26
|
|
Pinnacle
TrendRating Innovative Equity Fund – Class C
|
1.99%
|
$1,000.00
|
$938.00
|
$ 9.64
|
|
$1,015.05
|
$
10.02
|
|
|
|
|
|
|
|
|
|
|
Pinnacle
TrendRating Innovative Equity Fund – Class I
|
0.99%
|
$1,000.00
|
$939.00
|
$ 4.80
|
|
$1,020.05
|
$ 5.00
|
|
|
*
|
Expenses
are equal to the average account value over the period, multiplied by a Fund’s annualized expense ratio, multiplied by the
number of days in the period (183) divided by the number of days in the fiscal year (366).
|
PRIVACY
NOTICE
Rev.
February 2014
|
FACTS
|
WHAT DOES NORTHERN LIGHTS FUND TRUST III DO WITH YOUR PERSONAL INFORMATION?
|
|
|
|
|
Why?
|
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
|
|
|
|
|
What?
|
The types of personal information we collect and share depend on the product or service you have with us. This information can include:
|
|
|
|
|
|
■
|
Social Security number
|
■
|
Purchase History
|
|
|
|
|
|
|
|
|
■
|
Assets
|
■
|
Account Balances
|
|
|
|
|
|
|
|
|
■
|
Retirement Assets
|
■
|
Account Transactions
|
|
|
|
|
|
|
|
|
■
|
Transaction History
|
■
|
Wire Transfer Instructions
|
|
|
|
|
|
|
|
|
■
|
Checking Account Information
|
|
|
|
|
|
|
|
When you are no longer our customer, we continue to share your information as described in this notice.
|
|
|
|
|
How?
|
All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Northern Lights Fund Trust III chooses to share; and whether you can limit this sharing.
|
|
Reasons
we can share your personal information
|
Does
Northern
Lights Fund
Trust III share?
|
Can
you limit this
sharing?
|
|
For our everyday business
purposes –
such as to process your
transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus
|
Yes
|
No
|
|
For our marketing
purposes –
to offer our products
and services to you
|
No
|
We
don’t share
|
|
For
joint marketing with other financial companies
|
No
|
We
don’t share
|
|
For our affiliates’
everyday business purposes –
information about your
transactions and experiences
|
No
|
We
don’t share
|
|
For our affiliates’
everyday business purposes –
information about your
creditworthiness
|
No
|
We
don’t share
|
|
For
nonaffiliates to market to you
|
No
|
We
don’t share
|
|
Questions?
|
Call
(402) 493-4603
|
|
|
|
|
|
|
|
|
Who we are
|
|
Who is providing this notice?
|
Northern Lights Fund Trust III
|
|
What we do
|
|
How
does Northern Lights Fund Trust III protect my personal information?
|
To protect your personal
information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer
safeguards and secured files and buildings.
Our service providers are held accountable for adhering to strict
policies and procedures to prevent any misuse of your nonpublic personal information.
|
|
How
does Northern Lights Fund Trust III collect my personal information?
|
We collect your personal information, for example, when you
■ Open an account
■ Provide account information
■ Give us your contact information
■ Make deposits or withdrawals from your account
■ Make a wire transfer
■ Tell us where to send the money
■ Tells us who receives the money
■ Show your government-issued ID
■ Show your driver’s license
We also collect your personal information from other companies.
|
|
Why
can’t I limit all sharing?
|
Federal law gives you
the right to limit only
■ Sharing
for affiliates’ everyday business purposes – information about your creditworthiness
■ Affiliates
from using your information to market to you
■ Sharing
for nonaffiliates to market to you
State laws and individual companies may
give you additional rights to limit sharing.
|
|
Definitions
|
|
Affiliates
|
Companies related by common ownership or
control. They can be financial and nonfinancial companies.
■ Northern
Lights Fund Trust III does not share with our affiliates.
|
|
Nonaffiliates
|
Companies not related by common ownership
or control. They can be financial and nonfinancial companies
■ Northern
Lights Fund Trust III does not share with nonaffiliates so they can market to you.
|
|
Joint
marketing
|
A formal agreement between nonaffiliated
financial companies that together market financial products or services to you.
■ Northern Lights Fund Trust III doesn’t jointly market.
|
|
|
|
|
|
|
|
PROXY
VOTING POLICY
Information
regarding how the Funds voted proxies relating to portfolio securities for the most recent 12 month period ended June 30 as well
as a description of the policies and procedures that the Funds used to determine how to vote proxies is available without charge,
upon request, by calling 1-888-985-9830 or by referring to the Securities and Exchange Commission’s (“SEC”) website
at http://www.sec.gov.
PORTFOLIO
HOLDINGS
The
Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on
Form NPORT. Form NPORT is available on the SEC’s website at http://www.sec.gov. The information on Form NPORT is available
without charge, upon request, by calling 1-888-985-9830.
|
|
|
INVESTMENT
ADVISER
|
|
Pinnacle
Family Advisors, LLC
|
|
620
W. Republic Road, Ste. 104
|
|
Springfield,
MO 65807
|
|
|
|
ADMINISTRATOR
|
|
Gemini
Fund Services, LLC
|
|
4221
North 203rd Street, Suite 100
|
|
Elkhorn,
NE 68022-3474
|