08/29/2024 | Press release | Distributed by Public on 08/29/2024 12:27
Fund | Costs of $10,000 investment | Costs paid as a percentage of a $10,000 investment |
Clipper Fund | $36.82 | 0.69%* |
* |
Annualized.
|
AVERAGE ANNUAL TOTAL RETURN FOR PERIODS ENDED 06/30/24 | 1 Year | 5 Years | 10 Years |
Clipper Fund | 29.45% | 11.94% | 10.17% |
S&P 500® Index | 24.56% | 15.03% | 12.85% |
Fund net assets as of 06/30/24 (in billions) | $1.2 |
Total number of portfolio holdings as of 06/30/24 | 33 |
Portfolio turnover rate for the period | 9% |
Total advisory fees paid for the period (in millions) | $3.1 |
Financials | 40.74% |
Communication Services | 17.44% |
Health Care | 14.12% |
Consumer Discretionary | 12.07% |
Information Technology | 8.63% |
ITEM 2. CODE OF ETHICS
Not Applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not Applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not Applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6. INVESTMENTS
(a) The complete Schedule of Investments is included in Item 7 of this Form N-CSR.
(b) Not Applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END INVESTMENT COMPANIES
ITEM 7. Financial Statements and Financial Highlights for Open-End Investment Companies:
|
|
Schedule of Investments
|
2
|
Statement of Assets and Liabilities
|
3
|
Statement of Operations
|
4
|
Statements of Changes in Net Assets
|
5
|
Notes to Financial Statements
|
6
|
Financial Highlights
|
11
|
Trustee Approval of Advisory Agreement
|
12
|
|
Shares
|
Value
(Note 1)
|
COMMON STOCK - (99.41%)
|
||
COMMUNICATION SERVICES - (17.44%)
|
||
Media & Entertainment - (17.44%)
|
||
Alphabet Inc., Class A
|
471,220
|
$85,832,723
|
ASAC II L.P. *(a)(b)(c)
|
407,313
|
454,236
|
Meta Platforms, Inc., Class A
|
228,940
|
115,436,127
|
Total Communication Services
|
201,723,086
|
|
CONSUMER DISCRETIONARY - (12.07%)
|
||
Consumer Discretionary Distribution & Retail - (8.39%)
|
||
Amazon.com, Inc. *
|
376,240
|
72,708,380
|
JD.com, Inc., Class A, ADR (China)
|
234,980
|
6,071,883
|
Naspers Ltd. - N (South Africa)
|
93,460
|
18,324,556
|
|
97,104,819
|
|
Consumer Services - (3.68%)
|
||
MGM Resorts International *
|
957,140
|
42,535,301
|
Total Consumer Discretionary
|
139,640,120
|
|
CONSUMER STAPLES - (0.97%)
|
||
Food, Beverage & Tobacco - (0.97%)
|
||
Tyson Foods, Inc., Class A
|
196,120
|
11,206,297
|
Total Consumer Staples
|
11,206,297
|
|
ENERGY - (0.34%)
|
||
ConocoPhillips
|
34,640
|
3,962,123
|
Total Energy
|
3,962,123
|
|
FINANCIALS - (40.74%)
|
||
Banks - (14.59%)
|
||
Danske Bank A/S (Denmark)
|
668,121
|
19,907,682
|
DBS Group Holdings Ltd. (Singapore)
|
1,167,980
|
30,827,437
|
JPMorgan Chase & Co.
|
88,322
|
17,864,007
|
U.S. Bancorp
|
1,135,750
|
45,089,275
|
Wells Fargo & Co.
|
928,102
|
55,119,978
|
|
168,808,379
|
|
Financial Services - (19.01%)
|
||
Capital Markets - (2.57%)
|
||
Bank of New York Mellon Corp.
|
497,013
|
29,766,109
|
Consumer Finance - (6.38%)
|
||
Capital One Financial Corp.
|
532,853
|
73,773,498
|
Financial Services - (10.06%)
|
||
Berkshire Hathaway Inc., Class A *
|
190
|
116,325,790
|
|
219,865,397
|
|
Insurance - (7.14%)
|
||
Life & Health Insurance - (1.30%)
|
||
Ping An Insurance (Group) Co. of China, Ltd.
- H (China)
|
3,326,500
|
15,079,696
|
Property & Casualty Insurance - (5.84%)
|
||
Markel Group Inc. *
|
42,857
|
67,528,061
|
|
82,607,757
|
|
Total Financials
|
471,281,533
|
|
HEALTH CARE - (14.12%)
|
||
Health Care Equipment & Services - (11.36%)
|
||
Cigna Group
|
116,950
|
38,660,162
|
Humana Inc.
|
156,590
|
58,509,853
|
Quest Diagnostics Inc.
|
136,120
|
18,632,106
|
Solventum Corp. *
|
295,500
|
15,626,040
|
|
131,428,161
|
|
Pharmaceuticals, Biotechnology & Life Sciences - (2.76%)
|
||
Viatris Inc.
|
3,001,650
|
31,907,539
|
Total Health Care
|
163,335,700
|
|
Shares
|
Value
(Note 1)
|
COMMON STOCK - (CONTINUED)
|
||
INDUSTRIALS - (2.84%)
|
||
Capital Goods - (2.05%)
|
||
AGCO Corp.
|
80,700
|
$7,898,916
|
Owens Corning
|
91,440
|
15,884,957
|
|
23,783,873
|
|
Transportation - (0.79%)
|
||
DiDi Global Inc., Class A, ADS (China) *
|
2,199,482
|
9,105,855
|
Total Industrials
|
32,889,728
|
|
INFORMATION TECHNOLOGY - (8.63%)
|
||
Semiconductors & Semiconductor Equipment - (7.14%)
|
||
Applied Materials, Inc.
|
231,520
|
54,636,405
|
Intel Corp.
|
903,060
|
27,967,768
|
|
82,604,173
|
|
Technology Hardware & Equipment - (1.49%)
|
||
Samsung Electronics Co., Ltd. (South Korea)
|
291,070
|
17,233,712
|
Total Information Technology
|
99,837,885
|
|
MATERIALS - (2.26%)
|
||
Teck Resources Ltd., Class B (Canada)
|
544,250
|
26,069,575
|
Total Materials
|
26,069,575
|
|
TOTAL COMMON STOCK -
(Identified cost $631,714,084)
|
1,149,946,047
|
|
Principal
|
Value
(Note 1)
|
SHORT-TERM INVESTMENTS - (0.56%)
|
||
Nomura Securities International, Inc. Joint
Repurchase Agreement, 5.31%, 07/01/24 (d)
|
$2,841,000
|
$2,841,000
|
StoneX Financial Inc. Joint Repurchase
Agreement, 5.31%, 07/01/24 (e)
|
3,609,000
|
3,609,000
|
TOTAL SHORT-TERM INVESTMENTS -
(Identified cost $6,450,000)
|
6,450,000
|
|
Total Investments - (99.97%) -
(Identified cost $638,164,084)
|
1,156,396,047
|
|
Other Assets Less Liabilities - (0.03%)
|
364,326
|
|
Net Assets - (100.00%)
|
$1,156,760,373
|
ADR:
|
American Depositary Receipt
|
ADS:
|
American Depositary Share
|
*
|
Non-income producing security.
|
(a)
|
Restricted Security - See Note 6 of the Notes to Financial Statements.
|
(b)
|
The value of this security was determined using significant unobservable
inputs. See Note 1 of the Notes to Financial Statements.
|
(c)
|
Limited partnership units.
|
(d)
|
Dated 06/28/24, repurchase value of $2,842,257 (collateralized
by: U.S. Government agency mortgages and obligations in a pooled cash
account, 1.53%-8.875%, 04/30/26-12/20/51, total market value
$2,897,820).
|
(e)
|
Dated 06/28/24, repurchase value of $3,610,597 (collateralized
by: U.S. Government agency mortgages and obligation in a pooled cash
account, 1.02%-7.50%, 09/15/24-03/20/73, total market value
$3,681,180).
|
|
|
ASSETS:
|
|
Investments in securities, at value* (see accompanying Schedule of Investments)
|
$1,156,396,047
|
Cash
|
42,484
|
Receivables:
|
|
Capital stock sold
|
47,214
|
Dividends and interest
|
1,501,072
|
Prepaid expenses
|
5,350
|
Total assets
|
1,157,992,167
|
|
|
LIABILITIES:
|
|
Payables:
|
|
Capital stock redeemed
|
446,146
|
Accrued custodian fees
|
94,658
|
Accrued investment advisory fees
|
536,979
|
Accrued transfer agent fees
|
98,410
|
Other accrued expenses
|
55,601
|
Total liabilities
|
1,231,794
|
|
|
NET ASSETS
|
$1,156,760,373
|
|
|
SHARES OUTSTANDING
|
8,143,132
|
|
|
NET ASSET VALUE, offering, and redemption price per share (Net assets ÷ Shares outstanding)
|
$142.05
|
|
|
NET ASSETS CONSIST OF:
|
|
Paid-in capital
|
$595,168,356
|
|
|
Distributable earnings
|
561,592,017
|
Net Assets
|
$1,156,760,373
|
|
|
*Including:
|
|
Cost of investments
|
$638,164,084
|
INVESTMENT INCOME:
|
||
Income:
|
||
Dividends*
|
$9,176,720
|
|
Interest
|
286,938
|
|
Total income
|
9,463,658
|
|
|
||
Expenses:
|
||
Investment advisory fees (Note 3)
|
$3,102,363
|
|
Custodian fees
|
108,766
|
|
Transfer agent fees
|
427,642
|
|
Audit fees
|
30,324
|
|
Legal fees
|
15,233
|
|
Reports to shareholders
|
16,052
|
|
Trustees' fees and expenses
|
113,473
|
|
Registration and filing fees
|
19,500
|
|
Miscellaneous
|
35,352
|
|
Total expenses
|
3,868,705
|
|
Net investment income
|
5,594,953
|
|
|
||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
|
||
Net realized gain (loss) from:
|
||
Investment transactions
|
72,727,142
|
|
Foreign currency transactions
|
(7,873
)
|
|
Net realized gain
|
72,719,269
|
|
Net increase in unrealized appreciation
|
74,345,937
|
|
Net realized and unrealized gain on investments and foreign
currency transactions
|
147,065,206
|
|
Net increase in net assets resulting from operations
|
$152,660,159
|
|
|
||
|
||
*Net of foreign taxes withheld of
|
$220,878
|
|
Six months ended
June 30, 2024
(Unaudited)
|
Year ended
December 31, 2023
|
|
||
OPERATIONS:
|
||
Net investment income
|
$5,594,953
|
$10,172,230
|
Net realized gain from investments and foreign currency transactions
|
72,719,269
|
63,152,154
|
Net increase in unrealized appreciation on investments and foreign currency
transactions
|
74,345,937
|
191,848,616
|
Net increase in net assets resulting from operations
|
152,660,159
|
265,173,000
|
|
||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
|
(47,201,579
)
|
(63,561,433
)
|
|
||
CAPITAL SHARE TRANSACTIONS:
|
||
Net decrease in net assets resulting from capital share transactions (Note 4)
|
(15,466,196
)
|
(14,850,221
)
|
|
||
Total increase in net assets
|
89,992,384
|
186,761,346
|
|
||
NET ASSETS:
|
||
Beginning of period
|
1,066,767,989
|
880,006,643
|
End of period
|
$1,156,760,373
|
$1,066,767,989
|
|
Investments in Securities at Value
|
|||
|
Valuation Inputs
|
|||
|
Level 1:
Quoted Prices
|
Level 2:
Other Significant
Observable
Inputs
|
Level 3:
Significant
Unobservable
Inputs
|
Total
|
Common Stock:
|
||||
Communication Services
|
$201,268,850
|
$-
|
$454,236
|
$201,723,086
|
Consumer Discretionary
|
139,640,120
|
-
|
-
|
139,640,120
|
Consumer Staples
|
11,206,297
|
-
|
-
|
11,206,297
|
Energy
|
3,962,123
|
-
|
-
|
3,962,123
|
Financials
|
471,281,533
|
-
|
-
|
471,281,533
|
Health Care
|
163,335,700
|
-
|
-
|
163,335,700
|
Industrials
|
32,889,728
|
-
|
-
|
32,889,728
|
Information Technology
|
99,837,885
|
-
|
-
|
99,837,885
|
Materials
|
26,069,575
|
-
|
-
|
26,069,575
|
Short-Term Investments
|
-
|
6,450,000
|
-
|
6,450,000
|
Total Investments
|
$1,149,491,811
|
$6,450,000
|
$454,236
|
$1,156,396,047
|
|
Beginning
Balance at
January 1,
2024
|
Cost of
Purchases
|
Proceeds
from Sales
|
Net Change in
Unrealized
Appreciation
(Depreciation)
|
Net Realized
Gain (Loss)
|
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
Ending
Balance at
June 30,
2024
|
Investments in
Securities:
|
||||||||
Common
Stock
|
$428,697
|
$-
|
$-
|
$25,539
|
$-
|
$-
|
$-
|
$454,236
|
Total Level 3
|
$428,697
|
$-
|
$-
|
$25,539
|
$-
|
$-
|
$-
|
$454,236
|
|
Fair Value at
June 30, 2024
|
Valuation
Technique
|
Unobservable
Input
|
Amount
|
Impact to
Valuation from
an Increase in Input
|
Investments in Securities:
|
|
|
|
|
|
Common Stock
|
$454,236
|
Discounted Cash Flow
|
Annualized Yield
|
6.370%
|
Decrease
|
Total Level 3
|
$454,236
|
|
|
|
|
Cost
|
$643,372,654
|
|
|
Unrealized appreciation
|
579,516,786
|
Unrealized depreciation
|
(66,493,393
)
|
Net unrealized appreciation
|
$513,023,393
|
|
|
Six months ended June 30, 2024 (Unaudited)
|
|||
|
|
Sold
|
Reinvestment of
Distributions
|
Redeemed
|
Net Decrease
|
|
|
||||
Shares:
|
|
67,901
|
261,665
|
(440,205
)
|
(110,639
)
|
Value:
|
|
$9,377,470
|
$36,470,814
|
$(61,314,480
)
|
$(15,466,196
)
|
|
|
Year ended December 31, 2023
|
|||
|
|
Sold
|
Reinvestment of
Distributions
|
Redeemed
|
Net Decrease
|
|
|
||||
Shares:
|
|
109,453
|
509,458
|
(755,344
)
|
(136,433
)
|
Value:
|
|
$12,865,981
|
$60,886,866
|
$(88,603,068
)
|
$(14,850,221
)
|
Security
|
Initial
Acquisition
Date
|
Units
|
Cost per
Unit
|
Valuation per Unit
as of June 30, 2024
|
|
||||
ASAC II L.P.
|
10/10/13
|
407,313
|
$1.0000
|
$1.1152
|
|
Six months
ended
June 30,
2024
(Unaudited)
|
Year ended December 31,
|
||||
2023
|
2022
|
2021
|
2020
|
2019
|
||
Net Asset Value, Beginning of Period
|
$129.25
|
$104.89
|
$136.38
|
$131.69
|
$122.75
|
$96.09
|
|
||||||
Income (Loss) from Investment Operations:
|
||||||
Net Investment Incomea
|
0.69
|
1.24
|
1.10
|
0.49
|
0.52
|
0.67
|
Net Realized and Unrealized Gains (Losses)
|
18.06
|
31.00
|
(26.64
)
|
23.01
|
11.65
|
27.79
|
Total from Investment Operations
|
18.75
|
32.24
|
(25.54
)
|
23.50
|
12.17
|
28.46
|
|
||||||
Dividends and Distributions:
|
||||||
Dividends from Net Investment Income
|
(0.62
)
|
(1.28
)
|
(1.25
)
|
(0.49
)
|
(0.98
)
|
(1.10
)
|
Distributions from Realized Gains
|
(5.33
)
|
(6.60
)
|
(4.70
)
|
(18.32
)
|
(2.25
)
|
(0.70
)
|
Total Dividends and Distributions
|
(5.95
)
|
(7.88
)
|
(5.95
)
|
(18.81
)
|
(3.23
)
|
(1.80
)
|
|
||||||
Net Asset Value, End of Period
|
$142.05
|
$129.25
|
$104.89
|
$136.38
|
$131.69
|
$122.75
|
|
||||||
Total Returnb
|
14.59%
|
31.48%
|
(18.75)%
|
17.78%
|
9.96%
|
29.63%
|
|
||||||
Ratios/Supplemental Data:
|
||||||
Net Assets, End of Period (in millions)
|
$1,157
|
$1,067
|
$880
|
$1,189
|
$1,093
|
$1,123
|
Ratio of Expenses to Average Net Assets:
|
||||||
Gross
|
0.69%
c
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
Netd
|
0.69%
c
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
Ratio of Net Investment Income to Average
|
||||||
Net Assets
|
0.99%
c
|
1.05%
|
0.95%
|
0.33%
|
0.45%
|
0.59%
|
Portfolio Turnover Ratee
|
9%
|
8%
|
9%
|
25%
|
10%
|
7%
|
|
|
a
|
Per share calculations were based on average shares outstanding for the period.
|
b
|
Assumes hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the
fiscal period. Total returns are not annualized for periods of less than one year.
|
c
|
Annualized.
|
d
|
The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of certain reimbursements and/or waivers from the Adviser.
|
e
|
The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio
securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded
from the calculation.
|
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not Applicable.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no changes to the procedure by which shareholders may recommend nominees to the Registrant's Board of Trustees.
ITEM 16. CONTROLS AND PROCEDURES
(a) The Registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))), that such controls and procedures are effective as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's semi-annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION
Not Applicable.
ITEM 19. EXHIBITS
(a) (1) Not Applicable.
(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CLIPPER FUNDS TRUST | |
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By |
/s/ Kenneth C. Eich Kenneth C. Eich Principal Executive Officer |
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Date: | August 21, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By |
/s/ Kenneth C. Eich Kenneth C. Eich Principal Executive Officer |
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Date: | August 21, 2024 |
By |
/s/ Douglas A. Haines Douglas A. Haines Principal Financial Officer and Principal Accounting Officer |
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Date: | August 21, 2024 |