UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-23859
Advisor Managed Portfolios
(Exact name of registrant as specified in charter)
615 East Michigan Street
Milwaukee, Wisconsin 53202
(Address of principal executive offices) (Zip code)
Russell B. Simon
Advisor Managed Portfolios
2020 East Financial Way, Suite 100
Glendora, CA 91741
(Name and address of agent for service)
(626) 914-7395
Registrant’s telephone number, including area code
Date of fiscal year end: March 31
Date of reporting period: September 30, 2024
Item 1. Reports to Stockholders.
| | |
| Optimize Strategy Index ETF | |
OPTZ (Principal U.S. Listing Exchange: NASDAQ) |
Semi-Annual Shareholder Report | September 30, 2024 |
This semi-annual shareholder report contains important information about the Optimize Strategy Index ETF for the period of April 22, 2024, to September 30, 2024. You can find additional information about the Fund at https://www.optzfund.com/optz. You can also request this information by contacting us at 1-800-617-0004.
WHAT WERE THE FUND COSTS FOR THE PERIOD? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
Optimize Strategy Index ETF | $24* | 0.50%** |
* | Amount shown reflects the expenses of the Fund from inception date through September 30, 2024. Expenses would be higher if the Fund had been in operation for the full six months. |
** | Expense Ratio is annualized. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Net Assets | $154,520,862 |
Number of Holdings | 331 |
Portfolio Turnover | 39% |
Visit https://www.optzfund.com/optz for more recent performance information.
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
| |
Top 10 Holdings | (%) |
Arista Networks, Inc. | 1.3% |
Intel Corp. | 1.3% |
First Solar, Inc. | 1.3% |
Advanced Micro Devices, Inc. | 1.3% |
NVIDIA Corp. | 1.3% |
SMART Global Holdings, Inc. | 1.3% |
Applied Materials, Inc. | 1.2% |
Dell Technologies, Inc. - Class C | 1.2% |
Salesforce, Inc. | 1.2% |
F5, Inc. | 1.2% |
| |
Top Sectors | (%) |
Technology | 25.7% |
Consumer, Cyclical | 18.3% |
Communications | 15.7% |
Consumer, Non-cyclical | 14.0% |
Financial | 11.0% |
Industrial | 10.0% |
Energy | 2.4% |
Basic Materials | 1.8% |
Utilities | 0.7% |
Cash & Other | 0.4% |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://www.optzfund.com/optz.
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Sound Capital Solutions LLC documents not be householded, please contact Sound Capital Solutions LLC at 1-800-617-0004, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Sound Capital Solutions LLC or your financial intermediary.
Optimize Strategy Index ETF | PAGE 1 | TSR-SAR-00777X538 |
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports
Item 6. Investments.
| (a) | Schedule of Investments is included within the financial statements filed under Item 7 of this Form. |
Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.
OPTIMIZE STRATEGY INDEX ETF
Financial Statements
September 30, 2024
TABLE OF CONTENTS
Optimize Strategy Index ETF
Schedule of Investments
September 30, 2024 (Unaudited)
| | | | | | |
COMMON STOCKS - 99.6%
| | | | | | |
Banking, Investing & Insurance - 11.0%
|
AerCap Holdings NV | | | 3,607 | | | $341,655 |
Allstate Corp. | | | 1,760 | | | 333,784 |
American Express Co. | | | 1,337 | | | 362,594 |
Ameriprise Financial, Inc. | | | 728 | | | 342,022 |
Apollo Global Management, Inc. | | | 3,019 | | | 377,103 |
Arch Capital Group Ltd.(a) | | | 2,958 | | | 330,941 |
Ares Management Corp. - Class A | | | 2,280 | | | 355,315 |
Assurant, Inc. | | | 1,693 | | | 336,670 |
Assured Guaranty Ltd. | | | 4,022 | | | 319,829 |
Axos Financial, Inc.(a) | | | 5,151 | | | 323,895 |
BlackRock, Inc. | | | 376 | | | 357,016 |
Block, Inc.(a) | | | 5,118 | | | 343,571 |
Bread Financial Holdings, Inc. | | | 5,903 | | | 280,865 |
Brighthouse Financial, Inc.(a) | | | 7,715 | | | 347,406 |
Broadridge Financial Solutions, Inc. | | | 1,569 | | | 337,382 |
Brown & Brown, Inc. | | | 3,144 | | | 325,718 |
Cboe Global Markets, Inc. | | | 1,546 | | | 316,729 |
Chubb Ltd. | | | 1,090 | | | 314,345 |
Cincinnati Financial Corp. | | | 2,411 | | | 328,185 |
CME Group, Inc. | | | 1,421 | | | 313,544 |
Coinbase Global, Inc. - Class A(a) | | | 2,193 | | | 390,727 |
Corpay, Inc.(a) | | | 1,034 | | | 323,394 |
Fidelis Insurance Holdings Ltd. | | | 17,168 | | | 310,054 |
Fiserv, Inc.(a) | | | 1,920 | | | 344,928 |
Global Payments, Inc. | | | 3,009 | | | 308,182 |
Globe Life, Inc. | | | 3,056 | | | 323,661 |
Goldman Sachs Group, Inc. | | | 681 | | | 337,170 |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | | | 10,176 | | | 350,767 |
Hartford Financial Services Group, Inc. | | | 2,737 | | | 321,899 |
Intercontinental Exchange, Inc. | | | 2,033 | | | 326,581 |
KKR & Co., Inc. | | | 2,697 | | | 352,174 |
LendingClub Corp.(a) | | | 29,902 | | | 341,780 |
loanDepot, Inc. - Class A(a) | | | 130,080 | | | 355,118 |
MarketAxess Holdings, Inc. | | | 1,220 | | | 312,564 |
Moody’s Corp. | | | 687 | | | 326,043 |
Mr Cooper Group, Inc.(a) | | | 3,652 | | | 336,641 |
MSCI, Inc. | | | 582 | | | 339,265 |
Navient Corp. | | | 19,791 | | | 308,542 |
NCR Atleos Corp.(a) | | | 11,248 | | | 320,905 |
Paysafe Ltd.(a) | | | 14,690 | | | 329,497 |
PennyMac Mortgage Investment Trust | | | 23,692 | | | 337,848 |
PROG Holdings, Inc. | | | 7,283 | | | 353,153 |
Progressive Corp. | | | 1,314 | | | 333,441 |
Prudential Financial, Inc. | | | 2,880 | | | 348,768 |
RenaissanceRe Holdings Ltd. | | | 1,264 | | | 344,314 |
S&P Global, Inc. | | | 640 | | | 330,637 |
Selective Insurance Group, Inc. | | | 3,513 | | | 327,763 |
T Rowe Price Group, Inc. | | | 3,203 | | | 348,903 |
Travelers Cos., Inc. | | | 1,391 | | | 325,661 |
| | | | | | |
| | | | | | |
Visa, Inc. - Class A | | | 1,165 | | | $320,317 |
Willis Towers Watson PLC | | | 1,121 | | | 330,168 |
| | | | | | 17,049,434 |
Bits & Bytes - 36.6%(b)
| | | | | | |
Adobe, Inc.(a) | | | 356 | | | 184,330 |
Advanced Micro Devices, Inc.(a) | | | 12,326 | | | 2,022,450 |
Apple, Inc. | | | 7,612 | | | 1,773,596 |
Applied Materials, Inc. | | | 9,539 | | | 1,927,355 |
Arista Networks, Inc.(a) | | | 5,342 | | | 2,050,365 |
Axcelis Technologies, Inc.(a) | | | 17,190 | | | 1,802,372 |
Benchmark Electronics, Inc. | | | 41,134 | | | 1,823,059 |
Booz Allen Hamilton Holding Corp. | | | 11,022 | | | 1,793,941 |
Cadence Design Systems, Inc.(a) | | | 6,723 | | | 1,822,135 |
Cirrus Logic, Inc.(a) | | | 12,753 | | | 1,584,050 |
Crowdstrike Holdings, Inc. -
Class A (a) | | | 6,549 | | | 1,836,798 |
Dell Technologies, Inc. - Class C | | | 15,820 | | | 1,875,303 |
F5, Inc.(a) | | | 8,431 | | | 1,856,506 |
First Solar, Inc.(a) | | | 8,122 | | | 2,025,952 |
GoDaddy, Inc. - Class A(a) | | | 11,216 | | | 1,758,444 |
Infinera Corp.(a) | | | 268,998 | | | 1,815,737 |
Intel Corp. | | | 86,883 | | | 2,038,275 |
International Business Machines Corp. | | | 8,038 | | | 1,777,041 |
Itron, Inc.(a) | | | 16,680 | | | 1,781,591 |
Motorola Solutions, Inc. | | | 3,894 | | | 1,750,859 |
NVIDIA Corp. | | | 16,409 | | | 1,992,709 |
Qualys, Inc.(a) | | | 13,581 | | | 1,744,615 |
Roper Technologies, Inc. | | | 2,946 | | | 1,639,272 |
Salesforce, Inc. | | | 6,813 | | | 1,864,786 |
ServiceNow, Inc.(a) | | | 2,035 | | | 1,820,084 |
SMART Global Holdings, Inc.(a) | | | 93,544 | | | 1,959,746 |
Synopsys, Inc.(a) | | | 3,585 | | | 1,815,408 |
TE Connectivity PLC | | | 11,698 | | | 1,766,281 |
TTM Technologies, Inc.(a) | | | 94,038 | | | 1,716,194 |
VeriSign, Inc.(a) | | | 9,202 | | | 1,748,012 |
Vizio Holding Corp. - Class A(a) | | | 149,038 | | | 1,664,754 |
Wix.com Ltd.(a) | | | 10,339 | | | 1,728,371 |
| | | | | | 56,760,391 |
Building Blocks - 2.8%
| | | | | | |
Air Products and Chemicals, Inc. | | | 895 | | | 266,477 |
Ashland, Inc. | | | 2,820 | | | 245,255 |
Avient Corp. | | | 5,331 | | | 268,256 |
Carpenter Technology Corp. | | | 1,849 | | | 295,063 |
Celanese Corp. | | | 1,967 | | | 267,433 |
Eagle Materials, Inc. | | | 980 | | | 281,897 |
Eastman Chemical Co. | | | 2,476 | | | 277,188 |
Ecolab, Inc. | | | 963 | | | 245,883 |
Gatos Silver, Inc.(a) | | | 20,542 | | | 309,773 |
Linde PLC | | | 515 | | | 245,583 |
Louisiana-Pacific Corp. | | | 2,617 | | | 281,223 |
Martin Marietta Materials, Inc. | | | 470 | | | 252,978 |
PureCycle Technologies, Inc.(a) | | | 49,217 | | | 467,562 |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Optimize Strategy Index ETF
Schedule of Investments
September 30, 2024 (Unaudited)(Continued)
| | | | | | |
COMMON STOCKS - (Continued)
|
Building Blocks - (Continued)
|
Sherwin-Williams Co. | | | 667 | | | $254,574 |
Vulcan Materials Co. | | | 1,018 | | | 254,938 |
| | | | | | 4,214,083 |
Communication & Media Services - 9.9%
| | | |
AMC Entertainment Holdings,
Inc.(a) | | | 193,305 | | | 879,538 |
AppLovin Corp. - Class A(a) | | | 11,264 | | | 1,470,514 |
AST SpaceMobile, Inc.(a) | | | 34,905 | | | 912,766 |
AT&T, Inc. | | | 45,346 | | | 997,612 |
Comcast Corp. - Class A | | | 23,939 | | | 999,932 |
Electronic Arts, Inc. | | | 6,593 | | | 945,700 |
InterDigital, Inc. | | | 6,892 | | | 976,114 |
Lumen Technologies, Inc.(a) | | | 156,058 | | | 1,108,012 |
Meta Platforms, Inc. - Class A | | | 1,896 | | | 1,085,346 |
Netflix, Inc.(a) | | | 1,427 | | | 1,012,128 |
RingCentral, Inc. - Class A(a) | | | 32,479 | | | 1,027,311 |
T-Mobile US, Inc. | | | 4,927 | | | 1,016,736 |
Trump Media & Technology Group Corp.(a) | | | 53,297 | | | 856,483 |
Walt Disney Co. | | | 10,764 | | | 1,035,389 |
Zoom Video Communications, Inc. - Class A(a) | | | 14,120 | | | 984,729 |
| | | | | | 15,308,310 |
Consumer Elastic - 15.6%
| | | | | | |
Abercrombie & Fitch Co. -
Class A(a) | | | 3,967 | | | 554,983 |
Amazon.com, Inc.(a) | | | 3,007 | | | 560,294 |
Aptiv PLC(a) | | | 7,541 | | | 543,027 |
Autoliv, Inc. | | | 5,364 | | | 500,837 |
Beazer Homes USA, Inc.(a) | | | 16,727 | | | 571,562 |
Brinker International, Inc.(a) | | | 7,503 | | | 574,205 |
Burlington Stores, Inc.(a) | | | 1,987 | | | 523,535 |
Caleres, Inc. | | | 13,393 | | | 442,639 |
Carvana Co.(a) | | | 3,709 | | | 645,773 |
Churchill Downs, Inc. | | | 3,776 | | | 510,553 |
Crocs, Inc.(a) | | | 4,010 | | | 580,688 |
Dana, Inc. | | | 50,801 | | | 536,459 |
Deckers Outdoor Corp.(a) | | | 3,617 | | | 576,731 |
Dick’s Sporting Goods, Inc. | | | 2,378 | | | 496,289 |
Domino’s Pizza, Inc. | | | 1,267 | | | 544,987 |
Etsy, Inc.(a) | | | 9,661 | | | 536,475 |
Five Below, Inc.(a) | | | 6,251 | | | 552,276 |
Garmin Ltd. | | | 2,872 | | | 505,558 |
Genuine Parts Co. | | | 3,851 | | | 537,908 |
Hanesbrands, Inc.(a) | | | 81,695 | | | 600,458 |
Las Vegas Sands Corp. | | | 12,949 | | | 651,852 |
Lear Corp. | | | 4,667 | | | 509,403 |
Light & Wonder, Inc. - Class A(a) | | | 4,906 | | | 445,121 |
Lowe’s Cos., Inc. | | | 2,114 | | | 572,577 |
Lululemon Athletica, Inc.(a) | | | 1,949 | | | 528,861 |
Marriott International, Inc./MD - Class A | | | 2,261 | | | 562,085 |
| | | | | | |
| | | | | | |
McDonald’s Corp. | | | 1,780 | | | $542,028 |
Norwegian Cruise Line Holdings Ltd.(a) | | 29,197 | | | 598,830 |
ODP Corp.(a) | | | 17,586 | | | 523,184 |
O’Reilly Automotive, Inc.(a) | | | 461 | | | 530,888 |
Petco Health & Wellness Co.,
Inc.(a) | | | 168,903 | | | 768,508 |
PVH Corp. | | | 5,390 | | | 543,474 |
Ralph Lauren Corp. | | | 2,983 | | | 578,314 |
Ross Stores, Inc. | | | 3,287 | | | 494,726 |
Royal Caribbean Cruises Ltd. | | | 3,302 | | | 585,643 |
Sally Beauty Holdings, Inc.(a) | | | 43,152 | | | 585,573 |
Signet Jewelers Ltd. | | | 6,430 | | | 663,191 |
Tesla, Inc.(a) | | | 2,454 | | | 642,039 |
Ulta Beauty, Inc.(a) | | | 1,346 | | | 523,756 |
Whirlpool Corp. | | | 5,277 | | | 564,639 |
Wolverine World Wide, Inc. | | | 35,373 | | | 616,198 |
Wynn Resorts Ltd. | | | 6,450 | | | 618,426 |
YETI Holdings, Inc.(a) | | | 13,264 | | | 544,222 |
| | | | | | 24,088,775 |
Consumer Inelastic - 4.6%
| | | | | | |
Bunge Global SA | | | 4,520 | | | 436,813 |
Church & Dwight Co., Inc. | | | 4,416 | | | 462,444 |
Colgate-Palmolive Co. | | | 4,298 | | | 446,175 |
Constellation Brands, Inc. -
Class A | | | 1,861 | | | 479,561 |
Costco Wholesale Corp. | | | 528 | | | 468,083 |
CVS Health Corp. | | | 7,955 | | | 500,210 |
Dole PLC | | | 29,113 | | | 474,251 |
Energizer Holdings, Inc. | | | 14,931 | | | 474,209 |
Lineage, Inc. | | | 5,493 | | | 430,541 |
MercadoLibre, Inc.(a) | | | 234 | | | 480,159 |
Molson Coors Beverage Co. -
Class B | | | 8,276 | | | 476,036 |
PepsiCo, Inc. | | | 2,622 | | | 445,871 |
Target Corp. | | | 2,941 | | | 458,384 |
United Natural Foods, Inc.(a) | | | 30,169 | | | 507,442 |
Walgreens Boots Alliance, Inc. | | | 51,600 | | | 462,336 |
| | | | | | 7,002,515 |
Nuts & Bolts - 7.7%
| | | | | | |
A O Smith Corp. | | | 2,628 | | | 236,073 |
Applied Industrial Technologies,
Inc. | | | 994 | | | 221,791 |
Archer Aviation, Inc. - Class A(a) | | | 64,404 | | | 195,144 |
Axon Enterprise, Inc.(a) | | | 567 | | | 226,573 |
Boeing Co.(a) | | | 1,274 | | | 193,699 |
BrightView Holdings, Inc.(a) | | | 13,084 | | | 205,942 |
Caterpillar, Inc. | | | 610 | | | 238,583 |
Chart Industries, Inc.(a) | | | 1,717 | | | 213,148 |
Comfort Systems USA, Inc. | | | 636 | | | 248,263 |
Delta Air Lines, Inc. | | | 4,829 | | | 245,265 |
DocuSign, Inc.(a) | | | 3,251 | | | 201,855 |
Eaton Corp. PLC | | | 675 | | | 223,722 |
Elastic NV(a) | | | 2,744 | | | 210,629 |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
TABLE OF CONTENTS
Optimize Strategy Index ETF
Schedule of Investments
September 30, 2024 (Unaudited)(Continued)
| | | | | | |
COMMON STOCKS - (Continued)
|
Nuts & Bolts - (Continued)
|
EMCOR Group, Inc. | | | 570 | | | $245,402 |
Enviri Corp.(a) | | | 18,490 | | | 191,187 |
Equifax, Inc. | | | 687 | | | 201,882 |
FedEx Corp. | | | 710 | | | 194,313 |
Generac Holdings, Inc.(a) | | | 1,464 | | | 232,600 |
Griffon Corp. | | | 3,231 | | | 226,170 |
Honeywell International, Inc. | | | 1,025 | | | 211,878 |
Hubbell, Inc. | | | 540 | | | 231,309 |
Huntington Ingalls Industries, Inc. | | | 714 | | | 188,767 |
JetBlue Airways Corp.(a) | | | 37,943 | | | 248,906 |
Lincoln Electric Holdings, Inc. | | | 1,099 | | | 211,030 |
Manhattan Associates, Inc.(a) | | | 801 | | | 225,385 |
MRC Global, Inc.(a) | | | 16,680 | | | 212,503 |
Oshkosh Corp. | | | 1,980 | | | 198,416 |
PACCAR, Inc. | | | 2,157 | | | 212,853 |
Parker-Hannifin Corp. | | | 350 | | | 221,137 |
Paycom Software, Inc. | | | 1,299 | | | 216,374 |
Paylocity Holding Corp.(a) | | | 1,315 | | | 216,936 |
Pegasystems, Inc. | | | 2,806 | | | 205,091 |
Pentair PLC | | | 2,360 | | | 230,784 |
Phinia, Inc. | | | 4,167 | | | 191,807 |
Pitney Bowes, Inc. | | | 29,888 | | | 213,101 |
Quanta Services, Inc. | | | 811 | | | 241,800 |
Republic Services, Inc. | | | 949 | | | 190,597 |
REV Group, Inc. | | | 7,717 | | | 216,539 |
Saia, Inc.(a) | | | 478 | | | 209,010 |
SkyWest, Inc.(a) | | | 2,668 | | | 226,833 |
Stagwell, Inc.(a) | | | 29,978 | | | 210,446 |
Sterling Infrastructure, Inc.(a) | | | 1,764 | | | 255,815 |
Tidewater, Inc.(a) | | | 2,586 | | | 185,649 |
Trane Technologies PLC | | | 587 | | | 228,185 |
Tutor Perini Corp.(a) | | | 8,915 | | | 242,131 |
United Rentals, Inc. | | | 294 | | | 238,061 |
Verisk Analytics, Inc. | | | 742 | | | 198,826 |
Vertiv Holdings Co. - Class A | | | 2,830 | | | 281,557 |
Westinghouse Air Brake Technologies Corp. | | | 1,250 | | | 227,213 |
Woodward, Inc. | | | 1,281 | | | 219,704 |
Workday, Inc. - Class A(a) | | | 792 | | | 193,573 |
XPO, Inc.(a) | | | 1,970 | | | 211,795 |
Xylem, Inc./NY | | | 1,602 | | | 216,318 |
ZIM Integrated Shipping Services Ltd. | | | 12,580 | | | 322,803 |
| | | | | | 11,905,373 |
Oil, Gas & Others - 1.1%
| | | | | | |
APA Corp. | | | 3,537 | | | 86,515 |
Baker Hughes Co. | | | 2,630 | | | 95,075 |
Cactus, Inc. - Class A | | | 1,548 | | | 92,369 |
Delek US Holdings, Inc. | | | 4,553 | | | 85,369 |
DT Midstream, Inc. | | | 1,187 | | | 93,369 |
Kinetik Holdings, Inc. | | | 1,935 | | | 87,578 |
New Fortress Energy, Inc. | | | 7,721 | | | 70,184 |
| | | | | | |
| | | | | | |
NextDecade Corp.(a) | | | 19,163 | | | $90,258 |
Noble Corp. PLC | | | 2,522 | | | 91,145 |
Oceaneering International, Inc.(a) | | | 3,618 | | | 89,980 |
Primoris Services Corp. | | | 1,753 | | | 101,814 |
Schlumberger NV | | | 2,196 | | | 92,122 |
Targa Resources Corp. | | | 609 | | | 90,138 |
TechnipFMC PLC | | | 3,555 | | | 93,248 |
Valaris Ltd.(a) | | | 1,543 | | | 86,022 |
Weatherford International PLC | | | 991 | | | 84,156 |
Williams Cos., Inc. | | | 2,015 | | | 91,985 |
World Kinect Corp. | | | 3,231 | | | 99,870 |
| | | | | | 1,621,197 |
Pharma & Healthcare - 7.4%
| | | | | | |
89bio, Inc.(a) | | | 25,145 | | | 186,073 |
AdaptHealth Corp.(a) | | | 19,335 | | | 217,132 |
Akero Therapeutics, Inc.(a) | | | 8,126 | | | 233,135 |
Align Technology, Inc.(a) | | | 931 | | | 236,771 |
Apogee Therapeutics, Inc.(a) | | | 4,361 | | | 256,164 |
Baxter International, Inc. | | | 5,514 | | | 209,367 |
Cardinal Health, Inc. | | | 1,920 | | | 212,198 |
Cassava Sciences, Inc.(a) | | | 7,987 | | | 235,057 |
Cencora, Inc. | | | 921 | | | 207,299 |
Clover Health Investments Corp.(a) | | | 82,101 | | | 231,525 |
Cogent Biosciences, Inc.(a) | | | 19,682 | | | 212,566 |
Cullinan Therapeutics, Inc.(a) | | | 11,461 | | | 191,857 |
DaVita, Inc.(a) | | | 1,434 | | | 235,075 |
Day One Biopharmaceuticals,
Inc.(a) | | | 15,102 | | | 210,371 |
Dyne Therapeutics, Inc.(a) | | | 6,516 | | | 234,055 |
Edgewise Therapeutics, Inc.(a) | | | 11,761 | | | 313,900 |
HealthEquity, Inc.(a) | | | 2,702 | | | 221,159 |
ICON PLC(a) | | | 713 | | | 204,852 |
IDEXX Laboratories, Inc.(a) | | | 436 | | | 220,276 |
Incyte Corp.(a) | | | 3,506 | | | 231,747 |
Insulet Corp.(a) | | | 959 | | | 223,207 |
Intuitive Surgical, Inc.(a) | | | 455 | | | 223,528 |
IQVIA Holdings, Inc.(a) | | | 883 | | | 209,245 |
Jazz Pharmaceuticals PLC(a) | | | 2,005 | | | 223,377 |
Krystal Biotech, Inc.(a) | | | 1,119 | | | 203,692 |
Kura Oncology, Inc.(a) | | | 11,160 | | | 218,066 |
Lantheus Holdings, Inc.(a) | | | 2,118 | | | 232,451 |
LivaNova PLC(a) | | | 4,378 | | | 230,020 |
Longboard Pharmaceuticals, Inc.(a) | | | 5,911 | | | 197,014 |
Molina Healthcare, Inc.(a) | | | 655 | | | 225,687 |
Neurocrine Biosciences, Inc.(a) | | | 1,792 | | | 206,474 |
Organon & Co. | | | 10,057 | | | 192,390 |
Owens & Minor, Inc.(a) | | | 13,722 | | | 215,298 |
Penumbra, Inc.(a) | | | 1,056 | | | 205,191 |
Quest Diagnostics, Inc. | | | 1,406 | | | 218,282 |
Royalty Pharma PLC - Class A | | | 7,526 | | | 212,911 |
Sana Biotechnology, Inc.(a) | | | 41,800 | | | 173,888 |
Sarepta Therapeutics, Inc.(a) | | | 1,677 | | | 209,441 |
Soleno Therapeutics, Inc.(a) | | | 4,245 | | | 214,330 |
Sotera Health Co.(a) | | | 13,168 | | | 219,906 |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
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Optimize Strategy Index ETF
Schedule of Investments
September 30, 2024 (Unaudited)(Continued)
| | | | | | |
COMMON STOCKS - (Continued)
|
Pharma & Healthcare - (Continued)
|
STERIS PLC | | | 895 | | | $217,073 |
Stryker Corp. | | | 597 | | | 215,672 |
Syndax Pharmaceuticals, Inc.(a) | | | 11,222 | | | 216,024 |
Tenet Healthcare Corp.(a) | | | 1,409 | | | 234,176 |
Thermo Fisher Scientific, Inc. | | | 351 | | | 217,118 |
United Therapeutics Corp.(a) | | | 625 | | | 223,969 |
UnitedHealth Group, Inc. | | | 345 | | | 201,715 |
Universal Health Services, Inc. - Class B | | | 899 | | | 205,880 |
Vera Therapeutics, Inc.(a) | | | 5,748 | | | 254,061 |
Vertex Pharmaceuticals, Inc.(a) | | | 460 | | | 213,937 |
West Pharmaceutical Services, Inc. | | | 721 | | | 216,415 |
Zimmer Biomet Holdings, Inc. | | | 1,965 | | | 212,122 |
| | | | | | 11,383,139 |
Real Estate - 2.2%
| | | | | | |
American Tower Corp. | | | 596 | | | 138,606 |
Brookdale Senior Living, Inc.(a) | | | 21,832 | | | 148,239 |
Camden Property Trust | | | 1,153 | | | 142,430 |
CBRE Group, Inc. - Class A(a) | | | 1,290 | | | 160,579 |
Digital Realty Trust, Inc. | | | 984 | | | 159,241 |
EastGroup Properties, Inc. | | | 762 | | | 142,357 |
Equinix, Inc. | | | 177 | | | 157,111 |
Equity LifeStyle Properties, Inc. | | | 1,981 | | | 141,325 |
eXp World Holdings, Inc. | | | 12,547 | | | 176,787 |
Lamar Advertising Co. - Class A | | | 1,149 | | | 153,507 |
Newmark Group, Inc. - Class A | | | 10,042 | | | 155,952 |
Park Hotels & Resorts, Inc. | | | 9,971 | | | 140,591 |
Pebblebrook Hotel Trust | | | 11,353 | | | 150,200 |
Redfin Corp.(a) | | | 15,133 | | | 189,616 |
Rexford Industrial Realty, Inc. | | | 2,951 | | | 148,465 |
Ryman Hospitality Properties, Inc. | | | 1,418 | | | 152,066 |
Sabra Health Care REIT, Inc. | | | 8,167 | | | 151,988 |
SBA Communications Corp. | | | 590 | | | 142,013 |
Simon Property Group, Inc. | | | 890 | | | 150,428 |
Uniti Group, Inc. | | | 27,564 | | | 155,461 |
Vornado Realty Trust | | | 4,382 | | | 172,651 |
Welltower, Inc. | | | 1,176 | | | 150,563 |
Weyerhaeuser Co. | | | 4,785 | | | 162,020 |
| | | | | | 3,542,196 |
Water & Power - 0.7%
| | | | | | |
AES Corp. | | | 4,698 | | | 94,242 |
Atmos Energy Corp. | | | 619 | | | 85,861 |
Brookfield Renewable Corp. - Class A | | | 2,749 | | | 89,782 |
Constellation Energy Corp. | | | 486 | | | 126,369 |
DTE Energy Co. | | | 656 | | | 84,237 |
Duke Energy Corp. | | | 698 | | | 80,479 |
Edison International | | | 877 | | | 76,378 |
Entergy Corp. | | | 624 | | | 82,125 |
Hawaiian Electric Industries,
Inc.(a) | | | 7,004 | | | 67,799 |
| | | | | | |
| | | | | | |
NRG Energy, Inc. | | | 1,100 | | | $100,210 |
Southern Co. | | | 921 | | | 83,056 |
Southwest Gas Holdings, Inc. | | | 1,110 | | | 81,874 |
| | | | | | 1,052,412 |
TOTAL COMMON STOCKS
(Cost $144,811,031) | | | | | | 153,927,825 |
SHORT-TERM INVESTMENTS - 0.4%
| | | |
Money Market Funds - 0.4%
| | | | | | |
First American Government Obligations Fund - Class X,
4.82%(c) | | | 590,171 | | | 590,171 |
TOTAL SHORT-TERM INVESTMENTS
(Cost $590,171) | | | | | | 590,171 |
TOTAL INVESTMENTS - 100.0%
(Cost $145,401,202) | | | | | | 154,517,996 |
Other Assets in Excess of
Liabilities - 0.0%(d) | | | | | | 2,866 |
TOTAL NET ASSETS - 100.0% | | | | | | $154,520,862 |
| | | | | | |
Percentages are stated as a percent of net assets.
NV - Naamloze Vennootschap
PLC - Public Limited Company
SA - Sociedad Anónima
(a)
| Non-income producing security. |
(b)
| To the extent that the Fund invests more heavily in a particular industry or sector of the economy, its performance will be especially sensitive to developments that significantly affect those industries or sectors. |
(c)
| The rate shown represents the 7-day annualized effective yield as of September 30, 2024. |
(d)
| Represents less than 0.05% of net assets. |
The accompanying notes are an integral part of these financial statements.
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Optimize Strategy Index ETF
Statement of Assets and Liabilities
September 30, 2024 (Unaudited)
| | | |
| | | |
ASSETS:
| | | |
Investments, at value | | | $154,517,996 |
Dividends receivable | | | 61,564 |
Interest receivable | | | 2,993 |
Total assets | | | 154,582,553 |
LIABILITIES:
| | | |
Payable to adviser | | | 61,691 |
Total liabilities | | | 61,691 |
NET ASSETS | | | $ 154,520,862 |
Net Assets Consists of:
| | | |
Paid-in capital | | | $141,444,654 |
Total distributable earnings | | | 13,076,208 |
Total net assets | | | $ 154,520,862 |
Net assets | | | $154,520,862 |
Shares issued and outstanding(a) | | | 5,400,000 |
Net asset value per share | | | $28.61 |
COST:
| | | |
Investments, at cost | | | $145,401,202 |
| | | |
(a)
| Unlimited shares authorized without par value.
|
The accompanying notes are an integral part of these financial statements.
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Optimize Strategy Index ETF
Statement of Operations
For the Period Ended September 30, 2024 (Unaudited)
| | | |
| | | |
INVESTMENT INCOME:
| | | |
Dividend income | | | $589,251 |
Less: Dividend withholding taxes | | | (6,530) |
Less: Issuance fees | | | (117) |
Interest income | | | 14,354 |
Total investment income | | | 596,958 |
EXPENSES:
| | | |
Investment advisory fee | | | 267,684 |
Total expenses | | | 267,684 |
NET INVESTMENT INCOME | | | 329,274 |
REALIZED AND UNREALIZED GAIN (LOSS)
| | | |
Net realized gain (loss) from:
| | | |
Investments | | | (3,068,233) |
In-kind redemptions | | | 6,698,373 |
Net realized gain | | | 3,630,140 |
Net change in unrealized appreciation on:
| | | |
Investments | | | 9,116,794 |
Net change in unrealized appreciation | | | 9,116,794 |
Net realized and unrealized gain | | | 12,746,934 |
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ 13,076,208 |
| | | |
The accompanying notes are an integral part of these financial statements.
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Optimize Strategy Index ETF
STATEMENT OF CHANGES IN NET ASSETS
| | | |
OPERATIONS:
| | | |
Net investment income | | | $329,274 |
Net realized gain | | | 3,630,140 |
Net change in unrealized appreciation | | | 9,116,794 |
Net increase in net assets from operations | | | 13,076,208 |
CAPITAL TRANSACTIONS:
| | | |
Subscriptions | | | 180,848,910 |
Redemptions | | | (39,409,080) |
ETF transaction fees (See Note 1) | | | 4,824 |
Net increase in net assets from capital transactions | | | 141,444,654 |
NET INCREASE IN NET ASSETS | | | 154,520,862 |
NET ASSETS:
| | | |
Beginning of the period | | | — |
End of the period | | | $ 154,520,862 |
CAPITAL SHARE TRANSACTIONS
| | | |
Creates | | | 6,800,000 |
Redeems | | | (1,400,000) |
Total increase in shares outstanding | | | 5,400,000 |
| | | |
(a)
| Inception date of the Fund was April 22, 2024. |
The accompanying notes are an integral part of these financial statements.
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Optimize Strategy Index ETF
Financial Highlights
| | | |
PER SHARE DATA:
| | | |
Net asset value, beginning of period | | | $25.00 |
INVESTMENT OPERATIONS:
| | | |
Net investment income(b) | | | 0.20 |
Net realized and unrealized gain on investments(c) | | | 3.41 |
Total from investment operations | | | 3.61 |
LESS DISTRIBUTIONS FROM:
| | | |
Total distributions | | | — |
ETF transaction fees per share | | | 0.00(d) |
Net asset value, end of period | | | $28.61 |
TOTAL RETURN(e) | | | 14.46% |
SUPPLEMENTAL DATA AND RATIOS:
| | | |
Net assets, end of period (in thousands) | | | $154,521 |
Ratio of expenses to average net assets(f) | | | 0.50% |
Ratio of net investment income to average net assets(f) | | | 0.62% |
Portfolio turnover rate(e)(g) | | | 39% |
| | | |
(a)
| Inception date of the Fund was April 22, 2024.
|
(b)
| Net investment income per share has been calculated based on average shares outstanding during the period.
|
(c)
| Realized and unrealized gains and losses per share are balancing amounts necessary to reconcile the change in net asset value per share for the years, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the year.
|
(d)
| Amount represents less than $0.005 per share.
|
(e)
| Not annualized for periods less than one year.
|
(f)
| Annualized for periods less than one year.
|
(g)
| Portfolio turnover rate excludes in-kind transactions. |
The accompanying notes are an integral part of these financial statements.
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Optimize Strategy Index ETF
Notes to Financial Statements
September 30, 2024 (Unaudited)
Note 1 – Organization
Optimize Strategy Index ETF (the “Fund”) is a diversified series of Advisor Managed Portfolios (the “Trust”). The Trust was organized on February 16, 2023, as a Delaware Statutory Trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end investment management company. Sound Capital Solutions LLC (the “Advisor”) serves as the investment manager to the Fund and Optimize Financial Inc. (the “Sub-Advisor”) serves as sub-advisor. The inception date of the Fund was April 22, 2024. The investment objective of the Fund is to track the total return performance, before fees and expenses, of the Optimize Strategy Index.
Shares of the Fund are listed and traded on the NASDAQ Stock Market (“NASDAQ” 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 20,000 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 the Fund may only be purchased directly from or redeemed directly to the 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.
A standard transaction fee of $300 will be charged by the Fund’s custodian in connection with the issuance or redemption of Creation Units. The standard fee will be the same regardless of the number of Creation Units issued or redeemed. In addition, a variable fee of up to 2% of the value of a Creation Unit may be charged by the Fund for cash purchases, non-standard orders, or partial cash purchases, and is designed to cover broker commissions and other transaction costs. Any variable fees received by the Fund are included in the Capital Transactions on the Statements of Changes in Net Assets.
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. 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. |
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Optimize Strategy Index ETF
Notes to Financial Statements
September 30, 2024 (Unaudited)(Continued)
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. |
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.
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, 2024:
| | | | | | | | | | | | |
Investments*
| | | | | | | | | | | | |
Common Stocks | | | $153,927,825 | | | $ — | | | $ — | | | $153,927,825 |
Short-Term Investments | | | 590,171 | | | — | | | — | | | 590,171 |
Total Investments | | | $154,517,996 | | | $— | | | $— | | | $154,517,996 |
| | | | | | | | | | | | |
*
| 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. |
(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. |
Management of the Fund is required to analyze all open tax years, as defined by IRS statute of limitations for all major jurisdictions, including federal tax authorities and certain state authorities. As of and during the period ended September 30, 2024, the Fund did not have a liability for any unrecognized tax benefits. Generally, tax authorities can examine tax returns filed for the preceding three years. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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Optimize Strategy Index ETF
Notes to Financial Statements
September 30, 2024 (Unaudited)(Continued)
Note 3 – Investment Management Agreement and Other Related Party Transactions
The Trust has an agreement with the Advisor to furnish investment advisory services to the Fund. Under the terms of this agreement, the Fund will pay the Advisor a monthly fee based on the Fund’s average daily net assets at annual rate of 0.50%. Additionally, the Advisor is responsible for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services. The Advisor is not responsible for interest charges on any borrowings, dividends, and other expenses on securities sold short, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, expenses associated with the purchase, sale, or ownership of securities, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, securities lending fees and expenses, and distribution (12b-1) fees and expenses. The Advisor pays any Trust-level expenses allocated to the Fund. Expenses of the Trust are allocated among the funds in the Trust equally or by other equitable means.
Pursuant to a Sub-Advisory Agreement between the Advisor and the Sub-Advisor (the “Sub-Advisory Agreement”), the Sub-Advisor is responsible for implementing the investment strategy of the Fund subject to the instruction and oversight of the Advisor. The Sub-Advisor is also responsible for trading portfolio securities for the Fund, including selecting broker-dealers to execute purchase and sale transactions. For its services, the Sub-Advisor is paid a fee by the Advisor, which is calculated daily and paid monthly, based on the Fund’s average daily net assets.
U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”), serves as the Fund’s administrator, fund accountant, and transfer agent and provides compliance services to the Fund. The officers of the Trust are employees of Fund Services. U.S. Bank serves as the Fund’s custodian. 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, 2024, were as follows:
| | | |
Purchases | | | $ 69,625,868 |
Sales | | | $ 46,607,840 |
Purchases and sales of in-kind transactions associated with creations and redemptions during the period ended September 30, 2024, were as follows:
| | | |
Purchases In-Kind | | | $157,756,616 |
Sales In-Kind | | | $39,593,249 |
| | | |
Note 5 – Indemnifications
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, 2024, 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.
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Optimize Strategy Index ETF
Additional Information
September 30, 2024 (Unaudited)
Quarterly Portfolio Schedule
The Fund files its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the 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 (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 www.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.
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Investment Advisor
Sound Capital Solutions LLC
175 W Jackson Blvd., Suite 240
Chicago, IL 60604
Investment Sub-Advisor
Optimize Financial Inc.
23212 Mill Creek Drive
Laguna Hills, CA 92653
Distributor
Quasar Distributors, LLC
3 Canal Plaza, Suite 100
Portland, Maine 04101
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
Cohen & Company, Ltd.
1835 Market Street, Suite 310
Philadelphia, Pennsylvania 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.
| (b) | Financial Highlights are included within the financial statements filed under Item 7 of this Form. |
Item 8. Changes in and Disagreements with Accountants for Open-End Investment Companies.
There were no changes in or disagreements with accountants during the period covered by this report.
Item 9. Proxy Disclosure for Open-End Investment Companies.
There were no matters submitted to a vote of shareholders during the period covered by this report.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Investment Companies.
Pursuant to the Advisory Agreement, the Advisor has agreed to pay all expenses of the Fund, except those specified in the Fund’s Prospectus. As a result, the Advisor is responsible for compensating the Independent Trustees. Further information related to Trustee and Officer compensation for the Trust can be obtained from the Fund’s most recent Statement of Additional Information.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Optimize Strategy Index ETF
Approval of Investment Advisory Agreement and Investment Sub-Advisory Agreement
At a meeting held on November 29-30, 2023, the Board of Trustees (the “Board”) of Advisor Managed Portfolios (the “Trust”) considered the approval of the following agreements (collectively, the “Agreements”):
| • | the Advisory Agreement between Sound Capital Solutions LLC (the “Advisor”) and the Trust, on behalf of Optimize Strategy Index ETF (the “Fund”); and |
| | |
| • | the Sub-Advisory Agreement between the Advisor and Optimize Financial Inc. (the “Sub-Advisor”) with respect to the Fund. |
The Board, including all Trustees who are not “interested persons” of the Trust (the “Independent Trustees”), as that term is defined in the Investment Company Act of 1940, approved the Agreements on behalf of the Fund for an initial two-year term to begin upon the commencement of operations of the Fund.
Ahead of the meeting, the Board received and reviewed substantial information (including information obtained during a previous in person meeting with the Advisor and the Sub-Advisor) regarding the Fund, the Advisor and Sub-Advisor, and the services to be provided by the Advisor and Sub-Advisor to the Fund under the Agreements. This information formed the primary (but not exclusive) basis for the Board’s determinations. The Board received and reviewed extensive information from the Advisor and Sub-Advisor relating to the Fund including information regarding portfolio managers and the resources of the Advisor and Sub-Advisor. The Independent Trustees were advised by independent legal counsel during the review process and met in executive session with counsel without representatives from the Advisor or Sub-Advisor present. In connection with their review, the Independent Trustees also received memoranda from independent legal counsel outlining their fiduciary duties and the legal standards applicable to the review of the Agreements.
In considering the Agreements, 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 to be provided by each of the Advisor and Sub-Advisor, the Trustees considered the Advisor’s and Sub-Advisor’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 would be involved in the day-to-day activities of the Fund. As part of these considerations the Board noted the passive strategy of the Fund. The Board considered the Advisor’s oversight responsibilities as they relate to the Sub-Advisor, both in terms of investment and compliance monitoring, and the other services to be provided to the Fund by the Advisor. The Board also considered the Advisor’s and Sub-Advisor’s resources and compliance structure, including information regarding their respective compliance program, chief compliance officer, compliance record, and disaster recovery/business continuity plan, as well as each one’s experience providing similar services to other clients. The Board concluded that the Advisor and Sub-Advisor each 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 Sub-Advisory Agreement, respectively, and that, in the Board’s view, the nature, overall quality, and extent of the management services to be provided were satisfactory and reliable. |
| • | The Board noted that the Fund had not yet commenced operations and concluded that past performance, therefore, was not a relevant factor in its deliberations. |
| • | The Trustees reviewed the anticipated cost of the Advisor’s and Sub-Advisor’s services, and the proposed structure and level of the Fund’s advisory fee as a unitary fee, including a comparison to fees charged by a peer group of funds. The Trustees noted that the Fund’s unitary fee was below the peer group advisory fee median and average. The Board considered that the Advisor would be responsible for paying the Sub-Advisor out of the unitary fee and that the sub-advisory fee reflected an arm’s-length negotiation between the Advisor and Sub-Advisor based on the nature of services to be provided. After reviewing the materials that were provided, the Trustees concluded that the fee to be charged to the Fund was fair and reasonable. |
| • | The Trustees considered the Advisor’s assertion that, through the Advisor’s commitment to use a unitary fee structure, economies of scale, if and when achieved, will be shared with the Fund. The Board noted that the unitary fee arrangement between the Advisor and the Trust with respect to the Fund would limit the fees paid by shareholders. The Trustees considered the possible growth in asset levels of the Fund and concluded that they will have the opportunity to periodically reexamine whether economies of scale have been achieved by the Fund. |
| • | The Trustees considered the expected profitability of the Advisor and Sub-Advisor from managing the Fund. In assessing the Advisor’s and Sub-Advisor’s expected profitability, the Trustees reviewed the Advisor’s and Sub-Advisor’s financial information that was provided in the materials and took into account both the direct and indirect benefits to the Advisor and Sub-Advisor from managing the Fund. The Trustees concluded that the Advisor’s and Sub-Advisor’s expected profits from managing the Fund did not appear excessive and, after a review of the relevant financial information, the Advisor and Sub-Advisor appeared to have adequate capitalization and/or would maintain adequate profit levels to support the Fund. |
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures 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 reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are 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 to open-end investment companies.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. Exhibits.
| (a) | (1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not Applicable. |
(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant’s securities are listed. Not Applicable.
(3) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)). Filed herewith.
(4) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
| (5) Change in the registrant’s independent public accountant. Provide the information called for by Item 4 of Form 8-K under the Exchange Act (17 CFR 249.308). Unless otherwise specified by Item 4, or related to and necessary for a complete understanding of information not previously disclosed, the information should relate to events occurring during the reporting period. Not applicable to open-end investment companies and ETFs. |
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.
| Advisor Managed Portfolios | |
| | | |
| By | /s/ Russell B. Simon | |
| | Russell B. Simon, President/Principal Executive Officer | |
| | | |
| Date | 12/06/2024 | |
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/ Russell B. Simon | |
| | Russell B. Simon, President/Principal Executive Officer | |
| | | |
| Date | 12/06/2024 | |
| | | |
| By | /s/ Eric T. McCormick | |
| | Eric T. McCormick, Treasurer/Principal Financial Officer | |
| | | |
| Date | 12/06/2024 | |