Thompson LargeCap Fund (THPGX) N-CSRCertified annual shareholder report (management investment company)

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 811-4946

THOMPSON IM FUNDS, INC.
(Exact name of registrant as specified in charter)

1255 Fourier Drive, Suite 200

Madison, Wisconsin 53717
(Address of principal executive offices)--(Zip code)

Jason L. Stephens

Chief Executive Officer
Thompson IM Funds, Inc.
1255 Fourier Drive, Suite 200

Madison, Wisconsin 53717
(Name and address of agent for service)

With a copy to:

Matthew C. Vogel, Esq.
Quarles & Brady LLP
411 East Wisconsin Avenue
Milwaukee, Wisconsin 53202

Registrant's telephone number, including area code: (608) 827-5700

Date of fiscal year end: November 30, 2023

Date of reporting period: November 30, 2023

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

Item 1(a):

THOMPSON IM FUNDS, INC.

ANNUAL REPORT TO SHAREHOLDERS

NOTE ON FORWARD-LOOKING STATEMENTS

The matters discussed in this report may constitute forward-looking statements. These include any Advisor or portfolio manager predictions, assessments, analyses or outlooks for individual securities, industries, investment styles, market sectors, interest rates, economic trends and/or markets. These statements involve risks and uncertainties. In addition to the general risks described for each Fund in its current Prospectus, other factors bearing on these reports include the accuracy of the Advisor’s or portfolio manager’s forecasts and predictions, the appropriateness of the investment strategies designed by the Advisor or portfolio manager and the ability of the Advisor or portfolio manager to implement its strategies efficiently and successfully. Any one or more of these factors, as well as other risks affecting the securities markets generally, could cause the actual results of any Fund to differ materially as compared to its benchmarks.

THOMPSON IM FUNDS, INC.
ANNUAL REPORT TO SHAREHOLDERS

November 30, 2023

CONTENTS

This report contains information for existing shareholders of Thompson IM Funds, Inc.

It does not constitute an offer to sell. This Annual Report is authorized for distribution to prospective investors
only when preceded or accompanied by a Fund Prospectus, which contains information about
the Funds’ objectives and policies, risks, management, expenses and other information.

A Prospectus can be obtained by calling 1-800-999-0887.

Please read your Prospectus carefully.

LARGECAP FUND INVESTMENT REVIEW (Unaudited)

Portfolio Managers

James T. Evans, CFA

Jason L. Stephens, CFA

Performance

The LargeCap Fund produced a total return of 7.38% for the fiscal year ended November 30, 2023, as compared to its benchmark, the S&P 500 Index, which returned 13.84%.

Comparison of Change in Value of a Hypothetical $10,000 Investment

Gross Expense Ratio as of 03/31/23 was 1.16%.

Net Expense Ratio after reimbursement as of 03/31/23 was 0.99%*

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling 1-800-999-0887 or visiting www.thompsonim.com.

Results include the reinvestment of all dividends and capital gains distributions. Investment performance reflects all fee waivers that may be in effect. In the absence of such waivers, total return would be reduced. The performance information reflected in the graph and the table above does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares, nor does it imply future performance. The S&P 500 Index is an unmanaged index commonly used to measure the performance of U.S. stocks. You cannot directly invest in an index.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC and has been licensed for use by Thompson Investment Management, Inc. S&P^® and S&P 500^® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”). The Thompson IM Funds are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates, and none of S&P Dow Jones Indices LLC, Dow Jones, S&P nor their respective affiliates make any representation regarding the advisability of investing in such products.

See Notes to Financial Statements.

LARGECAP FUND INVESTMENT REVIEW (Unaudited) (Continued)

Management Commentary

Coming into the fiscal year, we expected investors to be focused on the trajectory of interest rates and whether tightening monetary conditions would tip the U.S. economy into a recession. Fears that the Federal Reserve may have raised rates too fast were exacerbated after a handful of banks experienced a run on their deposits. The worst effects so far appear to have been limited to banks that severely mismanaged their exposure to interest-rate risk. Here the FDIC was compelled to intervene before selling either the bank or its assets off to healthier banks.

We believe these events pushed investors into stocks that performed well during the last recession and had the perception of “safety”, namely mega-cap growth and technology companies. This created a narrowing market where a smaller and smaller number of companies generated a growing percentage of index returns and market capitalization. Five S&P 500 sectors actually produced negative investment returns during the fiscal year, while the Information Technology sector alone was up over 41%. This concentrated performance (we are choosing not to chase technology stocks with what we believe are already-high valuations), along with the Fund’s selection of stocks in the Financials sector, accounted for the Fund’s lag during the period.

Despite the negative impact our sector positioning had on the Fund during the fiscal year, we believe it should position shareholders for better relative returns over a longer time horizon. The Fund was able to take advantage of investors indiscriminately selling bank stocks, which allowed us to buy more shares in what we view as quality banks trading at a deep discount. Consistent with our Growth at a Reasonable Price (GARP) strategy, we will continue to generally avoid certain mega-cap growth stocks trading at what we consider premium valuations. Even if these companies post strong growth going forward, we think that growth is likely already priced into their current stock price. If they don’t grow at the rate investors expect, the downside risk is potentially enormous. If we can succeed in avoiding investments with this return distribution, it should be accretive to performance over the long term.

Even though the U.S. economy appears to have avoided a recession thus far, there is still a fair amount of uncertainty as to whether or not one will begin in 2024. While we expect the potential of a recession to be an overhang on the market in the near term, we believe our portfolio has the potential to provide competitive returns on a relative basis due to its lower relative valuation and earnings-growth potential.

Opinions expressed are subject to change, are not guaranteed and should not be considered investment advice.

Mutual fund investing involves risk. Principal loss is possible. Investments in smaller companies involve additional risks such as limited liquidity and greater volatility. Investments in American Depositary Receipts (“ADRs”) are subject to some extent to the risks associated with directly investing in securities of foreign issuers, including the risk of changes in currency exchange rates, expropriation or nationalization of assets, and the impact of political, diplomatic, or social events. Investments in real estate securities may involve greater risk and volatility including greater exposure to economic downturns and changes in real estate values, rents, property taxes, and tax and other laws. A real estate investment trust’s (REIT’s) share price may decline because of adverse developments affecting the real estate industry.

Please refer to the Schedule of Investments on page 5 of this report for holdings information. The management commentary above as well as Fund holdings and asset/sector allocations should not be considered a recommendation to buy or sell any security. In addition, please note that Fund holdings and asset/sector allocations are subject to change.

Earnings Growth is a measure of growth in a company’s net income over a specific period, often one year. It is not a prediction of the Fund’s future returns.

See Notes to Financial Statements.

LARGECAP FUND INVESTMENT REVIEW (Unaudited) (Continued)

As of November 30, 2023, 99.9% of the Fund’s net assets were in equity and short-term investments.

See Notes to Financial Statements.

LARGECAP FUND SCHEDULE OF INVESTMENTS

See Notes to Financial Statements.

LARGECAP FUND SCHEDULE OF INVESTMENTS (Continued)

See Notes to Financial Statements.

LARGECAP FUND SCHEDULE OF INVESTMENTS (Continued)

Abbreviations:

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”) and is licensed for use by Thompson Investment Management, Inc. Neither MSCI, S&P, nor any other party involved in making or compiling the GICS or any GICS classifications makes any warranties with respect there to or the results to be obtained by the use thereof, and no such party shall have any liability whatsoever with respect thereto.

See Notes to Financial Statements.

LARGECAP FUND SCHEDULE OF INVESTMENTS (Continued)

The following is a summary of the inputs used to value the Fund’s investments as of November 30, 2023:

The Fund did not invest in any level-3 investments as of and during the fiscal year ended November 30, 2023.

For more information on valuation inputs, see financial statement Note 2 - Significant Accounting Policies.

See Notes to Financial Statements.

MIDCAP FUND INVESTMENT REVIEW (Unaudited)

Portfolio Managers

James T. Evans, CFA

Jason L. Stephens, CFA

Performance

The MidCap Fund produced a total return of -0.47% for the fiscal year ended November 30, 2023, as compared to its benchmark, the Russell Midcap Index, which returned 2.94%.

Comparison of Change in Value of a Hypothetical $10,000 Investment

Gross Expense Ratio as of 03/31/23 was 1.38%.

Net Expense Ratio after reimbursement as of 03/31/23 was 1.15%.*

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling 1-800-999-0887 or visiting www.thompsonim.com.

Results include the reinvestment of all dividends and capital gains distributions. Investment performance reflects all fee waivers that may be in effect. In the absence of such waivers, total return would be reduced. The performance information reflected in the graph and the table above does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares, nor does it imply future performance. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index based on total market capitalization. You cannot directly invest in an index.

FTSE Russell is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. “FTSE^®” and “Russell^®” are trademarks of the London Stock Exchange Group.

See Notes to Financial Statements.

MIDCAP FUND INVESTMENT REVIEW (Unaudited) (Continued)

Management Commentary

Performance of the Fund relative to its Russell Midcap Index benchmark fluctuated throughout the fiscal year. Ultimately, most of the lag occurred in the final three months of that period. The primary culprit was poor performance from stocks held by the portfolio in the Consumer Discretionary and Financials sectors. Still, the Fund has outperformed its benchmark by 6.30% on a cumulative basis for the last 3 years ended November 30, 2023. While we feel that near-term performance is likely to be choppy in the face of a possible recession in 2024, we believe the Fund has the potential to remain competitive over the next 3 years.

Investors seem to be acutely focused on the risk and timing of a potential recession—to an excessive degree, in our view. While we of course acknowledge that these events can dramatically influence stock trajectories in the short-term, we also believe that over-preparing can be counterproductive, especially if the economy manages to avoid a significant dip. Instead, given our longer-term perspective we think it’s more important to look to fundamentals when we consider what stocks might do over the next 2-5 years as we move further into the next economic cycle. We seek to position the Fund accordingly.

When we apply that framework, we can’t help but think that there are areas of the market that are attractively priced right now. Many bank stocks, for example, were driven down to levels during March that made them interesting to us, and still haven’t fully recovered. To be sure, some banks did not appropriately manage the duration of their portfolios. However, many did, and industry capital ratios appear to be robust. We don’t know what these stocks will do in the near-term, but this may turn out to have been a buying opportunity when we look back a few years from now.

We believe this kind of perspective is important in this uncertain environment and ultimately serves the Fund better than trying to time quarter-to-quarter wiggles or predict Federal Reserve interest rate policy changes. Our investing time horizon is 2-5 years, and we think there are potentially interesting opportunities right now. Should a recession emerge and present even more opportunities, we’ll look to take advantage, much as we did 3 years ago.

Opinions expressed are subject to change, are not guaranteed and should not be considered investment advice.

Mutual fund investing involves risk. Principal loss is possible. Midcap companies tend to have more limited liquidity and greater volatility than large-capitalization companies. Investments in American Depositary Receipts (“ADRs”) are subject to some extent to the risks associated with directly investing in securities of foreign issuers, including the risk of changes in currency exchange rates, expropriation or nationalization of assets, and the impact of political, diplomatic, or social events. Investments in real estate securities may involve greater risk and volatility including greater exposure to economic downturns and changes in real estate values, rents, property taxes, and tax and other laws. A real estate investment trust’s (REIT’s) share price may decline because of adverse developments affecting the real estate industry.

Please refer to the Schedule of Investments on page 12 of this report for holdings information. The management commentary above as well as Fund holdings and asset/sector allocations should not be considered a recommendation to buy or sell any security. In addition, please note that Fund holdings and asset/sector allocations are subject to change.

See Notes to Financial Statements.

MIDCAP FUND INVESTMENT REVIEW (Unaudited) (Continued)

As of November 30, 2023, 99.9% of the Fund’s net assets were in equity and short-term investments.

See Notes to Financial Statements.

Midcap Fund Schedule of Investments

See Notes to Financial Statements.

Midcap Fund Schedule of Investments (Continued)

See Notes to Financial Statements.

Midcap Fund Schedule of Investments (Continued)

See Notes to Financial Statements.

Midcap Fund Schedule of Investments (Continued)

Abbreviations:

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”) and is licensed for use by Thompson Investment Management, Inc. Neither MSCI, S&P, nor any other party involved in making or compiling the GICS or any GICS classifications makes any warranties with respect there to or the results to be obtained by the use thereof, and no such party shall have any liability whatsoever with respect thereto.

See Notes to Financial Statements.

MIDCAP FUND SCHEDULE OF INVESTMENTS (Continued)

The following is a summary of the inputs used to value the Funds’ investments as of November 30, 2023:

The Fund did not invest in any level-3 investments as of and during the fiscal year ended November 30, 2023.

For more information on valuation inputs, see financial statement Note 2 - Significant Accounting Policies.

See Notes to Financial Statements.

BOND FUND INVESTMENT REVIEW (Unaudited)

Portfolio Managers

James T. Evans, CFA

Jason L. Stephens, CFA

Performance

The Bond Fund produced a total return of 4.02% for the fiscal year ended November 30, 2023, as compared to its benchmark, the Bloomberg U.S. Government/Credit 1-5 Year Index, which returned 3.26%, and as compared to the Bloomberg U.S. Credit 1-5 Year Index, which returned 4.17%.

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling 1-800-999-0887 or visiting www.thompsonim.com.

Results include the reinvestment of all dividends and capital gains distributions. Investment performance reflects all fee waivers that may have been in effect. In the absence of such waivers, total return would have been reduced. The performance information reflected in the graph and the table above does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares, nor does it imply future performance. The Bloomberg U.S. Government/Credit 1-5 Year Index is a market-value-weighted index of all investment-grade bonds with maturities of more than one year and less than 5 years. The Bloomberg U.S. Credit 1-5 Year Index is a market-value-weighted index which includes virtually every major investment-grade rated corporate bond with 1-5 years remaining until maturity that serves as a supplementary benchmark. You cannot directly invest in an index.

Bloomberg^® is a trademark and service mark of Bloomberg Finance L.P.

See Notes to Financial Statements.

BOND FUND INVESTMENT REVIEW (Unaudited) (Continued)

Management Commentary

With the Federal Reserve appearing to be finishing up the current interest rate hiking cycle, we believe the Fund is well positioned to benefit on both an absolute and relative basis. The Fund had a 6.82% 30-day SEC yield at fiscal year-end, along with an even higher Yield-to-Worst. Absent changes in the yield curve or spreads, this is the pace at which the Fund generates income. If our view of the future is right, we believe the Fund could generate competitive returns in 2024 and beyond against both money market alternatives as well as longer-maturity fixed-income categories.

Going forward, we believe a key puzzle for investors to figure out is how the current inversion of the yield curve will resolve itself, especially between the 2- and 10-year maturities. For a while, investors seemed to assume that a Fed-induced recession would result in a rate-cutting cycle. While initially expected in the fall of 2023, the forward curve now implies that a cutting cycle would begin by May 2024. With enough cuts the 2-year yield would drop below the 10-year, although the absolute level of both rates would likely head lower. Money market funds would see the biggest decline in yields, rendering them far less attractive from a yield perspective than they currently are. Aggressive investors may try to time such cuts by extending the duration of their holdings in advance of rate cuts, essentially taking on more interest rate risk in search of greater returns.

The September and October timeframe in 2023 provided a glimpse of an alternative resolution of the curve’s inversion. Based on declining inflation numbers coupled with strong economic data, investors for a while seemed to conclude that the Fed would maintain interest rates “higher for longer” without a recession forcing the Fed to begin cutting. Thus, the inversion partially closed not because yields on the 2 year declined, but rather because yields on the 5-10 year portion of the curve rose. Under such a scenario money market funds would maintain their current generous yield, while investors of longer maturity bonds would likely lose money based on the duration of their holdings mixing negatively with higher rates. Perhaps if and when inflation demonstrated a steady state of 2% or less the Fed would be inclined to cut rates a few times to ensure monetary policy returned to a neutral status, but the overall effect would be expected to be small.

Accurately predicting which scenario unfolds can be lucrative for those who succeed, but we think most investors are better off hedging their bets with something in between either a money market fund or long duration bonds. In general, timing the exact wiggles of the yield curve is difficult enough without the added complications of this cycle with the impact of the pandemic and the unprecedented levels of stimulus. Some economists have theorized that the yield at which Fed policy should be considered “neutral” has fundamentally shifted higher based on the gradual decoupling of China/US trade, higher inflation and total indebtedness. These factors suggest that timing the normalization of the curve may depend more on luck than anything else.

Fortunately, the Bond Fund offers what we believe is a compelling alternative. The 6.82% 30-day SEC yield of the fund is well above the SEC yields of most, if not all, money market funds. And with the Fed likely finished raising rates, the modest interest rate risk being assumed with the Fund’s 1.64 duration is less likely to interfere with earning that yield. This suggests we are well positioned if the Fed keeps interest rates “higher for longer”.

Conversely, if the economy weakens and the Federal Reserve decides to cut rates, we believe the Fund has ample cushion among spreads to aid with returns. As of the fiscal year end, corporate bonds represented 57.89% of the Fund. They had an average option-adjusted spread of 446 basis points despite all but a handful of them being rated investment grade by one or more bond rating agencies. The option-adjusted spreads on the portfolio’s Asset-Backed Securities (ABS) and Commercial Mortgage-Backed Securities (CMBS) bonds are more difficult to quantify given the inherent assumptions needed for payment speeds, but we believe they are clearly higher than those of the corporate bonds. All together these categories represent 95.02% of Fund assets as of the end of the fiscal year, suggesting the portfolio likely has plenty of spread attached to its holdings. The income associated with extra spread would be expected to help cover a portion of any relative performance gaps created by declining Treasury yields, as well as aiding in absolute returns.

Looking forward, we feel shareholders are positioned to enjoy competitive returns under most reasonable scenarios. Given the uncertainty in economic and interest rate outcomes, we feel this provides a compelling investment argument for the Fund. We look forward to enjoying those returns in 2024 and beyond alongside our fellow shareholders.

Opinions expressed are subject to change, are not guaranteed and should not be considered investment advice.

Mutual fund investing involves risk. Principal loss is possible. Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. Investments in bonds of foreign issuers involve greater volatility, political and economic risks, and differences in accounting methods. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities.

See Notes to Financial Statements.

BOND FUND INVESTMENT REVIEW (Unaudited) (Continued)

Please refer to the Schedule of Investments on page 21 of this report for holdings information. The management commentary above as well as Fund holdings should not be considered a recommendation to buy or sell any security. In addition, please note that Fund holdings are subject to change.

The federal government guarantees interest payments from government securities while dividend payments carry no such guarantee. Government securities, if held to maturity, guarantee the timely payment of principal and interest.

Basis Point is a unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security.

Duration is a commonly used measure of the potential volatility of the price of a debt security, or the aggregate market value of a portfolio of debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration.

Option-Adjusted Spread (OAS) is the measurement of the spread of a fixed-income security rate and the risk-free rate of return (e.g., a corporate U.S. Treasury security), which is then adjusted to take into account an embedded option.

SEC Yield is a standardized yield computed by dividing the net investment income per share earned during the 30-day period prior to quarter-end and was created to allow for fairer comparisons among bond funds.

Yield Curve: A line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.

See Notes to Financial Statements.

BOND FUND INVESTMENT REVIEW (Unaudited) (Continued)

Although the makeup of the Bond Fund’s portfolio is constantly changing, as of November 30, 2023, 57.89% of the Fund’s portfolio was invested in corporate bonds. Due to prevailing market conditions, the percentage of corporate bonds held in the Fund’s portfolio over the past 5 years has generally equaled or exceeded the percentage of corporate bonds held in the Fund’s portfolio as of that date. In addition, as of that date 19.17% of the Fund’s portfolio was invested in securities rated BBB by Standard & Poor’s, while an additional 7.66% of the Fund’s portfolio was rated below investment-grade and 63.71% of the Fund’s portfolio was not rated by Standard & Poor’s. Additional information regarding the ratings of securities held in the Fund’s portfolio, including information pertaining to securities that have not been rated by Standard & Poor’s but have been rated by another Nationally Recognized Statistical Credit Rating Organization, is reflected in the quality composition table below. For portfolio information current as of the most recent quarter-end, please call 1-800-999-0887 or visit our website at www.thompsonim.com. Compared to a portfolio that is more evenly allocated between government and corporate bonds, a portfolio that is heavily allocated to corporate bonds may provide higher returns but is also subject to greater levels of credit and liquidity risk and to greater price fluctuations. A portfolio that is significantly allocated to bonds having lower and below-investment-grade ratings may also be subject to greater levels of credit and liquidity risk and experience greater price fluctuations than a portfolio comprised of higher-rated investment-grade bonds.

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS (Continued)

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS (Continued)

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS (Continued)

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS (Continued)

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS (Continued)

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS (Continued)

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS (Continued)

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS (Continued)

See Notes to Financial Statements.

BOND FUND SCHEDULE OF INVESTMENTS (Continued)

The following is a summary of the inputs used to value the Funds’ investments as of November 30, 2023:

For more information on valuation inputs, see financial statement Note 2 - Significant Accounting Policies.

The following is a reconciliation of investments with unobservable inputs (level 3) that were used in determining fair value. These securities were fair valued as of November 30, 2023 using unadjusted broker quotes from brokers.

The total change in unrealized appreciation (depreciation) included in the Statement of Operations attributable to Level 3 investments still held as of November 30, 2023 is ($8,333,178).

See Notes to Financial Statements.

FUND EXPENSE EXAMPLES (Unaudited)

Example

A Fund shareholder may incur two types of costs: (1) transaction costs such as redemption fees; and (2) ongoing costs, including management 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 June 1, 2023 to November 30, 2023.

Actual Expenses

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

For more information, please refer to the Funds’ Prospectus.

See Notes to Financial Statements.

STATEMENTS OF ASSETS AND LIABILITIES

See Notes to Financial Statements.

STATEMENTS OF OPERATIONS