WILMINGTON TRUST COLLECTIVE INVESTMENT TRUST FUNDS SUB-ADVISED BY ENVESTNET RETIREMENT SOLUTIONS, LLC FINANCIAL STATEMENTS DECEMBER 31, 2017

Transcription

1 WILMINGTON TRUST COLLECTIVE INVESTMENT TRUST FUNDS SUB-ADVISED BY ENVESTNET RETIREMENT SOLUTIONS, LLC FINANCIAL STATEMENTS DECEMBER 31, 2017 WITH INDEPENDENT AUDITOR'S REPORT

2 CONTENTS Independent Auditor's Report... 1 Fund Index... 3 Envestnet Future Advantage US Equity Fund... 4 Envestnet Future Advantage International Equity Fund... 9 Envestnet Future Advantage Real Asset Fund Envestnet Future Advantage Income Fund Envestnet Future Advantage Core Fixed Income Fund Notes to the Financial Statements... 25

3 INDEPENDENT AUDITOR'S REPORT Wilmington Trust, N.A., Trustee for Wilmington Trust Collective Investment Trust Report on the Financial Statements We have audited the accompanying financial statements of funds sub-advised by Envestnet Retirement Solutions, LLC of Wilmington Trust Collective Investment Trust (the "Trust"), comprising the Funds (the "Funds") included on the Fund Index on page 3, which comprise the Statements of Assets and Liabilities, including the Schedules of Investments, as of, and the related Statements of Operations and Changes in Net Assets, and the Financial Highlights for the period from October 24, 2017 (date of inception) to, and the related Notes to the Financial Statements. These financial statements and Financial Highlights are hereinafter collectively referred to as financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the Funds as of, and the results of its operations, and changes in its net assets and its financial highlights for the period from October 24, 2017 (date of inception) to, in accordance with accounting principles generally accepted in the United States of America. 1

4 Other Matter Our audits were conducted for the purpose of forming an opinion on the financial statements of each Fund as a whole. The supplementary information on investments purchased and sold for the period from October 24, 2017 (date of inception) to, following the Schedule of Investments, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Tulsa, Oklahoma April 30,

5

6 FUND INDEX FUND NAME Envestnet Future Advantage US Equity Fund Envestnet Future Advantage International Equity Fund Envestnet Future Advantage Real Asset Fund Envestnet Future Advantage Income Fund Envestnet Future Advantage Core Fixed Income Fund FUND OBJECTIVE The Fund seeks to provide long-term capital appreciation by investing primarily in a portfolio of strategies comprised primarily of U.S. companies across all market capitalizations. The Fund seeks to provide long-term capital appreciation by investing primarily in a portfolio of strategies comprised primarily of international companies across all market capitalizations in developed and emerging market economies. The Fund seeks to control exposure to inflation by investing primarily in portfolios that invest in or produce goods and services sensitive to inflation. The Fund seeks to provide high current income by investing primarily in portfolios that invest in higher yielding U.S. dollar-denominated bonds that are rated either investment grade or high yield. The Fund seeks to maximize total return by investing primarily in portfolios that invest in high credit quality U.S. government, agency, and corporate obligations. 3

7 Envestnet Future Advantage US Equity Fund Statement of Assets and Liabilities Assets Investments in securities, at fair value (cost $71,968) $ 74,374 Cash and cash equivalents 41 Total assets 74,415 Liabilities and Net Assets Payable for investment securities purchased 34 Accrued expenses 14 Total liabilities 48 Net assets $ 74,367 Statement of Operations For the period from October 24, 2017 (date of inception) to Investment income Dividends $ 315 Expenses Trustee and sub-advisory fees 14 Net investment income 301 Unrealized gain on investments Net change in unrealized appreciation on investments 2,406 Net increase in net assets resulting from operations $ 2,707 See Notes to the Financial Statements. 4

8 Envestnet Future Advantage US Equity Fund Statement of Changes in Net Assets For the period from October 24, 2017 (date of inception) to Increase in net assets resulting from operations Net investment income $ 301 Net change in unrealized appreciation on investments 2,406 Net increase in net assets resulting from operations 2,707 Fund unit transactions Proceeds from units issued - Class R 71,660 Increase in net assets 74,367 Net assets, beginning of period - Net assets, end of period $ 74,367 See Notes to the Financial Statements. 5

9 Per Unit Operating Performance Class R Net asset value, at inception $ Income from investment operations: Net investment income (1) 0.05 Net realized and unrealized gain on investments (1) 0.40 Total income from investment operations 0.45 Net asset value, end of period $ Total Return Envestnet Future Advantage US Equity Fund Financial Highlights For the period from October 24, 2017 (date of inception) to 4.50% ^ Supplemental Data Ratio to average net assets: Expenses 0.11% # Net investment income 2.58% # Fund Unit Activity Units, beginning of period - Issued 7,119 Redeemed - Units, end of period 7,119 (1) Based on average units outstanding. ^Not annualized for periods less than one year. #Annualized. See Notes to the Financial Statements. 6

10 Envestnet Future Advantage US Equity Fund Schedule of Investments Principal Amount or Fair Shares Cost Value Collective Funds % BlackRock Russell 1000 Value Index Fund F 1,100 $ 35,847 $ 37,380 Clearbridge Large Cap Growth CIF 562 7,135 7,520 ishares Russell 2000 Index Fund F 432 7,169 7,348 Loomis Sayles Large Cap Growth Trust 185 3,585 3,739 Multi-Manager Small Cap Value Fund 71 2,151 2,201 Victory Mid Cap Value Collective Fund 141 1,427 1,485 Total Collective Funds 57,314 59,673 Mutual Funds % Invesco Diversified Dividend Fund Class R ,905 10,977 Prudential Jennison Mid-Cap Growth Fund, Inc. Class Q 39 1,594 1,491 T. Rowe Price QM US Small-Cap Growth Equity Fund Institutional Class 64 2,155 2,233 Total Mutual Funds 14,654 14,701 Total Investments % $ 71,968 74,374 Liabilities in Excess of Other Assets - (0.0%) (7) Net Assets - 100% $ 74,367 The following is a summary of the fair value of the investments in the Fund based on the inputs used to value them as of (see Note 3): Fair Value Measurements Level 1 Level 2 Level 3 Total Collective Funds measured at net asset value* $ - $ - $ - $ 59,673 Mutual Funds 14, ,701 Total $ 14,701 $ - $ - $ 74,374 *Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. During the period ended, the Fund did not hold any Level 3 securities. The Fund recognizes transfers between the fair value hierarchy levels as of the beginning of the fiscal year. There were no transfers between any of the fair value hierarchy levels during the period. Concentration of Ownership: As of, the Fund had two unaffiliated plans holding 10% or more of the outstanding units of the Fund, representing 89% and 11% of the total outstanding units. See Notes to the Financial Statements. 7

11 Envestnet Future Advantage US Equity Fund Schedule of Investments (continued) Supplementary Information: Total investment purchases, sales proceeds, and realized gain for the period ended, were: Purchases Sales Realized at Cost Proceeds Gain Investments $ 71,968 $ - $ - See Notes to the Financial Statements. 8

12 Envestnet Future Advantage International Equity Fund Statement of Assets and Liabilities Assets Investments in securities, at fair value (cost $46,455) $ 47,419 Liabilities and Net Assets Accrued expenses 9 Net assets $ 47,410 Statement of Operations For the period from October 24, 2017 (date of inception) to Investment income Dividends $ 675 Expenses Trustee and sub-advisory fees 9 Net investment income 666 Unrealized gain on investments Net change in unrealized appreciation on investments 964 Net increase in net assets resulting from operations $ 1,630 See Notes to the Financial Statements. 9

13 Envestnet Future Advantage International Equity Fund Statement of Changes in Net Assets For the period from October 24, 2017 (date of inception) to Increase in net assets resulting from operations Net investment income $ 666 Net change in unrealized appreciation on investments 964 Net increase in net assets resulting from operations 1,630 Fund unit transactions Proceeds from units issued - Class R 45,780 Increase in net assets 47,410 Net assets, beginning of period - Net assets, end of period $ 47,410 See Notes to the Financial Statements. 10

14 Per Unit Operating Performance Class R Net asset value, at inception $ Income from investment operations: Net investment income (1) 0.16 Net realized and unrealized gain on investments (1) 0.22 Total income from investment operations 0.38 Net asset value, end of period $ Total Return Envestnet Future Advantage International Equity Fund Financial Highlights For the period from October 24, 2017 (date of inception) to 3.80% ^ Supplemental Data Ratio to average net assets: Expenses 0.11% # Net investment income 9.20% # Fund Unit Activity Units, beginning of period - Issued 4,568 Redeemed - Units, end of period 4,568 (1) Based on average units outstanding. ^Not annualized for periods less than one year. #Annualized. See Notes to the Financial Statements. 11

15 Envestnet Future Advantage International Equity Fund Schedule of Investments Principal Amount or Fair Shares Cost Value Collective Funds % BlackRock MSCI ACWI ex-u.s. IMI Index Fund F 1,356 $ 18,312 $ 18,965 International Fundamental Value Fund 110 6,867 7,064 Invesco International Growth Trust Class I 268 3,205 3,284 Total Collective Funds 28,384 29,313 Mutual Funds % DFA Emerging Markets Core Equity Portfolio Institutional Class 144 3,222 3,355 Goldman Sachs International Small Cap Insights Institutional 559 7,371 7,126 Oppenheimer International Growth Fund Class I 86 3,698 3,752 Oppenheimer International Small-Mid Company Fund Institutional Class 79 3,780 3,873 Total Mutual Funds 18,071 18,106 Total Investments % $ 46,455 47,419 Liabilities in Excess of Other Assets - (0.0%) (9) Net Assets - 100% $ 47,410 The following is a summary of the fair value of the investments in the Fund based on the inputs used to value them as of (see Note 3): Fair Value Measurements Level 1 Level 2 Level 3 Total Collective Funds measured at net asset value* $ - $ - $ - $ 29,313 Mutual Funds 18,106 18,106 Total $ 18,106 $ - $ - $ 47,419 *Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. During the period ended, the Fund did not hold any Level 3 securities. The Fund recognizes transfers between the fair value hierarchy levels as of the beginning of the fiscal year. There were no transfers between any of the fair value hierarchy levels during the period. Concentration of Ownership: As of, the Fund had two unaffiliated plans holding 10% or more of the outstanding units of the Fund, representing 88% and 12% of the total outstanding units. Supplementary Information: Total investment purchases, sales proceeds, and realized gain for the period ended, were: Purchases Sales Realized at Cost Proceeds Gain Investments $ 46,455 $ - $ - See Notes to the Financial Statements. 12

16 Envestnet Future Advantage Real Asset Fund Statement of Assets and Liabilities Assets Investments in securities, at fair value (cost $293,194) $ 297,706 Liabilities and Net Assets Accrued expenses 18 Net assets $ 297,688 Statement of Operations For the period from October 24, 2017 (date of inception) to Investment income Dividends $ 654 Expenses Trustee and sub-advisory fees 17 Net investment income 637 Realized and unrealized gain on investments Net realized gain on investments 334 Net change in unrealized appreciation on investments 4,512 Net realized and unrealized gain on investments 4,846 Net increase in net assets resulting from operations $ 5,483 See Notes to the Financial Statements. 13

17 Envestnet Future Advantage Real Asset Fund Statement of Changes in Net Assets For the period from October 24, 2017 (date of inception) to Increase in net assets resulting from operations Net investment income $ 637 Net realized gain on investments 334 Net change in unrealized appreciation on investments 4,512 Net increase in net assets resulting from operations 5,483 Fund unit transactions Proceeds from units issued - Class R 385,155 Value of units redeemed - Class R (92,950) Increase in net assets resulting from fund unit transactions 292,205 Increase in net assets 297,688 Net assets, beginning of period - Net assets, end of period $ 297,688 See Notes to the Financial Statements. 14

18 Per Unit Operating Performance Class R Net asset value, at inception $ Income from investment operations: Net investment income (1) 0.06 Net realized and unrealized gain on investments (1) 0.21 Total income from investment operations 0.27 Net asset value, end of period $ Total Return Envestnet Future Advantage Real Asset Fund Financial Highlights For the period from October 24, 2017 (date of inception) to 2.70% ^ Supplemental Data Ratio to average net assets: Expenses 0.11% # Net investment income 4.60% # Fund Unit Activity Units, beginning of period - Issued 38,180 Redeemed (9,185) Units, end of period 28,995 (1) Based on average units outstanding. ^Not annualized for periods less than one year. #Annualized. See Notes to the Financial Statements. 15

19 Envestnet Future Advantage Real Asset Fund Schedule of Investments Principal Amount or Fair Shares Cost Value Collective Funds % BlackRock U.S. Treasury Inflation Protected Securities Fund F 5,517 $ 113,643 $ 113,984 Invesco Balanced-Risk Commodity Trust 8,364 81,306 85,978 Voya Senior Loan Trust Fund Class 2 2,942 32,399 32,463 Total Collective Funds 227, ,425 Mutual Funds % Deutsche Global Infrastructure Fund Institutional Class 2,189 32,720 32,765 Vanguard REIT Index Fund Admiral Shares ,126 32,516 Total Mutual Funds 65,846 65,281 Total Investments % $ 293, ,706 Liabilities in Excess of Other Assets - (0.0%) (18) Net Assets - 100% $ 297,688 The following is a summary of the fair value of the investments in the Fund based on the inputs used to value them as of (see Note 3): Fair Value Measurements Level 1 Level 2 Level 3 Total Collective Funds measured at net asset value* $ - $ - $ - $ 232,425 Mutual Funds 65, ,281 Total $ 65,281 $ - $ - $ 297,706 *Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. During the period ended, the Fund did not hold any Level 3 securities. The Fund recognizes transfers between the fair value hierarchy levels as of the beginning of the fiscal year. There were no transfers between any of the fair value hierarchy levels during the period. Concentration of Ownership: As of, the Fund had one unaffiliated plan holding 10% or more of the outstanding units of the Fund, representing 99% of the total outstanding units. Supplementary Information: Total investment purchases, sales proceeds, and realized gain for the period ended, were: Purchases Sales Realized at Cost Proceeds Gain Investments $ 388,318 $ 95,458 $ 334 See Notes to the Financial Statements. 16

20 Envestnet Future Advantage Income Fund Statement of Assets and Liabilities Assets Investments in securities, at fair value (cost $300,231) $ 300,588 Cash and cash equivalents 25 Dividends receivable 274 Total assets 300,887 Liabilities and Net Assets Payable for investment securities purchased 299 Accrued expenses 14 Total liabilities 313 Net assets $ 300,574 Statement of Operations For the period from October 24, 2017 (date of inception) to Investment income Dividends $ 349 Expenses Trustee and sub-advisory fees 13 Net investment income 336 Unrealized gain on investments Net change in unrealized appreciation on investments 357 Net increase in net assets resulting from operations $ 693 See Notes to the Financial Statements. 17

21 Envestnet Future Advantage Income Fund Statement of Changes in Net Assets For the period from October 24, 2017 (date of inception) to Increase in net assets resulting from operations Net investment income $ 336 Net change in unrealized appreciation on investments 357 Net increase in net assets resulting from operations 693 Fund unit transactions Proceeds from units issued - Class R 299,888 Value of units redeemed - Class R (7) Increase in net assets resulting from fund unit transactions 299,881 Increase in net assets 300,574 Net assets, beginning of period - Net assets, end of period $ 300,574 See Notes to the Financial Statements. 18

22 Per Unit Operating Performance Class R Net asset value, at inception $ Income from investment operations: Net investment income (1) 0.03 Net realized and unrealized gain on investments (1) 0.02 Total income from investment operations 0.05 Net asset value, end of period $ Total Return Envestnet Future Advantage Income Fund Financial Highlights For the period from October 24, 2017 (date of inception) to 0.50% ^ Supplemental Data Ratio to average net assets: Expenses 0.11% # Net investment income 2.81% # Fund Unit Activity Units, beginning of period - Issued 29,906 Redeemed (1) Units, end of period 29,905 (1) Based on average units outstanding. ^Not annualized for periods less than one year. #Annualized. See Notes to the Financial Statements. 19

23 Envestnet Future Advantage Income Fund Schedule of Investments Principal Amount or Fair Shares Cost Value Collective Funds % Pioneer Multi-Sector Fixed Income Trust Tier 2 5,806 $ 81,054 $ 81,228 Western Asset Global Strategic Fixed Income Fund 7,783 87,516 87,633 Total Collective Funds 168, ,861 Mutual Fund % AB High Income Fund Class I 14, , ,727 Total Investments % $ 300, ,588 Liabilities in Excess of Other Assets - (0.0%) (14) Net Assets - 100% $ 300,574 The following is a summary of the fair value of the investments in the Fund based on the inputs used to value them as of (see Note 3): Fair Value Measurements Level 1 Level 2 Level 3 Total Collective Funds measured at net asset value* $ - $ - $ - $ 168,861 Mutual Fund 131, ,727 Total $ 131,727 $ - $ - $ 300,588 *Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. During the period ended, the Fund did not hold any Level 3 securities. The Fund recognizes transfers between the fair value hierarchy levels as of the beginning of the fiscal year. There were no transfers between any of the fair value hierarchy levels during the period. Concentration of Ownership: As of, the Fund had one unaffiliated plan holding 10% or more of the outstanding units of the Fund, representing 99% of the total outstanding units. Supplementary Information: Total investment purchases, sales proceeds, and realized gain for the period ended, were: Purchases Sales Realized at Cost Proceeds Gain Investments $ 300,238 $ 7 $ - See Notes to the Financial Statements. 20

24 Envestnet Future Advantage Core Fixed Income Fund Statement of Assets and Liabilities Assets Investments in securities, at fair value (cost $19,847) $ 20,002 Cash and cash equivalents 42 Total assets 20,044 Liabilities and Net Assets Payable for investment securities purchased 32 Accrued expenses 5 Total liabilities 37 Net assets $ 20,007 Statement of Operations For the period from October 24, 2017 (date of inception) to Expenses Trustee and sub-advisory fees $ 3 Net investment loss (3) Unrealized gain on investments Net change in unrealized appreciation on investments 155 Net increase in net assets resulting from operations $ 152 See Notes to the Financial Statements. 21

25 Envestnet Future Advantage Core Fixed Income Fund Statement of Changes in Net Assets For the period from October 24, 2017 (date of inception) to Increase (decrease) in net assets resulting from operations Net investment loss $ (3) Net change in unrealized appreciation on investments 155 Net increase in net assets resulting from operations 152 Fund unit transactions Proceeds from units issued - Class R 19,855 Increase in net assets 20,007 Net assets, beginning of period - Net assets, end of period $ 20,007 See Notes to the Financial Statements. 22

26 Per Unit Operating Performance Class R Net asset value, at inception $ Income from investment operations: Net investment income (1) 0.00 Net realized and unrealized gain on investments (1) 0.08 Total income from investment operations 0.08 Net asset value, end of period $ Total Return Envestnet Future Advantage Core Fixed Income Fund Financial Highlights For the period from October 24, 2017 (date of inception) to 0.80% ^ Supplemental Data Ratio to average net assets: Expenses 0.11% # Net investment loss (0.11%) # Fund Unit Activity Units, beginning of period - Issued 1,985 Redeemed - Units, end of period 1,985 (1) Based on average units outstanding. ^Not annualized for periods less than one year. #Annualized. See Notes to the Financial Statements. 23

27 Envestnet Future Advantage Core Fixed Income Fund Schedule of Investments Principal Amount or Fair Shares Cost Value Collective Funds % American Century U.S. Core Fixed Income Collective Fund 218 $ 2,175 $ 2,189 BlackRock Total Return Bond Fund F 433 4,369 4,395 BlackRock U.S. Debt Index Fund F 177 5,462 5,500 FIAM Broad Market Duration Commingled Pool Western Asset Core Bond CIF 752 7,614 7,691 Total Investments % $ 19,847 20,002 Other Assets in Excess of Liabilities - 0.0% 5 Net Assets - 100% $ 20,007 The following is a summary of the fair value of the investments in the Fund based on the inputs used to value them as of (see Note 3): Fair Value Measurements Level 1 Level 2 Level 3 Total Collective Funds measured at net asset value* $ - $ - $ - $ 20,002 Total $ - $ - $ - $ 20,002 *Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. During the period ended, the Fund did not hold any Level 3 securities. The Fund recognizes transfers between the fair value hierarchy levels as of the beginning of the fiscal year. There were no transfers between any of the fair value hierarchy levels during the period. Concentration of Ownership: As of, the Fund had one unaffiliated plan holding 10% or more of the outstanding units of the Fund, representing 91% of the total outstanding units. Supplementary Information: Total investment purchases, sales proceeds, and realized gain for the period ended, were: Purchases Sales Realized at Cost Proceeds Gain Collective Funds $ 20,149 $ 302 $ - See Notes to the Financial Statements. 24

28 Notes to the Financial Statements Note 1 Organization Wilmington Trust Collective Investment Trust (the "Trust") is intended to constitute an exempt trust under Section 501(a) of the Internal Revenue Code of 1986, as amended, and a group trust within the meaning of Rev. Rul , as clarified and amended. The Trust is exempt from registration under the Investment Company Act of 1940, as amended, and the Securities Act of 1933, as amended. Wilmington Trust, N.A. ("WTNA" or the "Trustee") serves as the Trustee of the Trust. The Trustee is responsible for maintaining and administering the Trust and its various funds (the "Funds" see Fund Index) and also serves as the investment advisor (the "Investment Advisor") to the Funds. M&T Bank Corporation is the ultimate parent of the Trustee. State Street Bank and Trust Company provides custody and transfer agency services for the Trust and the Funds. The purpose of the Trust is to allow collective investments by plan sponsors of retirement plans which qualify for exemption from federal income taxation pursuant to Section 501(a) of the Internal Revenue Code, as amended (the "Code"), by reason of qualifying under Section 401(a) of the Code; tax-exempt governmental plans under Section 414(d) or Section 818(a)(6) of the Code; eligible deferred compensation plans under Section 457(b) of the Code established by a government employer; group trusts or separate accounts consisting solely of assets of the foregoing; and other investors eligible for participation in the Trust. The Trust consists of separate funds with differing investment objectives, which are available for investment by participating plans. An eligible plan may join the Trust, subject to the Trustee's acceptance, and become a participating plan by executing participation documents specified by the Trustee. Not all funds within the Trust are presented herein. WTNA has engaged Envestnet Retirement Solutions, LLC (the "Sub-Advisor") to provide investment advice and recommendations with respect to investment of the Fund's assets. While the Trustee generally relies on the Sub- Advisor to manage the Fund's assets, the Trustee maintains ultimate fiduciary authority over the management of and investments made in the Fund. The Sub-Advisor is engaged pursuant to a sub-advisory agreement. Note 2 Significant Accounting Policies The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Funds are investment companies and follow the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic No Net Asset Value ("NAV") Units of each fee class of each Fund are valued each day on which the New York Stock Exchange ("NYSE") is open for trading in accordance with the valuation procedures established by the Trustee. The NAV per unit is calculated as of the close of trading on the NYSE (generally, 4:00 p.m. U.S. Eastern time). The NAV per unit is computed by dividing the total fair value of the assets of a Fund, less its liabilities, by the total number of units outstanding at the time of such computation. Investment income earned is reinvested in the Fund and included in the determination of unit values. 25

29 Notes to the Financial Statements (continued) Fund Unit Transactions The Funds sell new units and repurchase outstanding units on a daily basis. Unit purchases and redemptions are transacted at the NAV per fee class of the Funds determined as of the close of business each day. A summary of the Fund unit activity for each Fund is included with its Financial Highlights. The Funds require the plan sponsors to provide a five-day written notice for withdrawals which will exceed $1 million or 10% of the assets invested in each Fund. Investment Valuation Investments are valued at their current fair value determined as follows: Investments in Collective Funds The Trustee or unrelated trustee estimates the fair value of investments in collective funds that have calculated net asset value per unit in accordance with the specialized accounting guidance for investment companies. Accordingly, as a practical expedient, investments in other such funds are valued at their net asset value as reported by the investee funds. The Funds have the ability to redeem their investments in the funds at net asset value without restrictions. Where one fund invests in another fund within the Trust, the Trustee fee allocated to the investment by such investee fund is waived. Securities Securities, other than bonds, listed on a securities exchange, market or automated quotation system for which quotations are readily available are valued at the closing price on the primary exchange or market on which they are traded on the day of valuation or, if there is no such reported sale on the valuation date, at the most recent bid quotation on the principal exchange. If a market price is not readily available or if such price is deemed unreliable, it will be valued at fair value in accordance with valuation procedures established by the Trustee. The Trustee's determination of fair value involves consideration of a number of subjective factors, and therefore, no single standard for determining fair value will apply. When the valuation method described above is not reflective of fair value, investments are valued at fair value following procedures and/or guidelines determined by or under the direction of the valuation committee established by the Trustee. In light of the judgment involved in fair value decisions, there can be no assurance that a fair value assigned to a particular investment is accurate. Cash and Cash Equivalents The Funds consider all highly liquid instruments with original maturities of three months or less at the acquisition date to be cash equivalents. Investment Transactions and Investment Income The Funds record security transactions on a trade date basis. Dividend income is recorded on the ex-dividend date. Net realized gains and losses on investments are determined by the first-in, first-out method. Interest income and expenses are recorded daily on the accrual basis. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Guarantees and Indemnifications Under the Funds' organizational documents, each trustee, officer, employee and agent of the Trust is indemnified, to the extent permitted by law, against certain liabilities that may arise in the performance of their duties to the Funds. 26

30 Notes to the Financial Statements (continued) Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, none of the Funds has had prior claims or losses pursuant to these contracts and the Trustee believes the risk of loss to be remote. Income Tax Status The Trust has received a determination from the Internal Revenue Service (the "IRS") that the Trust is exempt from federal income taxation under Section 501(a) of the Internal Revenue Code. ASC , Accounting for Uncertainty in Income Taxes, provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax expense. In the event that the Funds incur any tax liabilities in the future, the tax liabilities and the corresponding tax expense will be recorded on the Statement of Assets and Liabilities and Statement of Operations, respectively. The Trust's federal fiduciary tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service. The Funds did not accrue any interest or penalties related to uncertain tax liabilities as of. The Trustee is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. Subsequent Events The Trustee has evaluated the effects of subsequent events on the Funds' financial statements through April 30, 2018, which is the date the financial statements were available to be issued, and has determined that there are no material subsequent events that would require disclosure or adjustment in the Funds' financial statements through this date. Note 3 Fair Value Measurements Fair value is defined as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Various inputs are used in determining the fair value of the Funds' investments. The Trustee has performed an analysis of the significance and character of these inputs to the fair value determination. These inputs are summarized in the three broad levels listed below: Level 1 Quoted prices in active markets for identical investments. Level 2 Other significant observable inputs (including quoted prices for similar investments, published net asset values, interest rates, credit risk, and others). Level 3 Significant unobservable inputs (including the Trustee's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used as of, in valuing the Funds' assets carried at fair value is included in Note 2. 27

31 Notes to the Financial Statements (continued) The FASB issued Accounting Standards Update ("ASU") , Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). ASU removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient. ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share as a practical expedient. Investments that calculate NAV per share (or its equivalent), but for which the practical expedient is not applied, will continue to be included in the fair value hierarchy along with the related required disclosures. The Fund adopted ASU and applied the changes to the, financial statements. The aggregate fair value of the investments in each Fund, by input level used as of, is included following each Fund's Schedule of Investments. Note 4 Fees and Expenses Trustee and Sub-Advisory Fees All asset-based fees are based upon the net assets as determined at the end of each preceding business day as set forth in the table below (in basis points). Except as otherwise noted, all asset-based fees are paid from the assets of the Fund. Fund Trustee Fee Sub-Advisory Fee Envestnet Future Advantage US Equity Fund 5 6 Envestnet Future Advantage International Equity Fund 5 6 Envestnet Future Advantage Real Asset Fund 5 6 Envestnet Future Advantage Income Fund 5 6 Envestnet Future Advantage Core Fixed International Fund 5 6 Trustee Fee The Trustee receives an annual fee for trustee and administrative services provided to each Fund. Trustee fees are based upon the average daily value of the Fund and are accrued daily, paid quarterly in arrears and charged against the assets invested in the fee class. Such Trustee fees for the period ended, are included in the Statement of Operations for each respective Fund. Sub-Advisory Fee Out of the total fee, the Trustee pays the Sub-Advisor a fee for its investment advisory services provided to each Fund. These fees are based upon the net asset value of all assets invested in the classes. Operating Expenses In addition to the fees described above, each Fund bears expenses related to its operation, including, but not limited to, audit, custody, tax and legal services. Expenses incurred in connection with the 28

32 Notes to the Financial Statements (continued) investment and reinvestment of Fund assets, including, without limitation, transfer agency fees, brokerage commission and other expenses, are also charged against the Fund. When assets of a Fund are invested in other investment vehicles, such as other collective funds or open-end funds, those investment vehicles will incur fees and expenses, which will be reflected in the operating results and value of the Fund's investment in such investment vehicle, and are separate and distinct from the fees and expenses of each Fund described above. Note 5 Related Party Transactions The Trustee is a national bank that provides trust and custodial services for tax-advantaged retirement plans as well as trust and investment services to business pension and retirement plans. The Trustee is responsible for managing the Trust's investment and business affairs. Note 6 Risks Associated with Investing in the Funds In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the fair value of the investments. The principal risks associated with investing in the Funds are: Active Management. The Fund is actively managed and subject to the risk that the sub-advisor's usage of investment techniques and risk analyses to make investment decisions fails to perform as expected, which may cause the Fund to lose value or underperform investments with similar objectives and strategies or the market in general. Capitalization Exposure. Concentrating assets in stocks of one or more capitalizations (small, mid, or large) may be subject to both the specific risks of those capitalizations as well as increased volatility because stocks of specific capitalizations tend to go through cycles of beating or lagging the market as a whole. Commodity. Investments in commodity-related instruments are subject to the risk that the performance of the overall commodities market declines and that weather, disease, political, tax, and other regulatory developments adversely impact the value of commodities, which may result in a loss of principal and interest. Commodity-linked investments face increased price volatility and liquidity, credit, and issuer risks compared with their underlying measures. Country or Region. Investments in securities from a particular country or region may be subject to the risk of adverse social, political, regulatory, or economic events occurring in that country or region. Country or region-specific risks also include the risk that adverse securities markets or exchange rates may impact the value of securities from those areas. Currency. Investments in securities traded in foreign currencies or more directly in foreign currencies are subject to the risk that the foreign currency will decline in value relative to the U.S. dollar, which may reduce 29

33 Notes to the Financial Statements (continued) the value of the Fund. Investments in currency hedging positions are subject to the risk that the value of the U.S. dollar will decline relative to the currency being hedged, which may result in a loss of money on the investment as well as the position designed to act as a hedge. Cross-currency hedging strategies and active currency positions may increase currency risk because actual currency exposure may be substantially different from that suggested by the Fund's holdings. Emerging Markets. Investments in emerging markets securities may be subject to greater market, credit, currency, liquidity, legal, political, and other risks compared with assets invested in developed foreign countries (see Foreign Securities below). Emerging markets countries may have restrictive national policies that limit investment opportunities, limited information about issuers, a general lack of uniform accounting, auditing and financial reporting standards as compared to the standards of developed countries, less liquidity and more volatility, limitations on the movement of funds, difficulties in enforcing contractual obligations and the possibility of expropriation or nationalization. Equity Securities. The value of equity securities, which include common, preferred, and convertible preferred stocks, will fluctuate based on changes in their issuers' financial conditions, as well as overall market and economic conditions, and can decline in the event of deteriorating issuer, market, or economic conditions. ETF. Investments in exchange-traded funds generally reflect the risks of owning the underlying securities they are designed to track, although they may be subject to greater liquidity risk and higher costs than owning the underlying securities directly because of their management fees, and may not pass through voting and other shareholder rights on the underlying securities. Shares of ETFs are subject to market trading risk, potentially trading at a premium or discount to net asset value. Fixed Income Securities. The value of fixed income or debt securities may be susceptible to general movements in the bond market and are subject to interest rate and credit risk. Foreign Securities. Investments in foreign securities may be subject to increased volatility as the value of these securities can change more rapidly and extremely than the value of U.S. securities. Factors that increase the risk of investing in foreign securities include but are not limited to the following: less public information about issuers of non-u.s. securities; less governmental regulation and supervision over the issuance and trading of securities, the unavailability of financial information regarding the non-u.s. issuer or the difficulty of interpreting financial information prepared under non-u.s. accounting standards, less liquidity, the imposition of withholding and other taxes, and adverse political, social or diplomatic developments. In addition, foreign securities are subject to increased costs because there are generally higher commission rates on transactions, transfer taxes, higher custodial costs, and the potential for foreign tax charges on dividend and interest payments. Many foreign markets are relatively small, and securities issued in less-developed countries face the risks of nationalization, expropriation or confiscatory taxation, and adverse changes in investment or exchange control regulations, including suspension of the ability to transfer currency from a country. Economic, political, social, or diplomatic developments can also negatively impact performance. 30

34 Notes to the Financial Statements (continued) Growth Investing. Growth securities may be subject to increased volatility as the value of these securities is highly sensitive to market fluctuations and future earnings expectations. These securities typically trade at higher multiples of current earnings than do other securities and may lose value if it appears their earnings expectations may not be met. High-Yield Securities. Investments in below investment-grade debt securities and unrated securities of similar credit quality, commonly known as "junk bonds" or "high-yield securities," may be subject to increased interest rate, credit, and liquidity risks. Industry and Sector Investing. Concentrating assets in a particular industry, sector of the economy, or markets may increase volatility because the investment will be more susceptible to the impact of market, economic, regulatory, and other factors affecting that industry or sector compared with a more broadly diversified asset allocation. Inflation/Deflation. A change of asset value may occur because of inflation or deflation, causing the Fund to underperform. Inflation may cause the present value of future payments to decrease, causing a decline in the future value of assets or income. Deflation causes prices to decline throughout the economy over time, impacting issuers' creditworthiness and increasing their risk for default, which may reduce the value of the Fund. Inflation-Protected Securities. Unlike other fixed income securities, the values of inflation-protected securities are not significantly impacted by inflation expectations because their interest rates are adjusted for inflation. Generally, the value of inflation-protected securities will fall when real interest rates rise and rise when real interest rates fall. Interest Rate. Securities are subject to the risk that changes in interest rates will reduce their market value. Issuer. A stake in any individual security is subject to the risk that the issuer of that security performs poorly, resulting in a decline in the security's value. Issuer-related declines may be caused by poor management decisions, competitive pressures, technological breakthroughs, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, or other factors. Additionally, certain issuers may be more sensitive to adverse issuer, political, regulatory, market, or economic developments. Large Cap. Concentrating assets in large-capitalization stocks may subject the Fund to the risk that those stocks underperform other capitalizations or the market as a whole. Large-cap companies may be unable to respond as quickly as small- and mid-cap companies can to new competitive pressures and may lack the growth potential of those securities. Historically, large-cap companies do not recover as quickly as smaller companies do from market declines. Long-Term Outlook and Projections. The investment is intended to be held for a substantial period of time, and investors should tolerate fluctuations in their investment's value. Management. Performance is subject to the risk that the sub-advisor s asset allocation and investment strategies do not perform as expected, which may cause the Fund to underperform its benchmark, other 31

35 Notes to the Financial Statements (continued) investments with similar objectives, or the market in general. The investment is subject to the risk of loss of income and capital invested, and the sub-advisor does not guarantee its value, performance, or any particular rate of return. Market/Market Volatility. The market value of the Fund s securities may fall rapidly or unpredictably because of changing economic, political, or market conditions, which may reduce the value of the Fund. Maturity/Duration. Securities with longer maturities or durations typically have higher yields but may be subject to increased interest rate risk and price volatility compared with securities with shorter maturities, which have lower yields but greater price stability. Multi-Manager. Multi-Manager Funds consist of multiple specialized "sleeves," each holding investments recommended by different subadvisors. The sleeves' individual investing styles may not complement each other. This can result in both higher portfolio turnover and enhanced or reduced concentration in a particular region, country, industry, or investing style compared with an investment in a single sub-advised fund. Passive Management. The investment is not actively managed, and the Fund does not attempt to manage volatility or take defensive positions in declining markets. This passive management strategy may subject the investment to greater losses during general market declines than actively managed investments. Underlying Fund/Fund of Funds. A Fund's risks are closely associated with the risks of the securities and other investments held by the underlying or subsidiary funds, and the ability of the Fund to meet its investment objective likewise depends on the ability of the underlying funds to meet their objectives. Investment in other funds may subject the Fund to higher costs than owning the underlying securities directly because of their management fees and administration costs. U.S. Government Obligations. Investments in U.S. government obligations are subject to varying levels of government support. In the event of default, some U.S. government securities, including U.S. Treasury obligations and Ginnie Mae securities, are issued and guaranteed as to principal and interest by the full faith and credit of the U.S. government. Other securities are obligations of U.S. government-sponsored entities but are neither issued nor guaranteed by the U.S. government. U.S. State or Territory-Specific Investments in the municipal securities of a particular state or territory may be subject to the risk that changes in the economic conditions of that state or territory will negatively impact performance. Value Investing. Value securities may be subject to the risk that these securities cannot overcome the adverse factors the sub-advisor believes are responsible for their low price or that the market may not recognize their fundamental value as the sub-advisor predicted. Value securities are not expected to experience significant earnings growth and may underperform growth stocks in certain markets. 32