Robinson Tax Advantaged Income Fund (Class A: ROBAX) (Class C: ROBCX) (Institutional Class: ROBNX)

Transcription

1 Robinson Tax Advantaged Income Fund (Class A: ROBAX) (Class C: ROBCX) (Institutional Class: ROBNX) Robinson Opportunistic Income Fund (Class A: RBNAX) (Class C: RBNCX) (Institutional Class: RBNNX) ANNUAL REPORT DECEMBER 31, 2017

2 Robinson Funds Each a series of Investment Managers Series Trust Table of Contents Robinson Tax Advantaged Income Fund Shareholder Letter... 1 Fund Performance... 4 Schedule of Investments... 6 Statement of Assets and Liabilities Statement of Operations Statements of Changes in Net Assets Financial Highlights Robinson Opportunistic Income Fund Shareholder Letter Fund Performance Schedule of Investments Statement of Assets and Liabilities Statement of Operations Statements of Changes in Net Assets Financial Highlights Notes to Financial Statements Report of Independent Registered Public Accounting Firm Supplemental Information Expense Examples This report and the financial statements contained herein are provided for the general information of the shareholders of the Robinson Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.

3 February 1, 2018 Dear Shareholders: We are pleased to present the Robinson Tax-Advantaged Income Fund s ( the Fund ) Annual Report covering the year ended December 31, Investment Performance. Short to Intermediate (1-10 years to maturity) municipal bonds, as measured by the Bloomberg Barclay s Short-Intermediate 1-10 Year Municipal Bond Index (the Index ), were up 3.03% for all of 2017 as the yield-to worst on the Index modestly declined from 2.01% to 1.95% during the year (bond prices move in the opposite direction of their yields falling bond yields means rising bond prices). The Fund s Institutional Share Class managed to generate a positive return of 4.98% for the year, which was comprised of a decline of 2 cents per share in net asset value and 49 cents per share in distributions to shareholders. The year for the Fund and the overall municipal bond market was much more volatile than the 0.06% decline in yields for the year might suggest. In the first eight months of the year everything that could go right, did. Municipal bond yields, as measured by the yield-to-worst for the Index, declined 0.60% from 2.01% to 1.41%; the discounts (the difference between a fund s true net asset value and the price at which it is trading in the market) on the taxexempt closed-end funds (CEFs) we held in the Fund narrowed 0.5%; and, the municipal bond yield-to-treasury bond yield relationship narrowed 0.52%. This is important because the Fund uses short positions in various U.S. Treasury futures contracts to attempt to mitigate much of the inherent interest rate risk in the tax-exempt CEFs it holds. Over the first eight months of the year, the Index return was +3.97% while the Fund s Institutional Class return was +5.96%. The last four months of the year was a much different story. Municipal bond yields, as measured by the yield-to-worst for the Index, increased 0.54% from 1.41% to 1.95%; tax-exempt CEF discounts widened 2.4%; and, the municipal bond yield-to-treasury bond yield relationship widened 0.05% (municipal bond yields went up 0.05% more than Treasury yields) as the GOP tax reforms were beginning to take shape and become legislation. Over the last four months of the year the Index return was -0.90% and the Fund s Institutional Class return was -0.92%. Overall, the Fund s absolute and relative performance was impacted positively in three main areas: 1) a general, albeit modest, decline in municipal bond yields (down 0.06%) over the course of the year; 2) a general increase in U.S. Treasury yields (up 0.32%) and the attendant 0.38% narrowing in the yield relationship between municipal bonds and Treasury bonds; and, 3) the Fund s process for analyzing, ranking and ultimately monetizing CEF discounts (security selection) added approximately 1.67% for the year. The single biggest negative for the Fund s return was the 1.9% of widening in CEF discounts over the course of the year. Portfolio Composition. In accordance with the Fund s investment strategy, the Fund as of December 31, 2017, was invested primarily in municipal bond CEFs with a small portion posted as margin for the shorting strategy to hedge the overall portfolio s interest rate risk. As of year-end, the Fund s Institutional Share had a net distribution yield of 4.18% (SEC 30-Day Yield of 3.88%; Unsubsidized SEC 30-Day Yield of 3.84%). The municipal bond CEFs held in the Fund had a weighted average levered taxable equivalent duration of 7.5 years in other words, a 1% rise in interest rates would cause the net asset values of these funds to decline by approximately 7.5%. That interest rate risk was being hedged within the Fund with short positions in various U.S. Treasury futures contracts. As of December 31, 2017, the net exposure to changes in interest rates was approximately 0.9 years (i.e. a 1% rise in rates would result in roughly a 0.9% decline in net asset value). The municipal bond CEFs held in the portfolio were trading at a weighted average discount of 7.1% as of year-end. The historic weighted average discount for those same funds is 3.2%. The Fund had exposure to 35 municipal bond CEFs managed by 13 different asset management firms and representing 97% of the Fund s value. Nuveen Funds 1

4 were our largest single exposure to any one asset management firm 23.1% at year-end. Invesco was our second largest exposure at 18.6%, and BlackRock was third at 11.5%. Market Outlook. The Federal Reserve raised short-term interest rates three times last year and it is forecasting three more rate hikes in We believe the corporate tax reform should improve domestic economic growth, but it remains to be seen if that growth is accompanied by any increase in inflation. Any pick up in wage inflation could cause the Fed to accelerate its current rate increase projections. Bill Gross and Jeff Gundlach, two icons in the fixed income world, have both declared an end to the 35- year bull market in bonds. Regardless of the rate environment, the Fund is designed and managed to attempt to generate a competitive federally tax-exempt distribution yield while trying to immunize investors from most changes in interest rates. We believe the valuations in the underlying municipal bond market remain undervalued relative to taxable bond valuations. The dislocation certainly isn t as wide as it was this time a year ago; but, unlike then, there is no longer any uncertainty about forward tax rates. The change in corporate tax rates certainly makes municipal bonds considerably less attractive to the corporate investor; but, we believe the modest changes in individual tax rates, coupled with the elimination and/or cap on certain itemized deductions, should make the current yields offered in the municipal market very attractive relative to taxable bond alternatives. In addition, the discounts on the taxexempt CEFs held in the Fund at year-end were more than twice their historic averages. That said, we would expect those discounts to remain wide as long as interest rates continue to rise. Overall, we believe the Fund appears well positioned to continue to generate strong absolute and relative returns in the coming year. We value your trust and confidence in the Fund, and thank you for your support. Best Regards, James C. Robinson Portfolio Manager IMPORTANT RISKS AND DISCLOSURES The views expressed in this report reflect those of the Fund s Sub Advisor as of the date this is written and may not reflect its views on the date this report is first published or anytime thereafter. These views are intended to assist shareholders in understanding the Fund s investment methodology and do not constitute investment advice. This report may contain discussions about investments that may or may not be held by the Fund as of the date of this report. All current and future holdings are subject to risk and to change. To the extent this report contains forward looking statements, unforeseen circumstances may cause actual results to differ materially from the views expressed as of the date this is written. An investment in the Fund is subject to risk, including the possible loss of principal amount invested and including, but not limited to, the following risks, which are more fully described in the prospectus: the Fund will invest in shares of closed-end funds (CEFs). Investments in CEFs are subject to various risks, including reliance on management s ability to manage the CEF portfolio, fluctuation in the market value of CEF shares, and the Fund bearing a pro rata share of the fees and expenses of each underlying CEF in which the Fund invests. The underlying CEFs in which the Fund invests will invest primarily in municipal bonds. Litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on the ability of an issuer of municipal bonds to make payments of principal and/or interest. Changes related to taxation, legislation or the rights of municipal security holders can significantly affect municipal bonds. 2

5 The underlying CEFs in which the Fund invests will invest primarily in fixed income securities. Interest rates have been and continue to be low relative to historical levels. A rise in interest rates could negatively impact the value of the Fund s shares. Generally, fixed income securities decrease in value if interest rates rise, and increase in value if interest rates fall, with longer-term securities being more sensitive than shorter-term securities. These risks are greater during periods of rising inflation. It is expected that the CEFs in which the Fund will invest will be leveraged as a result of borrowing or other investment techniques. As a result, the Fund will be exposed indirectly to leverage, and may expose the Fund to higher volatility in the market value of such CEF and the possibility that the Fund s longterm returns will be diminished. In addition, regulations implemented pursuant to the Dodd-Frank Act, particularly the Volcker Rule, may in the future hinder or restrict a CEF s ability to maintain leverage; which in turn may reduce the total return and tax exempt income generated by the underlying CEFs in which the Fund will invest and may cause a reduction in the value of the Fund s shares. There is no guarantee that the Fund s income will be exempt from regular federal income taxes. Events occurring after the date of issuance of a municipal bond or after a CEF s acquisition of a municipal bond may result in a determination that interest on that bond is subject to federal income tax. Federal or state changes in the tax treatment of municipal bonds may make municipal bonds less attractive as investments and cause them to decline in value. The Sub-advisor, where deemed appropriate, will seek to hedge against interest rate risk by shorting U.S. Treasury futures contracts. To the extent the Fund holds such short positions, should market conditions cause U.S. Treasury prices to rise, the Fund s portfolio could experience a loss; and should U.S. Treasury prices rise at the same time municipal bond prices fall, these losses may be greater than if the hedging strategy not been in place. The Fund and the CEFs held by the Fund may use derivative instruments, futures contracts, options, swap agreements, and/or sell securities short. Each of these instruments and strategies involve risks different from direct investments in the underlying assets. Risks include: futures contracts may cause the value of the Fund s shares to be more volatile and expose the Fund to leverage and tracking risks; the Fund may not fully benefit from or may lose money on option or shorting strategies; swaps may be leveraged, are subject to counterparty risk and may be difficult to value or liquidate. The Fund s turnover rate may be high. A high turnover rate may lead to higher transaction costs, a greater number of taxable transactions, and negatively affect the Fund s performance. As a non-diversified fund, the Fund may focus its assets in the securities of fewer issuers, which exposes the Fund to greater market risk than if its assets were diversified among a greater number of issuers. Diversification does not assure a profit or protect against a loss. The Fund may not be suitable for all investors. The Bloomberg Barclays Short-Intermediate 1-10 Years Municipal Bond Index is an unmanaged index that measures the performance of municipal bonds with time to maturity of between 1 and 10 years. One cannot invest directly in an index. 3

6 Robinson Tax Advantaged Income Fund FUND PERFORMANCE at December 31, 2017 (Unaudited) 1,250,000 1,200,000 1,150,000 1,100,000 1,050,000 1,000, , ,000 Performance of a 1,000,000 Investment 1,126,348 1,055,820 Robinson Tax Advantaged Income Fund - Institutional Class Bloomberg Barclays Short-Intermediate 1-10 Years Municipal Bond Index This graph compares a hypothetical 1,000,000 investment in the Fund s Institutional Class shares, made at its inception, with a similar investment in the Bloomberg Barclays Short-Intermediate 1-10 Years Municipal Bond Index. The performance graph above is shown for the Fund s Institutional Class shares; Class A shares and Class C shares performance may vary. Results include the reinvestment of all dividends and capital gains. The Bloomberg Barclays Short-Intermediate 1-10 Years Municipal Bond Index is an unmanaged index that measures the performance of municipal bonds with time to maturity of between one and ten years. This index does not reflect expenses, fees or sales charge, which would lower performance. The index is unmanaged and it is not available for investment. Since Inception Inception Date Average Annual Total Returns as of December 31, Year Before deducting maximum sales charge Class A¹ 4.61% 3.47% 09/30/14 Class C² 3.94% 2.73% 09/30/14 Institutional Class³ 4.98% 3.73% 09/30/14 After deducting maximum sales charge Class A¹ 0.73% 1.60% 09/30/14 Class C² 2.94% 2.73% 09/30/14 Bloomberg Barclays Short-Intermediate 1-10 Years Municipal Bond Index 3.03% 1.68% 09/30/14 ¹ Maximum initial sales charge for Class A shares is 3.75%. No sales charge applies to purchase of 500,000 or more, but a contingent deferred sales charge ( CDSC ) of 1.00% will be imposed on certain redemptions of such shares within 18 months of the date of purchase. ² No initial sales charge applies on investments but a CDSC of 1.00% will be imposed on certain redemptions of shares within 12 months of the date of purchase. ³ Institutional Class shares do not have any initial or contingent deferred sales charge. The performance data quoted here represents past performance and past performance is not a guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. The most recent month end performance may be obtained by calling (800)

7 Robinson Tax Advantaged Income Fund FUND PERFORMANCE at December 31, 2017 (Unaudited) - Continued Gross and Net Expense Ratios for Class A shares were 3.24% and 3.11%, respectively, for Class C shares were 3.99% and 3.86%, respectively, and for Institutional Class shares were 2.99% and 2.86%, respectively, which were the amounts stated in the current prospectus dated May 1, For the Fund s current one year expense ratios, please refer to the Financial Highlights section of this report. The Fund s Advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that the total annual fund operating expenses do not exceed 1.60%, 2.35% and 1.35% of the average daily net assets of the Class A shares, Class C shares, and Institutional Class shares, respectively. This agreement is in effect until April 30, 2018, and may be terminated before that date only by the Trust s Board of Trustee. In the absence of such waivers, the Fund s returns would have been lower. Returns reflect the reinvestment of distributions made by the Fund, if any. The graph and the performance table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 5

8 Robinson Tax Advantaged Income Fund SCHEDULE OF INVESTMENTS As of December 31, 2017 Number of Shares Value CLOSED-END FUNDS 95.4% 274,073 AllianceBernstein National Municipal Income Fund, Inc. 3,672, ,475 BlackRock Investment Quality Municipal Trust, Inc. 3,841,527 49,186 BlackRock Muni Intermediate Duration Fund, Inc. 684,669 9,859 BlackRock Municipal Income Quality Trust 139, ,212 BlackRock Municipal Income Trust 4,483,607 9,339 BlackRock MuniHoldings Fund, Inc. 154, ,869 BlackRock MuniYield Fund, Inc. 2,597, ,237 BlackRock MuniYield Quality Fund II, Inc. 3,566,305 50,000 BlackRock MuniYield Quality Fund III, Inc. 690, ,192 Deutsche Municipal Income Trust 3,560, ,552 Deutsche Strategic Municipal Income Trust 2,939, ,798 Dreyfus Municipal Bond Infrastructure Fund, Inc. 5,184, ,143 Dreyfus Municipal Income, Inc. 1,974, ,100 Eaton Vance Municipal Bond Fund 4,492, ,891 Eaton Vance Municipal Income Trust 7,637, ,525 Federated Premier Municipal Income Fund 3,966, ,008 Invesco Advantage Municipal Income Trust II 7,283,291 81,400 Invesco Municipal Opportunity Trust 1,009, ,452 Invesco Municipal Trust 4,593, ,163 Invesco Quality Municipal Income Trust 7,395, ,388 Invesco Trust for Investment Grade Municipals 2,733, ,019 Invesco Value Municipal Income Trust 3,159, ,033 MFS Municipal Income Trust 3,984, ,704 Neuberger Berman Intermediate Municipal Fund, Inc. 2,154, ,389 Nuveen AMT-Free Municipal Credit Income Fund 4,823, ,596 Nuveen AMT-Free Quality Municipal Income Fund 9,605, ,852 Nuveen Enhanced Municipal Value Fund 4,257,898 46,241 Nuveen Intermediate Duration Municipal Term Fund 600, ,958 Nuveen Municipal Credit Income Fund 4,434, ,132 Nuveen Quality Municipal Income Fund 8,859,656 24,179 PIMCO Municipal Income Fund 314, ,680 Pioneer Municipal High Income Advantage Trust 1,701, ,298 Pioneer Municipal High Income Trust 5,312, ,130 Putnam Managed Municipal Income Trust 5,899, ,425 Putnam Municipal Opportunities Trust 7,192,949 TOTAL CLOSED-END FUNDS (Cost 136,371,000) 134,901,610 EXCHANGE-TRADED FUNDS 1.3% 71,649 PowerShares National AMT-Free Municipal Bond Portfolio 1,849,261 TOTAL EXCHANGE-TRADED FUNDS (Cost 1,851,476) 1,849,261 6

9 Robinson Tax Advantaged Income Fund SCHEDULE OF INVESTMENTS - Continued As of December 31, 2017 Principal Amount Value SHORT-TERM INVESTMENTS 1.5% 2,058,075 UMB Money Market Fiduciary, 0.01% 1 2,058,075 TOTAL SHORT-TERM INVESTMENTS (Cost 2,058,075) 2,058,075 TOTAL INVESTMENTS 98.2% (Cost 140,280,551) 138,808,946 Other Assets in Excess of Liabilities 1.8% 2,524,431 TOTAL NET ASSETS 100.0% 141,333,377 1 The rate is the annualized seven-day yield at period end. See accompanying Notes to Financial Statements. 7

10 Robinson Tax Advantaged Income Fund SCHEDULE OF INVESTMENTS - Continued As of December 31, 2017 FUTURES CONTRACTS Number of Unrealized Contracts Expiration Value at Value at Appreciation Long (Short) Description Date Trade Date December 31, 2017 (Depreciation) (100) U.S. 2 Year Treasury Note March 2018 (21,435,000) (21,410,781) 24,219 (300) U.S. 5 Year Treasury Note March 2018 (34,956,219) (34,849,187) 107,032 (275) U.S. 10 Year Treasury Note March 2018 (34,259,766) (34,112,891) 146,875 (100) U.S. Treasury Long Bond March 2018 (15,369,531) (15,300,000) 69,531 (35) Ultra Long Term U.S. Treasury Bond March 2018 (5,872,617) (5,867,969) 4,648 TOTAL FUTURES CONTRACTS (111,893,133) (111,540,828) 352,305 See accompanying Notes to Financial Statements. 8

11 Robinson Tax Advantaged Income Fund SUMMARY OF INVESTMENTS As of December 31, 2017 Security Type Percent of Total Net Assets Closed-End Funds 95.4% Exchange-Traded Funds 1.3% Short-Term Investments 1.5% Total Investments 98.2% Other Assets in Excess of Liabilities 1.8% Total Net Assets 100.0% See accompanying Notes to Financial Statements. 9

12 Robinson Tax Advantaged Income Fund STATEMENT OF ASSETS AND LIABILITIES As of December 31, 2017 Assets: Investments, at value (cost 140,280,551) 138,808,946 Cash deposited with brokers for futures contracts 1,817,180 Receivables: Unrealized appreciation on futures contracts 352,305 Fund shares sold 788,251 Dividends and interest 105,045 Prepaid expenses 21,309 Total assets 141,893,036 Liabilities: Payables: Fund shares redeemed 315,486 Due to custodian 3,526 Advisory fees 129,497 Shareholder servicing fees (Note 7) 15,030 Distribution fees - Class A & Class C (Note 6) 13,096 Auditing fees 19,056 Transfer agent fees and expenses 14,462 Fund administration fees 11,963 Fund accounting fees 10,522 Custody fees 4,518 Chief Compliance Officer fees 1,078 Trustees' fees and expenses 797 Trustees' deferred compensation (Note 3) 622 Accrued other expenses 20,006 Total liabilities 559,659 Net Assets 141,333,377 Components of Net Assets: Paid-in capital (par value of 0.01 per share with an unlimited number of shares authorized) 148,707,730 Accumulated undistributed net investment income 1,808 Accumulated undistributed net realized loss on investments and futures contracts (6,256,861) Net unrealized appreciation (depreciation) on: Investments (1,471,605) Futures contracts 352,305 Net Assets 141,333,377 Maximum Offering Price per Share: Class A Shares: Net assets applicable to shares outstanding 25,857,348 Shares of beneficial interest issued and outstanding 2,695,192 Redemption price Maximum sales charge (3.75% of offering price) Maximum offering price to public Class C Shares: Net assets applicable to shares outstanding 11,749,568 Shares of beneficial interest issued and outstanding 1,225,721 Redemption price Institutional Class Shares: Net assets applicable to shares outstanding 103,726,461 Shares of beneficial interest issued and outstanding 10,813,601 Redemption price 9.59 A Contingent Deferred Sales Charge ( CDSC ) of 1.00% may be charged on certain purchases of 500,000 or more that are redeemed in whole or in part within 18 months of the date of purchase. No initial sales charge is applied to purchases of 500,000 or more. A CDSC of 1.00% may be charged on purchases that are redeemed in whole or in part within 12 months of the date of purchase. See accompanying Notes to Financial Statements. 10

13 Robinson Tax Advantaged Income Fund STATEMENT OF OPERATIONS For the Year Ended December 31, 2017 Investment Income: Dividends 7,995,400 Interest 241 Total investment income 7,995,641 Expenses: Advisory fees 1,634,332 Fund administration fees 109,393 Distribution fees - Class C (Note 6) 102,039 Distribution fees - Class A (Note 6) 73,650 Registration fees 90,450 Shareholder servicing fees (Note 7) 77,538 Transfer agent fees and expenses 74,015 Fund accounting fees 62,181 Legal fees 31,361 Custody fees 27,058 Auditing fees 19,726 Miscellaneous 17,869 Shareholder reporting fees 12,216 Chief Compliance Officer fees 11,249 Trustees' fees and expenses 8,749 Insurance fees 1,383 Total expenses 2,353,209 Advisory fees waived (171,748) Net expenses 2,181,461 Net investment income 5,814,180 Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: Net realized loss on: Investments (3,886,632) Futures contracts (2,559,657) Net realized loss (6,446,289) Net change in unrealized appreciation/depreciation on: Investments 7,288,455 Futures contracts 598,111 Net change in unrealized appreciation/depreciation 7,886,566 Net realized and unrealized gain on investments and futures contracts 1,440,277 Net Increase in Net Assets from Operations 7,254,457 See accompanying Notes to Financial Statements. 11

14 Robinson Tax Advantaged Income Fund STATEMENTS OF CHANGES IN NET ASSETS For the For the Year Ended Year Ended December 31, 2017 December 31, 2016 Increase (Decrease) in Net Assets from: Operations: Net investment income 5,814,180 4,678,653 Net realized gain (loss) on investments and futures contracts (6,446,289) 3,143,864 Capital gain distributions from regulated investment companies - 63,178 Net change in unrealized appreciation/depreciation on investments and futures contracts 7,886,566 (10,876,544) Net increase (decrease) in net assets resulting from operations 7,254,457 (2,990,849) Distributions to Shareholders: From net investment income: Class A (1,114,975) (943,289) Class C (314,402) (249,953) Institutional Class (4,382,592) (3,478,239) From net realized gains: Class A (317,295) (180,980) Class C (103,375) (78,774) Institutional Class (1,176,241) (580,152) Total distributions to shareholders (7,408,880) (5,511,387) Capital Transactions: Net proceeds from shares sold: Class A 5,550,113 33,676,826 Class C 5,318,335 12,697,912 Institutional Class 55,912,562 87,229,598 Reinvestment of distributions: Class A 1,186, ,382 Class C 404, ,857 Institutional Class 3,325,734 2,502,908 Cost of shares redeemed: Class A (9,756,030) (13,479,957) Class C (5,687,358) (1,666,862) Institutional Class (43,268,639) (57,914,448) Net increase in net assets from capital transactions 12,986,305 64,233,216 Total increase in net assets 12,831,882 55,730,980 Net Assets: Beginning of period 128,501,495 72,770,515 End of period 141,333, ,501,495 Accumulated undistributed net investment income 1,808 - Capital Share Transactions: Shares sold: Class A 573,843 3,279,575 Class C 552,161 1,232,193 Institutional Class 5,772,552 8,518,606 Shares reinvested: Class A 122,270 86,538 Class C 41,727 31,857 Institutional Class 342, ,995 Shares redeemed: Class A (1,004,961) (1,340,708) Class C (587,777) (168,692) Institutional Class (4,444,939) (5,734,442) Net increase in capital share transactions 1,367,510 6,153,922 See accompanying Notes to Financial Statements. 12

15 Robinson Tax Advantaged Income Fund FINANCIAL HIGHLIGHTS Class A Per share operating performance. For a capital share outstanding throughout each period. For the Period For the Year Ended December 31, 2017 Net asset value, beginning of period Income from Investment Operations: 9.62 Net investment income1, 2 Net realized and unrealized gain (loss) on investments Total from investment operations Less Distributions: From net investment income From net realized gains Total distributions Net asset value, end of period Portfolio turnover rate (0.41) (0.37) (0.10) (0.47) (0.42) (0.05) (0.47) (0.45) (0.45) (0.11) (0.11) 25,857 Ratio of expenses to average net assets: Before fees waived and expenses absorbed5 After fees waived and expenses absorbed5 Ratio of net investment income (loss) to average net assets: Before fees waived and expenses absorbed2 After fees waived and expenses absorbed % 9.59 Total return Ratios and Supplemental Data: Net assets, end of period (in thousands) 2016 September 30, 2014* through December, 31, (0.05)% 28, % 9, % % 1.60% 1.73% 1.60% 2.10% 1.60% 6.27% 1.60% % 3.78% 3.83% 3.96% 4.15% 4.65% (0.23)% 4.44% 7 123% 128% 92% 19% 6 * Commencement of operations. 1 Based on average shares outstanding for the period. 2 Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. The ratio does not include net investment income of the investment companies in which the Fund invests. 3 Total returns would have been lower had expenses not been waived or absorbed by the Advisor. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown do not include payment of sales load of 3.75% of offering price which is reduced on sales of 100,000 or more and no initial sales charge is applied to purchases of 500,000 or more. Returns shown do not include payment of a Contingent Deferred Sales Charge ( CDSC ) of 1.00% on certain purchases of 500,000 or more that are redeemed in whole or in part within 18 months of purchase. If these sales charges were included total returns would be lower. 4 Total returns would have been lower had expenses not been waived or absorbed by the Advisor. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown do not include payment of sales load of 5.75% of offering price which is reduced on sales of 50,000 or more and no initial sales charge is applied to purchases of 1 million or more. Returns shown do not include payment of a Contingent Deferred Sales Charge ( CDSC ) of 1.00% on certain purchases of 1 million or more that are redeemed in whole or in part within 12 months of purchase. If these sales charges were included total returns would be lower. 5 Does not include expenses of the investment companies in which the Fund invests. 6 7 Not annualized. Annualized. See accompanying Notes to Financial Statements. 13 4,6 7 7

16 Robinson Tax Advantaged Income Fund FINANCIAL HIGHLIGHTS Class C Per share operating performance. For a capital share outstanding throughout each period. For the Period September 30, 2014* through December, 31, 2014 For the Year Ended December 31, 2017 Net asset value, beginning of period Income from Investment Operations: 9.61 Net investment income1, 2 Net realized and unrealized gain (loss) on investments Total from investment operations Less Distributions: From net investment income From net realized gains Total distributions Net asset value, end of period Portfolio turnover rate (0.30) (0.10) (0.40) (0.35) (0.05) (0.40) (0.38) (0.38) (0.10) (0.10) 11,750 Ratio of expenses to average net assets: Before fees waived and expenses absorbed4 After fees waived and expenses absorbed4 Ratio of net investment income (loss) to average net assets: Before fees waived and expenses absorbed2 After fees waived and expenses absorbed (0.41) (0.08) 3.94% Total return3 Ratios and Supplemental Data: Net assets, end of period (in thousands) (0.85)% 11, % 1, % % 2.35% 2.48% 2.35% 2.85% 2.35% 7.02% 2.35% % 3.03% 3.08% 3.21% 3.40% 3.90% (0.98)% 3.69% 6 123% 128% 92% 19% 5 * Commencement of operations. 1 Based on average shares outstanding for the period. 2 Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. The ratio does not include net investment income of the investment companies in which the Fund invests. 3 Total returns would have been lower had expenses not been waived or absorbed by the Advisor. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown do not include payment of a Contingent Deferred Sales Charge ( CDSC ) of 1.00% on purchases that are redeemed in whole or in part within 12 months of purchase. If these sales charges were included total returns would be lower. 4 Does not include expenses of the investment companies in which the Fund invests. 5 Not annualized. 6 Annualized. See accompanying Notes to Financial Statements

17 Robinson Tax Advantaged Income Fund FINANCIAL HIGHLIGHTS Institutional Class Per share operating performance. For a capital share outstanding throughout each period. For the Period September 30, 2014* through December, 31, 2014 For the Year Ended December 31, 2017 Net asset value, beginning of period Income from Investment Operations: 9.61 Net investment income1, 2 Net realized and unrealized gain (loss) on investments Total from investment operations Less Distributions: From net investment income From net realized gains Total distributions Net asset value, end of period Portfolio turnover rate (0.39) (0.10) (0.49) (0.45) (0.05) (0.50) (0.48) (0.48) (0.12) (0.12) 103,726 Ratio of expenses to average net assets: Before fees waived and expenses absorbed4 After fees waived and expenses absorbed4 Ratio of net investment income to average net assets: Before fees waived and expenses absorbed2 After fees waived and expenses absorbed (0.41) % Total return3 Ratios and Supplemental Data: Net assets, end of period (in thousands) % 87, % 61, % 10, % 1.35% 1.48% 1.35% 1.85% 1.35% 6.02% 1.35% % 4.03% 4.08% 4.21% 4.40% 4.90% 0.02% 4.69% 6 123% 128% 92% 19% 5 * Commencement of operations. 1 Based on average shares outstanding for the period. 2 Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. The ratio does not include net investment income of the investment companies in which the Fund invests. 3 Total returns would have been lower had expenses not been waived or absorbed by the Advisor. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 4 Does not include expenses of the investment companies in which the Fund invests. 5 Not annualized. 6 Annualized. See accompanying Notes to Financial Statements

18 February 1, 2018 Dear Shareholders: We are pleased to present the Robinson Opportunistic Income Fund s ( the Fund ) Annual Report covering the year ended December 31, Investment Performance. Global credit markets, as measured by the Fund s benchmark, the Bloomberg Barclay s Global Aggregate Credit Index (the Index ), had a solid year and were up +8.93% for all of 2017 as the yield on that index declined -0.12% (bond prices move in the opposite direction of their yields falling bond yields mean rising bond prices). The currency hedged version of that Index the Bloomberg Barclays Global Aggregate Credit Index Hedged, returned 5.36%. The difference between the two reflects the 10% decline in the US Dollar during the year. The Fund s Institutional Share Class returned +5.93% for the year, which was comprised of a 1 cent per share decline in net asset value and 65 cents per share in distributions to shareholders. The Fund seeks to take advantage of pricing dislocations that frequently occur in the corporate capital structure. It does this primarily by investing in closed-end funds (CEFs) which invest in the asset classes we view to be undervalued, and attempting to mitigate any undesired risks, such as interest rate risk, credit and/or equity-like risk by utilizing hedging strategies with short positions in various futures contracts. The Fund invests the majority of its assets in credit markets. Over the past year, on average, more than 80% of the assets were always invested in high yield bonds (+8.42), investment grade corporate bonds (+3.92%), mortgage backed securities (+2.47%), and senior bank loans (+3.32%). Unfortunately, none of those asset classes kept pace with the benchmark s unhedged 8.93% return for the year. The Fund did have roughly 10%, on average, allocated to equity income strategies, but REITs (+5.13%) and MLPs (-6.52%) also lagged the benchmark index. The biggest impact on the Fund s relative performance was its underweight in non-dollar securities relative to its benchmark. Specifically, the Fund had 15% exposure to non-dollar securities, whereas its benchmark had more than 45% exposure. In a year in which the U.S. dollar declined 10%, that difference amounted to 3.00% in relative underperformance. The Fund s hedges, while attempting to reduce risk and mitigate some of the Fund s downside risks, were a drag on performance for the year. The Fund s short positions in various equity index futures contracts, which were used primarily to hedge credit spread risk, reduced the Fund s annual performance by approximately 4.1%. The Fund s short positions in various U.S. Treasury futures contracts, which were used to hedge interest rate risk, actually added 0.2% to the Fund s annual return. Portfolio Composition. In accordance with the Fund s investment strategy, the Fund as of December 31, 2017 was invested primarily in taxable CEFs with a small portion posted as margin for the various hedging strategies. The Fund also had nearly 3% of the Fund s value posted as cash collateral for a short position it held. As of year-end the Fund s Institutional Share had a net distribution yield of 6.95% (SEC 30-Day Yield of 6.12%; Unsubsidized 30 Day SEC Yield of 5.67%). The taxable CEFs held in the portfolio were trading at a weighted average discount of 8.1% as of yearend. The historic weighted average discount for those same funds is 3.0%. The Fund had exposure to 36 taxable CEFs in seven different income-oriented asset classes representing more than 95% of the Fund s value. The Fund s largest asset class exposure as of year-end was taxable bond CEFs (58.9%), followed by senior bank loan CEFs (20.3%), cash (8.3%), convertible bond CEFs (3.8%) and preferred stock CEFs (1.6%). The remaining 7.1% was spread across various equity-income strategies including REITs and infrastructure. 16

19 Market Outlook. The Robinson Opportunistic Income Fund invests exclusively in asset classes that should continue to benefit in a risk on environment. We believe the recently passed corporate tax reform legislation, which caps the amount of interest expense deduction a company can claim, will encourage the retirement of high yield debt and certainly discourage any new issuance (i.e. we would expect the supply of high yield debt to decline). The Fund utilizes various hedges to mitigate some of its downside exposure in risk off environments; but, in a market correction, which we wouldn t be surprised to see in the next several quarters, it will also likely participate on the downside. Since the Fund s inception it has captured 60% of the S&P 500 s return in up weeks and less than 40% of the S&P 500 s return in down weeks Relative to the Fund s specific benchmark, the Fund had more than a 3.5% yield advantage and the CEFs it invests in were trading at a weighted average discount of 8.1% as of December 31, 2017, which is considerably wider than the historic average discount of 3.0% for those same funds. We believe that combination should provide a sufficient cushion to find strong relative returns in most environments, with the possible exception of a continued weakening of the U.S. dollar. We also believe the Fund appears well-positioned to deliver strong absolute returns in most environments other than a major market correction. We value your trust and confidence in the Fund, and thank you for your support. Best Regards, James C. Robinson Portfolio Manager IMPORTANT RISKS AND DISCLOSURES The views expressed in this report reflect those of the Fund s Sub Advisor as of the date this is written and may not reflect its views on the date this report is first published or anytime thereafter. These views are intended to assist shareholders in understanding the Fund s investment methodology and do not constitute investment advice. This report may contain discussions about investments that may or may not be held by the Fund as of the date of this report. All current and future holdings are subject to risk and to change. To the extent this report contains forward looking statements, unforeseen circumstances may cause actual results to differ materially from the views expressed as of the date this is written. An investment in the Fund is subject to risk, including the possible loss of principal amount invested and including, but not limited to, the following risks, which are more fully described in the prospectus: Investments in CEFs are subject to various risks, including reliance on management s ability to manage the CEF portfolio, fluctuation in the market value of CEF shares, and the Fund bearing a pro rata share of the fees and expenses of each underlying CEF in which the Fund invests. It is expected that the CEFs in which the Fund will invest will be leveraged as a result of borrowing or other investment techniques. As a result, the Fund will be exposed indirectly to leverage, and may expose the Fund to higher volatility in the market value of such CEF and the possibility that the Fund s long-term returns will be diminished. In addition, regulations implemented pursuant to the Dodd-Frank Act, particularly the Volcker Rule, may in the future hinder or restrict a CEF s ability to maintain leverage; which in turn may reduce the 17

20 total return and income generated by the underlying CEFs in which the Fund will invest and may cause a reduction in the value of the Fund s shares. The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to changes in an issuer s credit rating or market perceptions about the creditworthiness of an issuer. Generally fixed income securities decrease in value if interest rates rise and increase in value if interest rates fall, and longerterm and lower rated securities are more volatile than shorter-term and higher rated securities. The Fund and the CEFs held by the Fund may use derivative instruments, futures contracts, options, swap agreements, and/or sell securities short. Each of these instruments and strategies involve risks different from direct investment in the underlying assets, including but not limited to: futures contracts may cause the value of the Fund s shares to be more volatile; the Fund may not fully benefit from or may lose money on option or shorting strategies; swaps may be leveraged, are subject to counterparty risk and may be difficult to value or liquidate; for short sales, if the price of a security has increased at the time the Fund replaces the security, the Fund will experience a loss, which is theoretically unlimited. High yield ( junk ) bonds are speculative, involve greater risks of default, downgrade, or price declines and are more volatile and tend to be less liquid than investment-grade securities. Investing in an ETF provides the Fund with exposure to the securities comprising the index on which the ETF is based and exposes the Fund to risks similar to those of investing directly in those securities. In addition, an ETF may not replicate exactly the performance of the benchmark index it seeks to track. There is no guarantee that the Fund s distributions will be characterized as income for U.S. federal income tax purposes. For example, the Fund s opportunistic trading strategies may result in a portion of the Fund s distributions to shareholders being characterized as capital gains. The Fund s turnover rate may be high. A high turnover rate may lead to higher transaction costs, a greater number of taxable transactions, and negatively affect the Fund s performance. As a nondiversified fund, the Fund may focus its assets in the securities of fewer issuers, which exposes the Fund to greater market risk that if its assets were diversified among a greater number of issuers. The Fund may not be suitable for all investors. Subsidized 30-Day SEC Yield is based on a 30-day period ending on the last day of the previous month and is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. This subsidized yield is based on the net expenses of the Fund of which the yield would be lower without the waivers in effect. Negative 30-Day SEC Yield results when accrued expenses of the past 30 days exceed the income collected during the past 30 days. Unsubsidized 30 Day SEC Yield is based on total expenses of the Fund. Each individual s actual tax burden will vary. The Bloomberg Barclays Global Aggregate Credit Index covers the credit sector of the global investment grade fixedrate bond market. Credit issuers include corporate, sovereign (when issuing in a currency other than the sovereign s home currency), supranational, and foreign local agencies/authorities. The Bloomberg Barclays Global Aggregate Credit Index Hedged (USD) is a market value weighted index of global investment-grade credit markets, including corporate bonds and non-native government related bonds that excludes US taxable municipal bonds, hedged in USD. The S&P 500 Index is a broad based, unmanaged measurement of changes in stock market conditions on the average of 500 widely held common stocks. One cannot invest directly in an index. A risk-on environment is when an investor is willing to gravitate toward higher risk investments for the potential return. A risk off environment is when an investor is not willing to gravitate toward a higher risk investment for the potential return. 18

21 Robinson Opportunistic Income Fund FUND PERFORMANCE at December 31, 2017 (Unaudited) 1,300,000 1,250,000 1,200,000 1,150,000 1,100,000 1,050,000 1,000, , ,000 Performance of a 1,000,000 Investment 1,254,783 1,129,303 Robinson Opportunistic Income Fund - Institutional Class Bloomberg Barclays Global Aggregate Credit Index This graph compares a hypothetical 1,000,000 investment in the Fund s Institutional Class shares, made at its inception, with a similar investment in the Bloomberg Barclays Global Aggregate Credit Index. The performance graph above is shown for the Fund s Institutional Class shares; Class A shares and Class C shares performance may vary. Results include the reinvestment of all dividends and capital gains. The Bloomberg Barclays Global Aggregate Credit Index covers the credit sector of the global investment grade fixed-rate bond market. Credit issuers include corporate, sovereign (when issuing in a currency other than the sovereign s home currency), supranational, and foreign local agencies/authorities. This index does not reflect expenses, fees or sales charge, which would lower performance. The index is unmanaged and it is not available for investment. Since Inception Inception Date Average Annual Total Returns as of December 31, Year Before deducting maximum sales charge Class A¹ 5.66% 11.75% 12/31/15 Class C² 4.81% 10.85% 12/31/15 Institutional Class³ 5.93% 12.02% 12/31/15 After deducting maximum sales charge Class A¹ -0.43% 8.49% 12/31/15 Class C² 3.81% 10.85% 12/31/15 Bloomberg Barclays Global Aggregate Credit Index 8.93% 6.27% 12/31/15 ¹ Maximum initial sales charge for Class A shares is 4.25%. Prior to February 15, 2017, the maximum sales charge for Class A shares was 5.75%. No sales charge applies to purchase of 1 million or more, but a contingent deferred sales charge ( CDSC ) of 1.00% will be imposed on certain redemptions of such shares within 12 months of the date of purchase. ² No initial sales charge applies on investments but a CDSC of 1.00% will be imposed on certain redemptions of shares within 12 months of the date of purchase. ³ Institutional Class shares do not have any initial or contingent deferred sales charge. 19

22 Robinson Opportunistic Income Fund FUND PERFORMANCE at December 31, 2017 (Unaudited) - Continued The performance data quoted here represents past performance and past performance is not a guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. The most recent month end performance may be obtained by calling (800) Gross and Net Expense Ratios for Class A shares were 3.94% and 3.53%, respectively, for Class C shares were 4.69% and 4.28%, respectively, and for Institutional Class shares were 3.69% and 3.28%, respectively, which were the amounts stated in the current prospectus dated May 01, For the Fund s current one year expense ratios, please refer to the Financial Highlights section of this report. The Fund s Advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that the total annual fund operating expenses do not exceed 1.60%, 2.35% and 1.35% of the average daily net assets of the Class A shares, Class C shares, and Institutional Class shares, respectively. This agreement is in effect until April 30, 2018, and may be terminated before that date only by the Trust s Board of Trustee. In the absence of such waivers, the Fund s returns would have been lower. Returns reflect the reinvestment of distributions made by the Fund, if any. The graph and the performance table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 20

23 Robinson Opportunistic Income Fund SCHEDULE OF INVESTMENTS As of December 31, 2017 Number of Shares Value CLOSED-END FUNDS 91.0% 42,161 Advent Claymore Convertible Securities and Income Fund 669, ,533 Advent Claymore Convertible Securities and Income Fund II 727, ,659 AllianzGI Convertible & Income Fund II 1,382, ,588 Alpine Global Premier Properties Fund 1,365, ,930 Apollo Senior Floating Rate Fund, Inc. 3,323, ,828 Ares Dynamic Credit Allocation Fund, Inc. 3,018, ,479 BlackRock Corporate High Yield Fund, Inc. 1,613, ,510 Blackstone/GSO Long-Short Credit Income Fund 2,268, ,388 Blackstone/GSO Strategic Credit Fund 2,535, ,958 Brookfield Real Assets Income Fund, Inc. 2,476,238 70,289 Cohen & Steers Ltd. Duration Preferred and Income Fund, Inc. 1,832,434 21,031 Cohen & Steers Total Return Realty Fund, Inc. 268, ,197 DoubleLine Income Solutions Fund 3,315, ,040 Eaton Vance Limited Duration Income Fund 3,249,246 20,800 Eaton Vance Senior Income Trust 135, ,389 Invesco Dynamic Credit Opportunities Fund 2,709, ,405 John Hancock Investors Trust 1,862, ,446 KKR Income Opportunities Fund 2,173, ,819 Neuberger Berman High Yield Strategies Fund, Inc. 2,608,591 42,201 Nuveen Global High Income Fund 713,619 48,346 Nuveen Preferred & Income Term Fund 1,197,047 54,491 Nuveen Real Asset Income and Growth Fund 969, ,734 PIMCO Dynamic Credit and Mortgage Income Fund 2,395, ,090 Pioneer Diversified High Income Trust 2,584, ,440 Pioneer High Income Trust 3,791,172 91,627 Principal Real Estate Income Fund 1,575,068 38,557 Prudential Short Duration High Yield Fund, Inc. 569,487 86,282 Reaves Utility Income Fund 2,669, ,300 Voya Prime Rate Trust 995, ,809 Wells Fargo Income Opportunities Fund 1,627, ,922 Western Asset Emerging Markets Debt Fund, Inc. 2,082, ,548 Western Asset Global High Income Fund, Inc. 1,252, ,719 Western Asset High Income Fund II, Inc. 3,469, ,490 Western Asset High Income Opportunity Fund, Inc. 950,574 74,579 Western Asset High Yield Defined Opportunity Fund, Inc. 1,127, ,319 Western Asset Premier Bond Fund 2,241,625 TOTAL CLOSED-END FUNDS (Cost 65,517,583) 67,749,577 Principal Amount SHORT-TERM INVESTMENTS 2.0% 1,468,772 UMB Money Market Fiduciary, 0.01% 1 1,468,772 TOTAL SHORT-TERM INVESTMENTS (Cost 1,468,772) 1,468,772 21