July 29, 2021

tacere

Beauty Made Perfect

Form N-CSRS PROFESSIONALLY MANAGED For: Mar 31

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number (811-05037)

Professionally Managed Portfolios
(Exact name of registrant as specified in charter)

615 East Michigan Street

Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)

Elaine E. Richards

Professionally Managed Portfolios

c/o U.S. Bank Global Fund Services
2020 E. Financial Way, Ste. 100
Glendora, CA 91741

(Name and address of agent for service)

(626) 914-7363

Registrant’s telephone number, including area code

Date of fiscal year end: September 30

Date of reporting period:  March 31, 2021

Item 1. Report to Stockholders.

(a)

 

 

 

 

TCM SMALL CAP GROWTH FUND

 

 

 

 

 

   
   
   
   
   
   
   

SEMI-ANNUAL REPORT

 
   

TCM Small Cap Growth Fund

 
   
   
   
   
   
   
   
   
   
   
   
   
 

March 31, 2021  

   
   
   
   

TCM SMALL CAP GROWTH FUND  

   

Table of Contents

 

Performance Discussion

   

2

Performance

   

6

Fund Information

   

7

Schedule of Investments

   

8

Statement of Assets and Liabilities

   

11

Statement of Operations

   

12

Statements of Changes in Net Assets

   

13

Financial Highlights

   

14

Notes to Financial Statements

   

15

Fund Expense Example

   

22

Additional Information

   

24

Privacy Notice

   

25

   TCM SMALL CAP GROWTH FUND

   

PERFORMANCE DISCUSSION (Unaudited)

May 5, 2021

 

Dear Fellow Shareholder:

 

Thank you for your investment in the Fund.  This is the semi-annual report to shareholders of the Fund covering the six months ended March 31, 2021, which is the first half of the Fund’s fiscal
year.  The report includes a discussion of the factors that impacted the performance of the Fund for the period, as well as information on Fund expenses and holdings.

 

Performance Overview.  The performance of the Fund for the following periods were:

 

 

Fourth

First

Six Months

 

Quarter

Quarter

Ended

 

2020

2021

March 31, 2021

TCM Small Cap Growth Fund

25.21%

8.09%

35.33%

Russell 2000® Growth Index

29.61%

4.88%

35.92%

Lipper Small Cap Growth Average

26.48%

6.06%

34.26%

Longer term performance for the Fund is set forth in the chart and table that follows this letter.

 

Performance Attribution – Six Months Ended March 31, 2021.  Below is a summary of performance attribution for the past two quarters.

 

Fourth Quarter 2020.  The fourth quarter, like much of 2020, was a study in contrasts as the Russell 2000® Index posted its best quarter in history in the midst of surges in infection and death rates from the COVID-19 pandemic.  Hope springs eternal and the prospects for a widespread delivery of effective vaccines
provided investor optimism that life would return to normal by mid-2021.  In addition, investors were buoyed by a Federal Reserve (the “Fed”) determined to remain accommodative and the reduced uncertainty surrounding the election, although the latter
was tested by recent events at the U.S. Capitol.  With sustained low interest rates, money continued to pour into equites as if it were the only deal in town, resulting in a very strong lower quality rally in which the smallest of the small caps and
stocks with low returns on equity (“ROE”) or no earnings drove returns.  Our investment process emphasizes strong balance sheet companies that have earnings, good cash flow and sustainable valuations.  That focus is designed to deliver alpha over the
longer term but often underperforms this type of short-term market spike.  Accordingly, attribution shows that the Fund did not keep up with the high returns in the health care (primarily biotechnology, up 40%) and information technology sectors. 
Regarding information technology, we did very well in the semiconductor related industries but lagged many of the stocks that had the lower quality characteristics addressed above.

TCM SMALL CAP GROWTH FUND  

   

PERFORMANCE DISCUSSION (Unaudited) (Continued)

First Quarter 2021. Phenomenal equity flows continued to drive the equity markets to new highs in the first quarter as investors shrugged off riots in the
nation’s Capitol and instead focused on the potential return to normal as COVID-19 vaccines rolled out and favorable fiscal and monetary policy trends. In a welcome change for active managers with a quality bias, not all boats were lifted as
fundamentals and valuations became more important to returns. The year started out with a continuation of the fourth quarter’s focus on momentum and lower quality factors but that quickly reversed with the sobering effect of rising interest rates and
a steepening yield curve.  During the most recent earnings season, valuations and quality factors, such as ROE, earnings and cash flows, started to matter, and we saw some unwinding of low ROE and non-earner stocks.  Small cap stocks again bested
large cap stocks and value led the charge outperforming growth by a margin last seen over 20 years ago.  In this environment, and in a reversal of the prior quarter, growth at a reasonable price significantly bettered growth at any price.  The Fund
outperformed the benchmark by 3.21% based on strong stock selection in health care, industrials, financials, and information technology.  The effect of our sector weights was also positive due to an underweight to health care,
primarily biotechnology.

 

Top and Bottom Contributing Stocks.  The top and bottom five contributing stocks to absolute performance for the six months ended March 31, 2021 were:

 

 

Average

Contribution

Top Five

Weight (%)

to Return (%)

Western Alliance Bancorp

   

  (banking products and related services)

1.76

1.76

Onto Innovation, Inc.

   

  (semiconductor manufacturing tools)

1.74

1.59

Cohu, Inc. (semiconductor equipment)

1.47

1.37

TFI International, Inc. (provides freight

   

  transportation and logistics services)

2.02

1.25

The Shyft Group, Inc.

   

  (ecommerce delivery trucks)

1.65

1.14

   TCM SMALL CAP GROWTH FUND

   

 

PERFORMANCE DISCUSSION (Unaudited) (Continued)

 

Average

Contribution

Bottom Five

Weight (%)

to Return (%)

Emergent BioSolutions, Inc.

   

  (develops vaccines and therapeutics)

1.08

-0.46

Root, Inc. (app-based automobile insurance)

0.41

-0.45

Ontrak, Inc. (behavioral health evaluation services)

0.08

-0.44

Heron Therapeutics, Inc. (develops medical

   

  treatments for unmet medical needs)

0.21

-0.22

Kinsale Capital Group, Inc.

   

  (casualty and property insurance)

3.32

-0.19

The market has entered a phase where valuations and earnings will matter to investors.  The rising tide supported by an accommodative Fed, low interest rates and multiple stimulus actions by the
government, together with optimism for a return to a more normal economy, has generated historic interest in owning stocks, which in turn has driven valuations to high levels.  According to a study by Bank of America, more money has flowed into
equities in the last five months than the previous 12 years combined.  At some point, these valuations will need to be digested by growing earnings levels or the valuation multiples will shrink, and the stock prices will fall.  As the movie Jerry
Maquire kept reminding us, investors have high expectations for a strong economic recovery and will soon expect companies to “show me the money.”  Additional risks to future returns include the strong possibility for higher corporate tax rates (a hit
to earnings), higher individual tax rates that could change investor behavior, and unclear outcomes for infrastructure spending and timing.  We are seeing inflationary pressures throughout the supply chain, from commodities to labor, and those costs
will eventually get passed through resulting in higher inflation to the economy.  Depending on whether these costs are transitory or sustained, margin pressures will constrain valuation expansion going forward, thus a need to focus on companies that
can grow earnings and support current price/earnings multiples.

 

There is likely no magic bullet that addresses the risks to these market levels, but it is also not clear that those risks present an imminent threat to equity returns.  Additional stimulus
legislation, in some form, may pass Congress this year and the Fed appears committed to being “behind the curve” on inflationary pressures.  Those conditions can keep the porridge not too hot and not too cold for some time.  In the meantime, the
margin of error on stocks that don’t meet revenue or earnings expectations grows thinner and we remain focused on companies with visible growth characteristics and sustainable valuations.

TCM SMALL CAP GROWTH FUND  

   

PERFORMANCE DISCUSSION (Unaudited) (Continued)

Thank you for your continued confidence and trust in managing your assets.

 

Sincerely,

 

   

Richard J. Johnson

Jeff B. Curtis

Chief Investment Officer

President

This material must be preceded or accompanied by a current prospectus.  Please refer to the prospectus for important information about the Fund, including investment objectives, risks and expenses.

 

Past performance is no guarantee of future results.

 

This report reflects our views, opinions and portfolio holdings as of March 31, 2021, the end of the reporting period.  These views are subject to change at any time based on market and other conditions and we disclaim
any responsibility to update these views.  The views should not be relied on as investment advice or an indication of trading intent on behalf of the Fund.

 

Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.  Please refer to the Schedule of Investments for a complete listing of Fund holdings.

 

The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership according to the Frank Russell Company. Lipper Analytical Services, Inc. is an
independent mutual fund research and ranking agency.  Each Lipper average represents a universe of funds with similar investment objectives.  The Russell 2000® Growth
Index is an unmanaged index representing those Russell 2000® Index companies with higher price-to-book ratios and future projected earnings according to the Frank
Russell Company.  One cannot invest directly in an index.  The Global Industry Classification Standard (GICS®) was developed by MSCI, an independent provider of global
indices and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company. The GICS methodology has been widely accepted as an industry analysis framework for
investment research, portfolio management and asset allocation. Cash flow is the net amount of cash being transferred into and out of a business. Return on equity (ROE) is a measure of financial performance calculated by dividing net income by
shareholders’ equity. Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index.

 

Mutual fund investing involves risk, principal loss is possible.  The Fund invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility than large
capitalization companies. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater in emerging markets. Growth-oriented funds may underperform
when value investing is in favor.

 

Quasar Distributors, LLC, Distributor

   TCM SMALL CAP GROWTH FUND

   

 

VALUE OF $10,000 VS. RUSSELL 2000® GROWTH INDEX (Unaudited)

Average Annual Returns for the periods ended March 31, 2021:

 

 

One

Three

Five

Ten

Since Inception

 

Year

Year

Year

Year

(10/1/2004)

TCM Small Cap Growth Fund

86.90%

19.50%

21.10%

14.27%

12.32%

Russell 2000® Growth Index

90.20%

17.16%

18.61%

13.02%

11.06%

Lipper Small Cap Growth Average

92.77%

19.82%

19.91%

13.10%

11.39%

This chart illustrates the performance of a hypothetical $10,000 investment made on October 1, 2004, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares. The returns reflect fee waivers in effect. In the absence of such waivers, total return would be reduced. The chart assumes reinvestment of capital gains, dividends, and
return of capital, if applicable, for a fund and dividends for an index.

 

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares,
when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 536-3230.

TCM SMALL CAP GROWTH FUND  

   

FUND INFORMATION at March 31, 2021 (Unaudited)

Basic Fund Facts

 

Ticker Symbol

TCMSX

 

Inception Date

10/1/04

 

Total Net Assets

$475 million

 

Total Operating Expenses(1)

0.95%

 

(1)

Tygh Capital Management, Inc. (the “Advisor”) has contractually agreed to reduce its fees and/or pay the Fund’s expenses (excluding interest expense in connection with investment activities, taxes, Acquired
Fund Fees and Expenses and extraordinary expenses) in order to limit Total Annual Fund Operating Expenses to 0.95% of average net assets (the “Expense Cap”). The Expense Cap will remain in effect until at least January 31, 2022 and may
continue for an indefinite period thereafter as determined by the Board of Trustees (the “Board”). The Advisor is permitted to be reimbursed for fee reductions and/or expense payments made in the prior three years. This reimbursement may be
requested if the aggregate amount actually paid by the Fund toward operating expenses for such period (taking into account any reimbursement) does not exceed lesser of the Expense Cap in place at the time of waiver or at the time of
reimbursement. The Expense Cap may be terminated at any time by the Board upon 60 days’ notice to the Advisor, or by the Advisor with the consent of the Board. The total operating expenses represents what investors have paid as of the
prospectus dated January 28, 2021. Please see the Fund’s Financial Highlights in this report for the most recent expense ratio.

Top Ten Holdings (% of net assets)

 

Western Alliance Bancorp

   

3.1

%

The Shyft Group, Inc.

   

2.2

%

Kinsale Capital Group, Inc.

   

2.6

%

ICON PLC

   

2.1

%

TFI International, Inc. – ADR

   

2.3

%

Natera, Inc.

   

2.0

%

ASGN, Inc.

   

2.3

%

Progyny, Inc.

   

2.0

%

WillScot Mobile Mini Holdings Corp.

   

2.3

%

Skyline Champion Corp.

   

2.0

%

Sector Allocation (% of net assets)

 

(2)

Cash equivalents and other assets in excess of liabilities.

   TCM SMALL CAP GROWTH FUND

   

 

SCHEDULE OF INVESTMENTS at March 31, 2021 (Unaudited)

Shares

     

Value

 

COMMON STOCKS – 94.6%

     
       

Aerospace & Defense – 3.6%

     
 

199,876

 

Kratos Defense

     
     

  & Security

     
     

  Solutions, Inc.(1)

 

$

5,452,617

 
 

62,077

 

Mercury Systems, Inc.(1)

   

4,385,740

 
 

148,051

 

Spirit AeroSystems

       
     

  Holdings, Inc.

   

7,202,681

 
           

17,041,038

 
         

Auto Components – 1.0%

       
 

36,964

 

Fox Factory

       
     

  Holding Corp.(1)

   

4,696,646

 
               
         

Banks – 3.1%

       
 

153,416

 

Western Alliance

       
     

  Bancorp

   

14,488,607

 
               
         

Biotechnology – 6.8%

       
 

86,053

 

Amicus Therapeutics,

       
     

   Inc.(1)

   

850,204

 
 

40,518

 

Arrowhead

       
     

  Pharmaceuticals, Inc.(1)

   

2,686,749

 
 

18,349

 

Biohaven Pharmaceutical

       
     

  Holding Co. Ltd.(1)

   

1,254,154

 
 

21,465

 

Blueprint Medicines

       
     

   Corp.(1)

   

2,087,042

 
 

64,555

 

DermTech, Inc.(1)

   

3,278,748

 
 

23,261

 

Fate Therapeutics, Inc.(1)

   

1,917,869

 
 

31,946

 

FibroGen, Inc.(1)

   

1,108,846

 
 

48,213

 

Halozyme

       
     

  Therapeutics, Inc.(1)

   

2,010,000

 
 

39,627

 

Invitae Corp.(1)

   

1,514,148

 
 

14,528

 

Mirati

       
     

  Therapeutics, Inc.(1)

   

2,488,646

 
 

95,416

 

Natera, Inc.(1)

   

9,688,541

 
 

24,433

 

PTC Therapeutics, Inc.(1)

   

1,156,902

 
 

19,474

 

Ultragenyx

       
     

  Pharmaceutical, Inc.(1)

   

2,217,310

 
           

32,259,159

 
         

Building Products – 0.8%

       
 

41,618

 

Trex Co., Inc.(1)

   

3,809,712

 
               
         

Chemicals – 3.8%

       
 

496,587

 

Element Solutions, Inc.

   

9,082,576

 
 

88,321

 

Innospec, Inc.

   

9,069,684

 
           

18,152,260

 
         

Communications Equipment – 1.5%

       
 

442,875

 

Viavi Solutions, Inc.(1)

   

6,953,137

 
               
         

Construction & Engineering – 5.5%

       
 

101,264

 

Primoris Services Corp.

   

3,354,876

 
 

45,989

 

Quanta Services, Inc.

   

4,046,112

 
 

341,447

 

Sterling Construction

       
     

  Co., Inc.(1)

   

7,921,571

 
 

385,919

 

WillScot Mobile Mini

       
     

  Holdings Corp.(1)

   

10,709,252

 
           

26,031,811

 
         

Consumer Finance – 0.5%

       
 

11,913

 

LendingTree, Inc.(1)

   

2,537,469

 
               
         

Diversified Telecommunication – 0.8%

       
 

246,860

 

Ooma, Inc.(1)

   

3,912,731

 
               
         

Electronic Equipment,

       

   Instruments & Components – 2.8%

       
 

82,614

 

Fabrinet(1)

   

7,467,479

 
 

22,463

 

Littelfuse, Inc.

   

5,940,116

 
           

13,407,595

 
         

Health Care Equipment & Supplies – 4.5%

       
 

72,556

 

Avanos Medical, Inc.(1)

   

3,173,599

 
 

54,774

 

Establishment Labs

       
     

  Holdings, Inc.(1)

   

3,425,018

 
 

174,764

 

LeMaitre Vascular, Inc.

   

8,524,988

 
 

180,130

 

OraSure

       
     

  Technologies, Inc.(1)

   

2,102,117

 
 

80,723

 

Pulse Biosciences, Inc.(1)

   

1,911,521

 
 

144,276

 

Zynex, Inc.(1)

   

2,203,095

 
           

21,340,338

 
         

Health Care Providers & Services – 4.5%

       
 

34,495

 

Addus HomeCare Corp.(1)

   

3,607,832

 
 

23,087

 

LHC Group, Inc.(1)

   

4,414,465

 
 

27,219

 

ModivCare, Inc.(1)

   

4,031,679

 
 

212,661

 

Progyny, Inc.(1)

   

9,465,541

 
           

21,519,517

 

The accompanying notes are an integral part of these financial statements.

TCM SMALL CAP GROWTH FUND  

   

SCHEDULE OF INVESTMENTS at March 31, 2021 (Unaudited) (Continued)

Shares

     

Value

 

COMMON STOCKS – 94.6% (Continued)

     
       

Hotels, Restaurants & Leisure – 2.3%

     
 

58,330

 

Monarch Casino

     
     

  & Resort, Inc.(1)

 

$

3,535,965

 
 

93,897

 

Planet Fitness,

       
     

  Inc. – Class A(1)

   

7,258,238

 
           

10,794,203

 
             

Household Durables – 3.9%

       
 

40,031

 

Cavco Industries, Inc.(1)

   

9,031,394

 
 

208,952

 

Skyline Champion

       
     

   Corp.(1)

   

9,457,167

 
           

18,488,561

 
             

Insurance – 3.6%

       
 

39,827

 

HCI Group, Inc.

   

3,059,510

 
 

75,064

 

Kinsale Capital

       
     

  Group, Inc.

   

12,370,547

 
 

143,548

 

Root, Inc. – Class A(1)

   

1,827,366

 
           

17,257,423

 
             

Internet & Direct Marketing Retail – 2.1%

       
 

312,838

 

Liquidity Services, Inc.(1)

   

5,812,530

 
 

92,198

 

Revolve Group,

       
     

  Inc. – Class A(1)

   

4,142,456

 
           

9,954,986

 
             

IT Services – 4.8%

       
 

55,171

 

ExlService

       
     

  Holdings, Inc.(1)

   

4,974,217

 
 

136,192

 

Genpact Ltd.

   

5,831,742

 
 

56,683

 

MAXIMUS, Inc.

   

5,047,054

 
 

95,542

 

WNS Holdings

       
     

  Ltd. – ADR(1)

   

6,921,063

 
           

22,774,076

 
             

Life Sciences Tools & Services – 6.5%

       
 

7,873

 

Bio-Rad Laboratories,

       
     

  Inc. – Class A(1)

   

4,496,821

 
 

14,440

 

Bio-Techne Corp.

   

5,515,069

 
 

12,909

 

Charles River Laboratories

       
     

  International, Inc.(1)

   

3,741,416

 
 

51,612

 

ICON PLC(1)

   

10,135,049

 
 

76,930

 

NeoGenomics, Inc.(1)

   

3,710,334

 
 

15,942

 

Repligen Corp.(1)

   

3,099,284

 
           

30,697,973

 
             

Machinery – 4.7%

       
 

2,931

 

Alamo Group, Inc.

   

457,676

 
 

43,580

 

Chart Industries, Inc.(1)

   

6,203,613

 
 

97,802

 

Columbus

       
     

  McKinnon Corp.

   

5,160,033

 
 

280,530

 

The Shyft Group, Inc.

   

10,435,716

 
           

22,257,038

 
             

Media – 1.2%

       
 

26,521

 

Cardlytics, Inc.(1)

   

2,909,354

 
 

19,665

 

Nexstar Media

       
     

  Group, Inc.

   

2,761,556

 
           

5,670,910

 
             

Metals & Mining – 1.0%

       
 

43,711

 

Kaiser Aluminum Corp.

   

4,830,065

 
               
             

Pharmaceuticals – 0.9%

       
 

61,014

 

Pacira BioSciences,

       
     

   Inc.(1)

   

4,276,471

 
               
             

Professional Services – 3.9%

       
 

112,815

 

ASGN, Inc.(1)

   

10,767,064

 
 

31,379

 

CACI International,

       
     

   Inc.(1)

   

7,739,944

 
           

18,507,008

 
             

Road & Rail – 2.3%

       
 

148,792

 

TFI International,

       
     

  Inc. – ADR

   

11,123,690

 
               
             

Semiconductors &

       

   Semiconductor Equipment – 10.2%

       
 

185,518

 

Cohu, Inc.

   

7,762,073

 
 

70,065

 

Diodes, Inc.(1)

   

5,593,990

 
 

153,163

 

Kulicke & Soffa

       
     

  Industries, Inc.

   

7,521,835

 
 

100,408

 

Lattice

       
     

  Semiconductor Corp.(1)

   

4,520,368

 
 

43,386

 

MKS Instruments, Inc.

   

8,044,632

 
 

119,724

 

Onto Innovation, Inc.(1)

   

7,867,064

 
 

259,460

 

Tower

       
     

  Semiconductor Ltd.(1)

   

7,275,258

 
           

48,585,220

 
             

Software – 5.4%

       
 

106,094

 

8×8, Inc.(1)

   

3,441,689

 
 

124,338

 

Cognyte Software Ltd.(1)

   

3,457,840

 

The accompanying notes are an integral part of these financial statements.

   TCM SMALL CAP GROWTH FUND

   

SCHEDULE OF INVESTMENTS at March 31, 2021 (Unaudited) (Continued)

Shares

     

Value

 

COMMON STOCKS – 94.6% (Continued)

 
       

Software – 5.4% (Continued)

     
 

128,251

 

CommVault

     
     

  Systems, Inc.(1)

 

$

8,272,189

 
 

45,156

 

nCino, Inc.(1)

   

3,012,808

 
 

3,960

 

The Trade Desk,

       
     

  Inc. – Class A(1)

   

2,580,574

 
 

217,958

 

Vertex, Inc. – Class A(1)

   

4,790,717

 
           

25,555,817

 
             

Specialty Retail – 0.8%

       
 

20,610

 

Five Below, Inc.(1)

   

3,932,182

 
               
             

Textiles, Apparel & Luxury Goods – 1.8%

       
 

113,906

 

Canada Goose

       
     

  Holdings, Inc.(1)

   

4,470,811

 
 

39,675

 

Columbia Sportswear Co.

   

4,190,870

 
           

8,661,681

 
             

TOTAL COMMON STOCKS

       

   (Cost $296,972,085)

   

449,517,324

 
             

EXCHANGE-TRADED FUNDS – 1.7%

       
 

58,341

 

SPDR S&P Biotech ETF

   

7,913,957

 
             

TOTAL EXCHANGE-TRADED FUNDS

       

   (Cost $4,740,300)

   

7,913,957

 
             

SHORT-TERM INVESTMENTS – 3.7%

       
             

Money Market Funds – 3.7%

       
 

17,444,929

 

First American Treasury

       
     

  Obligations Fund –

       
     

  Class X, 0.030%(2)

   

17,444,929

 
             

TOTAL SHORT-TERM INVESTMENTS

       

   (Cost $17,444,929)

   

17,444,929

 
             

TOTAL INVESTMENTS

       

   IN SECURITIES – 100.0%

       

   (Cost $319,157,314)

   

474,876,210

 

Other Assets in Excess

       

   of Liabilities – 0.0%(3)

   

57,154

 

TOTAL NET ASSETS – 100.0%

 

$

474,933,364

 

ADR

American Depositary Receipt

(1)

Non-income producing security.

(2)

Annualized seven-day effective yield as of March 31, 2021.

(3)

Does not round to 0.1% or (0.1)%, as applicable.

The accompanying notes are an integral part of these financial statements.

TCM SMALL CAP GROWTH FUND  

   

STATEMENT OF ASSETS AND LIABILITIES at March 31, 2021 (Unaudited)

ASSETS

     

Investments in securities, at value (cost $319,157,314) (Note 2)

 

$

474,876,210

 

Receivables:

       

Fund shares sold

   

1,338,406

 

Dividends and interest

   

62,182

 

Prepaid expenses

   

19,516

 

Total assets

   

476,296,314

 

 

       

LIABILITIES

       

Payables:

       

Investment securities purchased

   

793,477

 

Fund shares redeemed

   

134,428

 

Investment advisory fees

   

322,736

 

Administration fees

   

33,701

 

Fund accounting fees

   

12,077

 

Audit fees

   

39,713

 

Custody fees

   

3,846

 

Trustee fees

   

4,819

 

Transfer agent fees

   

4,694

 

Chief Compliance Officer fees

   

1,983

 

Other accrued expenses

   

11,476

 

Total liabilities

   

1,362,950

 

NET ASSETS

 

$

474,933,364

 

Net Asset Value (unlimited shares authorized):

       

Net assets

 

$

474,933,364

 

Shares of beneficial interest issued and outstanding

   

10,066,645

 

Net asset value, offering and redemption price per share

 

$

47.18

 

 

       

COMPONENTS OF NET ASSETS

       

Paid-in capital

 

$

264,617,450

 

Total distributable (accumulated) earnings (losses)

   

210,315,914

 

Net assets

 

$

474,933,364

 

The accompanying notes are an integral part of these financial statements.

   TCM SMALL CAP GROWTH FUND

   

STATEMENT OF OPERATIONS For the Six Months Ended March 31, 2021 (Unaudited)

INVESTMENT INCOME

     

Income:

     

Dividends (net of foreign withholding tax of $10,102)

 

$

520,580

 

Interest

   

1,923

 

Total investment income

   

522,503

 

 

       

EXPENSES

       

Investment advisory fees

   

1,770,745

 

Administration fees

   

129,166

 

Fund accounting fees

   

43,206

 

Custody fees

   

15,951

 

Miscellaneous expenses

   

14,252

 

Audit fees

   

13,213

 

Registration fees

   

13,208

 

Transfer agent fees

   

11,995

 

Trustees fees

   

10,937

 

Chief Compliance Officer fees

   

6,483

 

Legal fees

   

4,904

 

Reports to shareholders

   

4,902

 

Insurance expenses

   

1,871

 

Interest expenses

   

1,081

 

Total expenses

   

2,041,914

 

Net investment income (loss)

   

(1,519,411

)

 

       

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

       

Net realized gain (loss) on investments

   

66,302,446

 

Change in net unrealized appreciation/depreciation on investments

   

62,913,232

 

Net realized and unrealized gain (loss) on investments

   

129,215,678

 

Net increase (decrease) in net

       

  assets resulting from operations

 

$

127,696,267

 

The accompanying notes are an integral part of these financial statements.

TCM SMALL CAP GROWTH FUND  

   

STATEMENTS OF CHANGES IN NET ASSETS

   

Six Months Ended

       
   

March 31, 2021

   

Year Ended

 
   

(Unaudited)

   

September 30, 2020

 

INCREASE (DECREASE) IN NET ASSETS FROM:

           
             

OPERATIONS

           

Net investment income (loss)

 

$

(1,519,411

)

 

$

(2,185,821

)

Net realized gain (loss) on investments(1)

   

66,302,446

     

28,893,434

 

Change in net unrealized appreciation/

               

  depreciation on investments

   

62,913,232

     

11,384,130

 

Net increase (decrease) in net assets

               

  resulting from operations

   

127,696,267

     

38,091,743

 
                 

DISTRIBUTIONS TO SHAREHOLDERS

               

Net distributions

   

(28,271,294

)

   

(6,335,246

)

                 

CAPITAL SHARE TRANSACTIONS

               

Net increase (decrease) in net assets derived

               

  from net change in outstanding shares(2)

   

6,433,881

     

(95,777,115

)

Total increase (decrease) in net assets

   

105,858,854

     

(64,020,618

)

                 

NET ASSETS

               

Beginning of period/year

   

369,074,510

     

433,095,128

 

End of period/year

 

$

474,933,364

   

$

369,074,510

 

(1)

Includes net realized gain on redemption-in-kind transactions of $6,288,583. See Note 7.

(2)

Summary of share transactions is as follows:

     

Six Months Ended

             
     

March 31, 2021

   

Year Ended

 
     

(Unaudited)

   

September 30, 2020

 
     

Shares

   

Value

   

Shares

   

Value

 
 

Shares sold

   

974,532

   

$

43,554,772

     

2,368,259

   

$

74,380,976

 
 

Shares issued in

                               
 

  reinvestment of

                               
 

  distributions

   

654,991

     

27,824,009

     

175,111

     

6,261,981

 
 

Shares redeemed(3)

   

(1,468,193

)

   

(64,944,900

)

   

(5,241,475

)

   

(176,420,072

)

 

Net increase (decrease)

   

161,330

   

$

6,433,881

     

(2,698,105

)

 

$

(95,777,115

)

(3)

During the year ended September 30, 2020, shares redeemed included redemption-in-kind transactions of 2,265,654 shares valued at $73,950,835. See Note 7.

The accompanying notes are an integral part of these financial statements.

   TCM SMALL CAP GROWTH FUND

   

FINANCIAL HIGHLIGHTS For a capital share outstanding
throughout each period/year

   

Six Months Ended

                               
   

March 31, 2021

   

Year Ended September 30,

 
   

(Unaudited)

   

2020

   

2019

   

2018

   

2017

   

2016

 

Net asset value,

                                   

  beginning of period/year

 

$

37.26

   

$

34.36

   

$

40.76

   

$

37.62

   

$

28.94

   

$

31.00

 
                                                 

INCOME FROM INVESTMENT OPERATIONS

 

Net investment

                                               

  income (loss)(1)

   

(0.15

)

   

(0.17

)

   

(0.12

)

   

(0.20

)

   

(0.21

)

   

(0.12

)

Net realized and unrealized

                                               

  gain (loss) on investments

   

12.99

     

3.58

     

(2.17

)

   

8.74

     

8.89

     

2.60

 

Total from

                                               

  investment operations

   

12.84

     

3.41

     

(2.29

)

   

8.54

     

8.68

     

2.48

 
                                                 

LESS DISTRIBUTIONS

 

From net realized gain

   

(2.92

)

   

(0.51

)

   

(4.11

)

   

(5.40

)

   

     

(4.54

)

Total distributions

   

(2.92

)

   

(0.51

)

   

(4.11

)

   

(5.40

)

   

     

(4.54

)

Paid-in capital from

                                               

  redemption fees(2)

   

     

     

     

     

     

0.00

(3) 

Net asset value,

                                               

  end of period/year

 

$

47.18

   

$

37.26

   

$

34.36

   

$

40.76

   

$

37.62

   

$

28.94

 

Total return

   

35.33

%(4)

   

9.99

%

   

(3.92

)%

   

26.09

%

   

29.99

%

   

8.42

%

                                                 

RATIOS / SUPPLEMENTAL DATA

 

Net assets, end of

                                               

  period/year (millions)

 

$

474.9

   

$

369.1

   

$

433.1

   

$

453.3

   

$

370.8

   

$

269.6

 

Portfolio turnover rate

   

44

%(4)

   

111

%

   

121

%

   

126

%

   

139

%

   

134

%

Ratio of expenses

                                               

  to average net assets

   

0.92

%(5)

   

0.94

%

   

0.93

%

   

0.93

%

   

0.95

%

   

0.95

%

Ratio of net investment gain

                                               

  (loss) to average net assets

   

(0.69

)%(5)

   

(0.53

)%

   

(0.37

)%

   

(0.55

)%

   

(0.62

)%

   

(0.44

)%

(1)

Calculated using average shares outstanding method.

(2)

Effective January 29, 2016 the 1.00% redemption fee was eliminated.

(3)

Does not round to $0.01 or $(0.01) per share, as applicable.

(4)

Not annualized.

(5)

Annualized.

The accompanying notes are an integral part of these financial statements.

TCM SMALL CAP GROWTH FUND  

   

NOTES TO FINANCIAL STATEMENTS – March 31, 2021 (Unaudited)

The Fund is a diversified series of shares of beneficial interest of Professionally Managed Portfolios (the “Trust”), which is registered under the Investment Company Act of 1940, as amended (the
“1940 Act”), as an open-end management investment company. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard
Codification Topic 946 “Financial Services – Investment Companies.” The Fund commenced operations on October 1, 2004.

 

The Fund’s investment objective is to seek long-term capital appreciation.

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States
of America (“U.S. GAAP”).

 

 

A.

Security Valuation. All equity securities, which may include Real Estate Investment Trusts (“REITs”), Business Development Companies (“BDCs”), and Master Limited
Partnerships (“MLPs”), that are traded on U.S. national or foreign securities exchanges, are valued either at the last reported sale price on the exchange on which the security is principally traded or the exchange’s official closing price,
if applicable. If, on a particular day, an exchange-traded security does not trade, then the mean between the most recent quoted bid and asked prices will be used. All equity securities which may include REITs, BDCs and MLPs that are not
traded on a listed exchange are valued at the last sale price in the over-the-counter market. If a non-exchange traded security does not trade on a particular day, then the mean between the last quoted closing bid and asked price will be
used.

     
   

Securities for which quotations are not readily available are valued at their respective fair values as determined in good faith by the Valuation Committee. When a security is “fair valued,” consideration is
given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the pricing procedures adopted by the Board. Fair value pricing is an inherently subjective process, and no single
standard exists for determining fair value. Different funds could reasonably arrive at different values for the same security. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from
the net asset value that would be calculated without regard to such considerations.

   TCM SMALL CAP GROWTH FUND

   

 

NOTES TO FINANCIAL STATEMENTS – March 31, 2021 (Unaudited) (Continued)

   

As described above, the Fund utilizes various methods to measure the fair value of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three
levels of inputs are:

   

Level 1 –

Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

       
   

Level 2 –

Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument
on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

       
   

Level 3 –

Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Fund’s own assumptions about the assumptions a market participant would use in
valuing the asset or liability, and would be based on the best information available.

   

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet
established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

     
   

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value
measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

     
   

The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2021. See the Schedule of Investments for industry breakouts.

       

Level 1

   

Level 2

   

Level 3

   

Total

 
   

Common Stocks

 

$

449,517,324

   

$

   

$

   

$

449,517,324

 
   

Exchange-Traded Funds

   

7,913,957

     

     

     

7,913,957

 
   

Short-Term Investments

   

17,444,929

     

     

     

17,444,929

 
   

Total Investments

                               
   

  in Securities

 

$

474,876,210

   

$

   

$

   

$

474,876,210

 

TCM SMALL CAP GROWTH FUND  

   

NOTES TO FINANCIAL STATEMENTS – March 31, 2021 (Unaudited) (Continued)

 

B.

Federal Income Taxes. The Fund has elected to be taxed as a “regulated investment company” and intends to distribute substantially all taxable income to its
shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Therefore, no provision for federal income taxes or excise taxes has been made.

     
   

In order to avoid imposition of the excise tax applicable to regulated investment companies, the Fund intends to declare as dividends in each calendar year at least 98.0% of its net investment income (earned
during the calendar year) and at least 98.2% of its net realized capital gains (earned during the twelve months ended October 31) plus undistributed amounts, if any, from prior years.

     
   

Net capital losses incurred after October 31 and net investment losses incurred after December 31, and within the taxable year are deemed to arise on the first business day of the Fund’s next taxable year. As
of the most recent fiscal year ended September 30, 2020, the Fund had late year losses of $1,583,298 and no post October losses.  As of the most recent fiscal year ended September 30, 2020, there were no capital loss carryovers for the Fund.

     
   

As of March 31, 2021, the Fund did not have any tax positions that did not meet the threshold of being sustained by the applicable tax authority. Generally, tax authorities can examine all the tax returns filed
for the last three years. The Fund identifies its major tax jurisdiction as U.S. Federal and the Commonwealth of Massachusetts; however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of
unrecognized tax benefits will change materially.

     
 

C.

Security Transactions and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales of securities are
determined on a specific identification basis. Discounts/premiums on debt securities purchased are accreted/amortized over the life of the respective securities using the effective interest method. Dividend income is recorded on the
ex-dividend date. Dividends received from REITs generally are comprised of ordinary income and capital gains and may include return of capital. Interest income is recorded on an accrual basis. Other non-cash dividends are recognized as
investment income at the fair value of the property received. Withholding taxes on foreign dividends are provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.

     
 

D.

Distributions to Shareholders. Distributions to shareholders from net investment income and net realized gains on securities for the Fund normally are declared and paid
on an annual basis. Distributions are recorded on the ex-dividend date.

   TCM SMALL CAP GROWTH FUND

   

 

NOTES TO FINANCIAL STATEMENTS – March 31, 2021 (Unaudited) (Continued)

 

E.

Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates.

     
 

F.

Share Valuation. The net asset value (“NAV”) per share of the Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash and other
assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding, rounded to the nearest cent. The Fund’s shares will not be priced on the days on which the New York Stock Exchange is closed for
trading. The offering and redemption price is equal to the Fund’s NAV per share. This fee was deducted from the redemption proceeds otherwise payable to the shareholder.  The Fund retained the fee charged as paid-in capital and such fees came
part of the Fund’s daily NAV calculation.

     
 

G.

Guarantees and Indemnifications. In the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses.
The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

     
 

H.

Illiquid Securities. Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a Board approved liquidity risk management program that requires, among other
things, that the Fund limit its illiquid investments that are assets to no more than 15% of net assets. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in
seven calendar days or less without the sale or disposition significantly changing the market value of the investment.

     
 

I.

Subsequent Events. In preparing these financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date the
financial statements were issued. The Fund has determined that there are no subsequent events that would need to be disclosed in the Fund’s financial statements.

NOTE 3 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS

The Advisor provides the Fund with investment management services under an Investment Advisory Agreement (the “Agreement”). Under the Agreement, the Advisor furnishes all investment advice, office
space, certain administrative services, and provides most of the personnel needed by the Fund. As compensation for its services, the Advisor is entitled to a monthly fee at the annual rate of 0.80% based

TCM SMALL CAP GROWTH FUND  

   

NOTES TO FINANCIAL STATEMENTS – March 31, 2021 (Unaudited) (Continued)

upon the average daily net assets of the Fund. The amount of investment advisory fees incurred by the Fund for the six months ended March 31, 2021 is disclosed in the Statement of Operations. The investment advisory
fees incurred are paid monthly to the Advisor, net of any monthly waiver or reimbursement discussed below.

 

The Advisor has contractually agreed to limit the Fund’s annual ratio of expenses to 0.95% of the Fund’s average daily net assets. The Operating Expenses Limitation Agreement has an indefinite
term and may be terminated at any time, and without payment of any penalty, by the Board, on behalf of the Fund, upon sixty (60) days’ written notice to the Advisor. Any fees waived and/or any Fund expenses absorbed by the Advisor pursuant to an
agreed upon expense cap shall be reimbursed by the Fund to the Advisor, if so requested by the Advisor, any time before the end of the third year following the period to which the fee waiver and/or expense absorption relates, provided the aggregate
amount of the Fund’s current operating expenses for such period does not exceed the lesser expense cap in place at the time of waiver or at the time of reimbursement. The Fund must pay its current ordinary operating expenses before the Advisor is
entitled to any reimbursements of fees and/or expenses. Any such reimbursement is also contingent upon Board review and approval. Amounts due from the Advisor are paid monthly to the Fund, if applicable. For the six months ended March 31, 2021, the
Advisor did not waive any fees or reimburse expenses.

 

U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”), serves as the Fund’s administrator, fund accountant and transfer agent. In those capacities
Fund Services maintains the Fund’s books and records, calculates the Fund’s NAV, prepares various federal and state regulatory filings, coordinates the payment of fund expenses, reviews expense accruals and prepares materials supplied to the Board.
The Officers of the Trust and the Chief Compliance Officer are also employees of Fund Services. Fees paid by the Fund to Fund Services for these services for the six months ended March 31, 2021 are disclosed in the Statement of Operations.

 

Quasar Distributors, LLC acts as the Fund’s principal underwriter in a continuous public offering of the Fund’s shares. U.S. Bank N.A. serves as custodian to the Fund. U.S. Bank N.A. is an
affiliate of Fund Services.

NOTE 4 – PURCHASES AND SALES OF SECURITIES

For the six months ended March 31, 2021, the cost of purchases and proceeds from the sales or maturities of securities, excluding short-term investments, were $185,980,583 and $218,493,238,
respectively.

 

There were no purchases or sales of long-term U.S. Government securities for the six months ended March 31, 2021.

   TCM SMALL CAP GROWTH FUND

   

 

NOTES TO FINANCIAL STATEMENTS – March 31, 2021 (Unaudited) (Continued)

NOTE 5 – DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the six months ended March 31, 2021 (estimated) and the year ended September 30, 2020, were as follows:

 

Distributions paid from:

 

March 31, 2021

   

September 30, 2020

 
 

Ordinary income

 

$

   

$

 
 

Long-term capital gain

   

25,719,474

     

6,335,246

 
 

Short-term capital gain

   

2,551,820

     

 

As of the most recent fiscal year ended September 30, 2020, the components of accumulated earnings (losses) on a tax basis were as follows:

 

Cost of investments(1)

 

$

281,876,700

 
 

Gross tax unrealized appreciation

   

99,531,822

 
 

Gross tax unrealized depreciation

   

(10,594,666

)

 

Net tax unrealized appreciation (depreciation)

   

88,937,156

 
 

Undistributed ordinary income (loss)

   

 
 

Undistributed long-term capital gain (loss)

   

23,537,083

 
 

Total distributable earnings

   

23,537,083

 
 

Other accumulated gain (loss)

   

(1,583,298

)

 

Total accumulated gain (loss)

 

$

110,890,941

 

(1)  The difference between book and tax-basis unrealized appreciation was attributable primarily to the treatment of wash sales.

 

NOTE 6 – CREDIT FACILITY

U.S. Bank N.A. has made available to the Fund a credit facility pursuant to a separate Loan and Security Agreement for temporary or extraordinary purposes. Loan activity for the six months ended
March 31, 2021, was as follows:

 

 

Maximum available credit

 

$

20,000,000

 
 

Largest amount outstanding on an individual day

   

9,508,000

 
 

Average daily loan outstanding

   

5,987,000

 
 

Credit facility outstanding as of March 31, 2021

   

 
 

Average interest rate

   

3.25

%

Interest expense for the six months ended March 31, 2021 is disclosed in the Statement of Operations, if applicable.

TCM SMALL CAP GROWTH FUND  

   

NOTES TO FINANCIAL STATEMENTS – March 31, 2021 (Unaudited) (Continued)

NOTE 7 – REDEMPTION-IN-KIND TRANSACTIONS

On June 26, 2020, one shareholder redeemed a total of $73,950,835 from the Fund as a redemption-in-kind transaction. In this transaction, the Fund distributed a proportionate amount of securities
in the Fund’s portfolio to the shareholder. Remaining shareholders in the Fund did not recognize any additional capital gains from the transactions.

NOTE 8 – (COVID-19) PANDEMIC

The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain. The ultimate economic fallout from the
pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Fund invests depends on future developments, including the
duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Fund’s investments, impair the Fund’s ability to satisfy redemption requests, and negatively impact the Fund’s performance.

   TCM SMALL CAP GROWTH FUND

   

EXPENSE EXAMPLE For the Six Months Ended March 31, 2021 (Unaudited)

As a shareholder of the Fund, you incur ongoing costs, including investment advisory fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars)
of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (10/1/20 – 3/31/21).

 

Actual Expenses

 

The first line of the following table provides information about actual account values based on actual returns and actual expenses. Although the Fund charges no sales load or transaction fees, you
will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by Fund Services, the Fund’s transfer agent. If you request that a redemption be made by wire transfer, currently, a $15.00 fee is
charged by the Fund’s transfer agent. To the extent the Fund invests in shares of other investment companies as part of its investment strategy, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying
funds in which the Fund invests in addition to the expenses of the Fund. Actual expenses of the underlying funds are expected to vary among the various underlying funds. These expenses are not included in the example. The example includes, but is not
limited to, investment advisory fees, fund accounting, fund administration, custody and transfer agent fees. However, the example does not include portfolio trading commissions and related expenses, interest expense or dividends on short positions
taken by the Fund. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.

 

Hypothetical Example for Comparison Purposes

 

The second line of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5%
per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare
the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

TCM SMALL CAP GROWTH FUND  

   

EXPENSE EXAMPLE For the Six Months Ended March 31, 2021 (Unaudited) (Continued)

 

Beginning

Ending

Expenses Paid

 

Account Value

Account Value

During the Period

 

10/1/20

3/31/21

10/1/20 – 3/31/21(1)

Actual

$1,000.00

$1,353.30

$5.40

Hypothetical (5% return

     

  before expenses)

  1,000.00

  1,020.34

  4.63

(1)

Expenses are equal to the Fund’s annualized expense ratio for the most recent six-month period of 0.92% multiplied by the average account value over the period multiplied by 182/365 (to reflect one-half year
period).

   TCM SMALL CAP GROWTH FUND

   

INFORMATION ABOUT PROXY VOTING (Unaudited)

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling (800)
536-3230 or by accessing the Fund’s website at www.tyghcap.com/mutual-fund. Furthermore, you can obtain the description on the SEC’s website at www.sec.gov.

 

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-months ending June 30 is available without charge, upon request, by calling (800)
536-3230 or by accessing the SEC’s website at www.sec.gov.

INFORMATION ABOUT THE PORTFOLIO HOLDINGS (Unaudited)

The Fund’s quarterly holdings for the most recent fiscal year can be obtained by accessing the Fund’s website at www.tyghcap.com/mutual-fund. The Fund files its complete schedule of portfolio
holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Fund’s Form N-PORT is available on the SEC’s website at www.sec.gov. The Fund’s Form N-PORT may also be obtained by calling
(800) 536-3230.

 

INFORMATION ABOUT HOUSEHOLDING (Unaudited)

In an effort to decrease costs, the Fund will reduce the number of duplicate prospectuses, proxy statements, and annual and semi-annual reports that you receive by sending only one copy of each to
those addresses shown by two or more accounts and to shareholder the Transfer Agent reasonably believes are from the same family or household. Please call the Fund’s transfer agent toll free at (800) 536-3230 (or contact your financial institution)
to request individual copies of these documents. The Fund will begin sending individual copies 30 days after receiving your request. This policy does not apply to account statements.  In addition, see the Important Notice on the cover page for
changes to the distribution of the annual and semi-annual reports effective January 1, 2021.

 

INFORMATION ABOUT THE FUND’S TRUSTEES (Unaudited)

The Statement of Additional Information (“SAI”) includes additional information about the Fund’s Trustees and is available without charge, upon request, by calling (800) 536-3230. Furthermore, you
can obtain the SAI on the SEC’s website at www.sec.gov or the Fund’s website at www.tyghcap.com/mutual-fund.

TCM SMALL CAP GROWTH FUND  

   

The Fund collects non-public information about you from the following sources:

 

 

Information we receive about you on applications or other forms;

     
 

Information you give us orally; and

     
 

Information about your transactions with us or others.

We do not disclose any non-public personal information about our shareholders or former shareholders without the shareholder’s authorization, except as permitted by law or in
response to inquiries from governmental authorities. We may share information with affiliated parties and unaffiliated third parties with whom we have contracts for servicing the Fund. We will provide unaffiliated third parties with only the
information necessary to carry out their assigned responsibility. We maintain physical, electronic, and procedural safeguards to protect your non-public personal information and require third parties to treat your non-public information with the same
high degree of confidentiality.

 

In the event that you hold shares of the Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank or trust company, the privacy policy of your
financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.

Investment Advisor

Tygh Capital Management, Inc.

1211 SW Fifth Avenue, Suite 2100

Portland, Oregon 97204

Independent Registered Public Accounting Firm

Tait, Weller & Baker LLP

Two Liberty Place

50 South 16th Street, 29th Floor

Philadelphia, Pennsylvania 19102

Legal Counsel

Sullivan & Worchester, LLP

1633 Broadway, 32nd Floor

New York, New York 10019

Custodian

U.S. Bank N.A.

Custody Operations

1555 North RiverCenter Drive, Suite 302

Milwaukee, Wisconsin 53212

Transfer Agent, Fund Accountant

and Fund Administrator

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

(800) 536-3230

Distributor

Quasar Distributors, LLC

111 East Kilbourn Avenue, Suite 1250

Milwaukee, Wisconsin 53202

TCM Small Cap Growth Fund

Symbol – TCMSX

CUSIP – 742935455

(b)  Not applicable.

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Schedule of Investments.

(a) Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed‑End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

The registrant has adopted a nominating committee charter that contains the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.  There have been no
material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees for the period.

Item 11. Controls and Procedures.

(a)

The Registrant’s Principal Executive Officer and Principal Financial Officer have reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act
of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934.  Based on their review, such officers
have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others
within the Registrant and by the Registrant’s service provider.

(b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this
report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 13. Exhibits.

(a)

(1) Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not

applicable for semi-annual reports.

(3) Any written solicitation to purchase securities under Rule 23c‑1 under the Act sent or given during the period covered by the report
by or on behalf of the registrant to 10 or more persons. 
Not applicable to open-end investment companies.

(4) Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public
accountant for the period covered by this report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)  Professionally Managed Portfolios 

By (Signature and Title)  /s/ Elaine E. Richards

 Elaine E. Richards, President/Principal Executive Officer

Date   June 9, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ Elaine E. Richards

  Elaine E. Richards, President/Principal Executive Officer

Date   June 9, 2021

By (Signature and Title)* /s/ Aaron J. Perkovich

  Aaron J. Perkovich, Treasurer/Principal Financial Officer

Date   June 8, 2021

*

Print the name and title of each signing officer under his or her signature.