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 811-07655
Driehaus Mutual Funds
(Exact name of registrant as specified in charter)
25 East Erie Street
Chicago, IL 60611
(Address of principal executive offices) (Zip code)
Janet L. McWilliams
Driehaus Capital Management LLC
25 East Erie Street
Chicago, IL 60611
(Name and address of agent for service)
Registrant's telephone number, including area code: 312-587-3800
Date of fiscal year end: December 31
Date of reporting period: June 30, 2022
Item 1. Reports to Stockholders.
| (a) | The Report to Shareholders is attached herewith. |
##External*Document*Content##3050
0
Table of Contents
PROXY VOTING POLICIES
AND PROCEDURES AND PROXY VOTING RECORD
A description of
the Funds’ policies and procedures with respect to the voting of proxies relating to the Funds’ portfolio securities is available without charge, upon request, by calling 1-800-560-6111. This information
is also available on the Funds’ website at www.driehaus.com/fund-resources.
Information
regarding how the Funds voted proxies related to portfolio securities during the 12-month period ended June 30, 2022 is available without charge, upon request, by calling 1-800-560-6111. This information is also
available on the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
HOW TO OBTAIN QUARTERLY
PORTFOLIO HOLDINGS
Each Fund files a
complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form NPORT. The Funds’ Form NPORT is available electronically on the SEC’s website at
http://www.sec.gov. Each Fund’s complete schedule of portfolio holdings is also available on the Fund’s website at www.driehaus.com/fund-resources.
Driehaus Emerging
Markets Growth Fund
Performance Overview
(unaudited)
The performance summarized below is historical and does not represent future results. Investment returns and principal value vary,
and you may have a gain or loss when you sell shares. Performance data presented measures the change in the value of an investment
in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change. The
table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The graph compares the results of a $10,000 investment (minimum investment) in the Fund over the last 10 fiscal year periods, with
all dividends and capital gains reinvested, with the indicated indices (and dividends reinvested) for the same period.
The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Principal value and investment returns will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Performance data represents the rate that an investor would have earned (or lost), during the given periods, on
an investment in the Fund (assuming reinvestment of all dividends and distributions). Average annual total return reflects annualized change. Since Fund performance is subject to change after the period-end, please
call (800) 560-6111 or visit www.driehaus.com/performance for more current performance information. The gross expense ratios for the Investor Class and Institutional Class are 1.30% and 1.08%, respectively, as of the
most recent prospectus dated April 30, 2022, as supplemented June 3, 2022.
| Average Annual Total Returns as of 6/30/22 | 1 Year | 3 Years | 5 Years | 10 Years |
| Driehaus Emerging Markets Growth Fund Investor Class (DREGX) | -25.26% | 3.29% | 4.84% | 5.35% |
| Driehaus Emerging Markets Growth Fund Institutional Class (DIEMX)1 | -25.09% | 3.52% | 5.06% | 5.45% |
| MSCI Emerging Markets Index-N2 | -25.29% | 0.57% | 2.18% | 3.06% |
| MSCI Emerging Markets Growth Index-N3 | -31.17% | 1.88% | 2.92% | 4.54% |
| 1 | The returns for the periods prior to July 17, 2017 (institutional share class inception date) include the performance of the investor share class. |
| 2 | The Morgan Stanley Capital International Emerging Markets Index-Net (MSCI Emerging Markets Index-N) is a market capitalization-weighted index designed to measure equity market performance in emerging markets. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc. |
| 3 | The Morgan Stanley Capital International Emerging Markets Growth Index-Net (MSCI Emerging Markets Growth Index-N) is a subset of the MSCI Emerging Markets Index and includes only the MSCI Emerging Markets Index stocks which are categorized as growth stocks. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc. |
1
Driehaus Emerging
Markets Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
2
Driehaus Emerging
Markets Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to
Financial Statements are an integral part of this Schedule.
3
Driehaus Emerging
Markets Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
| Security Type | Percent of Net Assets | |
| Common Stocks | 90.97% | |
| Short Term Investments | 8.10% | |
| Total Investments | 99.07% | |
| Other Assets In Excess of Liabilities | 0.93% | |
| Net Assets | 100.00% |
| Regional Weightings | Percent of Net Assets | |
| Far East | 64.60% | |
| North America | 18.58% | |
| Middle East | 6.02% | |
| South America | 5.12% | |
| Africa | 2.65% | |
| Europe | 2.10% |
Notes to Financial Statements are
an integral part of this Schedule.
4
Driehaus Emerging
Markets Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
5
Driehaus Emerging
Markets Small Cap Growth Fund
Performance Overview
(unaudited)
The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented
measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change. The table does not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund over the last 10 fiscal year
periods (which includes performance of the Predecessor Limited Partnership's inception),with all dividends and capital gains reinvested, with the indicated indices (and dividends reinvested) for the same
period.
The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Principal value and investment returns will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Performance data represents the rate that an investor would have earned (or lost), during the given periods, on
an investment in the Fund (assuming reinvestment of all dividends and distributions). Average annual total return reflects annualized change. Since Fund performance is subject to change after the period-end, please
call (800) 560-6111 or visit www.driehaus.com/performance for more current performance information. The gross expense ratio is 1.37% as of the most recent prospectus dated April 30, 2022, as supplemented June 3,
2022.
| Average Annual Total Returns as of 6/30/22 | 1 Year | 3 Years | 5 Years | 10 Years |
| Driehaus Emerging Markets Small Cap Growth Fund (DRESX)1 | -19.77% | 11.57% | 8.01% | 6.81% |
| MSCI Emerging Markets Small Cap Index-N2 | -20.72% | 5.78% | 3.48% | 4.31% |
| MSCI Emerging Markets Small Cap Growth Index-N3 | -23.61% | 6.82% | 3.53% | 3.90% |
| 1 | The returns reflect fee waivers and/or reimbursements without which performance would have been lower. |
| 2 | The Morgan Stanley Capital International Emerging Markets Small Cap Index-Net (MSCI Emerging Markets Small Cap Index-N) is a market capitalization-weighted index designed to measure equity market performance of small cap stocks in emerging markets. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc. |
| 3 | The Morgan Stanley Capital International Emerging Markets Small Cap Growth Index-Net (MSCI Emerging Markets Small Cap Growth Index-N) is a market capitalization-weighted index designed to measure equity market performance of small cap growth stocks in emerging markets. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc. |
6
Driehaus Emerging
Markets Small Cap Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
7
Driehaus Emerging
Markets Small Cap Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes
to Financial Statements are an integral part of this Schedule.
8
Driehaus Emerging
Markets Small Cap Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
| Security Type | Percent of Net Assets | |
| Common Stocks | 90.08% | |
| Preferred Stocks | 1.06% | |
| Short Term Investments | 5.80% | |
| Total Investments | 96.94% | |
| Other Assets In Excess of Liabilities | 3.06% | |
| Net Assets | 100.00% |
| Regional Weightings | Percent of Net Assets | |
| Far East | 70.83% | |
| North America | 10.12% | |
| South America | 8.82% | |
| Middle East | 5.57% | |
| Africa | 1.05% | |
| Europe | 0.55% |
Notes to Financial Statements are
an integral part of this Schedule.
9
Driehaus Emerging
Markets Small Cap Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
10
Driehaus Emerging
Markets Opportunities Fund
Performance Overview
(unaudited)
The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented
measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change. The table does not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund since April 10, 2017 (the date of
the fund's inception),with all dividends and capital gains reinvested, with the indicated indices (and dividends reinvested) for the same period.
The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Principal value and investment returns will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Performance data represents the rate that an investor would have earned (or lost), during the given periods, on
an investment in the Fund (assuming reinvestment of all dividends and distributions). Average annual total return reflects annualized change. Since Fund performance is subject to change after the period-end, please
call (800) 560-6111 or visit www.driehaus.com/performance for more current performance information. The gross expense ratio is 1.32% as of the most recent prospectus dated April 30, 2022, as supplemented June 3,
2022.
| Average Annual Total Returns as of 6/30/22 | 1 Year | 3 Years | 5 Years | Since Inception (4/10/17 - 6/30/22) |
| Driehaus Emerging Markets Opportunities Fund (DMAGX)1 | -24.05% | 4.12% | 4.94% | 5.94% |
| MSCI Emerging Markets Index-N2 | -25.29% | 0.57% | 2.18% | 3.21% |
| MSCI EM/JP Morgan GBI Blended Index3 | -22.09% | -2.40% | 0.14% | 1.06% |
| 1 | Prior to January 29, 2020, the Driehaus Emerging Markets Opportunities Fund was known as the Driehaus Multi-Asset Growth Economies Fund. The returns for the period reflect fee waivers and/or reimbursements without which performance would have been lower. |
| 2 | The Morgan Stanley Capital International Emerging Markets Index-Net (MSCI Emerging Markets Index-N) is a market capitalization-weighted index designed to measure equity market performance in emerging markets. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc. |
| 3 | The MSCI EM/JPMorgan Government Bond Index Blended Index is an equally weighted benchmark comprised of 50 percent by the Morgan Stanley Capital International Emerging Markets Index-Net (MSCI EM) and 50 percent by the JPMorgan Global Bond Index Emerging Markets Global Diversified (JPMorgan GBI). The MSCI EM is a market capitalization-weighted index designed to measure equity market performance in emerging markets and the JPMorgan GBI tracks debt instruments in the emerging markets. Source: Morgan Stanley Capital International Inc. and JPMorgan. |
11
Driehaus Emerging
Markets Opportunities Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
12
Driehaus Emerging
Markets Opportunities Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
13
Driehaus Emerging
Markets Opportunities Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
14
Driehaus Emerging
Markets Opportunities Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
15
Driehaus International
Small Cap Growth Fund
Performance Overview
(unaudited)
The performance summarized below is historical and does not represent future results. Investment returns and principal value vary,
and you may have a gain or loss when you sell shares. Performance data presented measures the change in the value of an investment
in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change. The
table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The graph compares the results of a $10,000 investment (minimum investment) in the Fund over the last 10 fiscal year periods, with
all dividends and capital gains reinvested, with the indicated index (and dividends reinvested) for the same period.
The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Principal value and investment returns will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Performance data represents the rate that an investor would have earned (or lost), during the given periods, on
an investment in the Fund (assuming reinvestment of all dividends and distributions). Average annual total return reflects annualized change. Since Fund performance is subject to change after the period-end, please
call (800) 560-6111 or visit www.driehaus.com/performance for more current performance information. The gross expense ratio is 1.15% as of the most recent prospectus dated April 30, 2022, as supplemented June 3,
2022.
| Average Annual Total Returns as of 6/30/22 | 1 Year | 3 Years | 5 Years | 10 Years |
| Driehaus International Small Cap Growth Fund (DRIOX) | -28.59% | 5.34% | 5.56% | 8.81% |
| MSCI AC World ex USA Small Cap Growth Index-N1 | -27.34% | 2.84% | 2.97% | 6.31% |
| 1 | The Morgan Stanley Capital International All Country World ex USA Small Cap Growth Index-Net (MSCI AC World ex USA Small Cap Growth Index-N) is a market capitalization-weighted index designed to measure equity market performance in global developed markets and emerging markets, excluding the U.S., and is composed of stocks which are categorized as small capitalization growth stocks. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc. |
16
Driehaus International
Small Cap Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
17
Driehaus International
Small Cap Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
18
Driehaus International
Small Cap Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
19
Driehaus Micro Cap
Growth Fund
Performance Overview
(unaudited)
The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented
measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change. The table does not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund over the last 10 fiscal year
periods (which includes performance of the Predecessor Limited Partnership),with all dividends and capital gains reinvested, with the indicated index (and dividends reinvested) for the same period.
The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Principal value and investment returns will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Performance data represents the rate that an investor would have earned (or lost), during the given periods, on
an investment in the Fund (assuming reinvestment of all dividends and distributions). Average annual total return reflects annualized change. Since Fund performance is subject to change after the period-end, please
call (800) 560-6111 or visit www.driehaus.com/performance for more current performance information. The gross expense ratio is 1.38% as of the most recent prospectus dated April 30, 2022, as supplemented June 3,
2022.
| Fund Only | Including Predecessor Limited Partnership | |||||
| Average Annual Total Returns as of 6/30/22 | 1 Year | 3 Years | 5 Years | Since Inception (11/18/13 - 6/30/22) | 10 Years | |
| Driehaus Micro Cap Growth Fund (DMCRX)1 | -37.02% | 13.87% | 17.50% | 17.14% | 18.65% | |
| Russell Microcap® Growth Index2 | -43.98% | 0.07% | 1.58% | 7.48% | 7.02% | |
20
Driehaus Micro Cap
Growth Fund
Performance Overview
(unaudited) — (Continued)
| 1 | The Driehaus Micro Cap Growth Fund (the “Fund”) performance shown above includes the performance of the Driehaus Micro Cap Fund, L.P. (the “Predecessor Limited Partnership”), one of the Fund’s predecessors, for the periods before the Fund’s registration statement became effective. The Predecessor Limited Partnership, which was established on July 1, 1996, was managed with substantially the same investment objective, policies and philosophies as are followed by the Fund. The Fund succeeded to the Predecessor Limited Partnership’s assets together with the assets of the Driehaus Institutional Micro Cap Fund, L.P. on November 18, 2013. The Predecessor Limited Partnership was not registered under the Investment Company Act of 1940, as amended (“1940 Act”), and thus was not subject to certain investment and operational restrictions that are imposed by the 1940 Act. If the Predecessor Limited Partnership had been registered under the 1940 Act, its performance may have been adversely affected. The Predecessor Limited Partnership’s performance has been restated to reflect estimated expenses of the Fund. The returns for periods prior to November 18, 2016, reflect fee waivers and/or reimbursements without which performance would have been lower. |
| 2 | The Russell Microcap® Growth Index measures the performance of the microcap growth segment of the U.S. equity market. It includes those Russell Microcap companies that are considered more growth oriented relative to the overall market as defined by FTSE Russell's leading style methodology. The Russell Microcap® Growth Index is constructed to provide a comprehensive and unbiased barometer for the microcap growth segment of the market. Data is calculated with net dividend reinvestment. Source: FTSE Russell. |
21
Driehaus Micro Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
22
Driehaus Micro Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
23
Driehaus Micro Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
24
Driehaus Micro Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
25
Driehaus Small Cap
Growth Fund
Performance Overview
(unaudited)
The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented
measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change. The table does not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund over the last 10 fiscal year
periods (which includes performance of the Predecessor Partnership),with all dividends and capital gains reinvested, with the indicated index (and dividends reinvested) for the same period.
The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Principal value and investment returns will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Performance data represents the rate that an investor would have earned (or lost), during the given periods, on
an investment in the Fund (assuming reinvestment of all dividends and distributions). Average annual total return reflects annualized change. Since Fund performance is subject to change after the period-end, please
call (800) 560-6111 or visit www.driehaus.com/performance for more current performance information. The gross expense ratios for the Investor Class and Institutional Class are 0.99% and 0.73%, respectively, as of the
most recent prospectus dated April 30, 2022, as supplemented June 3, 2022.
| Fund Only | Including Predecessor Limited Partnership | |||||
| Average Annual Total Returns as of 6/30/22 | 1 Year | 3 Years | Since Inception (8/21/17 - 6/30/22) | 5 Years | 10 Years | |
| Driehaus Small Cap Growth Fund Investor Class (DVSMX)1 | -33.03% | 9.54% | 17.08% | 15.78% | 16.29% | |
| Driehaus Small Cap Growth Fund Institutional Class (DNSMX)1 | -32.88% | 9.85% | 17.40% | 16.08% | 16.44% | |
| Russell 2000® Growth Index2 | -33.43% | 1.40% | 5.66% | 4.80% | 9.30% | |
26
Driehaus Small Cap
Growth Fund
Performance Overview
(unaudited) — (Continued)
| 1 | The Driehaus Small Cap Growth Fund (“the Fund”) performance shown above includes the performance of the Driehaus Institutional Small Cap, L.P. (the “Predecessor Partnership”), one of the Fund’s predecessors, for the periods before the Fund’s registration statement became effective. The Predecessor Partnership was managed by the same investment team with substantially the same investment objective, policies and philosophies as are followed by the Fund. The Fund succeeded to the Predecessor Partnership’s assets together with the assets of the Driehaus Institutional Small Cap Recovery Fund, L.P., Driehaus Small Cap Recovery Fund, L.P. and Driehaus Small Cap Investors, L.P. (together, the “Limited Partnerships”) on August 21, 2017. The investment portfolios of the Limited Partnerships were identical and therefore had similar performance. The performance of the Predecessor Partnership is shown here because it has been in operation the longest. The Predecessor Partnership was not registered under the Investment Company Act of 1940, as amended (“1940 Act”), and thus was not subject to certain investment and operational restrictions that are imposed by the 1940 Act. If the Predecessor Partnership had been registered under the 1940 Act, its performance may have been adversely affected. The Predecessor Partnership’s performance has not been restated to reflect estimated expenses applicable to each class of shares of the Fund. The returns reflect fee waivers and/or reimbursements without which performance would have been lower. |
| 2 | The Russell 2000® Growth Index measures the performance of the small cap growth segment of the US Equity universe. It includes those Russell 2000® companies with higher price-value ratio and higher forecasted growth values. The Russell 2000® Index is constructed to provide a comprehensive and unbiased barometer for the small cap growth segment of the market. Data is calculated with net dividend reinvestment. Source: FTSE Russell. |
27
Driehaus Small Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
28
Driehaus Small Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
29
Driehaus Small Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
30
Driehaus Small Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
31
Driehaus Small/Mid Cap
Growth Fund
Performance Overview
(unaudited)
The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented
measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change. The table does not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund since May 1, 2020 (the date of the
fund's inception),with all dividends and capital gains reinvested, with the indicated index (and dividends reinvested) for the same period.
The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Principal value and investment returns will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Performance data represents the rate that an investor would have earned (or lost), during the given periods, on
an investment in the Fund (assuming reinvestment of all dividends and distributions). Average annual total return reflects annualized change. Since Fund performance is subject to change after the period-end, please
call (800) 560-6111 or visit www.driehaus.com/performance for more current performance information. The gross expense ratio is 1.31% as of the most recent prospectus dated April 30, 2022, as supplemented June 3,
2022.
| Average Annual Total Returns as of 6/30/22 | 1 Year | Since Inception (5/1/20 - 6/30/22) |
| Driehaus Small/Mid Cap Growth Fund (DSMDX)1 | -29.43% | 16.48% |
| Russell 2500® Growth Index2 | -31.81% | 7.45% |
| 1 | The returns for the period reflect fee waivers and/or reimbursements without which performance would have been lower. |
| 2 | The Russell 2500® Growth Index measures the performance of the small to midcap growth segment of the US Equity universe. It measures the performance of those Russell 2500® Index companies with higher growth earning potential as defined by FTSE Russell’s leading style methodology. The Russell 2500® Growth Index is constructed to provide a comprehensive and unbiased barometer for the small to midcap growth segment of the market. Data is calculated with net dividend reinvestment. Source: FTSE Russell. |
32
Driehaus Small/Mid Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
33
Driehaus Small/Mid Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
34
Driehaus Small/Mid Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
35
Driehaus Small/Mid Cap
Growth Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
36
Driehaus Event Driven
Fund
Performance Overview
(unaudited)
The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented
measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change. The table does not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund since August 26, 2013 (the date of
the fund's inception),with all dividends and capital gains reinvested, with the indicated indices (and dividends reinvested) for the same period.
The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Principal value and investment returns will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Performance data represents the rate that an investor would have earned (or lost), during the given periods, on
an investment in the Fund (assuming reinvestment of all dividends and distributions). Average annual total return reflects annualized change. Since Fund performance is subject to change after the period-end, please
call (800) 560-6111 or visit www.driehaus.com/performance for more current performance information. The gross expense ratio is 1.50% as of the most recent prospectus dated April 30, 2022, as supplemented June 3,
2022.
| Average Annual Total Returns as of 6/30/22 | 1 Year | 3 Years | 5 Years | Since Inception (8/26/13 - 6/30/22) |
| Driehaus Event Driven Fund (DEVDX)1 | -9.77% | 6.76% | 6.44% | 5.10% |
| S&P 500 Index2 | -10.62% | 10.60% | 11.31% | 11.88% |
| FTSE 3-Month T-Bill Index3 | 0.19% | 0.61% | 1.09% | 0.69% |
| 1 | The returns for the periods prior to March 1, 2014, reflect fee waivers and/or reimbursements without which performance would have been lower. |
| 2 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity and industry group. It is a market-weighted index, with each stock’s weight in the index proportionate to its market value. |
| 3 | The FTSE 3-Month T-Bill Index is designed to mirror the performance of the 3-month U.S. Treasury Bill. The FTSE 3-Month T-Bill Index is unmanaged and its returns reflect reinvestment of all distributions and changes in market prices. |
37
Driehaus Event Driven
Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
38
Driehaus Event Driven
Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
39
Driehaus Event Driven
Fund
Schedule of
Investments
June 30, 2022
(unaudited)
Notes to Financial
Statements are an integral part of this Schedule.
40
Driehaus Event Driven
Fund
Schedule of
Investments
June 30, 2022
(unaudited)
| 7 | Foreign security denominated and/or traded in U.S. dollars. |
| 8 | Special Purpose Acquisition Company (SPAC). |
| 9 | Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income. |
| 10 | 7 day current yield as of June 30, 2022 is disclosed. |
| ^ | Security valued at fair value as determined in good faith by the Adviser, in accordance with procedures established by, and under the general supervision of, the Trust’s Board of Trustees. The security is valued using significant unobservable inputs. |
| * | Non-income producing security. |
Percentages are stated as
a percent of net assets.
| Security Type | Percent of Net Assets | |
| Bank Loans | 0.43% | |
| Convertible Corporate Bonds | 1.55% | |
| Corporate Bonds | 23.84% | |
| Foreign Issuer Bonds | 0.36% | |
| Purchased Call Options | 0.02% | |
| Common Stocks | 54.77% | |
| Private Investment in Public Equity (PIPES) | 0.72% | |
| Preferred Stocks | 2.00% | |
| Warrants | 0.15% | |
| Short Term Investments | 12.50% | |
| Total Investments | 96.34% | |
| Other Assets In Excess of Liabilities | 3.66% | |
| Net Assets | 100.00% |
Notes to Financial
Statements are an integral part of this Schedule.
41
Driehaus Event Driven
Fund
Schedule of
Investments
June 30, 2022
(unaudited)
TOTAL RETURN SWAPS
OTC SWAP CONTRACTS
| Pay Rate Index/Pay Rate | Receive Rate/Receive Rate Index | Maturity Date | Counterparty | Currency | Notional Amount | Value | Upfront Premiums Paid/ (Received) | Unrealized Appreciation (Depreciation) | ||
| GSCBGDEN Index (Monthly) | Financing Index: 1-Month ICE LIBOR USD - 0.5% | 10/20/2022 | GSC | USD | 129,402 | $(144,659) | $— | $(144,659) | ||
| $(144,659) | $— | $(144,659) | ||||||||
| GSC - Goldman Sachs International | ||||||||||
Notes to Financial Statements are
an integral part of this Schedule.
42
Driehaus Mutual Funds
Statements of Assets and
Liabilities
June 30, 2022
(unaudited)
| Driehaus Emerging Markets Growth Fund | Driehaus Emerging Markets Small Cap Growth Fund | ||
| ASSETS: | |||
| Investments, at cost | $1,558,414,611 | $87,721,090 | |
| Investments securities, at fair value | $1,695,105,238 | $89,357,477 | |
| Short-term securities, at fair value1 | 150,921,464 | 5,682,919 | |
| Purchased options, at fair value2 | — | — | |
| Warrant securities, at fair value3 | — | — | |
| Foreign currency, at fair value4 | 14,599,878 | 920,814 | |
| Cash | — | — | |
| Deposit at broker for securities sold short | — | — | |
| Receivable for investment securities sold | 11,326,860 | 1,180,843 | |
| Receivable for fund shares sold | 1,784,867 | 47,978 | |
| Receivable for interest and dividends | 5,473,491 | 948,745 | |
| Prepaid expenses | 174,997 | 40,053 | |
| TOTAL ASSETS | 1,879,386,795 | 98,178,829 | |
| LIABILITIES: | |||
| Payable for investment securities sold short, proceeds | — | — | |
| Payable for investment securities sold short, at fair value | — | — | |
| Written options, at fair value5 | — | — | |
| Unrealized depreciation on open OTC swap contracts | — | — | |
| Payable for fund shares redeemed | 1,097,326 | 17,259 | |
| Payable for investment securities purchased | 11,407,165 | 635 | |
| Advisory fees payable, net | 1,547,460 | 75,124 | |
| Payable for interest and dividends on securities sold short | — | — | |
| Accrued shareholder services plan fees | 245,108 | — | |
| Accrued administration and accounting fees | 176,384 | 12,284 | |
| Accrued foreign capital gains taxes | 1,334,789 | — | |
| Accrued expenses | 273,608 | 28,777 | |
| TOTAL LIABILITIES | 16,081,840 | 134,079 | |
| NET ASSETS | $1,863,304,955 | $98,044,750 | |
| NET ASSETS CONSISTED OF THE FOLLOWING AT JUNE 30, 2022: | |||
| Paid-in-capital | $1,828,358,115 | $121,027,271 | |
| Total distributable earnings (deficit) | 34,946,840 | (22,982,521) | |
| NET ASSETS | $1,863,304,955 | $98,044,750 | |
| NET ASSETS | $— | $98,044,750 | |
| SHARES OUTSTANDING (Unlimited shares authorized, no par value) | — | 5,506,558 | |
| NET ASSET VALUE | $— | $17.81 | |
| INVESTOR CLASS SHARES | |||
| NET ASSETS | $645,759,268 | $— | |
| SHARES OUTSTANDING (Unlimited shares authorized, no par value) | 19,345,600 | — | |
| NET ASSET VALUE | $33.38 | $— | |
| INSTITUTIONAL CLASS SHARES | |||
| NET ASSETS | $1,217,545,687 | $— | |
| SHARES OUTSTANDING (Unlimited shares authorized, no par value) | 36,297,227 | — | |
| NET ASSET VALUE | $33.54 | $— | |
| 1 | The cost of short-term securities was $150,921,464, $5,682,919, $3,095,420, $5,590,673, $7,324,399, $27,039,918, $733,708 and $22,877,045, respectively. |
| 2 | The cost of purchased options was $0, $0, $0, $0, $0, $0, $0 and $627,285, respectively. |
| 3 | The cost of warrants was $0, $0, $0, $0, $0, $0, $0 and $0, respectively. |
| 4 | The cost of foreign currency was $14,699,865, $922,796, $4,157, $1,957,857, $0, $0, $0 and $0, respectively. |
| 5 | The proceeds of written options was $0, $0, $0, $0, $0, $0, $0 and $(206,608), respectively. |
Notes to Financial
Statements are an integral part of this Statement.
44
Driehaus Mutual Funds
Statements of Assets and
Liabilities
June 30, 2022
(unaudited)
| Driehaus Emerging Markets Opportunities Fund | Driehaus International Small Cap Growth Fund | Driehaus Micro Cap Growth Fund | Driehaus Small Cap Growth Fund | Driehaus Small/Mid Cap Growth Fund | Driehaus Event Driven Fund | |||||
| $39,684,500 | $240,518,639 | $172,046,260 | $451,196,061 | $12,498,600 | $165,415,404 | |||||
| $41,926,198 | $208,451,856 | $174,181,415 | $433,190,445 | $12,154,140 | $153,167,967 | |||||
| 3,095,420 | 5,590,673 | 7,324,399 | 27,039,918 | 733,708 | 22,877,045 | |||||
| — | — | — | — | — | 42,849 | |||||
| — | — | 29,579 | — | — | 278,219 | |||||
| 4,156 | 1,957,857 | — | — | — | — | |||||
| 400,596 | — | — | — | — | — | |||||
| — | — | — | — | — | 47,966,637 | |||||
| 126,500 | 664,970 | 4,467,797 | 1,981,229 | 173,956 | 897,000 | |||||
| 50,000 | 543 | 3,602 | 420,745 | — | 136,056 | |||||
| 300,184 | 973,059 | 11,362 | 30,664 | 6,925 | 869,694 | |||||
| 47,023 | 33,205 | 37,474 | 74,316 | 34,555 | 74,479 | |||||
| 45,950,077 | 217,672,163 | 186,055,628 | 462,737,317 | 13,103,284 | 226,309,946 | |||||
| — | — | — | — | — | 55,975,994 | |||||
| — | — | — | — | — | 41,417,149 | |||||
| — | — | — | — | — | 17,574 | |||||
| — | — | — | — | — | 144,659 | |||||
| — | 30,370 | 25,803 | 292,011 | 2,983 | 452,610 | |||||
| 255,243 | 672,784 | 3,766,330 | 14,097,356 | 247,038 | 807,975 | |||||
| 22,765 | 189,039 | 197,542 | 227,574 | 2,386 | 152,471 | |||||
| — | — | — | — | — | 127,266 | |||||
| — | — | — | 24,252 | — | 60,314 | |||||
| 7,463 | 24,414 | 17,500 | 28,771 | 9,604 | 12,239 | |||||
| 56,898 | — | — | — | — | — | |||||
| 46,893 | 49,115 | 35,451 | 42,863 | 19,254 | 44,621 | |||||
| 389,262 | 965,722 | 4,042,626 | 14,712,827 | 281,265 | 43,236,878 | |||||
| $45,560,815 | $216,706,441 | $182,013,002 | $448,024,490 | $12,822,019 | $183,073,068 | |||||
| $44,812,692 | $248,107,107 | $175,992,961 | $540,582,742 | $15,495,200 | $194,870,669 | |||||
| 748,123 | (31,400,666) | 6,020,041 | (92,558,252) | (2,673,181) | (11,797,601) | |||||
| $45,560,815 | $216,706,441 | $182,013,002 | $448,024,490 | $12,822,019 | $183,073,068 | |||||
| $45,560,815 | $216,706,441 | $182,013,002 | $— | $12,822,019 | $183,073,068 | |||||
| 3,913,897 | 27,337,346 | 18,261,863 | — | 1,012,538 | 15,441,645 | |||||
| $11.64 | $7.93 | $9.97 | $— | $12.66 | $11.86 | |||||
| $— | $— | $— | $61,290,054 | $— | $— | |||||
| — | — | — | 4,073,526 | — | — | |||||
| $— | $— | $— | $15.05 | $— | $— | |||||
| $— | $— | $— | $386,734,436 | $— | $— | |||||
| — | — | — | 25,261,888 | — | — | |||||
| $— | $— | $— | $15.31 | $— | $— | |||||
Notes to Financial
Statements are an integral part of this Statement.
45
Driehaus Mutual Funds
Statements of
Operations
June 30, 2022
(unaudited)
| Driehaus Emerging Markets Growth Fund | Driehaus Emerging Markets Small Cap Growth Fund | ||
| INVESTMENT INCOME: | |||
| Interest income | $187,619 | $14,345 | |
| Dividend income1 | 22,834,375 | 909,325 | |
| Total investment income | 23,021,994 | 923,670 | |
| Expenses: | |||
| Investment advisory fees | 9,969,191 | 583,240 | |
| Shareholder services fees | 809,615 | — | |
| Administration fees | 330,401 | 17,423 | |
| Transfer agent fees | 95,917 | 5,051 | |
| Trustees fees | 246,983 | 12,240 | |
| Custody fees | 253,904 | 30,022 | |
| Reports to shareholders | 60,870 | 4,541 | |
| Professional fees | 264,498 | 20,904 | |
| Audit and tax fees | 47,973 | 33,259 | |
| Federal and state registration fees | 32,127 | 10,148 | |
| Dividends and interest on short positions | — | — | |
| Miscellaneous | 127,802 | 23,292 | |
| Total expenses | 12,239,281 | 740,120 | |
| Investment advisory fees recoupment (reimbursement) | — | (82,550) | |
| Fees paid indirectly | (129,898) | (100) | |
| Net expenses | 12,109,383 | 657,470 | |
| Net investment income (loss) | 10,912,611 | 266,200 | |
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT TRANSACTIONS: | |||
| Net realized gain (loss) on transactions from: | |||
| Investments2 | (66,977,813) | (4,104,861) | |
| Warrants | — | — | |
| Purchased options contracts | — | — | |
| Securities sold short | — | — | |
| Written options contracts | — | — | |
| Swap contracts | — | — | |
| Foreign currency | (1,143,393) | (42,607) | |
| Net realized gain (loss) on investment transactions | (68,121,206) | (4,147,468) | |
| Change in net unrealized appreciation (depreciation) on: | |||
| Investments3 | (382,072,541) | (19,407,834) | |
| Warrants | — | — | |
| Securities sold short | — | — | |
| Purchased options contracts | — | — | |
| Written options contracts | — | — | |
| Swap contracts | — | — | |
| Foreign currency | (418,405) | (50,981) | |
| Foreign currency translations | 111,413 | — | |
| Net change in unrealized appreciation (depreciation) on investment transactions | (382,379,533) | (19,458,815) | |
| Net realized and unrealized gain (loss) on investment transactions | (450,500,739) | (23,606,283) | |
| NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | $(439,588,128) | $(23,340,083) | |
| 1 | Net of $2,528,280, $77,677, $52,991, $319,667, $0, $5,321, $329, and $0 of non-reclaimable foreign taxes withheld, respectively. |
| 2 | Net realized gain (loss) from security transactions are net of $3,600,623, $311,329, $0, $0, $0, $0, $0 and $0 foreign capital gains tax paid, respectively. |
| 3 | Net unrealized gain (loss) from security transactions are net of $5,062,910, $792,813, $59,982, $0, $0, $0, $0 and $0 foreign capital gains tax paid, respectively. |
Notes to Financial
Statements are an integral part of this Statement.
46
Driehaus Mutual Funds
Statements of
Operations
June 30, 2022
(unaudited)
| Driehaus Emerging Markets Opportunities Fund | Driehaus International Small Cap Growth Fund | Driehaus Micro Cap Growth Fund | Driehaus Small Cap Growth Fund | Driehaus Small/Mid Cap Growth Fund | Driehaus Event Driven Fund | |||||
| $260,312 | $9,132 | $10,557 | $21,045 | $433 | $1,624,720 | |||||
| 484,051 | 2,895,674 | 860,408 | 1,482,856 | 46,425 | 509,969 | |||||
| 744,363 | 2,904,806 | 870,965 | 1,503,901 | 46,858 | 2,134,689 | |||||
| 228,111 | 1,354,296 | 1,488,785 | 1,496,013 | 54,401 | 965,285 | |||||
| — | — | — | 81,952 | — | 181,213 | |||||
| 8,135 | 43,583 | 36,741 | 82,049 | 2,835 | 31,611 | |||||
| 2,361 | 12,665 | 10,719 | 23,796 | 824 | 8,560 | |||||
| 6,079 | 32,552 | 29,821 | 55,242 | 2,154 | 22,041 | |||||
| 12,175 | 22,762 | 18,420 | 22,907 | 13,408 | 11,512 | |||||
| 2,787 | 7,180 | 6,751 | 17,288 | 2,679 | 9,353 | |||||
| 12,056 | 29,819 | 27,191 | 46,569 | 3,644 | 21,409 | |||||
| 31,623 | 20,442 | 17,108 | 17,108 | 17,108 | 25,290 | |||||
| 10,581 | 12,717 | 12,766 | 27,813 | 9,534 | 17,194 | |||||
| — | — | — | — | — | 300,559 | |||||
| 15,303 | 31,701 | 31,730 | 39,678 | 17,656 | 29,144 | |||||
| 329,211 | 1,567,717 | 1,680,032 | 1,910,415 | 124,243 | 1,623,171 | |||||
| (76,135) | — | — | — | (35,808) | — | |||||
| (2,154) | (6,769) | (34,698) | (45,752) | (2,300) | (33,319) | |||||
| 250,922 | 1,560,948 | 1,645,334 | 1,864,663 | 86,135 | 1,589,852 | |||||
| 493,441 | 1,343,858 | (774,369) | (360,762) | (39,277) | 544,837 | |||||
| (1,169,286) | (12,482,658) | (5,300,269) | (77,776,780) | (2,396,540) | (14,958,781) | |||||
| — | — | — | — | — | (236,545) | |||||
| 158,010 | — | — | — | — | (59,567) | |||||
| — | — | — | — | — | 2,476,805 | |||||
| — | — | — | — | — | — | |||||
| 63,890 | — | — | — | — | 1,277,972 | |||||
| (413) | 13,559 | — | — | — | — | |||||
| (947,799) | (12,469,099) | (5,300,269) | (77,776,780) | (2,396,540) | (11,500,116) | |||||
| (9,951,178) | (81,496,431) | (121,456,760) | (160,150,610) | (5,106,846) | (23,443,809) | |||||
| — | — | (6,379) | — | — | (486,752) | |||||
| — | — | — | — | — | 12,447,663 | |||||
| — | — | — | — | — | (584,436) | |||||
| — | — | — | — | — | 189,034 | |||||
| — | — | — | — | — | (106,741) | |||||
| (3,003) | (52,949) | — | — | — | — | |||||
| — | — | — | — | — | — | |||||
| (9,954,181) | (81,549,380) | (121,463,139) | (160,150,610) | (5,106,846) | (11,985,041) | |||||
| (10,901,980) | (94,018,479) | (126,763,408) | (237,927,390) | (7,503,386) | (23,485,157) | |||||
| $(10,408,539) | $(92,674,621) | $(127,537,777) | $(238,288,152) | $(7,542,663) | $(22,940,320) | |||||
Notes to Financial Statements are
an integral part of this Statement.
47
Driehaus Mutual Funds
Statements of Changes in
Net Assets
| Driehaus Emerging Markets Growth Fund | Driehaus Emerging Markets Small Cap Growth Fund | ||||||
| For the six months ended June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the six months ended June 30, 2022 (unaudited) | For the year ended December 31, 2021 | ||||
| INCREASE (DECREASE) IN NET ASSETS: | |||||||
| Operations: | |||||||
| Net investment income (loss) | $10,912,611 | $307,977 | $266,200 | $294,442 | |||
| Net realized gain (loss) on investment transactions | (68,121,206) | 189,076,575 | (4,147,468) | 18,667,537 | |||
| Net change in unrealized appreciation (depreciation) on investment transactions | (382,379,533) | (241,356,919) | (19,458,815) | (3,691,089) | |||
| Net increase (decrease) in net assets resulting from operations | (439,588,128) | (51,972,367) | (23,340,083) | 15,270,890 | |||
| Distributions from distributable earnings to shareholders: | |||||||
| Fund | — | — | — | (49,512) | |||
| Investor Class Shares | — | (124,720,312) | — | — | |||
| Institutional Class Shares | — | (219,579,683) | — | — | |||
| Total distributions to shareholders | — | (344,299,995) | — | (49,512) | |||
| Capital share transactions: | |||||||
| Proceeds from shares sold: | |||||||
| Fund | — | — | 14,169,221 | 27,161,675 | |||
| Investor Class | 55,818,434 | 114,382,649 | — | — | |||
| Institutional Class | 170,047,796 | 456,095,754 | — | — | |||
| Reinvestment of distributions: | |||||||
| Fund | — | — | — | 43,116 | |||
| Investor Class | — | 120,092,702 | — | — | |||
| Institutional Class | — | 196,637,512 | — | — | |||
| Cost of shares redeemed: | |||||||
| Fund | — | — | (9,430,797) | (15,512,569) | |||
| Investor Class | (98,226,096) | (201,365,699) | — | — | |||
| Institutional Class | (151,885,773) | (245,809,899) | — | — | |||
| Redemption fees: | |||||||
| Fund | — | — | 2,028 | 1,535 | |||
| Investor Class | 17,467 | 23,718 | — | — | |||
| Institutional Fund | 17,212 | 58,326 | — | — | |||
| Net increase (decrease) in net assets resulting from capital transactions | (24,210,960) | 440,115,063 | 4,740,452 | 11,693,757 | |||
| Total increase (decrease) in net assets | (463,799,088) | 43,842,701 | (18,599,631) | 26,915,135 | |||
| NET ASSETS: | |||||||
| Beginning of period | $2,327,104,043 | $2,283,261,342 | $116,644,381 | $89,729,246 | |||
| End of period | $1,863,304,955 | $2,327,104,043 | $98,044,750 | $116,644,381 | |||
Notes to Financial
Statements are an integral part of this Statement.
48
Driehaus Mutual Funds
Statements of Changes in
Net Assets
| Driehaus Emerging Markets Opportunities Fund | Driehaus International Small Cap Growth Fund | Driehaus Micro Cap Growth Fund | ||||||||
| For the six months ended June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the six months ended June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the six months ended June 30, 2022 (unaudited) | For the year ended December 31, 2021 | |||||
| $493,441 | $564,274 | $1,343,858 | $1,032,830 | $(774,369) | $(4,776,419) | |||||
| (947,799) | 441,572 | (12,469,099) | 63,535,651 | (5,300,269) | 114,688,268 | |||||
| (9,954,181) | (1,660,053) | (81,549,380) | (29,892,096) | (121,463,139) | (32,720,786) | |||||
| (10,408,539) | (654,207) | (92,674,621) | 34,676,385 | (127,537,777) | 77,191,063 | |||||
| — | (3,192,791) | — | (72,600,000) | — | (123,999,999) | |||||
| — | — | — | — | — | — | |||||
| — | — | — | — | — | — | |||||
| — | (3,192,791) | — | (72,600,000) | — | (123,999,999) | |||||
| 1,120,852 | 11,548,706 | 10,709,910 | 68,316,473 | 4,492,552 | 5,932,222 | |||||
| — | — | — | — | — | — | |||||
| — | — | — | — | — | — | |||||
| — | 3,192,291 | — | 64,761,613 | — | 89,300,107 | |||||
| — | — | — | — | — | — | |||||
| — | — | — | — | — | — | |||||
| (2,879,859) | (6,387,891) | (33,642,538) | (51,696,847) | (36,211,024) | (41,545,106) | |||||
| — | — | — | — | — | — | |||||
| — | — | — | — | — | — | |||||
| 795 | — | 1,551 | — | — | — | |||||
| — | — | — | — | — | — | |||||
| — | — | — | — | — | — | |||||
| (1,758,212) | 8,353,106 | (22,931,077) | 81,381,239 | (31,718,472) | 53,687,223 | |||||
| (12,166,751) | 4,506,108 | (115,605,698) | 43,457,624 | (159,256,249) | 6,878,287 | |||||
| $57,727,566 | $53,221,458 | $332,312,139 | $288,854,515 | $341,269,251 | $334,390,964 | |||||
| $45,560,815 | $57,727,566 | $216,706,441 | $332,312,139 | $182,013,002 | $341,269,251 | |||||
Notes to Financial
Statements are an integral part of this Statement.
49
Driehaus Mutual Funds
Statements of Changes in
Net Assets
| Driehaus Small Cap Growth Fund | Driehaus Small/Mid Cap Growth Fund | ||||||
| For the six months ended June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the six months ended June 30, 2022 (unaudited) | For the year ended December 31, 2021 | ||||
| INCREASE (DECREASE) IN NET ASSETS: | |||||||
| Operations: | |||||||
| Net investment income (loss) | $(360,762) | $(2,917,475) | $(39,277) | $(155,857) | |||
| Net realized gain (loss) on investment transactions | (77,776,780) | 82,938,619 | (2,396,540) | 2,015,530 | |||
| Net change in unrealized appreciation (depreciation) on investment transactions | (160,150,610) | 2,862,750 | (5,106,846) | 1,216,089 | |||
| Net increase (decrease) in net assets resulting from operations | (238,288,152) | 82,883,894 | (7,542,663) | 3,075,762 | |||
| Distributions from distributable earnings to shareholders: | |||||||
| Fund | — | — | — | (1,753,267) | |||
| Investor Class Shares | — | (15,495,848) | — | — | |||
| Institutional Class Shares | — | (73,704,158) | — | — | |||
| Total distributions to shareholders | — | (89,200,006) | — | (1,753,267) | |||
| Capital share transactions: | |||||||
| Proceeds from shares sold: | |||||||
| Fund | — | — | 2,300,876 | 11,530,225 | |||
| Investor Class | 21,243,702 | 89,878,449 | — | — | |||
| Institutional Class | 137,498,364 | 208,019,662 | — | — | |||
| Reinvestment of distributions: | |||||||
| Fund | — | — | — | 1,753,267 | |||
| Investor Class | — | 15,479,510 | — | — | |||
| Institutional Class | — | 66,494,390 | — | — | |||
| Cost of shares redeemed: | |||||||
| Fund | — | — | (5,111,296) | (6,277,724) | |||
| Investor Class | (21,324,992) | (29,025,749) | — | — | |||
| Institutional Class | (60,453,571) | (90,522,445) | — | — | |||
| Redemption fees: | |||||||
| Fund | — | 2,412 | 1,353 | — | |||
| Investor Class | 24,912 | 58,498 | — | — | |||
| Institutional Fund | 12,586 | — | — | — | |||
| Net increase (decrease) in net assets resulting from capital transactions | 77,001,001 | 260,384,727 | (2,809,067) | 7,005,768 | |||
| Total increase (decrease) in net assets | (161,287,151) | 254,068,615 | (10,351,730) | 8,328,263 | |||
| NET ASSETS: | |||||||
| Beginning of period | $609,311,641 | $355,243,026 | $23,173,749 | $14,845,486 | |||
| End of period | $448,024,490 | $609,311,641 | $12,822,019 | $23,173,749 | |||
Notes to Financial
Statements are an integral part of this Statement.
50
Driehaus Mutual Funds
Statements of Changes in
Net Assets
| Driehaus Event Driven Fund | ||
| For the six months ended June 30, 2022 (unaudited) | For the year ended December 31, 2021 | |
| $544,837 | $188,587 | |
| (11,500,116) | 15,108,809 | |
| (11,985,041) | (4,075,164) | |
| (22,940,320) | 11,222,232 | |
| — | (22,722,926) | |
| — | — | |
| — | — | |
| — | (22,722,926) | |
| 76,570,082 | 123,731,700 | |
| — | — | |
| — | — | |
| — | 21,829,123 | |
| — | — | |
| — | — | |
| (74,191,232) | (72,489,715) | |
| — | — | |
| — | — | |
| — | — | |
| — | — | |
| — | — | |
| 2,378,850 | 73,071,108 | |
| (20,561,470) | 61,570,414 | |
| $203,634,538 | $142,064,124 | |
| $183,073,068 | $203,634,538 | |
Notes to Financial
Statements are an integral part of this Statement.
51
Driehaus Emerging
Markets Growth Fund — Investor Class
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | ||||||
| Net asset value, beginning of period | $ 41.20 | $ 49.09 | $ 39.53 | $ 31.80 | $ 39.64 | $ 27.98 | |||||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||
| Net investment income (loss) | 0.171 | (0.07)1 | (0.09)1 | 0.301 | 0.261 | 0.111 | |||||
| Net realized and unrealized gain (loss) on investments | (7.99) | (0.93) | 10.87 | 7.76 | (6.73) | 11.78 | |||||
| Total income (loss) from investment operations | (7.82) | (1.00) | 10.78 | 8.06 | (6.47) | 11.89 | |||||
| LESS DISTRIBUTIONS: | |||||||||||
| Net investment income | — | — | — | (0.33) | (0.16) | (0.23) | |||||
| Net realized gain | — | (6.89) | (1.22) | — | (1.21) | — | |||||
| Total distributions | — | (6.89) | (1.22) | (0.33) | (1.37) | (0.23) | |||||
| Redemption fees added to paid-in capital | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | |||||
| Net asset value, end of period | $ 33.38 | $ 41.20 | $ 49.09 | $ 39.53 | $ 31.80 | $ 39.64 | |||||
| Total Return | (18.98)%3 | (1.90)% | 27.31% | 25.34% | (16.26)% | 42.52% | |||||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||||
| Net assets, end of period (000’s) | $ 645,759 | $ 844,522 | $ 951,998 | $ 863,535 | $ 791,656 | $ 1,266,365 | |||||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 1.33%4 | 1.29% | 1.39% | 1.41% | 1.38% | 1.54% | |||||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | 1.32%4 | 1.28% | 1.38% | 1.40% | 1.37% | 1.53% | |||||
| Ratio of net investment income (loss) (including interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | 0.89%4 | (0.13)% | (0.24)% | 0.85% | 0.69% | 0.33% | |||||
| Portfolio turnover | 73%3 | 169% | 203% | 167% | 218% | 176% |
| 1 | Net investment income (loss) per share has been calculated using the average shares method. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The ratio for the Fund includes the effect of fees paid indirectly which impacted the ratio by 0.01% for the years 2017, 2018, 2019, 2020, 2021 and for the six month period June 30, 2022. |
Notes to Financial Statements are
an integral part of this Schedule.
52
Driehaus Emerging
Markets Growth Fund — Institutional Class
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the period July 17, 2017 through December 31, 2017 | ||||||
| Net asset value, beginning of period | $ 41.36 | $ 49.14 | $ 39.48 | $ 31.76 | $ 39.61 | $ 34.85 | |||||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||
| Net investment income (loss) | 0.211 | 0.051 | (0.01)1 | 0.381 | 0.32 | 0.121 | |||||
| Net realized and unrealized gain (loss) on investments | (8.03) | (0.94) | 10.89 | 7.75 | (6.71) | 4.92 | |||||
| Total income (loss) from investment operations | (7.82) | (0.89) | 10.88 | 8.13 | (6.39) | 5.04 | |||||
| LESS DISTRIBUTIONS: | |||||||||||
| Net investment income | — | — | — | (0.41) | (0.25) | (0.28) | |||||
| Net realized gain | — | (6.89) | (1.22) | — | (1.21) | — | |||||
| Total distributions | — | (6.89) | (1.22) | (0.41) | (1.46) | (0.28) | |||||
| Redemption fees added to paid-in capital | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | |||||
| Net asset value, end of period | $ 33.54 | $ 41.36 | $ 49.14 | $ 39.48 | $ 31.76 | $ 39.61 | |||||
| Total Return | (18.91)%3 | (1.67)% | 27.60% | 25.60% | (16.08)% | 14.47%3 | |||||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||||
| Net assets, end of period (000’s) | $ 1,217,546 | $ 1,482,582 | $ 1,331,263 | $ 928,230 | $ 654,445 | $ 513,135 | |||||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 1.10%4 | 1.07% | 1.17% | 1.20% | 1.17% | 1.17%4 | |||||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | 1.09%4 | 1.06% | 1.16% | 1.19% | 1.16% | 1.16%4 | |||||
| Ratio of net investment income (loss) (including interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | 1.15%4 | 0.10% | (0.02)% | 1.07% | 0.89% | 0.71%4 | |||||
| Portfolio turnover | 73%3 | 169% | 203% | 167% | 218% | 176%3 |
| 1 | Net investment income (loss) per share has been calculated using the average shares method. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The ratio for the Fund includes the effect of fees paid indirectly which impacted the ratio by 0.01% for the years 2017, 2018, 2019, 2020, 2021 and for the six month period June 30, 2022. |
Notes to Financial
Statements are an integral part of this Schedule.
53
Driehaus Emerging
Markets Small Cap Growth Fund
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | ||||||
| Net asset value, beginning of period | $ 22.11 | $ 19.08 | $ 14.38 | $ 10.80 | $ 14.21 | $ 10.66 | |||||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||
| Net investment income (loss) | 0.05 | 0.06 | 0.02 | 0.06 | (0.04)1 | 0.021 | |||||
| Net realized and unrealized gain (loss) on investments | (4.35) | 2.98 | 4.80 | 3.58 | (3.37) | 3.53 | |||||
| Total income (loss) from investment operations | (4.30) | 3.04 | 4.82 | 3.64 | (3.41) | 3.55 | |||||
| LESS DISTRIBUTIONS: | |||||||||||
| Net investment income | — | (0.01) | (0.12) | (0.06) | — | — | |||||
| Total distributions | — | (0.01) | (0.12) | (0.06) | — | — | |||||
| Redemption fees added to paid-in capital | 0.002 | 0.002 | — | 0.002 | 0.002 | 0.002 | |||||
| Net asset value, end of period | $ 17.81 | $ 22.11 | $ 19.08 | $ 14.38 | $ 10.80 | $ 14.21 | |||||
| Total Return | (19.45)%3 | 15.93% | 33.56% | 33.71% | (24.00)% | 33.30% | |||||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||||
| Net assets, end of period (000’s) | $ 98,045 | $ 116,644 | $ 89,729 | $ 62,407 | $ 89,653 | $ 271,146 | |||||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 1.40%4 | 1.37% | 1.72% | 1.80%5 | 2.27%5 | 1.82% | |||||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets6 | 1.24%4,7 | 1.24% | 1.45%7 | 1.45%5,7 | 2.26%5 | 1.80% | |||||
| Ratio of net investment income (loss) (including interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets6 | 0.50%4,7 | 0.28%7 | 0.12%7 | 0.52%7 | (0.30)% | 0.15% | |||||
| Portfolio turnover | 80%3 | 178% | 248% | 220% | 207% | 243% |
| 1 | Net investment income (loss) per share has been calculated using the average shares method. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Ratio of expenses to average net assets includes interest expense of 0.01% for the year ended December 31, 2019, and less than 0.005% for the year ended December 31, 2018. The interest expense is from utilizing the line of credit (see Note G in the Notes to Financial Statements). |
| 6 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The ratio for the Fund includes the effect of fees paid indirectly which impacted the ratio by 0.02%, 0.02%, 0.01%, 0.00%, 0.01%, and 0.00% for the years 2017, 2018, 2019, 2020, 2021 and for the six month period June 30, 2022. |
| 7 | Such ratios are after prior administrative and transfer agent waivers and adviser expense reimbursements, when applicable. BNY Mellon Investment Servicing (US) Inc., the prior administrative agent and transfer agent, waived a portion of its fees beginning with the Fund’s commencement of operations, August 22, 2011. Effective December 31, 2020, the Adviser contractually agreed to waive its investment advisory fee or absorb other operating expenses to the extent necessary to ensure that total annual Fund operating expenses (other than interest, taxes, brokerage commissions, dividends and interest on short sales, other investment-related expenses, acquired fund fees and expenses, and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of the Fund’s business) would not exceed the Fund’s operating expense cap of 1.24% of average daily net assets until April 30, 2023. From November 1, 2018, to December 31, 2020, the annual operating expense limitation was 1.45%. |
Notes to Financial
Statements are an integral part of this Schedule.
54
Driehaus Emerging
Markets Opportunities Fund
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the period April 10, 2017* through December 31, 2017 | ||||||
| Net asset value, beginning of period | $ 14.25 | $ 15.17 | $ 11.94 | $ 9.93 | $ 11.54 | $ 10.00 | |||||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||
| Net investment income (loss) | 0.12 | 0.12 | 0.16 | 0.29 | 0.24 | 0.17 | |||||
| Net realized and unrealized gain (loss) on investments | (2.73) | (0.21) | 3.43 | 1.86 | (1.77) | 1.94 | |||||
| Total income (loss) from investment operations | (2.61) | (0.09) | 3.59 | 2.15 | (1.53) | 2.11 | |||||
| LESS DISTRIBUTIONS: | |||||||||||
| Net investment income | — | (0.22) | (0.11) | (0.14) | — | (0.16) | |||||
| Net realized gain | — | (0.61) | (0.25) | — | (0.08) | (0.41) | |||||
| Total distributions | — | (0.83) | (0.36) | (0.14) | (0.08) | (0.57) | |||||
| Redemption fees added to paid-in capital | 0.001 | — | — | — | — | 0.001 | |||||
| Net asset value, end of period | $ 11.64 | $ 14.25 | $ 15.17 | $ 11.94 | $ 9.93 | $ 11.54 | |||||
| Total Return | (18.32)%2 | (0.53)% | 30.09% | 21.64% | (13.22)% | 21.14%2 | |||||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||||
| Net assets, end of period (000’s) | $ 45,561 | $ 57,728 | $ 53,221 | $ 39,043 | $ 31,637 | $ 43,183 | |||||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 1.30%3 | 1.31% | 1.62% | 1.89% | 2.05% | 2.04%3 | |||||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets4,5 | 0.99%3 | 0.99% | 0.99% | 1.23% | 1.75% | 1.75%3 | |||||
| Ratio of net investment income (loss) (including interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | 1.95%3 | 0.92% | 1.47% | 2.67% | 2.19% | 2.12%3 | |||||
| Portfolio turnover | 51%2 | 101% | 135% | 155% | 169% | 99%2 |
| * | Fund commenced operations on May 1, 2020. |
| 1 | Amount represents less than $0.01 per share. |
| 2 | Not annualized. |
| 3 | Annualized. |
| 4 | Effective May 1, 2019 the Adviser contractually agreed to waive its investment advisory fee or absorb other operating expenses to the extent necessary to ensure that total annual Fund operating expenses (other than interest, taxes, brokerage commissions, dividends and interest on short sales, other investment-related expenses, acquired fund fees and expenses, and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of the Fund’s business) would not exceed the Fund’s operating expense cap of 0.99% of average daily net assets until April 30, 2023. Prior to May 1, 2019. the annual operating expense limitation was 1.75%. |
| 5 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The expense ratio impacts of fees paid indirectly were 0.00%, 0.00%, 0.00%, 0.01% and 0.01% for the years 2018, 2019, 2020, 2021 and for the six month period June 30, 2022. |
Notes to Financial
Statements are an integral part of this Schedule.
55
Driehaus International
Small Cap Growth Fund
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | ||||||
| Net asset value, beginning of period | $ 11.06 | $ 12.59 | $ 10.52 | $ 8.13 | $ 11.39 | $ 9.33 | |||||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||
| Net investment income (loss) | 0.04 | 0.04 | 0.01 | 0.06 | (0.02)1 | (0.04) | |||||
| Net realized and unrealized gain (loss) on investments | (3.17) | 1.42 | 3.10 | 2.41 | (1.92) | 3.88 | |||||
| Total income (loss) from investment operations | (3.13) | 1.46 | 3.11 | 2.47 | (1.94) | 3.84 | |||||
| LESS DISTRIBUTIONS: | |||||||||||
| Net investment income | — | (0.04) | (0.08) | (0.01) | — | — | |||||
| Net realized gain | — | (2.95) | (0.96) | (0.07) | (1.32) | (1.78) | |||||
| Total distributions | — | (2.99) | (1.04) | (0.08) | (1.32) | (1.78) | |||||
| Redemption fees added to paid-in capital | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | |||||
| Net asset value, end of period | $ 7.93 | $ 11.06 | $ 12.59 | $ 10.52 | $ 8.13 | $ 11.39 | |||||
| Total Return | (28.30)%3 | 12.49% | 29.71% | 30.41% | (16.92)% | 41.44% | |||||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||||
| Net assets, end of period (000’s) | $ 216,706 | $ 332,312 | $ 288,855 | $ 268,229 | $ 218,430 | $ 325,361 | |||||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 1.15%4 | 1.15% | 1.23% | 1.24% | 1.50% | 1.73% | |||||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | 1.15%4 | 1.14% | 1.23% | 1.24% | 1.49% | 1.71% | |||||
| Ratio of net investment income (loss) (including interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | 0.99%4 | 0.32% | 0.02% | 0.65% | (0.21)% | (0.44)% | |||||
| Portfolio turnover | 39%3 | 93% | 104% | 96% | 118% | 143% |
| 1 | Net investment income (loss) per share has been calculated using the average shares method. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The ratio for the Fund includes the effect of fees paid indirectly which impacted the ratio by 0.02%, 0.01%, 0.00%, 0.00%, 0.01% and 0.00% for the years 2017, 2018, 2019, 2020, 2021 and the six month period June 30, 2022. |
Notes to Financial
Statements are an integral part of this Schedule.
56
Driehaus Micro Cap
Growth Fund
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | ||||||
| Net asset value, beginning of period | $ 16.33 | $ 19.99 | $ 12.95 | $ 11.11 | $ 14.44 | $ 12.65 | |||||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||
| Net investment income (loss) | (0.04) | (0.22) | (0.20) | (0.16) | (0.19) | (0.18)1 | |||||
| Net realized and unrealized gain (loss) on investments | (6.32) | 4.44 | 11.20 | 3.90 | 0.55 | 3.26 | |||||
| Total income (loss) from investment operations | (6.36) | 4.22 | 11.00 | 3.74 | 0.36 | 3.08 | |||||
| LESS DISTRIBUTIONS: | |||||||||||
| Net investment income | — | — | — | (0.02) | — | — | |||||
| Net realized gain | — | (7.88) | (3.96) | (1.88) | (3.69) | (1.29) | |||||
| Total distributions | — | (7.88) | (3.96) | (1.90) | (3.69) | (1.29) | |||||
| Redemption fees added to paid-in capital | — | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | |||||
| Net asset value, end of period | $ 9.97 | $ 16.33 | $ 19.99 | $ 12.95 | $ 11.11 | $ 14.44 | |||||
| Total Return | (38.95)%3 | 24.73% | 85.60% | 33.89% | 3.88% | 24.30% | |||||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||||
| Net assets, end of period (000’s) | $ 182,013 | $ 341,269 | $ 334,391 | $ 269,120 | $ 264,607 | $ 322,533 | |||||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 1.41%4 | 1.38% | 1.46% | 1.48% | 1.44%5 | 1.45%5 | |||||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets6 | 1.38%4 | 1.35% | 1.43% | 1.43% | 1.42%5 | 1.43%5 | |||||
| Ratio of net investment income (loss) (including interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets6 | (0.65)%4 | (1.26)% | (1.33)% | (1.32)% | (1.19)% | (1.33)% | |||||
| Portfolio turnover | 57%3 | 109% | 141% | 165% | 156% | 177% |
| 1 | Net investment income (loss) per share has been calculated using the average shares method. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Ratio of expenses to average net assets includes interest expense of less than 0.005% for the years ended December 31, 2018 and 2017. The interest expense is from utilizing the line of credit (see Note G in the Notes to Financial Statements). |
| 6 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The ratio for the Fund includes the effect of fees paid indirectly which impacted the ratio by 0.02%, 0.02%, 0.05%, 0.03%, 0.03%, and 0.03% for the years 2017, 2018, 2019, 2020, 2021, and for the six month period June 30, 2022. |
Notes to Financial
Statements are an integral part of this Schedule.
57
Driehaus Small Cap
Growth Fund — Investor Class
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the period August 21, 2017 through December 31, 2017 | ||||||
| Net asset value, beginning of period | $ 23.76 | $ 23.62 | $ 15.37 | $ 11.66 | $ 11.62 | $ 10.00 | |||||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||
| Net investment income (loss) | (0.04)1 | (0.14) | (0.18)1 | (0.13) | (0.12)1 | (0.04)1 | |||||
| Net realized and unrealized gain (loss) on investments | (8.67) | 4.80 | 9.98 | 4.81 | 0.48 | 1.86 | |||||
| Total income (loss) from investment operations | (8.71) | 4.66 | 9.80 | 4.68 | 0.36 | 1.82 | |||||
| LESS DISTRIBUTIONS: | |||||||||||
| Net investment income | — | — | — | — | — | — | |||||
| Net realized gain | — | (4.52) | (1.55) | (0.97) | (0.33) | (0.20) | |||||
| Total distributions | — | (4.52) | (1.55) | (0.97) | (0.33) | (0.20) | |||||
| Redemption fees added to paid-in capital | 0.002 | — | — | 0.002 | 0.01 | — | |||||
| Net asset value, end of period | $ 15.05 | $ 23.76 | $ 23.62 | $ 15.37 | $ 11.66 | $ 11.62 | |||||
| Total Return | (36.66)%3 | 21.12% | 63.77% | 40.25% | 3.33% | 18.18%3 | |||||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||||
| Net assets, end of period (000’s) | $ 61,290 | $ 96,371 | $ 28,088 | $ 10,899 | $ 7,538 | $ 1,344 | |||||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 0.99%4 | 0.99% | 1.35% | 1.59% | 2.57% | 7.86%4 | |||||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | 0.97%4,6 | 1.11%6 | 1.20%6 | 1.17%6 | 1.18%6 | 1.20%4,6 | |||||
| Ratio of net investment income (loss) (including interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | (0.39)%4,6 | (0.97)%6 | (1.04)%6 | (0.95)%6 | (0.87)%6 | (0.94)%4,6 | |||||
| Portfolio turnover | 90%3 | 149% | 164% | 206% | 193% | 66%3 |
| 1 | Net investment income (loss) per share has been calculated using the average shares method. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The ratio for the Fund includes the effect of fees paid indirectly which impacted the ratio by 0.00%, 0.02%, 0.03%, 0.02%, 0.02%, and 0.02% for the years 2017, 2018, 2019, 2020, 2021, and for the six month period June 30, 2022. |
| 6 | Such ratios are after administrative and transfer agent waivers and adviser expense reimbursements and recoupments, when applicable. BNY Mellon Investment Servicing (US) Inc., the prior administrative agent and transfer agent, waived a portion of its fees beginning with the Fund’s commencement of operations, August 21, 2017. The Adviser contractually agree to waive its investment advisory fee or absorb other operating expenses to the extent necessary to ensure that total annual operating expenses for the Investor Class (other than interest, taxes, brokerage commissions and other portfolio transaction expenses, capital expenditures, and extraordinary expenses) would not exceed the Investor Class’s operating expense cap of 1.20% of average daily net assets until April 30, 2023. |
Notes to Financial Statements are
an integral part of this Schedule.
58
Driehaus Small Cap
Growth Fund — Institutional Class
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the period August 21, 2017 through December 31, 2017 | ||||||
| Net asset value, beginning of period | $ 24.15 | $ 23.88 | $ 15.47 | $ 11.70 | $ 11.63 | $ 10.00 | |||||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||
| Net investment income (loss) | (0.01)1 | (0.11) | (0.11)1 | (0.10) | (0.08)1 | (0.03)1 | |||||
| Net realized and unrealized gain (loss) on investments | (8.83) | 4.90 | 10.07 | 4.84 | 0.47 | 1.86 | |||||
| Total income (loss) from investment operations | (8.84) | 4.79 | 9.96 | 4.74 | 0.39 | 1.83 | |||||
| LESS DISTRIBUTIONS: | |||||||||||
| Net investment income | — | — | — | — | — | — | |||||
| Net realized gain | — | (4.52) | (1.55) | (0.97) | (0.33) | (0.20) | |||||
| Total distributions | — | (4.52) | (1.55) | (0.97) | (0.33) | (0.20) | |||||
| Redemption fees added to paid-in capital | 0.002 | — | — | 0.002 | 0.01 | — | |||||
| Net asset value, end of period | $ 15.31 | $ 24.15 | $ 23.88 | $ 15.47 | $ 11.70 | $ 11.63 | |||||
| Total Return | (36.60)%3 | 21.44% | 64.39% | 40.62% | 3.59% | 18.28%3 | |||||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||||
| Net assets, end of period (000’s) | $ 386,734 | $ 512,941 | $ 327,155 | $ 161,821 | $ 123,395 | $ 38,631 | |||||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 0.73%4 | 0.73% | 0.80% | 0.89% | 1.04% | 1.48%4 | |||||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | 0.71%4,6 | 0.71%6 | 0.81%6 | 0.92%6 | 0.93%6 | 0.95%4,6 | |||||
| Ratio of net investment income (loss) (including interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets5 | (0.10)%4,6 | (0.58)%6 | (0.64)%6 | (0.70)%6 | (0.62)%6 | (0.69)%4,6 | |||||
| Portfolio turnover | 90%3 | 149% | 164% | 206% | 193% | 66%3 |
| 1 | Net investment income (loss) per share has been calculated using the average shares method. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The ratio for the Fund includes the effect of fees paid indirectly which impacted the ratio by 0.00%, 0.02%, 0.03%, 0.01%, 0.02%, and 0.02% for the years 2017, 2018, 2019, 2020, 2021 and for the six month period June, 30, 2022. |
| 6 | Such ratios are after administrative and transfer agent waivers and adviser expense reimbursements and recoupments, when applicable. BNY Mellon Investment Servicing (US) Inc., the prior administrative agent and transfer agent, waived a portion of its fees beginning with the Fund’s commencement of operations, August 21, 2017. The Adviser contractually agreed to waive its investment advisory fee or absorb other operating expenses to the extent necessary to ensure that total annual operating expenses for the Institutional Class (other than interest, taxes, brokerage commissions and other portfolio transaction expenses, capital expenditures, and extraordinary expenses) would not exceed the Institutional Class’s operating expense cap of 0.95% of average daily net assets until April 30, 2023. |
Notes to Financial
Statements are an integral part of this Schedule.
59
Driehaus Small/Mid Cap
Growth Fund
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the period May 1, 2020* through December 31, 2020 | |||
| Net asset value, beginning of period | $ 18.75 | $ 17.19 | $ 10.00 | ||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||
| Net investment income (loss) | (0.03) | (0.12) | (0.04) | ||
| Net realized and unrealized gain (loss) on investments | (6.06) | 3.17 | 7.47 | ||
| Total income (loss) from investment operations | (6.09) | 3.05 | 7.43 | ||
| LESS DISTRIBUTIONS: | |||||
| Net investment income | — | — | — | ||
| Net realized gain | — | (1.49) | (0.24) | ||
| Total distributions | — | (1.49) | (0.24) | ||
| Redemption fees added to paid-in capital | 0.001 | — | — | ||
| Net asset value, end of period | $ 12.66 | $ 18.75 | $ 17.19 | ||
| Total Return | (32.48)%2 | 18.32% | 74.23%2 | ||
| RATIOS/SUPPLEMENTAL DATA: | |||||
| Net assets, end of period (000’s) | $ 12,822 | $ 23,174 | $ 14,845 | ||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 1.37%3 | 1.31% | 2.58%3 | ||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets4 | 0.95%3,5 | 0.95%5 | 0.95%3,5 | ||
| Ratio of net investment income (loss) (including interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets4 | (0.43)%3,5 | (0.70)%5 | (0.73)%3,5 | ||
| Portfolio turnover | 100%2 | 191% | 96%2 |
| * | Fund commenced operations on May 1, 2020. |
| 1 | Amount represents less than $0.01 per share. |
| 2 | Not annualized. |
| 3 | Annualized. |
| 4 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The ratio for the Fund includes the effect of fees paid indirectly which impacted the ratio by 0.00%, 0.01%, and 0.03% for the years 2020, 2021, and for the six month period June 30, 2022. |
| 5 | Such ratios are after administrative and transfer agent waivers and adviser expense reimbursements, when applicable. BNY Mellon Investment Servicing (US) Inc., the prior administrative agent and transfer agent, and The Northern Trust Company, the current administrative agent and transfer agent, waived a portion of its fees beginning with the Fund’s commencement of operations, May 1, 2020. The Adviser contractually agreed to waive its investment advisory fee or absorb other operating expenses to the extent necessary to ensure that total annual Fund operating expenses (other than interest, taxes, brokerage commissions and other portfolio transaction expenses, capital expenditures, and extraordinary expenses) would not exceed the Fund’s operating expense cap of 0.95% of average daily net assets until May 1, 2023. |
Notes to Financial
Statements are an integral part of this Schedule.
60
Driehaus Event Driven
Fund
Financial Highlights
| For the six month period January 1, 2022 through June 30, 2022 (unaudited) | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | ||||||
| Net asset value, beginning of period | $ 13.29 | $ 13.93 | $ 11.55 | $ 9.99 | $ 10.79 | $ 10.34 | |||||
| INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||
| Net investment income (loss) | 0.03 | 0.04 | 0.12 | 0.26 | 0.25 | 0.02 | |||||
| Net realized and unrealized gain (loss) on investments | (1.46) | 0.93 | 2.74 | 1.69 | (0.69) | 0.43 | |||||
| Total income (loss) from investment operations | (1.43) | 0.97 | 2.86 | 1.95 | (0.44) | 0.45 | |||||
| LESS DISTRIBUTIONS: | |||||||||||
| Net investment income | — | (0.15) | (0.17) | (0.39) | (0.36) | — | |||||
| Net realized gain | — | (1.46) | (0.31) | — | — | — | |||||
| Total distributions | — | (1.61) | (0.48) | (0.39) | (0.36) | — | |||||
| Net asset value, end of period | $ 11.86 | $ 13.29 | $ 13.93 | $ 11.55 | $ 9.99 | $ 10.79 | |||||
| Total Return | (10.76)%1 | 7.21% | 24.84% | 19.53% | (4.03)% | 4.35% | |||||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||||
| Net assets, end of period (000’s) | $ 183,073 | $ 203,635 | $ 142,064 | $ 69,455 | $ 51,675 | $ 165,648 | |||||
| Ratio of total expenses before reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets | 1.68%2 | 1.49% | 1.59% | 1.93% | 1.90% | 1.77% | |||||
| Ratio of total expenses net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets3,4 | 1.65%2 | 1.42% | 1.57% | 1.90% | 1.88% | 1.76% | |||||
| Ratio of net investment income (loss) (including dividends and interest on short positions and interest expense) net of reimbursements, waivers, recoupments and/or fees paid indirectly to average net assets3,4 | 0.56%2 | 0.10% | 0.67% | 2.63% | 2.57% | 0.48% | |||||
| Portfolio turnover | 41%1 | 109% | 136% | 111% | 101% | 198% |
| 1 | Not annualized. |
| 2 | Annualized. |
| 3 | The ratio for the fund includes the effect of dividends and interest on short positions, and interest expense which increased the expense ratios by 0.31%, 0.31%, 0.30%, 0.13%, 0.10% and 0.31% for the years 2017, 2018, 2019, 2020, 2021, and for the six month period June 30, 2022. |
| 4 | Such ratios are net of fees paid indirectly (see Note C in the Notes to Financial Statements). The ratio for the fund includes the effect of fees paid indirectly which impacted the expense ratios by 0.01%, 0.02%, 0.03%, 0.02%, 0.07% and 0.03% for the years 2017, 2018, 2019, 2020, 2021, and for the six month period June 30, 2022. |
Notes to Financial Statements are
an integral part of this Schedule.
61
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited)
A. ORGANIZATION
AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
The Driehaus Mutual Funds (the “Trust”) is an open-end registered management investment company under the Investment Company Act of 1940 (the "1940 Act"), as amended, organized as a Delaware statutory
trust, with eight separate series currently in operation. The Trust was organized under an Agreement and Declaration of Trust dated May 31, 1996, as subsequently amended and restated as of June 6, 2013, and as further
amended to date, and may issue an unlimited number of full and fractional units of beneficial interest (shares) without par value. The eight series (each a “Fund”, and collectively, the
“Funds”) included in this report are as follows:
| Fund | Commencement of Operations |
| Emerging Markets Growth Fund | 12/31/97 |
| Emerging Markets Small Cap Growth Fund | 08/22/11 |
| Emerging Markets Opportunities Fund | 04/10/17 |
| International Small Cap Growth Fund | 09/17/07 |
| Micro Cap Growth Fund | 11/18/13 |
| Small Cap Growth Fund | 08/21/17 |
| Small/Mid Cap Growth Fund | 05/01/20 |
| Event Driven Fund | 08/26/13 |
The Emerging Markets Growth Fund and Small Cap Growth Fund each offer two classes of shares, designated as Institutional Class and Investor Class. Each class of shares represents an interest in the same portfolio of
investments of the respective Fund and voting privileges with respect to the Fund in general. Each class of shares has exclusive voting rights with respect to any matters involving only that class. The classes of each
Fund pay pro rata the costs of management of that Fund’s portfolio, including the investment advisory fee. Each class of a Fund bears the cost of its own transfer agency and shareholder servicing arrangements,
and any other class-specific expenses, which will result in differing expenses by class.
The
Emerging Markets Growth Fund seeks to maximize capital appreciation by investing primarily in equity securities of emerging markets companies.
The
Emerging Markets Small Cap Growth Fund seeks to maximize capital appreciation by investing primarily in equity securities of small capitalization emerging markets companies.
The
Emerging Markets Opportunities Fund seeks to maximize total return (the sum of capital appreciation and income) by investing primarily in emerging markets securities.
The
International Small Cap Growth Fund seeks to maximize capital appreciation by investing primarily in equity securities of smaller capitalization non-U.S. companies.
The
Micro Cap Growth Fund seeks to maximize capital appreciation by investing primarily in equity securities of micro capitalization U.S. companies.
The
Small Cap Growth Fund seeks to maximize capital appreciation by investing primarily in equity securities of small capitalization U.S. companies.
The
Small/Mid Cap Growth Fund seeks to maximize capital appreciation by investing in primarily in equity securities of small/medium capitalization U.S. companies.
The
Event Driven Fund seeks to provide positive returns over full-market cycles by investing primarily in a broad range of asset classes and securities, including derivatives.
The presentation of financial statements in conformity with U.S. generally accepted accounting principles ("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 amounts of income and expenses. Actual results may differ from those estimates. The Funds, which are investment companies within the
scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update ("ASU") 2013-08, follow accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, Financial Services-Investment Companies.
62
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
Securities Valuation
Investments in securities traded on a national securities exchange, including exchange-traded futures and options (including warrants), are valued at the last reported sales or settlement price on the day of
valuation and are generally classified as level 1. North and South American exchange-traded securities for which no sale was reported are valued at the most recent closing bid price from the exchange the security is
primarily traded on and are generally classified as level 1. All other exchange-traded securities for which no sale was reported are valued at the mean between closing bid and ask prices from the exchange the security
is primarily traded on and are also generally classified as level 1. Equity certificates are valued at the last sale price of the underlying security as of the close of the primary exchange. Long-term U.S. fixed
income securities are valued at the representative quoted bid price when held long or the representative quoted ask price if sold short or, if such prices are not available, at prices for securities of comparable
maturity, quality and type or as determined by an independent pricing service. Long-term non-U.S. fixed income securities are valued at the mean of the representative quoted bid and ask prices when held long or sold
short or, if such prices are not available, at prices for securities of comparable maturity, quality and type or as determined by an independent pricing service. The pricing service provider may employ methodologies
that utilize actual market transactions, broker-dealer supplied valuations or other techniques. Such techniques generally consider factors such as composite security prices, yields, maturities, call features, credit
ratings and developments relating to specific securities, in arriving at valuations. Fixed income securities are generally classified as level 2. The fair value analysis includes an analysis of the value of any
unfunded commitments.
Short-term investments with remaining maturities of 60 days or less at the time of purchase are stated at amortized cost, which approximates fair value. If amortized cost does not approximate fair value, short-term
securities are reported at fair value. These securities are generally classified as level 2. Swaps, forward foreign currency contracts and other financial derivatives are valued daily, primarily by an independent
pricing service using pricing models and are generally classified as level 2. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates,
yield curves, dividends and exchange rates. If valuations are not available from the independent pricing service or values received are deemed not representative of fair value, values will be obtained from a
third-party broker-dealer or counterparty. Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from an independent pricing service. In
addition, for the Emerging Markets Growth Fund, Emerging Markets Small Cap Growth, Emerging Markets Opportunities Fund, and International Small Cap Growth Fund, if quotations are not readily available, if the values
have been materially affected by events occurring after the closing of a foreign market, or if there has been a movement in the U.S. market that exceeds a certain threshold, assets may be valued at fair value as
determined in good faith by or under the direction of the Trust’s Board of Trustees. Events that may materially affect asset values that could cause a fair value determination include, but are not limited to:
corporate announcements relating to a specific security; natural and other disasters which may impact an entire market or region; and political and other events which may be global or impact a particular country or
region. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. To the extent utilized, securities would be classified as level 2 in the hierarchy described
below.
Securities for which market quotations are not readily available are valued at fair value as determined in good faith in accordance with procedures established by or under the direction of the Trust’s Board of
Trustees and are generally classified as level 3. Under these procedures, the Funds primarily employ a market-based approach, which may use related or comparable assets or liabilities, recent transactions, market
multiples, book values and other relevant information for the investment to determine the fair value of the investment. In addition, level 3 investments in certain early stage companies may be valued based upon
initial transaction prices with management conducting ongoing assessments to determine whether new information is available to support a fair value adjustment. The information management may consider in its ongoing
assessments may include, but are not limited to, actual or upcoming financing or third-party sale transactions, current or forecasted performance, or regulatory approval status updates. It is possible that estimated
values may differ significantly from the values that would have been used had a ready market existed for the investments, and such differences could be material.
Each Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the
valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
Level 1 – quoted prices for active markets for identical securities
63
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
Level 2 – significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The
following is a summary of the inputs used to value the Emerging Markets Growth Fund’s investments as of June 30, 2022:
| Assets | Total Value at June 30, 2022 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
| Common Stocks | ||||||||
| Africa | $49,421,351 | $49,421,351 | $— | $— | ||||
| Europe | 39,116,556 | 39,116,556 | — | —** | ||||
| Far East | 1,203,793,028 | 1,203,793,028 | — | — | ||||
| Middle East | 112,096,994 | 112,096,994 | — | — | ||||
| North America | 195,200,071 | 195,200,071 | — | — | ||||
| South America | 95,477,238 | 95,477,238 | — | — | ||||
| Short Term Investments | 150,921,464 | 150,921,464 | — | — | ||||
| Total | $1,846,026,702 | $1,846,026,702 | $— | $— |
| ** Level 3 security has zero value. |
The
following is a summary of the inputs used to value the Emerging Markets Small Cap Growth Fund’s investments as of June 30, 2022:
| Assets | Total Value at June 30, 2022 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
| Common Stocks | ||||||||
| Africa | $1,034,365 | $1,034,365 | $— | $— | ||||
| Europe | 535,226 | 535,226 | — | — | ||||
| Far East | ||||||||
| Australia | 1,920,133 | 1,920,133 | — | — | ||||
| Cambodia | 729,806 | 729,806 | — | — | ||||
| China | 29,780,500 | 29,780,500 | — | — | ||||
| India | 13,591,227 | 13,591,227 | — | — | ||||
| Indonesia | 3,778,775 | 3,778,775 | — | — | ||||
| Philippines | 491,625 | 491,625 | — | — | ||||
| South Korea | 4,336,169 | 4,336,169 | — | — | ||||
| Taiwan | 5,951,872 | 5,951,872 | — | — | ||||
| Thailand | 2,442,700 | 2,442,700 | — | — | ||||
| Vietnam | 6,421,851 | 2,194,684 | 4,227,167 | — | ||||
| Middle East | 5,458,438 | 5,458,438 | — | — | ||||
| North America | 4,237,708 | 4,237,708 | — | — | ||||
| South America | 7,606,212 | 7,606,212 | — | — | ||||
| Preferred Stocks | ||||||||
| South America | 1,040,870 | 1,040,870 | — | — | ||||
| Short Term Investments | 5,682,919 | 5,682,919 | — | — | ||||
| Total | $95,040,396 | $90,813,229 | $4,227,167 | $— |
64
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
The
following is a summary of the inputs used to value the Emerging Markets Opportunities Fund’s investments as of June 30, 2022:
| Assets | Total Value at June 30, 2022 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
| Common Stocks | $32,892,739 | $32,892,739 | $— | $— | ||||
| Short Term Investments | 3,095,420 | 3,095,420 | — | — | ||||
| Sovereign Bonds | 9,033,459 | — | 9,033,459 | — | ||||
| Total | $45,021,618 | $35,988,159 | $9,033,459 | $— |
The
following is a summary of the inputs used to value the International Small Cap Growth Fund’s investments as of June 30, 2022:
| Assets | Total Value at June 30, 2022 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
| Common Stocks | ||||||||
| Europe | $128,539,635 | $128,539,635 | $— | $— | ||||
| Far East | 39,539,000 | 39,539,000 | — | — | ||||
| North America | 35,326,337 | 35,326,337 | — | — | ||||
| South America | 5,046,884 | 5,046,884 | — | — | ||||
| Short Term Investments | 5,590,673 | 5,590,673 | — | — | ||||
| Total | $214,042,529 | $214,042,529 | $— | $— |
The following is a summary of the inputs used to value the Micro Cap Growth Fund’s investments as of June 30, 2022:
| Assets* | Total Value at June 30, 2022 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
| Common Stocks | $174,181,415 | $174,181,415 | $— | $— | ||||
| Short Term Investments | 7,324,399 | 7,324,399 | — | — | ||||
| Warrants | 29,579 | — | 29,579 | — | ||||
| Total | $181,535,393 | $181,505,814 | $29,579 | $— |
| * See Schedule of Investments for industry breakout. |
The following is a summary of the inputs used to value the Small Cap Growth Fund’s investments as of June 30, 2022:
| Assets* | Total Value at June 30, 2022 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
| Common Stocks | $433,190,445 | $433,190,445 | $— | $— | ||||
| Short Term Investments | 27,039,918 | 27,039,918 | — | — | ||||
| Total | $460,230,363 | $460,230,363 | $— | $— |
| * See Schedule of Investments for industry breakout. |
65
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
The
following is a summary of the inputs used to value the Small/Mid Cap Growth Fund’s investments as of June 30, 2022:
| Assets* | Total Value at June 30, 2022 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
| Common Stocks | $12,154,140 | $12,154,140 | $— | $— | ||||
| Short Term Investments | 733,708 | 733,708 | — | — | ||||
| Total | $12,887,848 | $12,887,848 | $— | $— |
| * See Schedule of Investments for industry breakout. |
The
following is a summary of the inputs used to value the Event Driven Fund’s investments as of June 30, 2022:
| Assets* | Total Value at June 30, 2022 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
| Bank Loans | $792,536 | $— | $792,536 | $— | ||||
| Common Stocks | ||||||||
| Auto Parts & Equipment | 4,989,716 | 4,989,716 | — | — | ||||
| Banks | 12,740,954 | 12,740,954 | — | — | ||||
| Biotechnology | 17,557,764 | 17,557,764 | — | — | ||||
| Commercial Services | 2,455,280 | 2,455,280 | — | — | ||||
| Engineering & Construction | 7,338,299 | 7,338,299 | — | — | ||||
| Entertainment | 10,288,972 | 10,288,972 | — | — | ||||
| Financial Services | 6,364,492 | 6,364,492 | — | — | ||||
| Healthcare - Products | 564,073 | 564,073 | — | — | ||||
| Holding Companies - Diversified | 19,939,758 | 18,084,159 | 1,855,599 | —** | ||||
| Leisure Time | 1,799,974 | 1,799,974 | — | — | ||||
| Metal Fabricate/Hardware | 3,184,842 | 3,184,842 | — | — | ||||
| Savings & Loans | 4,591,665 | 4,591,665 | — | — | ||||
| Software | 2,057,408 | 2,057,408 | — | — | ||||
| Transportation | 6,388,704 | 6,388,704 | — | — | ||||
| Convertible Corporate Bonds | 2,833,972 | — | 2,833,972 | — | ||||
| Corporate Bonds | 43,639,639 | — | 43,639,639 | — | ||||
| Foreign Issuer Bonds | 652,449 | — | 652,449 | — | ||||
| Preferred Stocks | 3,670,556 | 3,670,556 | — | — | ||||
| Private Investment In Public Equity (PIPES) | 1,316,914 | 1,316,914 | — | — | ||||
| Purchased Call Options | 42,849 | 42,849 | — | — | ||||
| Short Term Investments | 22,877,045 | 22,877,045 | — | — | ||||
| Warrants | 278,219 | 241,572 | 36,647 | — | ||||
| Total | $176,366,080 | $126,555,238 | $49,810,842 | $— |
| Liabilities | ||||||||
| Common Stocks Sold Short | $(373,751) | $(373,751) | $— | $— | ||||
| Corporate Bonds Sold Short | (4,840,172) | — | (4,840,172) | — | ||||
| Exchange-Traded Funds Sold Short | (36,203,226) | (36,203,226) | — | — | ||||
| Written Call Options | (17,574) | (17,574) | — | — | ||||
| Total | $(41,434,723) | $(36,594,551) | $(4,840,172) | $— |
66
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
| Other Financial Instruments | TotalValue at June 30, 2022 | Level 1Quoted Price | Level 2Significant Observable Inputs | Level 3Significant Unobservable Inputs | ||||
| Total Return Swaps - Liabilities*** | $(144,659) | $— | $(144,659) | $— | ||||
| Total Other Financial Instruments | $(144,659) | $— | $(144,659) | $— |
| * See Schedule of Investments for industry breakout. |
| ** Level 3 security has zero value. |
| *** Swaps are reflected as the unrealized appreciation (depreciation) on the instrument. |
As
of June 30, 2022, none of the Funds held Level 3 investments, other than as disclosed for Emerging Markets Growth Fund and Event Driven Fund.
Securities Sold Short
The Event Driven Fund is engaged in selling securities short, which obligates it to replace a borrowed security by purchasing it at market price at the time of replacement. The Fund incurs a loss if the price of the
security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund realizes a gain if the price of the security declines between those dates. Gains are
limited to the price at which the Fund sold the security short, while losses are potentially unlimited in size.
The Fund is required to establish a margin account with the broker lending the security sold short. While the short sale is outstanding, the broker retains the proceeds of the short sale and the Fund must maintain a
deposit with the broker consisting of cash and securities having a value equal to a specified percentage of the value of the securities sold short. Such deposit is included in “Collateral held at custodian for
the benefit of brokers” in the Statement of Assets and Liabilities. The Fund is obligated to pay any dividends or interest due on securities sold short. Such dividends and interest are recorded as an expense to
the Fund in the Statement of Operations.
Federal Income Taxes
No provision is made for Federal income taxes since each Fund has elected to be taxed as a "regulated investment company" under Subchapter M of the Internal Revenue Code (the "Code") and has made and declared all
the required distributions to its shareholders in amounts sufficient to relieve each Fund from all or substantially all Federal income and excise taxes under provisions of current Federal tax law.
Each Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. Taxable
years ending 2021, 2020, 2019, and 2018 remain open to Federal and state audit. As of June 30, 2022, management has evaluated the application of these standards to each Fund, and has determined that no provision for
income tax is required in each Fund's financial statements for uncertain tax provisions. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements
of Operations. During the year, the Funds did not incur any interest or penalties. The Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be
recoverable. Foreign taxes are provided for based on the Funds' understanding of the tax rules and regulations that exist in the foreign markets in which they invest. Any deferred foreign capital gains tax is accrued
based upon net unrealized gains, and is payable upon sale of such investment.
The
amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP.
For the year ended December 31, 2021, reclassifications were recorded to distributable earnings (deficit) and paid-in capital for any permanent tax differences. These reclassifications relate primarily to foreign
currency losses, sales of passive foreign investment companies ("PFIC"), net operating losses and foreign capital gain taxes paid. Results of operations and net assets were not affected by these reclassifications.
67
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
| Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | Emerging Markets Opportunities Fund | International Small Cap Growth Fund | ||||
| Paid-in capital | $— | $(960,936) | $— | $— | |||
| Total distributable earnings (deficit) | — | 960,936 | — | — |
| Micro Cap Growth Fund | Small Cap Growth Fund | Small/Mid Cap Growth Fund | Event Driven Fund | ||||
| Paid-in capital | $— | $— | $— | $28,067 | |||
| Total distributable earnings (deficit) | — | — | — | (28,067) |
Accumulated capital losses represent net capital loss carryovers that may be available for an unlimited period to offset future realized capital gains and thereby reduce future capital gains distributions. Capital
loss carryovers retain the character of the original loss. The following table shows the amounts of capital loss carryovers, if any, by each of the applicable Funds as of December 31, 2021:
| Not Subject to Expiration | ||||
| Fund | Short-Term | Long-Term | ||
| Emerging Markets Growth Fund | $— | $— | ||
| Emerging Markets Small Cap Growth Fund | (20,059,007) | — | ||
| Emerging Markets Opportunities Fund | — | — | ||
| International Small Cap Growth Fund | — | — | ||
| Micro Cap Growth Fund | — | — | ||
| Small Cap Growth Fund | — | — | ||
| Small/Mid Cap Growth Fund | — | — | ||
| Event Driven Fund | — | — | ||
During the year ended December 31, 2021, the Emerging Markets Small Cap Growth Fund utilized $20,005,528 of capital loss carryforwards.
Pursuant to Federal income tax rules applicable to regulated investment companies, the Funds may elect to treat capital losses between November 1 and December 31 as occurring on the first day of the following tax
year. For the year ended December 31, 2021, the following qualified late-year losses were deferred and recognized on January 1, 2022:
| Fund | Total Capital Loss Deferral | Total | ||
| Emerging Markets Growth Fund | $29,373,954 | $29,373,954 | ||
| Emerging Markets Small Cap Growth Fund | — | — | ||
| Emerging Markets Opportunities Fund | 829,264 | 829,264 | ||
| International Small Cap Growth Fund | — | — | ||
| Micro Cap Growth Fund | 685,839 | 685,839 | ||
| Small Cap Growth Fund | 1,452,902 | 1,452,902 | ||
| Small/Mid Cap Growth Fund | 224,116 | 224,116 | ||
| Event Driven Fund | 621,985 | 621,985 |
68
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
Distributions to
Shareholders
The
tax character of distributions paid during the years ended December 31, 2021, and December 31, 2020, were as follows:
| Fund | Year | Ordinary Income | Long-Term Capital Gain | Return of Capital | Total Distributions | |||||
| Emerging Markets Growth Fund | 2021 | $118,399,989 | $225,900,006 | $— | $344,299,995 | |||||
| 2020 | 16,886,001 | 38,607,483 | — | 55,493,484 | ||||||
| Emerging Markets Small Cap Growth Fund | 2021 | 49,512 | — | — | 49,512 | |||||
| 2020 | 556,757 | — | — | 556,757 | ||||||
| Emerging Markets Opportunities Fund | 2021 | 1,367,786 | 1,825,005 | — | 3,192,791 | |||||
| 2020 | 379,497 | 743,583 | — | 1,123,080 | ||||||
| International Small Cap Growth Fund | 2021 | 35,600,012 | 36,999,988 | — | 72,600,000 | |||||
| 2020 | 3,163,154 | 19,239,957 | — | 22,403,111 | ||||||
| Micro Cap Growth Fund | 2021 | 55,500,006 | 68,499,993 | — | 123,999,999 | |||||
| 2020 | 10,322,938 | 48,426,960 | — | 58,749,898 | ||||||
| Small Cap Growth Fund | 2021 | 41,199,996 | 48,000,010 | — | 89,200,006 | |||||
| 2020 | 2,296,873 | 19,232,110 | — | 21,528,983 | ||||||
| Small/Mid Cap Growth Fund | 2021 | 1,251,729 | 501,538 | — | 1,753,267 | |||||
| 2020 | 202,118 | — | — | 202,118 | ||||||
| Event Driven Fund | 2021 | 13,322,483 | 9,400,443 | — | 22,722,926 | |||||
| 2020 | 2,341,243 | 2,388,109 | — | 4,729,352 |
As
of December 31, 2021, the components of net assets on a tax basis were as follows:
| Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | Emerging Markets Opportunities Fund | International Small Cap Growth Fund | ||||
| Undistributed ordinary income | $— | $— | $6,074 | $5,402,859 | |||
| Undistributed long-term capital gain | 2,015,660 | — | — | 6,858,913 | |||
| Accumulated earnings | 2,015,660 | — | 6,074 | 12,261,772 | |||
| Paid-in capital | 1,852,569,075 | 116,286,819 | 46,570,904 | 271,038,184 | |||
| Accumulated capital and other losses | (29,373,954) | (20,059,007) | (829,264) | — | |||
| Unrealized appreciation (depreciation) on investments, securities sold short, warrants and swaps | 501,893,262 | 20,416,569 | 11,979,852 | 49,012,183 | |||
| Net assets | $2,327,104,043 | $116,644,381 | $57,727,566 | $332,312,139 |
69
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
| Micro Cap Growth Fund | Small Cap Growth Fund | Small/Mid Cap Growth Fund | Event Driven Fund | ||||
| Undistributed ordinary income | $— | $— | $— | $178,672 | |||
| Undistributed long-term capital gain | 13,811,605 | 9,211,794 | 461,634 | 2,570,647 | |||
| Accumulated earnings | 13,811,605 | 9,211,794 | 461,634 | 2,749,319 | |||
| Paid-in capital | 207,711,433 | 463,581,741 | 18,304,267 | 192,491,819 | |||
| Accumulated capital and other losses | (685,839) | (1,452,902) | (224,116) | (621,985) | |||
| Unrealized appreciation (depreciation) on investments, securities sold short, warrants and swaps | 120,432,052 | 137,971,008 | 4,631,964 | 9,015,385 | |||
| Net assets | $341,269,251 | $609,311,641 | $23,173,749 | $203,634,538 |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation on investments and net unrealized appreciation and/or depreciation on derivatives for Federal income tax purposes as
of June 30, 2022, were as follows:
| Fund | Basis | Gross Appreciation | Gross Depreciation | Net Appreciation/ Depreciation | ||||
| Emerging Markets Growth Fund | $1,732,284,845 | $225,731,307 | $(111,989,450) | $113,741,857 | ||||
| Emerging Markets Small Cap Growth Fund | 94,829,834 | 9,081,268 | (8,870,706) | 210,562 | ||||
| Emerging Markets Opportunities Fund | 42,869,835 | 4,950,175 | (2,798,392) | 2,151,783 | ||||
| International Small Cap Growth Fund | 247,304,229 | 13,120,056 | (46,381,756) | (33,261,700) | ||||
| Micro Cap Growth Fund | 181,883,821 | 21,940,471 | (22,288,899) | (348,428) | ||||
| Small Cap Growth Fund | 488,933,660 | 29,573,436 | (58,276,733) | (28,703,297) | ||||
| Small/Mid Cap Growth Fund | 13,615,839 | 732,378 | (1,460,369) | (727,991) | ||||
| Event Driven Fund | 133,727,909 | 16,215,351 | (14,829,326) | 1,386,025 |
The
differences between book-basis and tax-basis unrealized appreciation are attributable primarily to the tax deferral of losses on wash sales and PFIC mark-to-market.
Foreign Currency Spot
Contracts
The Funds enter into foreign currency spot contracts to facilitate transactions in foreign currency denominated securities. These spot contracts are typically open for 2 to 5 days, depending on the settlement terms
of the underlying security transaction. On June 30, 2022, the Funds had foreign currency spot contracts outstanding under which they are obligated to exchange currencies at specified future dates. The net unrealized
appreciation or depreciation on spot contracts is reflected as receivable for investment securities sold or payable for investment securities purchased in the Statements of Assets and Liabilities.
Foreign Currency
Translation
The
value of securities, currencies and other assets and liabilities not denominated in U.S. dollars are translated into U.S. dollar values based upon the current rates of exchange on the date of the Funds’
valuations.
Net realized foreign exchange gains or losses which are reported by the Funds result from currency gains and losses on transaction hedges arising from changes in exchange rates between the trade and settlement dates
on forward contract transactions, and the difference between the amounts accrued for dividends, interest, and foreign taxes and the amounts actually received or paid in U.S. dollars for these items. Net unrealized
foreign exchange gains and losses result from changes in the U.S. dollar value of assets and liabilities (other than investments in securities), which are denominated in foreign currencies, as a result of changes in
exchange rates.
70
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
Net realized gain (loss) on foreign currency contracts on portfolio hedges result from the use of forward contracts to hedge portfolio positions denominated or quoted in a particular currency in order to reduce or
limit exposure in that currency.
The Funds do not isolate that portion of the results of operations which results from fluctuations in foreign exchange rates on investments. These fluctuations are included with the net realized gain (loss) on
investments and the net change in unrealized appreciation (depreciation) on investments.
Indemnifications
Under the Trust’s organizational documents, the officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course
of business, the Trust enters into contracts that provide general indemnifications to other parties. A Fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be
made against a Fund that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Securities Transactions,
Income and Commitments
The Trust records security transactions on trade date. Gains and losses realized on sales of securities are determined on a specific identification basis. Dividend income is recognized on the ex-dividend date, and
interest income is recognized on an accrual basis. Premiums on securities are amortized over the period remaining until first call date, if any, or if none, the remaining life of the security and discounts are
accreted over the remaining life of the security for financial reporting purposes. Withholding taxes on foreign dividends and interest have been provided for in accordance with the Trust’s understanding of the
applicable country’s tax rules and rates. Non-cash dividends are recognized as investment income at the fair value of the property received.
Pursuant to the terms of certain of the senior unsecured loan agreements, certain Funds may have unfunded loan commitments, which are callable on demand. Each such Fund will have available with its custodian, cash
and/or liquid securities having an aggregate value at least equal to the amount of the unfunded senior loan commitments. At June 30, 2022, the Funds had no unfunded senior loan commitments.
Certain Funds may invest in early-stage companies that may require additional contributions or funding if certain performance milestones are met. Management continuously assesses whether these companies will achieve
these performance milestones and considers the impact of these commitments as they become due. Additionally, in connection with certain investments a Fund may provide commitments for future investments. At June 30,
2022, the Funds had no such outstanding commitments.
B. INVESTMENTS IN
DERIVATIVES
Certain Funds use derivative instruments such as swaps, futures, options, swaptions, and forward foreign currency contracts in connection with their respective investment strategies. During the period January 1,
2022, through June 30, 2022, the Emerging Markets Opportunities Fund primarily utilized: 1) interest rate swaps to hedge against interest rate fluctuation and enable the parties involved to exchange fixed and floating
cash flows; and 2) options to both hedge exposure and provide exposure to certain market segments or specific securities. During the period January 1, 2022, through June 30, 2022, the Micro Cap Growth Fund primarily
utilized: 1) warrants to both hedge exposure and provide exposure to certain market segments or specific securities. During the period January 1, 2022, through June 30, 2022, the Event Driven Fund primarily utilized:
1) total return swaps to gain exposure to certain sectors and manage volatility; and 2) options, including warrants, to both hedge exposure and provide exposure to certain market segments or specific securities.
Detail regarding each derivative type is included below.
Swap Contracts
The Emerging Markets Opportunities Fund and Event Driven Fund engage in various swap transactions, including forward rate agreements and interest rate, currency, volatility, index, and total return swaps, primarily
to manage duration and yield curve risk, or as alternatives to direct investments. Swaps that are centrally cleared are exposed to the creditworthiness of the clearing organizations (and, consequentially, that of
their members generally, banks and
71
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
broker-dealers) involved in the
transaction. Centrally cleared swaps are valued daily and unrealized gains or losses are recorded in a variation margin account. The Fund receives from or pays to the clearing organization a specified amount of cash
based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss.
Interest rate swaps are agreements between two parties to exchange cash flows based on a notional principal amount. A Fund may elect to pay a fixed rate and receive a floating rate or receive a fixed rate and pay a
floating rate on a notional principal amount. The net interest received or paid on interest rate swap agreements is accrued daily as interest income/expense. Interest rate swaps are marked-to-market daily using fair
value estimates provided by an independent pricing service. Changes in value, including accrued interest, are recorded as changes in net unrealized appreciation (depreciation) on the Statements of Operations.
Unrealized appreciation is reported as an asset and unrealized depreciation is reported as a liability on the Statements of Assets and Liabilities. Gains or losses are realized upon termination of the contracts. The
risk of loss under a swap contract may exceed the amount recorded as an asset or a liability.
Total return swap contracts are arrangements to exchange a market or security linked return for a periodic payment, based on a notional principal amount, in order to hedge sector exposure and to manage exposure to
specific sectors or industries and/or to gain exposure to specific markets/countries and to specific sectors/industries. To the extent that the total return of the security, index, or other financial measure
underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty. Total return swap contracts are marked to
market daily based upon quotations from market makers and the change, if any, is recorded as a change in net unrealized appreciation (depreciation) on the Statements of Operations. Unrealized appreciation is reported
as an asset and unrealized depreciation is reported as a liability on the Statements of Assets and Liabilities. Payments received or made are recorded as realized gains or losses. Gains or losses are realized upon
termination of the contracts. Each Fund’s maximum risk of loss from counterparty risk is the fair value of the contract.
Volatility swaps are forward contracts on the future realized volatility of an underlying instrument. Volatility swaps are generally used to speculate on future volatility levels, trade the spread between realized
and implied volatility or hedge volatility exposure of other positions. Changes in value are recorded as changes in net unrealized appreciation (depreciation) on the Statements of Operations. Unrealized gains are
reported as an asset and unrealized losses are reported as a liability on the Statements of Assets and Liabilities. Gains or losses are realized upon termination of the contracts. The risk of loss under a volatility
swap contract is dependent upon the volatility of the underlying instrument.
Under the terms of a credit default swap, one party acts as a guarantor receiving a periodic payment that is a fixed percentage applied to a notional amount. In return, the party agrees to purchase the notional
amount of the underlying instrument, at par, if a credit event occurs during the term of the contract. A Fund may enter into credit default swaps in which the Fund acts as guarantor (a seller of protection), and may
enter into credit default swaps in which the counterparty acts as guarantor (a buyer of protection). Premiums paid to or by the Funds are accrued daily and included in net realized gain (loss) on swap contracts. The
contracts are marked-to-market daily using fair value estimates provided by an independent pricing service. Changes in value are recorded as unrealized appreciation (depreciation) on the Statements of Operations.
Unrealized gains are reported as an asset and unrealized losses are reported as a liability on the Statements of Assets and Liabilities. Gains or losses are realized upon termination of the contracts. The risk of loss
under a swap contract may exceed the amount recorded as an asset or a liability. The notional amount of a swap contract is the reference amount pursuant to which the counterparties make payments. For swaps in which
the referenced obligation is an index, in the event of default of any debt security included in the corresponding index, the Fund pays or receives the percentage of the corresponding index that the defaulted security
comprises (1) multiplied by the notional value and (2) multiplied by the ratio of one minus the ratio of the market value of the defaulted debt security to its par value.
Risks associated with swap contracts include changes in the returns of underlying instruments and/or interest rates, failure of the counterparties to perform under the contracts’ terms and the possible lack of
liquidity with respect to the contracts. For centrally cleared swap contracts, counterparty risk is limited due to the role of the clearinghouse. Credit default swaps can involve greater risks than if an investor had
invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to counterparty credit risk, leverage risk, hedging risk, correlation risk, and liquidity
risk. The Funds disclose swap contracts on a gross basis, with no netting of contracts held with the same counterparty.
72
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
Options Contracts
The Funds may use options contracts, which include warrants, to hedge downside risk, produce incremental earnings or protect against market changes in the value of equities or interest rates. The Funds may write
covered call and put options on futures, swaps, securities, or currencies the Funds own or in which they may invest. Writing put options tends to increase a Fund’s exposure to the underlying instrument. Writing
call options tends to decrease a Fund’s exposure to the underlying instrument. When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked
to market to reflect the current value of the option written. These liabilities are reflected as written options outstanding in the Schedules of Investments. Premiums received from writing options that expire are
treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against amounts paid on the underlying future, swap, security or currency transaction
to determine the realized gain or loss. A Fund, as a writer of an option, has no control over whether the underlying future, swap, security, or currency may be sold (call) or purchased (put) and, as a result, bears
the market risk of an unfavorable change in the price of the future, swap, security, or currency underlying the written option. The risk exists that a Fund may not be able to enter into a closing transaction because
of an illiquid market. In addition, to the extent a Fund purchases an over-the-counter (“OTC”) option, it is subject to credit risk that the counterparty to the trade does not perform under the
contract’s terms. The Funds are not subject to credit risk on OTC options written as the counterparty has already performed its obligation by paying the premium at the inception of the contract.
The Funds may also purchase put and call options. Purchasing call options tends to increase a Fund’s exposure to the underlying instrument. Purchasing put options tends to decrease a Fund’s exposure to
the underlying instrument. A Fund pays a premium, which is included in its Schedule of Investments as an investment and subsequently marked-to-market to reflect the current value of the option. Premiums paid for
purchasing options that expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options that are exercised or closed
are added to the amounts paid or offset against the proceeds on the underlying future, swap, security or currency transaction to determine the realized gain or loss. When entering into purchased option contracts, a
Fund bears the risk of securities prices moving unexpectedly, in which case, a Fund may not achieve the anticipated benefits of the purchased option contracts; however, the risk of loss is limited to the premium
paid.
Forward Foreign Currency
Contracts
Certain Funds use forward foreign currency contracts to manage foreign currency, to produce incremental earnings or to hedge existing positions. A forward foreign currency contract involves an obligation to purchase
or sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are principally
traded in the inter-bank market conducted directly between currency traders (usually large commercial banks) and their customers.
The market value of a forward foreign currency contract fluctuates with changes in currency exchange rates. Outstanding forward foreign currency contracts are valued daily at current market rates and the resulting
change in market value is recorded as change in net unrealized appreciation or depreciation on the Statements of Operations. When a forward foreign currency contract is settled, the Fund records a realized gain or
loss equal to the difference between the value at the time the forward foreign currency contract was opened and the value at the time it was settled. A forward foreign currency contract may involve market risk in
excess of the unrealized appreciation (depreciation) reflected on the Statements of Assets and Liabilities. In addition, the Funds could be exposed to credit risk if the counterparties are unable or unwilling to meet
the terms of the contracts or market risk if the value of the foreign currency changes unfavorably.
Equity Certificates
Certain Funds may invest in equity certificates, which allow the Funds to participate in the appreciation (depreciation) of the underlying security without actually owning the underlying security. These instruments
are purchased pursuant to an agreement with a financial institution and are valued at a calculated market price based on the value of the underlying security in accordance with the agreement. These equity certificates
are subject to the credit risk of the issuing financial institution. There is no off-balance sheet risk associated with equity certificates and the Funds’ potential loss is limited to the purchase price of the
securities. The Funds are exposed to credit risk associated with the counterparty to the transaction, which is monitored by the Funds’ management on a periodic basis. A Fund’s equity certificates are not
subject to any master netting agreement.
73
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
Derivative Investment
Holdings Categorized by Risk Exposure
Each Fund is subject to the FASB’s “Disclosures about Derivative Instruments and Hedging Activities” (the “Derivatives Statement”). The Derivatives Statement amends and expands
disclosures about derivative instruments and hedging activities. The Derivatives Statement is intended to improve financial reporting about derivative instrument by requiring enhanced disclosures to enable investors
to better understand how and why the Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Funds’ financial position and results of operations. Each Fund's
derivative holdings do not qualify for hedge accounting treatment and as such are recorded at current fair value.
The
following table sets forth the fair value and the location in the Statements of Assets and Liabilities of the Micro Cap Growth Fund's derivative contracts by primary risk exposure as of June 30, 2022:
| Asset derivatives | ||||
| Risk exposure category | Statements of Assets and Liabilities location | Fair Value | ||
| Equity contracts | Warrant securities, at fair value | $29,579 | ||
| Total | $29,579 | |||
The
following table sets forth the fair value and the location in the Statements of Assets and Liabilities of the Event Driven Fund’s derivative contracts by primary risk exposure as of June 30, 2022:
| Asset derivatives | ||||
| Risk exposure category | Statements of Assets and Liabilities location | Fair Value | ||
| Equity contracts | Purchased options, at fair value | $42,849 | ||
| Equity contracts | Warrant securities, at fair value | 278,219 | ||
| Total | $321,068 | |||
| Liabilities derivatives | ||||
| Risk exposure category | Statements of Assets and Liabilities location | Fair Value | ||
| Equity contracts | Unrealized depreciation on open OTC swap contracts | $144,659 | ||
| Equity contracts | Written options, at fair value | 17,574 | ||
| Total | $162,233 | |||
The
following table sets forth the Emerging Markets Opportunities Fund’s net realized gain (loss) by primary risk exposure and by type of derivative contract for the period January 1, 2022 through June 30, 2022:
| Amount of net realized gain (loss) on derivatives | ||||||
| Risk exposure category | ||||||
| Derivative | Equity contracts | Interest rate contracts | Total | |||
| Purchased options contracts | $158,010 | $— | $158,010 | |||
| Swap contracts | — | 63,890 | 63,890 | |||
| Total | $158,010 | $63,890 | $221,900 | |||
74
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
The
following table sets forth the Event Driven Fund’s net realized gain (loss) by primary risk exposure and by type of derivative contract for the period January 1, 2022 through June 30, 2022:
| Amount of net realized gain (loss) on derivatives | ||||
| Risk exposure category | ||||
| Derivative | Equity contracts | Total | ||
| Purchased options contracts | $(59,567) | $(59,567) | ||
| Swap contracts | 1,277,972 | 1,277,972 | ||
| Warrants | (236,545) | (236,545) | ||
| Total | $981,860 | $981,860 | ||
The gross notional amount and/or the number of contracts for the Emerging Markets Opportunities Fund as of June 30, 2022, are included on the Schedule of Investments. The quarterly average values of derivative
investments for the period January 1, 2022 through June 30, 2022 is set forth in the table below:
| Quarterly Derivative Averages | ||||
| Derivative | Quarterly Average | $ Amount/ Number | ||
| Purchased options contracts | number of contracts | 1,538,462 | ||
The
following table sets forth the Micro Cap Growth Fund's change in net unrealized appreciation (depreciation) by primary risk exposure and by type of derivative contract for the period January 1, 2022 through June 30,
2022:
| Change in net unrealized appreciation (depreciation) on derivatives | ||||
| Risk exposure category | ||||
| Derivative | Equity contracts | Total | ||
| Warrants | $(6,379) | $(6,379) | ||
| Total | $(6,379) | $(6,379) | ||
The gross notional amount and/or the number of contracts for the Micro Cap Growth Fund as of June 30, 2022, are included on the Schedule of Investments. The quarterly average values of derivative investments for the
period January 1, 2022 through June 30, 2022, is set forth in the table below:
| Quarterly Derivative Averages | ||||
| Derivative | Quarterly Average | $ Amount/ Number | ||
| Warrants | number of contracts | 25,355 | ||
75
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
The
following table sets forth the Event Driven Fund’s change in net unrealized appreciation (depreciation) by primary risk exposure and by type of derivative contract for the period January 1, 2022 through June 30,
2022:
| Change in net unrealized appreciation (depreciation) on derivatives | ||||
| Risk exposure category | ||||
| Derivative | Equity contracts | Total | ||
| Written options contracts | $189,034 | $189,034 | ||
| Purchased options contracts | (584,436) | (584,436) | ||
| Swap contracts | (106,741) | (106,741) | ||
| Warrants | (486,752) | (486,752) | ||
| Total | $(988,895) | $(988,895) | ||
The gross notional amount and/or the number of contracts for the Event Driven Fund as of June 30, 2022, are included on the Schedule of Investments. The quarterly average values of derivative investments for the
period January 1, 2022 through June 30, 2022, is set forth in the table below:
| Quarterly Derivative Averages | ||||
| Derivative | Quarterly Average | $ Amount/ Number | ||
| Written options contracts | number of contracts | (758) | ||
| Purchased options contracts | number of contracts | 687 | ||
| Swap contracts | gross notional amount | $538,756 | ||
| Warrants | number of contracts | 1,244,024 | ||
Disclosures about
Offsetting Assets and Liabilities
The Funds are party to various agreements, including International Swaps and Derivatives Association Agreements and related Credit Support Annexes (“Master Netting Agreements” or “MNA”),
which govern the terms of certain transactions with select counterparties. MNAs are designed to reduce counterparty risk associated with the relevant transactions by establishing credit protection mechanisms and
providing standardization as a means of improving legal certainty. As MNAs are specific to the unique operations of different asset types, they allow each Fund to close out and net its total exposure to a counterparty
in the event of default with respect to all of the transactions governed under a single agreement with that counterparty. MNAs can also help reduce counterparty risk by specifying collateral posting requirements at
pre-arranged exposure levels. Securities and cash pledged as collateral are reflected as assets in the Statements of Assets and Liabilities as either a component of "Investment securities at fair value" or "Deposits
at broker for securities sold short".
For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to MNAs or similar arrangements on the Statements of Assets and Liabilities. The settlement of
futures contracts, swap contracts and exchange-traded purchased options is guaranteed by the clearinghouse or exchange the instrument is traded on and is not subject to arrangements with particular counterparties. For
that reason, these instruments are excluded from the below disclosure.
76
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
The following table presents the Event Driven Fund’s financial and derivative liabilities subject to Master Netting Agreements by type, net of amounts available for offset under a MNA and net of the related
collateral received by the Event Driven Fund as of June 30, 2022:
| Description | Gross Amounts Recognized in Statements of Assets and Liabilities | Derivatives Available for Offset | Collateral Received/ (Pledged) | Net Amount | ||||
| Unrealized depreciation on open OTC swap contracts | $(144,659) | $— | $— | $(144,659) |
C. INVESTMENT
ADVISORY FEES, TRANSACTIONS WITH AFFILIATES, AND ADMINISTRATIVE FEES
Driehaus Capital Management LLC (“DCM” or the “Adviser”), a registered investment adviser, serves as the investment adviser to the Funds. As of June 30, 2022, the Driehaus Trust Company
(“DTC”) has authority over a controlling interest in the Adviser that is owned by Driehaus Capital Holdings LLLP. As of June 30, 2022, DTC had authority over a controlling interest in the Emerging Markets
Opportunities Fund and substantial, non-controlling interests in certain other Funds.
In return for its services to the Funds, the Adviser receives monthly fees. Emerging Markets Growth Fund pays the Adviser a monthly fee computed and accrued daily at an annual rate of 1.05% on the first $1.5 billion
and 0.75% in excess of $1.5 billion of average daily net assets. Emerging Markets Small Cap Growth Fund pays the Adviser a monthly fee computed and accrued daily at the annual rate of 1.10% of average daily net
assets. Emerging Markets Opportunities Fund pays the Adviser a management fee computed and accrued daily at the annual rate of 0.90% of average daily net assets. International Small Cap Growth Fund pays the Adviser a
monthly fee computed and accrued daily at an annual rate of 1.00% of average daily net assets. Micro Cap Growth Fund pays the Adviser a monthly fee computed and accrued daily at an annual rate of 1.25% of average
daily net assets. Small Cap Growth Fund and Small/Mid Cap Growth pay the Adviser a monthly fee computed and accrued daily at an annual rate of 0.60% of average daily net assets. Event Driven Fund pays the Adviser a
monthly fee computed and accrued daily at the annual rate of 1.00% of average daily net assets.
The Adviser has entered into a contractual agreement to cap Emerging Markets Small Cap Growth Fund’s annual operating expenses (other than interest, taxes, brokerage commissions, dividends and interest on
short sales and other portfolio transaction expenses and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of the Fund’s business) at 1.24% of average daily net
assets until April 30, 2023. Prior to December 31, 2020, the cap was 1.45%. DCM is entitled to recoupment for previously waived fees and reimbursed expenses to the extent that the Fund’s expense ratio remains
below the operating expense cap in place at the time of the waiver and the current operating expense cap for a period not to exceed three years from the date on which the waiver or reimbursement was made. For the
period January 1, 2021 through June 30, 2022, DCM waived fees for Emerging Markets Small Cap Growth Fund totaling $82,550 under this agreement.
DCM entered into a contractual agreement to cap the Emerging Markets Opportunities Fund’s annual ordinary operating expenses (other than interest, taxes, brokerage commissions, dividends and interest on short
sales, other investment-related costs, acquired fund fees and expenses, and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of the Fund’s business) at 0.99% of
average daily net assets until April 30, 2023. DCM is entitled to recoupment for previously waived fees and reimbursed expenses to the extent that the Fund’s expense ratio remains below the operating expense cap
in place at the time of the waiver and the current operating expense cap for a period not to exceed three years from the date on which the waiver or reimbursement was made. For the period January 1, 2021 through June
30, 2022, DCM waived fees for Emerging Markets Opportunities Fund totaling $76,135 under this agreement.
DCM has entered into a contractual agreement to cap Small Cap Growth Fund’s annual operating expenses (other than interest, taxes, brokerage commissions, dividends and interest on short sales and other
portfolio transaction expenses and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of the Fund’s business) at 1.20% of average daily net assets for the Investor
Class and 0.95% of average daily net assets for the Institutional Class until April 30, 2023. DCM is entitled to recoupment for previously waived fees and reimbursed expenses to the extent that the Fund’s
expense ratio remains below the operating expense cap in place at the time of the
77
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
waiver and the current operating
expense cap for a period not to exceed three years from the date on which the waiver or reimbursement was made. For the period January 1, 2021 through June 30, 2022, DCM did not reimburse or recoup any fees for the
Investor or Institutional Class shares of the Small Cap Growth Fund under this agreement.
DCM entered into a contractual agreement to cap Small/Mid Cap Growth Fund’s annual operating expenses (other than interest, taxes, brokerage commissions, dividends and interest on short sales and other
portfolio transaction expenses and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of the Fund’s business) at 0.95% of average daily net assets until May 1, 2023.
For a period of three years subsequent to the Fund’s commencement of operations on May 1, 2020, DCM is entitled to recoupment of previously waived fees and reimbursed expenses to the extent that the expense
ratio remains below the operating expense cap in place at the time of the waiver and the current operating expense cap for a period not to exceed three years from the date on which the waiver or reimbursement was
made. For the period January 1, 2021 through June 30, 2022, DCM waived fees for Small/Mid Cap Growth Fund totaling $35,808 under this agreement.
The
table below indicates the amount of fees available for recoupment by DCM in future periods:
| Period ended December 31 | Emerging Markets Small Cap Growth Fund | Emerging Markets Opportunities Fund | Small/Mid Cap Growth Fund | |||
| 2023 | $171,531 | $230,617 | $73,297 | |||
| 2024 | 126,032 | 191,639 | 75,963 | |||
| 2025 | 82,550 | 76,135 | 35,808 | |||
| Total | $380,113 | $498,391 | $185,068 |
The Emerging Markets Growth Fund incurred $9,969,191 for investment advisory fees during the six months ended June 30, 2022, of which $1,547,460 was payable to DCM at June 30, 2022. The Emerging Markets Small Cap
Growth Fund incurred $583,240 for investment advisory fees during the six months ended June 30, 2022, of which $75,124 was payable to DCM at June 30, 2022. The Emerging Markets Opportunities Fund incurred $228,111 for
investment advisory fees during the six months ended June 30, 2022, of which $22,765 was payable to DCM at June 30, 2022. The International Small Cap Growth Fund incurred $1,354,296 for investment advisory fees during
the six months ended June 30, 2022, of which $189,039 was payable to DCM at June 30, 2022. The Micro Cap Growth Fund incurred $1,488,785 for investment advisory fees during the six months ended June 30, 2022, of which
$197,542 was payable to DCM at June 30, 2022. The Small Cap Growth Fund incurred $1,496,013 for investment advisory fees during the six months ended June 30, 2022, of which $227,574 was payable to DCM at June 30,
2022. The Small/Mid Cap Growth Fund incurred $54,401 for investment advisory fees during the six months ended June 30, 2022, of which $2,386 was payable to DCM at June 30, 2022. The Event Driven Fund incurred $965,285
for investment advisory fees during the six months ended June 30, 2022, of which $152,471 was payable to DCM at June 30, 2022.
The Funds direct certain portfolio trades, subject to obtaining the best price and execution, to brokers who have agreed to pay a portion of the Funds’ operating expenses using part of the commissions
generated. For the six months ended June 30, 2022, these arrangements reduced the expenses of Emerging Markets Growth Fund, Emerging Markets Small Cap Growth Fund, Emerging Markets Opportunities Fund, International
Small Cap Growth Fund, Micro Cap Growth Fund, Small Cap Growth Fund, Small/Mid Cap Growth Fund and Event Driven Fund by $129,898 (1.1%), $100 (0.0%), $2,154 (0.7%), $6,769 (0.4%), $34,698 (2.1%), $45,752 (2.4%),
$2,300 (1.9%) and $33,319 (2.1%), respectively.
The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees. The procedures have been designed to
ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment
advisers), common trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to minimize trading
costs, where permissible. For the six months ended June 30, 2022, the Funds did not engage in any purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act.
78
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
The Adviser is a party to a Fee Reimbursement Agreement (“Agreement”) with the Emerging Markets Growth Fund, the Small Cap Growth Fund, and the Event Driven Fund. Under the Agreement, the Funds reimburse
the Adviser for certain fees paid to intermediaries who provide shareholder administrative and/or sub-transfer agency services to the Funds. The amount to be reimbursed will not exceed 0.25% of the average daily net
assets held by such intermediaries. The amounts incurred and payable to the Adviser during the period January 1, 2022, through June 30, 2022, are as follows:
| Fund | Shareholder services plan fees | Accrued shareholder services plan fees | ||
| Emerging Markets Growth Fund | $ 809,615 | $ 245,108 | ||
| Small Cap Growth Fund | 81,952 | 24,252 | ||
| Event Driven Fund | 181,213 | 60,314 |
Certain officers of the Trust are also officers of DCM. The Funds pay a portion of the Chief Compliance Officer’s salary. No other officers received compensation from the Funds during the period January 1,
2022, through June 30, 2022. The Independent Trustees are compensated for their services to the Trust and such compensation is reflected as Trustees’ fees in the Statements of Operations.
The Northern Trust Company (“Northern”) serves as fund accounting and administration services provider and transfer agent for all of the Funds. Under the terms of the Fund Administration and Accounting
Services Agreement, Northern is entitled to receive fees, computed daily and payable monthly, based upon the average daily net assets of each Fund. The fees, excluding out of pocket expenses, range between 0.0175% and
0.045% of average daily net assets. For its services as Transfer Agent, Northern receives a fee, computed daily and payable monthly, based upon the average daily net assets of each Fund. The fees, excluding out of
pocket expenses, range between 0.002% and 0.0175% of average daily net assets of each Fund.
D. INVESTMENT
TRANSACTIONS
Purchases and sales of investment securities (excluding derivatives, short term securities and U.S. government obligations) for the six months ended June 30, 2022 were as follows:
| Fund | Purchases | Sales | ||
| Emerging Markets Growth Fund | 1,429,264,859 | 1,562,365,003 | ||
| Emerging Markets Small Cap Growth Fund | 81,531,677 | 77,397,247 | ||
| Emerging Markets Opportunities Fund | 24,302,727 | 25,946,144 | ||
| International Small Cap Growth Fund | 106,137,351 | 130,071,699 | ||
| Micro Cap Growth Fund | 137,100,474 | 177,453,304 | ||
| Small Cap Growth Fund | 518,033,777 | 451,872,680 | ||
| Small/Mid Cap Growth Fund | 17,980,666 | 21,371,707 | ||
| Event Driven Fund | 89,481,860 | 98,109,166 |
The
Funds had no purchases and sales of U.S. government obligations for the six month period January 1, 2022, through June 30, 2022.
79
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
E. CAPITAL SHARE
TRANSACTIONS
For
the six-month period ended June 30, 2022, and the year ended December 31, 2021, transactions in capital shares (authorized shares unlimited) were as follows:
| Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | Emerging Markets Opportunities Fund | |||||||||
| June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | ||||||
| Fund | |||||||||||
| Shares issued | — | — | 719,885 | 1,315,978 | 89,526 | 729,015 | |||||
| Shares reinvested | — | — | — | 1,994 | — | 226,243 | |||||
| Shares redeemed | — | — | (488,754) | (745,256) | (225,964) | (413,309) | |||||
| Net increase (decrease) | — | — | 231,131 | 572,716 | (136,438) | 541,949 | |||||
| Investor Class | |||||||||||
| Shares issued | 1,512,255 | 2,286,494 | — | — | — | — | |||||
| Shares reinvested | — | 2,945,615 | — | — | — | — | |||||
| Shares redeemed | (2,664,118) | (4,126,250) | — | — | — | — | |||||
| Net increase (decrease) | (1,151,863) | 1,105,859 | — | — | — | — | |||||
| Institutional Class | |||||||||||
| Shares issued | 4,562,437 | 9,064,263 | — | — | — | — | |||||
| Shares reinvested | — | 4,805,413 | — | — | — | — | |||||
| Shares redeemed | (4,113,591) | (5,111,672) | — | — | — | — | |||||
| Net increase (decrease) | 448,846 | 8,758,004 | — | — | — | — | |||||
| Total net increase (decrease) | (703,017) | 9,863,863 | — | — | — | — | |||||
| International Small Cap Growth Fund | Micro Cap Growth Fund | Small Cap Growth Fund | |||||||||
| June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | ||||||
| Fund | |||||||||||
| Shares issued | 1,144,014 | 4,892,868 | 366,766 | 261,767 | — | — | |||||
| Shares reinvested | — | 6,080,902 | — | 5,973,251 | — | — | |||||
| Shares redeemed | (3,841,334) | (3,880,440) | (3,002,868) | (2,061,238) | — | — | |||||
| Net increase (decrease) | (2,697,320) | 7,093,330 | (2,636,102) | 4,173,780 | — | — | |||||
| Investor Class | |||||||||||
| Shares issued | — | — | — | — | 1,151,682 | 3,283,526 | |||||
| Shares reinvested | — | — | — | — | — | 698,534 | |||||
| Shares redeemed | — | — | — | — | (1,133,642) | (1,115,793) | |||||
| Net increase (decrease) | — | — | — | — | 18,040 | 2,866,267 | |||||
| Institutional Class | |||||||||||
| Shares issued | — | — | — | — | 7,418,582 | 8,078,057 | |||||
| Shares reinvested | — | — | — | — | — | 2,952,682 | |||||
| Shares redeemed | — | — | — | — | (3,394,252) | (3,492,518) | |||||
| Net increase (decrease) | — | — | — | — | 4,024,330 | 7,538,221 | |||||
| Total net increase (decrease) | — | — | — | — | 4,042,370 | 10,404,488 | |||||
80
Driehaus Mutual Funds
Notes to Financial
Statements (unaudited) — (Continued)
| Small/Mid Cap Growth Fund | Event Driven Fund | ||||||
| June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | ||||
| Fund | |||||||
| Shares issued | 158,937 | 602,661 | 6,050,246 | 8,560,659 | |||
| Shares reinvested | — | 99,901 | — | 1,677,873 | |||
| Shares redeemed | (382,560) | (329,889) | (5,930,494) | (5,112,285) | |||
| Net increase (decrease) | (223,623) | 372,673 | 119,752 | 5,126,247 | |||
| Investor Class | |||||||
| Shares issued | — | — | — | — | |||
| Shares reinvested | — | — | — | — | |||
| Shares redeemed | — | — | — | — | |||
| Net increase (decrease) | — | — | — | — | |||
| Institutional Class | |||||||
| Shares issued | — | — | — | — | |||
| Shares reinvested | — | — | — | — | |||
| Shares redeemed | — | — | — | — | |||
| Net increase (decrease) | — | — | — | — | |||
| Total net increase (decrease) | — | — | — | — | |||
F. RESTRICTED
SECURITIES
Restricted securities are securities that are not registered for sale under the Securities Act of 1933, as amended, or applicable foreign law and that may be resold only in transactions exempt from applicable
registration. Restricted securities include Rule 144A securities which may be sold normally to qualified institutional buyers. At June 30, 2022, the Funds held restricted securities as denoted on the Schedules of
Investments.
G. LINE OF
CREDIT
The Funds obtained a committed line of credit in the amount of $50,000,000. The line of credit is available primarily to meet large, unexpected shareholder redemptions subject to certain restrictions. Interest is
charged at a rate per annum equal to the Federal Funds Rate in effect at the time of the borrowings plus 1.5% or 1.75%, whichever is greater. There is a commitment fee of 0.10% of the excess of the $50,000,000
committed amount over the sum of the average daily balance of any loans, which is allocated amongst the Funds based on average net assets. The Funds did not borrow under the line of credit during the period January 1,
2022 through June 30, 2022 and thus had no outstanding balances as of that date.
H. FOREIGN
INVESTMENT RISKS
To the extent a Fund invests in foreign securities, it may entail risks due to the potential for political and economic instability in the countries where the issuers of these securities are located. In addition,
foreign exchange fluctuations could affect the value of positions held. These risks are generally intensified in emerging markets.
I. REDEMPTION
FEES
Certain Funds may charge a redemption fee of 2.00% of the redemption amount for shares redeemed within 60 days of purchase. The redemption fees are recorded in paid-in capital and reflected in the Statements of
Changes in Net Assets.
J. SUBSEQUENT
EVENTS
Events or transactions that occurred after the date of this report through the date the report was issued have been evaluated for potential impact to the financial statements. There are no subsequent events that
require recognition or disclosure in the financial statements.
81
Fund Expense Examples
(unaudited)
As a mutual fund shareholder, you may incur two types of costs: (1) transaction costs, including sales charges; redemption fees; and exchange fees and (2) ongoing costs, including management fees; distribution
(12b-1) and/or service 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 six month period ended June 30, 2022.
Actual Expenses
The first line of the table below (“Actual”) provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line
under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the tables below (“Hypothetical”) 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. You may use this information to compare the ongoing costs of investing in the Fund versus 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees or exchange fees. Therefore, the
second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your
costs would have been higher.
| Emerging Markets Growth Fund — Investor Class | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $810.20 | $5.97 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,018.20 | $6.66 | |||
| Emerging Markets Growth Fund — Institutional Class | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $810.90 | $4.94 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,019.34 | $5.51 | |||
82
Fund Expense Examples
(unaudited) — (Continued)
| Emerging Markets Small Cap Growth Fund | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $805.50 | $5.55 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,018.65 | $6.21 | |||
| Emerging Markets Opportunities Fund | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $816.80 | $4.46 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,019.89 | $4.96 | |||
| International Small Cap Growth Fund | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $717.00 | $4.90 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,019.09 | $5.76 | |||
| Micro Cap Growth Fund | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $610.50 | $5.63 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,017.80 | $7.05 | |||
| Small Cap Growth Fund — Investor Class | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $633.40 | $4.01 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,019.89 | $4.96 | |||
83
Fund Expense Examples
(unaudited) — (Continued)
| Small Cap Growth Fund — Institutional Class | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $634.00 | $2.96 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,021.17 | $3.66 | |||
| Small/Mid Cap Growth Fund | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $675.20 | $3.95 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,020.08 | $4.76 | |||
| Event Driven Fund | ||||||
| Beginning Account Value January 1, 2022 | Ending Account Value June 30, 2022 | Expenses Paid During Six Months Ended June 30, 2022* | ||||
| Actual | $1,000.00 | $892.40 | $7.88 | |||
| Hypothetical Example, assuming a 5% return before expenses | $1,000.00 | $1,016.46 | $8.40 | |||
* Expenses are equal to the Funds’ annualized expense ratios for the six-month period in the table below multiplied by the average account value over the period, multiplied by the
number of days in the most recent fiscal half-year (181), then divided by 365 to reflect the half-year period. These amounts exclude the reduction in expenses for fees paid indirectly and may differ from the
Fund’s annualized ratio shown in the Financial Highlights.
| Emerging Markets Growth Fund – Investor Class | 1.33% |
| Emerging Markets Growth Fund – Institutional Class | 1.10% |
| Emerging Markets Small Cap Growth Fund | 1.24% |
| Emerging Markets Opportunities Fund | 0.99% |
| International Small Cap Growth Fund | 1.15% |
| Micro Cap Growth Fund | 1.41% |
| Small Cap Growth Fund – Investor Class | 0.99% |
| Small Cap Growth Fund – Institutional Class | 0.73% |
| Small/Mid Cap Growth Fund | 0.95% |
| Event Driven Fund | 1.68% |
84
Shareholder Information
(unaudited)
TAX INFORMATION FOR THE
YEAR ENDED DECEMBER 31, 2021
We
are providing this information as required by the Internal Revenue Code. The amounts shown may differ from those elsewhere in this report because of differences between tax and financial reporting requirements.
The
Funds designate the following amounts as a long-term capital gain distribution:
| Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | Emerging Markets Opportunities Fund | International Small Cap Growth Fund | |||
| $225,900,006 | $— | $1,825,007 | $36,999,988 |
| Micro Cap Growth Fund | Small Cap Growth Fund | Small/Mid Cap Growth Fund | Event Driven Fund | |||
| $68,499,993 | $48,000,010 | $501,538 | $9,400,443 |
For
taxable non-corporate shareholders, the following percentages of income represent qualified dividend income subject to the 15% rate category:
| Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | Emerging Markets Opportunities Fund | International Small Cap Growth Fund | |||
| —% | 63.85% | 51.30% | 100.00% |
| Micro Cap Growth Fund | Small Cap Growth Fund | Small/Mid Cap Growth Fund | Event Driven Fund | |||
| —% | —% | —% | 31.88% |
For
taxable non-corporate shareholders, the following percentages of short-term capital gains represent qualified dividend income subject to the 15% rate category:
| Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | Emerging Markets Opportunities Fund | International Small Cap Growth Fund | |||
| 18.15% | —% | —% | 9.93% |
| Micro Cap Growth Fund | Small Cap Growth Fund | Small/Mid Cap Growth Fund | Event Driven Fund | |||
| 0.53% | 1.35% | 3.82% | —% |
For
corporate shareholders, the following percentages of income and short-term capital gains qualified for the dividends-received deduction:
| Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | Emerging Markets Opportunities Fund | International Small Cap Growth Fund | |||
| —% | —% | 0.35% | —% |
| Micro Cap Growth Fund | Small Cap Growth Fund | Small/Mid Cap Growth Fund | Event Driven Fund | |||
| —% | —% | —% | 0.83% |
85
Board Review of
Liquidity Risk Management Program
Pursuant to Rule 22e-4 under the 1940 Act, the Funds have adopted a liquidity risk management program. The program’s principal objectives include assessing, managing and periodically reviewing each
Fund’s liquidity risk, based on factors specific to the circumstances of the Fund. Liquidity risk is defined as the risk that a Fund could not meet redemption requests without significant dilution of remaining
investors’ interests in the Fund.
The Adviser has been designated by the Board to administer the Funds’ liquidity risk management program. At a Board meeting held on March 10, 2022 covering the period ending December 31, 2021, The Adviser
provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation, including:
| • | the program supported each Fund’s ability to honor redemption requests timely; |
| • | the program supported the Adviser’s management of each Fund’s liquidity profile, including during periods of market volatility and net redemptions; |
| • | no material liquidity issues were identified during the period; |
| • | there were no material changes to the program during the period; |
| • | the implementation of the program was effective to manage each Fund’s liquidity risk; and |
| • | the program operated adequately during the period. |
There can be no assurance that the program will achieve its objectives in the future. Please refer to the prospectus for more information regarding each Fund’s exposure to liquidity risk and other principal
risks to which an investment in the Funds may be subject.
86
| (b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period 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.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is 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.
Item 13. Exhibits.
| (a)(1) | Not applicable. |
| (a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
| (a)(3) | Not applicable. |
| (a)(4) | Not applicable. |
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
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) | Driehaus Mutual Funds | |
| By (Signature and Title) | /s/ Stephen T. Weber | |
| Stephen T. Weber, President | ||
| (principal executive officer) | ||
| Date | September 2, 2022 |
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/ Stephen T. Weber | |
| Stephen T. Weber, President | ||
| (principal executive officer) | ||
| Date | September 2, 2022 | |
| By (Signature and Title) | /s/ Robert M. Kurinsky | |
| Robert M. Kurinsky, Vice President and Treasurer | ||
| (principal financial officer) | ||
| Date | September 2, 2022 |