ELDRIDGE
ETFs
Notes
to the Financial Statements
February 28,
2026
1. ORGANIZATION
Series Portfolios
Trust (the “Trust”) was organized as a Delaware statutory trust under a
Declaration of Trust dated July 27, 2015. The Trust is registered under the
Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end
management investment company. The Eldridge AAA CLO ETF and the Eldridge BBB-B
CLO ETF (each separately a “Fund”, or collectively, the “Funds”) are
non-diversified series with each having its own investment objectives and
policies within the Trust. The Eldridge BBB-B CLO ETF’s inception was on
January 23, 2023, and the Eldridge AAA CLO ETF’s inception was on
July 18, 2023. Prior to January 1, 2025, the Eldridge AAA CLO ETF was
named the Panagram AAA CLO ETF, and the Eldridge BBB-B CLO ETF was named the
Panagram BBB-B CLO ETF. The Funds’ investment Adviser, Eldridge Structured
Credit Advisers, LLC (“the “Adviser”) (formerly Panagram Structured Asset
Management) is responsible for providing management oversight, investment
advisory services, day-to-day management of the Funds’ assets, as well as
compliance, sales, marketing, and operations services to the Funds. The Funds
are investment companies and accordingly follow the investment company
accounting and reporting guidance of the Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (the “Codification”) Topic 946
Financial Services – Investment Companies. The Funds do not hold themselves out
as related to any other series of the Trust for purposes of investment and
investor services, nor do they share the same investment adviser with any other
series of the Trust.
The
Eldridge AAA CLO ETF’s investment objective is to generate current income, with
a secondary objective of capital preservation. The Fund, under normal
conditions, will invest at least 80% of its net assets (plus any borrowings made
for investment purposes) in collateralized loan obligations (“CLOs”) that are
rated at the time of purchase, AAA or an equivalent rating by a nationally
recognized statistical rating organization (“NRSRO”) (or, if unrated, securities
deemed by the Adviser to be of comparable quality).
The
Eldridge BBB-B CLO ETF’s investment objective is to generate current income,
with a secondary objective of capital preservation. The Fund, under normal
circumstances, will invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in CLO’s that are rated at the time of purchase,
between BBB+ and B- or an equivalent rating by a nationally recognized
statistical rating organization (“NRSRO”) (or, if unrated, securities deemed by
the Adviser to be of comparable quality).
CLOs
are structured products with a “long-only” investment strategy (i.e., a strategy
that does not include short positions) that issue multiple tranches of
asset-backed securities. CLOs are collateralized by a pool of loans, which may
include, among others, senior secured loans, senior unsecured loans, and
subordinate corporate loans.
2.
SIGNIFICANT ACCOUNTING POLICIES
The
following is a summary of significant accounting policies consistently followed
by the Funds in the preparation of its financial statements. These policies are
in conformity with generally accepted accounting principles in the United States
of America (“GAAP”).
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A.
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Investment Valuation – The following is
a summary of the Funds’ pricing procedures. It is intended to be a general
discussion and may not necessarily reflect all the pricing procedures
followed by the Funds. Fixed income securities, including short-term debt
instruments having a maturity of less than 60 days, are valued, at the
evaluated mean price between the bid and asked prices in accordance with
prices supplied by an approved Pricing Service. Pricing Services may use
various valuation methodologies such as matrix pricing and other
analytical pricing models as well as market transactions and dealer
quotations. In the absence of a price from a Pricing Service, Fair Value
will be determined. These securities are categorized in Level 2 of
the fair value hierarchy. |
Investments
in registered open-end investment companies (including money market funds),
other than exchange traded funds, are valued at their reported net asset values
(“NAV”). To the extent these securities are valued at their NAV per share, they
are categorized in Level 1 of the fair value hierarchy.
