N-CSRS: Certified Shareholder Report, Semi-Annual
Published on March 3, 2025
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: 811-23946
Palmer Square Funds Trust
(Exact name of registrant
as specified in charter)
1900 Shawnee Mission
Parkway
Suite 315
Mission Woods, KS
66205
(Address of principal
executive offices) (Zip code)
Stacy Brice, Chief
Compliance Officer and Legal Counsel
1900 Shawnee Mission Parkway
Suite 315
Mission Woods, KS
66205
(Name and Address of
Agent for Service)
Registrant’s telephone number, including area code: 816-994-3200
Date of fiscal year end: June 30
Date of reporting period: December 31, 2024
Item 1. Reports to Stockholders.
(a) The following is a copy of
the report transmitted to shareholders pursuant to Rule 30e-1 under the
Investment Company Act of 1940, as amended (the “1940 Act”).
(b) Not applicable.
Item 2. Code of Ethics.
Disclosure
required in Registrant’s annual Form N-CSR filing.
Item 3. Audit Committee Financial Expert.
Disclosure
required in Registrant’s annual Form N-CSR filing.
Item 4. Principal Accountant Fees and Services.
Disclosure
required in Registrant’s annual Form N-CSR filing.
Item 5. Audit Committee of Listed Registrants.
Disclosure
required in Registrant’s annual Form N-CSR filing.
Item 6. Investments
(a) The
registrant’s Schedule of Investments is included as part of the Financial
Statements filed under Item 7(a) of this form.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for
Open-End Management Investment Companies.
(a) The registrant’s Financial
Statements are filed herewith.
(b) The registrants Financial Highlights are included as
part of the Financial Statements filed under Item 7(a) of this Form.
Palmer
Square
Funds’
Trust
Palmer
Square
CLO
Senior
Debt
ETF
(Ticker:
PSQA)
Palmer
Square
Credit
Opportunities
ETF
(Ticker:
PSQO)
SEMI-ANNUAL
FINANCIALS
AND
OTHER
INFORMATION
DECEMBER
31,
2024
Palmer
Square
Funds’
Trust
Table
of
Contents
SEMI-ANNUAL
FINANCIALS
AND
OTHER
INFORMATION
1
Table
of
Contents
iii
Financial
Statements
and
Financial
Highlights
Schedule
of
Investments
Palmer
Square
CLO
Senior
Debt
ETF
1
Palmer
Square
Credit
Opportunities
ETF
4
Statements
of
Assets
and
Liabilities
12
Statements
of
Operations
13
Statements
of
Changes
in
Net
Assets
14
Financial
Highlights
Palmer
Square
CLO
Senior
Debt
ETF
15
Palmer
Square
Credit
Opportunities
ETF
16
Notes
to
Financial
Statements
17
Additional
Information
-
Items
8-11
24
This
report
and
the
financial
statements
contained
herein
are
provided
for
the
general
information
of
the
shareholders
of
the
Palmer
Square
Funds.
This
report
is
not
authorized
for
distribution
to
prospective
investors
in
the
Funds
unless
preceded
or
accompanied
by
an
effective
shareholder
report
and
prospectus.
www.palmersquarefunds.com
Palmer
Square
CLO
Senior
Debt
ETF
SCHEDULE
OF
INVESTMENTS
As
of
December
31,
2024
(Unaudited)
1
See
accompanying
Notes
to
Financial
Statements.
Principal
Amount
Value
COLLATERALIZED
LOAN
OBLIGATIONS
—
100.5%
AIMCO
CLO
22
Ltd.
Series
2024-22A-A
6.117%
(3-Month
Term
SOFR
+
1.500
basis
points),
4/19/2037
1,2,3
850,000
$
855,762
Apidos
CLO
XVIII-R
Series
2018-18A-A1R2
5.696%
(3-Month
Term
SOFR
+
1.330
basis
points),
1/22/2038
1,2,3
1,000,000
1,000,000
Bain
Capital
Credit
CLO
Ltd.
Series
2019-2A-AR2
5.777%
(3-Month
Term
SOFR
+
1.130
basis
points),
10/17/2032
1,2,3
349,201
350,006
Series
2019-4A-BR
6.526%
(3-Month
Term
SOFR
+
1.900
basis
points),
4/23/2035
1,2,3
400,000
401,082
Series
2022-2A-A1
5.952%
(3-Month
Term
SOFR
+
1.320
basis
points),
4/22/2035
1,2,3
1,000,000
1,002,314
Battalion
CLO
XI
Ltd.
Series
2017-11A-AR
6.046%
(3-Month
Term
SOFR
+
1.412
basis
points),
4/24/2034
1,2,3
1,000,000
1,001,332
Benefit
Street
Partners
CLO
XXXVII
Ltd.
Series
2024-37A-A
5.698%
(3-Month
Term
SOFR
+
1.350
basis
points),
1/25/2038
1,2,3
500,000
499,928
CarVal
CLO
VII-C
Ltd.
Series
2023-1A-A1R
6.057%
(3-Month
Term
SOFR
+
1.440
basis
points),
7/20/2037
1,2,3
1,000,000
1,002,000
Cedar
Funding
IV
CLO
Ltd.
Series
2014-4A-AR3
0.000%
(3-Month
Term
SOFR
+
1.340
basis
points),
1/23/2038
1,2,3
500,000
500,000
CIFC
Funding
Ltd.
Series
2018-1A-A1R
5.794%
(3-Month
Term
SOFR
+
1.320
basis
points),
1/18/2038
1,2,3
750,000
749,931
Series
2019-1A-A1R2
5.977%
(3-Month
Term
SOFR
+
1.360
basis
points),
10/20/2037
1,2,3
1,000,000
1,000,509
Dewolf
Park
CLO
Ltd.
Series
2017-1A-AR
5.838%
(3-Month
Term
SOFR
+
1.182
basis
points),
10/15/2030
1,2,3
1,139,938
1,141,718
Dryden
49
Senior
Loan
Fund
Series
2017-49A-BR
6.494%
(3-Month
Term
SOFR
+
1.862
basis
points),
7/18/2030
1,2,3
500,000
501,582
Dryden
68
CLO
Ltd.
Series
2019-68A-BRR
6.206%
(3-Month
Term
SOFR
+
1.550
basis
points),
7/15/2035
1,2,3
1,000,000
1,000,012
Dryden
86
CLO
Ltd.
Series
2020-86A-A1R
6.009%
(3-Month
Term
SOFR
+
1.362
basis
points),
7/17/2034
1,2,3
1,000,000
1,001,351
Elmwood
CLO
VIII
Ltd.
Series
2021-1A-AR
6.167%
(3-Month
Term
SOFR
+
1.550
basis
points),
4/20/2037
1,2,3
800,000
807,338
HPS
Loan
Management
Ltd.
Series
13A-18-BR
6.256%
(3-Month
Term
SOFR
+
1.600
basis
points),
10/15/2030
1,2,3
250,000
250,549
KKR
CLO
41
Ltd.
Series
2022-41A-B
6.547%
(3-Month
Term
SOFR
+
1.900
basis
points),
4/15/2035
1,2,3
1,000,000
1,000,757
LCM
26
Ltd.
Series
26A-A1
5.949%
(3-Month
Term
SOFR
+
1.332
basis
points),
1/20/2031
1,2,3
459,555
460,398
Madison
Park
Funding
XLII
Ltd.
Series
13A-B
6.388%
(3-Month
Term
SOFR
+
1.762
basis
points),
11/21/2030
1,2,3
500,000
501,401
Madison
Park
Funding
XVIII
Ltd.
Series
2015-18A-ARR
5.819%
(3-Month
Term
SOFR
+
1.202
basis
points),
10/21/2030
1,2,3
398,069
398,274
Madison
Park
Funding
XXII
Ltd.
Series
2016-22A-BR
6.518%
(3-Month
Term
SOFR
+
1.862
basis
points),
1/15/2033
1,2,3
520,000
520,000
Neuberger
Berman
Loan
Advisers
CLO
36
Ltd.
Series
2020-36A-A1R2
5.917%
(3-Month
Term
SOFR
+
1.300
basis
points),
4/20/2033
1,2,3
500,000
500,970
Neuberger
Berman
Loan
Advisers
CLO
39
Ltd.
Series
2020-39A-A1R
6.147%
(3-Month
Term
SOFR
+
1.530
basis
points),
4/20/2038
1,2,3
830,000
836,188
Octagon
66
Ltd.
Series
2022-1A-A1R
6.235%
(3-Month
Term
SOFR
+
1.750
basis
points),
11/16/2036
1,2,3
1,000,000
1,005,532
Octagon
Investment
Partners
XIV
Ltd.
Series
2012-1A-AARR
5.868%
(3-Month
Term
SOFR
+
1.212
basis
points),
7/15/2029
1,2,3
60,019
60,060
Palmer
Square
CLO
Senior
Debt
ETF
SCHEDULE
OF
INVESTMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
2
See
accompanying
Notes
to
Financial
Statements.
Principal
Amount
Value
COLLATERALIZED
LOAN
OBLIGATIONS
(Continued)
OHA
Credit
Funding
11
Ltd.
Series
2022-11A-B1R
6.217%
(3-Month
Term
SOFR
+
1.600
basis
points),
7/19/2037
1,2,3
500,000
$
501,820
OHA
Credit
Funding
2
Ltd.
Series
2019-2A-AR
6.029%
(3-Month
Term
SOFR
+
1.412
basis
points),
4/21/2034
1,2,3
1,000,000
1,000,000
Palmer
Square
CLO
Ltd.
Series
2021-4A-B
6.568%
(3-Month
Term
SOFR
+
1.912
basis
points),
10/15/2034
1,2,3,4
645,000
646,546
Rad
CLO
7
Ltd.
Series
2020-7A-A1R
5.997%
(3-Month
Term
SOFR
+
1.350
basis
points),
4/17/2036
1,2,3
820,000
821,841
Sound
Point
CLO
XX
Ltd.
Series
2018-2A-A
5.979%
(3-Month
Term
SOFR
+
1.362
basis
points),
7/26/2031
1,2,3
485,265
486,309
THL
Credit
Wind
River
CLO
Ltd.
Series
2019-3A-AR2
5.716%
(3-Month
Term
SOFR
+
1.060
basis
points),
4/15/2031
1,2,3
500,000
501,093
Thompson
Park
CLO
Ltd.
Series
2021-1A-A1
5.918%
(3-Month
Term
SOFR
+
1.262
basis
points),
4/15/2034
1,2,3
1,500,000
1,501,747
Voya
CLO
Ltd.
Series
2015-3A-A1R3
5.782%
(3-Month
Term
SOFR
+
1.150
basis
points),
10/20/2031
1,2,3
741,634
742,865
Series
2017-3A-A1R
5.919%
(3-Month
Term
SOFR
+
1.302
basis
points),
4/20/2034
1,2,3
200,000
200,251
TOTAL
COLLATERALIZED
LOAN
OBLIGATIONS
(Cost
$24,730,008)
24,751,466
Number
of
Shares
SHORT-TERM
INVESTMENTS
—
0.5%
Fidelity
Investments
Money
Market
Funds
-
Treasury
Portfolio
-
Class
I,
4.34%
5
133,187
133,187
TOTAL
SHORT-TERM
INVESTMENTS
(Cost
$133,187)
133,187
TOTAL
INVESTMENTS
—
101.0%
(Cost
$24,863,195)
24,884,653
Liabilities
in
Excess
of
Other
Assets
—
(1.0)%
(236,036)
TOTAL
NET
ASSETS
—
100.0%
$
24,648,617
1
Callable.
2
Floating
rate
security.
3
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
are
restricted
and
may
be
resold
in
transactions
exempt
from
registration
normally
to
qualified
institutional
buyers.
The
total
value
of
these
securities
is
$24,751,466
which
represents
100.42%
of
total
net
assets
of
the
Fund.
4
The
Fund
may
invest
in
certain
securities
that
are
considered
affiliated
companies.
As
defined
by
the
Investment
Company
Act
of
1940,
as
amended,
an
affiliated
company
is
one
in
which
the
Fund
owns
5%
or
more
of
the
outstanding
voting
securities,
or
a
company
which
is
under
common
ownership
or
control.
5
The
rate
is
the
annualized
seven-day
yield
at
period
end.
Palmer
Square
CLO
Senior
Debt
ETF
SCHEDULE
OF
INVESTMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
3
See
accompanying
Notes
to
Financial
Statements.
Schedule
of
Affiliated
Investments
aa
Value
at
Beginning
of
Period
Purchases
1
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Interest
Income
a
a
a
a
a
a
a
a
Palmer
Square
CLO
Senior
Debt
ETF
Palmer
Square
CLO
Ltd.
Series
2021-4A-B
6.568%
(3-Month
Term
SOFR
+
1.912
basis
points),
10/15/2034
$
—
$
645,121
$
—
$
—
$
1,425
$
646,546
645,000
$
12,926
Palmer
Square
CLO
Ltd.
Series
-
6.421%
,
4/15/2031
—
181,482
(181,523)
41
—
—
—
484
Total
Affiliated
Securities
$—
$826,603
$(181,523)
$41
$1,425
$646,546
645,000
$13,410
1
May
include
accretion,
amortization,
partnership
adjustments,
and/or
corporate
actions.
Palmer
Square
Credit
Opportunities
ETF
SCHEDULE
OF
INVESTMENTS
As
of
December
31,
2024
(Unaudited)
4
See
accompanying
Notes
to
Financial
Statements.
Principal
Amount
Value
ASSET-BACKED
SECURITIES
—
10.0%
American
Express
Credit
Account
Master
Trust
Series
2022-2-A,
3.390%
,
5/15/2027
1
79,000
$
78,658
Series
2022-3-A,
3.750%
,
8/15/2027
1
75,000
74,668
BMW
Vehicle
Lease
Trust
Series
2023-2-A3,
5.990%
,
9/25/2026
1
93,517
94,148
Capital
One
Multi-Asset
Execution
Trust
Series
2022-A3-A,
4.950%
,
10/15/2027
1
135,000
135,531
Capital
One
Prime
Auto
Receivables
Trust
Series
2022-2-A3,
3.660%
,
5/17/2027
1
68,549
68,194
Chase
Auto
Owner
Trust
Series
2024-5A-A2,
4.400%
,
11/26/2027
1,2
75,000
74,925
Dell
Equipment
Finance
Trust
Series
2023-1-A3,
5.650%
,
9/22/2028
1,2
84,984
85,330
Discover
Card
Execution
Note
Trust
Series
2022-A4-A,
5.030%
,
10/15/2027
1
110,000
110,582
Series
2023-A1-A,
4.310%
,
3/15/2028
1
130,000
129,756
Fifth
Third
Auto
Trust
Series
2023-1-A2A,
5.800%
,
11/16/2026
1
43,004
43,093
Ford
Credit
Floorplan
Master
Owner
Trust
Series
2023-1-A1,
4.920%
,
5/15/2028
1,2
145,000
145,786
GM
Financial
Automobile
Leasing
Trust
Series
2024-1-A3,
5.090%
,
3/22/2027
1
133,000
133,856
Series
2024-2-A2A,
5.430%
,
9/21/2026
1
110,227
110,821
Series
2024-3-A2A,
4.290%
,
1/20/2027
1
100,000
99,923
GM
Financial
Consumer
Automobile
Receivables
Trust
Series
2022-2-A3,
3.100%
,
2/16/2027
1
154,282
153,332
Series
2023-2-A3,
4.470%
,
2/16/2028
1
100,000
100,020
Harley-Davidson
Motorcycle
Trust
Series
2024-A-A3,
5.370%
,
3/15/2029
1
60,000
60,720
Honda
Auto
Receivables
Owner
Trust
Series
2023-3-A4,
5.300%
,
12/18/2029
1
108,000
109,295
Hyundai
Auto
Lease
Securitization
Trust
Series
2024-A-A2A,
5.150%
,
6/15/2026
1,2
70,693
70,847
John
Deere
Owner
Trust
Series
2022-C-A3,
5.090%
,
6/15/2027
1
83,844
84,111
Mercedes-Benz
Auto
Lease
Trust
Series
2023-A-A3,
4.740%
,
1/15/2027
1
165,616
165,791
SFS
Auto
Receivables
Securitization
Trust
Series
2023-1A-A3,
5.470%
,
10/20/2028
1,2
145,000
146,351
Tesla
Auto
Lease
Trust
Series
2023-A-A3,
5.890%
,
6/22/2026
1,2
99,163
99,516
Toyota
Auto
Receivables
Owner
Trust
Series
2023-B-A2A,
5.280%
,
5/15/2026
1
57,190
57,231
Toyota
Lease
Owner
Trust
Series
2023-A-A3,
4.930%
,
4/20/2026
1,2
72,082
72,161
Palmer
Square
Credit
Opportunities
ETF
SCHEDULE
OF
INVESTMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
5
See
accompanying
Notes
to
Financial
Statements.
Principal
Amount
Value
ASSET-BACKED
SECURITIES
(Continued)
World
Omni
Select
Auto
Trust
Series
2023-A-A2A,
5.920%
,
3/15/2027
1
200,662
$
200,994
TOTAL
ASSET-BACKED
SECURITIES
(Cost
$2,705,294)
2,705,640
BANK
LOANS
—
12.0%
Alliant
Holdings
Intermediate
LLC,
First
Lien,
Initial
Term
Loan,
B6
7.106%
(1-Month
Term
SOFR
+
3.000
basis
points),
9/19/2031
3,4
100,000
100,381
American
Airlines,
Inc.,
First
Lien,
Seventh
Amendment
Extended
Term
Loan,
B
7.262%
(1-Month
Term
SOFR
+
2.250
basis
points),
2/15/2028
3,4
100,000
100,591
Boxer
Parent
Co.,
Inc.,
First
Lien,
2031
New
Dollar
Term
Loan,
B
8.335%
(3-Month
Term
SOFR
+
3.750
basis
points),
7/30/2031
1,3,4
100,000
100,949
Calpine
Construction
Finance
Co.
LP,
First
Lien,
Refinancing
Term
Loan,
B
6.357%
(1-Month
Term
SOFR
+
2.000
basis
points),
7/31/2030
3,4
100,000
99,896
Citadel
Securities
LP,
First
Lien,
2024
Term
Loan,
B
6.329%
(3-Month
Term
SOFR
+
2.000
basis
points),
10/31/2031
3,4
99,749
100,157
Cotiviti,
Inc.,
First
Lien,
New
Term
Loan,
B
7.553%
(1-Month
Term
SOFR
+
2.750
basis
points),
4/30/2031
1,3,4
99,750
100,436
Cross
Financial
Corp.,
First
Lien,
Term
Loan,
B
7.607%
(1-Month
Term
SOFR
+
3.250
basis
points),
10/31/2031
3,4
100,000
100,750
Edgewater
Generation
LLC,
First
Lien,
Refinancing
Term
Loan,
B
8.607%
(1-Month
Term
SOFR
+
4.250
basis
points),
8/1/2030
3,4
97,436
98,933
EP
Purchaser
LLC,
First
Lien,
Closing
Date
Term
Loan,
B
8.090%
(3-Month
Term
SOFR
+
3.500
basis
points),
11/6/2028
1,3,4
99,744
99,510
EPIC
Crude
Services
LP,
First
Lien,
Term
Loan,
B
7.656%
(3-Month
Term
SOFR
+
3.000
basis
points),
10/15/2031
3,4
100,000
101,000
First
Eagle
Holdings,
Inc.,
First
Lien,
Term
Loan,
B
7.329%
(3-Month
Term
SOFR
+
3.000
basis
points),
3/5/2029
3,4
99,499
99,826
Grinding
Media,
Inc.,
First
Lien,
Term
Loan,
B
8.021%
(3-Month
Term
SOFR
+
3.500
basis
points),
10/12/2028
3,4
99,750
100,373
Guggenheim
Partners
Investment
Management
Holdings
LLC,
First
Lien,
Term
Loan,
B
6.829%
(3-Month
Term
SOFR
+
2.500
basis
points),
11/26/2031
3,4
100,000
100,500
HUB
International
Ltd.,
First
Lien,
2024-1
Incremental
Term
Loan,
B
7.367%
(3-Month
Term
SOFR
+
2.750
basis
points),
6/20/2030
3,4
99,500
100,228
Hudson
River
Trading
LLC,
First
Lien,
Term
Loan,
B
7.483%
(1-Month
Term
SOFR
+
3.000
basis
points),
3/18/2030
3,4
99,742
100,209
Hyperion
Refinance
SARL,
First
Lien,
2024-3
Dollar
Term
Loan,
B
7.357%
(1-Month
Term
SOFR
+
3.000
basis
points),
2/18/2031
3,4
99,750
100,554
Installed
Building
Products,
Inc.,
First
Lien,
Term
Loan,
B3
6.107%
(1-Month
Term
SOFR
+
1.750
basis
points),
3/28/2031
3,4
99,749
100,092
Iridium
Satellite
LLC,
First
Lien,
Term
Loan,
B4
6.607%
(1-Month
Term
SOFR
+
2.250
basis
points),
9/20/2030
1,3,4
99,497
99,249
Jane
Street
Group
LLC,
First
Lien,
Extended
Term
Loan,
B
6.395%
(3-Month
Term
SOFR
+
2.000
basis
points),
12/15/2031
3,4
99,482
99,278
LSF12
Crown
US
Commercial
Bidco
LLC,
First
Lien,
Term
Loan,
B
8.803%
(1-Month
Term
SOFR
+
4.250
basis
points),
12/2/2031
3,4
100,000
100,001
Medline
Borrower
LP,
First
Lien,
Dollar
Incremental
Term
Loan,
B
6.607%
(1-Month
Term
SOFR
+
2.250
basis
points),
10/23/2028
1,3,4
99,500
99,964
Palmer
Square
Credit
Opportunities
ETF
SCHEDULE
OF
INVESTMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
6
See
accompanying
Notes
to
Financial
Statements.
Principal
Amount
Value
BANK
LOANS
(Continued)
Michael
Baker
International
LLC,
First
Lien,
Term
Loan,
B
9.107%
(1-Month
Term
SOFR
+
4.750
basis
points),
12/1/2028
3,4
99,749
$
100,311
OneDigital
Borrower
LLC,
First
Lien,
Initial
Term
Loan,
B
7.607%
(1-Month
Term
SOFR
+
3.250
basis
points),
7/2/2031
3,4
99,251
99,626
Organon
&
Co.,
First
Lien,
Dollar
Term
Loan,
B
7.737%
(12-Month
Term
SOFR
+
2.250
basis
points),
5/19/2031
3,4
100,000
100,459
Pre-Paid
Legal
Services,
Inc.,
First
Lien,
Initial
Term
Loan
8.221%
(1-Month
Term
SOFR
+
3.750
basis
points),
12/15/2028
1,3,4
99,488
100,279
Project
Alpha
Intermediate
Holding,
Inc.,
First
Lien,
Term
Loan,
B
7.424%
(12-Month
Term
SOFR
+
3.250
basis
points),
10/28/2030
3,4
100,000
100,766
Red
Planet
Borrower
LLC,
First
Lien,
Term
Loan,
B
7.957%
(1-Month
Term
SOFR
+
3.500
basis
points),
9/29/2028
3,4
99,486
98,100
Renaissance
Holdings
Corp.,
First
Lien,
2024
Term
Loan,
B
8.823%
(1-Month
Term
SOFR
+
4.000
basis
points),
4/8/2030
1,3,4
99,749
99,631
Rocket
Software,
Inc.,
First
Lien,
Term
Loan,
B
8.823%
(1-Month
Term
SOFR
+
4.250
basis
points),
11/28/2028
1,3,4
100,000
100,869
Thunder
Generation
Funding
LLC,
First
Lien,
Term
Loan,
B
7.329%
(3-Month
Term
SOFR
+
3.000
basis
points),
10/3/2031
3,4
99,750
100,529
TOTAL
BANK
LOANS
(Cost
$2,985,212)
3,003,447
COLLATERALIZED
LOAN
OBLIGATIONS
—
66.7%
Apidos
CLO
XVIII-R
Series
2018-18A-A1R2
5.696%
(3-Month
Term
SOFR
+
1.330
basis
points),
1/22/2038
1,2,4
500,000
500,000
Benefit
Street
Partners
CLO
XVII
Ltd.
Series
2019-17A-D1R2
7.806%
(3-Month
Term
SOFR
+
3.150
basis
points),
10/15/2037
1,2,4,5
500,000
499,950
Benefit
Street
Partners
CLO
XXXII
Ltd.
Series
2023-32A-E
11.976%
(3-Month
Term
SOFR
+
7.350
basis
points),
10/25/2036
1,2,4
500,000
515,174
Carlyle
Global
Market
Strategies
CLO
Ltd.
Series
2012-4A-DR3
8.132%
(3-Month
Term
SOFR
+
3.500
basis
points),
4/22/2032
1,2,4
1,000,000
1,002,551
Carlyle
US
CLO
Ltd.
Series
2017-4A-C
7.718%
(3-Month
Term
SOFR
+
3.062
basis
points),
1/15/2030
1,2,4
250,000
250,703
CBAM
Ltd.
Series
2018-5A-D
7.409%
(3-Month
Term
SOFR
+
2.762
basis
points),
4/17/2031
1,2,4
1,000,000
1,002,344
Cedar
Funding
IV
CLO
Ltd.
Series
2014-4A-AR3
0.000%
(3-Month
Term
SOFR
+
1.340
basis
points),
1/23/2038
1,2,4
500,000
500,000
CIFC
Funding
Ltd.
Series
2013-4A-DRR
7.679%
(3-Month
Term
SOFR
+
3.062
basis
points),
4/27/2031
1,2,4
605,000
607,785
Series
2018-1A-A1R
5.794%
(3-Month
Term
SOFR
+
1.320
basis
points),
1/18/2038
1,2,4
500,000
499,954
Series
2018-1A-D1R
7.274%
(3-Month
Term
SOFR
+
2.800
basis
points),
1/18/2038
1,2,4
500,000
499,959
Series
2018-2A-D1R
7.701%
(3-Month
Term
SOFR
+
3.050
basis
points),
10/20/2037
1,2,4,5
500,000
509,590
Creeksource
Dunes
Creek
CLO
Ltd.
Series
2024-1A-A1
5.744%
(3-Month
Term
SOFR
+
1.410
basis
points),
1/15/2038
1,2,4
500,000
500,000
Dryden
30
Senior
Loan
Fund
Series
2013-30A-DR
7.385%
(3-Month
Term
SOFR
+
2.862
basis
points),
11/15/2028
1,2,4
500,000
501,707
Dryden
45
Senior
Loan
Fund
Series
2016-45A-A1RR
5.736%
(3-Month
Term
SOFR
+
1.080
basis
points),
10/15/2030
1,2,4
406,886
407,776
Series
2016-45A-DRR
7.706%
(3-Month
Term
SOFR
+
3.050
basis
points),
10/15/2030
1,2,4
625,000
627,907
Palmer
Square
Credit
Opportunities
ETF
SCHEDULE
OF
INVESTMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
7
See
accompanying
Notes
to
Financial
Statements.
Principal
Amount
Value
COLLATERALIZED
LOAN
OBLIGATIONS
(Continued)
Elmwood
CLO
VIII
Ltd.
Series
2021-1A-AR
6.167%
(3-Month
Term
SOFR
+
1.550
basis
points),
4/20/2037
1,2,4
800,000
$
807,338
Empower
CLO
Ltd.
Series
2022-1A-D1R
7.617%
(3-Month
Term
SOFR
+
3.000
basis
points),
10/20/2037
1,2,4
500,000
506,674
Highbridge
Loan
Management
Ltd.
Series
5A-2015-DR3
8.068%
(3-Month
Term
SOFR
+
3.000
basis
points),
10/15/2030
1,2,4
500,000
502,536
LCM
26
Ltd.
Series
26A-A1
5.949%
(3-Month
Term
SOFR
+
1.332
basis
points),
1/20/2031
1,2,4
459,555
460,398
LCM
XIV
LP
Series
14A-AR
5.919%
(3-Month
Term
SOFR
+
1.302
basis
points),
7/20/2031
1,2,4
256,241
256,714
Magnetite
XXXIX
Ltd.
Series
2023-39A-D1R
7.132%
(3-Month
Term
SOFR
+
2.700
basis
points),
1/25/2037
1,2,4
1,000,000
1,000,000
Menlo
CLO
I
Ltd.
Series
2024-1A-A1
5.750%
(3-Month
Term
SOFR
+
1.420
basis
points),
1/20/2038
1,2,4
500,000
500,000
Series
2024-1A-D1
7.580%
(3-Month
Term
SOFR
+
3.250
basis
points),
1/20/2038
1,2,4
500,000
500,000
Neuberger
Berman
Loan
Advisers
CLO
36
Ltd.
Series
2020-36A-A1R2
5.917%
(3-Month
Term
SOFR
+
1.300
basis
points),
4/20/2033
1,2,4
1,000,000
1,001,939
Neuberger
Berman
Loan
Advisers
CLO
39
Ltd.
Series
2020-39A-A1R
6.147%
(3-Month
Term
SOFR
+
1.530
basis
points),
4/20/2038
1,2,4
500,000
503,728
Neuberger
Berman
Loan
Advisers
NBLA
CLO
52
Ltd.
Series
2022-52A-AR
5.985%
(3-Month
Term
SOFR
+
1.350
basis
points),
10/24/2038
1,2,4
1,000,000
1,000,455
Post
CLO
VI
Ltd.
Series
2024-2A-E
10.955%
(3-Month
Term
SOFR
+
6.500
basis
points),
1/20/2038
1,2,4
500,000
501,514
Shackleton
CLO
Ltd.
Series
2015-7RA-ARR
5.756%
(3-Month
Term
SOFR
+
1.100
basis
points),
7/15/2031
1,2,4
1,000,000
1,002,629
Silver
Point
CLO
6
Ltd.
Series
2024-6A-D1
7.867%
(3-Month
Term
SOFR
+
3.300
basis
points),
10/15/2037
1,2,4
500,000
505,717
Symphony
Static
CLO
I
Ltd.
Series
2021-1A-E1
10.237%
(3-Month
Term
SOFR
+
5.612
basis
points),
10/25/2029
1,2,4
500,000
502,993
Voya
CLO
Ltd.
Series
2019-1A-D1RR
7.499%
(3-Month
Term
SOFR
+
3.050
basis
points),
10/15/2037
1,2,4,5
625,000
630,729
Whitebox
CLO
II
Ltd.
Series
2020-2A-D1R2
7.457%
(3-Month
Term
SOFR
+
2.900
basis
points),
10/24/2037
1,2,4
500,000
507,662
TOTAL
COLLATERALIZED
LOAN
OBLIGATIONS
(Cost
$19,046,355)
19,116,426
CORPORATE
BONDS
—8.4%
BEVERAGES
—
0.2%
Constellation
Brands,
Inc.
3.150%,
8/1/2029
1
75,000
69,189
BROADLINE
RETAIL
—
0.4%
Go
Daddy
Operating
Co.
LLC
/
GD
Finance
Co.,
Inc.
5.250%,
12/1/2027
1,2
50,000
49,158
Match
Group
Holdings
II
LLC
4.625%,
6/1/2028
1,2
50,000
47,658
96,816
Palmer
Square
Credit
Opportunities
ETF
SCHEDULE
OF
INVESTMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
8
See
accompanying
Notes
to
Financial
Statements.
Principal
Amount
Value
CORPORATE
BONDS
(Continued)
BUILDING
PRODUCTS
—
0.6%
Advanced
Drainage
Systems,
Inc.
5.000%,
9/30/2027
1,2
25,000
$
24,661
Smyrna
Ready
Mix
Concrete
LLC
6.000%,
11/1/2028
1,2
75,000
73,233
Standard
Industries,
Inc.
4.750%,
1/15/2028
1,2
50,000
47,892
145,786
CAPITAL
MARKETS
—
0.1%
Jane
Street
Group
/
JSG
Finance,
Inc.
6.125%,
11/1/2032
1,2
42,000
41,639
CHEMICALS
—
0.2%
Methanex
Corp.
5.125%,
10/15/2027
1
50,000
48,968
COMMERCIAL
SERVICES
&
SUPPLIES
—
0.2%
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
3.375%,
8/31/2027
1,2
50,000
46,809
CONSTRUCTION
&
ENGINEERING
—
0.2%
MasTec,
Inc.
4.500%,
8/15/2028
1,2
50,000
48,519
CONSUMER
STAPLES
DISTRIBUTION
&
RETAIL
—
0.3%
US
Foods,
Inc.
4.750%,
2/15/2029
1,2
75,000
71,901
CONTAINERS
&
PACKAGING
—
0.2%
Berry
Global,
Inc.
5.625%,
7/15/2027
1,2
50,000
49,968
DISTRIBUTORS
—
0.2%
American
Builders
&
Contractors
Supply
Co.,
Inc.
4.000%,
1/15/2028
1,2
45,000
43,155
DIVERSIFIED
TELECOMMUNICATION
SERVICES
—
0.3%
Verizon
Communications,
Inc.
4.125%,
3/16/2027
1
75,000
74,175
ELECTRIC
UTILITIES
—
0.7%
NextEra
Energy
Capital
Holdings,
Inc.
1.875%,
1/15/2027
1
75,000
70,877
NextEra
Energy
Operating
Partners
LP
4.500%,
9/15/2027
1,2
50,000
47,913
Palmer
Square
Credit
Opportunities
ETF
SCHEDULE
OF
INVESTMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
9
See
accompanying
Notes
to
Financial
Statements.
Principal
Amount
Value
CORPORATE
BONDS
(Continued)
ELECTRIC
UTILITIES
(Continued)
Vistra
Operations
Co.
LLC
4.375%,
5/1/2029
1,2
50,000
$
47,121
165,911
ELECTRICAL
EQUIPMENT
—
0.3%
Vertiv
Group
Corp.
4.125%,
11/15/2028
1,2
75,000
70,856
FINANCIAL
SERVICES
—
0.2%
Block,
Inc.
6.500%,
5/15/2032
1,2
50,000
50,545
HEALTH
CARE
EQUIPMENT
&
SUPPLIES
—
0.3%
GE
HealthCare
Technologies,
Inc.
5.600%,
11/15/2025
1
85,000
85,599
HEALTH
CARE
PROVIDERS
&
SERVICES
—
0.7%
CVS
Health
Corp.
5.000%,
2/20/2026
1
75,000
74,966
HCA,
Inc.
5.200%,
6/1/2028
1
65,000
65,180
Universal
Health
Services,
Inc.
2.650%,
10/15/2030
1
75,000
64,480
204,626
HOTELS,
RESTAURANTS
&
LEISURE
—
0.2%
VOC
Escrow
Ltd.
5.000%,
2/15/2028
1,2
50,000
48,905
INSURANCE
—
0.4%
Acrisure
LLC
/
Acrisure
Finance,
Inc.
7.500%,
11/6/2030
1,2
50,000
51,538
AmWINS
Group,
Inc.
6.375%,
2/15/2029
1,2
50,000
50,338
101,876
MEDIA
—
0.2%
Univision
Communications,
Inc.
6.625%,
6/1/2027
1,2
50,000
49,857
MORTGAGE
REAL
ESTATE
INVESTMENT
TRUSTS
(REITS)
—
0.1%
Blackstone
Mortgage
Trust,
Inc.
3.750%,
1/15/2027
1,2
25,000
23,834
OIL,
GAS
&
CONSUMABLE
FUELS
—
0.2%
Tallgrass
Energy
Partners
LP
/
Tallgrass
Energy
Finance
Corp.
5.500%,
1/15/2028
1,2
50,000
48,133
Palmer
Square
Credit
Opportunities
ETF
SCHEDULE
OF
INVESTMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
10
See
accompanying
Notes
to
Financial
Statements.
Principal
Amount
Value
CORPORATE
BONDS
(Continued)
PASSENGER
AIRLINES
—
0.4%
Air
Canada
3.875%,
8/15/2026
1,2
75,000
$
72,929
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets
Ltd.
6.500%,
6/20/2027
1,2
37,500
37,763
110,692
SEMICONDUCTORS
&
SEMICONDUCTOR
EQUIPMENT
—
0.5%
Broadcom,
Inc.
3.150%,
11/15/2025
1
75,000
74,051
Entegris,
Inc.
4.750%,
4/15/2029
1,2
50,000
47,919
121,970
SOFTWARE
—
0.4%
Central
Parent,
Inc.
/
CDK
Global,
Inc.
7.250%,
6/15/2029
1,2
50,000
49,471
Oracle
Corp.
2.300%,
3/25/2028
1
75,000
69,358
118,829
SPECIALIZED
REITS
—
0.1%
Iron
Mountain,
Inc.
4.875%,
9/15/2029
1,2
25,000
23,779
TECHNOLOGY
HARDWARE,
STORAGE
&
PERIPHERALS
—
0.3%
Dell
International
LLC
/
EMC
Corp.
5.250%,
2/1/2028
1
75,000
75,927
TRADING
COMPANIES
&
DISTRIBUTORS
—
0.2%
WESCO
Distribution,
Inc.
6.375%,
3/15/2029
1,2
50,000
50,731
WIRELESS
TELECOMMUNICATION
SERVICES
—
0.3%
T-Mobile
USA,
Inc.
2.250%,
2/15/2026
1
75,000
72,900
TOTAL
CORPORATE
BONDS
(Cost
$2,189,113)
2,161,895
U.S.
GOVERNMENT
AND
AGENCY
SECURITIES
—2.2%
FINANCIAL
SERVICES
—
2.2%
U.S.
Treasury
Notes
3.500%,
1/31/2028
300,000
293,176
U.S.
Treasury
Notes
4.000%,
1/31/2029
300,000
295,961
589,137
TOTAL
U.S.
GOVERNMENT
AND
AGENCY
SECURITIES
(Cost
$588,206)
589,137
Palmer
Square
Credit
Opportunities
ETF
SCHEDULE
OF
INVESTMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
11
See
accompanying
Notes
to
Financial
Statements.
Number
of
Shares
Value
SHORT-TERM
INVESTMENTS
—
2.3%
Fidelity
Investments
Money
Market
Funds
-
Treasury
Portfolio
-
Class
I,
4.34%
6
649,937
$
649,937
U.S.
GOVERNMENT
AND
AGENCY
SECURITIES
—
1.4%
U.S.
Treasury
Bills,
4.130%,
5/15/2025
7
400,000
393,904
TOTAL
SHORT-TERM
INVESTMENTS
(Cost
$1,043,565)
1,043,841
TOTAL
INVESTMENTS
—
103.0%
(Cost
$28,557,745)
28,620,386
Liabilities
in
Excess
of
Other
Assets
—
(3.0)%
(823,483)
TOTAL
NET
ASSETS
—
100.0%
$
27,796,903
1
Callable.
2
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
are
restricted
and
may
be
resold
in
transactions
exempt
from
registration
normally
to
qualified
institutional
buyers.
The
total
value
of
these
securities
is
$21,127,567
which
represents
76.01%
of
total
net
assets
of
the
Fund.
3
Bank
loans
generally
pay
interest
at
rates
which
are
periodically
determined
by
reference
to
a
base
lending
rate
plus
a
premium.
All
loans
carry
a
variable
rate
of
interest.
These
base
lending
rates
are
generally
(i)
the
Prime
Rate
offered
by
one
or
more
major
United
States
banks,
(ii)
the
lending
rate
offered
by
one
or
more
European
banks
such
as
the
London
Interbank
Offered
Rate
("LIBOR"),
(iii)
the
Certificate
of
Deposit
rate,
or
(iv)
Secured
Overnight
Financing
Rate
("SOFR").
Bank
Loans,
while
exempt
from
registration,
under
the
Securities
Act
of
1933,
contain
certain
restrictions
on
resale
and
cannot
be
sold
publicly.
Floating
rate
bank
loans
often
require
prepayments
from
excess
cash
flow
or
permit
the
borrower
to
repay
at
its
election.
The
degree
to
which
borrowers
repay,
whether
as
a
contractual
requirement
or
at
their
election,
cannot
be
predicted
with
accuracy.
4
Floating
rate
security.
5
Denotes
investments
purchased
on
a
when-issued
or
delayed
delivery
basis.
6
The
rate
is
the
annualized
seven-day
yield
at
period
end.
7
The
rate
shown
represents
the
yield
at
period
end.
Palmer
Square
Funds’
Trust
STATEMENTS
OF
ASSETS
AND
LIABILITIES
As
of
December
31,
2024
(Unaudited)
12
See
accompanying
Notes
to
Financial
Statements.
Palmer
Square
CLO
Senior
Debt
ETF
Palmer
Square
Credit
Opportunities
ETF
Assets:
Unaffiliated
investments,
at
value*
$
24,238,107
$
28,620,386
Affiliated
investments,
at
value*
646,546
—
Cash
—
12,869
Receivables:
Investment
securities
sold
—
2,813
Interest
267,606
273,585
Total
assets
25,152,259
28,909,653
Liabilities:
Payables:
Investment
securities
purchased
500,000
1,100,701
Advisory
fees
3,642
12,049
Total
Liabilities
503,642
1,112,750
Net
Assets
$
24,648,617
$
27,796,903
Net
Assets
Consists
of:
Capital
(par
value
and
paid-in
surplus)
$
24,629,524
$
27,744,950
Total
distributable
earnings
19,093
51,953
Net
Assets
$
24,648,617
$
27,796,903
Shares
Outstanding
and
Net
Asset
Value
Per
Share:
Net
assets
applicable
to
shares
outstanding
$
24,648,617
$
27,796,903
Shares
outstanding
(unlimited
number
of
shares
authorized,
no
par
value)
1,225,001
1,380,000
Net
assets
value
per
share
$
20.12
$
20.14
*Identified
Cost
Unaffiliated
investments,
at
cost
$
24,218,074
$
28,557,745
Affiliated
investments,
at
cost
$
645,121
$
—
Palmer
Square
Funds’
Trust
STATEMENTS
OF
OPERATIONS
For
the
period
from
September
11,
2024
(Commencement
of
operations)
to
December
31,
2024
(Unaudited)
13
See
accompanying
Notes
to
Financial
Statements.
Palmer
Square
CLO
Senior
Debt
ETF
Palmer
Square
Credit
Opportunities
ETF
Investment
Income
Interest
income
from
unaffiliated
securities
$
300,159
$
424,348
Interest
income
from
affiliated
securities
13,410
—
Total
investment
income
313,569
424,348
Expenses:
Advisory
fees
(see
note
3)
10,561
33,526
Net
Expenses
10,561
33,526
Net
Investment
Income
303,008
390,822
Realized
Gain
and
Unrealized
Appreciation
:
21,499
50,945
Net
realized
gain
(loss)
on:
41
(11,696)
Unaffiliated
investments
—
(11,696
)
Affiliated
Investments
41
—
Net
realized
gain
(loss)
on
investments
41
(11,696
)
Net
change
in
unrealized
appreciation
on:
21,458
62,641
Unaffiliated
investments
20,033
62,641
Affiliated
investments
1,425
—
Net
change
in
unrealized
appreciation
of
investments
21,458
62,641
Net
realized
and
unrealized
gain
on
investments
21,499
50,945
Net
increase
in
net
assets
resulting
from
operations
$
324,507
$
441,767
Palmer
Square
Funds’
Trust
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
14
See
accompanying
Notes
to
Financial
Statements.
Palmer
Square
CLO
Senior
Debt
ETF
Palmer
Square
Credit
Opportunities
ETF
Period
Ended
December
31,
2024*
(Unaudited)
Period
Ended
December
31,
2024*
(Unaudited)
Operations
Net
investment
income
$
303,008
$
390,822
Net
realized
gain
(loss)
on
investments
41
(11,696)
Net
change
in
unrealized
appreciation
on
investments
21,458
62,641
Net
increase
in
net
assets
resulting
from
operations
324,507
441,767
Distributions
to
Shareholders:
Distributions
(305,414)
(389,814)
Total
distributions
to
shareholders
(305,414)
(389,814)
Capital
Transactions
1
Net
proceeds
from
shares
sold
24,629,524
29,273,669
Cost
of shares
redeemed
—
(1,528,719)
Net
increase
in
net
assets
from
capital
transactions
24,629,524
27,744,950
Total
increase
in
net
assets
24,648,617
27,796,903
Net
Assets:
Beginning
of
period
—
—
End
of
period
$
24,648,617
$
27,796,903
Capital
Share
Transactions:
Shares
sold
1,225,001
1,455,000
Shares
redeemed
—
(75,000)
Net
increase
in
capital
share
transactions
1,225,001
1,380,000
*
For
the
period
from
September
11,
2024
(Commencement
of
operations)
to
December
31,
2024.
1
Capital
share
transactions
may
include
transaction
fees
associated
with
Creation
and
Redemption
transactions
which
occurred
during
the
period.
See
Note
5
to
the
Financial
Statements.
Palmer
Square
Funds’
Trust
Palmer
Square
CLO
Senior
Debt
ETF
FINANCIAL
HIGHLIGHTS
15
See
accompanying
Notes
to
Financial
Statements.
For
the
period
September
11,
2024
*
to
December
31,
2024
(Unaudited)
PER
COMMON
SHARE
DATA
1
Net
asset
value,
beginning
of
period
$
20.00
Income
from
Investment
Operations:
Net
investment
income
2
0.35
Net
realized
and
unrealized
gain
0.06
Total
from
investment
operations
0.41
Less
Distributions:
From
net
investment
income
(
0.29
)
Total
Distributions
(
0.29
)
Net
asset
value,
end
of
period
$
20.12
Total
return
2.06%
Ratios
and
Supplemental
Data:
Net
assets,
end
of
period
(000's)
$
24,649
Ratio
of
expenses
to
average
net
assets
3
0.20%
Ratio
of
net
investment
income
to
average
net
assets
3
5.67%
Portfolio
Turnover
Rate
4
42%
*
Date
of
commencement
of
operations.
1
For
a
Fund
share
outstanding
for
the
entire
period.
2
Based
on
average
shares
outstanding
for
the
period.
3
Annualized
for
periods
less
than
one
year.
4
Not
annualized.
Palmer
Square
Funds’
Trust
Palmer
Square
Credit
Opportunities
ETF
FINANCIAL
HIGHLIGHTS
16
See
accompanying
Notes
to
Financial
Statements.
For
the
period
September
11,
2024
*
to
December
31,
2024
(Unaudited)
PER
COMMON
SHARE
DATA
1
Net
asset
value,
beginning
of
period
$
20.00
Income
from
Investment
Operations:
Net
investment
income
2
0.35
Net
realized
and
unrealized
gain
0.07
Total
from
investment
operations
0.42
Less
Distributions:
From
net
investment
income
(
0.28
)
Total
Distributions
(
0.28
)
Net
asset
value,
end
of
period
$
20.14
Total
return
2.11%
Ratios
and
Supplemental
Data:
Net
assets,
end
of
period
(000's)
$
27,797
Ratio
of
expenses
to
average
net
assets
3
0.50%
Ratio
of
net
investment
income
to
average
net
assets
3
5.72%
Portfolio
Turnover
Rate
4
36%
*
Date
of
commencement
of
operations.
1
For
a
Fund
share
outstanding
for
the
entire
period.
2
Based
on
average
shares
outstanding
for
the
period.
3
Annualized
for
periods
less
than
one
year.
4
Not
annualized.
Palmer
Square
Funds’
Trust
NOTES
TO
FINANCIAL
STATEMENTS
As
of
December
31,
2024
(Unaudited)
17
1. Organization
Palmer
Square
CLO
Senior
Debt
ETF
and
Palmer
Square
Credit
Opportunities
ETF (each
a
“Fund”
and
collectively
the
“Funds”)
are
organized
as
a
non-diversified
series
of
Palmer
Square
Funds’
Trust,
a
Delaware
statutory
trust
(the
“Trust”)
which
is
registered
as
an
open-end
management
investment
company
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”).
The
Funds
commenced
operations
on
September
11,
2024.
The
Palmer
Square
CLO
Senior
Debt
ETF
primary
investment
objective
is
to
seek
investment
results
that
correspond
generally
to
the
price
and
yield
(before
the
Fund’s
fees
and
expenses)
of
Palmer
Square
CLO
Senior
Debt
Index.
The
Palmer
Square
Credit
Opportunities
ETF
primary
investment
objective
is
to
seek
a
high
level
of
current
income.
A
secondary
objective
is
to
seek
long-term
capital
appreciation.
Each
Fund
is
an
investment
company
and
accordingly
follows
the
investment
company
accounting
and
reporting
guidance
of
the
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standard
Codification
Topic
946
“Financial
Services—Investment
Companies”.
2. Accounting
Policies
The
following
is
a
summary
of
the
significant
accounting
policies
consistently
followed
by
the
Funds
in
the
preparation
of
their
financial
statements.
The
preparation
of
financial
statements
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“GAAP”)
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
and
disclosures
in
the
financial
statements.
Actual
results
could
differ
from
these
estimates.
(a)
Valuation
of
Investments
The
Funds
value
equity
securities
at
the
last
reported
sale
price
on
the
principal
exchange
or
in
the
principal
over
the
counter
(“OTC”)
market
in
which
such
securities
are
traded,
as
of
the
close
of
regular
trading
on
the
NYSE
on
the
day
the
securities
are
being
valued
or,
if
the
last-quoted
sales
price
is
not
readily
available,
the
securities
will
be
valued
at
the
last
bid
or
the
mean
between
the
last
available
bid
and
ask
price.
Securities
traded
on
the
NASDAQ
are
valued
at
the
NASDAQ
Official
Closing
Price
(“NOCP”).
Pricing
services
generally
value
debt
securities
assuming
orderly
transactions
of
an
institutional
round
lot
size,
but
such
securities
may
be
held
or
transactions
may
be
conducted
in
such
securities
in
smaller,
odd
lot
sizes.
Odd
lots
often
trade
at
lower
prices
than
institutional
round
lots.
Investments
in
open-end
investment
companies
are
valued
at
the
daily
closing
net
asset
value
of
the
respective
investment
company.
Debt
securities
are
valued
by
utilizing
a
price
supplied
by
independent
pricing
service
providers.
The
independent
pricing
service
providers
may
use
various
valuation
methodologies
including
matrix
pricing
and
other
analytical
pricing
models
as
well
as
market
transactions
and
dealer
quotations.
These
models
generally
consider
such
factors
as
yields
or
prices
of
bonds
of
comparable
quality,
type
of
issue,
coupon,
maturity,
ratings
and
general
market
conditions.
If
a
price
is
not
readily
available
for
a
portfolio
security,
the
security
will
be
valued
at
fair
value
(the
amount
which
the
Funds
might
reasonably
expect
to
receive
for
the
security
upon
its
current
sale).
The
Board
of
Trustees
has
designated
the
Advisor
as
the
Funds’
valuation
designee
(the
“Valuation
Designee”)
to
make
all
fair
value
determinations
with
respect
to
the
Fund’s
portfolio
investments,
subject
to
the
Board’s
oversight.
As
the
Valuation
Designee,
the
Advisor
has
adopted
and
implemented
policies
and
procedures
to
be
followed
when
the
Fund
must
utilize
fair
value
pricing.
(b)
Bank
Loans
The
Funds
may
purchase
participations
in
commercial
loans.
Such
investments
may
be
secured
or
unsecured.
Loan
participations
typically
represent
direct
participation,
together
with
other
parties,
in
a
loan
to
a
corporate
borrower,
and
generally
are
offered
by
banks
or
other
financial
institutions
or
lending
syndicates.
The
Funds
may
participate
in
such
syndications,
or
can
buy
part
of
a
loan,
becoming
a
part
lender.
When
purchasing
indebtedness
and
loan
participations,
the
Funds
assume
the
credit
risk
associated
with
the
corporate
borrower
and
may
assume
the
credit
risk
associated
with
an
interposed
bank
or
other
financial
intermediary.
The
indebtedness
and
loan
participations
in
which
the
Funds
intend
to
invest
may
not
be
rated
by
any
nationally
recognized
rating
service.
Palmer
Square
Funds’
Trust
NOTES
TO
FINANCIAL
STATEMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
18
Bank
loans
may
be
structured
to
include
both
term
loans,
which
are
generally
fully
funded
at
the
time
of
investment
and
unfunded
loan
commitments,
which
are
contractual
obligations
for
future
funding.
Unfunded
loan
commitments
may
include
revolving
credit
facilities,
which
may
obligate
the
Funds
to
supply
additional
cash
to
the
borrower
on
demand,
representing
a
potential
financial
obligation
by
the
Funds
in
the
future.
The
Funds
may
receive
a
commitment
fee
based
on
the
undrawn
portion
of
the
underlying
line
of
credit
portion
of
a
senior
floating
rate
interest.
Commitment
fees
are
processed
as
a
reduction
in
cost.
In
addition,
the
Funds
may
enter
into,
or
acquire
participations
in,
delayed
funding
loans
and
revolving
credit
facilities.
Delayed
funding
loans
and
revolving
credit
facilities
are
borrowing
arrangements
in
which
the
lender
agrees
to
make
loans
up
to
a
maximum
amount
upon
demand
by
the
borrower
during
a
specified
term.
A
revolving
credit
facility
differs
from
a
delayed
funding
loan
in
that
as
the
borrower
repays
the
loan,
an
amount
equal
to
the
repayment
may
be
borrowed
again
during
the
term
of
the
revolving
credit
facility.
Delayed
funding
loans
and
revolving
credit
facilities
usually
provide
for
floating
or
variable
rates
of
interest.
These
commitments
may
have
the
effect
of
requiring
the
Fund
to
increase
its
investment
in
a
company
at
a
time
when
it
might
not
otherwise
decide
to
do
so
(including
at
a
time
when
the
company's
financial
condition
makes
it
unlikely
that
such
amounts
will
be
repaid).
To
the
extent
that
the
Funds
are
committed
to
advance
additional
funds,
it
will
at
all-times
segregate
or
"earmark"
liquid
assets,
in
an
amount
sufficient
to
meet
such
commitments.
(c)
Asset-Backed
Securities
Asset-backed
securities
include
pools
of
mortgages,
loans,
receivables
or
other
assets.
Payment
of
principal
and
interest
may
be
largely
dependent
upon
the
cash
flows
generated
by
the
assets
backing
the
securities,
and,
in
certain
cases,
supported
by
letters
of
credit,
surety
bonds,
or
other
credit
enhancements.
The
value
of
asset-backed
securities
may
also
be
affected
by
the
creditworthiness
of
the
servicing
agent
for
the
pool,
the
originator
of
the
loans
or
receivables,
or
the
financial
institution(s)
providing
the
credit
support.
In
addition,
asset-backed
securities
are
not
backed
by
any
governmental
agency.
(d)
Collateralized Loan
Obligations
Collateralized
Debt
Obligations
(“CDOs”)
include
Collateralized
Bond
Obligations
(“CBOs”),
Collateralized
Loan
Obligations
(“CLOs”)
and
other
similarly
structured
securities.
CBOs
and
CLOs
are
types
of
asset-backed
securities.
A
CBO
is
a
trust
which
is
backed
by
a
diversified
pool
of
high
risk,
below
investment
grade
fixed
income
securities.
A
CLO
is
a
trust
typically
collateralized
by
a
pool
of
loans,
which
may
include,
among
others,
domestic
and
foreign
senior
secured
loans,
senior
unsecured
loans,
and
subordinate
corporate
loans,
including
loans
that
may
be
rated
below
investment
grade
or
equivalent
unrated
loans.
The
risks
of
an
investment
in
a
CDO
depend
largely
on
the
type
of
the
collateral
securities
and
the
class
of
the
CDO
in
which
the
Funds
invest.
CDOs
carry
additional
risks
including,
but
not
limited
to,
(i)
the
possibility
that
distributions
from
collateral
securities
will
not
be
adequate
to
make
interest
or
other
payments,
(ii)
the
collateral
may
decline
in
value
or
default,
(iii)
the
Funds
may
invest
in
CDOs
that
are
subordinate
to
other
classes,
and
(iv)
the
complex
structure
of
the
security
may
not
be
fully
understood
at
the
time
of
investment
and
may
produce
disputes
with
the
issuer
or
unexpected
investment
results.
(e)
Investment
Transactions,
Investment
Income
and
Expenses
Investment
transactions
are
accounted
for
on
the
trade
date.
Realized
gains
and
losses
on
investments
are
determined
on
the
identified
cost
basis.
Dividend
income
is
recorded
net
of
applicable
withholding
taxes
on
the
ex-dividend
date
and
interest
income
is
recorded
on
an
accrual
basis.
Withholding
taxes
on
foreign
dividends,
if
applicable,
are
paid
(a
portion
of
which
may
be
reclaimable)
or
provided
for
in
accordance
with
the
applicable
country’s
tax
rules
and
rates
and
are
disclosed
in
the
Statement
of
Operations.
Withholding
tax
reclaims
are
filed
in
certain
countries
to
recover
a
portion
of
the
amounts
previously
withheld.
The
Funds
record
a
reclaim
receivable
based
on
a
number
of
factors,
including
a
jurisdiction’s
legal
obligation
to
pay
reclaims
as
well
as
payment
history
and
market
convention.
Discounts
on
debt
securities
are
accreted
or
amortized
to
interest
income
over
the
lives
of
the
respective
securities
using
the
effective
interest
method.
Premiums
for
callable
debt
securities
are
amortized
to
the
earliest
call
date,
if
the
call
price
was
less
than
the
purchase
price.
If
the
call
price
was
not
at
par
and
the
security
was
not
called,
the
security
is
amortized
to
the
next
call
price
and
date.
Expenses
incurred
by
the
Trust
with
respect
to
more
than
one
fund
are
allocated
in
proportion
to
the
net
assets
of
each
fund
except
where
allocation
of
direct
expenses
to
each
Fund
or
an
alternative
allocation
method
can
be
more
appropriately
made.
Palmer
Square
Funds’
Trust
NOTES
TO
FINANCIAL
STATEMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
19
(f)
Federal
Income
Taxes
The
Funds
intend
to
comply
with
the
requirements
of
Subchapter
M
of
the
Internal
Revenue
Code
applicable
to
regulated
investment
companies
and
to
distribute
substantially
all
of
their
net
investment
income
and
any
net
realized
gains
to
their
shareholders.
Therefore,
no
provision
is
made
for
federal
income
or
excise
taxes.
Due
to
the
timing
of
dividend
distributions
and
the
differences
in
accounting
for
income
and
realized
gains
and
losses
for
financial
statement
and
federal
income
tax
purposes,
the
fiscal
year
in
which
amounts
are
distributed
may
differ
from
the
year
in
which
the
income
and
realized
gains
and
losses
are
recorded
by
the
Funds.
Accounting
for
Uncertainty
in
Income
Taxes
(the
“Income
Tax
Statement”)
requires
an
evaluation
of
tax
positions
taken
(or
expected
to
be
taken)
in
the
course
of
preparing
a
Fund’s
tax
returns
to
determine
whether
these
positions
meet
a
“more-likely-than-not”
standard
that,
based
on
the
technical
merits,
have
a
more
than
fifty
percent
likelihood
of
being
sustained
by
a
taxing
authority
upon
examination.
A
tax
position
that
meets
the
“more-likely-than-not”
recognition
threshold
is
measured
to
determine
the
amount
of
benefit
to
recognize
in
the
financial
statements.
The
Funds
recognize
interest
and
penalties,
if
any,
related
to
unrecognized
tax
benefits
as
income
tax
expense
in
the
Statement
of
Operations.
The
Income
Tax
Statement
requires
management
of
the
Funds
to
analyze
tax
positions
taken
in
the
prior
three
open
tax
years,
if
any,
and
tax
positions
expected
to
be
taken
in
the
Fund’s
current
tax
year,
as
defined
by
the
IRS
statute
of
limitations
for
all
major
jurisdictions,
including
federal
tax
authorities
and
certain
state
tax
authorities.
As
of
December
31,
2024, the
Funds
did
not
have
a
liability
for
any
unrecognized
tax
benefits.
The
Funds
have
no
examination
in
progress
and
are
not
aware
of
any
tax
positions
for
which
they
are
reasonably
possible
that
the
total
amounts
of
unrecognized
tax
benefits
will
significantly
change
in
the
next
twelve
months.
(g)
Distributions
to
Shareholders
The
Funds
will
make
distributions
of
net
investment
income monthly
and
net
capital
gains,
if
any,
at
least
annually.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
The
amount
and
timing
of
distributions,
typically
in
December,
are
determined
in
accordance
with
federal
income
tax
regulations,
which
may
differ
from
GAAP.
The
character
of
distributions
made
during
the
year
from
net
investment
income
or
net
realized
gains
may
differ
from
the
characterization
for
federal
income
tax
purposes
due
to
differences
in
the
recognition
of
income,
expense
and
gain
(loss)
items
for
financial
statement
and
tax
purposes.
3. Investment
Advisory
and
Other
Agreements
The
Trust,
on
behalf
of
the
Funds,
entered
into
an
Investment
Advisory
Agreement
(the
“Agreement”)
with
Palmer
Square
Capital
Management
LLC
(the
“Advisor”).
Under
the
terms
of
the
Agreement,
the Palmer
Square
CLO
Senior
Debt
ETF
pays
a
monthly
investment
advisory
fee
to
the
Advisor
at
the
annual
rate
of
0.20%
of
its
average
daily
net
assets
and
the Palmer
Square
Credit
Opportunities
ETF
pays
a
monthly
investment
advisory
fee
to
the
Advisor
at
the
annual
rate
of
0.50%
of
its
average
daily
net
assets.
Any
purchases
and
sales,
realized
gains/losses
and
recorded
dividends
from
affiliated
instruments
during
the period
ended
December
31,
2024
can
be
found
in
a
table
located
in
the
Schedule
of
Investments.
4. Federal
Income
Taxes
At
December
31,
2024,
the
cost
of
securities
on
a
tax
basis
and
gross
unrealized
appreciation
and
depreciation
on
investments
and
securities
sold
short
for
federal
income
tax
purposes
were
as
follows:
Palmer
Square
CLO
Senior
Debt
ETF
Palmer
Square
Credit
Opportunities
ETF
Cost
of
investments
$
24,863,195
$
28,557,745
Gross
unrealized
appreciation
29,302
92,764
Gross
unrealized
depreciation
(7,844)
(30,123)
Net
unrealized
appreciation
on
investments
21,458
62,641
Palmer
Square
Funds’
Trust
NOTES
TO
FINANCIAL
STATEMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
20
As
of
December
31,
2024,
the
components
of
accumulated
earnings/(deficit)
on
tax
basis
were
as
follows:
The
tax
character
of
the
distribution
paid
during
the
period were
as
follows:
At
December
31,
2024,
the
Funds
had
capital
loss
carryforwards,
which
reduce
the
Funds'
taxable
income
arising
from
future
net
realized
gains
on
investments,
if
any,
to
the
extent
permitted
by
the
Code,
and
thus
will
reduce
the
amount
of
distributions
to
shareholders
which
would
otherwise
be
necessary
to
relieve
the
Funds
of
any
liability
for
federal
tax.
Pursuant
to
the
Code,
such
as
capital
loss
carryforwards
will
expire
as
follows:
5. Issuance
and
Redemption
of
Fund
Shares
Each
Fund
only
issues
and
redeems
shares
to
certain
financial
institutions
(“Authorized
Participants”)
in
exchange
for
the
deposit
or
delivery
of
a
basket
of
assets
(securities
and/or
cash),
in
large
blocks
known
as
Creation
Units,
each
of
which
is
comprised
of
a
specified
number
of
shares.
An
Authorized
Participant
is
either
(i)
a
broker-dealer
or
other
participant
in
the
clearing
process
through
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corporation
or
(ii)
a
Depository
Trust
Company
participant
and,
in
each
case,
must
have
executed
a
Participation
Agreement
with
the
Distributor.
Retail
investors
may
only
purchase
and
sell
fund
shares
in
the
secondary
market
through
a
broker-dealer
and
such
transactions
may
be
subject
to
customary
commission
and
fee
rates
imposed
by
the
broker-dealer.
Authorized
Participants
may
pay
transaction
fees
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units.
The
transaction
fees
are
paid
directly
to
the
Fund
and
used
to
offset
Fund
custody
fees.
Certain
fees
or
costs
associated
with
Creation
Unit
purchases
may
be
paid
in
certain
circumstances.
In
addition,
the
Funds
may
from
time
to
time
Palmer
Square
CLO
Senior
Debt
ETF
Palmer
Square
Credit
Opportunities
ETF
Undistributed
ordinary
income
$
—
$
3,912
Accumulated
capital
and
other
losses
$
(2,270
)
$
(14,600
)
Unrealized
appreciation
$
21,458
$
62,641
Period
Ended
December
31,
2024
Distributions
paid
from
ordinary
income
Distributions
paid
from
net
long-term
capital
gains
Tax
return
of
capital
Total
Distributions
Palmer
Square
CLO
Senior
Debt
ETF
$
305,414
$
—
$
—
$
305,414
Palmer
Square
Credit
Opportunities
ETF
$
389,814
$
—
$
—
$
389,814
Capital
Loss
Carryover
-
Long
Term
Capital
Loss
Carryover
-
Short
Term
Palmer
Square
CLO
Senior
Debt
ETF
$
—
$
2,270
Palmer
Square
Credit
Opportunities
ETF
$
—
$
14,600
Palmer
Square
Funds’
Trust
NOTES
TO
FINANCIAL
STATEMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
21
waive
the
standard
transaction
fee.
The
net
custody
fees
charged
to
the
Funds
are
paid
for
by
the
Investment
Adviser
through
the
Funds’
Unitary
Fee. Transaction
fees
assessed
during
the
period
are
included
in
the
proceeds
from
shares
issued
on
the
Statement
of
Changes
in
Net
Assets.
6. Investment
Transactions
For
the period
ended
December
31,
2024, purchases
and
sales
of
investments,
(excluding
short-term
investments,
and
In-Kind
transactions)
were
as
follows:
7. Indemnifications
In
the
normal
course
of
business,
the
Funds
enter
into
contracts
that
contain
a
variety
of
representations
which
provide
general
indemnifications.
The
Funds’
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Funds
that
have
not
yet
occurred.
However,
the
Funds
expect
the
risk
of
loss
to
be
remote.
8. Fair
Value
Measurements
and
Disclosure
Fair
Value
Measurements
and
Disclosures
defines
fair
value,
establishes
a
framework
for
measuring
fair
value
in
accordance
with
GAAP,
and
expands
disclosure
about
fair
value
measurements.
It
also
provides
guidance
on
determining
when
there
has
been
a
significant
decrease
in
the
volume
and
level
of
activity
for
an
asset
or
a
liability,
when
a
transaction
is
not
orderly,
and
how
that
information
must
be
incorporated
into
a
fair
value
measurement.
Under
Fair
Value
Measurements
and
Disclosures,
various
inputs
are
used
in
determining
the
value
of
the
Funds’
investments.
These
inputs
are
summarized
into
three
broad
Levels
as
described
below:
Level
1
–
Unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
that
the
Funds
have
the
ability
to
access.
Level
2
–
Observable
inputs
other
than
quoted
prices
included
in
Level
1
that
are
observable
for
the
asset
or
liability,
either
directly
or
indirectly.
These
inputs
may
include
quoted
prices
for
the
identical
instrument
on
an
inactive
market,
prices
for
similar
instruments,
interest
rates,
prepayment
speeds,
credit
risk,
yield
curves,
default
rates
and
similar
data.
Level
3
–
Unobservable
inputs
for
the
asset
or
liability,
to
the
extent
relevant
observable
inputs
are
not
available,
representing
the
Funds’
own
assumptions
about
the
assumptions
a
market
participant
would
use
in
valuing
the
asset
or
liability,
and
would
be
based
on
the
best
information
available.
The
availability
of
observable
inputs
can
vary
from
security
to
security
and
is
affected
by
a
wide
variety
of
factors,
including
for
example,
the
type
of
security,
whether
the
security
is
new
and
not
yet
established
in
the
marketplace,
the
liquidity
of
markets,
and
other
characteristics
particular
to
the
security.
To
the
extent
that
valuation
is
based
on
models
or
inputs
that
are
less
observable
or
unobservable
in
the
market,
the
determination
of
fair
value
requires
more
judgment.
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
Levels
of
the
fair
value
hierarchy.
All
Other
U.S.
Government
1
Purchases
at
Cost
Sales
or
Maturity
Proceeds
Purchases
at
Cost
Sales
or
Maturity
Proceeds
Palmer
Square
CLO
Senior
Debt
ETF
$
32,323,850
$
7,574,884
$
—
$
—
Palmer
Square
Credit
Opportunities
ETF
$
34,874,838
$
7,339,513
$
—
$
—
1
U.S.
Government
transactions
are
defined
as
those
involving
long-term
U.S.
Treasury
bills,
bonds
and
notes.
Palmer
Square
Funds’
Trust
NOTES
TO
FINANCIAL
STATEMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
22
9. Market
Disruption
and
Geopolitical
Risks
Certain
local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illnesses
and/or
other
public
health
issues,
financial
institution
instability
or
other
events
may
have
a
significant
impact
on
a
security
or
instrument.
These
types
of
events
and
other
like
them
are
collectively
referred
to
as
“Market
Disruptions
and
Geopolitical
Risks”
and
they
may
have
adverse
impacts
on
the
worldwide
economy,
as
well
as
the
economies
of
individual
countries,
the
financial
health
of
individual
companies
and
the
market
in
general
in
significant
and
unforeseen
ways.
Some
of
the
impacts
noted
in
recent
times
include
but
are
not
limited
to
embargos,
political
actions,
supply
chain
disruptions,
bank
failures,
restrictions
to
investment
and/or
monetary
movement
including
the
forced
selling
of
securities
or
the
inability
to
participate
impacted
markets.
The
duration
of
these
events
could
adversely
affect
the
Fund’s
performance,
the
performance
of
the
securities
in
which
the
Fund
invests
and
may
lead
to
losses
on
your
investment.
The
ultimate
impact
of
“Market
Disruptions
and
Geopolitical
Risks”
on
the
financial
performance
of
the
Fund’s
investments
is
not
reasonably
estimable
at
this
time.
Management
is
actively
monitoring
these
events.
10. New
Accounting
Pronouncements
and
Regulatory
Updates
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
The
amendments
in
the
ASU
provide
optional
temporary
financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021.
The
ASU
is
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
In
December
2022,
the
FASB
issued
ASU
No.
2022-06,
Reference
Rate
Reform
(Topic
848)
-
Deferral
of
the
Sunset
Date
of
Topic
848,
which
extends
the
period
through
December
31,
2024.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements.
In
November
2023,
the
FASB
issued
ASU
No.
2023-07,
“Segment
Reporting
(Topic
280):
Improvements
to
Reportable
Segment
Disclosures
(“ASU
2023-07”),”
which
enhances
disclosure
requirements
about
significant
segment
expenses
that
are
regularly
provided
to
the
chief
operating
decision
maker
(the
“CODM”).
ASU
2023-07
among
other
things,
(i)
requires
a
single
segment
public
entity
to
follow
segment
guidance,
(ii)
requires
a
public
entity
to
disclose
the
title
and
position
of
the
CODM
and
an
explanation
of
how
the
CODM
uses
the
reported
measure(s)
of
segment
profit
or
loss
in
assessing
segment
performance
and
deciding
how
to
allocate
resources
and
(iii)
provides
the
ability
to
elect
more
than
one
performance
measure.
ASU
2023-07
is
effective
for
the
fiscal
year
beginning
after
December
15,
2023,
and
interim
periods
beginning
with
the
first
quarter
ended
2025.
Early
adoption
is
permitted
and
retrospective
adoption
is
required
for
all
prior
periods
presented.
The
Funds
are
currently
assessing
the
impact
of
this
guidance,
however,
the
Funds
do
not
expect
a
material
impact
on
its’
financial
statements.
Palmer
Square
CLO
Senior
Debt
ETF
Level
1
Level
2
Level
3
Total
Assets
Investments
Collateralized
Loan
Obligations
$
—
$
24,751,466
$
—
$
24,751,466
Short-Term
Investments
133,187
—
—
133,187
Total
Investments
$
133,187
$
24,751,466
$
—
$
24,884,653
Palmer
Square
Credit
Opportunities
ETF
Level
1
Level
2
Level
3
Total
Assets
Investments
Asset-Backed
Securities
$
—
$
2,705,640
$
—
$
2,705,640
Bank
Loans
—
3,003,447
—
3,003,447
Collateralized
Loan
Obligations
—
19,116,426
—
19,116,426
Corporate
Bonds
—
2,161,895
—
2,161,895
U.S.
Government
and
Agency
Securities
—
589,137
—
589,137
Short-Term
Investments
649,937
393,904
—
1,043,841
Total
Investments
$
649,937
$
27,970,449
$
—
$
28,620,386
Palmer
Square
Funds’
Trust
NOTES
TO
FINANCIAL
STATEMENTS
-
Continued
As
of
December
31,
2024
(Unaudited)
23
11. Subsequent Events
The
Funds
have
adopted
financial
reporting
rules
regarding
subsequent
events
which
require
an
entity
to
recognize
in
the
financial
statements
the
effects
of
all
subsequent
events
that
provide
additional
evidence
about
conditions
that
existed
at
the
date
of
the
balance
sheet.
Management
has
evaluated
each
Fund’s
related
events
and
transactions
that
occurred
through
the
date
of
issuance
of
each
Fund’s
financial
statements.
There
were
no
events
or
transactions
that
occurred
during
this
period
that
materially
impacted
the
amounts
or
disclosures
in
each
Fund’s
financial
statements.
24
Palmer
Square
Funds’
Trust
Additional
Information
-
Items
8-11
Item
8.
Changes
in
and
Disagreements
with
Accountants
for
Open-End
Management
Investment
Companies.
Not
applicable.
Item
9.
Proxy
Disclosures
for
Open-End
Management
Investment
Companies.
There
were
no
matters
submitted
during
the
period
covered
by
the
report
to
a
vote
of
shareholders,
through
the
solicitation
of
proxies
or
otherwise.
Item
10.
Remuneration
Paid
to
Directors,
Officers,
and
Others
of
Open-End
Management
Investment
Companies.
The
information
is
included
as
part
of
the
Financial
Statements
filed
under
Item
7
for
this
Form.
Item
11.
Statement
Regarding
Basis
for
Approval
of
Investment
Advisory
Contact.
Disclosure
Regarding
the
Board
of
Trustees’
Approval
of
the
Investment
Advisory
Agreement
for
Palmer
Square
Funds
Trust
The
Board
of
Trustees
(the
“Board”
or
the
“Trustees”)
of
Palmer
Square
Funds
Trust
(the
“Trust”)
met
on
April
16,
2024
(the
“Meeting”)
to
consider
the
initial
approval
of
the
investment
advisory
agreement
between
Palmer
Square
Capital
Management
LLC
(“Palmer
Square”
or
the
“Adviser”)
and
the
Trust,
on
behalf
of
the
Palmer
Square
Credit
Opportunities
ETF
(the
“Fund”).
In
addition,
on
April
16,
2024,
the
Trustees
who
are
not
“interested
persons”
of
the
Trust
within
the
meaning
of
the
Investment
Company
Act
of
1940
(the
“Independent
Trustees”),
and
who
constitute
a
majority
of
the
Board,
met
with
the
Trust’s
legal
counsel
to
consider
the
investment
advisory
agreement
(“Agreement”).
In
connection
with
its
consideration
of
the
Agreement,
the
Board
reviewed
and
discussed
various
information
that
had
been
provided
prior
to
the
Meeting,
including
the
form
of
Agreement,
a
memorandum
provided
by
the
Trust’s
legal
counsel
summarizing
the
guidelines
relevant
to
the
Board’s
consideration
of
the
approval
of
the
Agreement,
a
memorandum
and
other
information
provided
by
the
Adviser
(including
the
Adviser’s
Form
ADV
Part
1A
and
select
financial
information
of
the
Adviser),
information
regarding
the
expected
profitability
of
the
Funds,
the
performance
of
comparable
funds,
management
fees
and
expense
ratios
(including
comparative
fee
and
expense
information),
best
execution
and
trading
information
and
other
pertinent
information.
Based
on
its
evaluation
of
this
information,
the
Board,
including
all
of
the
Independent
Trustees,
approved
the
Agreement
for
the
Funds
for
an
initial
two-year
period.
In
considering
the
Agreement
and
reaching
its
conclusions,
the
Board
reviewed
and
analyzed
various
factors
that
it
determined
were
relevant,
including
the
factors
below.
In
deciding
to
approve
the
Agreement
for
the
Fund,
the
Board
did
not
identify
any
single
factor
as
determinative
but
considered
all
factors
together.
Nature,
Extent
and
Quality
of
Services
to
be
Provided
to
the
Fund
The
Board
considered
the
nature,
extent
and
quality
of
the
services
to
be
provided
by
the
Adviser
to
the
Fund.
They
noted
that
under
the
Agreement
the
Adviser
is
responsible
for:
(i)
managing
the
investment
operations
of
the
Fund
in
accordance
with
the
Fund’s
investment
objective
and
policies,
applicable
legal
and
regulatory
requirements,
and
the
instructions
of
the
Trustees;
(ii)
providing
necessary
and
appropriate
reports
and
information
to
the
Trustees;
(iii)
maintaining
all
necessary
books
and
records
pertaining
to
the
Trust’s
securities
transactions;
and
(iv)
furnishing
the
Fund
with
the
assistance,
cooperation
and
information
necessary
for
the
Fund
to
meet
various
legal
requirements
regarding
registration
and
reporting.
They
noted
the
distinctive
nature
of
the
Fund,
as
exchange-
traded
funds
(“ETFs”),
and
the
experience
and
expertise
appropriate
in
an
adviser
to
funds
of
that
nature.
The
Trustees
reviewed
the
background
and
experience
of
the
Adviser’s
senior
management,
including
those
individuals
responsible
for
the
investment
and
compliance
operations
of
the
Trust,
and
the
responsibilities
of
the
latter
with
respect
to
the
Fund.
The
Board
also
considered
other
services
the
Adviser
would
provide
the
Fund,
such
as
overseeing
the
Fund’s
other
service
providers.
The
Board
concluded
that
the
nature,
extent
and
quality
of
the
services
to
be
provided
by
the
Adviser
to
the
Fund
were
appropriate
and
that
the
Fund
was
likely
to
benefit
from
services
provided
under
the
Agreement.
25
Palmer
Square
Funds’
Trust
Additional
Information
-
Items
8-11
-
Continued
Investment
Performance
Because
the
Fund
had
not
yet
commenced
operations,
the
Board
did
not
consider
any
performance
information
with
respect
to
the
Fund.
The
Board
did
consider
the
performance
of
other
funds
managed
by
the
Adviser
that
utilize
similar
strategies
as
those
that
the
Fund
will
utilize.
Expense
Information
The
Board
examined
the
proposed
fee
and
expense
information
for
the
Fund,
including
a
comparison
of
such
information
to
other
similar
funds.
Based
on
their
review
of
the
industry
data,
the
Trustees
found
that
the
proposed
unitary
fee
would
be
competitive
as
it
relates
to
the
applicable
category.
Costs
of
Services
Provided
and
Profitability
The
Board
considered
information
about
the
financial
condition
of
the
Adviser
and
its
parent
company
and
determined
that
the
Adviser’s
financial
condition
was
sound
and
that
the
Adviser
has
maintained
adequate
profit
levels
to
support
its
proposed
services
to
the
Fund
from
the
revenue
of
its
overall
investment
advisory
business.
The
Board
also
considered
information
regarding
the
Adviser’s
expected
profitability
ratio
and
concluded
that
the
Adviser’s
expected
profitability
was
reasonable.
In
light
of
all
of
the
information
that
it
received
and
considered,
the
Board
concluded
that
the
proposed
unitary
fee
for
the
Fund
was
reasonable.
Economies
of
Scale
and
Fee
Levels
Reflecting
Those
Economies
Because
the
Fund
had
not
yet
commenced
operations,
the
Board
did
not
consider
whether
any
alternative
fee
structures,
such
as
breakpoint
fees,
would
be
appropriate
to
reflect
any
economies
of
scale
that
may
result
from
increases
in
a
Fund’s
assets.
The
Board
considered
information
discussed
at
the
Meeting
regarding
break-even
levels.
Benefits
to
be
Derived
from
the
Relationship
with
the
Funds
The
Board
considered
other
potential
benefits
to
the
Adviser
from
serving
as
adviser
to
the
Fund
(in
addition
to
the
advisory
fee),
including
greater
name
recognition.
The
Board
noted
that
the
Adviser’s
affiliated
entities
may
experience
indirect
benefits
from
the
Adviser’s
association
with
the
Fund.
The
Board
concluded
that
other
benefits
that
may
be
realized
by
the
Adviser
from
its
relationship
with
the
Fund
were
appropriate.
Conclusion
Based
on
their
evaluation
of
the
above
factors,
as
well
as
other
factors
relevant
to
their
consideration
of
the
Agreement,
the
Trustees,
including
all
of
the
Independent
Trustees,
concluded
that
the
approval
of
the
Agreement
was
in
the
best
interests
of
the
Fund
and
its
shareholders.
Disclosure
Regarding
the
Board
of
Trustees’
Approval
of
the
Investment
Advisory
Agreement
for
Palmer
Square
Funds
Trust
The
Board
of
Trustees
(the
“Board”
or
the
“Trustees”)
of
Palmer
Square
Funds
Trust
(the
“Trust”)
met
on
June
10,
2024
(the
“Meeting”)
to
consider
the
initial
approval
of
the
investment
advisory
agreement
between
Palmer
Square
Capital
Management
LLC
(“Palmer
Square”
or
the
“Adviser”)
and
the
Trust,
on
behalf
of
(i)
the
Palmer
Square
CLO
Senior
Debt
ETF
(“CLO
Senior
Debt
ETF”)
and
(ii)
the
Palmer
Square
CLO
Debt
ETF
(“CLO
Debt
ETF”)
(each
a
“New
Fund”
and
collectively,
the
“New
Funds”).
In
addition,
on
June
10,
2024,
the
Trustees
who
are
not
“interested
persons”
of
the
Trust
within
the
meaning
of
the
Investment
Company
Act
of
1940
(the
“Independent
Trustees”),
and
who
constitute
a
majority
of
the
Board,
met
with
the
Trust’s
legal
counsel
to
consider
the
investment
advisory
agreement
(“Agreement”).
In
connection
with
its
consideration
of
the
Agreement,
the
Board
reviewed
and
discussed
various
information
that
had
been
provided
prior
to
the
Meeting,
including
the
Agreement,
a
memorandum
provided
by
the
Trust’s
legal
counsel
summarizing
the
guidelines
relevant
to
the
Board’s
consideration
of
the
approval
of
the
investment
advisory
agreement,
a
memorandum
and
other
information
provided
by
the
Adviser
(including
the
Adviser’s
Form
ADV
Part
1A
and
select
financial
information
of
the
Adviser),
information
regarding
26
Palmer
Square
Funds’
Trust
Additional
Information
-
Items
8-11
-
Continued
the
expected
profitability
of
the
New
Funds,
the
performance
of
comparable
funds,
comparative
fee
and
expense
information,
trading
information
and
other
pertinent
information.
Based
on
its
evaluation
of
this
information,
the
Board,
including
all
of
the
Independent
Trustees,
approved
the
Agreement
for
the
New
Funds
for
an
initial
two-year
period.
In
considering
the
Agreement
and
reaching
its
conclusions,
the
Board
reviewed
and
analyzed
various
factors
that
it
determined
were
relevant,
including
the
factors
below.
In
deciding
to
approve
the
Agreement
for
the
New
Funds,
the
Board
did
not
identify
any
single
factor
as
determinative
but
considered
all
factors
together.
Nature,
Extent
and
Quality
of
Services
to
be
Provided
to
the
New
Funds
The
Board
considered
the
nature,
extent
and
quality
of
the
services
to
be
provided
by
the
Adviser
to
the
New
Funds.
They
noted
that
under
the
Agreement
the
Adviser
is
responsible
for:
(i)
managing
the
investment
operations
of
the
New
Funds
in
accordance
with
the
Fund’s
investment
objective
and
policies,
applicable
legal
and
regulatory
requirements,
and
the
instructions
of
the
Trustees;
(ii)
providing
necessary
and
appropriate
reports
and
information
to
the
Trustees;
(iii)
maintaining
all
necessary
books
and
records
pertaining
to
the
Trust’s
securities
transactions;
and
(iv)
furnishing
each
New
Fund
with
the
assistance,
cooperation
and
information
necessary
for
the
New
Funds
to
meet
various
legal
requirements
regarding
registration
and
reporting.
They
noted
the
distinctive
nature
of
the
New
Funds,
as
exchange-traded
funds
(“ETFs”)
investing
in
accordance
with
their
applicable
index,
and
the
experience
and
expertise
appropriate
in
an
adviser
to
funds
of
that
nature.
The
Trustees
reviewed
the
background
and
experience
of
the
Adviser’s
senior
management,
including
those
individuals
responsible
for
the
investment
and
compliance
operations
of
the
Trust,
and
the
responsibilities
of
the
latter
with
respect
to
the
New
Funds.
The
Board
also
considered
other
services
the
Adviser
would
provide
the
New
Funds,
such
as
overseeing
the
New
Funds’
other
service
providers.
The
Board
concluded
that
the
nature,
extent
and
quality
of
the
services
to
be
provided
by
the
Adviser
to
the
New
Funds
were
appropriate
and
that
the
New
Funds
were
likely
to
benefit
from
services
provided
under
the
Agreement.
Investment
Performance
Because
the
New
Funds
had
not
yet
commenced
operations,
the
Board
did
not
consider
any
performance
information
with
respect
to
the
New
Funds.
The
Trustees
noted
that,
in
view
of
the
distinctive
investment
objective
of
each
New
Fund,
the
investment
performance
of
the
New
Funds
in
absolute
terms
was
not
of
the
importance
that
normally
attaches
to
the
performance
of
actively
managed
funds.
Expense
Information
The
Board
examined
the
proposed
fee
and
expense
information
for
the
New
Funds,
including
a
comparison
of
such
information
to
other
similar
funds.
Based
on
their
review
of
the
industry
data,
the
Trustees
found
that
the
proposed
unitary
fee
would
be
competitive
as
it
relates
to
the
applicable
category.
Costs
of
Services
Provided
and
Profitability
The
Board
considered
information
about
the
financial
condition
of
the
Adviser
and
its
parent
company
and
determined
that
the
Adviser’s
financial
condition
was
sound
and
that
the
Adviser
has
maintained
adequate
profit
levels
to
support
its
proposed
services
to
the
New
Funds
from
the
revenue
of
its
overall
investment
advisory
business.
The
Board
also
considered
information
regarding
the
Adviser’s
expected
profitability
ratio
and
concluded
that
the
Adviser’s
expected
profitability
was
reasonable.
In
light
of
all
of
the
information
that
it
received
and
considered,
the
Board
concluded
that
the
proposed
unitary
fee
for
each
New
Fund
was
reasonable.
Economies
of
Scale
and
Fee
Levels
Reflecting
Those
Economies
Because the
New
Funds
had
not
yet
commenced
operations,
the
Board
did
not
consider
whether
any
alternative
fee
structures,
such
as
breakpoint
fees,
would
be
appropriate
to
reflect
any
economies
of
scale
that
may
result
from
increases
in
a
New
Fund’s
assets.
The
Board
considered
information
discussed
at
the
Meeting
regarding
break-even
levels.
27
Palmer
Square
Funds’
Trust
Additional
Information
-
Items
8-11
-
Continued
Benefits
to
be
Derived
from
the
Relationship
with
the
New
Funds
The
Board
considered
other
potential
benefits
to
the
Adviser
from
serving
as
adviser
to
the
New
Funds
(in
addition
to
the
advisory
fee),
including
greater
name
recognition.
The
Board
noted
that
the
Adviser’s
affiliated
entities
may
experience
indirect
benefits
from
the
Adviser’s
association
with
the
New
Funds.
The
Board
concluded
that
other
benefits
that
may
be
realized
by
the
Adviser
from
its
relationship
with
the
New
Funds
were
appropriate.
Conclusion
Based
on
their
evaluation
of
the
above
factors,
as
well
as
other
factors
relevant
to
their
consideration
of
the
Agreement,
the
Trustees,
including
all
of
the
Independent
Trustees,
concluded
that
the
approval
of
the
Agreement
was
in
the
best
interests
of
each
New
Fund
and
its
shareholders.
PSFTSA0225
Item 12. Disclosure of Proxy
Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to the Registrant.
Item 13. Portfolio Managers of Closed-End Management
Investment Companies.
Not applicable to the Registrant.
Item 14. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
Not applicable to the Registrant.
Item 15. Submission of Matters to a Vote of Security
Holders.
There were no material changes to the procedures by which
shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 16. Controls and Procedures.
(a)
The Registrant’s principal executive officer and principal financial
officer have concluded, based on their evaluation of the registrant’s
disclosure controls and procedures as conducted within 90 days of the filing
date of this report, that those disclosure controls and procedures provide
reasonable assurance that the material information required to be disclosed by
the Registrant on this report is recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission’s
rules and forms.
(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) that occurred during the period
covered by this report that have materially affected, or are reasonably likely
to materially affect, the Registrant’s internal control over financial
reporting.
Item 17. Disclosure of Securities Lending Activities for
Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation
Not applicable.
Item 19. Exhibits.
(a)(1)
Not required for this filing.
(a)(2) Not applicable.
(a)(4) Not applicable.
(a)(5) Not applicable.
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.
Palmer Square Funds Trust
By: /s/ Jeffrey D. Fox
Jeffrey D. Fox
Principal
Executive Officer
March 3, 2025
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: /s/ Jeffrey D. Fox
Jeffrey D. Fox
Principal
Executive Officer
March 3, 2025
By:
/s/ Courtney
Gengler
Courtney Gengler
Principal
Financial Officer
March 3, 2025