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 811-22110
AdvisorShares Trust
(Exact name of registrant as specified in charter)
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814
(Address of principal executive offices) (Zip code)
Dan Ahrens
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-877-843-3831
Date of fiscal year end: June 30
Date of reporting period: December 31, 2011
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSRS/0001144204-12-013452/logo_advisorshares-bw.jpg){kind=logo}
ADVISORSHARES TRUST
2 Bethesda Metro Center
Suite 1330
Bethesda, Maryland 20814
www.advisorshares.com
877.THE.ETF1
Semi-Annual Report
December 31, 2011
TABLE OF CONTENTS
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC
December 31, 2011
Thank you for being a shareholder in AdvisorShares ETFs. We are pleased to provide you with this semi-annual report for the period ending December 31, 2011. Thanks to your support, we have been able to greatly increase the actively managed investment strategies we can offer you. From December 31, 2010 through December 31, 2011, we have grown from 5 ETFs to 11 ETFs, and our total assets under management have increased from approximately $150,000,000 to approximately $420,000,000.
Our goal is to continue to seek out and offer you quality investment managers in a structure that provides transparency, intra-day liquidity, and better overall operating efficiency. In addition to reading this report, we encourage you to visit www.advisorshares.com to learn more about all the exciting actively managed ETFs currently offered by AdvisorShares and others that are launching soon. There you will find detailed information on each investment strategy along with manager commentary from each ETF’s portfolio management team.
We appreciate your support and use of our ETFs and we hope that you find them helpful to your investment goals.
Sincerely,
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSRS/0001144204-12-013452/sig_noah-hamman.jpg)
Noah Hamman
CEO, AdvisorShares Investments
An investment in the Funds is subject to risk, including the possible loss of principal amount invested. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund's webpage.
The views in this report were those of the Fund’s CEO as of December 31, 2011 and may not reflect his views on the date that this report is first published or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.
1
FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS
The tables below present information about differences between the daily market price on secondary markets for shares of a Fund and that Fund’s net asset value. Net asset value, or “NAV”, is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of each Fund generally is determined using the midpoint of the highest bid and the lowest offer on the stock exchange on which the shares of such Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV. The following table shows the frequency distributions of premiums and discounts for each of the Funds.
The information shown for each fund is for the period from inception date of such fund through December 31, 2011.
Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.
 | | | | | | |||||
| Ticker | Fund Name | Inception | Premium and Discount Range | Number of Days | % of Total Days | |||||
| DENT | DENT Tactical ETF | 09/16/09 | < -0.2% | 100 | 11.95% | |||||
| > -0.2% and < 0.0% | 448 | 53.52% | ||||||||
| > 0.0% and < 0.2% | 243 | 29.03% | ||||||||
| > 0.2% | 46 | 5.50% | ||||||||
| 837 | 100.00% | |||||||||
| AGLS | Accuvest Global Long Short ETF(1) | 07/09/10 | < -0.2% | 120 | 22.18% | |||||
| > -0.2% and < 0.0% | 178 | 32.90% | ||||||||
| > 0.0% and < 0.2% | 196 | 36.23% | ||||||||
| > 0.2% | 47 | 8.69% | ||||||||
| 541 | 100.00% | |||||||||
| GTAA | Cambria Global Tactical ETF | 10/26/10 | < -0.2% | 107 | 24.77% | |||||
| > -0.2% and < 0.0% | 95 | 21.99% | ||||||||
| > 0.0% and < 0.2% | 219 | 50.69% | ||||||||
| > 0.2% | 11 | 2.55% | ||||||||
| 432 | 100.00% | |||||||||
| AADR | WCM/BNY Mellon Focused Growth ADR ETF | 07/21/10 | < -0.2% | 84 | 15.88% | |||||
| > -0.2% and < 0.0% | 133 | 25.14% | ||||||||
| > 0.0% and < 0.2% | 233 | 44.05% | ||||||||
| > 0.2% | 79 | 14.93% | ||||||||
| 529 | 100.00% | |||||||||
| HYLD | Peritus High Yield ETF | 12/01/10 | < -0.2% | 55 | 13.89% | |||||
| > -0.2% and < 0.0% | 89 | 22.47% | ||||||||
| > 0.0% and < 0.2% | 117 | 29.55% | ||||||||
| > 0.2% | 135 | 34.09% | ||||||||
| 396 | 100.00% | |||||||||
2
| | | | | | |||||
| Ticker | Fund Name | Inception | Premium and Discount Range | Number of Days | % of Total Days | |||||
| HDGE | Active Bear ETF | 01/28/11 | < -0.2% | 4 | 1.18% | |||||
| > -0.2% and < 0.0% | 56 | 16.57% | ||||||||
| > 0.0% and < 0.2% | 237 | 70.12% | ||||||||
| > 0.2% | 41 | 12.13% | ||||||||
| 338 | 100.00% | |||||||||
| FWDD | Madrona Domestic ETF | 06/21/11 | < -0.2% | 3 | 1.55% | |||||
| > -0.2% and < 0.0% | 34 | 17.53% | ||||||||
| > 0.0% and < 0.2% | 151 | 77.83% | ||||||||
| > 0.2% | 6 | 3.09% | ||||||||
| 194 | 100.00% | |||||||||
| FWDI | Madrona International ETF | 06/21/11 | < -0.2% | 28 | 14.43% | |||||
| > -0.2% and < 0.0% | 22 | 11.34% | ||||||||
| > 0.0% and < 0.2% | 109 | 56.19% | ||||||||
| > 0.2% | 35 | 18.04% | ||||||||
| 194 | 100.00% | |||||||||
| FWDB | Madrona Global Bond Fund ETF | 6/21/11 | < -0.2% | 2 | 1.03% | |||||
| > -0.2% and < 0.0% | 39 | 20.10% | ||||||||
| > 0.0% and < 0.2% | 114 | 58.77% | ||||||||
| > 0.2% | 39 | 20.10% | ||||||||
| 194 | 100.00% | |||||||||
| MATH | Meidell Tactical Advantage ETF | 06/23/11 | < -0.2% | 14 | 7.29% | |||||
| > -0.2% and < 0.0% | 56 | 29.17% | ||||||||
| > 0.0% and < 0.2% | 100 | 52.08% | ||||||||
| > 0.2% | 22 | 11.46% | ||||||||
| 192 | 100.00% | |||||||||
| TTFS | TrimTabs Float Shrink ETF | 10/05/11 | < -0.2% | 13 | 14.77% | |||||
| > -0.2% and < 0.0% | 29 | 32.96% | ||||||||
| > 0.0% and < 0.2% | 36 | 40.91% | ||||||||
| > 0.2% | 10 | 11.36% | ||||||||
| 88 | 100.00% | |||||||||
| (1) | Formerly Mars Hill Global Relative Value ETF. |
3
ADVISORSHARES TRUST
Shareholder Expense Examples
As a shareholder of the Fund, you incur transaction cost and ongoing costs, including management fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The examples are based on an initial investment of $1,000 invested at the beginning of the period and held for the period ended December 31, 2011.
Actual Expenses
The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you incurred 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 under the heading entitled “Expenses Paid” to estimate the expenses attributable to your account during this period.
Hypothetical Example for Comparison Purposes
The second line under each Fund in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses for the period. You may use this information to compare the ongoing costs of investing in the Funds and other ETF 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. Therefore, the hypothetical example 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.
| | | | | ||||||||||||
| Fund Name | Beginning Account Value | Ending Account Value 12/31/2011 | Annualized Expense Ratio for the Period* | Expenses Paid | ||||||||||||
| Dent Tactical ETF | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 916.60 | 1.50 | % | $ | 7.23 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.60 | 1.50 | % | $ | 7.61 | ||||||||
| Accuvest Global Long Short ETF(1) | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 999.80 | 1.50 | % | $ | 7.54 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.60 | 1.50 | % | $ | 7.61 | ||||||||
| Cambria Global Tactical ETF | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 912.30 | 0.99 | % | $ | 4.76 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,020.16 | 0.99 | % | $ | 5.03 | ||||||||
| WCM/BNY Mellon Focused Growth ADR ETF | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 890.20 | 1.25 | % | $ | 5.94 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | 1.25 | % | $ | 6.34 | ||||||||
4
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
| | | | | ||||||||||||
| Fund Name | Beginning Account Value | Ending Account Value 12/31/2011 | Annualized Expense Ratio for the Period* | Expenses Paid | ||||||||||||
| Peritus High Yield ETF | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 962.80 | 1.35 | % | $ | 6.66 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.35 | 1.35 | % | $ | 6.85 | ||||||||
| Active Bear ETF | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,103.80 | 1.72%** | $ | 9.10 | |||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.49 | 1.72%** | $ | 8.72 | |||||||||
| Madrona Domestic ETF | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 902.80 | 1.25 | % | $ | 5.98 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | 1.25 | % | $ | 6.34 | ||||||||
| Madrona International ETF | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 779.30 | 1.25 | % | $ | 5.59 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | 1.25 | % | $ | 6.34 | ||||||||
| Madrona Global Bond ETF | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,022.70 | 0.95 | % | $ | 4.83 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,020.36 | 0.95 | % | $ | 4.82 | ||||||||
| Meidell Tactical Advantage ETF | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 980.00 | 1.35 | % | $ | 6.72 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.35 | 1.35 | % | $ | 6.85 | ||||||||
| TrimTabs Float Shrink ETF(2) | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,139.50 | 0.99 | % | $ | 2.55 | ||||||||
| Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,009.64 | 0.99 | % | $ | 2.39 | ||||||||
| * | Expense ratios reflect expense caps through the period ended December 31, 2011. |
| ** | The Active Bear ETF's expense ratio, excluding short interest expense, which is an outside the cap expense, is below its expense cap of 1.80% through the period ended December 31, 2011. |
| (1) | Formerly Mars Hill Global Relative Value ETF. |
| (2) | Fund commenced operations on October 5, 2011. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 88/366 (to reflect commencement of operations). |
5
ADVISORSHARES TRUST
DENT TACTICAL ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| EXCHANGE TRADED FUNDS — 66.5% | ||||||||
| Currency Fund — 16.7% | ||||||||
| PowerShares DB US Dollar Bullish Fund* | 97,500 | $ | 2,190,825 | |||||
| Debt Fund — 17.9% | ||||||||
| iShares Barclays US TIPS Bond Fund | 20,130 | 2,348,970 | ||||||
| Equity Fund — 31.9% | ||||||||
| iShares Dow Jones Select Dividend Index Fund | 19,500 | 1,048,125 | ||||||
| iShares Dow Jones US Pharmaceuticals Index Fund | 13,700 | 1,047,365 | ||||||
| iShares Dow Jones US Utilities Sector Index Fund | 12,000 | 1,059,840 | ||||||
| iShares S&P Smallcap 600 Value Index Fund | 15,000 | 1,046,400 | ||||||
| Total Equity Fund | 4,201,730 | |||||||
| Total Exchange Traded Funds (Cost $8,757,030) | 8,741,525 | |||||||
| MONEY MARKET FUND — 33.8% | ||||||||
| Goldman Sachs Money Market (Cost $4,441,764) | 4,441,764 | 4,441,764 | ||||||
| Total Investments — 100.3% (Cost $13,198,794) | 13,183,289 | |||||||
| Liabilities in Excess of Other Assets — (0.3%) | (32,632 | ) | ||||||
| Net Assets — 100.0% | $ | 13,150,657 | ||||||
| * | Non-income producing security |
| TIPS | Treasury Inflation Protected Securities |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Currency Fund | 16.7 | % | ||
| Debt Fund | 17.9 | |||
| Equity Fund | 31.9 | |||
| Money Market Fund | 33.8 | |||
| Total Investments | 100.3 | |||
| Liabilities in Excess of Other Assets | (0.3 | ) | ||
| Net Assets | 100.0 | % | ||
See accompanying Notes to Financial Statements.
6
ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF(1)
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| EXCHANGE TRADED FUNDS — 88.1% | ||||||||
| Equity Fund — 88.1% | ||||||||
| iShares FTSE China 25 Index Fund | 5,607 | $ | 195,516 | |||||
| iShares MSCI Brazil Index Fund | 2,787 | 159,946 | ||||||
| iShares MSCI Brazil Small Capital Index Fund | 12,500 | 280,125 | ||||||
| iShares MSCI Malaysia Index Fund | 14,706 | 197,060 | ||||||
| iShares MSCI Mexico Investable Market Index Fund | 5,210 | 280,090 | ||||||
| iShares MSCI South Africa Index Fund | 5,573 | 340,343 | ||||||
| iShares MSCI South Korea Index Fund | 8,448 | 441,492 | ||||||
| iShares MSCI Thailand Investable Market Index Fund | 5,295 | 318,282 | ||||||
| iShares S&P 500 Index Fund | 1,183 | 149,011 | ||||||
| Market Vectors Russia ETF | 13,230 | 352,580 | ||||||
| Total Equity Fund | 2,714,445 | |||||||
| Total Exchange Traded Funds (Cost $2,997,523) | 2,714,445 | |||||||
| MONEY MARKET FUND — 3.6% | ||||||||
| Dreyfus Cash Management (Cost $109,798) | 109,798 | 109,798 | ||||||
| Total Investments Before Securities Sold, Not Yet Purchased (Cost $3,107,321) | 2,824,243 | |||||||
| Securities Sold, Not Yet Purchased — (72.4)% | ||||||||
| Equity Fund — (72.4)% | ||||||||
| iShares MSCI Australia Index Fund | 12,185 | (261,246 | ) | |||||
| iShares MSCI Austria Investable Market Index Fund | 38,599 | (548,878 | ) | |||||
| iShares MSCI Belgium Investable Market Index Fund | 16,562 | (175,392 | ) | |||||
| iShares MSCI France Index Fund | 12,462 | (244,006 | ) | |||||
| iShares MSCI Japan Index Fund | 42,785 | (389,771 | ) | |||||
| iShares MSCI Italy Index Fund | 5,482 | (65,729 | ) | |||||
| iShares MSCI Netherlands Investable Market Index Fund | 11,410 | (196,594 | ) | |||||
| iShares MSCI Sweden Index Fund | 6,340 | (159,388 | ) | |||||
| iShares MSCI Switzerland Index Fund | 8,350 | (188,877 | ) | |||||
| Total Equity Fund | (2,229,881 | ) | ||||||
| Total Securities Sold, Not Yet Purchased (Proceeds Received $(2,342,639)) | (2,229,881 | ) | ||||||
See accompanying Notes to Financial Statements.
7
ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Total Investments — 19.3% (Cost $764,682) | $ | 594,362 | ||||||
| Other Assets in Excess of Liabilities — 80.7% | 2,487,832 | |||||||
| Net Assets — 100.0% | $ | 3,082,194 | ||||||
| ETF | Exchange Traded Fund |
| * | Non-income producing security |
| (1) | Formerly Mars Hill Global Relative Value ETF. |
| | | | | | | ||||||||||||||||||
| Futures Contracts | ||||||||||||||||||||||||
| Type | Broker | Expiration Date | Number of Contracts | Value at Trade Date | Value at December 31, 2011 | Unrealized Appreciation | ||||||||||||||||||
| E-Mini S&P 500 Futures | Morgan Stanley | March 2012 | 3 | $ | 180,945 | $ | 187,890 | $ | 6,945 | |||||||||||||||
| Mini MSCI EAFE Index Futures | Morgan Stanley | March 2012 | 2 | 136,706 | 140,940 | 4,234 | ||||||||||||||||||
| Mini MSCI Emerging Markets Index Futures | Morgan Stanley | March 2012 | 2 | 89,505 | 92,150 | 2,645 | ||||||||||||||||||
| $ | 13,824 | |||||||||||||||||||||||
| | | | | | | ||||||||||||||||||
| Short Swap Contracts | ||||||||||||||||||||||||
| Reference Entity | Counterparty | Number of Contracts | Termination Date | Notional Amounts | Market Value | Unrealized Appreciation/(Depreciation) | ||||||||||||||||||
| iShares MSCI Italy Index Fund | Morgan Stanley | 27,743 | 07/12/2012 | $ | 450,650 | $ | 392,912 | $ | 57,738 | |||||||||||||||
| iShares MSCI Spain Index Fund | Morgan Stanley | 6,159 | 07/12/2012 | 212,273 | 362,391 | (150,118 | ) | |||||||||||||||||
| $ | (92,380 | ) | ||||||||||||||||||||||
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Equity Fund | 15.7 | % | ||
| Money Market Fund | 3.6 | |||
| Total Investments | 19.3 | |||
| Other Assets in Excess of Liabilities | 80.7 | |||
| Net Assets | 100.0 | % | ||
See accompanying Notes to Financial Statements.
8
ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| EXCHANGE TRADED FUNDS — 92.1% | ||||||||
| Commodity Fund — 0.1% | ||||||||
| PowerShares DB Energy Fund* | 1,530 | $ | 42,259 | |||||
| Currency Fund — 7.4% | ||||||||
| CurrencyShares Japanese Yen Trust* | 6,704 | 857,643 | ||||||
| PowerShares DB US Dollar Bullish Fund* | 361,538 | 8,123,759 | ||||||
| WisdomTree Dreyfus Chinese Yuan Fund | 56,939 | 1,434,293 | ||||||
| Total Currency Fund | 10,415,695 | |||||||
| Debt Fund — 59.9% | ||||||||
| iShares Barclays 1 – 3 Year Treasury Bond Fund | 78,416 | 6,626,152 | ||||||
| iShares Barclays 3 – 7 Year Treasury Bond Fund | 54,561 | 6,658,624 | ||||||
| iShares Barclays 7 – 10 Year Treasury Bond Fund | 70,435 | 7,435,823 | ||||||
| iShares Barclays 20+ Year Treasury Bond Fund | 24,990 | 3,030,038 | ||||||
| iShares Barclays Aggregate Bond Fund | 67,265 | 7,415,966 | ||||||
| iShares Barclays MBS Bond Fund | 66,906 | 7,230,531 | ||||||
| iShares Barclays US TIPS Bond Fund | 63,491 | 7,408,765 | ||||||
| iShares iBoxx $ High Yield Corporate Bond Fund | 32,234 | 2,882,687 | ||||||
| iShares iBoxx $ Investment Grade Corporate Bond Fund | 25,303 | 2,878,469 | ||||||
| PIMCO Enhanced Short Maturity Strategy Fund | 66,111 | 6,621,678 | ||||||
| PowerShares Emerging Markets Sovereign Debt Portfolio | 103,996 | 2,845,331 | ||||||
| PowerShares Fundamental High Yield Corporate Bond Portfolio | 155,484 | 2,871,789 | ||||||
| SPDR Barclays Capital International Treasury Bond ETF | 121,244 | 7,132,785 | ||||||
| Vanguard Short-Term Bond ETF | 81,624 | 6,598,484 | ||||||
| Vanguard Total Bond Market ETF | 79,593 | 6,649,199 | ||||||
| Total Debt Fund | 84,286,321 | |||||||
| Equity Fund — 24.7% | ||||||||
| Consumer Discretionary Select Sector SPDR Fund | 35,844 | 1,398,633 | ||||||
| Consumer Staples Select Sector SPDR Fund | 93,022 | 3,022,285 | ||||||
| Energy Select Sector SPDR Fund | 3,830 | 264,768 | ||||||
| Health Care Select Sector SPDR Fund | 83,576 | 2,899,251 | ||||||
| iShares FTSE China 25 Index Fund | 679 | 23,677 | ||||||
| iShares FTSE Nareit Mortgage Plus Capped Index Fund | 86,749 | 1,098,242 | ||||||
| iShares FTSE Nareit Residential Plus Capped Index Fund | 67,554 | 2,987,238 | ||||||
See accompanying Notes to Financial Statements.
9
ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Equity Fund — 24.7% (continued) | ||||||||
| iShares MSCI All Peru Capped Index Fund | 547 | $ | 20,988 | |||||
| iShares MSCI Mexico Investable Market Index Fund | 197 | 10,591 | ||||||
| iShares MSCI Thailand Index Fund | 2,255 | 135,548 | ||||||
| iShares Russell Microcap Index Fund | 25,104 | 1,120,894 | ||||||
| Market Vectors Indonesia Index ETF | 9,665 | 275,163 | ||||||
| PowerShares FTSE RAFI US 1000 Portfolio | 20,623 | 1,125,603 | ||||||
| PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | 18,604 | 1,116,798 | ||||||
| PowerShares QQQ Trust, Series 1 | 4,441 | 247,941 | ||||||
| Technology Select Sector SPDR Fund | 54,195 | 1,379,263 | ||||||
| Utilities Select Sector SPDR Fund | 84,983 | 3,057,688 | ||||||
| Vanguard Mid-Cap ETF | 15,293 | 1,100,178 | ||||||
| Vanguard REIT ETF | 204,161 | 11,841,338 | ||||||
| Vanguard Small-Cap ETF | 7,925 | 552,135 | ||||||
| Vanguard Total Stock Market ETF | 17,414 | 1,119,720 | ||||||
| Total Equity Funds | 34,797,942 | |||||||
| Total Exchange Traded Funds (Cost $128,148,426) | 129,542,217 | |||||||
| MONEY MARKET FUND — 9.5% | ||||||||
| Invesco Government & Agency (Cost $13,437,470) | 13,437,470 | 13,437,470 | ||||||
| Total Investments — 101.6% (Cost $141,585,896) | 142,979,687 | |||||||
| Liabilities in Excess of Other Assets — (1.6%) | (2,259,592 | ) | ||||||
| Net Assets — 100.0% | $ | 140,720,095 | ||||||
| * | Non-income producing security |
| ETF | Exchange Traded Fund |
| MBS | Mortgage Backed Securities |
| REIT | Real Estate Investment Trust |
| TIPS | Treasury Inflation Protected Securities |
See accompanying Notes to Financial Statements.
10
ADVIORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
SUMMARY OF INVESTMENTS
| | |||
| Commodity Fund | 0.1 | % | ||
| Currency Fund | 7.4 | |||
| Debt Fund | 59.9 | |||
| Equity Fund | 24.7 | |||
| Money Market Fund | 9.5 | |||
| Total Investments | 101.6 | |||
| Liabilities in Excess of Other Assets | (1.6 | ) | ||
| Net Assets | 100.0 | % | ||
See accompanying Notes to Financial Statements.
11
ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| COMMON STOCKS — 94.7% | ||||||||
| Beverages — 7.4% | ||||||||
| Cia de Bebidas das Americas (Brazil)(a) | 4,984 | $ | 179,872 | |||||
| Coca-Cola Enterprises, Inc. | 4,602 | 118,640 | ||||||
| Coca-Cola Femsa SAB de CV (Mexico)(a) | 1,724 | 164,142 | ||||||
| Total Beverages | 462,654 | |||||||
| Biotechnology — 4.6% | ||||||||
| Novozymes A/S (Denmark)(a) | 9,247 | 285,732 | ||||||
| Chemicals — 3.8% | ||||||||
| Potash Corp. of Saskatchewan, Inc. (Canada) | 5,819 | 240,208 | ||||||
| Commercial Services — 3.7% | ||||||||
| Sgs SA (Switzerland)(a) | 14,056 | 232,908 | ||||||
| Computers — 3.0% | ||||||||
| Infosys Ltd. (India)(a) | 3,709 | 190,568 | ||||||
| Cosmetics / Personal Care — 4.5% | ||||||||
| L'Oreal SA (France)(a) | 13,414 | 279,414 | ||||||
| Distribution / Wholesale — 5.6% | ||||||||
| LI & Fung Ltd. (Hong Kong)(a) | 96,283 | 353,359 | ||||||
| Diversified Financial Services — 2.3% | ||||||||
| Lazard Ltd., Class A (Bermuda) | 5,397 | 140,916 | ||||||
| Engineering & Construction — 3.4% | ||||||||
| ABB Ltd.* (Switzerland)(a) | 11,348 | 213,683 | ||||||
| Food — 4.0% | ||||||||
| Nestle SA (Switzerland)(a) | 4,389 | 253,289 | ||||||
| Holding Companies – Diversified — 2.2% | ||||||||
| LVMH Moet Hennessy Louis Vuitton SA (France)(a) | 4,843 | 136,088 | ||||||
| Insurance — 5.0% | ||||||||
| ACE Ltd. (Switzerland) | 4,496 | 315,259 | ||||||
| Internet — 3.8% | ||||||||
| Baidu, Inc.* (China)(a) | 2,017 | 234,920 | ||||||
| Machinery – Diversified — 2.7% | ||||||||
| Fanuc Corp. (Japan)(a) | 6,619 | 167,461 | ||||||
See accompanying Notes to Financial Statements.
12
ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Oil & Gas Services — 4.6% | ||||||||
| Core Laboratories N.V. (Netherlands) | 2,502 | $ | 285,103 | |||||
| Pharmaceuticals — 11.4% | ||||||||
| Novartis AG (Switzerland)(a) | 3,896 | 222,734 | ||||||
| NOVO Nordisk A/S (Denmark)(a) | 2,357 | 271,668 | ||||||
| Teva Pharmaceutical Industries Ltd. (Israel)(a) | 5,448 | 219,881 | ||||||
| Total Pharmaceuticals | 714,283 | |||||||
| Retail — 11.7% | ||||||||
| Arcos Dorados Holdings, Inc., Class A (Argentina) | 13,089 | 268,717 | ||||||
| Cie Financiere Richemont SA (Switzerland)(a) | 31,833 | 159,802 | ||||||
| Wal-Mart de Mexico SAB de CV (Mexico)(a) | 11,116 | 304,467 | ||||||
| Total Retail | 732,986 | |||||||
| Semiconductors — 7.0% | ||||||||
| Arm Holdings PLC (United Kingdom)(a) | 5,245 | 145,129 | ||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a) | 22,818 | 294,581 | ||||||
| Total Semiconductors | 439,710 | |||||||
| Transportation — 4.0% | ||||||||
| Canadian National Railway Co. (Canada) | 3,160 | 248,250 | ||||||
| Total Common Stocks (Cost $6,253,921) | 5,926,791 | |||||||
| MONEY MARKET FUND — 5.2% | ||||||||
| Invesco Government & Agency (Cost $325,577) | 325,577 | 325,577 | ||||||
| Total Investments — 99.9% (Cost $6,579,498) | 6,252,368 | |||||||
| Other Assets in Excess of Liabilities — 0.1% | 4,606 | |||||||
| Net Assets — 100.0% | $ | 6,256,974 | ||||||
| * | Non-income producing security |
| (a) | American Depositary Receipt |
See accompanying Notes to Financial Statements.
13
ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Beverages | 7.4 | % | ||
| Biotechnology | 4.6 | |||
| Chemicals | 3.8 | |||
| Commercial Services | 3.7 | |||
| Computers | 3.0 | |||
| Cosmetics/Personal Care | 4.5 | |||
| Distribution/Wholesale | 5.6 | |||
| Diversified Financial Services | 2.3 | |||
| Engineering & Construction | 3.4 | |||
| Food | 4.0 | |||
| Holding Companies – Diversified | 2.2 | |||
| Insurance | 5.0 | |||
| Internet | 3.8 | |||
| Machinery – Diversified | 2.7 | |||
| Oil & Gas Services | 4.6 | |||
| Pharmaceuticals | 11.4 | |||
| Retail | 11.7 | |||
| Semiconductors | 7.0 | |||
| Transportation | 4.0 | |||
| Money Market Fund | 5.2 | |||
| Total Investments | 99.9 | |||
| Other Assets in Excess of Liabilities | 0.1 | |||
| Net Assets | 100.0 | % | ||
See accompanying Notes to Financial Statements.
14
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| CORPORATE BONDS — 90.3% | ||||||||
| Advertising — 2.5% | ||||||||
| Affinion Group, Inc., 7.88%, 12/15/18‡ | 1,805,000 | $ | 1,534,250 | |||||
| Aerospace/Defense — 2.1% | ||||||||
| Ducommun, Inc., 9.75%, 07/15/18‡ | 1,240,000 | 1,264,800 | ||||||
| Apparel — 3.0% | ||||||||
| Unifi, Inc., 11.50%, 05/15/14 | 1,830,000 | 1,852,875 | ||||||
| Auto Parts & Equipment — 4.0% | ||||||||
| Exide Technologies, 8.63%, 02/01/18 | 1,617,000 | 1,253,175 | ||||||
| Stanadyne Corp., Series 1, 10.00%, 08/15/14 | 1,402,000 | 1,191,700 | ||||||
| Total Auto Parts & Equipment | 2,444,875 | |||||||
| Beverages — 3.0% | ||||||||
| CEDC Finance Corp. International, Inc., 9.13%, 12/01/16‡ | 2,550,000 | 1,816,875 | ||||||
| Chemicals — 1.8% | ||||||||
| Phibro Animal Health Corp., 9.25%, 07/01/18‡ | 1,305,000 | 1,138,612 | ||||||
| Commercial Services — 7.8% | ||||||||
| Carriage Services, Inc., 7.88%, 01/15/15 | 1,690,000 | 1,711,125 | ||||||
| DynCorp International, Inc., 10.38%, 07/01/17‡ | 1,440,000 | 1,260,000 | ||||||
| Valassis Communications, Inc., 6.63%, 02/01/21 | 1,935,000 | 1,809,225 | ||||||
| Total Commercial Services | 4,780,350 | |||||||
| Computers — 4.8% | ||||||||
| Stream Global Services, Inc., 11.25%, 10/01/14 | 1,313,000 | 1,339,260 | ||||||
| Unisys Corp., 12.50%, 01/15/16 | 1,515,000 | 1,624,838 | ||||||
| Total Computers | 2,964,098 | |||||||
| Distribution/Wholesale — 3.8% | ||||||||
| SGS International, Inc., 12.00%, 12/15/13 | 2,290,000 | 2,312,900 | ||||||
| Electronics — 5.2% | ||||||||
| Sanmina-SCI Corp., 7.00%, 05/15/19‡ | 2,000,000 | 1,960,000 | ||||||
| Stoneridge, Inc., 9.50%, 10/15/17‡ | 1,215,000 | 1,251,450 | ||||||
| Total Electronics | 3,211,450 | |||||||
| Entertainment — 2.0% | ||||||||
| Lions Gate Entertainment, Inc., 10.25%, 11/01/16‡ | 1,200,000 | 1,212,000 | ||||||
| Food — 7.0% | ||||||||
| Bumble Bee Acquisition Corp., 9.00%, 12/15/17‡ | 1,225,000 | 1,249,500 | ||||||
| Chiquita Brands International, Inc., 7.50%, 11/01/14 | 816,000 | 826,200 | ||||||
| Dean Foods Co., 9.75%, 12/15/18 | 565,000 | 604,550 | ||||||
| Harmony Foods Corp., 10.00%, 05/01/16‡ | 1,605,000 | 1,621,050 | ||||||
| Total Food | 4,301,300 | |||||||
See accompanying Notes to Financial Statements.
15
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Forest Products & Paper — 2.1% | ||||||||
| Exopack Holding Corp., 10.00%, 06/01/18‡ | 1,300,000 | $ | 1,306,500 | |||||
| Healthcare – Products — 4.8% | ||||||||
| Merge Healthcare, Inc., 11.75%, 05/01/15 | 1,150,000 | 1,224,750 | ||||||
| Rotech Healthcare, Inc., 10.75%, 10/15/15 | 500,000 | 495,000 | ||||||
| Rotech Healthcare, Inc., 10.50%, 03/15/18‡ | 1,625,000 | 1,259,375 | ||||||
| Total Healthcare – Products | 2,979,125 | |||||||
| Healthcare – Services — 8.5% | ||||||||
| Alliance Healthcare Services, Inc., 8.00%, 12/01/16 | 1,460,000 | 1,025,650 | ||||||
| Apria Healthcare Group, Inc., 11.25%, 11/01/14 | 800,000 | 830,000 | ||||||
| Radiation Therapy Services, Inc., 9.88%, 04/15/17 | 1,090,000 | 820,225 | ||||||
| Radnet Management, Inc., 10.38%, 04/01/18 | 1,455,000 | 1,287,675 | ||||||
| Select Medical Corp., 7.63%, 02/01/15 | 1,300,000 | 1,228,500 | ||||||
| Total Healthcare – Services | 5,192,050 | |||||||
| Leisure Time — 2.5% | ||||||||
| ICON Health & Fitness, 11.88%, 10/15/16‡ | 1,900,000 | 1,553,250 | ||||||
| Miscellaneous Manufacturing — 6.5% | ||||||||
| Harland Clarke Holdings Corp., 9.50%, 05/15/15 | 2,735,000 | 2,010,225 | ||||||
| J.B. Poindexter & Co., 8.75%, 03/15/14 | 1,990,000 | 1,990,000 | ||||||
| Total Miscellaneous Manufacturing | 4,000,225 | |||||||
| Oil & Gas — 2.1% | ||||||||
| United Refining Co., 10.50%, 02/28/18 | 1,375,000 | 1,292,500 | ||||||
| Packaging & Containers — 3.0% | ||||||||
| AEP Industries, Inc., 8.25%, 04/15/19 | 1,800,000 | 1,836,000 | ||||||
| Pharmaceuticals — 2.2% | ||||||||
| Bioscrip, Inc., 10.25%, 10/01/15 | 1,365,000 | 1,354,763 | ||||||
| Retail — 5.1% | ||||||||
| Burlington Coat Factory Warehouse Corp., 10.00%, 02/15/19 | 1,235,000 | 1,213,388 | ||||||
| CKE Restaurants, Inc., 11.38%, 07/15/18 | 1,180,000 | 1,292,100 | ||||||
| Collective Brands, Inc., 8.25%, 08/01/13 | 606,000 | 608,272 | ||||||
| Total Retail | 3,113,760 | |||||||
| Telecommunications — 4.4% | ||||||||
| Level 3 Financing, Inc., 9.25%, 11/01/14 | 1,622,000 | 1,666,605 | ||||||
| Syniverse Holdings, Inc., 9.13%, 01/15/19 | 960,000 | 1,017,600 | ||||||
| Total Telecommunications | 2,684,205 | |||||||
See accompanying Notes to Financial Statements.
16
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Transportation — 2.1% | ||||||||
| PHI, Inc., 8.63%, 10/15/18 | 1,265,000 | $ | 1,274,487 | |||||
| Total Corporate Bonds (Cost $58,845,333) | 55,421,250 | |||||||
| FOREIGN BONDS — 6.9% | ||||||||
| Airlines — 3.1% | ||||||||
| Air Canada, 12.00%, 02/01/16 (Canada)‡ | 2,185,000 | 1,895,487 | ||||||
| Pharmaceuticals — 1.8% | ||||||||
| Elan Finance PLC, 8.75%, 10/15/16 (Ireland) | 1,010,000 | 1,083,225 | ||||||
| Transportation — 2.0% | ||||||||
| Navios Maritime Holdings, Inc., 8.13%, 02/15/19 (Marshal Islands)‡ | 1,670,000 | 1,252,500 | ||||||
| Total Foreign Bonds (Cost $4,870,570) | 4,231,212 | |||||||
| MONEY MARKET FUND — 0.3% | ||||||||
| BlackRock Liquidity TempFund (Cost $216,671) | 216,671 | 216,671 | ||||||
| Total Investments — 97.5% (Cost $63,932,574) | 59,869,133 | |||||||
| Other Assets in Excess of Liabilities — 2.5% | 1,509,391 | |||||||
| Net Assets — 100.0% | $ | 61,378,524 | ||||||
| ‡ | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid. |
See accompanying Notes to Financial Statements.
17
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Advertising | 2.5 | % | ||
| Aerospace/Defense | 2.1 | |||
| Airlines | 3.1 | |||
| Apparel | 3.0 | |||
| Auto Parts & Equipment | 4.0 | |||
| Beverages | 3.0 | |||
| Chemicals | 1.8 | |||
| Commercial Services | 7.8 | |||
| Computers | 4.8 | |||
| Distribution/Wholesale | 3.8 | |||
| Electronics | 5.2 | |||
| Entertainment | 2.0 | |||
| Food | 7.0 | |||
| Forest Products & Paper | 2.1 | |||
| Healthcare – Products | 4.8 | |||
| Healthcare – Services | 8.5 | |||
| Leisure Time | 2.5 | |||
| Miscellaneous Manufacturing | 6.5 | |||
| Oil & Gas | 2.1 | |||
| Packaging & Containers | 3.0 | |||
| Pharmaceuticals | 4.0 | |||
| Retail | 5.1 | |||
| Telecommunications | 4.4 | |||
| Transportation | 4.1 | |||
| Money Market Funds | 0.3 | |||
| Total Investments | 97.5 | |||
| Other Assets in Excess of Liabilities | 2.5 | |||
| Net Assets | 100.0 | % | ||
See accompanying Notes to Financial Statements.
18
ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| MONEY MARKET FUND — 62.4% | ||||||||
| Fidelity Government (Cost $91,536,497) | 91,536,497 | $ | 91,536,497 | |||||
| Total Investments Before Securities Sold, Not Yet Purchased (Cost $91,536,497) | 91,536,497 | |||||||
| Securities Sold, Not Yet Purchased — (96.5)% | ||||||||
| COMMON STOCKS — (96.5)% | ||||||||
| Aerospace/Defense — (3.5)% | ||||||||
| Rockwell Collins, Inc. | 93,839 | (5,195,865 | ) | |||||
| Apparel — (9.2)% | ||||||||
| Deckers Outdoor Corp.* | 54,345 | (4,106,852 | ) | |||||
| Hanesbrands, Inc.* | 285,800 | (6,247,588 | ) | |||||
| Iconix Brand Group, Inc.* | 196,500 | (3,200,985 | ) | |||||
| Total Apparel | (13,555,425 | ) | ||||||
| Banks — (13.0)% | ||||||||
| Capital One Financial Corp. | 71,666 | (3,030,755 | ) | |||||
| CIT Group, Inc.* | 142,200 | (4,958,514 | ) | |||||
| Citigroup, Inc. | 269,900 | (7,101,069 | ) | |||||
| TCF Financial Corp. | 384,700 | (3,970,104 | ) | |||||
| Total Banks | (19,060,442 | ) | ||||||
| Beverages — (2.7)% | ||||||||
| Green Mountain Coffee Roasters, Inc.* | 88,420 | (3,965,637 | ) | |||||
| Biotechnology — (2.3)% | ||||||||
| Life Technologies Corp.* | 87,700 | (3,412,407 | ) | |||||
| Building Materials — (3.1)% | ||||||||
| Martin Marietta Materials, Inc. | 60,300 | (4,547,223 | ) | |||||
| Computers — (7.6)% | ||||||||
| NetApp, Inc.* | 119,600 | (4,337,892 | ) | |||||
| Teradata Corp.* | 141,400 | (6,859,314 | ) | |||||
| Total Computers | (11,197,206 | ) | ||||||
| Distribution/Wholesale — (4.7)% | ||||||||
| Fossil, Inc.* | 86,030 | (6,827,341 | ) | |||||
See accompanying Notes to Financial Statements.
19
ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Electrical Components & Equipment — (2.4)% | ||||||||
| Energizer Holdings, Inc.* | 45,200 | $ | (3,502,096 | ) | ||||
| Energy – Alternate Sources — (1.0)% | ||||||||
| First Solar, Inc.* | 41,600 | (1,404,416 | ) | |||||
| Environmental Control — (2.5)% | ||||||||
| Stericycle, Inc.* | 47,100 | (3,670,032 | ) | |||||
| Hand/Machine Tools — (2.7)% | ||||||||
| Snap-On, Inc. | 79,000 | (3,998,980 | ) | |||||
| Healthcare – Products — (3.2)% | ||||||||
| Steris Corp. | 154,900 | (4,619,118 | ) | |||||
| Healthcare – Services — (2.4)% | ||||||||
| Icon PLC*(a) | 208,700 | (3,570,857 | ) | |||||
| Home Builders — (1.4)% | ||||||||
| PulteGroup, Inc.* | 330,000 | (2,082,300 | ) | |||||
| Internet — (5.1)% | ||||||||
| Constant Contact, Inc.* | 163,600 | (3,797,156 | ) | |||||
| Opentable, Inc.* | 94,800 | (3,709,524 | ) | |||||
| Total Internet | (7,506,680 | ) | ||||||
| Media — (5.1)% | ||||||||
| Scripps Networks Interactive, Inc., Class A | 67,800 | (2,876,076 | ) | |||||
| Time Warner Cable, Inc. | 72,693 | (4,621,094 | ) | |||||
| Total Media | (7,497,170 | ) | ||||||
| Mining — (2.4)% | ||||||||
| Vulcan Materials Co. | 88,100 | (3,466,735 | ) | |||||
| Retail — (4.5)% | ||||||||
| CarMax, Inc.* | 126,800 | (3,864,864 | ) | |||||
| Vitamin Shoppe, Inc.* | 68,100 | (2,715,828 | ) | |||||
| Total Retail | (6,580,692 | ) | ||||||
| Software — (8.1)% | ||||||||
| Cerner Corp.* | 56,600 | (3,466,750 | ) | |||||
| Concur Technologies, Inc.* | 40,827 | (2,073,603 | ) | |||||
| Medidata Solutions, Inc.* | 131,993 | (2,870,848 | ) | |||||
| Salesforce.com, Inc.* | 34,200 | (3,469,932 | ) | |||||
| Total Software | (11,881,133 | ) | ||||||
See accompanying Notes to Financial Statements.
20
ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Telecommunications — (9.6)% | ||||||||
| Amdocs Ltd.* | 158,000 | $ | (4,507,740 | ) | ||||
| Aruba Networks, Inc.* | 308,700 | (5,717,124 | ) | |||||
| Juniper Networks, Inc.* | 189,000 | (3,857,490 | ) | |||||
| Total Telecommunications | (14,082,354 | ) | ||||||
| Total Securities Sold, Not Yet Purchased (Cost $(141,491,185)) | (141,624,109 | ) | ||||||
| Total Investments — (34.1)% (Cost $(49,954,688)) | (50,087,612 | ) | ||||||
| Other Assets in Excess of Liabilities — 134.1% | 196,875,269 | |||||||
| Net Assets — 100.0% | $ | 146,787,657 | ||||||
| * | Non-income producing security |
| (a) | American Depositary Receipt |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Aerospace/Defense | (3.5 | )% | ||
| Apparel | (9.2 | ) | ||
| Banks | (13.0 | ) | ||
| Beverages | (2.7 | ) | ||
| Biotechnology | (2.3 | ) | ||
| Building Materials | (3.1 | ) | ||
| Computers | (7.6 | ) | ||
| Distribution/Wholesale | (4.7 | ) | ||
| Electrical Components & Equipment | (2.4 | ) | ||
| Energy – Alternate Sources | (1.0 | ) | ||
| Environmental Control | (2.5 | ) | ||
| Hand/Machine Tools | (2.7 | ) | ||
| Healthcare – Products | (3.2 | ) | ||
| Healthcare – Services | (2.4 | ) | ||
| Home Builders | (1.4 | ) | ||
| Internet | (5.1 | ) | ||
| Media | (5.1 | ) | ||
| Mining | (2.4 | ) | ||
| Retail | (4.5 | ) | ||
| Software | (8.1 | ) | ||
| Telecommunications | (9.6 | ) | ||
| Money Market Fund | 62.4 | |||
| Total Investments | (34.1 | ) | ||
| Other Assets in Excess of Liabilities | 134.1 | |||
| Net Assets | 100.0 | % | ||
See accompanying Notes to Financial Statements.
21
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| COMMON STOCKS — 97.5% | ||||||||
| Advertising — 0.2% | ||||||||
| Omnicom Group, Inc. | 579 | $ | 25,812 | |||||
| Aerospace/Defense — 2.0% | ||||||||
| Boeing Co. (The) | 422 | 30,954 | ||||||
| Exelis, Inc. | 870 | 7,874 | ||||||
| General Dynamics Corp. | 606 | 40,245 | ||||||
| Goodrich Corp. | 149 | 18,431 | ||||||
| L-3 Communications Holdings, Inc. | 478 | 31,873 | ||||||
| Lockheed Martin Corp. | 421 | 34,059 | ||||||
| Northrop Grumman Corp. | 609 | 35,614 | ||||||
| Raytheon Co. | 756 | 36,575 | ||||||
| Rockwell Collins, Inc. | 427 | 23,643 | ||||||
| United Technologies Corp. | 394 | 28,797 | ||||||
| Total Aerospace/Defense | 288,065 | |||||||
| Agriculture — 0.9% | ||||||||
| Altria Group, Inc. | 575 | 17,049 | ||||||
| Archer-Daniels-Midland Co. | 1,124 | 32,146 | ||||||
| Lorillard, Inc. | 205 | 23,370 | ||||||
| Philip Morris International, Inc. | 362 | 28,410 | ||||||
| Reynolds American, Inc. | 491 | 20,337 | ||||||
| Total Agriculture | 121,312 | |||||||
| Airlines — 0.3% | ||||||||
| Delta Air Lines, Inc.* | 1,975 | 15,978 | ||||||
| Southwest Airlines Co. | 1,381 | 11,821 | ||||||
| United Continental Holdings, Inc.* | 964 | 18,191 | ||||||
| Total Airlines | 45,990 | |||||||
| Apparel — 0.7% | ||||||||
| Coach, Inc. | 505 | 30,825 | ||||||
| Nike, Inc., Class B | 247 | 23,804 | ||||||
| Ralph Lauren Corp. | 171 | 23,612 | ||||||
| VF Corp. | 162 | 20,572 | ||||||
| Total Apparel | 98,813 | |||||||
See accompanying Notes to Financial Statements.
22
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Auto Manufacturers — 1.0% | ||||||||
| Ford Motor Co.* | 4,354 | $ | 46,849 | |||||
| General Motors Co.* | 2,479 | 50,249 | ||||||
| PACCAR, Inc. | 1,312 | 49,161 | ||||||
| Total Auto Manufacturers | 146,259 | |||||||
| Auto Parts & Equipment — 1.0% | ||||||||
| BorgWarner, Inc.* | 752 | 47,932 | ||||||
| Johnson Controls, Inc. | 1,879 | 58,738 | ||||||
| Lear Corp. | 1,004 | 39,959 | ||||||
| Total Auto Parts & Equipment | 146,629 | |||||||
| Banks — 4.6% | ||||||||
| Bank of America Corp. | 7,358 | 40,911 | ||||||
| Bank of New York Mellon Corp. (The) | 2,190 | 43,603 | ||||||
| BB&T Corp. | 1,348 | 33,929 | ||||||
| Capital One Financial Corp. | 1,076 | 45,504 | ||||||
| CIT Group, Inc.* | 537 | 18,725 | ||||||
| Citigroup, Inc. | 1,801 | 47,384 | ||||||
| Comerica, Inc. | 586 | 15,119 | ||||||
| Fifth Third Bancorp | 1,399 | 17,795 | ||||||
| Goldman Sachs Group, Inc. (The) | 435 | 39,337 | ||||||
| JPMorgan Chase & Co. | 1,300 | 43,225 | ||||||
| KeyCorp | 4,861 | 37,381 | ||||||
| M&T Bank Corp. | 301 | 22,979 | ||||||
| Morgan Stanley | 3,210 | 48,567 | ||||||
| Northern Trust Corp. | 873 | 34,623 | ||||||
| PNC Financial Services Group, Inc. | 398 | 22,953 | ||||||
| State Street Corp. | 1,280 | 51,597 | ||||||
| SunTrust Banks, Inc. | 883 | 15,629 | ||||||
| US Bancorp | 963 | 26,049 | ||||||
| Wells Fargo & Co. | 1,602 | 44,151 | ||||||
| Total Banks | 649,461 | |||||||
| Beverages — 1.1% | ||||||||
| Beam, Inc. | 328 | 16,803 | ||||||
| Brown-Forman Corp., Class B | 150 | 12,077 | ||||||
See accompanying Notes to Financial Statements.
23
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Beverages — 1.1% (continued) | ||||||||
| Coca-Cola Co. (The) | 233 | $ | 16,303 | |||||
| Coca-Cola Enterprises, Inc. | 1,268 | 32,689 | ||||||
| Dr Pepper Snapple Group, Inc. | 499 | 19,701 | ||||||
| Green Mountain Coffee Roasters, Inc.* | 344 | 15,428 | ||||||
| Molson Coors Brewing Co., Class B | 275 | 11,973 | ||||||
| Monster Beverage Corp.* | 190 | 17,507 | ||||||
| PepsiCo, Inc. | 225 | 14,929 | ||||||
| Total Beverages | 157,410 | |||||||
| Biotechnology — 1.7% | ||||||||
| Alexion Pharmaceuticals, Inc.* | 309 | 22,094 | ||||||
| Amgen, Inc. | 376 | 24,143 | ||||||
| Biogen Idec, Inc.* | 190 | 20,909 | ||||||
| Celgene Corp.* | 665 | 44,954 | ||||||
| Gilead Sciences, Inc.* | 1,101 | 45,064 | ||||||
| Illumina, Inc.* | 765 | 23,317 | ||||||
| Life Technologies Corp.* | 832 | 32,373 | ||||||
| Vertex Pharmaceuticals, Inc.* | 881 | 29,258 | ||||||
| Total Biotechnology | 242,112 | |||||||
| Building Materials — 0.0%† | ||||||||
| Fortune Brands Home & Security, Inc.* | 328 | 5,586 | ||||||
| Chemicals — 3.7% | ||||||||
| Air Products & Chemicals, Inc. | 416 | 35,439 | ||||||
| Airgas, Inc. | 408 | 31,857 | ||||||
| Celanese Corp., Series A | 1,065 | 47,148 | ||||||
| CF Industries Holdings, Inc. | 384 | 55,672 | ||||||
| Dow Chemical Co. (The) | 1,189 | 34,196 | ||||||
| E.I. du Pont de Nemours & Co. | 899 | 41,156 | ||||||
| Eastman Chemical Co. | 1,000 | 39,060 | ||||||
| Ecolab, Inc. | 427 | 24,685 | ||||||
| FMC Corp. | 416 | 35,793 | ||||||
| International Flavors & Fragrances, Inc. | 294 | 15,411 | ||||||
| Monsanto Co. | 400 | 28,028 | ||||||
| Mosaic Co. (The) | 721 | 36,360 | ||||||
See accompanying Notes to Financial Statements.
24
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Chemicals — 3.7% (continued) | ||||||||
| PPG Industries, Inc. | 362 | $ | 30,223 | |||||
| Praxair, Inc. | 245 | 26,190 | ||||||
| Sherwin-Williams Co. (The) | 230 | 20,532 | ||||||
| Sigma-Aldrich Corp. | 230 | 14,366 | ||||||
| Total Chemicals | 516,116 | |||||||
| Coal — 0.6% | ||||||||
| CONSOL Energy, Inc. | 1,029 | 37,764 | ||||||
| Peabody Energy Corp. | 1,521 | 50,361 | ||||||
| Total Coal | 88,125 | |||||||
| Commercial Services — 2.3% | ||||||||
| Alliance Data Systems Corp.* | 392 | 40,705 | ||||||
| Apollo Group, Inc., Class A* | 760 | 40,941 | ||||||
| Automatic Data Processing, Inc. | 318 | 17,175 | ||||||
| Iron Mountain, Inc. | 482 | 14,846 | ||||||
| MasterCard, Inc., Class A | 100 | 37,282 | ||||||
| Moody’s Corp. | 850 | 28,628 | ||||||
| Paychex, Inc. | 559 | 16,831 | ||||||
| Towers Watson & Co., Class A | 455 | 27,268 | ||||||
| Verisk Analytics, Inc., Class A* | 475 | 19,062 | ||||||
| Visa, Inc., Class A | 413 | 41,932 | ||||||
| Western Union Co. | 2,369 | 43,258 | ||||||
| Total Commercial Services | 327,928 | |||||||
| Computers — 2.8% | ||||||||
| Apple, Inc.* | 141 | 57,105 | ||||||
| Cognizant Technology Solutions Corp., Class A* | 483 | 31,062 | ||||||
| Dell, Inc.* | 1,259 | 18,419 | ||||||
| EMC Corp.* | 1,581 | 34,055 | ||||||
| Hewlett-Packard Co. | 1,824 | 46,986 | ||||||
| IHS, Inc., Class A* | 323 | 27,830 | ||||||
| International Business Machines Corp. | 154 | 28,318 | ||||||
| NetApp, Inc.* | 1,104 | 40,042 | ||||||
| SanDisk Corp.* | 1,063 | 52,310 | ||||||
| Teradata Corp.* | 320 | 15,523 | ||||||
See accompanying Notes to Financial Statements.
25
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Computers — 2.8% (continued) | ||||||||
| Western Digital Corp.* | 1,390 | $ | 43,020 | |||||
| Total Computers | 394,670 | |||||||
| Cosmetics/Personal Care — 0.6% | ||||||||
| Avon Products, Inc. | 1,862 | 32,529 | ||||||
| Colgate-Palmolive Co. | 145 | 13,397 | ||||||
| Estee Lauder Cos., Inc. (The), Class A | 169 | 18,982 | ||||||
| Procter & Gamble Co. (The) | 241 | 16,077 | ||||||
| Total Cosmetics/Personal Care | 80,985 | |||||||
| Distribution/Wholesale — 0.8% | ||||||||
| Fastenal Co. | 558 | 24,334 | ||||||
| Fossil, Inc.* | 438 | 34,760 | ||||||
| Genuine Parts Co. | 400 | 24,480 | ||||||
| W.W. Grainger, Inc. | 136 | 25,458 | ||||||
| Total Distribution/Wholesale | 109,032 | |||||||
| Diversified Financial Services — 3.1% | ||||||||
| American Express Co. | 572 | 26,981 | ||||||
| Ameriprise Financial, Inc. | 1,136 | 56,391 | ||||||
| BlackRock, Inc. | 253 | 45,095 | ||||||
| Charles Schwab Corp. (The) | 3,104 | 34,951 | ||||||
| CME Group, Inc. | 112 | 27,291 | ||||||
| Discover Financial Services | 1,803 | 43,272 | ||||||
| Franklin Resources, Inc. | 341 | 32,757 | ||||||
| IntercontinentalExchange, Inc.* | 179 | 21,578 | ||||||
| NYSE Euronext | 1,546 | 40,351 | ||||||
| SLM Corp. | 3,545 | 47,503 | ||||||
| T. Rowe Price Group, Inc. | 511 | 29,101 | ||||||
| TD Ameritrade Holding Corp. | 2,357 | 36,887 | ||||||
| Total Diversified Financial Services | 442,158 | |||||||
| Electric — 2.1% | ||||||||
| AES Corp. (The)* | 2,785 | 32,974 | ||||||
| American Electric Power Co., Inc. | 182 | 7,518 | ||||||
| Calpine Corp.* | 1,433 | 23,401 | ||||||
See accompanying Notes to Financial Statements.
26
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Electric — 2.1% (continued) | ||||||||
| CMS Energy Corp. | 549 | $ | 12,122 | |||||
| Consolidated Edison, Inc. | 122 | 7,568 | ||||||
| Constellation Energy Group, Inc. | 209 | 8,291 | ||||||
| Dominion Resources, Inc. | 167 | 8,864 | ||||||
| DTE Energy Co. | 155 | 8,440 | ||||||
| Duke Energy Corp. | 357 | 7,854 | ||||||
| Edison International | 243 | 10,060 | ||||||
| Entergy Corp. | 155 | 11,323 | ||||||
| FirstEnergy Corp. | 145 | 6,423 | ||||||
| NextEra Energy, Inc. | 212 | 12,907 | ||||||
| Northeast Utilities | 390 | 14,067 | ||||||
| NRG Energy, Inc.* | 364 | 6,596 | ||||||
| NSTAR | 188 | 8,828 | ||||||
| OGE Energy Corp. | 248 | 14,064 | ||||||
| PG&E Corp. | 190 | 7,832 | ||||||
| Pinnacle West Capital Corp. | 260 | 12,527 | ||||||
| PPL Corp. | 259 | 7,620 | ||||||
| Progress Energy, Inc. | 144 | 8,067 | ||||||
| Public Service Enterprise Group, Inc. | 289 | 9,540 | ||||||
| SCANA Corp. | 222 | 10,003 | ||||||
| Southern Co. (The) | 217 | 10,045 | ||||||
| Wisconsin Energy Corp. | 391 | 13,669 | ||||||
| Xcel Energy, Inc. | 440 | 12,162 | ||||||
| Total Electric | 292,765 | |||||||
| Electrical Components & Equipment — 0.8% | ||||||||
| AMETEK, Inc. | 975 | 41,048 | ||||||
| Emerson Electric Co. | 872 | 40,626 | ||||||
| Energizer Holdings, Inc.* | 360 | 27,893 | ||||||
| Total Electrical Components & Equipment | 109,567 | |||||||
| Electronics — 1.5% | ||||||||
| Agilent Technologies, Inc.* | 1,412 | 49,321 | ||||||
| Amphenol Corp., Class A | 562 | 25,509 | ||||||
| Honeywell International, Inc. | 902 | 49,024 | ||||||
See accompanying Notes to Financial Statements.
27
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Electronics — 1.5% (continued) | ||||||||
| Mettler-Toledo International, Inc.* | 169 | $ | 24,963 | |||||
| Thermo Fisher Scientific, Inc.* | 736 | 33,098 | ||||||
| Waters Corp.* | 335 | 24,807 | ||||||
| Total Electronics | 206,722 | |||||||
| Engineering & Construction — 0.2% | ||||||||
| Fluor Corp. | 523 | 26,281 | ||||||
| Entertainment — 0.0%† | ||||||||
| Marriott Vacations Worldwide Corp.* | 96 | 1,647 | ||||||
| Environmental Control — 0.4% | ||||||||
| Republic Services, Inc. | 726 | 20,001 | ||||||
| Stericycle, Inc.* | 195 | 15,195 | ||||||
| Waste Management, Inc. | 552 | 18,056 | ||||||
| Total Environmental Control | 53,252 | |||||||
| Food — 1.9% | ||||||||
| Campbell Soup Co. | 247 | 8,210 | ||||||
| ConAgra Foods, Inc. | 538 | 14,203 | ||||||
| General Mills, Inc. | 354 | 14,305 | ||||||
| H.J. Heinz Co. | 255 | 13,780 | ||||||
| Hershey Co. (The) | 166 | 10,256 | ||||||
| Hormel Foods Corp. | 346 | 10,134 | ||||||
| JM Smucker Co. (The) | 171 | 13,367 | ||||||
| Kellogg Co. | 272 | 13,755 | ||||||
| Kraft Foods, Inc., Class A | 565 | 21,109 | ||||||
| Kroger Co. (The) | 952 | 23,058 | ||||||
| McCormick & Co., Inc. | 316 | 15,933 | ||||||
| Safeway, Inc. | 1,970 | 41,449 | ||||||
| Sara Lee Corp. | 759 | 14,360 | ||||||
| Sysco Corp. | 431 | 12,641 | ||||||
| Tyson Foods, Inc., Class A | 1,074 | 22,167 | ||||||
| Whole Foods Market, Inc. | 234 | 16,282 | ||||||
| Total Food | 265,009 | |||||||
See accompanying Notes to Financial Statements.
28
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Forest Products & Paper — 0.1% | ||||||||
| International Paper Co. | 605 | $ | 17,908 | |||||
| Gas — 0.3% | ||||||||
| CenterPoint Energy, Inc. | 428 | 8,599 | ||||||
| NiSource, Inc. | 568 | 13,524 | ||||||
| Sempra Energy | 276 | 15,180 | ||||||
| Southern Union Co. | 191 | 8,043 | ||||||
| Total Gas | 45,346 | |||||||
| Hand/Machine Tools — 0.4% | ||||||||
| Stanley Black & Decker, Inc. | 841 | 56,851 | ||||||
| Healthcare – Products — 2.7% | ||||||||
| Baxter International, Inc. | 366 | 18,110 | ||||||
| Becton Dickinson and Co. | 296 | 22,117 | ||||||
| Boston Scientific Corp.* | 3,391 | 18,108 | ||||||
| C.R. Bard, Inc. | 265 | 22,657 | ||||||
| CareFusion Corp.* | 1,368 | 34,761 | ||||||
| Edwards Lifesciences Corp.* | 341 | 24,109 | ||||||
| Henry Schein, Inc.* | 398 | 25,643 | ||||||
| Hospira, Inc.* | 889 | 26,999 | ||||||
| Intuitive Surgical, Inc.* | 47 | 21,761 | ||||||
| Medtronic, Inc. | 653 | 24,977 | ||||||
| ResMed, Inc.* | 979 | 24,867 | ||||||
| St. Jude Medical, Inc. | 959 | 32,894 | ||||||
| Stryker Corp. | 517 | 25,700 | ||||||
| Varian Medical Systems, Inc.* | 552 | 37,056 | ||||||
| Zimmer Holdings, Inc.* | 488 | 26,069 | ||||||
| Total Healthcare – Products | 385,828 | |||||||
| Healthcare – Services — 2.5% | ||||||||
| Aetna, Inc. | 1,135 | 47,886 | ||||||
| Cigna Corp. | 940 | 39,480 | ||||||
| DaVita, Inc.* | 521 | 39,497 | ||||||
| HCA Holdings, Inc.* | 2,444 | 53,841 | ||||||
| Humana, Inc. | 355 | 31,102 | ||||||
See accompanying Notes to Financial Statements.
29
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Healthcare – Services — 2.5% (continued) | ||||||||
| Laboratory Corp. of America Holdings* | 342 | $ | 29,402 | |||||
| Quest Diagnostics, Inc. | 625 | 36,287 | ||||||
| UnitedHealth Group, Inc. | 832 | 42,166 | ||||||
| WellPoint, Inc. | 478 | 31,667 | ||||||
| Total Healthcare – Services | 351,328 | |||||||
| Household Products/Wares — 0.3% | ||||||||
| Church & Dwight Co., Inc. | 327 | 14,964 | ||||||
| Clorox Co. (The) | 192 | 12,779 | ||||||
| Kimberly-Clark Corp. | 168 | 12,358 | ||||||
| Total Household Products/Wares | 40,101 | |||||||
| Insurance — 4.5% | ||||||||
| Aflac, Inc. | 1,258 | 54,421 | ||||||
| Allstate Corp. (The) | 1,572 | 43,089 | ||||||
| American International Group, Inc.* | 1,876 | 43,523 | ||||||
| Aon Corp. | 491 | 22,979 | ||||||
| Berkshire Hathaway, Inc., Class B* | 123 | 9,385 | ||||||
| Chubb Corp. (The) | 383 | 26,511 | ||||||
| CNA Financial Corp. | 1,070 | 28,622 | ||||||
| Hartford Financial Services Group, Inc. (The) | 3,158 | 51,318 | ||||||
| Lincoln National Corp. | 3,614 | 70,184 | ||||||
| Marsh & McLennan Cos., Inc. | 636 | 20,110 | ||||||
| MetLife, Inc. | 1,773 | 55,282 | ||||||
| Principal Financial Group, Inc. | 1,936 | 47,626 | ||||||
| Progressive Corp. (The) | 1,000 | 19,510 | ||||||
| Prudential Financial, Inc. | 1,202 | 60,244 | ||||||
| Travelers Cos., Inc. (The) | 602 | 35,620 | ||||||
| Unum Group | 1,998 | 42,098 | ||||||
| Total Insurance | 630,522 | |||||||
| Internet — 2.4% | ||||||||
| Amazon.com, Inc.* | 39 | 6,751 | ||||||
| eBay, Inc.* | 897 | 27,206 | ||||||
| Expedia, Inc. | 502 | 14,568 | ||||||
| F5 Networks, Inc.* | 548 | 58,154 | ||||||
See accompanying Notes to Financial Statements.
30
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Internet — 2.4% (continued) | ||||||||
| Google, Inc., Class A* | 83 | $ | 53,610 | |||||
| LinkedIn Corp., Class A* | 82 | 5,167 | ||||||
| Netflix, Inc.* | 348 | 24,113 | ||||||
| Priceline.com, Inc.* | 89 | 41,626 | ||||||
| Rackspace Hosting, Inc.* | 514 | 22,107 | ||||||
| Symantec Corp.* | 1,822 | 28,514 | ||||||
| TripAdvisor, Inc.* | 502 | 12,655 | ||||||
| VeriSign, Inc. | 705 | 25,183 | ||||||
| Yahoo!, Inc.* | 1,272 | 20,517 | ||||||
| Total Internet | 340,171 | |||||||
| Iron/Steel — 0.8% | ||||||||
| Cliffs Natural Resources, Inc. | 1,092 | 68,086 | ||||||
| Nucor Corp. | 1,047 | 41,430 | ||||||
| Total Iron/Steel | 109,516 | |||||||
| Leisure Time — 0.3% | ||||||||
| Harley-Davidson, Inc. | 1,081 | 42,018 | ||||||
| Lodging — 1.8% | ||||||||
| Hyatt Hotels Corp., Class A* | 490 | 18,444 | ||||||
| Las Vegas Sands Corp.* | 1,283 | 54,823 | ||||||
| Marriott International, Inc., Class A | 968 | 28,236 | ||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 957 | 45,907 | ||||||
| Wyndham Worldwide Corp. | 1,386 | 52,432 | ||||||
| Wynn Resorts Ltd. | 442 | 48,837 | ||||||
| Total Lodging | 248,679 | |||||||
| Machinery – Construction & Mining — 0.9% | ||||||||
| Caterpillar, Inc. | 752 | 68,131 | ||||||
| Joy Global, Inc. | 715 | 53,604 | ||||||
| Total Machinery – Construction & Mining | 121,735 | |||||||
| Machinery – Diversified — 1.4% | ||||||||
| Cummins, Inc. | 583 | 51,316 | ||||||
| Deere & Co. | 555 | 42,929 | ||||||
See accompanying Notes to Financial Statements.
31
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Machinery – Diversified — 1.4% (continued) | ||||||||
| Rockwell Automation, Inc. | 690 | $ | 50,625 | |||||
| Roper Industries, Inc. | 381 | 33,098 | ||||||
| Xylem, Inc.* | 870 | 22,350 | ||||||
| Total Machinery – Diversified | 200,318 | |||||||
| Media — 4.0% | ||||||||
| Cablevision Systems Corp., Class A | 2,501 | 35,564 | ||||||
| CBS Corp., Class B | 2,264 | 61,445 | ||||||
| Charter Communications, Inc., Class A* | 127 | 7,231 | ||||||
| Comcast Corp., Class A | 1,754 | 41,587 | ||||||
| DIRECTV, Class A* | 449 | 19,199 | ||||||
| Discovery Communications, Inc., Class A* | 1,093 | 44,780 | ||||||
| DISH Network Corp., Class A | 471 | 13,414 | ||||||
| McGraw-Hill Cos., Inc. (The) | 477 | 21,451 | ||||||
| News Corp., Class A | 2,748 | 49,024 | ||||||
| Scripps Networks Interactive, Class A | 997 | 42,293 | ||||||
| Sirius XM Radio, Inc.* | 18,933 | 34,458 | ||||||
| Time Warner Cable, Inc. | 610 | 38,778 | ||||||
| Time Warner, Inc. | 1,343 | 48,536 | ||||||
| Viacom, Inc., Class B | 1,143 | 51,904 | ||||||
| Walt Disney Co. (The) | 1,364 | 51,150 | ||||||
| Total Media | 560,814 | |||||||
| Metal Fabricate/Hardware — 0.2% | ||||||||
| Precision Castparts Corp. | 128 | 21,093 | ||||||
| Mining — 0.9% | ||||||||
| Freeport-McMoRan Copper & Gold, Inc. | 1,624 | 59,747 | ||||||
| Southern Copper Corp. | 2,232 | 67,362 | ||||||
| Total Mining | 127,109 | |||||||
| Miscellaneous Manufacturing — 3.0% | ||||||||
| 3M Co. | 468 | 38,250 | ||||||
| Danaher Corp. | 779 | 36,644 | ||||||
| Dover Corp. | 874 | 50,736 | ||||||
| Eaton Corp. | 1,222 | 53,194 | ||||||
See accompanying Notes to Financial Statements.
32
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Miscellaneous Manufacturing — 3.0% (continued) | ||||||||
| General Electric Co. | 2,563 | $ | 45,903 | |||||
| Illinois Tool Works, Inc. | 907 | 42,366 | ||||||
| ITT Corp. | 435 | 8,409 | ||||||
| Pall Corp. | 756 | 43,205 | ||||||
| Parker Hannifin Corp. | 566 | 43,157 | ||||||
| Textron, Inc. | 3,243 | 59,963 | ||||||
| Total Miscellaneous Manufacturing | 421,827 | |||||||
| Office/Business Equipment — 0.4% | ||||||||
| Xerox Corp. | 7,159 | 56,986 | ||||||
| Oil & Gas — 7.8% | ||||||||
| Anadarko Petroleum Corp. | 187 | 14,274 | ||||||
| Apache Corp. | 476 | 43,116 | ||||||
| Cabot Oil & Gas Corp. | 498 | 37,798 | ||||||
| Chesapeake Energy Corp. | 1,313 | 29,267 | ||||||
| Chevron Corp. | 205 | 21,812 | ||||||
| Cimarex Energy Co. | 382 | 23,646 | ||||||
| Concho Resources, Inc.* | 717 | 67,219 | ||||||
| ConocoPhillips | 145 | 10,566 | ||||||
| Continental Resources, Inc.* | 664 | 44,295 | ||||||
| Denbury Resources, Inc.* | 4,402 | 66,470 | ||||||
| Devon Energy Corp. | 713 | 44,206 | ||||||
| Diamond Offshore Drilling, Inc. | 790 | 43,655 | ||||||
| EOG Resources, Inc. | 725 | 71,420 | ||||||
| EQT Corp. | 550 | 30,135 | ||||||
| Exxon Mobil Corp. | 286 | 24,241 | ||||||
| Hess Corp. | 608 | 34,534 | ||||||
| HollyFrontier Corp. | 1,927 | 45,092 | ||||||
| Linn Energy LLC | 504 | 19,107 | ||||||
| Marathon Oil Corp. | 1,050 | 30,733 | ||||||
| Marathon Petroleum Corp. | 1,841 | 61,287 | ||||||
| Murphy Oil Corp. | 948 | 52,842 | ||||||
| Newfield Exploration Co.* | 884 | 33,353 | ||||||
| Noble Energy, Inc. | 159 | 15,008 | ||||||
See accompanying Notes to Financial Statements.
33
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Oil & Gas — 7.8% (continued) | ||||||||
| Occidental Petroleum Corp. | 569 | $ | 53,315 | |||||
| Pioneer Natural Resources Co. | 379 | 33,913 | ||||||
| QEP Resources, Inc. | 1,609 | 47,144 | ||||||
| Range Resources Corp. | 166 | 10,282 | ||||||
| Southwestern Energy Co.* | 704 | 22,486 | ||||||
| Valero Energy Corp. | 3,078 | 64,792 | ||||||
| Total Oil & Gas | 1,096,008 | |||||||
| Oil & Gas Services — 1.7% | ||||||||
| Baker Hughes, Inc. | 1,099 | 53,456 | ||||||
| Cameron International Corp.* | 870 | 42,795 | ||||||
| FMC Technologies, Inc.* | 630 | 32,905 | ||||||
| Halliburton Co. | 1,716 | 59,219 | ||||||
| National Oilwell Varco, Inc. | 765 | 52,012 | ||||||
| Total Oil & Gas Services | 240,387 | |||||||
| Packaging & Containers — 0.5% | ||||||||
| Ball Corp. | 837 | 29,889 | ||||||
| Crown Holdings, Inc.* | 1,111 | 37,308 | ||||||
| Total Packaging & Containers | 67,197 | |||||||
| Pharmaceuticals — 2.8% | ||||||||
| Abbott Laboratories | 450 | 25,303 | ||||||
| Allergan, Inc. | 207 | 18,162 | ||||||
| AmerisourceBergen Corp. | 719 | 26,740 | ||||||
| Bristol-Myers Squibb Co. | 167 | 5,885 | ||||||
| Cardinal Health, Inc. | 636 | 25,828 | ||||||
| Express Scripts, Inc.* | 1,149 | 51,349 | ||||||
| Johnson & Johnson | 177 | 11,608 | ||||||
| McKesson Corp. | 460 | 35,839 | ||||||
| Mead Johnson Nutrition Co. | 157 | 10,791 | ||||||
| Medco Health Solutions, Inc.* | 806 | 45,055 | ||||||
| Merck & Co., Inc. | 460 | 17,342 | ||||||
| Mylan, Inc.* | 2,588 | 55,538 | ||||||
| Perrigo Co. | 193 | 18,779 | ||||||
See accompanying Notes to Financial Statements.
34
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Pharmaceuticals — 2.8% (continued) | ||||||||
| Pfizer, Inc. | 663 | $ | 14,347 | |||||
| Watson Pharmaceuticals, Inc.* | 562 | 33,911 | ||||||
| Total Pharmaceuticals | 396,477 | |||||||
| Pipelines — 1.9% | ||||||||
| Boardwalk Pipeline Partners LP | 265 | 7,332 | ||||||
| Buckeye Partners LP | 113 | 7,230 | ||||||
| El Paso Corp. | 1,167 | 31,007 | ||||||
| El Paso Pipeline Partners LP | 216 | 7,478 | ||||||
| Enbridge Energy Partners LP | 216 | 7,169 | ||||||
| Energy Transfer Equity LP | 471 | 19,113 | ||||||
| Energy Transfer Partners LP | 949 | 43,512 | ||||||
| Enterprise Products Partners LP | 211 | 9,786 | ||||||
| Kinder Morgan Energy Partners LP | 74 | 6,286 | ||||||
| Kinder Morgan, Inc. | 405 | 13,029 | ||||||
| Magellan Midstream Partners LP | 163 | 11,227 | ||||||
| ONEOK Partners LP | 274 | 15,821 | ||||||
| ONEOK, Inc. | 161 | 13,957 | ||||||
| Plains All American Pipeline LP | 171 | 12,560 | ||||||
| Spectra Energy Corp. | 789 | 24,262 | ||||||
| Williams Cos., Inc. (The) | 985 | 32,525 | ||||||
| Williams Partners LP | 185 | 11,098 | ||||||
| Total Pipelines | 273,392 | |||||||
| Private Equity — 0.4% | ||||||||
| Blackstone Group LP (The) | 3,781 | 52,972 | ||||||
| Real Estate — 0.2% | ||||||||
| CBRE Group, Inc.* | 2,168 | 32,997 | ||||||
| Real Estate Investment Trust — 1.2% | ||||||||
| American Capital Agency Corp. | 650 | 18,252 | ||||||
| American Tower Corp. | 184 | 11,042 | ||||||
| Annaly Capital Management, Inc. | 826 | 13,183 | ||||||
| AvalonBay Communities, Inc. | 60 | 7,836 | ||||||
| Boston Properties, Inc. | 62 | 6,175 | ||||||
See accompanying Notes to Financial Statements.
35
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Real Estate Investment Trust — 1.2% (continued) | ||||||||
| Digital Realty Trust, Inc. | 121 | $ | 8,067 | |||||
| Equity Residential | 103 | 5,874 | ||||||
| Federal Realty Investment Trust | 70 | 6,353 | ||||||
| HCP, Inc. | 252 | 10,440 | ||||||
| Health Care REIT, Inc. | 144 | 7,852 | ||||||
| Host Hotels & Resorts, Inc. | 520 | 7,680 | ||||||
| Kimco Realty Corp. | 357 | 5,798 | ||||||
| Macerich Co. (The) | 136 | 6,882 | ||||||
| Plum Creek Timber Co., Inc. | 170 | 6,215 | ||||||
| Public Storage | 80 | 10,757 | ||||||
| Rayonier, Inc. | 266 | 11,872 | ||||||
| Simon Property Group, Inc. | 66 | 8,510 | ||||||
| Ventas, Inc. | 124 | 6,836 | ||||||
| Weyerhaeuser Co. | 408 | 7,617 | ||||||
| Total Real Estate Investment Trust | 167,241 | |||||||
| Retail — 7.5% | ||||||||
| Abercrombie & Fitch Co., Class A | 611 | 29,841 | ||||||
| AutoNation, Inc.* | 1,019 | 37,570 | ||||||
| AutoZone, Inc.* | 99 | 32,172 | ||||||
| Bed Bath & Beyond, Inc.* | 575 | 33,333 | ||||||
| Best Buy Co., Inc. | 1,723 | 40,266 | ||||||
| CarMax, Inc.* | 1,369 | 41,727 | ||||||
| Chipotle Mexican Grill, Inc.* | 44 | 14,861 | ||||||
| Costco Wholesale Corp. | 164 | 13,664 | ||||||
| CVS Caremark Corp. | 811 | 33,073 | ||||||
| Darden Restaurants, Inc. | 810 | 36,920 | ||||||
| Dollar General Corp.* | 839 | 34,516 | ||||||
| Dollar Tree, Inc.* | 370 | 30,751 | ||||||
| Family Dollar Stores, Inc. | 573 | 33,039 | ||||||
| Gap, Inc. (The) | 1,361 | 25,247 | ||||||
| Home Depot, Inc. (The) | 926 | 38,929 | ||||||
| J.C. Penney Co., Inc. | 1,218 | 42,813 | ||||||
| Kohl’s Corp. | 738 | 36,420 | ||||||
| Lowe’s Cos., Inc. | 1,505 | 38,197 | ||||||
See accompanying Notes to Financial Statements.
36
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Retail — 7.5% (continued) | ||||||||
| Ltd. Brands, Inc. | 731 | $ | 29,496 | |||||
| Macy’s, Inc. | 1,144 | 36,814 | ||||||
| McDonald’s Corp. | 172 | 17,257 | ||||||
| Nordstrom, Inc. | 516 | 25,650 | ||||||
| O’Reilly Automotive, Inc.* | 387 | 30,941 | ||||||
| PetSmart, Inc. | 599 | 30,723 | ||||||
| Ross Stores, Inc. | 676 | 32,130 | ||||||
| Staples, Inc. | 2,836 | 39,392 | ||||||
| Starbucks Corp. | 543 | 24,983 | ||||||
| Target Corp. | 597 | 30,578 | ||||||
| Tiffany & Co. | 504 | 33,395 | ||||||
| TJX Cos., Inc. (The) | 454 | 29,306 | ||||||
| Tractor Supply Co. | 354 | 24,833 | ||||||
| Walgreen Co. | 888 | 29,357 | ||||||
| Wal-Mart Stores, Inc. | 505 | 30,179 | ||||||
| Yum! Brands, Inc. | 375 | 22,129 | ||||||
| Total Retail | 1,060,502 | |||||||
| Savings & Loans — 0.1% | ||||||||
| New York Community Bancorp, Inc. | 991 | 12,259 | ||||||
| Semiconductors — 3.6% | ||||||||
| Altera Corp. | 1,091 | 40,476 | ||||||
| Analog Devices, Inc. | 838 | 29,984 | ||||||
| Applied Materials, Inc. | 3,037 | 32,526 | ||||||
| Broadcom Corp., Class A* | 1,173 | 34,439 | ||||||
| First Solar, Inc.* | 930 | 31,397 | ||||||
| Intel Corp. | 1,619 | 39,261 | ||||||
| KLA-Tencor Corp. | 743 | 35,850 | ||||||
| Lam Research Corp.* | 478 | 17,696 | ||||||
| Linear Technology Corp. | 782 | 23,483 | ||||||
| Maxim Integrated Products, Inc. | 886 | 23,071 | ||||||
| Microchip Technology, Inc. | 695 | 25,458 | ||||||
| Micron Technology, Inc.* | 2,724 | 17,134 | ||||||
| NVIDIA Corp.* | 3,261 | 45,197 | ||||||
See accompanying Notes to Financial Statements.
37
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Semiconductors — 3.6% (continued) | ||||||||
| QUALCOMM, Inc. | 636 | $ | 34,789 | |||||
| Rovi Corp.* | 942 | 23,154 | ||||||
| Texas Instruments, Inc. | 834 | 24,278 | ||||||
| Xilinx, Inc. | 1,011 | 32,413 | ||||||
| Total Semiconductors | 510,606 | |||||||
| Software — 3.7% | ||||||||
| Activision Blizzard, Inc. | 2,315 | 28,521 | ||||||
| Adobe Systems, Inc.* | 1,510 | 42,688 | ||||||
| ANSYS, Inc.* | 511 | 29,270 | ||||||
| Autodesk, Inc.* | 1,213 | 36,790 | ||||||
| BMC Software, Inc.* | 871 | 28,551 | ||||||
| CA, Inc. | 1,732 | 35,012 | ||||||
| Cerner Corp.* | 214 | 13,108 | ||||||
| Citrix Systems, Inc.* | 336 | 20,402 | ||||||
| Electronic Arts, Inc.* | 1,217 | 25,070 | ||||||
| Fidelity National Information Services, Inc. | 1,624 | 43,182 | ||||||
| Fiserv, Inc.* | 666 | 39,121 | ||||||
| Informatica Corp.* | 391 | 14,440 | ||||||
| Intuit, Inc. | 465 | 24,454 | ||||||
| Microsoft Corp. | 1,487 | 38,603 | ||||||
| Nuance Communications, Inc.* | 1,503 | 37,816 | ||||||
| Oracle Corp. | 1,226 | 31,447 | ||||||
| Red Hat, Inc.* | 284 | 11,726 | ||||||
| Salesforce.com, Inc.* | 79 | 8,015 | ||||||
| VMware, Inc., Class A* | 206 | 17,137 | ||||||
| Total Software | 525,353 | |||||||
| Telecommunications — 2.1% | ||||||||
| AT&T, Inc. | 463 | 14,001 | ||||||
| Cisco Systems, Inc. | 1,744 | 31,531 | ||||||
| Corning, Inc. | 3,026 | 39,277 | ||||||
| Crown Castle International Corp.* | 232 | 10,394 | ||||||
| Frontier Communications Corp. | 1,056 | 5,438 | ||||||
| Juniper Networks, Inc.* | 2,172 | 44,331 | ||||||
See accompanying Notes to Financial Statements.
38
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Telecommunications — 2.1% (continued) | ||||||||
| Motorola Mobility Holdings, Inc.* | 209 | $ | 8,109 | |||||
| Motorola Solutions, Inc. | 548 | 25,367 | ||||||
| NII Holdings, Inc.* | 1,809 | 38,532 | ||||||
| Verizon Communications, Inc. | 433 | 17,372 | ||||||
| Virgin Media, Inc. | 2,318 | 49,559 | ||||||
| Windstream Corp. | 549 | 6,445 | ||||||
| Total Telecommunications | 290,356 | |||||||
| Toys/Games/Hobbies — 0.4% | ||||||||
| Hasbro, Inc. | 833 | 26,564 | ||||||
| Mattel, Inc. | 868 | 24,096 | ||||||
| Total Toys/Games/Hobbies | 50,660 | |||||||
| Transportation — 2.3% | ||||||||
| C.H. Robinson Worldwide, Inc. | 241 | 16,817 | ||||||
| CSX Corp. | 2,223 | 46,816 | ||||||
| Expeditors International of Washington, Inc. | 435 | 17,818 | ||||||
| FedEx Corp. | 608 | 50,774 | ||||||
| Kansas City Southern* | 848 | 57,673 | ||||||
| Norfolk Southern Corp. | 619 | 45,100 | ||||||
| Union Pacific Corp. | 497 | 52,652 | ||||||
| United Parcel Service, Inc., Class B | 393 | 28,764 | ||||||
| Total Transportation | 316,414 | |||||||
| Water — 0.1% | ||||||||
| American Water Works Co., Inc. | 458 | 14,592 | ||||||
| Total Common Stocks (Cost $14,839,517) | 13,727,269 | |||||||
| FOREIGN STOCKS — 1.8% | ||||||||
| Agriculture — 0.2% | ||||||||
| Bunge Ltd. (Bermuda) | 591 | 33,805 | ||||||
| Diversified Financial Services — 0.4% | ||||||||
| Invesco Ltd. (Bermuda) | 2,677 | 53,781 | ||||||
See accompanying Notes to Financial Statements.
39
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Leisure Time — 0.7% | ||||||||
| Carnival Corp. (Panama) | 1,165 | $ | 38,026 | |||||
| Royal Caribbean Cruises Ltd. (Liberia) | 2,456 | 60,835 | ||||||
| Total Leisure Time | 98,861 | |||||||
| Oil & Gas Services — 0.4% | ||||||||
| Schlumberger Ltd. (Curacao) | 714 | 48,773 | ||||||
| Real Estate — 0.1% | ||||||||
| Brookfield Office Properties, Inc. (Canada) | 761 | 11,902 | ||||||
| Total Foreign Stocks (Cost $289,545) | 247,122 | |||||||
| MONEY MARKET FUND — 0.8% | ||||||||
| Fidelity Institutional Money Market Prime (Cost $116,906) | 116,906 | 116,906 | ||||||
| Total Investments — 100.1% (Cost $15,245,968) | 14,091,297 | |||||||
| Liabilities in Excess of Other Assets — (0.1%) | (7,713 | ) | ||||||
| Net Assets — 100.0% | $ | 14,083,584 | ||||||
| * | Non-income producing security |
| † | Less than 0.05% |
| REIT | Real Estate Investment Trust |
See accompanying Notes to Financial Statements.
40
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Advertising | 0.2 | % | ||
| Aerospace/Defense | 2.0 | |||
| Agriculture | 1.1 | |||
| Airlines | 0.3 | |||
| Apparel | 0.7 | |||
| Auto Manufacturers | 1.0 | |||
| Auto Parts & Equipment | 1.0 | |||
| Banks | 4.6 | |||
| Beverages | 1.1 | |||
| Biotechnology | 1.7 | |||
| Building Materials | — | † | ||
| Chemicals | 3.7 | |||
| Coal | 0.6 | |||
| Commercial Services | 2.3 | |||
| Computers | 2.8 | |||
| Cosmetics/Personal Care | 0.6 | |||
| Distribution/Wholesale | 0.8 | |||
| Diversified Financial Services | 3.5 | |||
| Electric | 2.1 | |||
| Electrical Components & Equipment | 0.8 | |||
| Electronics | 1.5 | |||
| Engineering & Construction | 0.2 | |||
| Entertainment | — | † | ||
| Environmental Control | 0.4 | |||
| Food | 1.9 | |||
| Forest Products & Paper | 0.1 | |||
| Gas | 0.3 | |||
| Hand/Machine Tools | 0.4 | |||
| Healthcare – Products | 2.7 | |||
| Healthcare – Services | 2.5 | |||
| Household Products/Wares | 0.3 | |||
| Insurance | 4.5 | |||
| Internet | 2.4 | |||
| Iron/Steel | 0.8 | |||
| Leisure Time | 1.0 | |||
| Lodging | 1.8 | |||
| Machinery – Construction & Mining | 0.9 | |||
| Machinery – Diversified | 1.4 | |||
| Media | 4.0 | |||
| Metal Fabricate/Hardware | 0.2 | |||
| Mining | 0.9 | |||
| Miscellaneous Manufacturing | 3.0 | |||
See accompanying Notes to Financial Statements.
41
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
| | |||
| Office/Business Equipment | 0.4 | % | ||
| Oil & Gas | 7.8 | |||
| Oil & Gas Services | 2.1 | |||
| Packaging & Containers | 0.5 | |||
| Pharmaceuticals | 2.8 | |||
| Pipelines | 1.9 | |||
| Private Equity | 0.4 | |||
| Real Estate | 0.3 | |||
| Real Estate Investment Trust | 1.2 | |||
| Retail | 7.5 | |||
| Savings & Loans | 0.1 | |||
| Semiconductors | 3.6 | |||
| Software | 3.7 | |||
| Telecommunications | 2.1 | |||
| Toys/Games/Hobbies | 0.4 | |||
| Transportation | 2.3 | |||
| Water | 0.1 | |||
| Money Market Fund | 0.8 | |||
| Total Investments | 100.1 | |||
| Liabilities in Excess of Other Assets | (0.1 | ) | ||
| Net Assets | 100.0 | % | ||
| † | Less than 0.05%. |
See accompanying Notes to Financial Statements.
42
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| COMMON STOCKS — 99.8% | ||||||||
| Advertising — 0.6% | ||||||||
| Publicis Groupe SA (France)(a) | 1,408 | $ | 32,201 | |||||
| WPP PLC (Jersey Islands)(a) | 751 | 39,225 | ||||||
| Total Advertising | 71,426 | |||||||
| Aerospace/Defense — 0.2% | ||||||||
| Rolls-Royce Holdings PLC (United Kingdom)*(a) | 319 | 18,416 | ||||||
| Agriculture — 0.6% | ||||||||
| British American Tobacco PLC (United Kingdom)(a) | 331 | 31,405 | ||||||
| Imperial Tobacco Group PLC (United Kingdom)(a) | 405 | 30,513 | ||||||
| Total Agriculture | 61,918 | |||||||
| Airlines — 0.7% | ||||||||
| All Nippon Airways Co. Ltd. (Japan)(a) | 604 | 3,298 | ||||||
| China Eastern Airlines Corp. Ltd. (China)*(b) | 4,390 | 77,966 | ||||||
| Total Airlines | 81,264 | |||||||
| Apparel — 0.3% | ||||||||
| Burberry Group PLC (United Kingdom)(a) | 874 | 32,373 | ||||||
| Auto Manufacturers — 4.1% | ||||||||
| Bayerische Motoren Werke AG (Germany)(a) | 2,746 | 61,044 | ||||||
| Daimler AG (Germany)(a) | 1,338 | 59,099 | ||||||
| Fiat SpA (Italy)(a) | 12,458 | 57,182 | ||||||
| Nissan Motor Co. Ltd. (Japan)(a) | 1,146 | 20,376 | ||||||
| Porsche Automobil Holding SE (Germany)(a) | 12,294 | 64,544 | ||||||
| Tata Motors Ltd. (India)(a) | 3,710 | 62,699 | ||||||
| Toyota Motor Corp. (Japan)(a) | 914 | 60,443 | ||||||
| Volvo AB (Sweden)(a) | 6,572 | 71,240 | ||||||
| Total Auto Manufacturers | 456,627 | |||||||
| Auto Parts & Equipment — 1.5% | ||||||||
| Bridgestone Corp. (Japan)(a) | 1,098 | 49,410 | ||||||
| Cie Generale des Etablissements Michelin (France)(a) | 4,777 | 55,986 | ||||||
| Weichai Power Co. Ltd. (China)(a) | 2,960 | 57,572 | ||||||
| Total Auto Parts & Equipment | 162,968 | |||||||
| Banks — 15.7% | ||||||||
| Akbank TAS (Turkey)(a) | 4,335 | 27,224 | ||||||
See accompanying Notes to Financial Statements.
43
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Banks — 15.7% (continued) | ||||||||
| Australia & New Zealand Banking Group Ltd. (Australia)(a) | 1,383 | $ | 28,794 | |||||
| Banco Bilbao Vizcaya Argentaria SA (Spain)(a) | 4,006 | 34,331 | ||||||
| Banco Bradesco SA (Brazil)(a) | 1,837 | 30,641 | ||||||
| Banco de Chile (Chile)(a) | 968 | 79,134 | ||||||
| Banco Santander Chile (Chile)(a) | 529 | 40,045 | ||||||
| Banco Santander SA (Spain)(a) | 6,199 | 46,617 | ||||||
| Bancolombia SA (Colombia)(a) | 954 | 56,820 | ||||||
| Bank of China Ltd. (China)(a) | 7,965 | 72,880 | ||||||
| Barclays PLC (United Kingdom)(a) | 6,554 | 72,028 | ||||||
| BNP Paribas SA (France)(a) | 3,139 | 61,681 | ||||||
| BOC Hong Kong Holdings Ltd. (Hong Kong)(a) | 1,039 | 48,999 | ||||||
| China Construction Bank Corp. (China)(a) | 5,589 | 77,911 | ||||||
| Credit Agricole SA (France)(a) | 22,326 | 61,173 | ||||||
| Danske Bank A/S (Denmark)*(a) | 11,669 | 73,515 | ||||||
| DBS Group Holdings Ltd. (Singapore)(a) | 1,335 | 47,286 | ||||||
| Grupo Financiero Banorte SAB de CV (Mexico)(a) | 4,377 | 66,399 | ||||||
| Hang Seng Bank Ltd. (Hong Kong)(a) | 2,026 | 23,907 | ||||||
| HSBC Holdings PLC (United Kingdom)(a) | 1,683 | 64,122 | ||||||
| ICICI Bank Ltd. (India)(a) | 1,448 | 38,271 | ||||||
| Industrial & Commercial Bank of China Ltd. (China)(a) | 6,650 | 79,268 | ||||||
| Itau Unibanco Holding SA (Brazil)(a) | 2,900 | 53,824 | ||||||
| Julius Baer Group Ltd. (Switzerland)(a) | 5,183 | 40,168 | ||||||
| Lloyds Banking Group PLC (United Kingdom)*(a) | 34,033 | 53,432 | ||||||
| Mitsubishi UFJ Financial Group, Inc. (Japan)(a) | 12,851 | 53,846 | ||||||
| National Australia Bank Ltd. (Australia)(a) | 1,424 | 34,076 | ||||||
| Nedbank Group Ltd. (South Africa)(a) | 2,287 | 40,388 | ||||||
| PT Bank Mandiri Tbk (Indonesia)(a) | 9,212 | 67,248 | ||||||
| PT Bank Rakyat Indonesia Persero TBK (Indonesia)(a) | 2,558 | 39,163 | ||||||
| Societe Generale SA (France)(a) | 13,548 | 59,069 | ||||||
| Standard Bank Group Ltd. (South Africa)(a) | 676 | 16,623 | ||||||
| Swedbank AB (Sweden)(a) | 6,022 | 77,383 | ||||||
| Turkiye Halk Bankasi AS (Turkey)(a) | 5,712 | 59,885 | ||||||
See accompanying Notes to Financial Statements.
44
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Banks — 15.7% (continued) | ||||||||
| United Overseas Bank Ltd. (Singapore)(a) | 1,078 | $ | 25,398 | |||||
| Total Banks | 1,751,549 | |||||||
| Beverages — 2.5% | ||||||||
| Anheuser-Busch InBev NV (Belgium)(a) | 787 | 47,999 | ||||||
| Coca-Cola Amatil Ltd. (Australia)(a) | 442 | 10,312 | ||||||
| Coca-Cola Femsa SAB de CV (Mexico)(a) | 126 | 11,996 | ||||||
| Diageo PLC (United Kingdom)(a) | 307 | 26,838 | ||||||
| Heineken NV (Netherlands)(a) | 1,708 | 39,335 | ||||||
| Kirin Holdings Co. Ltd. (Japan)(a) | 4,231 | 50,772 | ||||||
| Pernod-Ricard SA (France)(a) | 1,826 | 33,690 | ||||||
| SABMiller PLC (United Kingdom)(a) | 1,034 | 36,242 | ||||||
| Tsingtao Brewery Co. Ltd. (China)(a) | 406 | 22,338 | ||||||
| Total Beverages | 279,522 | |||||||
| Biotechnology — 0.2% | ||||||||
| CSL Ltd. (Australia)(a) | 1,340 | 21,815 | ||||||
| Building Materials — 1.5% | ||||||||
| Anhui Conch Cement Co. Ltd., Class H (China)(a) | 2,883 | 42,092 | ||||||
| Asahi Glass Co. Ltd. (Japan)(a) | 1,234 | 10,193 | ||||||
| CRH PLC (Ireland)(a) | 3,366 | 66,714 | ||||||
| Lafarge SA (France)(a) | 5,491 | 47,662 | ||||||
| Total Building Materials | 166,661 | |||||||
| Chemicals — 3.3% | ||||||||
| Air Liquide SA (France)(a) | 808 | 19,877 | ||||||
| Asahi Kasei Corp. (Japan)(a) | 4,569 | 55,057 | ||||||
| BASF SE (Germany)(a) | 781 | 54,459 | ||||||
| Givaudan SA (Switzerland)(a) | 1,529 | 29,571 | ||||||
| Israel Chemicals Ltd. (Israel)(a) | 5,688 | 59,724 | ||||||
| Koninklijke DSM NV (Netherlands)(a) | 6,267 | 72,133 | ||||||
| Nitto Denko Corp. (Japan)(a) | 219 | 7,781 | ||||||
| Shin-Etsu Chemical Co. Ltd. (Japan)(a) | 3,750 | 46,050 | ||||||
| Syngenta AG (Switzerland)*(a) | 397 | 23,399 | ||||||
| Total Chemicals | 368,051 | |||||||
See accompanying Notes to Financial Statements.
45
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Coal — 1.1% | ||||||||
| China Shenhua Energy Co. Ltd. (China)(a) | 594 | $ | 25,560 | |||||
| Exxaro Resources Ltd. (South Africa)(a) | 2,261 | 46,848 | ||||||
| Yanzhou Coal Mining Co. Ltd. (China)(a) | 2,255 | 47,828 | ||||||
| Total Coal | 120,236 | |||||||
| Commercial Services — 1.4% | ||||||||
| Adecco SA (Switzerland)(a) | 2,600 | 54,236 | ||||||
| Experian PLC (Jersey Islands)(a) | 2,650 | 35,961 | ||||||
| New Oriental Education & Technology Group Inc. (Cayman Islands)*(a) | 592 | 14,238 | ||||||
| Secom Co. Ltd. (Japan)(a) | 1,127 | 12,791 | ||||||
| Sodexo (France)(a) | 515 | 37,054 | ||||||
| Total Commercial Services | 154,280 | |||||||
| Computers — 0.3% | ||||||||
| Fujitsu Ltd. (Japan)(a) | 748 | 19,336 | ||||||
| Infosys Ltd. (India)(a) | 251 | 12,896 | ||||||
| Total Computers | 32,232 | |||||||
| Cosmetics/Personal Care — 0.7% | ||||||||
| Kao Corp. (Japan)(a) | 845 | 22,984 | ||||||
| Shiseido Co. Ltd. (Japan)(a) | 2,806 | 50,873 | ||||||
| Total Cosmetics/Personal Care | 73,857 | |||||||
| Distribution/Wholesale — 3.8% | ||||||||
| ITOCHU Corp. (Japan)(a) | 3,854 | 77,620 | ||||||
| Li & Fung Ltd. (Hong Kong)(a) | 12,058 | 44,253 | ||||||
| Mitsubishi Corp. (Japan)(a) | 1,636 | 65,555 | ||||||
| Mitsui & Co. Ltd. (Japan)(a) | 274 | 84,803 | ||||||
| Sumitomo Corp. (Japan)(a) | 5,439 | 73,426 | ||||||
| Wolseley PLC (Jersey Islands)(a) | 25,613 | 83,242 | ||||||
| Total Distribution/Wholesale | 428,899 | |||||||
| Diversified Financial Services — 1.9% | ||||||||
| Deutsche Boerse AG (Germany)(a) | 7,993 | 43,962 | ||||||
| Macquarie Group Ltd. (Australia)(a) | 1,509 | 36,669 | ||||||
| Nomura Holdings, Inc. (Japan)(a) | 19,338 | 57,627 | ||||||
| Old Mutual PLC (United Kingdom)(a) | 1,003 | 16,897 | ||||||
See accompanying Notes to Financial Statements.
46
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Diversified Financial Services — 1.9% (continued) | ||||||||
| ORIX Corp. (Japan)(a) | 1,317 | $ | 53,931 | |||||
| Total Diversified Financial Services | 209,086 | |||||||
| Electric — 2.7% | ||||||||
| Centrais Eletricas Brasileiras SA (Brazil)*(a) | 8,745 | 84,914 | ||||||
| CLP Holdings Ltd. (Hong Kong)(a) | 1,867 | 15,795 | ||||||
| EDF SA (France)(a) | 3,032 | 14,584 | ||||||
| GDF Suez (France)(a) | 602 | 16,356 | ||||||
| International Power PLC (United Kingdom)(a) | 870 | 45,414 | ||||||
| Korea Electric Power Corp. (South Korea)(a) | 8,349 | 91,672 | ||||||
| Power Assets Holdings Ltd. (Hong Kong)(a) | 4,025 | 29,544 | ||||||
| Verbund AG (Austria)(a) | 1,320 | 7,106 | ||||||
| Total Electric | 305,385 | |||||||
| Electrical Components & Equipment — 0.8% | ||||||||
| Hitachi Ltd. (Japan)(a) | 273 | 14,234 | ||||||
| Nidec Corp. (Japan)(a) | 1,607 | 34,679 | ||||||
| Schneider Electric SA (France)(a) | 3,906 | 41,052 | ||||||
| Total Electrical Components & Equipment | 89,965 | |||||||
| Electronics — 0.7% | ||||||||
| Hoya Corp. (Japan)(a) | 2,251 | 48,576 | ||||||
| Murata Manufacturing Co. Ltd. (Japan)(a) | 776 | 9,778 | ||||||
| Toshiba Corp. (Japan)(a) | 847 | 20,548 | ||||||
| Total Electronics | 78,902 | |||||||
| Engineering & Construction — 0.7% | ||||||||
| ABB Ltd. (Switzerland)*(a) | 2,041 | 38,432 | ||||||
| Orascom Construction Industries (Egypt)(a) | 1,315 | 42,869 | ||||||
| Total Engineering & Construction | 81,301 | |||||||
| Food — 2.5% | ||||||||
| Carrefour SA (France)(a) | 12,777 | 57,241 | ||||||
| Charoen Pokphand Foods PCL (Thailand)(a) | 1,223 | 4,904 | ||||||
| Danone SA (France)(a) | 1,654 | 20,907 | ||||||
| J Sainsbury PLC (United Kingdom)(a) | 1,818 | 33,906 | ||||||
| Koninklijke Ahold NV (Netherlands)(a) | 2,934 | 39,462 | ||||||
| Shoprite Holdings Ltd. (South Africa)(a) | 966 | 32,139 | ||||||
| Tesco PLC (United Kingdom)(a) | 2,087 | 39,319 | ||||||
See accompanying Notes to Financial Statements.
47
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Food — 2.5% (continued) | ||||||||
| William Morrison Supermarkets PLC (United Kingdom)(a) | 1,835 | $ | 46,150 | |||||
| Total Food | 274,028 | |||||||
| Food Service — 0.2% | ||||||||
| Compass Group PLC (United Kingdom)(a) | 2,501 | 23,710 | ||||||
| Forest Products & Paper — 0.3% | ||||||||
| Svenska Cellulosa AB (Sweden)(a) | 2,178 | 31,995 | ||||||
| Gas — 0.4% | ||||||||
| Hong Kong & China Gas Co. Ltd. (Hong Kong)(a) | 5,866 | 13,257 | ||||||
| PT Perusahaan Gas Negara (Indonesia)(a) | 2,004 | 34,669 | ||||||
| Total Gas | 47,926 | |||||||
| Hand/Machine Tools — 0.5% | ||||||||
| Sandvik AB (Sweden)(a) | 4,892 | 59,682 | ||||||
| Healthcare – Products — 0.5% | ||||||||
| Essilor International SA (France)(a) | 459 | 16,120 | ||||||
| Luxottica Group SpA (Italy)(a) | 551 | 15,389 | ||||||
| Smith & Nephew PLC (United Kingdom)(a) | 550 | 26,483 | ||||||
| Total Healthcare – Products | 57,992 | |||||||
| Holding Companies – Diversified — 3.3% | ||||||||
| Bidvest Group Ltd. (South Africa)(a) | 1,150 | 43,677 | ||||||
| China Resources Enterprise Ltd. (Hong Kong)(a) | 5,130 | 35,243 | ||||||
| Hutchison Whampoa Ltd. (Hong Kong)(a) | 4,272 | 70,830 | ||||||
| Keppel Corp. Ltd. (Singapore)(a) | 3,914 | 55,735 | ||||||
| KOC Holding AS (Turkey)(a) | 4,175 | 62,124 | ||||||
| LVMH Moet Hennessy Louis Vuitton SA (France)(a) | 565 | 15,877 | ||||||
| Swire Pacific Ltd., Class A (Hong Kong)(a) | 6,583 | 78,996 | ||||||
| Total Holding Companies – Diversified | 362,482 | |||||||
| Home Furnishings — 1.6% | ||||||||
| Panasonic Corp. (Japan)(a) | 5,213 | 43,737 | ||||||
| Sharp Corp. (Japan)(a) | 7,313 | 63,769 | ||||||
| Sony Corp. (Japan)(a) | 4,026 | 72,629 | ||||||
| Total Home Furnishings | 180,135 | |||||||
| Insurance — 4.1% | ||||||||
| AIA Group Ltd. (Hong Kong)(a) | 2,009 | 25,173 | ||||||
| Allianz SE (Germany)(a) | 4,588 | 43,448 | ||||||
See accompanying Notes to Financial Statements.
48
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Insurance — 4.1% (continued) | ||||||||
| AXA SA (France)(a) | 4,931 | $ | 63,413 | |||||
| China Life Insurance Co. Ltd. (China)(a) | 242 | 8,947 | ||||||
| ING Groep NV (Netherlands)*(a) | 9,332 | 66,910 | ||||||
| Legal & General Group PLC (United Kingdom)(a) | 1,985 | 15,781 | ||||||
| Ping An Insurance Group Co. of China Ltd. (China)(a) | 3,890 | 50,998 | ||||||
| Prudential PLC (United Kingdom)(a) | 1,968 | 38,848 | ||||||
| QBE Insurance Group Ltd. (Australia)(a) | 815 | 10,799 | ||||||
| Sampo Oyj, Class A (Finland)(a) | 2,343 | 28,889 | ||||||
| Tokio Marine Holdings, Inc. (Japan)(a) | 2,686 | 59,092 | ||||||
| Zurich Financial Services AG (Switzerland)*(a) | 2,062 | 46,766 | ||||||
| Total Insurance | 459,064 | |||||||
| Internet — 1.0% | ||||||||
| Baidu, Inc. (Cayman Islands)*(a) | 252 | 29,351 | ||||||
| Ctrip.com International Ltd. (Cayman Islands)*(a) | 551 | 12,893 | ||||||
| NetEase.com (Cayman Islands)*(a) | 847 | 37,988 | ||||||
| Tencent Holdings Ltd. (Cayman Islands)(a) | 1,651 | 33,251 | ||||||
| Total Internet | 113,483 | |||||||
| Iron/Steel — 2.2% | ||||||||
| ArcelorMittal (Luxembourg)(c) | 4,065 | 73,942 | ||||||
| Fortescue Metals Group Ltd. (Australia)(a) | 2,831 | 61,687 | ||||||
| Kumba Iron Ore Ltd. (South Africa)(a) | 216 | 13,252 | ||||||
| Mechel (Russia)(a) | 6,999 | 59,492 | ||||||
| Rio Tinto PLC (United Kingdom)(a) | 811 | 39,674 | ||||||
| Total Iron/Steel | 248,047 | |||||||
| Leisure Time — 0.2% | ||||||||
| Carnival PLC (United Kingdom)(a) | 542 | 17,848 | ||||||
| Lodging — 1.7% | ||||||||
| City Developments Ltd. (Singapore)(a) | 1,295 | 8,780 | ||||||
| Galaxy Entertainment Group Ltd. (Hong Kong)*(a) | 1,773 | 32,508 | ||||||
| Genting Singapore PLC (Malaysia)*(a) | 642 | 37,382 | ||||||
| Sands China Ltd. (Cayman Islands)*(a) | 2,436 | 68,963 | ||||||
| Wynn Macau Ltd. (Cayman Islands)(a) | 1,805 | 45,305 | ||||||
| Total Lodging | 192,938 | |||||||
See accompanying Notes to Financial Statements.
49
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Machinery – Construction & Mining — 1.2% | ||||||||
| Atlas Copco AB, Class A (Sweden)(a) | 2,481 | $ | 53,217 | |||||
| Komatsu Ltd. (Japan)(a) | 3,406 | 80,450 | ||||||
| Total Machinery – Construction & Mining | 133,667 | |||||||
| Media — 0.7% | ||||||||
| British Sky Broadcasting Group PLC (United Kingdom)(a) | 1,097 | 49,683 | ||||||
| Naspers Ltd., Class N (South Africa)(a) | 441 | 19,184 | ||||||
| Reed Elsevier PLC (United Kingdom)(a) | 376 | 12,122 | ||||||
| Total Media | 80,989 | |||||||
| Metal Fabricate/Hardware — 1.7% | ||||||||
| Assa Abloy AB (Sweden)(a) | 3,848 | 47,946 | ||||||
| SKF AB (Sweden)(a) | 2,497 | 52,537 | ||||||
| Tenaris SA (Luxembourg)(a) | 2,366 | 87,968 | ||||||
| Total Metal Fabricate/Hardware | 188,451 | |||||||
| Mining — 8.2% | ||||||||
| Aluminum Corp. of China Ltd. (China)(a) | 3,788 | 40,910 | ||||||
| Anglo American PLC (United Kingdom)(a) | 3,861 | 70,077 | ||||||
| AngloGold Ashanti Ltd. (South Africa)(a) | 2,030 | 86,174 | ||||||
| Antofagasta PLC (United Kingdom)(a) | 2,337 | 87,451 | ||||||
| BHP Billiton Ltd. (Australia)(a) | 822 | 58,058 | ||||||
| BHP Billiton PLC (United Kingdom)(a) | 1,269 | 74,097 | ||||||
| Cia de Minas Buenaventura SA (Peru)(a) | 1,588 | 60,884 | ||||||
| Gold Fields Ltd. (South Africa)(a) | 2,622 | 39,986 | ||||||
| Harmony Gold Mining Co. Ltd. (South Africa)(a) | 5,030 | 58,549 | ||||||
| Jiangxi Copper Co. Ltd. (China)(a) | 493 | 42,403 | ||||||
| Newcrest Mining Ltd. (Australia)(a) | 1,638 | 49,648 | ||||||
| Norsk Hydro ASA (Norway)(a) | 11,509 | 52,366 | ||||||
| Randgold Resources Ltd. (Jersey Islands)(a) | 742 | 75,758 | ||||||
| Sterlite Industries India Ltd. (India)(a) | 7,079 | 49,057 | ||||||
| Xstrata PLC (United Kingdom)(a) | 24,469 | 72,428 | ||||||
| Total Mining | 917,846 | |||||||
| Miscellaneous Manufacturing — 1.1% | ||||||||
| FUJIFILM Holdings Corp. (Japan)(a) | 2,384 | 55,452 | ||||||
| Orkla ASA (Norway)(a) | 1,407 | 10,482 | ||||||
See accompanying Notes to Financial Statements.
50
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Miscellaneous Manufacturing — 1.1% (continued) | ||||||||
| Siemens AG (Germany)(a) | 622 | $ | 59,469 | |||||
| Total Miscellaneous Manufacturing | 125,403 | |||||||
| Office/Business Equipment — 0.2% | ||||||||
| Canon, Inc. (Japan)(a) | 436 | 19,201 | ||||||
| Oil & Gas — 6.6% | ||||||||
| BG Group PLC (United Kingdom)(a) | 384 | 41,088 | ||||||
| BP PLC (United Kingdom)(a) | 1,036 | 44,279 | ||||||
| CNOOC Ltd. (Hong Kong)(a) | 132 | 23,058 | ||||||
| Ecopetrol SA (Colombia)(a) | 1,446 | 64,376 | ||||||
| Eni SpA (Italy)(a) | 1,450 | 59,841 | ||||||
| Ensco PLC (United Kingdom)(a) | 1,504 | 70,568 | ||||||
| MOL Hungarian Oil and Gas PLC (Hungary)*(a) | 560 | 20,261 | ||||||
| PetroChina Co. Ltd. (China)(a) | 225 | 27,970 | ||||||
| PTT Exploration and Production PCL (Thailand)(a) | 3,722 | 38,337 | ||||||
| Repsol YPF SA (Spain)(a) | 2,226 | 67,915 | ||||||
| Royal Dutch Shell PLC, Class A (United Kingdom)(a) | 1,040 | 76,013 | ||||||
| Statoil ASA (Norway)(a) | 2,894 | 74,115 | ||||||
| Total SA (France)(a) | 833 | 42,575 | ||||||
| Tullow Oil PLC (United Kingdom)(a) | 7,598 | 81,648 | ||||||
| Total Oil & Gas | 732,044 | |||||||
| Oil & Gas Services — 1.9% | ||||||||
| Petrofac Ltd. (Jersey Islands)(a) | 4,938 | 55,256 | ||||||
| Saipem SpA (Italy)(a) | 2,423 | 51,247 | ||||||
| Subsea 7 SA (Luxembourg)*(a) | 2,902 | 54,006 | ||||||
| Technip SA (France)(a) | 2,121 | 50,056 | ||||||
| Total Oil & Gas Services | 210,565 | |||||||
| Packaging & Containers — 0.5% | ||||||||
| Amcor Ltd. (Australia)(a) | 1,975 | 58,263 | ||||||
| Pharmaceuticals — 2.1% | ||||||||
| Astellas Pharma, Inc. (Japan)(a) | 832 | 33,588 | ||||||
| GlaxoSmithKline PLC (United Kingdom)(a) | 700 | 31,941 | ||||||
| Novartis AG (Switzerland)(a) | 268 | 15,322 | ||||||
| Novo Nordisk A/S (Denmark)(a) | 348 | 40,111 | ||||||
| Roche Holding AG (Switzerland)(a) | 428 | 18,211 | ||||||
See accompanying Notes to Financial Statements.
51
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Pharmaceuticals — 2.1% (continued) | ||||||||
| Shire PLC (Jersey Islands)(a) | 456 | $ | 47,378 | |||||
| Teva Pharmaceutical Industries Ltd. (Israel)(a) | 1,242 | 50,127 | ||||||
| Total Pharmaceuticals | 236,678 | |||||||
| Real Estate — 1.3% | ||||||||
| BR Malls Participacoes SA (Brazil)*(a) | 1,274 | 24,753 | ||||||
| Hang Lung Properties Ltd. (Hong Kong)(a) | 4,145 | 58,859 | ||||||
| Henderson Land Development Co. Ltd. (Hong Kong)(a) | 2,632 | 12,897 | ||||||
| Sun Hung Kai Properties Ltd. (Hong Kong)(a) | 4,107 | 51,337 | ||||||
| Total Real Estate | 147,846 | |||||||
| Retail — 2.1% | ||||||||
| Aeon Co. Ltd. (Japan)(a) | 2,246 | 30,748 | ||||||
| Compagnie Financiere Richemont SA (Switzerland)(a) | 8,661 | 43,478 | ||||||
| Kingfisher PLC (United Kingdom)(a) | 6,913 | 53,161 | ||||||
| Marks & Spencer Group PLC (United Kingdom)(a) | 2,502 | 23,819 | ||||||
| PPR (France)*(a) | 509 | 7,311 | ||||||
| Swatch Group AG (The) (Switzerland)(a) | 2,377 | 44,450 | ||||||
| Wesfarmers Ltd. (Australia)(a) | 2,150 | 32,164 | ||||||
| Total Retail | 235,131 | |||||||
| Semiconductors — 1.2% | ||||||||
| Advanced Semiconductor Engineering, Inc. (Taiwan)(a) | 5,274 | 22,889 | ||||||
| ASML Holding NV (Netherlands) | 1,387 | 57,963 | ||||||
| Infineon Technologies AG (Germany)(a) | 7,538 | 56,610 | ||||||
| Total Semiconductors | 137,462 | |||||||
| Software — 0.1% | ||||||||
| Dassault Systemes SA (France)(a) | 181 | 14,554 | ||||||
| Telecommunications — 5.6% | ||||||||
| Bezeq The Israeli Telecommunication Corp. Ltd. (Israel)(a) | 1,003 | 9,308 | ||||||
| BT Group PLC (United Kingdom)(a) | 947 | 28,069 | ||||||
| China Telecom Corp. Ltd. (China)(a) | 253 | 14,454 | ||||||
| China Unicom Ltd. (Hong Kong)(a) | 2,977 | 62,904 | ||||||
| Deutsche Telekom AG (Germany)(a) | 1,712 | 19,602 | ||||||
| KDDI Corp. (Japan)(a) | 1,283 | 20,656 | ||||||
| Mobile TeleSystems (Russia)(a) | 1,818 | 26,688 | ||||||
| MTN Group Ltd. (South Africa)(a) | 2,473 | 43,772 | ||||||
See accompanying Notes to Financial Statements.
52
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Telecommunications — 5.6% (continued) | ||||||||
| Nippon Telegraph & Telephone Corp. (Japan)(a) | 1,060 | $ | 26,850 | |||||
| PT Telekomunikasi Indonesia Tbk (Indonesia)(a) | 329 | 10,113 | ||||||
| SK Telecom Co. Ltd. (South Korea)(a) | 3,807 | 51,813 | ||||||
| Softbank Corp. (Japan)(a) | 3,946 | 57,612 | ||||||
| Telefonaktiebolaget LM Ericsson (Sweden)(a) | 4,783 | 48,452 | ||||||
| Telefonica SA (Spain)(a) | 1,225 | 21,058 | ||||||
| Telenor ASA (Norway)(a) | 1,158 | 56,476 | ||||||
| Telstra Corp. Ltd. (Australia)(a) | 932 | 15,891 | ||||||
| VimpelCom Ltd. (Bermuda)(a) | 7,212 | 68,298 | ||||||
| Vivendi SA (France)(a) | 1,629 | 35,414 | ||||||
| Vodafone Group PLC (United Kingdom)(a) | 385 | 10,791 | ||||||
| Total Telecommunications | 628,221 | |||||||
| Transportation — 1.1% | ||||||||
| Deutsche Post AG (Germany)(a) | 2,260 | 34,849 | ||||||
| East Japan Railway Co. (Japan)(a) | 6,444 | 67,340 | ||||||
| West Japan Railway Co. (Japan)(a) | 350 | 15,216 | ||||||
| Total Transportation | 117,405 | |||||||
| Water — 0.4% | ||||||||
| Suez Environnement Co. (France)(a) | 4,781 | 27,443 | ||||||
| Veolia Environnement SA (France)(a) | 1,204 | 13,304 | ||||||
| Total Water | 40,747 | |||||||
| Total Common Stocks (Cost $13,451,796) | 11,140,536 | |||||||
| MONEY MARKET FUND — 0.3% | ||||||||
| Fidelity Institutional Money Market Prime (Cost $29,690) | 29,690 | 29,690 | ||||||
| Total Investments — 100.1% (Cost $13,481,486) | 11,170,226 | |||||||
| Liabilities in Excess of Other Assets — (0.1%) | (11,267 | ) | ||||||
| Net Assets — 100.0% | $ | 11,158,959 | ||||||
| * | Non-income producing security |
| (a) | American Depositary Receipt |
| (b) | American Depositary Share |
| (c) | Registered Shares |
See accompanying Notes to Financial Statements.
53
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Advertising | 0.6 | % | ||
| Aerospace/Defense | 0.2 | |||
| Agriculture | 0.6 | |||
| Airlines | 0.7 | |||
| Apparel | 0.3 | |||
| Auto Manufacturers | 4.1 | |||
| Auto Parts & Equipment | 1.5 | |||
| Banks | 15.7 | |||
| Beverages | 2.5 | |||
| Biotechnology | 0.2 | |||
| Building Materials | 1.5 | |||
| Chemicals | 3.3 | |||
| Coal | 1.1 | |||
| Commercial Services | 1.4 | |||
| Computers | 0.3 | |||
| Cosmetics/Personal Care | 0.7 | |||
| Distribution/Wholesale | 3.8 | |||
| Diversified Financial Services | 1.9 | |||
| Electric | 2.7 | |||
| Electrical Components & Equipment | 0.8 | |||
| Electronics | 0.7 | |||
| Engineering & Construction | 0.7 | |||
| Food | 2.5 | |||
| Food Service | 0.2 | |||
| Forest Products & Paper | 0.3 | |||
| Gas | 0.4 | |||
| Hand/Machine Tools | 0.5 | |||
| Healthcare – Products | 0.5 | |||
| Holding Companies – Diversified | 3.3 | |||
| Home Furnishings | 1.6 | |||
| Insurance | 4.1 | |||
| Internet | 1.0 | |||
| Iron/Steel | 2.2 | |||
| Leisure Time | 0.2 | |||
| Lodging | 1.7 | |||
| Machinery – Construction & Mining | 1.2 | |||
| Media | 0.7 | |||
| Metal Fabricate/Hardware | 1.7 | |||
| Mining | 8.2 | |||
| Miscellaneous Manufacturing | 1.1 | |||
| Office/Business Equipment | 0.2 | |||
See accompanying Notes to Financial Statements.
54
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
| | |||
| Oil & Gas | 6.6 | % | ||
| Oil & Gas Services | 1.9 | |||
| Packaging & Containers | 0.5 | |||
| Pharmaceuticals | 2.1 | |||
| Real Estate | 1.3 | |||
| Retail | 2.1 | |||
| Semiconductors | 1.2 | |||
| Software | 0.1 | |||
| Telecommunications | 5.6 | |||
| Transportation | 1.1 | |||
| Water | 0.4 | |||
| Money Market Fund | 0.3 | |||
| Total Investments | 100.1 | |||
| Liabilities in Excess of Other Assets | (0.1 | ) | ||
| Net Assets | 100.0 | % | ||
See accompanying Notes to Financial Statements.
55
ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| EXCHANGE TRADED FUNDS — 99.0% | ||||||||
| Asset Allocation Fund — 4.1% | ||||||||
| PowerShares Convertible Securities Portfolio | 17,000 | $ | 377,400 | |||||
| SPDR Barclays Capital Convertible Securities ETF | 6,543 | 236,660 | ||||||
| Total Asset Allocation Fund | 614,060 | |||||||
| Debt Fund — 91.0% | ||||||||
| iShares iBoxx $ High Yield Corporate Bond Fund | 22,806 | 2,039,541 | ||||||
| iShares iBoxx $ Investment Grade Corporate Bond Fund | 23,349 | 2,656,182 | ||||||
| iShares S&P/Citigroup International Treasury Bond Fund | 7,055 | 704,794 | ||||||
| PIMCO 1 – 5 Year US TIPS Index Fund | 11,121 | 593,194 | ||||||
| PowerShares Build America Bond Portfolio | 20,467 | 586,994 | ||||||
| PowerShares Emerging Markets Sovereign Debt Portfolio | 22,553 | 617,050 | ||||||
| PowerShares Insured National Municipal Bond Portfolio | 19,450 | 475,552 | ||||||
| PowerShares International Corporate Bond Portfolio | 44,793 | 1,185,223 | ||||||
| SPDR DB International Government Inflation-Protected Bond ETF | 8,246 | 468,043 | �� | |||||
| Vanguard Intermediate-Term Government Bond ETF | 11,289 | 741,236 | ||||||
| Vanguard Long-Term Government Bond ETF | 7,890 | 594,354 | ||||||
| Vanguard Mortgage-Backed Securities ETF | 39,258 | 2,037,098 | ||||||
| Vanguard Short-Term Bond ETF | 5,792 | 468,225 | ||||||
| Vanguard Short-Term Government Bond ETF | 9,642 | 589,126 | ||||||
| Total Debt Fund | 13,756,612 | |||||||
| Equity Fund — 3.9% | ||||||||
| PowerShares Financial Preferred Portfolio | 36,531 | 588,880 | ||||||
| Total Exchange Traded Funds (Cost $14,895,259) | 14,959,552 | |||||||
| MONEY MARKET FUND — 1.0% | ||||||||
| Fidelity Institutional Money Market Prime (Cost $146,712) | 146,712 | 146,712 | ||||||
| Total Investments — 100.0% (Cost $15,041,971) | 15,106,264 | |||||||
| Other Assets in Excess of Liabilities — 0.0%† | 7,135 | |||||||
| Net Assets — 100.0% | $ | 15,113,399 | ||||||
| ETF | — Exchange Traded Fund |
| TIPS | — Treasury Inflation Protected Securities |
| † | Less than 0.05% |
See accompanying Notes to Financial Statements.
56
ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Asset Allocation Fund | 4.1 | % | ||
| Debt Fund | 91.0 | |||
| Equity Fund | 3.9 | |||
| Money Market Fund | 1.0 | |||
| Total Investments | 100.0 | |||
| Other Assets in Excess of Liabilities | — | † | ||
| Net Assets | 100.0 | % | ||
| † | Less than 0.05%. |
See accompanying Notes to Financial Statements.
57
ADVISORSHARES TRUST
MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| EXCHANGE TRADED FUNDS — 97.7% | ||||||||
| Debt Fund — 24.7% | ||||||||
| SPDR Barclays Capital 1 – 3 Month T-Bill ETF* | 9,912 | $ | 454,267 | |||||
| Equity Fund — 73.0% | ||||||||
| iShares Dow Jones US Real Estate Index Fund | 1,563 | 88,763 | ||||||
| iShares S&P 100 Index Fund | 1,567 | 89,366 | ||||||
| iShares S&P 500 Index Fund | 709 | 89,306 | ||||||
| iShares S&P 500 Value Index Fund | 3,118 | 180,314 | ||||||
| iShares S&P MidCap 400 Value Index Fund | 2,342 | 177,945 | ||||||
| iShares S&P SmallCap 600 Growth Index Fund | 2,408 | 179,324 | ||||||
| iShares S&P SmallCap 600 Index Fund | 2,630 | 179,576 | ||||||
| iShares S&P SmallCap 600 Value Index Fund | 2,593 | 180,888 | ||||||
| SPDR S&P 500 ETF Trust | 709 | 88,979 | ||||||
| Vanguard REIT ETF | 1,535 | 89,030 | ||||||
| Total Equity Fund | 1,343,491 | |||||||
| Total Exchange Traded Funds (Cost $1,790,263) | 1,797,758 | |||||||
| MONEY MARKET FUND — 3.3% | ||||||||
| Dreyfus Institutional Reserves Treasury Fund (Cost $60,289) | 60,289 | 60,289 | ||||||
| Total Investments — 101.0% (Cost $1,850,552) | 1,858,047 | |||||||
| Liabilities in Excess of Other Assets — (1.0%) | (17,440 | ) | ||||||
| Net Assets — 100.0% | $ | 1,840,607 | ||||||
| ETF | — Exchange Traded Fund |
| REIT | — Real Estate Investment Trust |
| * | Non-income producing security |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Debt Fund | 24.7 | % | ||
| Equity Fund | 73.0 | |||
| Money Market Fund | 3.3 | |||
| Total Investments | 101.0 | |||
| Liabilities in Excess of Other Assets | (1.0 | ) | ||
| Net Assets | 100.0 | % | ||
See accompanying Notes to Financial Statements.
58
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| COMMON STOCKS — 94.9% | ||||||||
| Aerospace/Defense — 1.0% | ||||||||
| Lockheed Martin Corp. | 677 | $ | 54,769 | |||||
| Apparel — 2.1% | ||||||||
| Jones Group, Inc. (The) | 5,390 | 56,864 | ||||||
| Warnaco Group, Inc. (The)* | 1,020 | 51,041 | ||||||
| Total Apparel | 107,905 | |||||||
| Auto Parts & Equipment — 0.9% | ||||||||
| WABCO Holdings, Inc.* | 1,123 | 48,738 | ||||||
| Beverages — 4.1% | ||||||||
| Boston Beer Co., Inc. (The), Class A* | 520 | 56,451 | ||||||
| Constellation Brands, Inc., Class A* | 2,580 | 53,329 | ||||||
| Monster Beverage Corp.* | 560 | 51,598 | ||||||
| PepsiCo, Inc. | 820 | 54,407 | ||||||
| Total Beverages | 215,785 | |||||||
| Biotechnology — 5.1% | ||||||||
| Amgen, Inc. | 919 | 59,009 | ||||||
| Celgene Corp.* | 800 | 54,080 | ||||||
| Charles River Laboratories International, Inc.* | 1,770 | 48,374 | ||||||
| Gilead Sciences, Inc.* | 1,258 | 51,490 | ||||||
| Myriad Genetics, Inc.* | 2,530 | 52,978 | ||||||
| Total Biotechnology | 265,931 | |||||||
| Chemicals — 3.0% | ||||||||
| FMC Corp. | 610 | 52,484 | ||||||
| NewMarket Corp. | 250 | 49,528 | ||||||
| Sherwin-Williams Co. (The) | 600 | 53,562 | ||||||
| Total Chemicals | 155,574 | |||||||
| Commercial Services — 10.0% | ||||||||
| Aaron's, Inc. | 2,070 | 55,228 | ||||||
| Apollo Group, Inc., Class A* | 1,033 | 55,648 | ||||||
| Corrections Corp. of America* | 2,370 | 48,277 | ||||||
| Iron Mountain, Inc. | 1,710 | 52,668 | ||||||
| ITT Educational Services, Inc.* | 870 | 49,494 | ||||||
| Moody's Corp. | 1,443 | 48,600 | ||||||
See accompanying Notes to Financial Statements.
59
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Commercial Services — 10.0% (continued) | ||||||||
| SEI Investments Co. | 3,158 | $ | 54,791 | |||||
| Valassis Communications, Inc.* | 2,580 | 49,613 | ||||||
| Verisk Analytics, Inc., Class A* | 1,373 | 55,099 | ||||||
| Western Union Co. | 2,930 | 53,502 | ||||||
| Total Commercial Services | 522,920 | |||||||
| Computers — 6.5% | ||||||||
| CACI International, Inc., Class A* | 920 | 51,446 | ||||||
| Dell, Inc.* | 3,280 | 47,986 | ||||||
| NetApp, Inc.* | 1,440 | 52,229 | ||||||
| STEC, Inc.* | 5,500 | 47,245 | ||||||
| Synaptics, Inc.* | 1,524 | 45,949 | ||||||
| Teradata Corp.* | 1,040 | 50,450 | ||||||
| Unisys Corp.* | 2,370 | 46,713 | ||||||
| Total Computers | 342,018 | |||||||
| Diversified Financial Services — 2.9% | ||||||||
| Affiliated Managers Group, Inc.* | 550 | 52,773 | ||||||
| Greenhill & Co., Inc. | 1,328 | 48,299 | ||||||
| Legg Mason, Inc. | 2,130 | 51,226 | ||||||
| Total Diversified Financial Services | 152,298 | |||||||
| Electrical Components & Equipment — 1.0% | ||||||||
| Acuity Brands, Inc. | 990 | 52,470 | ||||||
| Electronics — 1.0% | ||||||||
| Tech Data Corp.* | 1,010 | 49,904 | ||||||
| Forest Products & Paper — 1.0% | ||||||||
| Domtar Corp. | 672 | 53,733 | ||||||
| Healthcare – Products — 4.2% | ||||||||
| Patterson Cos., Inc. | 1,770 | 52,251 | ||||||
| PSS World Medical, Inc.* | 2,344 | 56,701 | ||||||
| Varian Medical Systems, Inc.* | 810 | 54,375 | ||||||
| Zimmer Holdings, Inc.* | 1,000 | 53,420 | ||||||
| Total Healthcare – Products | 216,747 | |||||||
| Healthcare – Services — 1.9% | ||||||||
| HCA Holdings, Inc.* | 2,120 | 46,704 | ||||||
See accompanying Notes to Financial Statements.
60
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Healthcare – Services — 1.9% (continued) | ||||||||
| Humana, Inc. | 590 | $ | 51,690 | |||||
| Total Healthcare – Services | 98,394 | |||||||
| Home Builders — 1.1% | ||||||||
| Thor Industries, Inc. | 2,120 | 58,152 | ||||||
| Home Furnishings — 0.9% | ||||||||
| Tempur-Pedic International, Inc.* | 883 | 46,384 | ||||||
| Household Products/Wares — 1.0% | ||||||||
| Scotts Miracle-Gro Co. (The), Class A | 1,076 | 50,238 | ||||||
| Housewares — 1.0% | ||||||||
| Toro Co. (The) | 840 | 50,954 | ||||||
| Insurance — 1.0% | ||||||||
| Torchmark Corp. | 1,220 | 52,936 | ||||||
| Internet — 4.9% | ||||||||
| Ancestry.com, Inc.* | 2,200 | 50,512 | ||||||
| Expedia, Inc. | 1,784 | 51,772 | ||||||
| IAC/InterActiveCorp* | 1,230 | 52,398 | ||||||
| Symantec Corp.* | 3,030 | 47,419 | ||||||
| WebMD Health Corp., Class A* | 1,430 | 53,697 | ||||||
| Total Internet | 255,798 | |||||||
| Leisure Time — 1.0% | ||||||||
| Harley-Davidson, Inc. | 1,390 | 54,029 | ||||||
| Lodging — 2.0% | ||||||||
| Marriott International, Inc., Class A | 1,592 | 46,439 | ||||||
| Wyndham Worldwide Corp. | 1,510 | 57,123 | ||||||
| Total Lodging | 103,562 | |||||||
| Machinery – Diversified — 1.0% | ||||||||
| Nordson Corp. | 1,260 | 51,887 | ||||||
| Media — 4.0% | ||||||||
| DIRECTV, Class A* | 1,150 | 49,174 | ||||||
| FactSet Research Systems, Inc. | 590 | 51,495 | ||||||
| McGraw-Hill Cos., Inc. (The) | 1,198 | 53,874 | ||||||
See accompanying Notes to Financial Statements.
61
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Media — 4.0% (continued) | ||||||||
| Scripps Networks Interactive, Class A | 1,246 | $ | 52,856 | |||||
| Total Media | 207,399 | |||||||
| Oil & Gas — 2.1% | ||||||||
| Marathon Oil Corp. | 1,900 | 55,613 | ||||||
| Tesoro Corp.* | 2,250 | 52,560 | ||||||
| Total Oil & Gas | 108,173 | |||||||
| Pharmaceuticals — 4.9% | ||||||||
| AmerisourceBergen Corp. | 1,380 | 51,322 | ||||||
| Express Scripts, Inc.* | 1,181 | 52,779 | ||||||
| Forest Laboratories, Inc.* | 1,720 | 52,047 | ||||||
| ViroPharma, Inc.* | 1,884 | 51,603 | ||||||
| Watson Pharmaceuticals, Inc.* | 790 | 47,669 | ||||||
| Total Pharmaceuticals | 255,420 | |||||||
| Retail — 11.3% | ||||||||
| Advance Auto Parts, Inc. | 777 | 54,103 | ||||||
| Asbury Automotive Group, Inc.* | 2,530 | 54,547 | ||||||
| AutoZone, Inc.* | 157 | 51,020 | ||||||
| Brinker International, Inc. | 2,064 | 55,233 | ||||||
| Copart, Inc.* | 1,162 | 55,648 | ||||||
| Domino's Pizza, Inc.* | 1,493 | 50,687 | ||||||
| Group 1 Automotive, Inc. | 1,072 | 55,530 | ||||||
| Home Depot, Inc. (The) | 1,393 | 58,562 | ||||||
| O'Reilly Automotive, Inc.* | 656 | 52,447 | ||||||
| Papa John's International, Inc.* | 1,380 | 51,998 | ||||||
| Saks, Inc.* | 5,400 | 52,650 | ||||||
| Total Retail | 592,425 | |||||||
| Semiconductors — 5.9% | ||||||||
| Cypress Semiconductor Corp.* | 2,780 | 46,954 | ||||||
| Maxim Integrated Products, Inc. | 1,968 | 51,247 | ||||||
| Novellus Systems, Inc.* | 1,313 | 54,214 | ||||||
| PMC – Sierra, Inc.* | 9,360 | 51,573 | ||||||
| QLogic Corp.* | 3,576 | 53,640 | ||||||
| Silicon Laboratories, Inc.* | 1,200 | 52,104 | ||||||
| Total Semiconductors | 309,732 | |||||||
See accompanying Notes to Financial Statements.
62
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
| | | ||||||
| Investments | Shares | Value | ||||||
| Software — 5.1% | ||||||||
| Akamai Technologies, Inc.* | 1,800 | $ | 58,104 | |||||
| BMC Software, Inc.* | 1,450 | 47,531 | ||||||
| Ebix, Inc. | 2,440 | 53,924 | ||||||
| Fair Isaac Corp. | 1,420 | 50,893 | ||||||
| Quest Software, Inc.* | 2,883 | 53,624 | ||||||
| Total Software | 264,076 | |||||||
| Telecommunications — 3.0% | ||||||||
| Cisco Systems, Inc. | 2,780 | 50,262 | ||||||
| Comtech Telecommunications Corp. | 1,707 | 48,854 | ||||||
| Plantronics, Inc. | 1,596 | 56,882 | ||||||
| Total Telecommunications | 155,998 | |||||||
| Total Common Stocks (Cost $4,761,057) | 4,954,349 | |||||||
| FOREIGN STOCKS — 4.9% | ||||||||
| Commercial Services — 0.9% | ||||||||
| VistaPrint NV (Netherlands)* | 1,576 | 48,226 | ||||||
| Diversified Financial Services — 1.0% | ||||||||
| Lazard Ltd., Class A (Bermuda) | 2,020 | 52,742 | ||||||
| Insurance — 1.0% | ||||||||
| Assured Guaranty Ltd. (Bermuda) | 3,760 | 49,406 | ||||||
| Semiconductors — 1.0% | ||||||||
| Marvell Technology Group Ltd. (Bermuda)* | 3,670 | 50,829 | ||||||
| Telecommunications — 1.0% | ||||||||
| Amdocs Ltd. (Guernsey)* | 1,850 | 52,781 | ||||||
| Total Foreign Stocks (Cost $263,254) | 253,984 | |||||||
| MONEY MARKET FUND — 0.0%† | ||||||||
| Wells Fargo Advantage Government Money Market Fund (Cost $1,375) | 1,375 | 1,375 | ||||||
| Total Investments — 99.8% (Cost $5,025,686) | 5,209,708 | |||||||
| Other Assets in Excess of Liabilities — 0.2% | 12,272 | |||||||
| Net Assets — 100.0% | $ | 5,221,980 | ||||||
| * | Non-income producing security |
| † | Less than 0.05% |
See accompanying Notes to Financial Statements.
63
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |||
| Aerospace/Defense | 1.0 | % | ||
| Apparel | 2.1 | |||
| Auto Parts & Equipment | 0.9 | |||
| Beverages | 4.1 | |||
| Biotechnology | 5.1 | |||
| Chemicals | 3.0 | |||
| Commercial Services | 10.9 | |||
| Computers | 6.5 | |||
| Diversified Financial Services | 3.9 | |||
| Electrical Components & Equipment | 1.0 | |||
| Electronics | 1.0 | |||
| Forest Products & Paper | 1.0 | |||
| Healthcare – Products | 4.2 | |||
| Healthcare – Services | 1.9 | |||
| Home Builders | 1.1 | |||
| Home Furnishings | 0.9 | |||
| Household Products/Wares | 1.0 | |||
| Housewares | 1.0 | |||
| Insurance | 2.0 | |||
| Internet | 4.9 | |||
| Leisure Time | 1.0 | |||
| Lodging | 2.0 | |||
| Machinery – Diversified | 1.0 | |||
| Media | 4.0 | |||
| Oil & Gas | 2.1 | |||
| Pharmaceuticals | 4.9 | |||
| Retail | 11.3 | |||
| Semiconductors | 6.9 | |||
| Software | 5.1 | |||
| Telecommunications | 4.0 | |||
| Money Market Fund | — | † | ||
| Total Investments | 99.8 | |||
| Other Assets in Excess of Liabilities | 0.2 | |||
| Net Assets | 100.0 | % | ||
| † | Less than 0.05%. |
See accompanying Notes to Financial Statements.
64
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ADVISORSHARES TRUST
Statements of Assets and Liabilities
December 31, 2011 (Unaudited)
| | | | | ||||||||||||
| Dent Tactical ETF | Accuvest Global Long Short ETF(1) | Cambria Global Tactical ETF | WCM/ BNYMellon Focused Growth ADR ETF | |||||||||||||
| ASSETS | ||||||||||||||||
| Investments, at Market Value: | ||||||||||||||||
| Corporate Bonds (Cost $—, $—, $—, $—, $58,845,333, $—, $—, $— $—, $—, and $—) | $ | — | — | — | — | |||||||||||
| Exchange Traded Funds (Cost $8,757,030, $2,997,523, $128,148,426, $—, $—, $—, $—, $—, $14,895,259, $1,790,263 and $—) | 8,741,525 | 2,714,445 | 129,542,217 | — | ||||||||||||
| Foreign Bonds (Cost $—, $—, $—, $—, $4,870,570, $—, $—, $—, $—, $— and $—) | — | — | — | — | ||||||||||||
| Common Stocks (Cost $—, $—, $—, $6,253,921, $—, $—, $15,129,062, $13,451,796, $—, $— and $5,024,311) | — | — | — | 5,926,791 | ||||||||||||
| Money Market Instruments (Cost $4,441,764, $109,798, $13,437,470, $325,577, $216,671, $91,536,497, $116,906, $29,690, $146,712, $60,289 and $1,375) | 4,441,764 | 109,798 | 13,437,470 | 325,577 | ||||||||||||
| Total Investments (Cost $13,198,794, $3,107,321, $141,585,896, $6,579,498, $63,932,574, $91,536,497, $15,245,968, $13,481,486, $15,041,971, $1,850,552, and $5,025,686) | 13,183,289 | 2,824,243 | 142,979,687 | 6,252,368 | ||||||||||||
| Cash | — | 440,738 | 19,958 | — | ||||||||||||
| Cash collateral held at brokers | — | 2,318,476 | — | — | ||||||||||||
| Receivable from Securities Sold | — | — | 484,164 | — | ||||||||||||
| Receivable from Swap Contract Closed | — | 662,923 | — | — | ||||||||||||
| Interest Receivable | 73 | — | 116,487 | — | ||||||||||||
| Dividend Receivable | — | — | — | — | ||||||||||||
| Variation Margin Receivable | — | 13,824 | — | — | ||||||||||||
| Reclaim Receivable | — | — | — | 4,797 | ||||||||||||
| Due from Investment Advisor | — | 6,841 | — | 4,048 | ||||||||||||
| Deferred Offering | — | 6,857 | 18,509 | 4,433 | ||||||||||||
| Prepaid Trustee Fees | 6,355 | — | — | — | ||||||||||||
| Prepaid Expenses | 20,373 | 48,777 | 44,909 | 63,302 | ||||||||||||
| Total Assets | 13,210,090 | 6,322,679 | 143,663,714 | 6,328,948 | ||||||||||||
| LIABILITIES | ||||||||||||||||
| Due to Custodian | — | — | — | 43,170 | ||||||||||||
| Securities Sold, Not Yet Purchased (Proceeds Received $—, $2,342,639, $—, $—, $—, $141,491,185, $—, $—, $—, $— and $—) | — | 2,229,881 | — | — | ||||||||||||
| Equity swaps at Value (Proceeds Received $—, $662,923, $—, $—, $—, $—, $—, $—, $—, $— and $—) | — | 755,303 | — | — | ||||||||||||
| Due to Broker | — | 67,104 | — | — | ||||||||||||
| Advisory Payable | 7,213 | — | 115,983 | — | ||||||||||||
| Payable for Securities Purchased | — | — | 1,220,249 | — | ||||||||||||
| Capital Shares Payable | — | — | 337,108 | — | ||||||||||||
| Interest Payable | — | — | — | — | ||||||||||||
| Dividend Payable | — | 119,379 | — | — | ||||||||||||
| Distributions Payable | — | 46,188 | 1,214,084 | — | ||||||||||||
| Trustee Fees Payable | — | 1,045 | 3,719 | 996 | ||||||||||||
| Accrued Expenses | 52,220 | 21,585 | 52,476 | 27,808 | ||||||||||||
| Total Liabilities | 59,433 | 3,240,485 | 2,943,619 | 71,974 | ||||||||||||
| NET ASSETS | $ | 13,150,657 | 3,082,194 | 140,720,095 | 6,256,974 | |||||||||||
| COMPONENTS OF NET ASSETS | ||||||||||||||||
| Capital Stock at Zero Par Value | $ | 14,459,819 | 8,277,091 | 159,343,883 | 6,348,885 | |||||||||||
| Undistributed Net Investment Income (Loss) | (307,780 | ) | (73,579 | ) | 76,462 | (18,608 | ) | |||||||||
| Accumulated Net Gain (Loss) on Investments | (985,877 | ) | (4,872,442 | ) | (20,094,041 | ) | 253,827 | |||||||||
| Unrealized Appreciation (Depreciation) on Investments | (15,505 | ) | (248,876 | ) | 1,393,791 | (327,130 | ) | |||||||||
| NET ASSETS | $ | 13,150,657 | 3,082,194 | 140,720,095 | 6,256,974 | |||||||||||
| SHARES ISSUED AND OUTSTANDING | ||||||||||||||||
| Shares Outstanding (Unlimited Shares Authorized) | 700,000 | 150,000 | 6,000,000 | 225,000 | ||||||||||||
| Net Asset Value (NAV) Per Share | $ | 18.79 | 20.55 | 23.45 | 27.81 | |||||||||||
(1) Formerly Mars Hill Global Relative Value ETF.
See accompanying Notes to Financial Statements.
66
ADVISORSHARES TRUST
Statements of Assets and Liabilities
December 31, 2011 (Unaudited)
| | | | | | | | |||||||||||||||||||||
| Peritus High Yield ETF | Active Bear ETF | Madrona Domestic ETF | Madrona International ETF | Madrona Global Bond ETF | Meidell Tactical Advantage ETF | TrimTabs Float Shrink ETF | ||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||
| Investments, at Market Value: | ||||||||||||||||||||||||||||
| Corporate Bonds (Cost $—, $—, $—, $—, $58,845,333, $—, $—, $— $—, $—, and $—) | 55,421,250 | — | — | — | — | — | — | |||||||||||||||||||||
| Exchange Traded Funds (Cost $8,757,030, $2,997,523, $128,148,426, $—, $—, $—, $—, $—, $14,895,259, $1,790,263 and $—) | — | — | — | — | 14,959,552 | 1,797,758 | — | |||||||||||||||||||||
| Foreign Bonds (Cost $—, $—, $—, $—, $4,870,570, $—, $—, $—, $—, $— and $—) | 4,231,212 | — | — | — | — | — | — | |||||||||||||||||||||
| Common Stocks (Cost $—, $—, $—, $6,253,921, $—, $—, $15,129,062, $13,451,796, $—, $— and $5,024,311) | — | — | 13,974,391 | 11,140,536 | — | — | 5,208,333 | |||||||||||||||||||||
| Money Market Instruments (Cost $4,441,764, $109,798, $13,437,470, $325,577, $216,671, $91,536,497, $116,906, $29,690, $146,712, $60,289 and $1,375) | 216,671 | 91,536,497 | 116,906 | 29,690 | 146,712 | 60,289 | 1,375 | |||||||||||||||||||||
| Total Investments (Cost $13,198,794, $3,107,321, $141,585,896, $6,579,498, $63,932,574, $91,536,497, $15,245,968, $13,481,486, $15,041,971, $1,850,552, and $5,025,686) | 59,869,133 | 91,536,497 | 14,091,297 | 11,170,226 | 15,106,264 | 1,858,047 | 5,209,708 | |||||||||||||||||||||
| Cash | — | 60,244,147 | — | — | — | 1 | — | |||||||||||||||||||||
| Cash collateral held at brokers | — | 140,192,749 | — | — | — | — | — | |||||||||||||||||||||
| Receivable from Securities Sold | — | 9,314,269 | — | — | — | — | — | |||||||||||||||||||||
| Receivable from Swap Contract Closed | — | — | — | — | — | — | — | |||||||||||||||||||||
| Interest Receivable | 1,573,739 | 754 | 11 | 6 | 32,577 | — | — | |||||||||||||||||||||
| Dividend Receivable | — | — | 17,998 | 11,977 | — | 19 | 2,650 | |||||||||||||||||||||
| Variation Margin Receivable | — | — | — | — | — | — | — | |||||||||||||||||||||
| Reclaim Receivable | — | — | — | — | — | — | — | |||||||||||||||||||||
| Due from Investment Advisor | — | — | — | — | — | 6,300 | 4,027 | |||||||||||||||||||||
| Deferred Offering | 19,778 | 13,675 | — | — | — | — | — | |||||||||||||||||||||
| Prepaid Trustee Fees | — | — | — | — | — | — | — | |||||||||||||||||||||
| Prepaid Expenses | 10,079 | 29,061 | 11,856 | 11,633 | 10,644 | 8,790 | 17,638 | |||||||||||||||||||||
| Total Assets | 61,472,729 | 301,331,152 | 14,121,162 | 11,193,842 | 15,149,485 | 1,873,157 | 5,234,023 | |||||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||||||
| Due to Custodian | — | — | — | 338 | — | — | 1,547 | |||||||||||||||||||||
| Securities Sold, Not Yet Purchased (Proceeds Received $—, $2,342,639, $—, $—, $—, $141,491,185, $—, $—, $—, $— and $—) | — | 141,624,109 | — | — | — | — | — | |||||||||||||||||||||
| Equity swaps at Value (Proceeds Received $—, $662,923, $—, $—, $— $—, $—, $—, $—, $—, and $—) | — | — | — | — | — | — | — | |||||||||||||||||||||
| Due to Broker | — | — | — | — | — | — | — | |||||||||||||||||||||
| Advisory Payable | 59,015 | 188,854 | 6,761 | 3,831 | 3,233 | — | — | |||||||||||||||||||||
| Payable for Securities Purchased | — | 4,935,397 | — | — | — | — | — | |||||||||||||||||||||
| Capital Shares Payable | — | — | — | — | — | — | — | |||||||||||||||||||||
| Interest Payable | — | 81,357 | — | — | — | — | — | |||||||||||||||||||||
| Dividend Payable | — | 31,616 | — | — | — | — | — | |||||||||||||||||||||
| Distributions Payable | — | — | — | — | — | 1,367 | — | |||||||||||||||||||||
| Trustee Fees Payable | 3,325 | 2,800 | 1,377 | 1,377 | 1,377 | — | 1,214 | |||||||||||||||||||||
| Accrued Expenses | 31,865 | 63,693 | 29,440 | 29,337 | 31,476 | 31,183 | 9,282 | |||||||||||||||||||||
| Total Liabilities | 94,205 | 146,927,826 | 37,578 | 34,883 | 36,086 | 32,550 | 12,043 | |||||||||||||||||||||
| NET ASSETS | 61,378,524 | 154,403,326 | 14,083,584 | 11,158,959 | 15,113,399 | 1,840,607 | 5,221,980 | |||||||||||||||||||||
| COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||||||
| Capital Stock at Zero Par Value | 65,351,506 | 162,704,139 | 15,910,578 | 14,684,156 | 15,026,040 | 1,889,596 | 4,521,107 | |||||||||||||||||||||
| Undistributed Net Investment Gain (Loss) | (9,447 | ) | (1,502,749 | ) | (6,042 | ) | (6,690 | ) | 28,731 | (2,499 | ) | (1,901 | ) | |||||||||||||||
| Accumulated Net Investment Gain (Loss) on Investments | 99,906 | (6,665,140 | ) | (666,281 | ) | (1,207,247 | ) | (5,665 | ) | (53,985 | ) | 518,752 | ||||||||||||||||
| Unrealized Appreciation (Depreciation) on Investments | (4,063,441 | ) | (132,924 | ) | (1,154,671 | ) | (2,311,260 | ) | 64,293 | 7,495 | 184,022 | |||||||||||||||||
| NET ASSETS | 61,378,524 | 154,403,326 | 14,083,584 | 11,158,959 | 15,113,399 | 1,840,607 | 5,221,980 | |||||||||||||||||||||
| SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||||||
| Shares Outstanding (Unlimited Shares Authorized) | 1,300,000 | 6,175,000 | 600,000 | 550,000 | 600,000 | 75,000 | 175,000 | |||||||||||||||||||||
| Net Asset Value (NAV) Per Share | 47.21 | 25.00 | 23.47 | 20.29 | 25.19 | 24.54 | 29.84 | |||||||||||||||||||||
See accompanying Notes to Financial Statements.
67
ADVISORSHARES TRUST
Statements of Operations
For the Six Months Ended December 31, 2011 (Unaudited)
| | | | | ||||||||||||
| Dent Tactical ETF | Accuvest Global Long Short ETF(1) | Cambria Global Tactical ETF | WCM/ BNYMellon Focused Growth ADR ETF | |||||||||||||
| INVESTMENT INCOME | ||||||||||||||||
| Dividend Income (net of foreign taxes withheld $—, $—, $—, $2,781, $—, $—, $35, $10,110, $—, $— and $—) | $ | 17,259 | 4,988 | 1,654,517 | 31,546 | |||||||||||
| Interest Income | 258 | 2 | 3,044 | 12 | ||||||||||||
| Total Investment Income | 17,517 | 4,990 | 1,657,561 | 31,558 | ||||||||||||
| EXPENSES | ||||||||||||||||
| Advisory Fees | 72,616 | 33,672 | 762,889 | 59,355 | ||||||||||||
| Professional Fees | 27,979 | 27,902 | 27,902 | 27,902 | ||||||||||||
| Report to Shareholders | 15,123 | 15,082 | 20,109 | 15,083 | ||||||||||||
| Accounting & Administration Fees | 3,058 | 999 | 59 | 1,541 | ||||||||||||
| Pricing Fees | 3,025 | 3,016 | 3,016 | 3,016 | ||||||||||||
| Exchange Listing Fees | 2,521 | 2,513 | 5,971 | 2,514 | ||||||||||||
| Insurance Fees | 2,304 | 3,470 | 3,520 | 3,470 | ||||||||||||
| Custody Fees | 1,329 | 942 | 8,871 | 1,043 | ||||||||||||
| Transfer Agent Fees | 573 | 187 | 6,357 | 289 | ||||||||||||
| Trustee Fees | 510 | 754 | 2,011 | 754 | ||||||||||||
| Interest on Securities Sold Short | — | 41,155 | — | — | ||||||||||||
| Dividend Expense | — | — | — | — | ||||||||||||
| Offering Fees | — | 6,931 | 2,274 | 2,099 | ||||||||||||
| Licensing Fees | — | — | — | 677 | ||||||||||||
| Excise Tax | — | 3,113 | — | — | ||||||||||||
| Miscellaneous Fees | 1,628 | — | — | — | ||||||||||||
| Total Expenses | 130,666 | 139,736 | 842,979 | 117,743 | ||||||||||||
| Advisory Fees Waived/ Recoupment | (16,009 | ) | (33,672 | ) | (3,681 | ) | (59,355 | ) | ||||||||
| Expense Reimbursement | — | (27,495 | ) | — | (10,216 | ) | ||||||||||
| Net Expenses | 114,657 | 78,569 | 839,298 | 48,172 | ||||||||||||
| Net Investment Income (Loss) | (97,140 | ) | (73,579 | ) | 818,263 | (16,614 | ) | |||||||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||
| Net Realized Gain (Loss) on: | ||||||||||||||||
| Investments | (964,299 | ) | (609,943 | ) | (17,034,105 | ) | (78,951 | ) | ||||||||
| In-kind Redemptions | (21,578 | ) | (147,416 | ) | 837,518 | 403,259 | ||||||||||
| Swaps | — | 137,479 | — | — | ||||||||||||
| Short Sales | — | 414,101 | (18,007 | ) | — | |||||||||||
| Futures | — | (40,303 | ) | — | — | |||||||||||
| Distributions by other Investment Companies | — | — | 74,777 | 6 | ||||||||||||
| Net Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
| Investments | (128,907 | ) | (187,565 | ) | (852,364 | ) | (1,299,510 | ) | ||||||||
| Short Sales | — | 308,852 | — | — | ||||||||||||
| Swaps | — | 448,001 | — | — | ||||||||||||
| Futures | — | 13,824 | — | — | ||||||||||||
| Net Realized and Unrealized Gain (Loss) | (1,114,784 | ) | 337,030 | (16,992,181 | ) | (975,196 | ) | |||||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (1,211,924 | ) | 263,451 | (16,173,918 | ) | (991,810 | ) | ||||||||
| (1) | Formerly Mars Hill Global Relative Value ETF. |
| (2) | Represents the period October 5, 2011 (commencement of operations) to December 31, 2011. |
See accompanying Notes to Financial Statements.
68
ADVISORSHARES TRUST
Statements of Operations
For the Six Months Ended December 31, 2011 (Unaudited)
| | | | | | | | |||||||||||||||||||||
| Peritus High Yield ETF | Active Bear ETF | Madrona Domestic ETF | Madrona International ETF | Madrona Global Bond ETF | Meidell Tactical Advantage ETF | TrimTabs Float Shrink ETF(2) | ||||||||||||||||||||||
| INVESTMENT INCOME | ||||||||||||||||||||||||||||
| Dividend Income (net of $—, $—, $—, $2,781, $—, $—, $35, $10,110, $—, $— and $—) | — | — | 122,322 | 114,441 | — | 13,152 | 13,268 | |||||||||||||||||||||
| Interest Income | 2,545,851 | 3,309 | 35 | 36 | 327,268 | — | — | |||||||||||||||||||||
| Total Investment Income | 2,545,851 | 3,309 | 122,357 | 114,477 | 327,268 | 13,152 | 13,268 | |||||||||||||||||||||
| EXPENSES | ||||||||||||||||||||||||||||
| Advisory Fees | 298,745 | 741,326 | 56,833 | 49,838 | 37,013 | 13,911 | 12,668 | |||||||||||||||||||||
| Professional Fees | 27,902 | 27,902 | 27,902 | 27,902 | 27,902 | 27,902 | 13,881 | |||||||||||||||||||||
| Report to Shareholders | 4,022 | 4,022 | 1,005 | 1,005 | 4,022 | 4,022 | 652 | |||||||||||||||||||||
| Accounting & Administration Fees | 10,864 | 19,769 | — | — | — | — | 513 | |||||||||||||||||||||
| Pricing Fees | 7,540 | 3,016 | 3,016 | 3,016 | 3,016 | 3,016 | 1,447 | |||||||||||||||||||||
| Exchange Listing Fees | 3,770 | 5,971 | 5,027 | 5,027 | 5,027 | 5,971 | 2,863 | |||||||||||||||||||||
| Insurance Fees | 1,509 | 3,520 | 1,041 | 1,041 | 1,041 | 1,487 | 1,688 | |||||||||||||||||||||
| Custody Fees | 2,791 | 6,220 | 3,046 | 2,981 | 3,069 | 2,600 | 1,302 | |||||||||||||||||||||
| Transfer Agent Fees | 2,037 | 3,707 | 532 | 467 | 555 | 87 | 96 | |||||||||||||||||||||
| Trustee Fees | 2,011 | 2,011 | 2,011 | 2,011 | 2,011 | 2,011 | 1,303 | |||||||||||||||||||||
| Interest on Securities Sold Short | — | 415,080 | — | — | — | — | — | |||||||||||||||||||||
| Dividend Expense | — | 239,791 | — | — | — | — | — | |||||||||||||||||||||
| Offering Fees | 5,027 | 18,472 | 1,826 | 1,826 | 1,826 | 822 | — | |||||||||||||||||||||
| Licensing Fees | — | — | — | — | — | — | — | |||||||||||||||||||||
| Excise Tax | — | — | — | — | — | — | — | |||||||||||||||||||||
| Miscellaneous Fees | — | — | — | — | — | — | — | |||||||||||||||||||||
| Total Expenses | 366,218 | 1,490,807 | 102,239 | 95,114 | 85,482 | 61,829 | 36,413 | |||||||||||||||||||||
| Advisory Fees Waived/ Recoupment | 424 | 15,251 | (13,265 | ) | (17,069 | ) | (14,780 | ) | (13,911 | ) | (12,668 | ) | ||||||||||||||||
| Expense Reimbursement | — | — | — | — | — | (32,268 | ) | (11,077 | ) | |||||||||||||||||||
| Net Expenses | 366,642 | 1,506,058 | 88,974 | 78,045 | 70,702 | 15,650 | 12,668 | |||||||||||||||||||||
| Net Investment Income (Loss) | 2,179,209 | (1,502,749 | ) | 33,383 | 36,432 | 256,566 | (2,498 | ) | 600 | |||||||||||||||||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||||||||||||||
| Net Realized Gain (Loss) on: | ||||||||||||||||||||||||||||
| Investments | 114,939 | — | (563,915 | ) | (1,167,553 | ) | (5,665 | ) | (51,147 | ) | 334,644 | |||||||||||||||||
| In-kind Redemptions | — | — | (102,366 | ) | (39,163 | ) | — | 1,156 | 184,108 | |||||||||||||||||||
| Swaps | — | — | — | — | — | — | — | |||||||||||||||||||||
| Short Sales | — | (2,900,060 | ) | — | — | — | — | — | ||||||||||||||||||||
| Futures | — | — | — | — | — | — | — | |||||||||||||||||||||
| Distributions by other Investment Companies | 33 | — | — | — | — | — | — | |||||||||||||||||||||
| Net Unrealized Appreciation (Depreciation) on Investments | ||||||||||||||||||||||||||||
| Investments | (3,637,890 | ) | (516,765 | ) | (1,261,076 | ) | (2,414,888 | ) | 64,415 | (1,908 | ) | 184,022 | ||||||||||||||||
| Short Sales | — | — | — | — | — | — | — | |||||||||||||||||||||
| Swaps | — | — | — | — | — | — | — | |||||||||||||||||||||
| Futures | — | — | — | — | — | — | — | |||||||||||||||||||||
| Net Realized and Unrealized Gain (Loss) | (3,522,918 | ) | (3,416,825 | ) | (1,927,357 | ) | (3,621,604 | ) | 58,750 | (51,899 | ) | 702,774 | ||||||||||||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | (1,343,709 | ) | (4,919,574 | ) | (1,893,974 | ) | (3,585,172 | ) | 315,316 | (54,397 | ) | 703,374 | ||||||||||||||||
See accompanying Notes to Financial Statements.
69
ADVISORSHARES TRUST
Statements of Changes in Net Assets
| | | | | ||||||||||||
| Dent Tactical ETF | Accuvest Global Long Short ETF(1) | |||||||||||||||
| Six months ended December 31, 2011 (Unaudited) | Year ended June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period July 9, 2010* to June 30, 2011 | |||||||||||||
| INCREASE (DECREASE) IN NET ASSETS OPERATIONS | ||||||||||||||||
| Net Investment Income (Loss) | $ | (97,140 | ) | (224,436 | ) | (73,579 | ) | (856,178 | ) | |||||||
| Net Realized Gain (Loss) on Investment Transactions | (985,877 | ) | 2,245,846 | (246,082 | ) | (2,721,092 | ) | |||||||||
| Net Unrealized Appreciation (Depreciation) on Investment Transactions | (128,907 | ) | 164,517 | 583,112 | (831,988 | ) | ||||||||||
| Net Increase (Decrease) In Net Assets Resulting From Operations | (1,211,924 | ) | 2,185,927 | 263,451 | (4,409,258 | ) | ||||||||||
| DISTRIBUTION TO SHAREHOLDERS | ||||||||||||||||
| Net Investment Income | — | (32,743 | ) | — | — | |||||||||||
| Net Gain on Investment Transactions | — | — | (46,188 | ) | — | |||||||||||
| Total Distributions | — | (32,743 | ) | (46,188 | ) | — | ||||||||||
| CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
| Proceeds from Shares Issued | 1,248,356 | 5,107,681 | 1,082,243 | 53,672,974 | ||||||||||||
| Value of Shares Redeemed | (3,898,301 | ) | (12,068,621 | ) | (7,602,712 | ) | (39,878,316 | ) | ||||||||
| Net Increase (Decrease) From Capital Stock Transactions | (2,649,945 | ) | (6,960,940 | ) | (6,520,469 | ) | 13,794,658 | |||||||||
| Net Increase (Decrease) in Net Assets | (3,861,869 | ) | (4,807,756 | ) | (6,303,206 | ) | 9,385,400 | |||||||||
| Net Assets: | ||||||||||||||||
| Beginning of Period | 17,012,526 | 21,820,282 | 9,385,400 | — | ||||||||||||
| End of Period | $ | 13,150,657 | 17,012,526 | 3,082,194 | 9,385,400 | |||||||||||
| Undistributed Net Investment Income (Loss) | $ | (307,780 | ) | (210,640 | ) | (73,579 | ) | — | ||||||||
| Changes in Shares Outstanding | ||||||||||||||||
| Shares Outstanding, Beginning of Period | 830,000 | 1,160,000 | 450,000 | — | ||||||||||||
| Shares Sold | 65,000 | 260,000 | 50,000 | 2,150,000 | ||||||||||||
| Shares Redeemed | (195,000 | ) | (590,000 | ) | (350,000 | ) | (1,700,000 | ) | ||||||||
| End of Period | 700,000 | 830,000 | 150,000 | 450,000 | ||||||||||||
| * | Commencement of operations. |
| (1) | Formerly Mars Hill Global Relative Value ETF. |
See accompanying Notes to Financial Statements.
70
ADVISORSHARES TRUST
Statements of Changes in Net Assets
| | | | | | | ||||||||||||||||||
| Cambria Global Tactical ETF | WCM/BNYMellon Focused Growth ADR ETF | Peritus High Yield ETF | ||||||||||||||||||||||
| Six months ended December 31, 2011 (Unaudited) | For the period October 26, 2010* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period July 21, 2010* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period December 1, 2010* to June 30, 2011 | |||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS OPERATIONS | ||||||||||||||||||||||||
| Net Investment Income (Loss) | 818,263 | 1,038,919 | (16,614 | ) | 34,265 | 2,179,209 | 1,097,603 | |||||||||||||||||
| Net Realized Gain (Loss) on Investment Transactions | (16,139,817 | ) | (1,305,691 | ) | 324,314 | 191,372 | 114,972 | 597,832 | ||||||||||||||||
| Net Unrealized Appreciation (Depreciation) on Investment Transactions | (852,364 | ) | 2,246,155 | (1,299,510 | ) | 972,380 | (3,637,890 | ) | (425,551 | ) | ||||||||||||||
| Net Increase (Decrease) In Net Assets Resulting From Operations | (16,173,918 | ) | 1,979,383 | (991,810 | ) | 1,198,017 | (1,343,709 | ) | 1,269,884 | |||||||||||||||
| DISTRIBUTION TO SHAREHOLDERS | ||||||||||||||||||||||||
| Net Investment Income | (1,214,084 | ) | (577,538 | ) | (16,396 | ) | (24,332 | ) | (2,283,509 | ) | (1,009,110 | ) | ||||||||||||
| Net Gain on Investment Transactions | — | — | (27,533 | ) | — | (612,898 | ) | — | ||||||||||||||||
| Total Distributions | (1,214,084 | ) | (577,538 | ) | (43,929 | ) | (24,332 | ) | (2,896,407 | ) | (1,009,110 | ) | ||||||||||||
| CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||
| Proceeds from Shares Issued | 9,060,733 | 244,207,308 | 3,633,630 | 9,578,612 | 21,768,082 | 46,184,231 | ||||||||||||||||||
| Value of Shares Redeemed | (29,789,208 | ) | (66,772,581 | ) | (4,991,520 | ) | (2,101,694 | ) | — | (2,594,447 | ) | |||||||||||||
| Net Increase (Decrease) From Capital Stock Transactions | (20,728,475 | ) | 177,434,727 | (1,357,890 | ) | 7,476,918 | 21,768,082 | 43,589,784 | ||||||||||||||||
| Net Increase (Decrease) in Net Assets | (38,116,477 | ) | 178,836,572 | (2,393,629 | ) | 8,650,603 | 17,527,966 | 43,850,558 | ||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||
| Beginning of Period | 178,836,572 | — | 8,650,603 | — | 43,850,558 | — | ||||||||||||||||||
| End of Period | 140,720,095 | 178,836,572 | 6,256,974 | 8,650,603 | 61,378,524 | 43,850,558 | ||||||||||||||||||
| Net Investment Income (Loss) | 76,462 | 472,283 | (18,608 | ) | 14,402 | (9,447 | ) | 94,853 | ||||||||||||||||
| Changes in Shares Outstanding | ||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 6,900,000 | — | 275,000 | — | 850,000 | — | ||||||||||||||||||
| Shares Sold | 350,000 | 9,450,000 | 125,000 | 350,000 | 450,000 | 900,000 | ||||||||||||||||||
| Shares Redeemed | (1,250,000 | ) | (2,550,000 | ) | (175,000 | ) | (75,000 | ) | — | (50,000 | ) | |||||||||||||
| End of Period | 6,000,000 | 6,900,000 | 225,000 | 275,000 | 1,300,000 | 850,000 | ||||||||||||||||||
| * | Commencement of operations. |
See accompanying Notes to Financial Statements.
71
ADVISORSHARES TRUST
Statements of Changes in Net Assets
| | | | | ||||||||||||
| Active Bear ETF | Madrona Domestic ETF | |||||||||||||||
| Six months ended December 31, 2011 (Unaudited) | For the period January 27, 2011* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period June 21, 2011* to June 30, 2011 | |||||||||||||
| INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
| OPERATIONS | ||||||||||||||||
| Net Investment Income (Loss) | $ | (1,502,749 | ) | (509,195 | ) | 33,383 | 157 | |||||||||
| Net Realized Gain (Loss) on Investment Transactions | (2,900,060 | ) | (3,765,080 | ) | (666,281 | ) | — | |||||||||
| Net Unrealized Appreciation (Depreciation) on Investment Transactions | (516,765 | ) | 383,841 | (1,261,076 | ) | 106,405 | ||||||||||
| Net Increase (Decrease) In Net Assets Resulting From Operations | (4,919,574 | ) | (3,890,434 | ) | (1,893,974 | ) | 106,562 | |||||||||
| DISTRIBUTION TO SHAREHOLDERS | ||||||||||||||||
| Net Investment Income | — | — | (39,582 | ) | — | |||||||||||
| Net Gain on Investment Transactions | — | — | — | — | ||||||||||||
| Total Distributions | — | — | (39,582 | ) | — | |||||||||||
| CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
| Proceeds from Shares Issued | 152,089,103 | 64,290,026 | 14,560,337 | 2,500,000 | ||||||||||||
| Value of Shares Redeemed | (43,155,537 | ) | (10,010,258 | ) | (1,149,759 | ) | — | |||||||||
| Net Increase (Decrease) From Capital Stock Transactions | 108,933,566 | 54,279,768 | 13,410,578 | 2,500,000 | ||||||||||||
| Net Increase (Decrease) in Net Assets | 104,013,992 | 50,389,334 | 11,477,022 | 2,606,562 | ||||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of Period | 50,389,334 | — | 2,606,562 | — | ||||||||||||
| End of Period | $ | 154,403,326 | 50,389,334 | 14,083,584 | 2,606,562 | |||||||||||
| Undistributed Net Investment Income (Loss) | $ | (1,502,749 | ) | — | (6,042 | ) | 157 | |||||||||
| Changes in Shares Outstanding | ||||||||||||||||
| Shares Outstanding, Beginning of Period | 2,225,000 | — | 100,000 | — | ||||||||||||
| Shares Sold | 5,575,000 | 2,650,000 | 550,000 | 100,000 | ||||||||||||
| Shares Redeemed | (1,625,000 | ) | (425,000 | ) | (50,000 | ) | — | |||||||||
| End of Period | 6,175,000 | 2,225,000 | 600,000 | 100,000 | ||||||||||||
| * | Commencement of operations. |
See accompanying Notes to Financial Statements.
72
ADVISORSHARES TRUST
Statements of Changes in Net Assets
| | | | | | | | |||||||||||||||||||||||||
| Madrona International ETF | Madrona Global Bond ETF | Meidell Tactical Advantage ETF | TrimTabs Float Shrink ETF | |||||||||||||||||||||||||||||
| Six months ended December 31, 2011 (Unaudited) | For the period June 21, 2011* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period June 21, 2011* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period June 23, 2011* to June 30, 2011 | For the period October 5, 2011* to December 31, 2011 (Unaudited) | ||||||||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||||||||||||
| Net Investment Income (Loss) | 36,432 | 790 | 256,566 | 1,149 | (2,498 | ) | 546 | 600 | ||||||||||||||||||||||||
| Net Realized Gain (Loss) on Investment Transactions | (1,206,716 | ) | 12,669 | (5,665 | ) | — | (49,991 | ) | (3,994 | ) | 518,752 | |||||||||||||||||||||
| Net Unrealized Appreciation (Depreciation) on Investment Transactions | (2,414,888 | ) | 103,628 | 64,415 | (122 | ) | (1,908 | ) | 9,403 | 184,022 | ||||||||||||||||||||||
| Net Increase (Decrease) In Net Assets Resulting From Operations | (3,585,172 | ) | 117,087 | 315,316 | 1,027 | (54,397 | ) | 5,955 | 703,374 | |||||||||||||||||||||||
| DISTRIBUTION TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
| Net Investment Income | (43,912 | ) | — | (228,984 | ) | — | (1,367 | ) | — | (2,501 | ) | |||||||||||||||||||||
| Net Gain on Investment Transactions | (13,200 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
| Total Distributions | (57,112 | ) | — | (228,984 | ) | — | (1,367 | ) | — | (2,501 | ) | |||||||||||||||||||||
| CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||||||||||
| Proceeds from Shares Issued | 13,237,505 | 2,500,000 | 12,526,040 | 2,500,000 | — | 2,500,000 | 7,405,182 | |||||||||||||||||||||||||
| Value of Shares Redeemed | (1,053,349 | ) | — | — | — | (609,584 | ) | — | (2,884,075 | ) | ||||||||||||||||||||||
| Net Increase (Decrease) From Capital Stock Transactions | 12,184,156 | 2,500,000 | 12,526,040 | 2,500,000 | (609,584 | ) | 2,500,000 | 4,521,107 | ||||||||||||||||||||||||
| Net Increase (Decrease) in Net Assets | 8,541,872 | 2,617,087 | 12,612,372 | 2,501,027 | (665,348 | ) | 2,505,955 | 5,221,980 | ||||||||||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||||||||||
| Beginning of Period | 2,617,087 | — | 2,501,027 | — | 2,505,955 | — | — | |||||||||||||||||||||||||
| End of Period | 11,158,959 | 2,617,087 | 15,113,399 | 2,501,027 | 1,840,607 | 2,505,955 | 5,221,980 | |||||||||||||||||||||||||
| Net Investment Income (Loss) | (6,690 | ) | 790 | 28,731 | 1,149 | (2,499 | ) | 1,366 | (1,901 | ) | ||||||||||||||||||||||
| Changes in Shares Outstanding | ||||||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 100,000 | — | 100,000 | — | 100,000 | — | — | |||||||||||||||||||||||||
| Shares Sold | 500,000 | 100,000 | 500,000 | 100,000 | — | 100,000 | 275,000 | |||||||||||||||||||||||||
| Shares Redeemed | (50,000 | ) | — | — | — | (25,000 | ) | — | (100,000 | ) | ||||||||||||||||||||||
| End of Period | 550,000 | 100,000 | 600,000 | 100,000 | 75,000 | 100,000 | 175,000 | |||||||||||||||||||||||||
| * | Commencement of operations. |
See accompanying Notes to Financial Statements.
73
ADVISORSHARES TRUST
Statements of Cash Flows
For the Six Months Ended December 31, 2011 (Unaudited)
| | | ||||||
| Accuvest Global Long Short ETF(1) | Active Bear ETF | |||||||
| CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES: | ||||||||
| Interest received | $ | 4,990 | 2,555 | |||||
| Operating expenses paid | (28,317 | ) | (715,231 | ) | ||||
| Net purchases of short-term investments | (109,798 | ) | (67,094,163 | ) | ||||
| Realized gain on swaps contracts | 137,479 | — | ||||||
| Realized loss on futures contracts | (40,303 | ) | — | |||||
| Net change in unrealized appreciation on futures contracts | 13,824 | — | ||||||
| Purchases of long-term investments | (13,335,121 | ) | — | |||||
| Proceeds from disposition of long-term investments | 19,228,613 | — | ||||||
| Increase in receivables for securities sold | — | (8,376,555 | ) | |||||
| Increase in payables for securities purchased | — | 4,433,262 | ||||||
| Change in payable to broker – variation margin | (13,824 | ) | — | |||||
| Net increase (decrease) in short sales | (4,365,091 | ) | 94,086,935 | |||||
| Increase in distributions payable | 46,188 | — | ||||||
| Dividend Paid | 32,967 | (236,732 | ) | |||||
| Interest Paid | (41,155 | ) | (374,265 | ) | ||||
| Net Cash Provided By Operating Activities | 1,530,452 | 21,725,806 | ||||||
| CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES: | ||||||||
| Cash distributions paid on Common Stock | (46,188 | ) | — | |||||
| Proceeds from sale of shares | (6,520,469 | ) | 111,788,367 | |||||
| Deposits with brokers for swap contracts, futures contracts and short sales | 5,314,130 | (94,532,644 | ) | |||||
| Offering costs paid | 6,931 | 18,472 | ||||||
| Net Cash Flows Used By Financing Activities | (1,245,596 | ) | 17,274,195 | |||||
| NET INCREASE IN CASH | 284,856 | 39,000,001 | ||||||
| Cash, Beginning of period | 155,882 | 21,244,146 | ||||||
| Cash, End of Period | $ | 440,738 | 60,244,147 | |||||
| RECONCILIATION OF INCREASE IN NET ASSETS FROM OPERATIONS TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES: | ||||||||
| Increase (Decrease) in Net Assets From Operations | $ | 263,451 | (4,919,574 | ) | ||||
| (Increase) Decrease in investments, at value | (243,036 | ) | 30,409,597 | |||||
| Increase in payable for securities purchased | — | 4,433,262 | ||||||
| Increase in receivable for securities sold | — | (8,376,555 | ) | |||||
| Increase in interest receivable and payable | — | (754 | ) | |||||
| Increase in proceeds for short sales | 1,435,609 | — | ||||||
| (Increase) Decrease in prepaid expenses | 14,292 | (29,061 | ) | |||||
| Increase to receivable to broker – variation margin | (13,824 | ) | — | |||||
| Increase in interest payable | — | 40,815 | ||||||
| Increase in dividend payable | 32,967 | 3,059 | ||||||
| Increase in distribution payable | 46,188 | — | ||||||
| Increase (Decrease) in accrued expenses | (5,195 | ) | 165,017 | |||||
| Total Adjustments | 1,267,001 | 26,645,380 | ||||||
| Net Cash Flows Provided By Operating Activities | $ | 1,530,452 | 21,725,806 | |||||
| (1) | Formerly Mars Hill Global Relative Value ETF. |
See accompanying Notes to Financial Statements.
74
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ADVISORSHARES TRUST
Financial Highlights
| | | | | | |||||||||||||||
| Dent Tactical ETF | Accuvest Global Long Short ETF(6) | |||||||||||||||||||
| Six months ended December 31, 2011 (Unaudited) | Year ended June 30, 2011 | For the period September 16, 2009* to June 30, 2010 | Six months ended December 31, 2011 (Unaudited) | For the period July 9, 2010* to June 30, 2011 | ||||||||||||||||
| Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $ | 20.50 | $ | 18.81 | $ | 20.00 | $ | 20.86 | $ | 25.00 | ||||||||||
| Investment Operations | ||||||||||||||||||||
| Net Investment Income (Loss)(1) | (0.13 | ) | (0.21 | ) | 0.08 | (0.32 | ) | (0.67 | ) | |||||||||||
| Net Realized and Unrealized Gain (Loss) on Investments | (1.58 | ) | 1.93 | (1.06 | ) | 0.32 | (3.47 | ) | ||||||||||||
| Distributions of Net Realized Gains by other investment companies | — | — | — | — | — | |||||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Investment Operations | (1.71 | ) | 1.72 | (0.98 | ) | (0.00 | ) | (4.14 | ) | |||||||||||
| Distribution from Net Investment Income | — | (0.03 | ) | (0.21 | ) | — | — | |||||||||||||
| Distribution from Realized Capital Gains | — | — | — | (0.31 | ) | — | ||||||||||||||
| Total Distributions | — | (0.03 | ) | (0.21 | ) | (0.31 | ) | — | ||||||||||||
| Net Asset Value, End of Period | $ | 18.79 | $ | 20.50 | $ | 18.81 | $ | 20.55 | $ | 20.86 | ||||||||||
| Market Value, End of Period | $ | 18.78 | $ | 20.48 | $ | 18.80 | $ | 20.56 | $ | 20.86 | ||||||||||
| Total Return | ||||||||||||||||||||
| Total Investment Return Based on Net Asset Value(2) | (8.34 | )% | 9.14 | % | (4.95 | )% | (0.02 | )% | (16.56 | )% | ||||||||||
| Total Investment Return Based on Market(2) | (8.30 | )% | 9.10 | % | (4.92 | )% | (1.44 | )% | (16.56 | )% | ||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||
| Net Assets, End of Period (000’s omitted) | $ | 13,151 | $ | 17,013 | $ | 21,820 | $ | 3,082 | $ | 9,385 | ||||||||||
| Ratio to Average Net Assets of: | ||||||||||||||||||||
| Expenses, net of expense waivers and reimbursements(3) | 1.50 | % | 1.49 | % | 1.50 | % | 3.15 | % | 3.11 | % | ||||||||||
| Expenses, prior to expense waivers and reimbursements(3) | 1.71 | % | 2.26 | % | 2.45 | % | 5.60 | % | 3.33 | % | ||||||||||
| Net Investment Income (Loss)(3) | (1.27 | )% | (1.05 | )% | 0.51 | % | (2.95 | )% | (2.82 | )% | ||||||||||
| Portfolio Turnover Rate(4) | 480 | % | 456 | % | 501 | % | 232 | % | 751 | % | ||||||||||
| * | Commencement of operations. |
| (1) | Based on average shares outstanding. |
| (2) | Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. |
| (3) | Ratios for periods of less than one year have been annualized. |
| (4) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
| (5) | Less than $0.005. |
| (6) | Formerly Mars Hill Global Relative Value ETF. |
See accompanying Notes to Financial Statements.
76
ADVISORSHARES TRUST
Financial Highlights
| | | | | | | ||||||||||||||||||
| Cambria Global Tactical ETF | WCM/BNYMellon Focused Growth ADR ETF | Peritus High Yield ETF | ||||||||||||||||||||||
| Six months ended December 31, 2011 (Unaudited) | For the period October 26, 2010* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period July 21, 2010* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period December 1, 2010* to June 30, 2011 | |||||||||||||||||||
| Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $ | 25.92 | $ | 25.10 | $ | 31.46 | $ | 25.00 | $ | 51.59 | $ | 50.00 | ||||||||||||
| Investment Operations | ||||||||||||||||||||||||
| Net Investment Income (Loss)(1) | 0.12 | 0.25 | (0.06 | ) | 0.15 | 1.95 | 2.25 | |||||||||||||||||
| Net Realized and Unrealized Gain (Loss) on Investments | (2.40 | ) | 0.79 | (3.40 | ) | 6.40 | (3.88 | ) | 1.30 | |||||||||||||||
| Distributions of Net Realized Gains by other investment companies | 0.01 | — | — (5) | — | — (5) | — | ||||||||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Investment Operations | (2.27 | ) | 1.04 | (3.46 | ) | 6.55 | (1.93 | ) | 3.55 | |||||||||||||||
| Distribution from Net Investment Income | (0.20 | ) | (0.22 | ) | (0.07 | ) | (0.09 | ) | (1.98 | ) | (1.96 | ) | ||||||||||||
| Distribution from Realized Capital Gains | — | — | (0.12 | ) | — | (0.47 | ) | — | ||||||||||||||||
| Total Distributions | (0.20 | ) | (0.22 | ) | (0.19 | ) | (0.09 | ) | (2.45 | ) | (1.96 | ) | ||||||||||||
| Net Asset Value, End of Period | $ | 23.45 | $ | 25.92 | $ | 27.81 | $ | 31.46 | $ | 47.21 | $ | 51.59 | ||||||||||||
| Market Value, End of Period | $ | 23.39 | $ | 25.93 | $ | 27.94 | $ | 31.58 | $ | 47.65 | $ | 51.87 | ||||||||||||
| Total Return | ||||||||||||||||||||||||
| Total Investment Return Based on Net Asset Value(2) | (8.77 | )% | 4.17 | % | (10.98 | )% | 26.21 | % | (3.72 | )% | 7.16 | % | ||||||||||||
| Total Investment Return Based on Market(2) | (9.80 | )% | 4.20 | % | (10.91 | )% | 26.69 | % | (3.38 | )% | 7.73 | % | ||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||
| Net Assets, End of Period (000’s omitted) | $ | 140,720 | $ | 178,837 | $ | 6,257 | $ | 8,651 | $ | 61,379 | $ | 43,851 | ||||||||||||
| Ratio to Average Net Assets of: | ||||||||||||||||||||||||
| Expenses, net of expense waivers and reimbursements(3) | 0.99 | % | 1.02 | % | 1.25 | % | 1.25 | % | 1.35 | % | 1.34 | % | ||||||||||||
| Expenses, prior to expense waivers and reimbursements(3) | 0.99 | % | 1.04 | % | 3.06 | % | 3.04 | % | 1.35 | % | 1.57 | % | ||||||||||||
| Net Investment Income(3) | 0.97 | % | 1.45 | % | (0.43 | )% | 0.52 | % | 8.02 | % | 7.47 | % | ||||||||||||
| Portfolio Turnover Rate(4) | 291 | % | 187 | % | 4 | % | 34 | % | 28 | % | 81 | % | ||||||||||||
See accompanying Notes to Financial Statements.
77
ADVISORSHARES TRUST
Financial Highlights
| | | | | ||||||||||||
| Active Bear ETF | Madrona Domestic ETF | |||||||||||||||
| Six months ended December 31, 2011 (Unaudited) | For the period January 27, 2011* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period June 21, 2011* to June 30, 2011 | |||||||||||||
| Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||
| Net Asset Value, Beginning of Period | $ | 22.65 | $ | 25.00 | $ | 26.07 | $ | 25.00 | ||||||||
| Investment Operations | ||||||||||||||||
| Net Investment Income (Loss)(1) | (0.39 | ) | (0.30 | ) | 0.06 | — | (5) | |||||||||
| Net Realized and Unrealized Gain (Loss) on Investments | 2.74 | (2.05 | ) | (2.59 | ) | 1.07 | ||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 2.35 | (2.35 | ) | (2.53 | ) | 1.07 | ||||||||||
| Distribution from Net Investment Income | — | — | (0.07 | ) | — | |||||||||||
| Distribution from Realized Capital Gains | — | — | — | — | ||||||||||||
| Total Distributions | — | — | (0.07 | ) | — | |||||||||||
| Net Asset Value, End of Period | $ | 25.00 | $ | 22.65 | $ | 23.47 | $ | 26.07 | ||||||||
| Market Value, End of Period | $ | 25.03 | $ | 22.65 | $ | 23.48 | $ | 26.07 | ||||||||
| Total Return | ||||||||||||||||
| Total Investment Return Based on Net Asset Value(2) | 10.38 | % | (9.40 | )% | (9.72 | )% | 4.28 | % | ||||||||
| Total Investment Return Based on Market(2) | 10.51 | % | (9.40 | )% | (9.68 | )% | 4.28 | % | ||||||||
| Ratios/Supplemental Data | ||||||||||||||||
| Net Assets, End of Period (000’s omitted) | $ | 154,403 | $ | 50,389 | $ | 14,084 | $ | 2,607 | ||||||||
| Ratio to Average Net Assets of: | ||||||||||||||||
| Expenses, net of expense waivers and reimbursements(3) | 3.05 | % | 3.07 | % | 1.25 | % | 1.25 | % | ||||||||
| Expenses, prior to expense waivers and reimbursements(3) | 3.02 | % | 3.16 | % | 1.43 | % | 10.96 | % | ||||||||
| Net Investment Income (Loss)(3) | (3.04 | )% | (3.07 | )% | 0.47 | % | 0.23 | % | ||||||||
| Portfolio Turnover Rate(4) | 517 | % | 635 | % | 20 | % | 0 | % | ||||||||
| * | Commencement of operations. |
| (1) | Based on average shares outstanding. |
| (2) | Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. |
| (3) | Ratios for periods of less than one year have been annualized. |
| (4) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
| (5) | Less than $0.005. |
See accompanying Notes to Financial Statements.
78
ADVISORSHARES TRUST
Financial Highlights
| | | | | | | | |||||||||||||||||||||
| Madrona International ETF | Madrona Global Bond ETF | Meidell Tactical Advantage ETF | TrimTabs Float Shrink ETF | |||||||||||||||||||||||||
| Six months ended December 31, 2011 (Unaudited) | For the period June 21, 2011* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period June 21, 2011* to June 30, 2011 | Six months ended December 31, 2011 (Unaudited) | For the period June 23, 2011* to June 30, 2011 | For the period October 5, 2011* to December 31, 2011 (Unaudited) | ||||||||||||||||||||||
| Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $ | 26.17 | $ | 25.00 | $ | 25.01 | $ | 25.00 | $ | 25.06 | $ | 25.00 | $ | 26.20 | ||||||||||||||
| Investment Operations | ||||||||||||||||||||||||||||
| Net Investment Income (Loss)(1) | 0.06 | 0.01 | 0.44 | 0.01 | (0.03 | ) | 0.01 | — | (5) | |||||||||||||||||||
| Net Realized and Unrealized Gain (Loss) on Investments | (5.84 | ) | 1.16 | 0.12 | — | (0.47 | ) | 0.05 | 3.65 | |||||||||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Investment Operations | (5.78 | ) | 1.17 | 0.56 | 0.01 | (0.50 | ) | 0.06 | 3.65 | |||||||||||||||||||
| Distribution from Net Investment Income | (0.08 | ) | — | (0.38 | ) | — | (0.02 | ) | — | (0.01 | ) | |||||||||||||||||
| Distribution from Realized Capital Gains | (0.02 | ) | — | — | — | — | — | — | ||||||||||||||||||||
| Total Distributions | (0.10 | ) | — | (0.38 | ) | — | (0.02 | ) | — | (0.01 | ) | |||||||||||||||||
| Net Asset Value, End of Period | $ | 20.29 | $ | 26.17 | $ | 25.19 | $ | 25.01 | $ | 24.54 | $ | 25.06 | $ | 29.84 | ||||||||||||||
| Market Value, End of Period | $ | 20.34 | $ | 26.18 | $ | 25.16 | $ | 25.02 | $ | 24.56 | $ | 25.07 | $ | 29.75 | ||||||||||||||
| Total Return | ||||||||||||||||||||||||||||
| Total Investment Return Based on Net Asset Value(2) | (22.07 | )% | 4.68 | % | 2.27 | % | 0.04 | % | (2.00 | )% | 0.24 | % | 13.95 | % | ||||||||||||||
| Total Investment Return Based on Market(2) | (21.91 | )% | 4.72 | % | 2.10 | % | 0.08 | % | (2.03 | )% | 0.28 | % | 13.60 | % | ||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||||||
| Net Assets, End of Period (000’s omitted) | $ | 11,159 | $ | 2,617 | $ | 15,113 | $ | 2,501 | $ | 1,841 | $ | 2,506 | $ | 5,222 | ||||||||||||||
| Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||
| Expenses, net of expense waivers and reimbursements(3) | 1.25 | % | 1.25 | % | 0.95 | % | 0.95 | % | 1.35 | % | 1.35 | % | 0.99 | % | ||||||||||||||
| Expenses, prior to expense waivers and reimbursements(3) | 1.52 | % | 10.99 | % | 1.16 | % | 11.08 | % | 5.34 | % | 13.70 | % | 2.84 | % | ||||||||||||||
| Net Investment Income(3) | 0.58 | % | 1.14 | % | 3.47 | % | 1.68 | % | (0.22 | )% | 1.00 | % | 0.05 | % | ||||||||||||||
| Portfolio Turnover Rate(4) | 42 | % | 19 | % | 14 | % | 0 | % | 266 | % | 5 | % | 117 | % | ||||||||||||||
See accompanying Notes to Financial Statements.
79
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
1. Organization
AdvisorShares Trust (the “Trust”) was organized as a Delaware statutory trust on July 30, 2007 and has authorized capital of unlimited shares. The Trust is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (the “Act”). The Trust is comprised of 11 active funds (the “Funds” or “ETFs” and individually, the “Fund” or “ETF”):
| | | ||||||
| Fund | Ticker | Commencement of Operations | ||||||
| DENT Tactical ETF | DENT | September 16, 2009 | ||||||
| Accuvest Global Long Short ETF (formerly Mars Hill Global Relative Value ETF) | AGLS | July 9, 2010 | ||||||
| Cambria Global Tactical ETF | GTAA | October 26, 2010 | ||||||
| WCM/BNY Mellon Focused Growth ADR ETF | AADR | July 21, 2010 | ||||||
| Peritus High Yield ETF | HYLD | December 1, 2010 | ||||||
| Active Bear ETF | HDGE | January 27, 2011 | ||||||
| Madrona Domestic ETF | FWDD | June 21, 2011 | ||||||
| Madrona International ETF | FWDI | June 21, 2011 | ||||||
| Madrona Global Bond ETF | FWDB | June 21, 2011 | ||||||
| Meidell Tactical Advantage ETF | MATH | June, 23, 2011 | ||||||
| TrimTabs Float Shrink ETF | TTFS | October 5, 2011 | ||||||
Effective December 1, 2011, the Mars Hill Global Relative Value ETF changed its name to Accuvest Global Long Short ETF. Additionally, as of December 1, 2011, Accuvest Global Advisors replaced Mars Hill Partners, LLC as sub-adviser to the Fund.
The DENT Tactical ETF seeks long term growth of capital by investing primarily in other exchange-traded funds (the “Underlying ETFs”).
Accuvest Global Long Short ETF seeks average annual returns in excess of the total return of the MSCI World Index by investing in both long and short positions in Underlying ETFs that offer diversified exposure to global regions. The Fund may also use derivatives tied to the broad market indices when establishing net long and net short exposure on top of the core long/short portfolio.
Cambria Global Tactical ETF seeks to preserve and grow capital by investing primarily in other Underlying ETFs that offer diversified exposure to global regions, countries, styles or sectors and exchange-traded products.
WCM/BNY Mellon Focused ADR ETF seeks long-term capital appreciation by investing primarily in other Underlying ETFs, American Depository Receipts (ADRs) included in the BNY Mellon Classic ADR Index, the Fund’s primary index, and swap contracts.
Peritus High Yield ETF seeks high current income by investing in a focused portfolio of high yield debt securities commonly referred to as “junk bonds”. The Fund does not have any portfolio maturity limitation and may invest in instruments with short-term, medium-term or long-term maturities.
80
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
1. Organization - (continued)
Active Bear ETF seeks capital appreciation through short sales of domestically traded equity securities. The portfolio management team implements a bottom-up, fundamental, research driven security selection process. In selecting short positions, the Fund seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition, the portfolio management team seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance.
Madrona Domestic ETF seeks to provide long-term capital appreciation above the capital appreciation of its benchmark, the S&P 500 Index by selecting a portfolio of up to 500 of the largest U.S. traded equity securities using a weighted allocation system based on consensus analyst estimates of the present value of future expected earnings relative to the share price of each security.
Madrona International ETF seeks to provide long-term capital appreciation above the capital appreciation of its international benchmarks, such as the MSCI EAFE Index, the Fund’s primary benchmark, and the BNY Mellon Classic ADR Index, the Fund’s secondary benchmark. The Fund seeks to achieve this objective by selecting a portfolio primarily composed of at least 250 of the largest American Depositary Receipts (ADRs) from among the largest issuers of Europe, Australasia and the Far East (EAFE) and Canada. It’s portfolio may also include ADRs that provide exposure to certain markets deemed to be emerging markets.
Madrona Global Bond ETF seeks investment results that exceed the price and yield performance of its benchmark, the Barclays Capital Aggregate Bond Index. FWDB is sub-advised by Madrona Funds, LLC (Portfolio Manager). The Portfolio Manager seeks to achieve this objective by selecting a diversified portfolio of fixed income exchange-traded products (ETPs), including but not limited to, exchange-traded notes (ETNs), exchange-traded currency trusts and exchange-traded commodity pools. FWDB invests in at least 12 distinct global bond classes that cover the entire global investable bond universe. The Portfolio Manager constructs FWDB’s portfolio using a weighted allocation system based on historic yield curve analysis and a mean reversion strategy.
Meidell Tactical Advantage ETF seeks to provide long-term capital appreciation and capital preservation. The Fund is considered a “fund-of-funds” that seeks to achieve this investment objective by managing a tactical strategy that has the ability to dynamically rebalance the Fund’s portfolio from as much as 100% equity assets to 100% fixed income assets or cash and cash equivalents depending on market trends. The Fund employs a long tactical strategy that seeks to minimize portfolio losses by rotating out of higher volatility assets and lower volatility assets depending on the Fund’s current view of risks in different asset classes.
TrimTabs Float Shrink ETF seeks to generate long-term returns in excess of the total return of the Russell 3000® Index, with less volatility than the Russell 3000® Index. The Fund is an actively managed exchange-traded fund that seeks to achieve its investment objective by primarily investing in the broad U.S. equity market, as represented by the Russell 3000® Index. The Fund seeks to achieve this goal by investing in stocks with liquidity and fundamental characteristics that are historically associated with superior long-term performance.
81
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
2. Summary of Significant Accounting Policies
These financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Investment Valuation
In computing each Fund’s NAV, the Fund’s securities holdings are valued based on their last readily available market price. Price information on listed securities, including Underlying ETFs, is taken from the exchange where the security is primarily traded. Securities regularly traded in an OTC market are valued at the latest quoted sales price on the primary exchange or national securities market on which such securities are traded. Securities not listed on an exchange or national securities market, or securities in which there was no last reported sales price, are valued at the most recent bid price. Other portfolio securities and assets for which market quotations are not readily available are valued based on fair value as determined in good faith by the Board of Trustees of the Trust.
Investment Transactions
Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using the identified cost method. Dividend income and distributions to shareholders are recognized on the ex-dividend date and expenses are recognized on the accrual basis.
Expenses
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
Equity Swaps
The DENT Tactical ETF, the Accuvest Global Long Short ETF and the Cambria Global Tactical ETF may invest in equity swaps to obtain exposure to the underlying referenced security, obtain leverage or enjoy the returns from ownership without actually owning equity. Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying security and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. Accordingly, the risk of loss with respect to equity swaps is normally limited to the net amount of payments that a Fund is contractually obligated to make. If the other party to an equity swap defaults, a Funds’ risk of loss consists of the net amount of payments that the Funds are contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile. To the extent that the Adviser or Sub-Adviser, as applicable, do not accurately analyze and predict future market trends, the values of assets or economic factors, the Funds may suffer a loss, which may be substantial. The swap markets in which many types of swap transactions are traded have grown substantially in recent years, with a large number of banks and investment banking firms acting both as principals and as agents. As a result, the markets for certain types of swaps have become relatively liquid. Periodic payments received or paid by the Funds are recorded as realized gains or losses.
82
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
2. Summary of Significant Accounting Policies - (continued)
Short Sales
The Accuvest Global Long Short ETF, the Cambria Global Tactical ETF and the Active Bear ETF may sell securities it does not own as a hedge against some of its long positions and/or in anticipation of a decline in the market value of that security (short sale). When the Funds make a short sale, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. The Funds may have to pay a fee to borrow the particular security and may be obligated to remit any interest or dividends received on such borrowed securities. Dividends declared on short positions open are recorded on the ex-date as an expense. A gain, limited to the price at which the Funds sold the security short, or a loss, unlimited in magnitude, will be recognized upon the termination of a short sale if the market price at termination is less than or greater than, respectively, the proceeds originally received. The Funds are also subject to the risk that it may be unable to reacquire a security to terminate a short position except at a price substantially in excess of the last quoted price.
The Funds are required to pledge cash or securities to the broker as collateral for the securities sold short. Collateral requirements are calculated daily based on the current market value of the short positions. Cash deposited with broker for collateral for securities sold short is recorded as an asset on the Statement of Assets and Liabilities and securities segregated as collateral are denoted in the Schedule of Investments. The Funds may receive or pay the net of the following amounts: (i) a portion of the income from the investment of cash collateral; (ii) the broker’s fee on the borrowed securities; and (iii) a financing charge for the difference in the market value of the short position and cash collateral deposited with the broker. This income or fee is calculated daily based upon the market value of each borrowed security and a variable rate that is dependent on the availability of the security. The net amounts of income or fees paid by Accuvest Global Long Short ETF and Active Bear ETF for the six months ended December 31, 2011 are $41,155 and $415,080, respectively, which are included as interest income in the Statement of Operations.
Deposits with brokers and segregated cash for securities sold short represent cash balances on deposit with the Funds’ prime brokers and custodian. The Funds are subject to credit risk should the prime brokers be unable to meet its obligations to the Funds.
83
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
2. Summary of Significant Accounting Policies - (continued)
Futures Contracts
Each Fund may invest in futures contracts (“futures”), may invest in futures in order to hedge its investments against fluctuations in value caused by changes in prevailing interest rates or market conditions. The Funds may invest in futures as a primary investment strategy. Investments in futures may increase or leverage exposure to a particular market risk, thereby increasing price volatility of derivative instruments a Fund holds. No monies are paid or received by a Fund upon the purchase or sale of a futures contract. Initially, a Fund will be required to deposit with the broker an amount of cash or cash equivalents, known as initial margin, based on the value of the contract. Subsequent payments, called variation margin, to and from the broker, will be made on a daily basis as the price of the underlying instruments fluctuates, making the long and short positions in the futures contract more or less valuable, a process known as ‘marking-to-the-market.’ Once a final determination of variation margin is made, additional cash is required to be paid by or released to a Fund, and a Fund will realize a loss or gain. The Funds may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying index. Use of long futures contracts subjects the Funds to risk of loss in excess of the amounts shown on the Statements of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects the Funds to unlimited risk of loss. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures contract; therefore, the Funds’ credit risk is limited to failure of the exchange or board of trade. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
Options
The Funds are authorized to write and purchase put and call options. When a Fund writes an option, an amount equal to the premium received by the Fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked to market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Fund enters into a closing transaction), the Fund realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received). The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. Written and purchased options are non-income producing investments.
Short-Term Investments
Each Fund may invest in high-quality short-term debt securities and money market instruments on an ongoing basis to maintain liquidity or pending selection of investments in accordance with its policies. These short-term debt securities and money market instruments include shares of other mutual funds, commercial paper, certificates of deposit, bankers’ acceptances, U.S. Government securities and repurchase agreements.
84
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
2. Summary of Significant Accounting Policies - (continued)
Money Market Investments
The Dent Tactical ETF invests a significant amount (33.8% as of December 31, 2011) in the Goldman Sachs Money Market Fund (“FSMXX”). FSMXX intends to invest in “Tier One” securities, including those issued or guaranteed by the U.S. Government, its agencies or instrumentalities, other high-quality U.S. money market securities, high-quality commercial paper and other short-term obligations of U.S. and foreign companies payable in U.S. dollars, and repurchase agreements relating to these securities.
Dividends and Distributions
Each Fund will generally pay out dividends to shareholders at least annually. Each Fund will distribute its net capital gains, if any, to shareholders annually. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S generally accepted accounting principles. Distributions are recorded on ex-dividend date.
Indemnifications
In the normal course of business, each Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Trust’s maximum exposure under these arrangements cannot be known; however, the Trust expects any risk of loss to be remote.
3. Investment Advisory Agreement and Other Agreements
Investment Advisory Agreement
Each Fund has entered into an Investment Advisory Agreement with AdvisorShares Investments, LLC (the “Advisor”). The Advisor acts as the Fund’s investment adviser pursuant to an advisory agreement with the Trust on behalf of each Fund. Pursuant to the Advisory Agreement, the Advisor has overall supervisory responsibility for the general management and investment of each Fund’s securities portfolio, and has ultimate responsibility (subject to oversight by the Trust’s Board of Trustees) for oversight of the Trust’s sub-advisers. For its services, each Fund pays the Advisor an annual management fee and such fees do not include breakpoints. From time to time, the Advisor may waive all or a portion of its fee.
85
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
3. Investment Advisory Agreement and Other Agreements - (continued)
The Advisor’s annual management fee for each Fund is as follows:
| | |||
| Fund: | Rate: | |||
| DENT Tactical ETF | 0.95 | % | ||
| Accuvest Global Long Short ETF | 1.35 | % | ||
| Cambria Global Tactical ETF | ||||
| $0 – $250,000,000 | 0.90 | % | ||
| $250,000,001 – $1,000,000,000 | 0.80 | % | ||
| $1,000,000,001 – $5,000,000,000 | 0.70 | % | ||
| $5,000,000,001 + | 0.60 | % | ||
| WCM/BNY Mellon Focused Growth ADR ETF | 0.75 | %* | ||
| Peritus High Yield ETF | 1.10 | % | ||
| Active Bear ETF | 1.50 | % | ||
| Madrona Domestic ETF | 0.80 | %** | ||
| Madrona International ETF | 0.80 | %** | ||
| Madrona Global Bond ETF | 0.50 | %** | ||
| Meidell Tactical Advantage ETF | 1.20 | %*** | ||
| TrimTabs Float Shrink ETF | 0.99 | % | ||
| * | Subject to minimum fee of $10,000 per month. |
| ** | Subject to minimum fee of $5,000 per month. |
| *** | Subject to minimum fee of $5,000 per month for months 7 – 12 and $10,000 thereafter. |
Sub-Advisory Agreements
Each Fund’s investment sub-advisor provides investment advice and management services to the Fund. AdvisorShares supervises the day-to-day investment and reinvestment of the assets in the Fund and is responsible for monitoring the Fund’s adherence to its investment mandate. Pursuant to an investment sub-advisory agreement (“Investment Sub-Advisory Agreement”) between the sub-advisor and the Advisor, the sub-advisor receives an annual fee equal to the average daily net assets of the Fund.
H.S. Dent Investment Management, LLC. serves as investment sub-advisor to DENT Tactical ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:
| | |||
| AUM Schedule | Rate | |||
| $0 – $100,000,000 | 0.40 | % | ||
| $100,000,001 – $250,000,000 | 0.45 | % | ||
| $250,000,001 – $500,000,000 | 0.50 | % | ||
| $500,000,001 – $1,000,000,000 | 0.55 | % | ||
| $1,000,000,001 + | 0.60 | % | ||
86
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
3. Investment Advisory Agreement and Other Agreements - (continued)
Accuvest Global Advisors serves as investment sub-advisor to Accuvest Global Long Short ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:
| | |||
| AUM Schedule | Rate | |||
| $0 – $100,000,000 | 0.90 | % | ||
| $100,000,001 – $500,000,000 | 0.95 | % | ||
| $500,000,001 + | 1.00 | % | ||
Cambria Investment Management, Inc. serves as investment sub-advisor to Cambria Global Tactical ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:
| | |||
| AUM Schedule | Rate | |||
| $0 – $250,000,000 | 0.45 | % | ||
| $250,000,001 – $1,000,000,000 | 0.40 | % | ||
| $100,000,001 – $5,000,000,000 | 0.35 | % | ||
| $5,000,000,001 + | 0.30 | % | ||
WCM Investment Management serves as the investment sub-advisor to WCM/BNY Mellon Focused Growth ADR ETF. They receive a sub-advisory fee at an annual fee of 0.25% based on the average daily net assets.
Peritus I Asset Management, LLC serves as the investment sub-advisor to Peritus High Yield ETF. They receive a sub-advisory fee at an annual fee of 0.75% based on the average daily net assets.
Ranger Alternative Management LP, serves as investment sub-advisor to Active Bear ETF. They receive a sub-advisory fee at an annual fee of 1.00% based on the average daily net assets.
Madrona Funds LLC serves as investment sub-advisor to Madrona Domestic ETF, Madrona International ETF and Madrona Global Bond ETF. They receive a sub-advisor fee at an annual rate based on the average daily net assets.
| | |||
| Fund | Rate | |||
| Madrona Domestic ETF | 0.40 | % | ||
| Madrona International ETF | 0.40 | % | ||
| Madrona Global Bond ETF | 0.25 | % | ||
American Wealth Management serves as investment sub-advisor to Meidell Tactical Advantage ETF. They receive a sub-advisory fee at an annual fee of 0.70% based on the average daily net assets.
TrimTabs Asset Management, LLC serves as investment sub-advisor to TrimTabs Float Shrink ETF. They receive a sub-advisory fee at an annual fee of 0.64% based on the average daily net assets.
From time to time, each sub-adviser may waive all or a portion of its fee.
87
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
3. Investment Advisory Agreement and Other Agreements - (continued)
Expense Limitation Agreement
The Advisor has contractually agreed to reduce their fees and reimburse expenses in order to keep net expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses) from exceeding a specified for each Fund’s average daily net assets. The expense limitation agreement will be terminated upon termination of the investment advisory agreement between the Advisor and the Fund. The investment advisory agreement may only be terminated with the approval of the Fund’s Board. The expense caps in effect for each Fund during the period ended December 31, 2011 were as follows:
| | |||
| Fund: | Rate: | |||
| DENT Tactical ETF | 1.50 | % | ||
| Accuvest Global Long Short ETF | 1.50 | % | ||
| Cambria Global Tactical ETF | 0.99 | % | ||
| WCM/BNY Mellon Focused Growth ADR ETF | 1.25 | % | ||
| Peritus High Yield ETF | 1.35 | % | ||
| Active Bear ETF | 1.85 | % | ||
| Madrona Domestic ETF | 1.25 | % | ||
| Madrona International ETF | 1.25 | % | ||
| Madrona Global Bond ETF | 0.95 | % | ||
| Meidell Tactical Advantage ETF | 1.35 | % | ||
| TrimTabs Float Shrink ETF | 0.99 | % | ||
88
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
3. Investment Advisory Agreement and Other Agreements - (continued)
For the period ended December 31, 2011, the Advisor waived fees and reimbursed expenses for each Fund as follows. Each Fund may recoup such waivers until the date indicated.
| | | | |||||||||
| Fund: | Expenses Reimbursed: | Recoupment Amount: | Recoupment Expiration: | |||||||||
| Dent Tactical ETF | $ | 176,554 | $ | 176,554 | 6/30/2013 | |||||||
| 164,643 | 164,643 | 6/30/2014 | ||||||||||
| 16,009 | 16,009 | 6/30/2015 | ||||||||||
| Accuvest Global Long Short ETF | 66,702 | 66,702 | 6/30/2014 | |||||||||
| 61,167 | 61,167 | 6/30/2015 | ||||||||||
| Cambria Global Tactical ETF | 9,250 | 9,250 | 6/30/2014 | |||||||||
| 3,681 | 3,681 | 6/30/2015 | ||||||||||
| WCM/BNY Mellon Focused Growth ADR ETF | 118,635 | 118,635 | 6/30/2014 | |||||||||
| 69,571 | 69,571 | 6/30/2015 | ||||||||||
| Peritus High Yield ETF | 33,512 | 33,088 | 6/30/2014 | |||||||||
| Active Bear ETF | 15,251 | — | 6/30/2014 | |||||||||
| Madrona Domestic ETF | 6,733 | 6,733 | 6/30/2014 | |||||||||
| 13,265 | 13,265 | 6/30/2015 | ||||||||||
| Madrona International ETF | 6,735 | 6,735 | 6/30/2014 | |||||||||
| 17,069 | 17,069 | 6/30/2015 | ||||||||||
| Madrona Global Bond ETF | 6,948 | 6,948 | 6/30/2014 | |||||||||
| 14,780 | 14,780 | 6/30/2015 | ||||||||||
| Meidell Tactical Advantage ETF | 6,772 | 6,772 | 6/30/2014 | |||||||||
| 46,179 | 46,179 | 6/30/2015 | ||||||||||
| TrimTabs Float Shrink ETF | 23,745 | 23,745 | 6/30/2015 | |||||||||
Administrator, Custodian, Fund Accountant and Transfer Agent
The Bank of New York Mellon (“BNYM”) (in each capacity, the “Administrator”, “Custodian”, “Fund Accountant” or “Transfer Agent”), serves as the Fund’s Administrator, Custodian, Fund Accountant and Transfer Agent pursuant to a certain Fund Administration and Accounting Agreement, a Custody Agreement or a Transfer Agency and Service Agreement, as the case may be.
Distribution and Service (12b-1) Plan
Foreside Fund Services, LLC (the “Distributor”) serves as the Fund’s distributor of Creation Units for the Fund pursuant to the distribution agreement. The Distributor does not maintain any secondary market shares.
The Funds have adopted a Distribution and Service Plan (“Plan”) pursuant to Rule 12b-1 under the 1940 Act. In accordance with its Plan, each Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year for certain distribution-related activities. No fees are currently paid by each Fund under a Plan, and there are no current plans to impose these fees. However, in the event Rule 12b-1 fees were charged, over time they would increase the cost of an investment in each Fund.
89
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
4. Organization and Offering Cost
Expenses incurred in organizing of the Trust and Dent Tactical ETF are approximately $241,000. The Trust and the Fund will reimburse AdvisorShares for organizational expenses paid on their behalf. Offering costs were capitalized and are being amortized over a twelve month period.
As of December 31, 2011, the following Funds have the amounts remaining to be amortized:
| | |||
| Fund | Deferred Offering Cost | |||
| Accuvest Global Long Short ETF | $ | 6,857 | ||
| Cambria Global Tactical ETF | 18,509 | |||
| WCM/BNY Mellon Focused Growth ADR ETF | 4,433 | |||
| Peritus High Yield ETF | 19,778 | |||
| Active Bear ETF | 13,675 | |||
5. Creation and Redemption Transactions
The Funds issue and redeem shares on a continuous basis at NAV in groups of 25,000 shares, at minimum, called “Creation Units.” Except when aggregated in Creation Units, shares are not redeemable securities of a Fund.
Only “Authorized Participants” may purchase or redeem shares directly from each Fund. 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 DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
6. Summary of Fair Value Disclosure
The Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes an authoritative framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosure about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1 — quoted prices in active markets for identical securities
Level 2 — other 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)
90
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
6. Summary of Fair Value Disclosure - (continued)
Investments that use Level 2 or Level 3 inputs may include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (e.g., one that may not be publicly sold without registration under the Securities Act of 1933 as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (e.g. an event that occurs after the close of the markets on which the security is traded but before the time as of which a Fund’s net asset value is computed and that may materially affect the value of the Fund’s investment). Examples of events that may be “significant events” are government actions, natural disasters, armed conflicts and acts of terrorism.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of December 31, 2011 in valuing the Funds’ assets carried at fair value:
| | | | | | |||||||||||||||
| Assets | Dent Tactical ETF | Accuvest Global Long Short ETF | Cambria Global Tactical ETF | WCM/BNY Mellon Focused Growth ADR ETF | Peritus High Yield ETF | |||||||||||||||
| Level 1 | ||||||||||||||||||||
| Exchange Traded Funds | $ | 8,741,525 | $ | 2,714,445 | $ | 129,542,217 | $ | — | $ | — | ||||||||||
| Common Stocks | — | — | — | 5,926,791 | — | |||||||||||||||
| Money Market Fund | 4,441,764 | 109,798 | 13,437,470 | 325,577 | 216,671 | |||||||||||||||
| Other Investments† | — | 13,824 | — | — | — | |||||||||||||||
| Level 2 | ||||||||||||||||||||
| Corporate Bonds | — | — | — | — | 55,421,250 | |||||||||||||||
| Foreign Bonds | — | — | — | — | 4,231,212 | |||||||||||||||
| Level 3 | — | — | — | — | — | |||||||||||||||
| Liabilities | ||||||||||||||||||||
| Level 1 | ||||||||||||||||||||
| Exchange Traded Funds | — | (2,229,881 | ) | — | — | — | ||||||||||||||
| Level 2 | ||||||||||||||||||||
| Other Investments† | — | (92,380 | ) | — | — | — | ||||||||||||||
| Level 3 | — | — | — | — | — | |||||||||||||||
| Total | $ | 13,183,289 | $ | 515,806 | $ | 142,979,687 | $ | 6,252,368 | $ | 59,869,133 | ||||||||||
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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
6. Summary of Fair Value Disclosure - (continued)
| | | | | | |||||||||||||||
| Assets | Active Bear ETF | Madrona Domestic ETF | Madrona International ETF | Madrona Global Bond ETF | Meidell Tactical Advantage ETF | |||||||||||||||
| Level 1 | ||||||||||||||||||||
| Exchange Traded Funds | $ | — | $ | — | $ | — | $ | 14,959,552 | $ | 1,797,758 | ||||||||||
| Common Stocks | — | 13,974,391 | 11,140,536 | — | — | |||||||||||||||
| Money Market Fund | 91,536,497 | 116,906 | 29,690 | 146,712 | 60,289 | |||||||||||||||
| Level 2 | — | — | — | — | — | |||||||||||||||
| Level 3 | — | — | — | — | — | |||||||||||||||
| Liabilities | ||||||||||||||||||||
| Level 1 | ||||||||||||||||||||
| Common Stocks | (141,624,109 | ) | — | — | — | — | ||||||||||||||
| Level 2 | — | — | — | — | — | |||||||||||||||
| Level 3 | — | — | — | — | — | |||||||||||||||
| Total | $ | (50,087,612 | ) | $ | 14,091,297 | $ | 11,170,226 | $ | 15,106,264 | $ | 1,858,047 | |||||||||
| | |||
| Assets | TrimTabs Float Shrink ETF | |||
| Level 1 | ||||
| Common Stocks | $ | 5,208,333 | ||
| Money Market Fund | 1,375 | |||
| Level 2 | — | |||
| Level 3 | — | |||
| Liabilities | ||||
| Level 1 | — | |||
| Level 2 | — | |||
| Level 3 | — | |||
| Total | $ | 5,209,708 | ||
| † | Derivative instruments, including futures and swap contracts, are valued at the net unrealized gain(loss) on the instrument. |
The Funds did not hold any Level 3 securities during the period reported.
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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
7. VALUATION OF DERIVATIVE INSTRUMENTS
The Funds have adopted authoritative standards of accounting for derivative instruments which establish disclosure requirement for derivative instruments. These standards improve financial reporting for derivative instruments by requiring enhanced disclosures that enables investors to understand how and why a fund uses derivatives instruments, how derivatives instruments are accounted for and how derivative instruments affect a fund’s financial position and results of operations.
The Funds use derivative instruments as part of their principal investment strategy to achieve their investment objective. As of December 31, 2011, a Fund invested in equity swap contracts.
At December 31, 2011, the fair value of derivative instruments were as follows:
Statement of Assets and Liabilities
| | |||
| Fund: | Liability Derivative | |||
| Accuvest Global Long Short ETF | ||||
| Equity Swaps at Value | $ | 755,303 | ||
Transactions in derivative instruments during the period ended December 31, 2011, were as follows:
Statement of Operations
| | | ||||||
| Fund: | Realized Gain (Loss): | Equity Risk | ||||||
| Accuvest Global Long Short ETF | Futures Contracts | $ | (40,303 | ) | ||||
| Accuvest Global Long Short ETF | Swaps Contracts | 137,479 | ||||||
| $ | 97,176 | |||||||
| Unrealized Gain: | ||||||||
| Accuvest Global Long Short ETF | Futures Contracts | $ | 13,824 | |||||
| Accuvest Global Long Short ETF | Swaps Contracts | 448,001 | ||||||
| $ | 461,825 | |||||||
For the period ended December 31, 2011, the volume of the derivatives held by the Fund was as follows:
| | | ||||||
| Fund: | Long Equity Swap Contracts | Short Equity Swap Contracts | ||||||
| Accuvest Global Long Short ETF | $ | 63,203 | $ | — | ||||
8. Federal Income Tax
The Funds intend to qualify as a “regulated investment company” under Sub-chapter M of the Internal Revenue Code of 1986, as amended. If so qualified, the Funds will not be subject to Federal income tax to the extent it distributes substantially all of its net investment income and net capital gains to its shareholders.
Accounting for Uncertainty in Income Taxes provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements, and requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-than-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Interest and penalty related to income taxes would be recorded as income tax expense.
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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
8. Federal Income Tax - (continued)
Management of the Funds is required to analyze all open tax years (2010 – 2011), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of June 30, 2011, the Funds did not have a liability for any unrecognized tax benefits.
The Funds have no examination in progress and is not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.
At December 31, 2011, the cost of investments, including short positions, and net unrealized appreciation (depreciation) for federal income tax purposes was as follows:
| | | | | | | ||||||||||||||||||
| Fund | Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | Net Unrealized Appreciation (Depreciation) on Swaps | Net Unrealized Appreciation (Depreciation) on Futures | ||||||||||||||||||
| Dent Tactical ETF | $ | 13,198,794 | $ | 29,651 | $ | (45,156 | ) | $ | (15,505 | ) | $ | — | $ | — | ||||||||||
| Accuvest Global Long Short ETF | 764,682 | 112,757 | (283,077 | ) | (170,320 | ) | (92,380 | ) | 13,824 | |||||||||||||||
| Cambria Global Tactical ETF | 141,585,896 | 1,660,340 | (266,549 | ) | 1,393,791 | — | — | |||||||||||||||||
| WCM/BNY Mellon Focused Growth ADR ETF | 6,579,498 | 225,788 | (552,918 | ) | (327,130 | ) | — | — | ||||||||||||||||
| Peritus High Yield ETF | 63,932,574 | 490,122 | (4,553,563 | ) | (4,063,441 | ) | — | — | ||||||||||||||||
| Active Bear ETF | (49,954,688 | ) | 4,927,231 | (5,060,155 | ) | (132,924 | ) | — | — | |||||||||||||||
| Madrona Domestic ETF | 15,245,968 | 450,281 | (1,604,952 | ) | (1,154,671 | ) | — | — | ||||||||||||||||
| Madrona International ETF | 13,481,486 | 96,894 | (2,408,154 | ) | (2,311,260 | ) | — | — | ||||||||||||||||
| Madrona Global Bond ETF | 15,041,971 | 355,137 | (290,844 | ) | 64,293 | — | — | |||||||||||||||||
| Meidell Tactical Advantage ETF | 1,850,552 | 8,779 | (1,284 | ) | 7,495 | — | — | |||||||||||||||||
| TrimTabs Float Shrink ETF | 5,025,686 | 287,691 | (103,669 | ) | 184,022 | — | — | |||||||||||||||||
The differences between book and tax basis components of net assets are primarily attributable to wash sale loss deferrals and other book and tax differences.
Capital losses incurred after October 31 (“Post-October Losses”) within the taxable year can be deemed to arise on the first business day after the Funds’ next taxable year. For the period ended June 30, 2011, the Funds incurred and elected to defer to July 1, 2011 post-October losses of:
| | |||
| Fund | Amount | |||
| Accuvest Global Long Short ETF | $ | 4,066,882 | ||
| Cambria Global Tactical ETF | 371,284 | |||
| WCM/BNY Mellon Focused Growth ADR ETF | 71,976 | |||
The following Funds have capital loss carryforwards, which will expire in 2019, available to offset future realized gains of:
| | |||
| Fund | Amount | |||
| Active Bear ETF | $ | 2,879,509 | ||
| Meidell Tactical Advantage ETF | 2,366 | |||
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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
8. Federal Income Tax - (continued)
Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carry forwards may have an increased likelihood to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The carry forward capital losses noted above are all post-enactment capital loss carry forwards.
9. Investment Transactions
Purchases and sales of investments for the period ended December 31, 2011 are as follows:
| | | | | ||||||||||||
| Fund | Purchases | Sales | Purchases In-Kind | Sales In-Kind | ||||||||||||
| Dent Tactical ETF | $ | 44,657,001 | $ | 39,934,932 | $ | 418,818 | $ | 1,918,514 | ||||||||
| Accuvest Global Long Short ETF | 12,199,532 | 11,682,517 | 1,135,589 | 7,546,096 | ||||||||||||
| Cambria Global Tactical ETF | 444,939,560 | 445,343,243 | 9,027,617 | 26,039,543 | ||||||||||||
| WCM/BNY Mellon Focused Growth ADR ETF | 298,633 | 887,969 | 3,532,190 | 4,349,402 | ||||||||||||
| Peritus High Yield ETF | 37,871,142 | 14,148,208 | — | — | ||||||||||||
| Active Bear ETF | (547,125,048 | ) | (453,038,114 | ) | — | — | ||||||||||
| Madrona Domestic ETF | 2,506,458 | 2,692,932 | 14,613,517 | 1,141,120 | ||||||||||||
| Madrona International ETF | 4,789,245 | 4,628,766 | 13,066,938 | 1,047,320 | ||||||||||||
| Madrona Global Bond ETF | 1,903,651 | 1,800,535 | 12,415,544 | — | ||||||||||||
| Meidell Tactical Advantage ETF | 4,950,513 | 4,698,105 | — | 556,680 | ||||||||||||
| TrimTabs Float Shrink ETF | 6,358,601 | 6,350,329 | 7,000,571 | 2,503,284 | ||||||||||||
10. Risks Involved with Investing in the Funds
The Funds are subject to the principal risks described below, some or all of these risks may adversely affect the Funds’ NAV, trading price, yield, total return and ability to meet its investment objective. As with any investment, an investment in each Fund could result in a loss or the performance of each Fund could be inferior to that of other investments.
Fund of Funds Risk
Some of the Funds’ investment performance, because they are fund of funds, depends on the investment performance of the Underlying ETFs in which they invest. An investment in these Funds are subject to the risk associated with the Underlying ETFs that comprise their Underlying Index. The Funds will indirectly pay a proportional share of the asset-based fees, if any, of the Underlying ETFs in which they invest.
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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
10. Risks Involved with Investing in the Funds - (continued)
Liquidity Risk
In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. To the extent that there is not an established retail market for instruments in which the Fund may invest, trading in such instruments may be relatively inactive. Trading in shares may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in shares inadvisable. In addition, trading in shares is subject to trading halts caused by extraordinary market volatility pursuant to “circuit breaker” rules. There can be no assurance that the requirements necessary to maintain the listing of the shares of the Fund will continue to be met or will remain unchanged.
Market Risk
Investments in securities, in general, are subject to market risks that may cause their prices to fluctuate over time. The Fund’s investments may decline in value due to factors affecting securities markets generally, or particular countries, segments, economic sectors, industries or companies within those markets. The value of a security held in a short position may increase due to general economic and market conditions which are not specifically related to a particular issuer, such as real or perceived positive economic conditions or changes in interest or currency rates. Because the market value of ETF shares may differ from their net asset value, the shares may trade at a premium or discount. An investment in the Fund may lose money.
New Fund Risk
Some of the Funds are new funds. As new funds, there can be no assurance that the Funds will grow to or maintain an economically viable size, in which case the Funds may experience greater tracking error to their Underlying Index than it otherwise would be at higher asset levels or it could ultimately liquidate.
11. New Accounting Pronouncement
In May 2011, the FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” in GAAP and the International Financial Reporting Standards (“IFRSs”). ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the impact these amendments may have on the Fund’s financial statements.
In December 2011, the FASB issued Accounting Standards Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires disclosures to make financial statements that are prepared under GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of assets and liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, ASU 2011-11 requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. New disclosures are required for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is evaluating the impact of ASU 2011-11 on the financial statements and disclosures.
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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2011 (Unaudited)
12. Subsequent Events
The Funds have adopted authoritative standards of accounting for, and disclosure of events that occur after the Statements of Asset and Liabilities date but before financial statements are issued or are available to be issued. These standards require the Fund to recognize in the financial statements the effects of all recognized subsequent events that provide additional evidence about conditions that existed at the date of Statement.
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ADVISORSHARES TRUST
Board of Trustees and Officers (Unaudited)
The business of the Trust is managed under the direction of the Trust’s Board of Trustees. The Board elects the officers of the Trust who are responsible for administering the Trust’s day-to-day operations. Each Trustee serves until his or her successor is duly elected or appointed and qualified.
The name, age, address and principal occupations during the past five years for each Trustee and officer of the Trust is set forth below, along with the other public directorships held by the Trustees.
| | | | | | |||||
| Name and Year of Birth(1) | Position(s) Held with Trust | Term of Office and Length of Time Served(2) | Principal Occupation(s) During Past 5 Years | Other Directorships Held by Trustee | ||||||
| Independent Trustee | ||||||||||
| Elizabeth (Betsy) Piper/Bach | 1952 | Trustee | No set term; served since 2009 | Vice President of NADA Plan Administrators (retirement plan administration) (2009 – present); President of Cardinal Trust and Investments; CIO for Wilson/Bennett Capital Management (2006); Senior Vice President and Chief Trust Officer at FBR National Trust Co., (2001). | 1 | |||||
| William G. McVay | 1954 | Trustee | No set term; served since 2011 | Founder of RDK Strategies, LLC (2007 – present); Vice President of Zephyr Associates, Inc., (2001 – 2006); Vice President of Financeware, Inc., (2000) Vice President of Legg Mason Wood Walker, Inc., (1989 – 2000). | None | |||||
| Interested Trustee | ||||||||||
| Noah Hamman* | 1968 | Trustee | No set term; served since 2009 | Founder of AdvisorShares Investments, LLC (2006 – present; President and CEO of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President — Business Development of Rydex Investments (2001). | None | |||||
The officers of the Trust not named above are:
| | | | | ||||
| Name and Year of Birth(1) | Position(s) Held with Trust | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||||
| Dan Ahrens | 1966 | Chief Compliance Officer, Secretary & Treasurer | No set term; served since 2009 | Executive Vice President of AdvisorShares Investments, LLC (2008 – present); President of Ahrens Advisors, LP (2005 – 2008); President of Mutuals Advisors, Inc & Mutuals.com Funds (2003 – 2005). | ||||
| * | Mr. Hamman is an “interested” person of the Trust, as that term is defined in the 1940 Act, by virtue of his ownership and controlling interest in the Advisor. |
| (1) | The address of each Trustee or officer is c/o AdvisorShares Investments, LLC, 3 Bethesda Metro Center, Suite 700, Bethesda, MD 20814 |
| (2) | Independent Trustees and Officers serve until their successors are duly elected and qualified. |
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Board Review of Investment Advisory and Sub-Advisory Agreements
ADVISORY AND SUB-ADVISORY CONTRACT APPROVAL
Renewal of the WCM Investment Management Sub-Advisory Agreement
At a meeting of the Board of Trustees (the “Board”) of the AdvisorShares Trust (the “Trust”) held on November 16, 2011 (the “Meeting”), the Board, including those trustees who are not “interested persons” of the Trust, as that term is defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Trustees”), unanimously approved the renewal of the investment sub-advisory agreement between AdvisorShares Investments, LLC (the “Advisor”) and WCM Investment Management (“WCM”), a registered investment adviser, (the “Sub-Advisory Agreement”) on behalf of WCM/BNY Mellon Focused Growth ADR ETF (the “Fund”).
Pursuant to Section 15(c) of the 1940 Act, the Board must annually review and re-approve the existing Sub-Advisory Agreement after its initial two-year term: (i) by the vote of the Board or by a vote of the shareholders of the Fund; and (ii) by the vote of a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such approval. Each year following the initial two-year term, the Board calls and holds a meeting to decide whether to renew the Sub-Advisory Agreement for an additional one-year term. In preparation for the meeting, the Board requests and reviews a wide variety of information from the Advisor and WCM. The Board uses this information, as well as other information that the Advisor, WCM and other service providers may submit to the Board, to help them decide whether to renew the Sub-Advisory Agreement for an additional year.
Prior to the Meeting, the Board, including the Independent Trustees, reviewed written materials provided by the Advisor and WCM regarding, among other things: (i) the nature, extent and quality of the services to be provided by WCM to the Fund; (ii) the investment performance of the Fund; (iii) the costs of the services to be provided and profits to be realized by WCM and its affiliates from the relationship with the Fund; (iv) the extent to which economies of scale would be realized as the Fund grows; (v) whether fee levels reflect these economies of scale for the benefit of the Fund’s investors, as discussed in further detail below; and (vi) possible conflicts of interest.
At the Meeting, representatives from the Advisor and WCM, along with other Fund service providers, presented additional oral and written information pertinent to the Board’s evaluation of WCM’s fee and other aspects of the Sub-Advisory Agreement. The representatives provided an overview of WCM, including its client base and assets under management. The representatives also discussed in detail the Fund’s strategy, its focus on the international market, the Fund’s positioning in the market and its attractive and unique offering. The Board then discussed the written materials that the Board received in advance of the Meeting, WCM’s oral presentations, and other information that the Board received at the Meeting, and deliberated on the renewal of the Sub-Advisory Agreement in light of this information. In its deliberations, the Board considered the factors and reached the conclusions described below relating to the selection of WCM and the renewal of the Sub-Advisory Agreement, and did not identify any single piece of information discussed below that was all-important, controlling or determinative of its decision.
Nature, Extent and Quality of Services Provided by WCM
In considering the nature, extent and quality of the services provided by WCM, the Board reviewed the portfolio management services provided to the Fund, including the quality and continuity of the personnel and operations of WCM. The most recent investment adviser registration form (“Form ADV”) for WCM was also provided to the Board, as were the responses of WCM to a detailed series of questions which included, among other things, information about the background and experience of the portfolio managers primarily responsible for the day-to-day management of the Fund.
The Board also considered other services to be provided to the Fund such as selecting broker-dealers for executing portfolio transactions, monitoring adherence to the Fund’s investment restrictions, and monitoring compliance with various Fund policies and procedures and with applicable securities
99
regulations. Based on the factors above, as well as those discussed below, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Fund by WCM.
Investment Performance of the Fund
The Board was provided with information regarding the Fund’s performance since the Sub-Advisory Agreement was last approved. At the Meeting, representatives of the Advisor and WCM provided information regarding, and led a discussion of, factors affecting the performance of the Fund, outlining current market conditions and explaining the Advisor’s and WCM’s expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that WCM had been able to achieve for the Fund since inception.
Costs of Advisory Services, Profitability and Economies of Scale
In concluding that the advisory fee payable by the Fund was reasonable, the Board reviewed a report of the sub-advisory fee paid by the Advisor to WCM and the fee waivers that WCM had made over the period, as well as the costs and other expenses incurred by WCM in providing sub-advisory services. The Board also reviewed reports comparing the expense ratio and advisory fee paid by the Fund to those paid by other comparable mutual funds and noted the Fund’s advisory fee was consistent with the range of advisory fees paid by other peer funds. The Board concluded that the sub-advisory fee appeared reasonable in light of the services rendered and was the result of arm’s length negotiations. In addition, the Board considered for the Fund whether economies of scale were realized during the current contract period, but did not conclude that such economies of scale had yet been achieved.
Based on the Board’s deliberations and its evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Sub-Advisory Agreement are fair and reasonable; (b) concluded WCM’s fees are reasonable in light of the services that it provides to the Fund; and (c) agreed to renew the Sub-Advisory Agreement for another year.
Initial Advisory and Sub-Advisory Agreements Approvals
At meetings of the Board held on November 15, 2010 and May 10, 2011(together, the “Meetings”), the Board considered the approval of the investment advisory agreement between the Trust and the Advisor (the “Advisory Agreement”), for an initial term of two years, on behalf of six series of the Trust: Madrona Domestic ETF, Madrona International ETF, Madrona Global Bond ETF, Rockledge SectorSAM ETF, TrimTabs Float Shrink ETF, and Accuvest Global Opportunities ETF (each, a “New Fund,” and collectively, the “New Funds”). The Advisory Agreement for (i) Madrona Domestic ETF, Madrona International ETF, and Madrona Global Bond ETF was considered at the Meeting held on November 15, 2010 and (ii) Rockledge SectorSAM ETF, TrimTabs Float Shrink ETF, and Accuvest Global Opportunities ETF was considered at the Meeting held on May 10, 2011. The Board also considered, at each respective Meeting, the approval of the sub-advisory agreement(s) between: (1) Madrona Funds, LLC and the Advisor, on behalf of Madrona Domestic ETF, Madrona International ETF and Madrona Global Bond ETF; (2) Rockledge Advisors LLC and the Advisor, on behalf of Rockledge SectorSAM ETF; (3) TrimTabs Asset Management, LLC and the Advisor, on behalf of TrimTabs Float Shrink ETF; and (4) Accuvest Global Advisors and the Advisor, on behalf of Accuvest Global Opportunities ETF (each, a “Sub-Advisor,” and collectively, the “Sub-Advisors” and together with the Advisor, the “Advisors”) pursuant to which the Sub-Advisors perform portfolio management and related services for their respective New Fund(s) (the “Sub-Advisory Agreements,” and together with the Advisory Agreement, the “New Agreements”). In addition, the Independent Trustees separately considered the approval of each of the New Agreements.
Pursuant to Section 15(c) of the 1940 Act, the Board considered the approval of the New Agreements for initial two-year terms. Each New Agreement, after the initial two-year term, must be approved annually: (i) by a vote of the majority of the Board or by a vote of the majority of the shareholders of the New Fund; and (ii) by the vote of a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such approval. After the initial two-year term, the Board will call and hold a meeting each year to decide whether to renew each New Agreement for an additional one-year term.
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In connection with its consideration of the New Agreements, the Board, including the Independent Trustees, was presented with, and requested, received and evaluated, materials about the New Agreements and the services proposed to be provided thereunder, including information about the investment advisory fee rates and related matters from the Advisors. The Board reviewed a detailed report prepared by the Advisor, which included information comparing the proposed investment advisory fee rates and expense ratios for the New Funds with a group of comparable funds as selected by the Advisor (the “AdvisorShares Report”). The Board also received various other materials which it considered relevant to its consideration and approval of the proposed New Agreements.
At the conclusion of its review of the materials discussed above and of the discussions among the Trustees leading up to and during the Meetings, the Board, on behalf of the Trust and each of the New Funds, agreed that it had been furnished with sufficient information to make an informed business decision with respect to the approval of each of the proposed New Agreements.
In considering each of the proposed New Agreements, the Board considered factors bearing on the nature, extent and quality of the services proposed to provided to the New Funds, and the costs of those services, with a view toward making a business judgment as to whether each of the proposed New Agreements is, under all of the circumstances, in the best interests of each the New Fund and its shareholders. Among the factors that the Board considered and the conclusions that the Trustees, in their business judgment, reached, included principally the following: (i) their favorable evaluation of the nature, extent and quality investment management services proposed to be provided by the Advisors to the New Funds; (ii) their satisfaction that the investment advisory fee rate proposed for each New Fund is consistent with applicable standards and is reasonable and fair; and (iii) their assessment that the Advisors’ projected profitability in connection with providing investment management services to the New Funds would not be excessive.
In its deliberations, the Board did not identify any single factor that was paramount or controlling and individual trustees may have attributed different weights to various factors. Certain factors considered by the Board at the Meetings are addressed in more detail below:
Nature, quality, and extent of services to be provided by the Advisor and Sub-Advisors
In considering the nature, extent and quality of the services proposed to be provided by the Advisors, the Board reviewed the services to be provided by each firm and the qualifications and backgrounds of the portfolio managers responsible for managing the New Funds. The Board also discussed information set forth in each firm’s Form ADV, which provides information about each firm, its management, and its business activities and affiliations. The Board also observed that each firm’s compliance program had been reviewed by the Chief Compliance Officer of the Trust and determined to be reasonably designed to prevent violation of the federal securities laws by the New Funds. Based on its review, the Board determined that the Advisor, the Sub-Advisors and their respective personnel were well-qualified to provide all required services to the New Funds and to provide services that are of high quality, and that each firm has appropriate resources to provide such services.
Performance of the New Funds
The Board noted that although consideration of a fund’s investment performance is usually reviewed in connection with evaluating the nature, extent and quality of services provided under advisory agreements, no conclusion about this factor was made since the New Funds are newly formed.
101
Cost of services to be provided and profits to be realized by the Advisor, Sub-Advisors and their affiliates under the New Agreements, and comparative fees.
The Board considered the cost of the services to be provided by the Advisors, and reviewed the investment advisory fees to be paid pursuant to the New Agreements. In addition, the Board discussed the fee arrangements between the Advisor and each Sub-Advisor. The Board also reviewed information provided in the AdvisorShares Report regarding advisory fees of comparable funds in peer groups, and evaluated the proposed advisory fee arrangements in light of this information and the factors that judicial decisions have specified as pertinent generally. The Board also considered the Advisor’s contractual agreement to waive a portion of its advisory fee in an effort to control the New Funds’ expense ratios. Based on the foregoing considerations, the Board determined that it was satisfied that the investment advisory fee rate proposed for each New Fund was consistent with applicable standards and was reasonable and fair.
Economies of scale
Although none of the New Agreements provide for breakpoints in the advisory fee should a New Fund’s assets meaningfully grow, the Board concluded that the advisory fee appropriately reflects each New Fund’s expected size, the Advisor’s current economic environment and the competitive nature of the investment company market. The Board therefore concluded that it was satisfied with the fee level under the New Agreements, given that economies of scale would not likely be realized during the initial term of the New Agreements and the fee level under the New Agreements could be revisited if economies of scale materialized. The Board determined that it would revisit this issue at an appropriate time in the future.
Conclusion
Based on the Board’s deliberations and its evaluation of the information described above, the Board including the Independent Trustees, unanimously: (a) concluded that the terms of the New Agreements are fair and reasonable; (b) concluded that the Advisors’ fees are fair and reasonable in light of the services that they will provide to the New Funds; and (c) agreed to approve the New Agreements for initial terms of two years.
102
SUPPLEMENTAL INFORMATION
Shareholder Reports and Quarterly Portfolio Disclosure
The Fund is required to file their complete schedule of portfolio holdings with the SEC for their first and third quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating fee to the SEC’s Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically to publicinfosec.gov.
The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Trustees and Officers and is available without charge upon request. Contact your financial representative for a free prospectus or SAI.
103
ADVISORSHARES TRUST
Investment Advisor
AdvisorShares Investments, LLC
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814
Sub-Adviser
H.S. Dent Investment Management, LLC
15310 Amberly Drive, Suite 390
Tampa, Florida 33647
WCM Investment Management
281 Brooks Street
Laguna Beach, California 92651
Madrona Funds, LLC
2911 Bond Street, Suite 105
Everett, Washington 98201
Accuvest Global Advisors
3100 Oak Road, Suite 380
Walnut Creek, CA 94597
Cambria Investment Management, Inc.
2321 Rosecrans Avenue, Suite 4210
El Segundo, California 90245
Ranger Alternative Management, L.P.
300 Crescent Court, Suite 1100
Dallas, Texas 75201
Peritus I Asset Management, LLC
26 West Anapamu, 3rd Floor
Santa Barbara, California 93103
American Wealth Management
570 Hammill Lane
Reno, Nevada 89511
TrimTabs Asset Management, LLC
2018 Stony Oak Court
Santa Rosa, CA 95403
Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
Custodian/Fund Administrator/Transfer Agent
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Legal Counsel
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Ave, N.W.
Washington, D.C. 20004
Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
1818 Market Street
Philadelphia, PA 19103
This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Fund’s risks, objectives, fees and expenses, experience of management and other information.
Item 2. Code of Ethics.
Not Applicable for the semi-annual reporting period.
Item 3. Audit Committee Financial Expert.
Not Applicable for the semi-annual reporting period.
Item 4. Principal Accountant Fees and Services.
Not Applicable for the semi-annual reporting period.
Item 5. Audit Committee of Listed Registrants.
Not Applicable for the semi-annual reporting period.
Item 6. Schedule of Investments.
| (a) | Schedule 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 Company & Affiliated Purchasers.
Not Applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11. Controls and Procedures.
(a) The Chief Executive Officer and Treasurer have evaluated the Registrant's disclosure controls and procedures within 90 days of the filing date of this report and have concluded that these controls and procedures are effective.
(b) There were no significant changes in the Registrant's internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation.
Item 12. Exhibits.
(a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the Registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable at this time.
(b) Certifications for each Principal Executive Officer and Treasurer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17CFR 270.30a-(a)).
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: | AdvisorShares Trust |
| By: | /s/ Noah Hamman | ||||
| Noah Hamman, Chief Executive Officer | |||||
| Date: | March 7, 2012 |
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.
| Registrant: | AdvisorShares Trust |
| By: | /s/ Noah Hamman | ||||
| Noah Hamman, Chief Executive Officer | |||||
| Date: | March 7, 2012 |
| By: | /s/ Dan Ahrens | ||||
| Dan Ahrens, Treasurer | |||||
| Date: | March 7, 2012 |