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
AdvisorShares Trust
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: June 30, 2012
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.
ADVISORSHARES TRUST
2 Bethesda Metro Center
Suite 1330
Bethesda, Maryland 20814
www.advisorshares.com
877.THE.ETF1
Annual Report
June 30, 2012
TABLE OF CONTENTS
ADVISORSHARES TRUST
Manager’s Discussion and Analysis
June 30, 2012
Thank you for being a shareholder of AdvisorShares ETFs. Our goal is to provide investors with access to great portfolio managers with compelling investment strategies in an innovative format that provides shareholders with transparency, intra-day liquidity, and an efficient operating structure. We are pleased to offer you our 2012 annual report.
As you can see from the chart below, we have continued to increase the number of ETFs we offer and have continued to increase our overall assets under management.
Source: AdvisorShares
During this time, we have offered the following new actively managed ETFs:
• | TTFS — AdvisorShares TrimTabs Float Shrink ETF (Domestic Equity Investment Strategy) |
• | ACCU — AdvisorShares Accuvest Global Opportunities ETF (Global Equity Investment Strategy) |
• | SSAM — AdvisorShares Rockledge SectorSAM ETF (Long/Short Domestic Equity Strategy) |
• | GIVE — AdvisorShares GlobalECHO ETF (Multi-Manager Sustainability Strategy) |
In addition, in December of 2011, we changed the portfolio manager of the Mars Hill Global Relative Value ETF (GRV), to Accuvest Global Advisors and renamed the ETF the AdvisorShares Accuvest Global Long/Short ETF (new ticker: AGLS).
1
As of June 30, 2012 I Source: AdvisorShares
As of June 30th, 2012, AdvisorShares has the largest number of actively managed ETFs offered in the market. We continue to see investors utilize the strategies and potential benefits that active ETFs offer as a part of their overall asset allocation. We look forward to continuing to offer new innovative managers and strategies to the market place. We appreciate the trust and confidence our shareholders have given to us.
Best Regards,
/s/ Noah Hamman
Noah Hamman
CEO, AdvisorShares Investments
An investment in the Funds is subject to risk, including the possible loss of principal amount invested. ADRs are subject to the risk of change in political or economic conditions and exchange rates in foreign countries. Certain funds may participate in leveraged transactions to include selling securities short which creates the risk of magnified capital losses. Under certain market conditions, short sales can increase the volatility and decrease the liquidity of certain securities or positions, and may lower the Fund’s return or result in a loss. 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 June 30, 2012 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.
2
ADVISORSHARES TRUST
Accuvest Global Long Short ETF (GRV)
Accuvest Global Advisors assumed management of the AdvisorShares Accuvest Global Long/Short ETF (NYSE Arca: AGLS) as of 12/1/2011. Since then, we have seen macro headlines dominate the investment landscape. Performance in the fund was as expected for two main reasons. First, in a market that makes strong moves to the upside with little volatility, our lower net exposure will tend to dampen upside returns. This was especially evident in the first quarter. Second, as a result of our investment process, our short book was heavily skewed towards European countries. We typically don’t have such heavy geographic concentration in the bottom of the rankings. However, most countries in continental Europe exhibit very poor fundamentals, poor momentum and elevated risks. The only quality that some European countries (Spain, Italy and France) have that makes them the least bit attractive is that they are cheap. As the year unfolded, a return of volatility and a focus on European sovereign risks were positive for the relative performance of AGLS. The relief rally came to a screeching halt in the first quarter of 2012 along with a return of volatility to the market. Subsequently, our shorts outperformed substantially, allowing us to limit losses in a very difficult market.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 9, 2010* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 7/09/2010 | ||||||||||||||||
Accuvest Global Long Short ETF NAV | -2.35 | % | -0.14 | % | 3.16 | % | 3.15 | % | -7.29 | % | ||||||||||
Accuvest Global Long Short ETF Market** | -7.17 | % | -0.14 | % | 4.75 | % | 3.24 | % | -7.25 | % | ||||||||||
MSCI World Index | 5.10 | % | -5.07 | % | 5.91 | % | -4.98 | % | 8.44 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 3.42% and the net expense ratio is 3.21%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Mars Hill Global Relative Value ETF commenced operations on July 9, 2010. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot invest directly in an index.
3
ADVISORSHARES TRUST
Accuvest Global Opportunities ETF (ACCU)
We launched the AdvisorShares Accuvest Global Opportunities ETF (NYSE Arca: ACCU) on 1/25/2012, so it has less than a full year of operational history. Performance in the fund was slightly behind our benchmark, the MSCI All Country World Index, but was still within the range of expectations for the strategy. Countries with strong Fundamentals and Momentum performed well in the first quarter, while countries with lower Risk and lower Valuations were more of a mixed bag. In the 2nd quarter, only 2 countries had positive returns, and those were Belgium and Turkey. We saw a more balanced contribution of factors this quarter, with Momentum and Risk factors being positive contributors to performance, while Valuation factors were again negative. The most negative performing countries were also the cheapest, including two of our top holdings. Russia was down -14.5% and Korea was down -8.6%. Going forward, we will expect better relative performance as countries begin to follow their own fiscal and monetary policy paths, leading to greater return dispersion between countries.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 25, 2012* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Since Inception 1/25/2012 | ||||||||||
Accuvest Global Opportunities ETF NAV | 4.67 | % | -6.22 | % | -2.24 | % | ||||||
Accuvest Global Opportunities ETF Market** | 4.67 | % | -6.21 | % | -2.20 | % | ||||||
MSCI AC World Index ex USA | 5.90 | % | -7.61 | % | 3.93 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.78%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Accuvest Global Opportunities ETF commenced operations on January 25, 2012. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI AC World Index is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. One cannot invest directly in an index.
4
ADVISORSHARES TRUST
Active Bear ETF (HDGE)
For the fiscal year ending 06/30/2012, the AdvisorShares Active Bear ETF (NYSE Arca: HDGE) gained 3.05% while the S&P 500 Index gained 5.45%. As a short-only investment vehicle, HDGE seeks to outperform peers and relevant benchmarks on a relative basis during bull markets. During down markets and/or highly volatile market conditions characterized by fear and uncertainty, HDGE seeks to generate positive results and outperform peers and relevant benchmarks on both a relative and absolute basis.
At the beginning of the fiscal year (07/01/2011), valuations were on the high side and the market was primed for a correction, which occurred during the third quarter. The anxiety associated with the market correction was lead by a series of events such as, the downgrade of U.S. debt by Standard & Poor’s; tepid growth and stubbornly high unemployment in the U.S.; concerns regarding European sovereign debt; slowing growth in China; and, the political venom of the Presidential election year. HDGE generated positive results during the third quarter of 2011 and again during the first two months of the second quarter of 2012, during market conditions characterized by volatility, fear and uncertainty. On the other hand, HDGE incurred losses in the fourth quarter of 2011 and first quarter of 2012, as volatility, fear and uncertainty abated.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 27, 2011* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 1/27/2012 | ||||||||||||||||
Active Bear ETF NAV | -4.50 | % | 13.20 | % | -6.68 | % | 3.00 | % | -4.74 | % | ||||||||||
Active Bear ETF Market** | -4.62 | % | 13.08 | % | -6.75 | % | 3.05 | % | -4.71 | % | ||||||||||
S&P 500 | 4.12 | % | -2.75 | % | 9.49 | % | 5.45 | % | 10.13 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 3.29%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Active Bear ETF commenced operations on January 27, 2011. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
5
ADVISORSHARES TRUST
Cambria Global Tactical ETF (GTAA)
The AdvisorShares Cambria Global Tactical ETF (NYSE Arca: GTAA) was launched on 10/26/2010. For the period from July 1, 2011 through June 30, 2012, GTAA had a return of -8.07%. While it underperformed the S&P 500 Index, GTAA is a broadly diversified ETF that includes other asset classes beyond domestic equities, such as commodities, international equities, fixed income, and real estate. We believe that GTAA, over full market cycles, can provide its benefit in declining markets by assuming a defensive posture and utilizing cash as an alternative to its long positions.
Typically, volatile markets will have a negative impact on fund performance while trending markets will have a positive impact on fund performance. We have witnessed both markets during the fiscal year ended June 30, 2012, and thus positive and negative impacts to the performance of the fund across various holdings.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 26, 2010* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 10/26/2010 | ||||||||||||||||
Cambria Global Tactical ETF NAV | 1.67 | % | -2.71 | % | 1.02 | % | -7.84 | % | -2.40 | % | ||||||||||
Cambria Global Tactical ETF Market** | 1.63 | % | -2.76 | % | 1.91 | % | -8.07 | % | -2.52 | % | ||||||||||
S&P 500 Index | 4.12 | % | -2.75 | % | 9.49 | % | 5.45 | % | 10.13 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.47% and the net is 1.42%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Cambria Global Tactical ETF commenced operations on October 26, 2010. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
6
ADVISORSHARES TRUST
Dent Tactical ETF (DENT)
The AdvisorShares Dent Tactical ETF (NYSE Arca: DENT) lost -13.12% for the year ended 06/30/2012 while over the same period of time the S&P 500 Index gained 5.45%. This was a result of the funds timing signals being out of phase with the market. The fund admirably avoided the steep sell off during the summer of 2011, but had difficulty getting into step with the market, once it began to rally from the October through April time period.
The AdvisorShares Board of Trustees approved the closing and subsequent liquidation of DENT, and following its last day of trading on August 8, 2012, the ETF will cease operations, withdraw its assets, and distribute the remaining proceeds to shareholders on or after August 15, 2012.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period September 16, 2009* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 9/16/2009 | ||||||||||||||||
DENT Tactical ETF NAV | -0.56 | % | -2.78 | % | -5.22 | % | -13.12 | % | -3.66 | % | ||||||||||
DENT Tactical ETF Market** | -0.50 | % | -2.73 | % | -5.33 | % | -13.18 | % | -3.72 | % | ||||||||||
S&P 500 Index | 4.12 | % | -2.75 | % | 9.49 | % | 5.45 | % | 10.13 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.41% and the net is 1.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | DENT Tactical ETF commenced operations on September 16, 2009. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
7
ADVISORSHARES TRUST
Global Echo ETF (GIVE)
The AdvisorShares Global Echo ETF (NYSE Arca: GIVE) gained 1.60% from inception (5-23-2012) through 6-30-12 on a Net Asset Value basis, and 1.98% during the same period on a Market Value basis. While it underperformed the S&P 500 Index, GIVE is a broadly diversified ETF that includes an active tactical strategy that can invest in inverse and bear market ETFs to potentially profit from market downturns, thus dampening overall portfolio volatility. We believe that over full market cycles, GIVE will achieve competitive risk-adjusted returns by actively adjusting from more defensive to more opportunistic positions.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period May 23, 2012* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | Since Inception 5/23/2012 | |||||||||||
Global Echo ETF NAV | 2.07 | % | 1.60 | % | ||||||||
Global Echo ETF Market** | 2.18 | % | 1.98 | % | ||||||||
MSCI World Index | 5.10 | % | 8.44 | % | ||||||||
Barclays US Aggregate Bond Index | 0.04 | % | 8.26 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and the net expense ratio is 1.70%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Global Echo ETF commenced operations on May 23, 2012. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot invest directly in an index.
The Barclays Capital U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.
8
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF (FWDD)
The AdvisorShares Madrona Domestic ETF (NYSE Arca: FWDD) was down -2.65% for the year ended 06/30/2012. While this is less than the 5.45% return from the S&P 500 Index, FWDD has performed well in up markets. For example for Q1 2012 (01/01/12 – 03/31/12) FWDD was outperforming its Index by 2.60%. This is partly due to the fact that we were experiencing an up market for that quarter. FWDD is designed to produce higher returns by selecting companies with superior future expected earnings relative to its stock price. We believe this fund will perform best in up markets and obtain higher returns than its index. FWDD has a Beta of 1.1388 which suggests that investors have the possibility of a higher rate of return than if they were to invest in the S&P 500 Index. Along with higher returns also comes the assumption of a higher rate of risk, because FWDD is 13.9% more volatile than its index, thus signifying that FWDD has the potential to perform better in an up market than in a declining market.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 6/21/2011 | ||||||||||||||||
Madrona Domestic ETF NAV | 2.72 | % | -6.08 | % | 7.84 | % | -2.65 | % | 1.48 | % | ||||||||||
Madrona Domestic ETF Market** | 2.72 | % | -6.23 | % | 7.66 | % | -2.76 | % | 1.37 | % | ||||||||||
S&P 500 Index | 4.12 | % | -2.75 | % | 9.49 | % | 5.45 | % | 10.13 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross and net) is 1.12%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Madrona Domestic ETF commenced operations on June 21, 2011. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
9
ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
The AdvisorShares Madrona Global Bond ETF (NYSE: Arca: FWDB) gained 5.59% for the year ended
06/30/2012. Its benchmark, the Barclays Capital Aggregate Bond Index gained 7.47%. Barclays Capital U.S. Aggregate Bond Index is a broad-based index which is weighted according to market capitalization, and is used to represent investment grade bonds traded in the United States. While FWDB slightly underperformed its Index, the Global Bond allocation is expected to outperform its index in the future. This is due to a consistent overweight to U.S. Treasuries in most other bond ETFs, which we expect will lose value in the near future. Madrona Global Bond is diversified and balanced, offering a truly global bond allocation that we believe can produce returns greater than its index through the use of such diversification.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 6/21/2011 | ||||||||||||||||
Madrona Global Bond ETF NAV | 1.25 | % | 1.02 | % | 3.25 | % | 5.59 | % | 5.48 | % | ||||||||||
Madrona Global Bond ETF Market** | 1.25 | % | 0.94 | % | 3.33 | % | 5.49 | % | 5.42 | % | ||||||||||
Barclays Capital U.S. Aggregate Bond Index | 0.04 | % | 2.06 | % | 2.37 | % | 7.47 | % | 8.26 | % | ||||||||||
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.17% and the net is 1.15%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Madrona Global Bond ETF commenced operations on June 21, 2011. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The Barclays Capital U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.
10
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
The AdvisorShares Madrona International ETF (NYSE Arca: FWDI) was down -19.11% for the year ended 06/30/2012, while its benchmark, the MSCI EAFE Index was down -13.83%. The MSCI EAFE Index is a market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. Madrona International ETF selects a portfolio primarily composed of at least 250 of the world’s largest American Depositary Receipts (ADRs) excluding the U.S. FWDI is designed to produce higher returns than the MSCI EAFE Index by selecting international ADRs with superior future expected earnings relative to their stock prices. Using this valuation weighting system, we believe the fund can attain a higher rate of return than that of its index, which is weighted solely on market capitalization.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 6/21/2011 | ||||||||||||||||
Madrona International ETF NAV | 6.63 | % | -9.26 | % | 3.79 | % | -19.11 | % | -14.95 | % | ||||||||||
Madrona International ETF Market** | 0.86 | % | -9.09 | % | 3.79 | % | -18.95 | % | -14.76 | % | ||||||||||
MSCI EAFE Index | 7.01 | % | -7.13 | % | 2.96 | % | -13.83 | % | 8.84 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and the net is 1.12%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Madrona International ETF commenced operations on June 21, 2011. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. One cannot invest directly in an index.
11
ADVISORSHARES TRUST
MEIDELL TACTICAL ADVANTAGE ETF
The AdvisorShares Meidell Tactical Advantage ETF (NYSE Arca: MATH) gained +0.31% for the year ended 6/30/2012 while the S&P 500 Index gained +5.45% over the same time period. The fund was able to deliver near market returns with dramatically less volatility due to the funds ability to shift from stock to bonds and cash as dictated by changes in price behavior. Specifically, the funds quantitative signals were able to avoid the August through September decline cause by fears over the European financial crisis. Additionally, the fund increased its allocation to equities during October and November in time to participate in the January through April rally of this year.
The fund began falling behind the S&P 500 Index beginning in March as the equity markets narrowed to U.S. large-cap stocks, causing the small and mid-cap stocks to underperform. Although our faster signals began exiting the market in mid-May, our slower signals did not begin moving out of the market until late June. Therefore, half of our portfolio bore the brunt of the markets decline. This delayed sell signal was a result of the narrower market top in 2012 which lasted only two months (March and April) versus the five to six month top seen in 2011 prior to the summer sell off.
The fund is designed to outperform the stock market over a complete market cycle by avoiding large drawdowns through a unique fund selection process designed to overweight outperforming asset classes while under weighting or eliminating those that are underperforming.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 23, 2011* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 6/23/2011 | ||||||||||||||||
Meidell Tactical Advantage ETF NAV | 0.24 | % | -6.44 | % | 2.36 | % | 0.31 | % | 0.54 | % | ||||||||||
Meidell Tactical Advantage ETF Market** | 1.56 | % | -5.14 | % | 3.82 | % | 1.71 | % | 1.95 | % | ||||||||||
S&P 500 Index | 4.12 | % | -2.75 | % | 9.49 | % | 5.45 | % | 10.13 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.20% and the net is 1.60%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Meidell Tactical Advantage ETF commenced operations on June 23, 2011. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
12
ADVISORSHARES TRUST
Peritus High Yield ETF (HYLD)
The AdvisorShares Peritus High Yield ETF (NYSE Arca: HYLD) gained 3.27% for the period 7/1/11 to 6/30/12. After facing a broad correction in the high yield market in the summer and early fall of 2011, we have regained the ground lost, with a return of 7.25% YTD 2012. Peritus’ portfolio holdings positioned them better to withstand the market downturn in the summer of 2011, but as the market reversed and began its recovery in the fall of 2011, Peritus’ holdings initially benefited less from the massive fund inflows, as we generally hold off-the-run names, less trafficked by the index-based products. With our emphasis on credit selection and a more focused portfolio, the Peritus High Yield ETF has experienced lower volatility (as measured by standard deviation) relative to the index-based high yield ETFs. With active management, Peritus undertakes the fundamental work necessary to determine the credits’ viability and return prospects. We believe that this intensive research process, along with the significant yield advantage offered by the Peritus High Yield ETF, positions us well for the year ahead.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 1, 2010* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 12/01/2010 | ||||||||||||||||
Peritus High Yield ETF NAV | 0.81 | % | 0.34 | % | 7.25 | % | 3.27 | % | 6.63 | % | ||||||||||
Peritus High Yield ETF Market** | 0.72 | % | -0.04 | % | 6.34 | % | 2.75 | % | 6.64 | % | ||||||||||
Barclays U.S. High Yield Index | 2.11 | % | 1.83 | % | 7.27 | % | 7.27 | % | 9.43 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.58% and the net is 1.36%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Peritus High Yield ETF commenced operations on December 1, 2010. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The Barclays U.S. High Yield Index is an unmanaged index considered representative of the universe of U.S. fixed rate, non investment grade debt. One cannot invest directly in an index.
13
ADVISORSHARES TRUST
Rockledge SectorSAM ETF (SSAM)
The AdvisorShares Rockledge SectorSAM ETF (NYSE Arca: SSAM) turned in a slightly negative -1.25% return for its first six months. SSAM underperformed its 3-Month Treasury Bill Index benchmark, which gained approximately 0.40% for the same six month period ending June 30, 2012. In a marketplace that has been overshadowed by news headlines more than specific company fundamentals, the defensive SSAM strategy achieved part of its goal, yielding returns that are uncorrelated to the broad equity markets and exhibiting half the volatility, or risk, of US equities. With more certainty in Europe, clarity on the elections here, better understanding of the Federal Reserve’s direction and stability in oil prices, Rockledge expects markets to revert to more fundamentally driven price movements. Reducing the impact of geopolitical events should result in a more conducive environment for sector rotation.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 11, 2012* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Since Inception 1/11/2012 | ||||||||||
Rockledge SectorSAM ETF NAV | -0.98 | % | -2.32 | % | -1.25 | % | ||||||
Rockledge SectorSAM ETF Market** | -0.98 | % | -2.32 | % | -1.21 | % | ||||||
Merrill Lynch 3-Month U.S. Treasury Bill Index | 0.01 | % | 0.03 | % | 5.75 | % | ||||||
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.80% and the net is 1.50%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Rockledge SectorSAM ETF commenced operations on January 11, 2012. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The BofA Merrill Lynch 3-Month Treasury Bill Index is an unmanaged index comprised of a single issue purchased at the beginning of the month and held for a full month. One cannot invest directly in an index.
14
ADVISORSHARES TRUST
TrimTabs Float Shrink ETF (TTFS)
The AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) gained 26.62% net of fees and 26.93% market price since its inception on October 5, 2011 through June 30, 2012. The fund outperformed the Russell 3000 Index by 3.30% and the S&P 500 Index by 3.40% in this period. Moreover, it outperformed the Buyback Achievers Index (www.mergent.com), which is “designed to track the performance of companies that. . . have repurchased 5% or more of its common stock in the trailing 12 months,” by 4.00% net of all fees. It also outperformed the Sabrient Insider Sentiment Index (www.sabrient.com), which “identifies 100 stocks. . . that reflect favorable corporate insider buying trends,” by 6.20% net of all fees.
The excess return the fund earned over the Russell 3000 Index since its inception widened to 326 basis points (bps) (3.26%) as of June 30, 2012, from 210 bps (2.10%) a month earlier. Breaking down the excess return, the difference between the total return of the fund and the Russell 3000 Index that can be attributed to security selection—choosing different securities within a sector from those in the benchmark—was 188 bps (1.88%). The difference between the total return of the fund and the Russell 3000 Index that can be attributed to sector allocation—weighting sectors differently than the benchmark—was 138 bps (1.38%). The fund has consistently generated positive excess returns from active security selection and sector allocation since its inception.
The major negative impact on TTFS performance came from a few underperforming small-cap stocks. TTFS is an equally-weighted strategy. Structurally there is a small-cap tilt from underweighting mega-cap companies. Therefore a loss in small-cap companies could be a major performance drag compared to market-cap weighted strategies.
S&P 500 Index companies spent $84.3 billion on stock buybacks in Q1 2012, down 6.2% from Q1 2011. This decline was the first year-on-year drop in two years. When stock buybacks started to decline significantly in Q1 2008, companies did not boost their spending on buybacks for another two years. Measuring the tradable float rather than shares outstanding offers investors a better way to take advantage of the shrinking supply of a company’s stock, as buybacks are historically volatile.
The float of the Russell 3000 Index shrank at an annualized rate of 2.0% in June, while companies in the fund reduced the float at an annualized rate of 9.7%. The free cash flow yield of the Russell 3000 Index dropped to 6.7% by the end of June, while companies in the fund sported a free cash flow yield of 7.9%. From a more traditional price/earnings (P/E) ratio perspective, the holdings of the fund are slightly cheaper (14.2) than the Russell 3000 Index (14.8). These statistics suggest the fund is well positioned to capture value for investors.
The Buyback Achievers Index is designed to track the performance of companies that are incorporated in the United States, trade on: NYSE or NASDAQ and have repurchased 5% or more of its common stock in the trailing 12 months. The Index is reconstituted annually and rebalanced on a quarterly basis. The Index is calculated using a modified market capitalization weighting methodology and is published by the American Stock Exchange under ticker symbol DRB.
The Sabrient All-Cap Insider/Analyst Quant-Weighted Index is a quantitatively-weighted index comprised of 100 of the top publicly traded companies in the S&P 500 Index. The Index reflects positive sentiment among those “insiders” closest to a company’s financials and business prospects, such as top management, directors, large institutional holders, and the Wall Street research analysts who follow the company. One cannot invest in an index.
(BPS) A basis point is a unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument.
Float is the total number of shares publicly available for trading. The float is calculated by subtracting restricted shares from shares outstanding.
P/E Ratio is the current ratio of a company’s price to its earnings.
15
Free cash flow yield is the free cash flow per share divided by the price of the stock. This is an average of all holdings in the portfolio as of the date shown.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 5, 2011* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | Since Inception 10/5/2011 | |||||||||||||
TrimTabs Float Shrink ETF NAV | 4.81 | % | -1.69 | % | 11.13 | % | 26.62 | % | ||||||||
TrimTabs Float Shrink ETF Market** | 5.06 | % | -1.45 | % | 11.73 | % | 26.93 | % | ||||||||
Russell 3000 Index | 3.92 | % | -3.15 | % | 9.32 | % | 11.39 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.29% and the net is 0.99%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | TrimTabs Float Shrink ETF commenced operations on October 5, 2011. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.
16
ADVISORSHARES TRUST
WCM/BNY Mellon Focused Growth ADR ETF (AADR)
The AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (NYSE Arca: AADR) declined by -8.36% from 06/30/2011 to the period ended 06/30/2012, outperforming the MSCI EAFE Index which declined -13.83%, or roughly 5½% net of AADR fees (MSCI EAFE is an index and does not include the management fees, which would further increase the outperformance of AADR).
Early in AADR’s fiscal year, performance was particularly aided by allocation, since the portfolio had less relative exposure to the economically sensitive sectors that offered up the greatest declines. On the other hand, country allocation was a headwind due to our limited presence (less than 5% of the portfolio) in Japan and the UK, both of which control significant weights in the index and outperformed meaningfully. Our large weighting in Switzerland also hurt. Like the US Dollar, the Swiss Franc typically does well during times of distress, but it depreciated significantly in early September 2011 when the Swiss National Bank intervened to buffer its export base.
Our exposure to emerging markets (EM) was a net positive, which may seem counter-intuitive given the significant decline in that part of the world in late 2011, but that’s consistent with past results and accounted for by the distinct nature of the holdings. Not only do they pass our test of simple-to-understand businesses with clean financials, low or no debt, and consistent earnings, but most are regionally diversified and/or derive a significant portion of their revenues from the developed world. But despite that latter point, we have always been adamant that our EM holdings will not find their way into the portfolio merely because of a seductive, top-down Gross Domestic Product (GDP) growth story, which often proves more fleeting than company factors. Instead, every EM holding must stand on its own two feet, passing our just mentioned attractive business test. As the calendar year 2011 drew to a close, stock selection contributed more, though sector allocations still helped.
The beginning of calendar 2012 was driven by a renewed appetite for risk, as cyclically-oriented and lower-quality equities led the market. The popular causes were improving economic data, undemanding valuations, and most notably, less fear about liquidity concerns in Europe. The credit for this last one goes to the European Central Bank’s new lending facility (known as the “LTRO”, for long-term refinancing operations). As would be expected, the portfolio lagged a bit during this lower-quality stretch, but once the euphoria over the LTRO came to an end, relative performance improved.
Our claim that the first few months of 2012 were a “low-quality rally” is supported by looking at the outperformance of individual companies on our broader watch list. When businesses leveraged four-to-seven times appreciate 40–50% on no meaningful news, you know you’re in the middle of a low-quality bounce. Fortunately, these kinds of environments always come and go, and tend to be fleeting. We think that’s because low-quality firms do not possess the characteristics required to deliver meaningful outperformance over a full cycle, let alone more than a few quarters.
During difficult market environments such as this one, it’s tempting to obsess over the latest analysis on the European banking crisis, the slowdown in China, or the deteriorating growth conditions in the U.S., all of which ostensibly contributed to drive the market down this past year. Let us suggest, though, that instead of that, WCM focused on exercising sound investment temperament and steadfastly remaining true to its investment process. As a result, AADR did well. We believe more investors may choose this alpha-producing AADR over other index-based options especially when the market turns down, and when lower quality stocks are likely to see significant declines.
Alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by beta. A positive Alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative Alpha indicates the portfolio has underperformed, given the expectations established by beta.
17
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 21, 2010* to June 30, 2012
HISTORICAL PERFORMANCE
Total Return as of June 30, 2012
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 7/21/2010 | ||||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF NAV | 3.31 | % | -7.29 | % | 3.41 | % | -7.94 | % | 8.02 | % | ||||||||||
WCM/BNY Mellon Focused Growth ADR ETF Market** | 3.26 | % | -7.36 | % | 2.86 | % | -8.36 | % | 7.98 | % | ||||||||||
MSCI EAFE Index | 7.01 | % | -7.13 | % | 2.96 | % | -13.83 | % | 8.84 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 3.04% and the net is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | WCM/BNY Mellon Focused Growth ADR ETF commenced operations on July 21, 2010. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. One cannot invest directly in an index.
18
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 June 30, 2012.
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 6/30/2012 | Annualized Expense Ratio for the Period* | Expenses Paid | ||||||||||||
Accuvest Global Long Short ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,031.60 | 1.50 | % | $ | 7.58 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.40 | 1.50 | % | $ | 7.52 | ||||||||
Accuvest Global Opportunities ETF(1) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 977.60 | 1.25 | % | $ | 5.30 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.09 | 1.25 | % | $ | 5.41 | ||||||||
Active Bear ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 933.20 | 1.68 | % | $ | 8.27 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.31 | 1.68 | % | $ | 8.62 | ||||||||
Cambria Global Tactical ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,010.20 | 0.99 | % | $ | 4.95 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,019.94 | 0.99 | % | $ | 4.97 |
19
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
Fund Name | Beginning Account Value | Ending Account Value 6/30/2012 | Annualized Expense Ratio for the Period* | Expenses Paid | ||||||||||||
Dent Tactical ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 947.80 | 1.50 | % | $ | 7.26 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.40 | 1.50 | % | $ | 7.52 | ||||||||
Global Echo ETF(2) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,016.80 | 1.50 | % | $ | 1.57 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,003.63 | 1.50 | % | $ | 1.56 | ||||||||
Madrona Domestic ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,078.40 | 1.25 | % | $ | 6.46 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.65 | 1.25 | % | $ | 6.27 | ||||||||
Madrona Global Bond ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,032.50 | 0.95 | % | $ | 4.80 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,020.14 | 0.95 | % | $ | 4.77 | ||||||||
Madrona International ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,037.90 | 1.25 | % | $ | 6.33 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.65 | 1.25 | % | $ | 6.27 | ||||||||
Meidell Tactical Advantage ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,023.60 | 1.35 | % | $ | 6.79 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.15 | 1.35 | % | $ | 6.77 | ||||||||
Peritus High Yield ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,072.50 | 1.35 | % | $ | 6.96 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.15 | 1.35 | % | $ | 6.77 | ||||||||
Rockledge SectorSAM ETF(3) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 987.50 | 1.50 | % | $ | 6.96 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.35 | 1.50 | % | $ | 7.07 | ||||||||
Trimtabs Float Shrink ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,111.30 | 0.99 | % | $ | 5.20 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,019.94 | 0.99 | % | $ | 4.97 | ||||||||
WCM/BNY Mellon Focused Growth ADR ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,034.10 | 1.25 | % | $ | 6.32 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.65 | 1.25 | % | $ | 6.27 |
* | Expense ratios reflect expense caps through the period ended June 30, 2012. |
(1) | Fund commenced operations on January 26, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 157/366 (to reflect commencement of operation). |
(2) | Fund commenced operations on May 23, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 38/366 (to reflect commencement of operation). |
(3) | Fund commenced operations on January 12, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 171/366 (to reflect commencement of operation). |
20
ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF(a)
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 97.5% | ||||||||
Equity Fund — 97.5% | ||||||||
iShares MSCI Malaysia Index Fund | 64,716 | $ | 923,497 | |||||
iShares MSCI Mexico Investable Market Index Fund | 16,732 | 1,028,181 | ||||||
iShares MSCI Russia Capped Index Fund (b) | 66,788 | 1,381,844 | ||||||
iShares MSCI South Africa Index Fund (b) | 44,671 | 2,854,477 | ||||||
iShares MSCI South Korea Index Fund (b) | 60,222 | 3,300,768 | ||||||
iShares MSCI Thailand Index Fund (b) | 37,946 | 2,620,551 | ||||||
iShares MSCI U.K. Index Fund (b) | 87,471 | 1,424,902 | ||||||
iShares Russell 2000 Index Fund | 15,837 | 1,261,417 | ||||||
iShares S&P 500 Index Fund (b) | 12,873 | 1,760,383 | ||||||
Wisdomtree India Earnings Fund | 58,938 | 1,015,502 | ||||||
Total Exchange Traded Funds (Cost $17,146,394) | 17,571,522 | |||||||
MONEY MARKET FUND — 0.0%† | ||||||||
Dreyfus Cash Management – Investor Class (Cost $6,620) | 6,620 | 6,620 | ||||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $17,153,014) | 17,578,142 | |||||||
Securities Sold, Not Yet Purchased | ||||||||
EXCHANGE TRADED FUNDS — (59.4)% | ||||||||
Equity Fund | ||||||||
iShares MSCI Austria Investable Market Index Fund | 114,180 | (1,643,050 | ) | |||||
iShares MSCI Canada Index Fund | 18,421 | (475,999 | ) | |||||
iShares MSCI Chile Investable Market Index Fund | 9,500 | (584,155 | ) | |||||
iShares MSCI France Index Fund | 53,042 | (1,038,562 | ) | |||||
iShares MSCI Hong Kong Index Fund | 29,000 | (475,600 | ) | |||||
iShares MSCI Italy Index Fund | 159,589 | (1,804,952 | ) | |||||
iShares MSCI Japan Index Fund | 84,977 | (799,634 | ) | |||||
iShares MSCI Netherlands Investable Market Index Fund | 34,975 | (597,233 | ) | |||||
iShares MSCI Spain Index Fund | 67,864 | (1,683,027 | ) | |||||
iShares MSCI Sweden Index Fund | 29,534 | (760,500 | ) | |||||
iShares MSCI Taiwan Index Fund | 69,571 | (850,853 | ) |
See accompanying Notes to Financial Statements.
21
ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF(a)
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Equity Fund — (59.4)% (continued) | ||||||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(10,869,298)] | $ | (10,713,565 | ) | |||||
Total Investments Net of Securities, Not Yet Purchased — 38.1% (Cost $6,283,716) | 6,864,577 | |||||||
Other Assets in Excess of Liabilities — 61.9% | 11,157,387 | |||||||
Net Assets — 100.0% | $ | 18,021,964 |
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Equity Fund | 38.1 | % | ||
Money Market Fund | 0.0 | † | ||
Total Investments | 38.1 | |||
Other Assets in Excess of Liabilities | 61.9 | |||
Net Assets | 100.0 | % |
† | Less than .05% |
(a) | Formerly Mars Hill Global Relative Value ETF. |
(b) | Represents security, or a portion thereof, segregated as collateral for securities sold, not yet purchased. |
Cash of $11,049,996 has been segregated to cover requirement for open short sales as of June 30, 2012.
See accompanying Notes to Financial Statements.
22
ADVISORSHARES TRUST
ACCUVEST GLOBAL OPPORTUNITIES ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 98.0% | ||||||||
Equity Fund — 98.0% | ||||||||
iShares MSCI Russia Capped Index Fund | 78,990 | $ | 1,634,303 | |||||
iShares MSCI South Africa Index Fund | 48,640 | 3,108,096 | ||||||
iShares MSCI South Korea Index Fund | 44,128 | 2,418,656 | ||||||
iShares MSCI Thailand Investable Market Index Fund | 40,174 | 2,774,416 | ||||||
iShares MSCI United Kingdom Index Fund | 93,790 | 1,527,839 | ||||||
iShares S&P 500 Index Fund | 12,570 | 1,718,948 | ||||||
Total Exchange Traded Funds (Cost $13,085,500) | 13,182,258 | |||||||
MONEY MARKET FUND — 2.1% | ||||||||
Dreyfus Cash Management – Institutional Class (Cost $279,261) | 279,261 | 279,261 | ||||||
Total Investments — 100.1% (Cost $13,364,761) | 13,461,519 | |||||||
Liabilities in Excess of Other Assets — (0.1%) | (19,266 | ) | ||||||
Net Assets — 100.0% | $ | 13,442,253 |
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Equity Fund | 98.0 | % | ||
Money Market Fund | 2.1 | |||
Total Investments | 100.1 | |||
Liabilities in Excess of Other Assets | (0.1 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
23
ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 58.7% | ||||||||
Fidelity Institutional Government Money Market Portfolio – Class III | 183,818,915 | $ | 183,818,915 | |||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $183,818,915) | ||||||||
Securities Sold, Not Yet Purchased — (96.2)% | ||||||||
COMMON STOCKS — (96.2)% | ||||||||
Aerospace/Defense — (7.0)% | ||||||||
Rockwell Collins, Inc. | 277,000 | (13,669,950 | ) | |||||
Spirit Aerosystems Holdings, Inc., Class A* | 347,978 | (8,292,315 | ) | |||||
Total Aerospace/Defense | (21,962,265 | ) | ||||||
Apparel — (4.2)% | ||||||||
Hanesbrands, Inc.* | 202,943 | (5,627,609 | ) | |||||
Steven Madden Ltd.* | 241,200 | (7,658,100 | ) | |||||
Total Apparel | (13,285,709 | ) | ||||||
Auto Parts & Equipment — (3.4)% | ||||||||
Goodyear Tire & Rubber Co. (The)* | 905,146 | (10,689,774 | ) | |||||
Banks — (9.8)% | ||||||||
Citigroup, Inc. | 681,595 | (18,682,519 | ) | |||||
Deutsche Bank AG (Germany)(a) | 330,000 | (11,936,100 | ) | |||||
Total Banks | (30,618,619 | ) | ||||||
Beverages — (2.9)% | ||||||||
Green Mountain Coffee Roasters, Inc.* | 412,000 | (8,973,360 | ) | |||||
Chemicals — (3.6)% | ||||||||
International Flavors & Fragrances, Inc. | 205,000 | (11,234,000 | ) | |||||
Commercial Services — (2.6)% | ||||||||
Ritchie Bros Auctioneers, Inc. (Canada) | 386,000 | (8,202,500 | ) | |||||
Computers — (2.1)% | ||||||||
Riverbed Technology, Inc.* | 417,000 | (6,734,550 | ) | |||||
Distribution/Wholesale — (1.9)% | ||||||||
Fossil, Inc.* | 76,000 | $ | (5,817,040 | ) |
See accompanying Notes to Financial Statements.
24
ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Electrical Components & Equipment — (4.9)% | ||||||||
Energizer Holdings, Inc.* | 112,385 | $ | (8,456,971 | ) | ||||
Graftech International Ltd.* | 701,539 | (6,769,851 | ) | |||||
Total Electrical Components & Equipment | (15,226,822 | ) | ||||||
Engineering & Construction — (2.8)% | ||||||||
Mastec, Inc.* | 587,000 | (8,828,480 | ) | |||||
Environmental Control — (2.4)% | ||||||||
Clean Harbors, Inc.* | 132,500 | (7,475,650 | ) | |||||
Food — (1.9)% | ||||||||
Sysco Corp. | 203,590 | (6,069,018 | ) | |||||
Healthcare — Products — (8.4)% | ||||||||
Hologic, Inc.* | 373,525 | (6,738,391 | ) | |||||
NxStage Medical, Inc.* | 516,222 | (8,651,881 | ) | |||||
Steris Corp. | 116,511 | (3,654,950 | ) | |||||
Varian Medical Systems, Inc.* | 119,000 | (7,231,630 | ) | |||||
Total Healthcare – Products | (26,276,852 | ) | ||||||
Healthcare — Services — (1.3)% | ||||||||
Mednax, Inc.* | 58,500 | (4,009,590 | ) | |||||
Home Builders — (1.6)% | ||||||||
Pultegroup, Inc.* | 461,000 | (4,932,700 | ) | |||||
Internet — (10.9)% | ||||||||
Ancestry.com, Inc.* | 136,181 | (3,749,063 | ) | |||||
Broadsoft, Inc.* | 231,500 | (6,704,240 | ) | |||||
Constant Contact, Inc.* | 384,386 | (6,872,822 | ) | |||||
HomeAway, Inc.* | 311,500 | (6,772,010 | ) | |||||
Netflix, Inc.* | 79,428 | (5,438,435 | ) | |||||
Splunk, Inc.* | 163,561 | (4,596,064 | ) | |||||
Total Internet | (34,132,634 | ) |
See accompanying Notes to Financial Statements.
25
ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Machinery – Diversified — (2.5)% | ||||||||
Flowserve Corp. | 69,500 | $ | (7,975,125 | ) | ||||
Miscellaneous Manufacturing — (0.8)% | ||||||||
Aptargroup, Inc. | 50,000 | (2,552,500 | ) | |||||
Retail — (10.6)% | ||||||||
Best Buy Co., Inc. | 405,116 | (8,491,231 | ) | |||||
CarMax, Inc.* | 413,500 | (10,726,190 | ) | |||||
Tiffany & Co. | 127,909 | (6,772,782 | ) | |||||
Williams-Sonoma, Inc. | 203,367 | (7,111,744 | ) | |||||
Total Retail | (33,101,947 | ) | ||||||
Software — (1.8)% | ||||||||
Salesforce.com, Inc.* | 41,200 | (5,696,312 | ) | |||||
Telecommunications — (8.8)% | ||||||||
Acme Packet, Inc.* | 360,000 | (6,714,000 | ) | |||||
Finisar Corp.* | 299,000 | (4,473,040 | ) | |||||
Telefonaktiebolaget LM Ericsson (Sweden)(b) | 1,127,000 | (10,289,510 | ) | |||||
ViaSat, Inc.* | 160,500 | (6,062,086 | ) | |||||
Total Telecommunications | (27,538,636 | ) | ||||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(307,924,664)] | (301,334,083 | ) | ||||||
Total Investments — (37.5)% [Cost $(124,105,749)] | (117,515,168 | ) | ||||||
Other Assets in Excess of Liabilities — 137.5% | 430,738,651 | |||||||
Net Assets — 100.0% | $ | 313,223,483 |
ADR — American Depositary Receipt
* | Non-income producing security |
(a) | Registered Shares |
(b) | American Depositary Receipt |
See accompanying Notes to Financial Statements.
26
ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Aerospace/Defense | (7.0 | )% | ||
Apparel | (4.2 | ) | ||
Auto Parts & Equipment | (3.4 | ) | ||
Banks | (9.8 | ) | ||
Beverages | (2.9 | ) | ||
Chemicals | (3.6 | ) | ||
Commercial Services | (2.6 | ) | ||
Computers | (2.1 | ) | ||
Distribution/Wholesale | (1.9 | ) | ||
Electrical Components & Equipment | (4.9 | ) | ||
Engineering & Construction | (2.8 | ) | ||
Environmental Control | (2.4 | ) | ||
Food | (1.9 | ) | ||
Healthcare – Products | (8.4 | ) | ||
Healthcare – Services | (1.3 | ) | ||
Home Builders | (1.6 | ) | ||
Internet | (10.9 | ) | ||
Machinery – Diversified | (2.5 | ) | ||
Miscellaneous Manufacturing | (0.8 | ) | ||
Retail | (10.6 | ) | ||
Software | (1.8 | ) | ||
Telecommunications | (8.8 | ) | ||
Money Market Fund | 58.7 | |||
Total Investments | (37.5 | ) | ||
Other Assets in Excess of Liabilities | 137.5 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
27
ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 89.6% | ||||||||
Currency Fund — 5.8% | ||||||||
CurrencyShares Japanese Yen Trust* | 2,466 | $ | 303,170 | |||||
PowerShares DB US Dollar Index Bullish Fund* | 189,162 | 4,250,470 | ||||||
Total Currency Fund | 4,553,640 | |||||||
Debt Fund — 44.8% | ||||||||
iShares Barclays 1 – 3 Year Treasury Bond Fund | 23,767 | 2,005,222 | ||||||
iShares Barclays 20+ Year Treasury Bond Fund | 20,826 | 2,607,415 | ||||||
iShares Barclays 3 – 7 Year Treasury Bond Fund | 16,297 | 2,004,531 | ||||||
iShares Barclays 7 – 10 Year Treasury Bond Fund | 18,561 | 2,003,289 | ||||||
iShares Barclays Aggregate Bond Fund | 18,043 | 2,008,186 | ||||||
iShares Barclays MBS Bond Fund | 19,558 | 2,120,870 | ||||||
iShares Barclays TIPS Bond Fund | 17,574 | 2,103,608 | ||||||
iShares iBoxx $ High Yield Corporate Bond Fund | 34,264 | 3,125,562 | ||||||
iShares iBoxx $ Investment Grade Corporate Bond Fund | 26,497 | 3,117,637 | ||||||
PIMCO Enhanced Short Maturity Strategy Fund | 19,856 | 2,007,241 | ||||||
PowerShares Emerging Markets Sovereign Debt Portfolio | 108,374 | 3,124,422 | ||||||
PowerShares Fundamental High Yield Corporate Bond Portfolio | 144,911 | 2,714,183 | ||||||
SPDR Barclays Capital International Treasury Bond ETF | 34,425 | 2,035,895 | ||||||
Vanguard Short-Term Bond ETF | 24,731 | 2,006,426 | ||||||
Vanguard Total Bond Market ETF | 23,792 | 2,007,569 | ||||||
Total Debt Fund | 34,992,056 | |||||||
Equity Fund — 39.0% | ||||||||
Consumer Discretionary Select Sector SPDR Fund | 28,454 | 1,245,716 | ||||||
Consumer Staples Select Sector SPDR Fund | 45,222 | 1,572,369 | ||||||
Financial Select Sector SPDR Fund | 32,744 | 478,717 | ||||||
Health Care Select Sector SPDR Fund | 20,600 | 782,800 | ||||||
iShares FTSE NAREIT Mortgage Plus Capped Index Fund | 174,202 | 2,471,926 | ||||||
iShares FTSE NAREIT Residential Plus Capped Index Fund | 51,422 | 2,473,398 | ||||||
iShares MSCI All Peru Capped Index Fund | 5,522 | 234,519 | ||||||
iShares MSCI Malaysia Index Fund | 32,661 | 466,073 | ||||||
iShares MSCI Mexico Investable Market Index Fund | 7,931 | 487,360 | ||||||
iShares MSCI South Africa Index Fund | 3,455 | 220,775 |
See accompanying Notes to Financial Statements.
28
ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Equity Fund — 39.0% (continued) | ||||||||
iShares MSCI Thailand Investable Market Index Fund | 8,948 | $ | 617,949 | |||||
iShares MSCI Turkey Investable Market Index Fund | 6,049 | 316,605 | ||||||
iShares Russell Microcap(R) Index Fund | 25,145 | 1,258,256 | ||||||
PowerShares FTSE RAFI US 1000 Portfolio | 16,396 | 953,757 | ||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | 14,689 | 947,587 | ||||||
PowerShares QQQ Trust, Series 1 | 10,113 | 648,850 | ||||||
SPDR Dow Jones International Real Estate ETF | 55,000 | 2,022,900 | ||||||
Technology Select Sector SPDR Fund | 42,899 | 1,233,346 | ||||||
Utilities Select Sector SPDR Fund | 11,303 | 418,098 | ||||||
Vanguard Global ex-U.S. Real Estate ETF | 39,864 | 1,899,918 | ||||||
Vanguard Mid-Cap ETF | 12,066 | 931,495 | ||||||
Vanguard REIT ETF | 107,883 | 7,058,785 | ||||||
Vanguard Small-Cap ETF | 6,299 | 478,976 | ||||||
Vanguard Total Stock Market ETF | 17,790 | 1,239,963 | ||||||
Total Equity Fund | 30,460,138 | |||||||
Total Exchange Traded Funds (Cost $67,678,401) | 70,005,834 | |||||||
MONEY MARKET FUND — 10.5% | ||||||||
Invesco Government & Agency Portfolio – Private Investment Class (Cost $8,250,175) | 8,250,175 | 8,250,175 | ||||||
Total Investments — 100.1% (Cost $75,928,576) | 78,256,009 | |||||||
Liabilities in Excess of Other Assets — (0.1%) | (85,061 | ) | ||||||
Net Assets — 100.0% | $ | 78,170,948 |
ETF — Exchange Traded Fund
MBS — Mortgage Backed Securities
REIT — Real Estate Investment Trust
TIPS — Treasury Inflation Protected Securities
* | Non-income producing security |
See accompanying Notes to Financial Statements.
29
ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
June 30, 2012
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Currency Fund | 5.8 | % | ||
Debt Fund | 44.8 | |||
Equity Fund | 39.0 | |||
Money Market Fund | 10.5 | |||
Total Investments | 100.1 | |||
Liabilities in Excess of Other Assets | (0.1 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
30
ADVISORSHARES TRUST
DENT TACTICAL ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 29.6% | ||||||||
Equity Fund — 29.6% | ||||||||
iShares Russell 1000 Index Fund | 4,419 | $ | 332,353 | |||||
iShares S&P 100 Index Fund | 5,285 | 330,154 | ||||||
iShares S&P 500 Growth Index Fund | 4,462 | 328,002 | ||||||
iShares S&P 500 Index Fund | 2,410 | 329,567 | ||||||
iShares S&P 500 Value Index Fund | 5,271 | 328,278 | ||||||
iShares S&P SmallCap 600 Growth Index Fund | 4,097 | 330,751 | ||||||
Total Exchange Traded Funds (Cost $1,910,323) | 1,979,105 | |||||||
MONEY MARKET FUND — 28.2% | ||||||||
Goldman Sachs Financial Square Money Market Fund – Institutional Class (Cost $1,882,099) | 1,882,099 | 1,882,099 | ||||||
Total Investments — 57.8% (Cost $3,792,422) | 3,861,204 | |||||||
Other Assets in Excess of Liabilities — 42.2% | 2,817,647 | |||||||
Net Assets — 100.0% | $ | 6,678,851 |
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Equity Fund | 29.6 | % | ||
Money Market Fund | 28.2 | |||
Total Investments | 57.8 | |||
Other Assets in Excess of Liabilities | 42.2 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
31
ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
COMMON STOCKS — 45.7% | ||||||||
Auto Manufacturers — 0.7% | ||||||||
Ford Motor Co. | 3,720 | $ | 35,675 | |||||
Auto Parts & Equipment — 1.5% | ||||||||
Johnson Controls, Inc. | 2,661 | 73,736 | ||||||
Banks — 1.9% | ||||||||
Banco Bradesco SA (Brazil)(a) | 3,041 | 45,219 | ||||||
City National Corp. | 519 | 25,213 | ||||||
Itau Unibanco Holding SA (Brazil)(a) | 1,816 | 25,279 | ||||||
Total Banks | 95,711 | |||||||
Biotechnology — 2.4% | ||||||||
Life Technologies Corp.* | 933 | 41,976 | ||||||
Novozymes A/S (Denmark)(a) | 3,139 | 80,986 | ||||||
Total Biotechnology | 122,962 | |||||||
Building Materials — 0.7% | ||||||||
TOTO Ltd. (Japan)(a) | 484 | 36,092 | ||||||
Commercial Services — 2.1% | ||||||||
Automatic Data Processing, Inc. | 699 | 38,906 | ||||||
MasterCard, Inc., Class A | 98 | 42,151 | ||||||
Zipcar, Inc.* | 2,293 | 26,897 | ||||||
Total Commercial Services | 107,954 | |||||||
Computers — 3.1% | ||||||||
Apple, Inc.* | 120 | 70,080 | ||||||
EMC Corp.* | 1,539 | 39,444 | ||||||
Maxwell Technologies, Inc.* | 3,585 | 23,518 | ||||||
Stratasys, Inc.* | 544 | 26,955 | ||||||
Total Computers | 159,997 | |||||||
Cosmetics/Personal Care — 1.0% | ||||||||
Procter & Gamble Co. (The) | 856 | 52,430 | ||||||
Distribution/Wholesale — 1.0% | ||||||||
LKQ Corp.* | 1,483 | 49,532 |
See accompanying Notes to Financial Statements.
32
ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Electronics — 1.2% | ||||||||
Itron, Inc.* | 1,467 | $ | 60,499 | |||||
Engineering & Construction — 0.5% | ||||||||
Aegion Corp., Class A* | 1,514 | 27,086 | ||||||
Environmental Control — 0.5% | ||||||||
Tomra Systems ASA (Norway)(a) | 3,004 | 25,744 | ||||||
Food — 4.2% | ||||||||
Annie's, Inc.* | 749 | 31,353 | ||||||
Hain Celestial Group, Inc. (The)* | 847 | 46,619 | ||||||
Nestle SA (Switzerland)(a) | 658 | 39,309 | ||||||
Smart Balance, Inc.* | 3,573 | 33,550 | ||||||
United Natural Foods, Inc.* | 1,164 | 63,857 | ||||||
Total Food | 214,688 | |||||||
Healthcare – Products — 0.7% | ||||||||
Covidien PLC (Ireland) | 708 | 37,878 | ||||||
Healthcare – Services — 0.8% | ||||||||
Laboratory Corp. of America Holdings* | 428 | 39,637 | ||||||
Home Builders — 0.8% | ||||||||
Daiwa House Industry Co. Ltd. (Japan)(a) | 282 | 39,833 | ||||||
Internet — 1.5% | ||||||||
F5 Networks, Inc.* | 336 | 33,452 | ||||||
Google, Inc., Class A* | 70 | 40,605 | ||||||
Total Internet | 74,057 | |||||||
Miscellaneous Manufacturing — 1.1% | ||||||||
Aptargroup, Inc. | 749 | 38,236 | ||||||
Pure Technologies Ltd. (Canada)* | 3,754 | 16,086 | ||||||
Total Miscellaneous Manufacturing | 54,322 | |||||||
Office Furnishings — 0.1% | ||||||||
Virco Manufacturing Corp.* | 2,153 | 3,488 |
See accompanying Notes to Financial Statements.
33
ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Office/Business Equipment — 0.5% | ||||||||
Canon, Inc. (Japan)(a) | 616 | $ | 24,603 | |||||
Oil & Gas — 1.4% | ||||||||
Devon Energy Corp. | 577 | 33,460 | ||||||
EnCana Corp. (Canada) | 1,886 | 39,286 | ||||||
Total Oil & Gas | 72,746 | |||||||
Pharmaceuticals — 4.5% | ||||||||
GlaxoSmithKline PLC (United Kingdom)(a) | 1,127 | 51,357 | ||||||
Johnson & Johnson | 667 | 45,063 | ||||||
Novartis AG (Switzerland)(a) | 938 | 52,434 | ||||||
Perrigo Co. | 337 | 39,742 | ||||||
Teva Pharmaceutical Industries Ltd. (Israel)(a) | 1,013 | 39,953 | ||||||
Total Pharmaceuticals | 228,549 | |||||||
Retail — 2.5% | ||||||||
Coinstar, Inc.* | 305 | 20,941 | ||||||
CVS Caremark Corp. | 1,111 | 51,917 | ||||||
Home Depot, Inc. (The) | 731 | 38,736 | ||||||
J.C. Penney Co., Inc. | 580 | 13,520 | ||||||
Total Retail | 125,114 | |||||||
Semiconductors — 2.6% | ||||||||
Broadcom Corp., Class A | 1,137 | 38,431 | ||||||
Cree, Inc.* | 1,022 | 26,235 | ||||||
Intel Corp. | 1,414 | 37,683 | ||||||
NXP Semiconductors NV (Netherlands)* | 1,193 | 27,737 | ||||||
Total Semiconductors | 130,086 | |||||||
Software — 1.1% | ||||||||
Adobe Systems, Inc.* | 667 | 21,591 | ||||||
Citrix Systems, Inc.* | 247 | 20,733 | ||||||
Informatica Corp.* | 330 | 13,979 | ||||||
Total Software | 56,303 | |||||||
Telecommunications — 4.5% | ||||||||
Cisco Systems, Inc. | 3,875 | 66,534 |
See accompanying Notes to Financial Statements.
34
ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Telecommunications — 4.5% (continued) | ||||||||
Corning, Inc. | 1,917 | $ | 24,787 | |||||
Millicom International Cellular S.A. (Luxembourg) | 455 | 42,734 | ||||||
Telefonica Brasil SA (Brazil)(a) | 1,295 | 32,038 | ||||||
Telenor ASA (Norway)(a) | 1,232 | 61,267 | ||||||
Total Telecommunications | 227,360 | |||||||
Transportation — 1.1% | ||||||||
Canadian National Railway Co. (Canada) | 287 | 24,217 | ||||||
Union Pacific Corp. | 248 | 29,589 | ||||||
Total Transportation | 53,806 | |||||||
Water — 1.7% | ||||||||
American Water Works Co., Inc. | 593 | 20,328 | ||||||
Severn Trent PLC (United Kingdom)(a) | 2,450 | 63,520 | ||||||
Total Water | 83,848 | |||||||
Total Common Stocks (Cost $2,252,288) | 2,313,736 | |||||||
MONEY MARKET FUNDS — 26.3% | ||||||||
Federated Government Obligations Fund | 811,927 | 811,927 | ||||||
Fidelity Institutional Money Market Government Portfolio – Class I | 146,807 | 146,807 | ||||||
Fidelity Institutional Money Market Portfolio – Institutional Class | 380,526 | 380,525 | ||||||
Total Money Market Funds (Cost $1,339,259) | 1,339,259 | |||||||
MORTGAGE BACKED SECURITIES — 5.3% | ||||||||
Government National Mortgage Association, Pool G2-783417, 4.50%, 08/20/41 (Cost $270,583) | 246,720 | 271,646 | ||||||
COMMERCIAL MORTGAGE BACKED SECURITIES — 6.6% | ||||||||
Government National Mortgage Association, Class B, Series 2011-64, 4.00%@, 10/16/44 (Cost $330,330) | 300,000 | 335,350 | ||||||
MUNICIPAL BONDS — 5.1% | ||||||||
Kirkwood Community College, GO Bonds, 5.40%, 06/01/13 | 90,000 | 93,870 | ||||||
Tippecanoe County School Building Corp., Revenue Bonds, (State Aid Withholding) 4.54%, 01/15/17 | 150,000 | 167,864 | ||||||
Total Municipal Bonds (Cost $263,257) | 261,734 |
See accompanying Notes to Financial Statements.
35
ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
ASSET BACKED SECURITIES — 3.7% | ||||||||
SBA 100087, 4.58%, 09/25/36 (Cost $185,883) | 173,538 | $ | 186,499 | |||||
EXCHANGE TRADED FUNDS — 9.7% | ||||||||
Equity Fund — 9.7% | ||||||||
Active Bear ETF (The)*† | 1,846 | 43,049 | ||||||
Global X Lithium ETF | 1,852 | 27,576 | ||||||
Guggenheim S&P Global Water Index ETF | 960 | 19,670 | ||||||
PowerShares Cleantech Portfolio | 874 | 18,468 | ||||||
PowerShares Global Clean Energy Portfolio | 6,450 | 49,085 | ||||||
PowerShares Water Resources Portfolio | 1,757 | 31,890 | ||||||
PowerShares Wilderhill Clean Energy Portfolio | 8,060 | 35,625 | ||||||
Proshares Short FTSE China 25* | 691 | 30,411 | ||||||
Proshares Short Midcap 400* | 1,629 | 45,677 | ||||||
Proshares Short MSCI EAFE* | 1,780 | 86,616 | ||||||
Proshares Short MSCI Emerging Markets* | 1,310 | 40,649 | ||||||
Proshares Short QQQ* | 200 | 5,320 | ||||||
Proshares Short Russell 2000* | 261 | 6,932 | ||||||
Proshares Short S&P 500* | 800 | 29,184 | ||||||
Proshares Short Smallcap 600* | 1,051 | 24,257 | ||||||
Total Equity Fund | 494,409 | |||||||
Total Exchange Traded Funds (Cost $502,573) | 494,409 | |||||||
Total Investments — 102.4% (Cost $5,144,173) | 5,202,633 | |||||||
Liabilities in Excess of Other Assets — (2.4%) | (123,016 | ) | ||||||
Net Assets — 100.0% | $ | 5,079,617 |
ETF – Exchange Traded Fund
(a) | American Depositary Receipt |
* | Non-income producing security |
@ | Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2012. |
† | Affiliated company. |
See accompanying Notes to Financial Statements.
36
ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Asset Backed Securities | 3.7 | % | ||
Auto Manufacturers | 0.7 | |||
Auto Parts & Equipment | 1.5 | |||
Banks | 1.9 | |||
Biotechnology | 2.4 | |||
Building Materials | 0.7 | |||
Commercial Mortgage Backed Securities | 6.6 | |||
Commercial Services | 2.1 | |||
Computers | 3.1 | |||
Cosmetics/Personal Care | 1.0 | |||
Distribution / Wholesale | 1.0 | |||
Electronics | 1.2 | |||
Engineering & Construction | 0.5 | |||
Environmental Control | 0.5 | |||
Equity Fund | 9.7 | |||
Food | 4.2 | |||
Healthcare – Products | 0.7 | |||
Healthcare – Services | 0.8 | |||
Home Builders | 0.8 | |||
Internet | 1.5 | |||
Miscellaneous Manufacturing | 1.1 | |||
Mortgage Backed Securities | 5.3 | |||
Municipal Bonds | 5.1 | |||
Office Furnishings | 0.1 | |||
Office/Business Equipment | 0.5 | |||
Oil & Gas | 1.4 | |||
Pharmaceuticals | 4.5 | |||
Retail | 2.5 | |||
Semiconductors | 2.6 | |||
Software | 1.1 | |||
Telecommunications | 4.5 | |||
Transportation | 1.1 | |||
Water | 1.7 | |||
Money Market Fund | 26.3 | |||
Total Investments | 102.4 | |||
Liabilities in Excess of Other Assets | (2.4 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
37
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
COMMON STOCKS — 99.4% | ||||||||
Advertising — 0.2% | ||||||||
Omnicom Group, Inc. | 536 | $ | 26,050 | |||||
Aerospace/Defense — 2.1% | ||||||||
Boeing Co. (The) | 391 | 29,051 | ||||||
General Dynamics Corp. | 556 | 36,674 | ||||||
Goodrich Corp. | 298 | 37,816 | ||||||
L-3 Communications Holdings, Inc. | 281 | 20,797 | ||||||
Lockheed Martin Corp. | 285 | 24,818 | ||||||
Northrop Grumman Corp. | 140 | 8,931 | ||||||
Raytheon Co. | 634 | 35,878 | ||||||
Rockwell Collins, Inc. | 567 | 27,981 | ||||||
TransDigm Group, Inc.* | 447 | 60,032 | ||||||
United Technologies Corp. | 487 | 36,783 | ||||||
Total Aerospace/Defense | 318,761 | |||||||
Agriculture — 1.1% | ||||||||
Altria Group, Inc. | 700 | 24,185 | ||||||
Archer-Daniels-Midland Co. | 667 | 19,690 | ||||||
Bunge Ltd. (Bermuda) | 774 | 48,561 | ||||||
Lorillard, Inc. | 248 | 32,723 | ||||||
Philip Morris International, Inc. | 282 | 24,607 | ||||||
Reynolds American, Inc. | 523 | 23,467 | ||||||
Total Agriculture | 173,233 | |||||||
Airlines — 1.3% | ||||||||
Delta Air Lines, Inc.* | 7,112 | 77,876 | ||||||
Southwest Airlines Co. | 9,550 | 88,051 | ||||||
United Continental Holdings, Inc.* | 1,099 | 26,739 | ||||||
Total Airlines | 192,666 | |||||||
Apparel — 0.7% | ||||||||
Coach, Inc. | 485 | 28,363 | ||||||
Nike, Inc., Class B | 289 | 25,368 | ||||||
Ralph Lauren Corp. | 177 | 24,791 | ||||||
VF Corp. | 241 | 32,161 | ||||||
Total Apparel | 110,683 |
See accompanying Notes to Financial Statements.
38
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Auto Manufacturers — 1.0% | ||||||||
Ford Motor Co. | 3,520 | $ | 33,757 | |||||
General Motors Co.* | 3,127 | 61,664 | ||||||
PACCAR, Inc. | 1,358 | 53,220 | ||||||
Total Auto Manufacturers | 148,641 | |||||||
Auto Parts & Equipment — 0.8% | ||||||||
BorgWarner, Inc.* | 663 | 43,486 | ||||||
Johnson Controls, Inc. | 1,787 | 49,518 | ||||||
TRW Automotive Holdings Corp.* | 728 | 26,761 | ||||||
Total Auto Parts & Equipment | 119,765 | |||||||
Banks — 4.4% | ||||||||
Bank of America Corp. | 2,885 | 23,599 | ||||||
Bank of New York Mellon Corp. (The) | 2,111 | 46,336 | ||||||
BB&T Corp. | 1,308 | 40,352 | ||||||
Capital One Financial Corp. | 697 | 38,098 | ||||||
CIT Group, Inc.* | 366 | 13,044 | ||||||
Citigroup, Inc. | 1,253 | 34,345 | ||||||
Comerica, Inc. | 525 | 16,123 | ||||||
Fifth Third Bancorp | 1,852 | 24,817 | ||||||
Goldman Sachs Group, Inc. (The) | 336 | 32,209 | ||||||
Huntington Bancshares, Inc. | 3,441 | 22,022 | ||||||
JPMorgan Chase & Co. | 720 | 25,726 | ||||||
KeyCorp | 2,103 | 16,277 | ||||||
M&T Bank Corp. | 421 | 34,762 | ||||||
Morgan Stanley | 2,761 | 40,283 | ||||||
Northern Trust Corp. | 926 | 42,615 | ||||||
PNC Financial Services Group, Inc. | 345 | 21,083 | ||||||
Regions Financial Corp. | 3,443 | 23,240 | ||||||
State Street Corp. | 1,082 | 48,300 | ||||||
SunTrust Banks, Inc. | 1,896 | 45,940 | ||||||
US Bancorp | 1,107 | 35,601 | ||||||
Wells Fargo & Co. | 1,395 | 46,649 | ||||||
Total Banks | 671,421 | |||||||
Beverages — 1.5% | ||||||||
Beam, Inc. | 317 | 19,809 | ||||||
Brown-Forman Corp., Class B | 180 | 17,433 |
See accompanying Notes to Financial Statements.
39
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Beverages — 1.5% (continued) | ||||||||
Coca-Cola Co. (The) | 272 | $ | 21,268 | |||||
Coca-Cola Enterprises, Inc. | 1,212 | 33,984 | ||||||
Dr Pepper Snapple Group, Inc. | 743 | 32,506 | ||||||
Green Mountain Coffee Roasters, Inc.* | 1,734 | 37,767 | ||||||
Molson Coors Brewing Co., Class B | 523 | 21,762 | ||||||
Monster Beverage Corp.* | 334 | 23,781 | ||||||
PepsiCo, Inc. | 186 | 13,143 | ||||||
Total Beverages | 221,453 | |||||||
Biotechnology — 2.4% | ||||||||
Alexion Pharmaceuticals, Inc.* | 211 | 20,952 | ||||||
Amgen, Inc. | 580 | 42,363 | ||||||
Biogen Idec, Inc.* | 201 | 29,021 | ||||||
Celgene Corp.* | 806 | 51,713 | ||||||
Gilead Sciences, Inc.* | 1,114 | 57,126 | ||||||
Illumina, Inc.* | 358 | 14,460 | ||||||
Life Technologies Corp.* | 863 | 38,826 | ||||||
Vertex Pharmaceuticals, Inc.* | 2,008 | 112,287 | ||||||
Total Biotechnology | 366,748 | |||||||
Chemicals — 3.8% | ||||||||
Air Products & Chemicals, Inc. | 347 | 28,013 | ||||||
Airgas, Inc. | 380 | 31,924 | ||||||
Albemarle Corp. | 726 | 43,299 | ||||||
Celanese Corp., Series A | 1,163 | 40,263 | ||||||
CF Industries Holdings, Inc. | 378 | 73,234 | ||||||
Dow Chemical Co. (The) | 929 | 29,264 | ||||||
E.I. du Pont de Nemours & Co. | 644 | 32,567 | ||||||
Eastman Chemical Co. | 639 | 32,186 | ||||||
Ecolab, Inc. | 516 | 35,361 | ||||||
FMC Corp. | 570 | 30,484 | ||||||
Monsanto Co. | 308 | 25,496 | ||||||
Mosaic Co. (The) | 1,000 | 54,760 | ||||||
PPG Industries, Inc. | 401 | 42,554 | ||||||
Praxair, Inc. | 216 | 23,486 | ||||||
Sherwin-Williams Co. (The) | 268 | 35,470 | ||||||
Sigma-Aldrich Corp. | 283 | 20,922 | ||||||
Total Chemicals | 579,283 |
See accompanying Notes to Financial Statements.
40
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Commercial Services — 2.5% | ||||||||
Alliance Data Systems Corp.* | 395 | $ | 53,325 | |||||
Automatic Data Processing, Inc. | 375 | 20,873 | ||||||
Hertz Global Holdings, Inc.* | 4,568 | 58,470 | ||||||
MasterCard, Inc., Class A | 106 | 45,592 | ||||||
Moody's Corp. | 859 | 31,396 | ||||||
Paychex, Inc. | 611 | 19,192 | ||||||
Verisk Analytics, Inc., Class A* | 459 | 22,610 | ||||||
Visa, Inc., Class A | 410 | 50,688 | ||||||
Weight Watchers International, Inc. | 469 | 24,182 | ||||||
Western Union Co. (The) | 2,925 | 49,257 | ||||||
Total Commercial Services | 375,585 | |||||||
Computers — 3.1% | ||||||||
Apple, Inc.* | 128 | 74,752 | ||||||
Cognizant Technology Solutions Corp., Class A* | 599 | 35,940 | ||||||
Dell, Inc.* | 1,674 | 20,958 | ||||||
EMC Corp.* | 1,450 | 37,164 | ||||||
Hewlett-Packard Co. | 3,346 | 67,288 | ||||||
IHS, Inc., Class A* | 377 | 40,614 | ||||||
International Business Machines Corp. | 187 | 36,573 | ||||||
NetApp, Inc.* | 1,025 | 32,616 | ||||||
SanDisk Corp.* | 1,165 | 42,499 | ||||||
Teradata Corp.* | 374 | 26,932 | ||||||
Western Digital Corp.* | 1,585 | 48,311 | ||||||
Total Computers | 463,647 | |||||||
Cosmetics/Personal Care — 0.6% | ||||||||
Avon Products, Inc. | 1,584 | 25,676 | ||||||
Colgate-Palmolive Co. | 187 | 19,467 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 409 | 22,135 | ||||||
Procter & Gamble Co. (The) | 307 | 18,804 | ||||||
Total Cosmetics/Personal Care | 86,082 | |||||||
Distribution/Wholesale — 0.5% | ||||||||
Fastenal Co. | 338 | 13,625 | ||||||
Fossil, Inc.* | 302 | 23,115 |
See accompanying Notes to Financial Statements.
41
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Distribution/Wholesale — 0.5% (continued) | ||||||||
Genuine Parts Co. | 325 | $ | 19,581 | |||||
W.W. Grainger, Inc. | 125 | 23,905 | ||||||
Total Distribution/Wholesale | 80,226 | |||||||
Diversified Financial Services — 3.1% | ||||||||
Affiliated Managers Group, Inc.* | 400 | 43,780 | ||||||
American Express Co. | 701 | 40,805 | ||||||
Ameriprise Financial, Inc. | 1,003 | 52,417 | ||||||
BlackRock, Inc. | 155 | 26,322 | ||||||
Charles Schwab Corp. (The) | 2,126 | 27,489 | ||||||
CME Group, Inc. | 85 | 22,789 | ||||||
Discover Financial Services | 1,506 | 52,078 | ||||||
Franklin Resources, Inc. | 286 | 31,743 | ||||||
IntercontinentalExchange, Inc.* | 236 | 32,091 | ||||||
Invesco Ltd. (Bermuda) | 1,488 | 33,629 | ||||||
NYSE Euronext | 1,417 | 36,247 | ||||||
SLM Corp. | 641 | 10,070 | ||||||
T. Rowe Price Group, Inc. | 440 | 27,703 | ||||||
TD Ameritrade Holding Corp. | 1,601 | 27,217 | ||||||
Total Diversified Financial Services | 464,380 | |||||||
Electric — 2.1% | ||||||||
AES Corp. (The)* | 3,529 | 45,277 | ||||||
American Electric Power Co., Inc. | 287 | 11,451 | ||||||
Calpine Corp.* | 1,420 | 23,444 | ||||||
CMS Energy Corp. | 698 | 16,403 | ||||||
Consolidated Edison, Inc. | 171 | 10,635 | ||||||
Dominion Resources, Inc. | 259 | 13,986 | ||||||
DTE Energy Co. | 188 | 11,154 | ||||||
Duke Energy Corp.* | 582 | 13,421 | ||||||
Edison International | 271 | 12,520 | ||||||
FirstEnergy Corp. | 194 | 9,543 | ||||||
NextEra Energy, Inc. | 256 | 17,615 | ||||||
Northeast Utilities | 410 | 15,912 | ||||||
PG&E Corp. | 338 | 15,301 | ||||||
PPL Corp. | 638 | 17,743 | ||||||
Progress Energy, Inc. | 186 | 11,192 | ||||||
Public Service Enterprise Group, Inc. | 353 | 11,473 |
See accompanying Notes to Financial Statements.
42
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Electric — 2.1% (continued) | ||||||||
SCANA Corp. | 247 | $ | 11,816 | |||||
Southern Co. (The) | 293 | 13,566 | ||||||
Wisconsin Energy Corp. | 386 | 15,274 | ||||||
Xcel Energy, Inc. | 541 | 15,370 | ||||||
Total Electric | 313,096 | |||||||
Electrical Components & Equipment — 0.5% | ||||||||
AMETEK, Inc. | 686 | 34,238 | ||||||
Emerson Electric Co. | 867 | 40,385 | ||||||
Total Electrical Components & Equipment | 74,623 | |||||||
Electronics — 1.8% | ||||||||
Agilent Technologies, Inc. | 1,093 | 42,889 | ||||||
Amphenol Corp., Class A | 691 | 37,950 | ||||||
Honeywell International, Inc. | 822 | 45,900 | ||||||
Mettler-Toledo International, Inc.* | 163 | 25,404 | ||||||
Thermo Fisher Scientific, Inc. | 875 | 45,421 | ||||||
Trimble Navigation Ltd.* | 952 | 43,802 | ||||||
Waters Corp.* | 324 | 25,748 | ||||||
Total Electronics | 267,114 | |||||||
Engineering & Construction — 0.5% | ||||||||
Fluor Corp. | 749 | 36,956 | ||||||
Jacobs Engineering Group, Inc.* | 1,082 | 40,964 | ||||||
Total Engineering & Construction | 77,920 | |||||||
Environmental Control — 0.5% | ||||||||
Republic Services, Inc. | 797 | 21,089 | ||||||
Stericycle, Inc.* | 315 | 28,876 | ||||||
Waste Management, Inc. | 565 | 18,871 | ||||||
Total Environmental Control | 68,836 | |||||||
Food — 2.2% | ||||||||
Campbell Soup Co. | 409 | 13,652 | ||||||
ConAgra Foods, Inc. | 671 | 17,399 | ||||||
General Mills, Inc. | 485 | 18,692 | ||||||
H.J. Heinz Co. | 379 | 20,610 | ||||||
Hershey Co. (The) | 240 | 17,287 | ||||||
Hillshire Brands Co. | 150 | 4,349 |
See accompanying Notes to Financial Statements.
43
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Food — 2.2% (continued) | ||||||||
Hormel Foods Corp. | 940 | $ | 28,595 | |||||
JM Smucker Co. (The) | 205 | 15,482 | ||||||
Kellogg Co. | 409 | 20,176 | ||||||
Kraft Foods, Inc., Class A | 805 | 31,089 | ||||||
Kroger Co. (The) | 1,797 | 41,672 | ||||||
McCormick & Co., Inc. | 356 | 21,591 | ||||||
DE Master Blenders 1753 NV (Netherlands)* | 750 | 8,481 | ||||||
Sysco Corp. | 545 | 16,247 | ||||||
Tyson Foods, Inc., Class A | 1,981 | 37,302 | ||||||
Whole Foods Market, Inc. | 232 | 22,114 | ||||||
Total Food | 334,738 | |||||||
Forest Products & Paper — 0.1% | ||||||||
International Paper Co. | 400 | 11,564 | ||||||
Gas — 0.4% | ||||||||
CenterPoint Energy, Inc. | 555 | 11,472 | ||||||
NiSource, Inc. | 1,111 | 27,497 | ||||||
Sempra Energy | 308 | 21,215 | ||||||
Total Gas | 60,184 | |||||||
Hand/Machine Tools — 0.2% | ||||||||
Stanley Black & Decker, Inc. | 563 | 36,235 | ||||||
Healthcare – Products — 3.2% | ||||||||
Baxter International, Inc. | 485 | 25,778 | ||||||
Becton Dickinson and Co. | 363 | 27,134 | ||||||
Boston Scientific Corp.* | 2,771 | 15,712 | ||||||
C.R. Bard, Inc. | 275 | 29,546 | ||||||
CareFusion Corp.* | 1,449 | 37,210 | ||||||
DENTSPLY International, Inc. | 667 | 25,219 | ||||||
Edwards Lifesciences Corp.* | 548 | 56,609 | ||||||
Henry Schein, Inc.* | 374 | 29,355 | ||||||
Hologic, Inc.* | 1,158 | 20,890 | ||||||
Hospira, Inc.* | 768 | 26,865 | ||||||
Intuitive Surgical, Inc.* | 43 | 23,813 | ||||||
Medtronic, Inc. | 733 | 28,389 | ||||||
St. Jude Medical, Inc. | 773 | 30,851 | ||||||
Stryker Corp. | 672 | 37,027 |
See accompanying Notes to Financial Statements.
44
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Healthcare – Products — 3.2% (continued) | ||||||||
Varian Medical Systems, Inc.* | 526 | $ | 31,965 | |||||
Zimmer Holdings, Inc. | 584 | 37,586 | ||||||
Total Healthcare – Products | 483,949 | |||||||
Healthcare – Services — 2.8% | ||||||||
Aetna, Inc. | 1,058 | 41,019 | ||||||
Cigna Corp. | 1,087 | 47,828 | ||||||
DaVita, Inc.* | 470 | 46,159 | ||||||
HCA Holdings, Inc. | 2,753 | 83,774 | ||||||
Humana, Inc. | 452 | 35,003 | ||||||
Laboratory Corp. of America Holdings* | 434 | 40,193 | ||||||
Quest Diagnostics, Inc. | 621 | 37,198 | ||||||
UnitedHealth Group, Inc. | 785 | 45,922 | ||||||
WellPoint, Inc. | 697 | 44,461 | ||||||
Total Healthcare – Services | 421,557 | |||||||
Home Furnishings — 0.1% | ||||||||
Whirlpool Corp. | 277 | 16,941 | ||||||
Household Products/Wares — 0.4% | ||||||||
Church & Dwight Co., Inc. | 452 | 25,073 | ||||||
Clorox Co. (The) | 289 | 20,941 | ||||||
Kimberly-Clark Corp. | 221 | 18,513 | ||||||
Total Household Products/Wares | 64,527 | |||||||
Insurance — 4.4% | ||||||||
Aflac, Inc. | 1,196 | 50,938 | ||||||
Allstate Corp. (The) | 1,498 | 52,565 | ||||||
American International Group, Inc.* | 1,587 | 50,927 | ||||||
Aon PLC | 583 | 27,273 | ||||||
Berkshire Hathaway, Inc., Class B* | 145 | 12,083 | ||||||
Chubb Corp. (The) | 545 | 39,687 | ||||||
Cincinnati Financial Corp. | 335 | 12,753 | ||||||
CNA Financial Corp. | 1,014 | 28,108 | ||||||
Hartford Financial Services Group, Inc. (The) | 3,712 | 65,442 | ||||||
Lincoln National Corp. | 2,137 | 46,736 | ||||||
Marsh & McLennan Cos., Inc. | 930 | 29,974 | ||||||
MetLife, Inc. | 1,553 | 47,910 | ||||||
Principal Financial Group, Inc. | 1,873 | 49,129 |
See accompanying Notes to Financial Statements.
45
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Insurance — 4.4% (continued) | ||||||||
Progressive Corp. (The) | 770 | $ | 16,039 | |||||
Prudential Financial, Inc. | 884 | 42,812 | ||||||
Travelers Cos., Inc. (The) | 727 | 46,412 | ||||||
Unum Group | 2,203 | 42,143 | ||||||
Total Insurance | 660,931 | |||||||
Internet — 2.2% | ||||||||
Amazon.com, Inc.* | 42 | 9,591 | ||||||
eBay, Inc.* | 1,053 | 44,237 | ||||||
Equinix, Inc.* | 119 | 20,902 | ||||||
F5 Networks, Inc.* | 255 | 25,388 | ||||||
Google, Inc., Class A* | 85 | 49,306 | ||||||
Groupon, Inc., Class A* | 362 | 3,848 | ||||||
LinkedIn Corp., Class A* | 87 | 9,245 | ||||||
Priceline.com, Inc.* | 71 | 47,181 | ||||||
Rackspace Hosting, Inc.* | 273 | 11,996 | ||||||
Symantec Corp.* | 2,517 | 36,773 | ||||||
VeriSign, Inc. | 779 | 33,941 | ||||||
Yahoo! Inc.* | 1,936 | 30,647 | ||||||
Zynga, Inc., Class A* | 1,771 | 9,634 | ||||||
Total Internet | 332,689 | |||||||
Iron/Steel — 0.4% | ||||||||
Cliffs Natural Resources, Inc. | 818 | 40,319 | ||||||
Nucor Corp. | 384 | 14,554 | ||||||
Total Iron/Steel | 54,873 | |||||||
Leisure Time — 0.4% | ||||||||
Carnival Corp. (Panama) | 394 | 13,503 | ||||||
Harley-Davidson, Inc. | 632 | 28,901 | ||||||
Royal Caribbean Cruises Ltd. (Liberia) | 965 | 25,119 | ||||||
Total Leisure Time | 67,523 | |||||||
Lodging — 1.5% | ||||||||
Hyatt Hotels Corp., Class A* | 403 | 14,976 | ||||||
Las Vegas Sands Corp. | 921 | 40,054 | ||||||
Marriott International, Inc., Class A | 866 | 33,947 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 699 | 37,075 | ||||||
Wyndham Worldwide Corp. | 1,077 | 56,801 |
See accompanying Notes to Financial Statements.
46
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Lodging — 1.5% (continued) | ||||||||
Wynn Resorts Ltd. | 453 | $ | 46,985 | |||||
Total Lodging | 229,838 | |||||||
Machinery – Construction & Mining — 0.7% | ||||||||
Caterpillar, Inc. | 657 | 55,786 | ||||||
Joy Global, Inc. | 946 | 53,666 | ||||||
Total Machinery – Construction & Mining | 109,452 | |||||||
Machinery – Diversified — 1.5% | ||||||||
Cummins, Inc. | 664 | 64,348 | ||||||
Deere & Co. | 622 | 50,301 | ||||||
Flowserve Corp. | 346 | 39,703 | ||||||
Rockwell Automation, Inc. | 561 | 37,060 | ||||||
Roper Industries, Inc. | 324 | 31,940 | ||||||
Total Machinery – Diversified | 223,352 | |||||||
Media — 4.6% | ||||||||
CBS Corp., Class B | 1,526 | 50,022 | ||||||
Comcast Corp., Class A | 1,562 | 49,937 | ||||||
DIRECTV, Class A* | 1,281 | 62,538 | ||||||
Discovery Communications, Inc., Class A* | 1,056 | 57,024 | ||||||
DISH Network Corp., Class A | 693 | 19,785 | ||||||
Liberty Global, Inc., Class A* | 1,060 | 52,608 | ||||||
McGraw-Hill Cos., Inc. (The) | 716 | 32,220 | ||||||
News Corp., Class A | 2,798 | 62,367 | ||||||
Scripps Networks Interactive, Inc., Class A | 914 | 51,970 | ||||||
Sirius XM Radio, Inc.* | 30,497 | 56,420 | ||||||
Time Warner Cable, Inc. | 647 | 53,119 | ||||||
Time Warner, Inc. | 1,384 | 53,284 | ||||||
Viacom, Inc., Class B | 1,196 | 56,236 | ||||||
Walt Disney Co. (The) | 957 | 46,415 | ||||||
Total Media | 703,945 | |||||||
Metal Fabricate/Hardware — 0.2% | ||||||||
Precision Castparts Corp. | 219 | 36,023 | ||||||
Mining — 0.8% | ||||||||
Alcoa, Inc. | 5,086 | 44,502 | ||||||
Freeport-McMoRan Copper & Gold, Inc. | 590 | 20,101 |
See accompanying Notes to Financial Statements.
47
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Mining — 0.8% (continued) | ||||||||
Southern Copper Corp. | 1,709 | $ | 53,851 | |||||
Total Mining | 118,454 | |||||||
Miscellaneous Manufacturing — 2.5% | ||||||||
3M Co. | 377 | 33,779 | ||||||
Danaher Corp. | 793 | 41,299 | ||||||
Dover Corp. | 858 | 45,997 | ||||||
Eaton Corp. | 1,028 | 40,740 | ||||||
General Electric Co. | 2,456 | 51,183 | ||||||
Illinois Tool Works, Inc. | 618 | 32,686 | ||||||
Pall Corp. | 587 | 32,174 | ||||||
Parker Hannifin Corp. | 413 | 31,752 | ||||||
Textron, Inc. | 2,538 | 63,120 | ||||||
Total Miscellaneous Manufacturing | 372,730 | |||||||
Office/Business Equipment — 0.3% | ||||||||
Xerox Corp. | 6,065 | 47,732 | ||||||
Oil & Gas — 6.5% | ||||||||
Anadarko Petroleum Corp. | 606 | 40,117 | ||||||
Apache Corp. | 432 | 37,968 | ||||||
Cabot Oil & Gas Corp. | 1,312 | 51,693 | ||||||
Chesapeake Energy Corp. | 593 | 11,030 | ||||||
Chevron Corp. | 67 | 7,069 | ||||||
Cimarex Energy Co. | 190 | 10,473 | ||||||
Concho Resources, Inc.* | 531 | 45,199 | ||||||
CONSOL Energy, Inc. | 268 | 8,104 | ||||||
Continental Resources, Inc.* | 263 | 17,521 | ||||||
Denbury Resources, Inc.* | 3,776 | 57,055 | ||||||
Devon Energy Corp. | 479 | 27,777 | ||||||
Diamond Offshore Drilling, Inc. | 784 | 46,358 | ||||||
EOG Resources, Inc. | 500 | 45,055 | ||||||
EQT Corp. | 1,136 | 60,924 | ||||||
Exxon Mobil Corp. | 298 | 25,500 | ||||||
Helmerich & Payne, Inc. | 957 | 41,610 | ||||||
Hess Corp. | 853 | 37,063 | ||||||
HollyFrontier Corp. | 2,021 | 71,604 | ||||||
Linn Energy LLC | 316 | 12,040 |
See accompanying Notes to Financial Statements.
48
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Oil & Gas — 6.5% (continued) | ||||||||
Marathon Oil Corp. | 634 | $ | 16,211 | |||||
Marathon Petroleum Corp. | 1,305 | 58,621 | ||||||
Murphy Oil Corp. | 633 | 31,834 | ||||||
Noble Energy, Inc. | 92 | 7,803 | ||||||
Occidental Petroleum Corp. | 590 | 50,604 | ||||||
Peabody Energy Corp. | 1,849 | 45,337 | ||||||
Pioneer Natural Resources Co. | 729 | 64,305 | ||||||
Range Resources Corp. | 203 | 12,560 | ||||||
Southwestern Energy Co.* | 307 | 9,803 | ||||||
Whiting Petroleum Corp.* | 1,052 | 43,258 | ||||||
Total Oil & Gas | 994,496 | |||||||
Oil & Gas Services — 2.2% | ||||||||
Baker Hughes, Inc. | 1,550 | 63,705 | ||||||
Cameron International Corp.* | 1,030 | 43,991 | ||||||
FMC Technologies, Inc.* | 950 | 37,269 | ||||||
Halliburton Co. | 1,958 | 55,588 | ||||||
National Oilwell Varco, Inc. | 717 | 46,203 | ||||||
Oceaneering International, Inc. | 878 | 42,021 | ||||||
Schlumberger Ltd. (Curacao) | 814 | 52,837 | ||||||
Total Oil & Gas Services | 341,614 | |||||||
Packaging & Containers — 0.2% | ||||||||
Ball Corp. | 862 | 35,385 | ||||||
Pharmaceuticals — 3.2% | ||||||||
Abbott Laboratories | 513 | 33,073 | ||||||
Allergan, Inc. | 273 | 25,272 | ||||||
AmerisourceBergen Corp. | 1,193 | 46,944 | ||||||
Bristol-Myers Squibb Co. | 285 | 10,246 | ||||||
Cardinal Health, Inc. | 1,152 | 48,384 | ||||||
Express Scripts, Inc.* | 949 | 52,983 | ||||||
Johnson & Johnson | 262 | 17,701 | ||||||
McKesson Corp. | 588 | 55,125 | ||||||
Mead Johnson Nutrition Co. | 193 | 15,538 | ||||||
Merck & Co., Inc. | 440 | 18,370 | ||||||
Mylan, Inc.* | 2,407 | 51,437 | ||||||
Perrigo Co. | 361 | 42,573 |
See accompanying Notes to Financial Statements.
49
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Pharmaceuticals — 3.2% (continued) | ||||||||
Pfizer, Inc. | 493 | $ | 11,339 | |||||
Watson Pharmaceuticals, Inc.* | 703 | 52,015 | ||||||
Total Pharmaceuticals | 481,000 | |||||||
Pipelines — 1.6% | ||||||||
Buckeye Partners LP | 211 | 11,008 | ||||||
El Paso Pipeline Partners LP | 409 | 13,824 | ||||||
Enbridge Energy Partners LP | 332 | 10,216 | ||||||
Energy Transfer Equity LP | 310 | 12,716 | ||||||
Energy Transfer Partners LP | 157 | 6,938 | ||||||
Enterprise Products Partners LP | 226 | 11,580 | ||||||
Kinder Morgan Energy Partners LP | 112 | 8,801 | ||||||
Kinder Morgan Management LLC* | 111 | 8,150 | ||||||
Kinder Morgan, Inc. | 339 | 10,923 | ||||||
Magellan Midstream Partners LP | 177 | 12,503 | ||||||
Markwest Energy Partners LP | 363 | 17,899 | ||||||
ONEOK Partners LP | 256 | 13,760 | ||||||
ONEOK, Inc. | 416 | 17,601 | ||||||
Plains All American Pipeline LP | 190 | 15,354 | ||||||
Spectra Energy Corp. | 742 | 21,562 | ||||||
Williams Cos., Inc. (The) | 1,473 | 42,452 | ||||||
Williams Partners LP | 237 | 12,381 | ||||||
Total Pipelines | 247,668 | |||||||
Private Equity — 0.3% | ||||||||
Blackstone Group LP (The) | 4,057 | 53,025 | ||||||
Real Estate — 0.3% | ||||||||
Brookfield Office Properties, Inc. (Canada) | 718 | 12,508 | ||||||
CBRE Group, Inc.* | 1,739 | 28,450 | ||||||
Total Real Estate | 40,958 | |||||||
Real Estate Investment Trust — 1.1% | ||||||||
American Capital Agency Corp. | 617 | 20,737 | ||||||
American Tower Corp., Class A | 278 | 19,435 | ||||||
Annaly Capital Management, Inc. | 974 | 16,344 | ||||||
AvalonBay Communities, Inc. | 67 | 9,479 | ||||||
Digital Realty Trust, Inc. | 118 | 8,858 | ||||||
Equity Residential | 125 | 7,795 |
See accompanying Notes to Financial Statements.
50
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Real Estate Investment Trust — 1.1% (continued) | ||||||||
Federal Realty Investment Trust | 83 | $ | 8,639 | |||||
HCP, Inc. | 271 | 11,965 | ||||||
Health Care REIT, Inc. | 144 | 8,395 | ||||||
Host Hotels & Resorts, Inc. | 456 | 7,214 | ||||||
Macerich Co. (The) | 131 | 7,736 | ||||||
National Retail Properties, Inc. | 281 | 7,950 | ||||||
Plum Creek Timber Co., Inc. | 167 | 6,630 | ||||||
Public Storage | 61 | 8,809 | ||||||
Simon Property Group, Inc. | 49 | 7,627 | ||||||
Ventas, Inc. | 142 | 8,963 | ||||||
Total Real Estate Investment Trust | 166,576 | |||||||
Retail — 8.8% | ||||||||
Advance Auto Parts, Inc. | 544 | 37,112 | ||||||
AutoZone, Inc.* | 123 | 45,162 | ||||||
Bed Bath & Beyond, Inc.* | 726 | 44,867 | ||||||
Best Buy Co., Inc. | 2,009 | 42,109 | ||||||
CarMax, Inc.* | 1,060 | 27,496 | ||||||
Chipotle Mexican Grill, Inc.* | 38 | 14,438 | ||||||
Costco Wholesale Corp. | 265 | 25,175 | ||||||
CVS Caremark Corp. | 953 | 44,534 | ||||||
Darden Restaurants, Inc. | 939 | 47,542 | ||||||
Dick's Sporting Goods, Inc. | 836 | 40,128 | ||||||
Dollar General Corp.* | 1,056 | 57,436 | ||||||
Dollar Tree, Inc.* | 940 | 50,572 | ||||||
Family Dollar Stores, Inc. | 716 | 47,600 | ||||||
Gap, Inc. (The) | 955 | 26,129 | ||||||
Home Depot, Inc. (The) | 769 | 40,749 | ||||||
J.C. Penney Co., Inc. | 1,560 | 36,364 | ||||||
Kohl's Corp. | 1,114 | 50,676 | ||||||
Lowe's Cos., Inc. | 1,295 | 36,830 | ||||||
Ltd. Brands, Inc. | 881 | 37,469 | ||||||
Macy's, Inc. | 1,234 | 42,388 | ||||||
McDonald's Corp. | 250 | 22,133 | ||||||
Nordstrom, Inc. | 709 | 35,230 | ||||||
O'Reilly Automotive, Inc.* | 450 | 37,696 | ||||||
PetSmart, Inc. | 724 | 49,362 |
See accompanying Notes to Financial Statements.
51
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Retail — 8.8% (continued) | ||||||||
PVH Corp. | 512 | $ | 39,828 | |||||
Ross Stores, Inc. | 555 | 34,671 | ||||||
Staples, Inc. | 2,902 | 37,871 | ||||||
Starbucks Corp. | 494 | 26,340 | ||||||
Target Corp. | 755 | 43,933 | ||||||
Tiffany & Co. | 570 | 30,181 | ||||||
TJX Cos., Inc. (The) | 842 | 36,147 | ||||||
Tractor Supply Co. | 309 | 25,666 | ||||||
ULTA Salon Cosmetics & Fragrance, Inc. | 316 | 29,508 | ||||||
Walgreen Co. | 1,269 | 37,537 | ||||||
Wal-Mart Stores, Inc. | 588 | 40,995 | ||||||
Yum! Brands, Inc. | 339 | 21,838 | ||||||
Total Retail | 1,343,712 | |||||||
Savings & Loans — 0.1% | ||||||||
New York Community Bancorp, Inc. | 960 | 12,029 | ||||||
Semiconductors — 2.8% | ||||||||
Advanced Micro Devices, Inc.* | 5,170 | 29,624 | ||||||
Altera Corp. | 742 | 25,109 | ||||||
Analog Devices, Inc. | 657 | 24,749 | ||||||
Applied Materials, Inc. | 4,102 | 47,009 | ||||||
Broadcom Corp., Class A* | 1,197 | 40,459 | ||||||
Intel Corp. | 1,839 | 49,009 | ||||||
KLA-Tencor Corp. | 673 | 33,145 | ||||||
Linear Technology Corp. | 782 | 24,500 | ||||||
Maxim Integrated Products, Inc. | 834 | 21,384 | ||||||
Microchip Technology, Inc. | 735 | 24,314 | ||||||
NVIDIA Corp.* | 2,104 | 29,077 | ||||||
QUALCOMM, Inc. | 634 | 35,301 | ||||||
Texas Instruments, Inc. | 577 | 16,554 | ||||||
Xilinx, Inc. | 852 | 28,602 | ||||||
Total Semiconductors | 428,836 | |||||||
Software — 4.2% | ||||||||
Activision Blizzard, Inc. | 4,079 | 48,907 | ||||||
Adobe Systems, Inc.* | 1,058 | 34,247 | ||||||
Akamai Technologies, Inc.* | 710 | 22,543 |
See accompanying Notes to Financial Statements.
52
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Software — 4.2% (continued) | ||||||||
ANSYS, Inc.* | 429 | $ | 27,074 | |||||
Autodesk, Inc.* | 797 | 27,887 | ||||||
BMC Software, Inc.* | 890 | 37,985 | ||||||
CA, Inc. | 1,540 | 41,719 | ||||||
Cerner Corp.* | 313 | 25,873 | ||||||
Citrix Systems, Inc.* | 290 | 24,343 | ||||||
Fidelity National Information Services, Inc. | 1,444 | 49,212 | ||||||
Fiserv, Inc.* | 614 | 44,343 | ||||||
Informatica Corp.* | 400 | 16,944 | ||||||
Intuit, Inc. | 570 | 33,829 | ||||||
Microsoft Corp. | 1,149 | 35,148 | ||||||
Nuance Communications, Inc.* | 1,738 | 41,399 | ||||||
Oracle Corp. | 1,721 | 51,114 | ||||||
Red Hat, Inc.* | 240 | 13,555 | ||||||
Salesforce.com, Inc.* | 68 | 9,402 | ||||||
VeriFone Systems, Inc.* | 1,179 | 39,013 | ||||||
VMware, Inc., Class A* | 208 | 18,936 | ||||||
Total Software | 643,473 | |||||||
Telecommunications — 1.8% | ||||||||
AT&T, Inc. | 502 | 17,901 | ||||||
Centurylink, Inc. | 454 | 17,929 | ||||||
Cisco Systems, Inc. | 1,956 | 33,585 | ||||||
Corning, Inc. | 2,711 | 35,053 | ||||||
Crown Castle International Corp.* | 196 | 11,497 | ||||||
Juniper Networks, Inc.* | 1,353 | 22,067 | ||||||
Motorola Solutions, Inc. | 873 | 42,000 | ||||||
Verizon Communications, Inc. | 496 | 22,042 | ||||||
Virgin Media, Inc. | 2,835 | 69,146 | ||||||
Windstream Corp. | 1,032 | 9,969 | ||||||
Total Telecommunications | 281,189 | |||||||
Toys/Games/Hobbies — 0.2% | ||||||||
Mattel, Inc. | 785 | 25,465 | ||||||
Transportation — 2.6% | ||||||||
C.H. Robinson Worldwide, Inc. | 399 | 23,353 | ||||||
CSX Corp. | 2,351 | 52,568 |
See accompanying Notes to Financial Statements.
53
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Transportation — 2.6% (continued) | ||||||||
Expeditors International of Washington, Inc. | 495 | $ | 19,181 | |||||
FedEx Corp. | 575 | 52,676 | ||||||
JB Hunt Transport Services, Inc. | 806 | 48,038 | ||||||
Kansas City Southern | 542 | 37,702 | ||||||
Norfolk Southern Corp. | 844 | 60,574 | ||||||
Union Pacific Corp. | 496 | 59,178 | ||||||
United Parcel Service, Inc., Class B | 478 | 37,647 | ||||||
Total Transportation | 390,917 | |||||||
Water — 0.1% | ||||||||
American Water Works Co., Inc. | 642 | 22,008 | ||||||
Total Common Stocks (Cost $15,078,245) | 15,095,801 | |||||||
MONEY MARKET FUND — 0.6% | ||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I (Cost $98,432) | 98,432 | 98,432 | ||||||
Total Investments — 100.0% (Cost $15,176,677) | 15,194,233 | |||||||
Liabilities in Excess of Other Assets — (0.0%)‡ | (6,013 | ) | ||||||
Net Assets — 100.0% | $ | 15,188,220 |
* | Non-income producing security |
‡ | Less than 0.05% |
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Advertising | 0.2 | % | ||
Aerospace/Defense | 2.1 | |||
Agriculture | 1.1 | |||
Airlines | 1.3 | |||
Apparel | 0.7 | |||
Auto Manufacturers | 1.0 | |||
Auto Parts & Equipment | 0.8 | |||
Banks | 4.4 | |||
Beverages | 1.5 | |||
Biotechnology | 2.4 | |||
Chemicals | 3.8 | |||
Commercial Services | 2.5 | |||
Computers | 3.1 | |||
Cosmetics/Personal Care | 0.6 | |||
Distribution/Wholesale | 0.5 |
See accompanying Notes to Financial Statements.
54
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
% of Net Assets | ||||
Diversified Financial Services | 3.1 | % | ||
Electric | 2.1 | |||
Electrical Components & Equipment | 0.5 | |||
Electronics | 1.8 | |||
Engineering & Construction | 0.5 | |||
Environmental Control | 0.5 | |||
Food | 2.2 | |||
Forest Products & Paper | 0.1 | |||
Gas | 0.4 | |||
Hand/Machine Tools | 0.2 | |||
Healthcare – Products | 3.2 | |||
Healthcare – Services | 2.8 | |||
Home Furnishings | 0.1 | |||
Household Products/Wares | 0.4 | |||
Insurance | 4.4 | |||
Internet | 2.2 | |||
Iron/Steel | 0.4 | |||
Leisure Time | 0.4 | |||
Lodging | 1.5 | |||
Machinery – Construction & Mining | 0.7 | |||
Machinery – Diversified | 1.5 | |||
Media | 4.6 | |||
Metal Fabricate/Hardware | 0.2 | |||
Mining | 0.8 | |||
Miscellaneous Manufacturing | 2.5 | |||
Office/Business Equipment | 0.3 | |||
Oil & Gas | 6.5 | |||
Oil & Gas Services | 2.2 | |||
Packaging & Containers | 0.2 | |||
Pharmaceuticals | 3.2 | |||
Pipelines | 1.6 | |||
Private Equity | 0.3 | |||
Real Estate | 0.3 | |||
Real Estate Investment Trust | 1.1 | |||
Retail | 8.8 | |||
Savings & Loans | 0.1 | |||
Semiconductors | 2.8 | |||
Software | 4.2 | |||
Telecommunications | 1.8 | |||
Toys/Games/Hobbies | 0.2 | |||
Transportation | 2.6 | |||
Water | 0.1 | |||
Money Market Fund | 0.6 | |||
Total Investments | 100.0 | |||
Liabilities in Excess of Other Assets | — | ‡ | ||
Net Assets | 100.0 | % |
‡ | Less than 0.05% |
See accompanying Notes to Financial Statements.
55
ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 98.9% | ||||||||
Asset Allocation Fund — 3.8% | ||||||||
PowerShares Convertible Securities Portfolio | 1 | $ | 22 | |||||
SPDR Barclays Capital Convertible Securities ETF | 21,232 | 797,474 | ||||||
Total Asset Allocation Fund | 797,496 | |||||||
Debt Fund — 91.1% | ||||||||
iShares iBoxx $ High Yield Corporate Bond Fund | 25,971 | 2,369,075 | ||||||
iShares iBoxx $ Investment Grade Corporate Bond Fund | 32,712 | 3,848,894 | ||||||
iShares S&P/Citigroup International Treasury Bond Fund | 10,559 | 1,037,211 | ||||||
PIMCO 1 – 5 Year US TIPS Index Fund | 19,442 | 1,037,231 | ||||||
PowerShares Build America Bond Portfolio | 28,988 | 861,233 | ||||||
PowerShares Emerging Markets Sovereign Debt Portfolio | 37,559 | 1,082,826 | ||||||
PowerShares Insured National Municipal Bond Portfolio | 25,419 | 640,813 | ||||||
PowerShares International Corporate Bond Portfolio | 68,314 | 1,845,161 | ||||||
SPDR DB International Government Inflation-Protected Bond ETF | 17,527 | 1,031,990 | ||||||
Vanguard Intermediate-Term Government Bond ETF | 12,956 | 857,428 | ||||||
Vanguard Long-Term Government Bond ETF | 8,909 | 689,200 | ||||||
Vanguard Mortgage-Backed Securities ETF | 48,599 | 2,543,672 | ||||||
Vanguard Short-Term Bond ETF | 7,789 | 631,921 | ||||||
Vanguard Short-Term Government Bond ETF | 13,819 | 841,715 | ||||||
Total Debt Fund | 19,318,370 | |||||||
Equity Fund — 4.0% | ||||||||
PowerShares Financial Preferred Portfolio | 46,829 | 842,922 | ||||||
Total Exchange Traded Funds (Cost $20,599,101) | 20,958,788 | |||||||
MONEY MARKET FUND — 1.4% | ||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I (Cost $304,252) | 304,252 | 304,252 | ||||||
Total Investments — 100.3% (Cost $20,903,353) | 21,263,040 | |||||||
Liabilities in Excess of Other Assets — (0.3%) | (68,071 | ) | ||||||
Net Assets — 100.0% | $ | 21,194,969 |
ETF | — Exchange Traded Fund |
TIPS | — Treasury Inflation Protected Securities |
See accompanying Notes to Financial Statements.
56
ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Asset Allocation Fund | 3.8 | % | ||
Debt Fund | 91.1 | |||
Equity Fund | 4.0 | |||
Money Market Fund | 1.4 | |||
Total Investments | 100.3 | |||
Liabilities in Excess of Other Assets | (0.3 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
57
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
COMMON STOCKS — 97.2% | ||||||||
Advertising — 1.5% | ||||||||
Focus Media Holding Ltd. (China)(a) | 4,035 | $ | 94,742 | |||||
Publicis Groupe SA (France)(a) | 2,664 | 61,112 | ||||||
WPP PLC (Jersey Islands)(a) | 1,019 | 62,016 | ||||||
Total Advertising | 217,870 | |||||||
Aerospace/Defense — 0.9% | ||||||||
BAE Systems PLC (United Kingdom)(a) | 1,694 | 30,797 | ||||||
Embraer SA (Brazil)(a) | 1,425 | 37,805 | ||||||
Rolls-Royce Holdings PLC (United Kingdom)(a) | 973 | 65,658 | ||||||
Total Aerospace/Defense | 134,260 | |||||||
Agriculture — 0.7% | ||||||||
British American Tobacco PLC (United Kingdom)(a) | 475 | 48,507 | ||||||
Imperial Tobacco Group PLC (United Kingdom)(a) | 589 | 45,553 | ||||||
Total Agriculture | 94,060 | |||||||
Airlines — 0.5% | ||||||||
Ryanair Holdings PLC (Ireland)*(a) | 2,375 | 72,200 | ||||||
Apparel — 0.4% | ||||||||
Burberry Group PLC (United Kingdom)(a) | 1,331 | 55,436 | ||||||
Auto Manufacturers — 3.6% | ||||||||
Bayerische Motoren Werke AG (Germany)(a) | 3,197 | 76,472 | ||||||
Daimler AG (Germany)(a) | 1,624 | 72,668 | ||||||
Fiat SpA (Italy)*(a) | 20,118 | 102,401 | ||||||
Honda Motor Co. Ltd. (Japan)(a) | 640 | 22,182 | ||||||
Nissan Motor Co. Ltd. (Japan)(a) | 4,245 | 80,655 | ||||||
Tata Motors Ltd. (India)(a) | 3,194 | 70,140 | ||||||
Toyota Motor Corp. (Japan)(a) | 1,139 | 91,667 | ||||||
Total Auto Manufacturers | 516,185 | |||||||
Auto Parts & Equipment — 0.4% | ||||||||
Denso Corp. (Japan)(a) | 1,277 | 21,748 | ||||||
Weichai Power Co. Ltd. (China)*(a) | 2,136 | 34,133 | ||||||
Total Auto Parts & Equipment | 55,881 |
See accompanying Notes to Financial Statements.
58
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Banks — 13.8% | ||||||||
Australia & New Zealand Banking Group Ltd. (Australia)(a) | 1,229 | $ | 27,812 | |||||
Banco Bilbao Vizcaya Argentaria SA (Spain)(a) | 7,487 | 52,933 | ||||||
Banco Bradesco SA (Brazil)(a) | 3,835 | 57,026 | ||||||
Banco de Chile (Chile)(a) | 391 | 33,061 | ||||||
Banco do Brasil SA (Brazil)(a) | 6,371 | 62,500 | ||||||
Banco Santander Chile (Chile)(a) | 559 | 43,317 | ||||||
Banco Santander SA (Spain)(a) | 11,233 | 73,688 | ||||||
Bancolombia SA (Colombia)(a) | 1,056 | 65,303 | ||||||
Barclays PLC (United Kingdom)(a) | 6,639 | 68,382 | ||||||
BNP Paribas SA (France)(a) | 4,263 | 82,361 | ||||||
China Construction Bank Corp. (China)(a) | 6,050 | 83,309 | ||||||
Credit Suisse Group AG (Switzerland)(a) | 3,290 | 60,306 | ||||||
DBS Group Holdings Ltd. (Singapore)(a) | 1,442 | 63,895 | ||||||
Erste Group Bank AG (Austria)*(a) | 8,890 | 84,455 | ||||||
Hachijuni Bank Ltd. (The) (Japan)(a) | 403 | 20,807 | ||||||
HDFC Bank Ltd. (India)(a) | 2,175 | 70,905 | ||||||
HSBC Holdings PLC (United Kingdom)(a) | 1,888 | 83,317 | ||||||
ICICI Bank Ltd. (India)(a) | 2,198 | 71,237 | ||||||
Industrial & Commercial Bank of China Ltd. (China)(a) | 7,323 | 81,871 | ||||||
Itau Unibanco Holding SA (Brazil)(a) | 4,593 | 63,935 | ||||||
Lloyds Banking Group PLC (United Kingdom)*(a) | 49,658 | 95,343 | ||||||
Mitsubishi UFJ Financial Group, Inc. (Japan)(a) | 14,292 | 67,887 | ||||||
National Australia Bank Ltd. (Australia)(a) | 1,974 | 47,712 | ||||||
National Bank of Greece SA (Greece)*(a) | 36,541 | 62,485 | ||||||
Royal Bank of Scotland Group PLC (United Kingdom)*(a) | 13,238 | 90,018 | ||||||
Sberbank of Russia (Russia)(a) | 6,491 | 70,233 | ||||||
Societe Generale SA (France)*(a) | 21,243 | 98,568 | ||||||
Turkiye Garanti Bankasi As (Turkey)(a) | 21,094 | 85,009 | ||||||
United Overseas Bank Ltd. (Singapore)(a) | 2,582 | 76,995 | ||||||
Westpac Banking Corp. (Australia)(a) | 154 | 16,757 | ||||||
Total Banks | 1,961,427 |
See accompanying Notes to Financial Statements.
59
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Beverages — 3.0% | ||||||||
Anheuser-Busch InBev NV (Belgium)(a) | 934 | $ | 74,393 | |||||
Carlsberg A/S, Class B (Denmark)(a) | 3,720 | 58,702 | ||||||
Cia de Bebidas das Americas (Brazil)(a) | 429 | 16,444 | ||||||
Coca-Cola Femsa SAB de CV (Mexico)(a) | 326 | 42,667 | ||||||
Coca-Cola Hellenic Bottling Co. SA (Greece)*(a) | 3,036 | 53,980 | ||||||
Diageo PLC (United Kingdom)(a) | 490 | 50,504 | ||||||
Fomento Economico Mexicano SAB de CV (Mexico)(a) | 277 | 24,722 | ||||||
Heineken NV (Netherlands)(a) | 2,000 | 52,280 | ||||||
SABMiller PLC (United Kingdom)(a) | 1,293 | 52,392 | ||||||
Total Beverages | 426,084 | |||||||
Biotechnology — 0.3% | ||||||||
CSL Ltd. (Australia)(a) | 2,173 | 44,090 | ||||||
Building Materials — 0.6% | ||||||||
Asahi Glass Co. Ltd. (Japan)(a) | 2,709 | 18,150 | ||||||
CRH PLC (Ireland)(a) | 3,665 | 70,515 | ||||||
Total Building Materials | 88,665 | |||||||
Chemicals — 2.0% | ||||||||
Air Liquide SA (France)(a) | 1,715 | 38,999 | ||||||
Akzo Nobel NV (Netherlands)(a) | 3,004 | 47,043 | ||||||
BASF SE (Germany)(a) | 583 | 40,460 | ||||||
Braskem SA (Brazil)(a) | 3,842 | 51,137 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd. (China)(a) | 694 | 19,786 | ||||||
Sociedad Quimica y Minera de Chile SA (Chile)(a) | 247 | 13,750 | ||||||
Syngenta AG (Switzerland)(a) | 648 | 44,349 | ||||||
Ultrapar Participacoes SA (Brazil)(a) | 1,204 | 27,307 | ||||||
Total Chemicals | 282,831 | |||||||
Coal — 0.4% | ||||||||
Yanzhou Coal Mining Co. Ltd. (China)(a) | 4,083 | 62,511 | ||||||
Commercial Services — 0.5% | ||||||||
Experian PLC (Jersey Islands)(a) | 2,904 | 41,063 | ||||||
SGS SA (Switzerland)(a) | 1,743 | 32,646 |
See accompanying Notes to Financial Statements.
60
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Commercial Services — 0.5% (continued) | ||||||||
Total Commercial Services | $ | 73,709 | ||||||
Computers — 0.4% | ||||||||
Infosys Ltd. (India)(a) | 1,112 | 50,107 | ||||||
TDK Corp. (Japan)(a) | 270 | 10,902 | ||||||
Total Computers | 61,009 | |||||||
Cosmetics/Personal Care — 0.7% | ||||||||
L'Oreal SA (France)(a) | 937 | 21,926 | ||||||
Shiseido Co. Ltd. (Japan)(a) | 4,877 | 76,520 | ||||||
Total Cosmetics/Personal Care | 98,446 | |||||||
Distribution/Wholesale — 1.7% | ||||||||
ITOCHU Corp. (Japan)(a) | 4,277 | 89,774 | ||||||
LI & Fung Ltd. (Hong Kong)(a) | 17,336 | 66,571 | ||||||
Wolseley PLC (Jersey Islands)(a) | 21,010 | 78,157 | ||||||
Total Distribution/Wholesale | 234,502 | |||||||
Diversified Financial Services — 2.7% | ||||||||
Hong Kong Exchanges And Clearing Ltd. (Hong Kong)(a) | 1,108 | 15,723 | ||||||
Macquarie Group Ltd. (Australia)(a) | 1,592 | 42,745 | ||||||
Nomura Holdings, Inc. (Japan)(a) | 24,209 | 89,331 | ||||||
ORIX Corp. (Japan)(a) | 1,853 | 86,109 | ||||||
Shinhan Financial Group Co. Ltd. (South Korea)(a) | 1,165 | 82,692 | ||||||
Woori Finance Holdings Co. Ltd. (South Korea)(a) | 1,911 | 63,483 | ||||||
Total Diversified Financial Services | 380,083 | |||||||
Electric — 3.8% | ||||||||
AES Tiete SA (Brazil)(a) | 2,563 | 37,574 | ||||||
Cia Energetica de Minas Gerais (Brazil)(a) | 619 | 11,402 | ||||||
Cia Paranaense de Energia (Brazil)(a) | 2,339 | 50,709 | ||||||
CPFL Energia SA (Brazil)(a) | 1,140 | 28,489 | ||||||
E.ON AG (Germany)(a) | 582 | 12,507 | ||||||
EDF SA (France)(a) | 20,090 | 87,793 | ||||||
GDF Suez (France)(a) | 2,320 | 55,193 | ||||||
Huaneng Power International, Inc. (China)(a) | 4,397 | 131,031 | ||||||
Iberdrola SA (Spain)(a) | 1,902 | 34,749 |
See accompanying Notes to Financial Statements.
61
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Electric — 3.8% (continued) | ||||||||
International Power PLC (United Kingdom)(a) | 745 | $ | 48,462 | |||||
SSE PLC (United Kingdom)(a) | 1,956 | 42,856 | ||||||
Total Electric | 540,765 | |||||||
Electrical Components & Equipment — 1.0% | ||||||||
Hitachi Ltd. (Japan)(a) | 919 | 56,427 | ||||||
Nidec Corp. (Japan)(a) | 1,230 | 23,604 | ||||||
Schneider Electric SA (France)(a) | 4,366 | 48,462 | ||||||
Vestas Wind Systems A/S (Denmark)*(a) | 8,558 | 15,319 | ||||||
Total Electrical Components & Equipment | 143,812 | |||||||
Electronics — 0.7% | ||||||||
Elster Group SE (Germany)*(a) | 5,091 | 103,347 | ||||||
Engineering & Construction — 0.3% | ||||||||
ABB Ltd. (Switzerland)*(a) | 2,689 | 43,885 | ||||||
Food — 3.5% | ||||||||
BRF – Brasil Foods SA (Brazil)(a) | 4,864 | 73,884 | ||||||
Carrefour SA (France)(a) | 20,644 | 72,048 | ||||||
Cia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil)(a) | 1,463 | 58,505 | ||||||
Danone SA (France)(a) | 2,952 | 36,546 | ||||||
Delhaize Group SA (Belgium)(a) | 711 | 26,101 | ||||||
Koninklijke Ahold NV (Netherlands)(a) | 5,043 | 62,483 | ||||||
Marine Harvest ASA (Norway)*(a) | 1,753 | 24,717 | ||||||
Nestle SA (Switzerland)(a) | 349 | 20,849 | ||||||
Tesco PLC (United Kingdom)(a) | 3,861 | 56,371 | ||||||
Unilever NV (Netherlands) | 921 | 30,715 | ||||||
Unilever PLC (United Kingdom)(a) | 884 | 29,817 | ||||||
Total Food | 492,036 | |||||||
Food Service — 0.3% | ||||||||
Compass Group PLC (United Kingdom)(a) | 3,822 | 40,781 | ||||||
Forest Products & Paper — 0.5% | ||||||||
Stora ENSO OYJ (Finland)(a) | 10,930 | 66,782 | ||||||
Gas — 0.1% | ||||||||
National Grid PLC (United Kingdom)(a) | 353 | 18,706 |
See accompanying Notes to Financial Statements.
62
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Hand/Machine Tools — 0.6% | ||||||||
Sandvik AB (Sweden)(a) | 6,578 | $ | 84,527 | |||||
Healthcare – Products — 0.6% | ||||||||
Luxottica Group SpA (Italy)(a) | 1,325 | 46,282 | ||||||
Smith & Nephew PLC (United Kingdom)(a) | 664 | 33,194 | ||||||
Total Healthcare – Products | 79,476 | |||||||
Healthcare – Services — 0.5% | ||||||||
ICON PLC (Ireland)*(a) | 3,049 | 68,694 | ||||||
Holding Companies – Diversified — 0.8% | ||||||||
Keppel Corp. Ltd. (Singapore)(a) | 3,885 | 63,559 | ||||||
LVMH Moet Hennessy Louis Vuitton SA (France)(a) | 1,785 | 53,978 | ||||||
Total Holding Companies – Diversified | 117,537 | |||||||
Home Builders — 0.1% | ||||||||
Sekisui House Ltd. (Japan)(a) | 1,614 | 15,107 | ||||||
Household Products / Wares — 0.3% | ||||||||
Reckitt Benckiser Group PLC (United Kingdom)(a) | 2,056 | 21,650 | ||||||
Unilever Indonesia Tbk PT (Indonesia)(a) | 270 | 13,166 | ||||||
Total Household Products / Wares | 34,816 | |||||||
Insurance — 6.5% | ||||||||
Ageas (Belgium)(a) | 54,105 | 102,799 | ||||||
AIA Group Ltd. (Hong Kong)(a) | 4,633 | 64,121 | ||||||
Allianz SE (Germany)(a) | 7,596 | 75,884 | ||||||
Aviva PLC (United Kingdom)(a) | 7,563 | 64,890 | ||||||
AXA SA (France)(a) | 6,514 | 86,832 | ||||||
China Life Insurance Co. Ltd. (China)(a) | 2,213 | 87,391 | ||||||
ING Groep NV (Netherlands)*(a) | 13,910 | 92,919 | ||||||
MS&AD Insurance Group Holdings (Japan)(a) | 11,230 | 97,364 | ||||||
Ping An Insurance Group Co. of China Ltd. (China)(a) | 4,759 | 75,716 | ||||||
Prudential PLC (United Kingdom)(a) | 2,375 | 55,100 | ||||||
Tokio Marine Holdings, Inc. (Japan)(a) | 2,421 | 60,646 | ||||||
Zurich Insurance Group AG (Switzerland)*(a) | 2,927 | 66,092 | ||||||
Total Insurance | 929,754 |
See accompanying Notes to Financial Statements.
63
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Internet — 1.3% | ||||||||
Baidu, Inc. (Cayman Islands)*(a) | 547 | $ | 62,894 | |||||
NetEase.com (Cayman Islands)*(a) | 1,127 | 66,324 | ||||||
Tencent Holdings Ltd. (Cayman Islands)(a) | 1,811 | 53,280 | ||||||
Total Internet | 182,498 | |||||||
Iron/Steel — 1.3% | ||||||||
ArcelorMittal (Luxembourg) | 5,581 | 85,222 | ||||||
Gerdau SA (Brazil)(a) | 2,147 | 18,808 | ||||||
POSCO (South Korea)(a) | 622 | 50,033 | ||||||
Rio Tinto PLC (United Kingdom)(a) | 493 | 23,570 | ||||||
Ternium SA (Luxembourg)(a) | 568 | 11,116 | ||||||
Total Iron/Steel | 188,749 | |||||||
Leisure Time — 0.2% | ||||||||
Carnival PLC (United Kingdom)(a) | 802 | 27,533 | ||||||
Lodging — 1.7% | ||||||||
Galaxy Entertainment Group Ltd. (Hong Kong)*(a) | 3,441 | 86,025 | ||||||
InterContinental Hotels Group PLC (United Kingdom)(a) | 1,255 | 30,245 | ||||||
Melco Crown Entertainment Ltd., Class Participation Certificate (Hong Kong)*(a) | 5,123 | 59,017 | ||||||
Sands China Ltd. (Cayman Islands)(a) | 2,241 | 71,152 | ||||||
Total Lodging | 246,439 | |||||||
Machinery – Construction & Mining — 0.8% | ||||||||
Atlas Copco AB, Class A (Sweden)(a) | 1,989 | 42,942 | ||||||
Komatsu Ltd. (Japan)(a) | 3,177 | 75,327 | ||||||
Total Machinery – Construction & Mining | 118,269 | |||||||
Machinery – Diversified — 1.2% | ||||||||
Alstom SA (France)(a) | 26,515 | 82,992 | ||||||
FANUC Corp. (Japan)(a) | 528 | 14,467 | ||||||
Kone OYJ, Class B (Finland)(a) | 865 | 26,142 | ||||||
Kubota Corp. (Japan)(a) | 970 | 44,727 | ||||||
Total Machinery – Diversified | 168,328 |
See accompanying Notes to Financial Statements.
64
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Media — 2.4% | ||||||||
British Sky Broadcasting Group PLC (United Kingdom)(a) | 1,606 | $ | 70,535 | |||||
Grupo Televisa SA (Mexico)(a) | 841 | 18,065 | ||||||
Naspers Ltd., Class N (South Africa)(a) | 664 | 35,046 | ||||||
Pearson PLC (United Kingdom)(a) | 1,812 | 35,968 | ||||||
Promotora de Informaciones SA, Class B (Spain)(a) | 29,774 | 85,451 | ||||||
Reed Elsevier NV (Netherlands)(a) | 1,267 | 28,862 | ||||||
Reed Elsevier PLC (United Kingdom)(a) | 1,061 | 33,984 | ||||||
Wolters Kluwer NV (Netherlands)(a) | 2,455 | 38,814 | ||||||
Total Media | 346,725 | |||||||
Metal Fabricate/Hardware — 1.1% | ||||||||
Assa Abloy AB (Sweden)(a) | 4,379 | 60,868 | ||||||
Tenaris SA (Luxembourg)(a) | 2,603 | 91,027 | ||||||
Total Metal Fabricate/Hardware | 151,895 | |||||||
Mining — 5.2% | ||||||||
Anglo American PLC (United Kingdom)(a) | 1,967 | 32,515 | ||||||
AngloGold Ashanti Ltd. (South Africa)(a) | 1,857 | 63,769 | ||||||
BHP Billiton Ltd. (Australia)(a) | 537 | 35,066 | ||||||
BHP Billiton PLC (United Kingdom)(a) | 1,438 | 82,239 | ||||||
Cia de Minas Buenaventura SA (Peru)(a) | 2,123 | 80,632 | ||||||
Gold Fields Ltd. (South Africa)(a) | 2,634 | 33,742 | ||||||
Impala Platinum Holdings Ltd. (South Africa)(a) | 1,505 | 24,712 | ||||||
Newcrest Mining Ltd. (Australia)(a) | 3,295 | 77,564 | ||||||
Randgold Resources Ltd. (Jersey Islands)(a) | 1,017 | 91,540 | ||||||
St Barbara Ltd. (Australia)*(a) | 8,503 | 74,571 | ||||||
Sterlite Industries India Ltd. (India)(a) | 12,625 | 95,697 | ||||||
Xstrata PLC (United Kingdom)(a) | 15,817 | 39,701 | ||||||
Total Mining | 731,748 | |||||||
Miscellaneous Manufacturing — 0.9% | ||||||||
FUJIFILM Holdings Corp. (Japan)(a) | 3,158 | 59,370 | ||||||
Siemens AG (Germany)(a) | 806 | 67,761 | ||||||
Total Miscellaneous Manufacturing | 127,131 |
See accompanying Notes to Financial Statements.
65
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Office/Business Equipment — 0.3% | ||||||||
Canon, Inc. (Japan)(a) | 1,183 | $ | 47,249 | |||||
Oil & Gas — 7.1% | ||||||||
BG Group PLC (United Kingdom)(a) | 3,172 | 65,153 | ||||||
BP PLC (United Kingdom)(a) | 819 | 33,202 | ||||||
China Petroleum & Chemical Corp. (China)(a) | 423 | 37,727 | ||||||
CNOOC Ltd. (Hong Kong)(a) | 187 | 37,634 | ||||||
Ecopetrol SA (Colombia)(a) | 1,397 | 77,939 | ||||||
Eni SpA (Italy)(a) | 1,839 | 78,194 | ||||||
Ensco PLC, Class A (United Kingdom) | 1,556 | 73,085 | ||||||
MOL Hungarian Oil and Gas PLC (Hungary)(a) | 2,515 | 90,439 | ||||||
PetroChina Co. Ltd. (China)(a) | 377 | 48,686 | ||||||
Repsol YPF SA (Spain)(a) | 4,889 | 78,126 | ||||||
Royal Dutch Shell PLC, Class A (United Kingdom)(a) | 1,245 | 83,950 | ||||||
Sasol Ltd. (South Africa)(a) | 1,008 | 42,790 | ||||||
Statoil ASA (Norway)(a) | 3,063 | 73,083 | ||||||
Surgutneftegas OJSC (Russia)(a) | 14,302 | 81,522 | ||||||
Total SA (France)(a) | 1,377 | 61,896 | ||||||
Tullow Oil PLC (United Kingdom)(a) | 1,939 | 22,124 | ||||||
Woodside Petroleum Ltd. (Australia)(a) | 698 | 22,741 | ||||||
Total Oil & Gas | 1,008,291 | |||||||
Oil & Gas Services — 1.9% | ||||||||
Cie Generale de Geophysique - Veritas (France)*(a) | 3,630 | 93,835 | ||||||
Petrofac Ltd. (Jersey Islands)(a) | 5,364 | 58,468 | ||||||
Subsea 7 SA (Luxembourg)(a) | 3,038 | 59,879 | ||||||
Technip SA (France)(a) | 1,994 | 51,944 | ||||||
Total Oil & Gas Services | 264,126 | |||||||
Packaging & Containers — 0.3% | ||||||||
Rexam PLC (United Kingdom)(a) | 1,489 | 49,003 | ||||||
Pharmaceuticals — 3.4% | ||||||||
Daiichi Sankyo Co. Ltd. (Japan)(a) | 995 | 16,676 | ||||||
Elan Corp. PLC (Ireland)*(a) | 2,777 | 40,516 | ||||||
GlaxoSmithKline PLC (United Kingdom)(a) | 1,257 | 57,281 |
See accompanying Notes to Financial Statements.
66
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Pharmaceuticals — 3.4% (continued) | ||||||||
Grifols SA (Spain)*(a) | 8,999 | $ | 86,390 | |||||
Ipsen SA (France)(a) | 6,782 | 41,438 | ||||||
Novartis AG (Switzerland)(a) | 673 | 37,621 | ||||||
NOVO Nordisk A/S (Denmark)(a) | 326 | 47,381 | ||||||
Roche Holding AG (Switzerland)(a) | 831 | 35,916 | ||||||
Sanofi (France)(a) | 359 | 13,563 | ||||||
Shire PLC (Jersey Islands)(a) | 640 | 55,290 | ||||||
Teva Pharmaceutical Industries Ltd. (Israel)(a) | 1,404 | 55,374 | ||||||
Total Pharmaceuticals | 487,446 | |||||||
Retail — 2.7% | ||||||||
CIE Financiere Richemont SA (Switzerland)(a) | 11,736 | 63,492 | ||||||
Hennes & Mauritz AB (Sweden)(a) | 3,899 | 27,839 | ||||||
Inditex SA (Spain)(a) | 2,232 | 46,091 | ||||||
Kingfisher PLC (United Kingdom)(a) | 7,435 | 66,469 | ||||||
Marks & Spencer Group PLC (United Kingdom)(a) | 3,857 | 39,496 | ||||||
Seven & I Holdings Co. Ltd. (Japan)(a) | 899 | 53,994 | ||||||
Swatch Group AG (The) (Switzerland)(a) | 3,064 | 60,483 | ||||||
Wal-Mart de Mexico SAB de CV (Mexico)(a) | 760 | 20,246 | ||||||
Total Retail | 378,110 | |||||||
Semiconductors — 1.6% | ||||||||
Advanced Semiconductor Engineering, Inc. (Taiwan)(a) | 10,105 | 41,127 | ||||||
ARM Holdings PLC (United Kingdom)(a) | 960 | 22,838 | ||||||
ASML Holding NV (Netherlands) | 706 | 36,303 | ||||||
Infineon Technologies AG (Germany)(a) | 1,694 | 11,367 | ||||||
ROHM Co. Ltd. (Japan)(a) | 625 | 11,919 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a) | 2,860 | 39,926 | ||||||
United Microelectronics Corp. (Taiwan)(a) | 29,614 | 64,262 | ||||||
Total Semiconductors | 227,742 | |||||||
Software — 0.3% | ||||||||
Dassault Systemes SA (France)(a) | 453 | 42,627 | ||||||
Telecommunications — 7.6% | ||||||||
Alcatel-Lucent (France)*(a) | 24,156 | 39,374 | ||||||
America Movil SAB d CV, Series L (Mexico)(a) | 1,021 | 26,607 |
See accompanying Notes to Financial Statements.
67
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Telecommunications — 7.6% (continued) | ||||||||
BT Group PLC (United Kingdom)(a) | 1,263 | $ | 41,906 | |||||
China Mobile Ltd. (Hong Kong)(a) | 355 | 19,408 | ||||||
China Telecom Corp. Ltd. (China)(a) | 782 | 34,424 | ||||||
China Unicom Ltd. (Hong Kong)(a) | 5,280 | 66,264 | ||||||
Deutsche Telekom AG (Germany)(a) | 2,451 | 26,794 | ||||||
Hellenic Telecommunications Organization SA (Greece)(a) | 52,738 | 65,923 | ||||||
KDDI Corp. (Japan)(a) | 3,221 | 52,180 | ||||||
Mobile TeleSystems (Russia)(a) | 1,654 | 28,449 | ||||||
MTN Group Ltd. (South Africa)(a) | 3,848 | 66,147 | ||||||
Nippon Telegraph & Telephone Corp. (Japan)(a) | 887 | 20,525 | ||||||
NTT DoCoMo, Inc. (Japan)(a) | 1,597 | 26,590 | ||||||
PT Telekomunikasi Indonesia Tbk (Indonesia)(a) | 453 | 15,778 | ||||||
Singapore Telecommunications Ltd. (Singapore)(a) | 1,245 | 32,607 | ||||||
Swisscom AG (Switzerland)(a) | 409 | 16,385 | ||||||
Telecom Corp. of New Zealand Ltd. (New Zealand)(a) | 6,189 | 58,362 | ||||||
Telefonaktiebolaget LM Ericsson (Sweden)(a) | 6,284 | 57,373 | ||||||
Telenor ASA (Norway)(a) | 1,475 | 73,352 | ||||||
Telstra Corp. Ltd. (Australia)(a) | 1,961 | 36,965 | ||||||
Tim Participacoes SA (Brazil)(a) | 1,969 | 54,069 | ||||||
Turkcell Iletisim Hizmetleri AS (Turkey)*(a) | 8,308 | 104,265 | ||||||
VimpelCom Ltd. (Bermuda)(a) | 9,770 | 79,235 | ||||||
Vivendi SA (France)(a) | 719 | 13,238 | ||||||
Vodafone Group PLC (United Kingdom)(a) | 1,033 | 29,110 | ||||||
Total Telecommunications | 1,085,330 | |||||||
Transportation — 1.2% | ||||||||
Deutsche Post AG (Germany)(a) | 4,084 | 72,001 | ||||||
East Japan Railway Co. (Japan)(a) | 9,001 | 93,520 | ||||||
Total Transportation | 165,521 | |||||||
Water — 1.0% | ||||||||
Cia de Saneamento Basico do Estado do Sao Paulo (Brazil)(a) | 700 | 53,102 | ||||||
United Utilities Group PLC (United Kingdom)(a) | 921 | 19,636 | ||||||
Veolia Environnement SA (France)(a) | 5,696 | 71,883 | ||||||
Total Water | 144,621 | |||||||
Total Common Stocks (Cost $15,081,438) | 13,828,655 |
See accompanying Notes to Financial Statements.
68
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 2.5% | ||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I (Cost $349,329) | 349,329 | $ | 349,329 | |||||
Total Investments — 99.7% (Cost $15,430,767) | 14,177,984 | |||||||
Other Assets in Excess of Liabilities — 0.3% | 40,732 | |||||||
Net Assets — 100.0% | $ | 14,218,716 |
ADR — American Depositary Receipt
(a) | American Depositary Receipt |
* | Non-income producing security |
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Advertising | 1.5 | % | ||
Aerospace/Defense | 0.9 | |||
Agriculture | 0.7 | |||
Airlines | 0.5 | |||
Apparel | 0.4 | |||
Auto Manufacturers | 3.6 | |||
Auto Parts & Equipment | 0.4 | |||
Banks | 13.8 | |||
Beverages | 3.0 | |||
Biotechnology | 0.3 | |||
Building Materials | 0.6 | |||
Chemicals | 2.0 | |||
Coal | 0.4 | |||
Commercial Services | 0.5 | |||
Computers | 0.4 | |||
Cosmetics/Personal Care | 0.7 | |||
Distribution/Wholesale | 1.7 | |||
Diversified Financial Services | 2.7 | |||
Electric | 3.8 | |||
Electrical Components & Equipment | 1.0 | |||
Electronics | 0.7 | |||
Engineering & Construction | 0.3 | |||
Food | 3.5 | |||
Food Service | 0.3 | |||
Forest Products & Paper | 0.5 |
See accompanying Notes to Financial Statements.
69
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
% of Net Assets | ||||
Gas | 0.1 | |||
Hand/Machine Tools | 0.6 | |||
Healthcare – Products | 0.6 | |||
Healthcare – Services | 0.5 | |||
Holding Companies – Diversified | 0.8 | |||
Home Builders | 0.1 | |||
Household Products / Wares | 0.3 | |||
Insurance | 6.5 | |||
Internet | 1.3 | |||
Iron/Steel | 1.3 | |||
Leisure Time | 0.2 | |||
Lodging | 1.7 | |||
Machinery – Construction & Mining | 0.8 | |||
Machinery – Diversified | 1.2 | |||
Media | 2.4 | |||
Metal Fabricate/Hardware | 1.1 | |||
Mining | 5.2 | |||
Miscellaneous Manufacturing | 0.9 | |||
Office/Business Equipment | 0.3 | |||
Oil & Gas | 7.1 | |||
Oil & Gas Services | 1.9 | |||
Packaging & Containers | 0.3 | |||
Pharmaceuticals | 3.4 | |||
Retail | 2.7 | |||
Semiconductors | 1.6 | |||
Software | 0.3 | |||
Telecommunications | 7.6 | |||
Transportation | 1.2 | |||
Water | 1.0 | |||
Money Market Fund | 2.5 | |||
Total Investments | 99.7 | |||
Other Assets in Excess of Liabilities | 0.3 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
70
ADVISORSHARES TRUST
MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 49.4% | ||||||||
Debt Fund — 19.5% | ||||||||
SPDR Barclays Capital 1 – 3 Month T-Bill ETF | 24,078 | $ | 1,103,013 | |||||
Equity Fund — 29.9% | ||||||||
iShares Russell 1000 Index Fund | 3,734 | 280,834 | ||||||
iShares S&P 100 Index Fund | 4,522 | 282,489 | ||||||
iShares S&P 500 Growth Index Fund | 3,902 | 286,836 | ||||||
iShares S&P 500 Index Fund | 2,045 | 279,654 | ||||||
iShares S&P 500 Value Index Fund | 4,488 | 279,513 | ||||||
iShares S&P SmallCap 600 Growth Index Fund | 3,472 | 280,295 | ||||||
Total Equity Funds | 1,689,621 | |||||||
Total Exchange Traded Funds (Cost $2,774,696) | 2,792,634 | |||||||
MONEY MARKET FUND — 3.3% | ||||||||
Dreyfus Institutional Reserves Treasury Fund – Institutional Class (Cost $188,312) | 188,312 | 188,312 | ||||||
Total Investments — 52.7% (Cost $2,963,008) | 2,980,946 | |||||||
Other Assets in Excess of Liabilities — 47.3% | 2,671,463 | |||||||
Net Assets — 100.0% | $ | 5,652,409 |
ETF — Exchange Traded Fund
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Money Market Fund | 3.3 | % | ||
Debt Fund | 19.5 | |||
Equity Fund | 29.9 | |||
Total Investments | 52.7 | |||
Other Assets in Excess of Liabilities | 47.3 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
71
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
CORPORATE BONDS — 85.9% | ||||||||
Advertising — 2.4% | ||||||||
Affinion Group, Inc., 7.88%, 12/15/18 | 2,555,000 | $ | 2,190,913 | |||||
Aerospace/Defense — 2.0% | ||||||||
Ducommun, Inc., 9.75%, 07/15/18 | 1,740,000 | 1,840,050 | ||||||
Auto Manufacturers — 1.0% | ||||||||
Navistar International Corp., 8.25%, 11/01/21 | 985,000 | 949,294 | ||||||
Auto Parts & Equipment — 2.8% | ||||||||
Exide Technologies, 8.63%, 02/01/18 | 3,282,000 | 2,605,088 | ||||||
Beverages — 2.5% | ||||||||
CEDC Finance Corp. International, Inc., 9.13%, 12/01/16‡ | 3,650,000 | 2,326,875 | ||||||
Chemicals — 4.4% | ||||||||
American Pacific Corp., 9.00%, 02/01/15 | 2,175,000 | 2,119,266 | ||||||
Phibro Animal Health Corp., 9.25%, 07/01/18‡ | 2,030,000 | 1,999,550 | ||||||
Total Chemicals | 4,118,816 | |||||||
Commercial Services — 6.3% | ||||||||
DynCorp International, Inc., 10.38%, 07/01/17 | 3,079,000 | 2,647,940 | ||||||
Harland Clarke Holdings Corp., 9.50%, 05/15/15 | 3,805,000 | 3,177,175 | ||||||
Total Commercial Services | 5,825,115 | |||||||
Computers — 6.3% | ||||||||
Spansion LLC, 7.88%, 11/15/17 | 2,500,000 | 2,412,500 | ||||||
Stream Global Services, Inc., 11.25%, 10/01/14 | 2,151,000 | 2,204,775 | ||||||
Unisys Corp., 12.50%, 01/15/16 | 1,113,000 | 1,185,345 | ||||||
Total Computers | 5,802,620 | |||||||
Distribution / Wholesale — 3.1% | ||||||||
SGS International, Inc., 12.00%, 12/15/13 | 2,815,000 | 2,829,075 | ||||||
Diversified Financial Services — 1.1% | ||||||||
GFI Group, Inc., 8.38%, 07/19/18 | 1,175,000 | 992,875 |
See accompanying Notes to Financial Statements.
72
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Electrical Components & Equipment — 1.7% | ||||||||
Advanced Lighting Technologies, Inc., 10.50%, 06/01/19‡ | 1,600,000 | $ | 1,568,000 | |||||
Electronics — 3.0% | ||||||||
Sanmina-SCI Corp., 7.00%, 05/15/19‡ | 1,000,000 | 975,000 | ||||||
Stoneridge, Inc., 9.50%, 10/15/17‡ | 1,715,000 | 1,768,594 | ||||||
Total Electronics | 2,743,594 | |||||||
Food — 9.2% | ||||||||
Bumble Bee Acquisition Corp., 9.00%, 12/15/17‡ | 2,275,000 | 2,280,687 | ||||||
Chiquita Brands International, Inc., 7.50%, 11/01/14 | 1,820,000 | 1,815,450 | ||||||
Harmony Foods Corp., 10.00%, 05/01/16‡ | 2,230,000 | 2,324,775 | ||||||
SUPERVALU, Inc., 8.00%, 05/01/16 | 2,020,000 | 2,055,350 | ||||||
Total Food | 8,476,262 | |||||||
Forest Products & Paper — 2.3% | ||||||||
Exopack Holding Corp., 10.00%, 06/01/18 | 2,110,000 | 2,125,825 | ||||||
Healthcare – Products — 10.2% | ||||||||
Kinetic Concepts, Inc., 12.50%, 11/01/19‡ | 2,715,000 | 2,484,225 | ||||||
Merge Healthcare, Inc., 11.75%, 05/01/15 | 2,850,000 | 2,956,875 | ||||||
Rotech Healthcare, Inc., 10.50%, 03/15/18 | 2,375,000 | 1,211,250 | ||||||
Rotech Healthcare, Inc., 10.75%, 10/15/15 | 2,885,000 | 2,784,025 | ||||||
Total Healthcare – Products | 9,436,375 | |||||||
Healthcare – Services — 8.6% | ||||||||
Alliance Healthcare Services, Inc., 8.00%, 12/01/16 | 3,410,000 | 2,566,025 | ||||||
Radiation Therapy Services, Inc., 8.88%, 01/15/17‡ | 1,010,000 | 974,650 | ||||||
Radnet Management, Inc., 10.38%, 04/01/18 | 2,005,000 | 2,015,025 | ||||||
Select Medical Holdings Corp., 6.49%, 09/15/15@ | 2,425,000 | 2,364,375 | ||||||
Total Healthcare – Services | 7,920,075 | |||||||
Household Products / Wares — 2.3% | ||||||||
Central Garden & Pet Co., 8.25%, 03/01/18 | 2,125,000 | 2,140,937 | ||||||
Leisure Time — 2.6% | ||||||||
ICON Health & Fitness, 11.88%, 10/15/16‡ | 2,725,000 | 2,391,187 | ||||||
Miscellaneous Manufacturing — 2.4% | ||||||||
JB Poindexter & Co., Inc., 9.00%, 04/01/22‡ | 2,235,000 | 2,246,175 |
See accompanying Notes to Financial Statements.
73
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Oil & Gas — 5.9% | ||||||||
United Refining Co., 10.50%, 02/28/18 | 2,760,000 | $ | 2,842,800 | |||||
Venoco, Inc., 11.50%, 10/01/17 | 2,475,000 | 2,611,125 | ||||||
Total Oil & Gas | 5,453,925 | |||||||
Retail — 2.0% | ||||||||
RadioShack Corp., 6.75%, 05/15/19 | 2,450,000 | 1,831,375 | ||||||
Telecommunications — 2.5% | ||||||||
Cincinnati Bell, Inc., 8.75%, 03/15/18 | 2,400,000 | 2,322,000 | ||||||
Transportation — 1.3% | ||||||||
PHI, Inc., 8.63%, 10/15/18 | 1,185,000 | 1,202,775 | ||||||
Total CORPORATE BONDS (Cost $81,897,839) | 79,339,226 | |||||||
FOREIGN BONDS — 11.0% | ||||||||
Airlines — 3.9% | ||||||||
Air Canada, 12.00%, 02/01/16 (Canada)‡ | 4,069,711 | 3,611,868 | ||||||
Oil & Gas — 1.8% | ||||||||
Welltec A/S, 8.00%, 02/01/19 (Denmark)‡ | 1,710,000 | 1,650,150 | ||||||
Transportation — 5.3% | ||||||||
CHC Helicopter SA, 9.25%, 10/15/20 (Luxembourg) | 2,786,000 | 2,737,245 | ||||||
Navios Maritime Holdings, Inc., 8.13%, 02/15/19 (Marshall Islands) | 2,470,000 | 2,124,200 | ||||||
Total Transportation | 4,861,445 | |||||||
Total FOREIGN BONDS (Cost $10,579,572) | 10,123,463 | |||||||
MONEY MARKET FUND — 0.9% | ||||||||
BlackRock Liquidity Funds TempFund Portfolio – Dollar Class (Cost $792,229) | 792,229 | 792,229 | ||||||
Total Investments — 97.8% (Cost $93,269,640) | 90,254,918 | |||||||
Other Assets in Excess of Liabilities — 2.2% | 2,073,571 | |||||||
Net Assets — 100.0% | $ | 92,328,489 |
‡ | 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. |
@ | Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2012. |
See accompanying Notes to Financial Statements.
74
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Advertising | 2.4 | % | ||
Aerospace/Defense | 2.0 | |||
Airlines | 3.9 | |||
Auto Manufacturers | 1.0 | |||
Auto Parts & Equipment | 2.8 | |||
Beverages | 2.5 | |||
Chemicals | 4.4 | |||
Commercial Services | 6.3 | |||
Computers | 6.3 | |||
Distribution / Wholesale | 3.1 | |||
Diversified Financial Services | 1.1 | |||
Electrical Components & Equipment | 1.7 | |||
Electronics | 3.0 | |||
Food | 9.2 | |||
Forest Products & Paper | 2.3 | |||
Healthcare – Products | 10.2 | |||
Healthcare – Services | 8.6 | |||
Household Products / Wares | 2.3 | |||
Leisure Time | 2.6 | |||
Miscellaneous Manufacturing | 2.4 | |||
Oil & Gas | 7.7 | |||
Retail | 2.0 | |||
Telecommunications | 2.5 | |||
Transportation | 6.6 | |||
Money Market Fund | 0.9 | |||
Total Investments | 97.8 | |||
Other Assets in Excess of Liabilities | 2.2 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
75
ADVISORSHARES TRUST
ROCKLEDGE SECTOR SAM ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 103.8% | ||||||||
Equity Fund — 103.8% | ||||||||
Financial Select Sector SPDR Fund | 45,112 | $ | 659,537 | |||||
Health Care Select Sector SPDR Fund | 17,181 | 652,878 | ||||||
Technology Select Sector SPDR Fund | 22,773 | 654,724 | ||||||
Utilities Select Sector SPDR Fund | 17,559 | 649,507 | ||||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $2,550,857) | 2,616,646 | |||||||
Securities Sold, Not Yet Purchased — (104.8)% | ||||||||
Equity Fund — (104.8)% | ||||||||
Consumer Discretionary Select Sector SPDR Fund | 14,158 | (619,837 | ) | |||||
Consumer Staples Select Sector SPDR Fund | 19,300 | (671,061 | ) | |||||
Energy Select Sector SPDR Fund | 9,007 | (597,794 | ) | |||||
Industrial Select Sector SPDR Fund | 15,937 | (568,473 | ) | |||||
Materials Select Sector SPDR Fund | 5,244 | (185,061 | ) | |||||
Total Securities Sold, Not Yet Purchased (Proceeds Received $(2,576,302)) | (2,642,226 | ) | ||||||
Total Investments — (1.0%) (Cost $(25,445)) | (25,580 | ) | ||||||
Other Assets in Excess of Liabilities — 101.0% | 2,547,590 | |||||||
Net Assets — 100.0% | $ | 2,522,010 |
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Equity Fund | (1.0 | )% | ||
Total Investments | (1.0 | ) | ||
Other Assets in Excess of Liabilities | 101.0 | % | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
76
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
COMMON STOCKS — 99.7% | ||||||||
Aerospace/Defense — 2.0% | ||||||||
General Dynamics Corp. | 1,269 | $ | 83,704 | |||||
Raytheon Co. | 1,458 | 82,508 | ||||||
Total Aerospace/Defense | 166,212 | |||||||
Agriculture — 2.9% | ||||||||
Altria Group, Inc. | 2,349 | 81,158 | ||||||
Lorillard, Inc. | 603 | 79,566 | ||||||
Philip Morris International, Inc. | 936 | 81,675 | ||||||
Total Agriculture | 242,399 | |||||||
Apparel — 2.9% | ||||||||
Carter's, Inc.* | 1,530 | 80,478 | ||||||
Coach, Inc. | 1,377 | 80,527 | ||||||
Ralph Lauren Corp. | 567 | 79,414 | ||||||
Total Apparel | 240,419 | |||||||
Auto Parts & Equipment — 1.0% | ||||||||
WABCO Holdings, Inc.* | 1,638 | 86,699 | ||||||
Beverages — 2.2% | ||||||||
Brown-Forman Corp., Class B | 828 | 80,192 | ||||||
Constellation Brands, Inc., Class A* | 3,650 | 98,769 | ||||||
Total Beverages | 178,961 | |||||||
Biotechnology — 1.0% | ||||||||
Gilead Sciences, Inc.* | 1,557 | 79,843 | ||||||
Chemicals — 2.0% | ||||||||
Albemarle Corp. | 1,368 | 81,587 | ||||||
NewMarket Corp. | 378 | 81,875 | ||||||
Total Chemicals | 163,462 | |||||||
Commercial Services — 12.0% | ||||||||
Apollo Group, Inc., Class A* | 2,280 | 82,513 | ||||||
Chemed Corp. | 1,332 | 80,506 | ||||||
Corporate Executive Board Co. (The) | 2,034 | 83,150 | ||||||
Gartner, Inc.* | 1,863 | 80,202 | ||||||
Global Payments, Inc. | 1,944 | 84,039 | ||||||
ITT Educational Services, Inc.* | 1,359 | 82,559 |
See accompanying Notes to Financial Statements.
77
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Commercial Services — 12.0% (continued) | ||||||||
Lender Processing Services, Inc. | 3,294 | $ | 83,272 | |||||
Moody's Corp. | 2,250 | 82,237 | ||||||
Robert Half International, Inc. | 2,907 | 83,053 | ||||||
SEI Investments Co. | 4,149 | 82,524 | ||||||
Strayer Education, Inc. | 783 | 85,363 | ||||||
Zillow, Inc., Class A* | 2,277 | 87,961 | ||||||
Total Commercial Services | 997,379 | |||||||
Computers — 3.9% | ||||||||
Brocade Communications Systems, Inc.* | 16,605 | 81,863 | ||||||
Dell, Inc.* | 6,624 | 82,933 | ||||||
Diebold, Inc. | 2,196 | 81,054 | ||||||
International Business Machines Corp. | 405 | 79,210 | ||||||
Total Computers | 325,060 | |||||||
Diversified Financial Services — 5.0% | ||||||||
American Express Co. | 1,404 | 81,727 | ||||||
Franklin Resources, Inc. | 765 | 84,907 | ||||||
Greenhill & Co., Inc. | 2,376 | 84,704 | ||||||
NASDAQ Omx Group, Inc. (The)* | 3,726 | 84,469 | ||||||
World Acceptance Corp.* | 1,215 | 79,947 | ||||||
Total Diversified Financial Services | 415,754 | |||||||
Electrical Components & Equipment — 1.0% | ||||||||
Belden, Inc. | 2,475 | 82,541 | ||||||
Electronics — 2.9% | ||||||||
Mettler-Toledo International, Inc.* | 513 | 79,951 | ||||||
Tech Data Corp.* | 1,692 | 81,504 | ||||||
Waters Corp.* | 1,017 | 80,821 | ||||||
Total Electronics | 242,276 | |||||||
Food — 2.0% | ||||||||
Fresh Market, Inc. (The)* | 1,494 | 80,123 | ||||||
Snyders-Lance, Inc. | 3,258 | 82,200 | ||||||
Total Food | 162,323 | |||||||
Healthcare – Products — 4.9% | ||||||||
C.R. Bard, Inc. | 756 | 81,224 | ||||||
Cyberonics, Inc.* | 1,755 | 78,870 |
See accompanying Notes to Financial Statements.
78
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Healthcare – Products — 4.9% (continued) | ||||||||
Idexx Laboratories, Inc.* | 837 | $ | 80,461 | |||||
Masimo Corp.* | 3,780 | 84,596 | ||||||
Varian Medical Systems, Inc.* | 1,323 | 80,399 | ||||||
Total Healthcare – Products | 405,550 | |||||||
Healthcare – Services — 1.0% | ||||||||
Laboratory Corp. of America Holdings* | 882 | 81,682 | ||||||
Home Furnishings — 1.0% | ||||||||
Tempur-Pedic International, Inc.* | 3,708 | 86,730 | ||||||
Insurance — 1.0% | ||||||||
Axis Capital Holdings Ltd. (Bermuda) | 2,520 | 82,026 | ||||||
Internet — 4.0% | ||||||||
Ancestry.com, Inc.* | 3,010 | 82,865 | ||||||
F5 Networks, Inc.* | 819 | 81,540 | ||||||
OpenTable, Inc.* | 1,818 | 81,828 | ||||||
Symantec Corp.* | 5,643 | 82,444 | ||||||
Total Internet | 328,677 | |||||||
Media — 2.0% | ||||||||
DIRECTV, Class A* | 1,683 | 82,164 | ||||||
Viacom, Inc., Class B | 1,710 | 80,404 | ||||||
Total Media | 162,568 | |||||||
Metal Fabricate/Hardware — 1.0% | ||||||||
Mueller Industries, Inc. | 1,953 | 83,178 | ||||||
Mining — 1.0% | ||||||||
Southern Copper Corp. | 2,637 | 83,092 | ||||||
Miscellaneous Manufacturing — 2.0% | ||||||||
Cooper Industries PLC, Class A (Ireland) | 1,197 | 81,611 | ||||||
Illinois Tool Works, Inc. | 1,539 | 81,398 | ||||||
Total Miscellaneous Manufacturing | 163,009 | |||||||
Office/Business Equipment — 1.0% | �� | |||||||
Pitney Bowes, Inc. | 5,445 | 81,512 |
See accompanying Notes to Financial Statements.
79
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Oil & Gas — 2.0% | ||||||||
CVR Energy, Inc.* | 3,240 | $ | 86,119 | |||||
Exxon Mobil Corp. | 978 | 83,688 | ||||||
Total Oil & Gas | 169,807 | |||||||
Pharmaceuticals — 2.9% | ||||||||
Herbalife Ltd. (Cayman Islands) | 1,674 | 80,904 | ||||||
Medicis Pharmaceutical Corp., Class A | 2,385 | 81,448 | ||||||
Pfizer, Inc. | 3,588 | 82,524 | ||||||
Total Pharmaceuticals | 244,876 | |||||||
Retail — 21.0% | ||||||||
Abercrombie & Fitch Co., Class A | 2,628 | 89,720 | ||||||
Best Buy Co., Inc. | 4,197 | 87,969 | ||||||
Brinker International, Inc. | 2,619 | 83,468 | ||||||
Cheesecake Factory, Inc. (The)* | 2,664 | 85,141 | ||||||
Chico's FAS, Inc. | 5,643 | 83,742 | ||||||
Children's Place Retail Stores, Inc. (The)* | 1,708 | 85,110 | ||||||
Cracker Barrel Old Country Store, Inc. | 1,323 | 83,084 | ||||||
Dillard's, Inc., Class A | 1,260 | 80,237 | ||||||
First Cash Financial Services, Inc.* | 2,018 | 81,063 | ||||||
Gamestop Corp., Class A | 4,500 | 82,620 | ||||||
Gap, Inc. (The) | 2,997 | 81,998 | ||||||
Hibbett Sports, Inc.* | 1,413 | 81,544 | ||||||
Home Depot, Inc. (The) | 1,539 | 81,552 | ||||||
HSN, Inc. | 2,016 | 81,346 | ||||||
Panera Bread Co., Class A* | 567 | 79,062 | ||||||
PetSmart, Inc. | 1,206 | 82,225 | ||||||
Ross Stores, Inc. | 1,215 | 75,901 | ||||||
Saks, Inc.* | 8,208 | 87,415 | ||||||
Staples, Inc. | 6,300 | 82,215 | ||||||
Walgreen Co. | 2,709 | 80,132 | ||||||
Williams-Sonoma, Inc. | 2,404 | 84,068 | ||||||
Total Retail | 1,739,612 | |||||||
Semiconductors — 4.1% | ||||||||
Atmel Corp.* | 12,897 | 86,410 | ||||||
Cirrus Logic, Inc.* | 2,826 | 84,441 |
See accompanying Notes to Financial Statements.
80
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Semiconductors — 4.1% (continued) | ||||||||
QLogic Corp.* | 5,923 | $ | 81,086 | |||||
Veeco Instruments, Inc.* | 2,502 | 85,969 | ||||||
Total Semiconductors | 337,906 | |||||||
Software — 7.0% | ||||||||
Acxiom Corp.* | 5,706 | 86,218 | ||||||
Akamai Technologies, Inc.* | 2,610 | 82,868 | ||||||
BMC Software, Inc.* | 1,908 | 81,433 | ||||||
CA, Inc. | 3,132 | 84,846 | ||||||
Electronic Arts, Inc.* | 6,705 | 82,807 | ||||||
Fiserv, Inc.* | 1,134 | 81,897 | ||||||
Intuit, Inc. | 1,386 | 82,259 | ||||||
Total Software | 582,328 | |||||||
Telecommunications — 2.0% | ||||||||
Cisco Systems, Inc. | 4,770 | 81,901 | ||||||
Neustar, Inc., Class A* | 2,541 | 84,869 | ||||||
Total Telecommunications | 166,770 | |||||||
Toys/Games/Hobbies — 1.0% | ||||||||
Mattel, Inc. | 2,484 | 80,581 | ||||||
Total Investments — 99.7% (Cost $7,946,006) | 8,263,232 | |||||||
Other Assets in Excess of Liabilities — 0.3% | 27,642 | |||||||
Net Assets — 100.0% | $ | 8,290,874 |
* | Non-income producing security |
See accompanying Notes to Financial Statements.
81
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Aerospace/Defense | 2.0 | % | ||
Agriculture | 2.9 | |||
Apparel | 2.9 | |||
Auto Parts & Equipment | 1.0 | |||
Beverages | 2.2 | |||
Biotechnology | 1.0 | |||
Chemicals | 2.0 | |||
Commercial Services | 12.0 | |||
Computers | 3.9 | |||
Diversified Financial Services | 5.0 | |||
Electrical Components & Equipment | 1.0 | |||
Electronics | 2.9 | |||
Food | 2.0 | |||
Healthcare – Products | 4.9 | |||
Healthcare – Services | 1.0 | |||
Home Furnishings | 1.0 | |||
Insurance | 1.0 | |||
Internet | 4.0 | |||
Media | 2.0 | |||
Metal Fabricate/Hardware | 1.0 | |||
Mining | 1.0 | |||
Miscellaneous Manufacturing | 2.0 | |||
Office/Business Equipment | 1.0 | |||
Oil & Gas | 2.0 | |||
Pharmaceuticals | 2.9 | |||
Retail | 21.0 | |||
Semiconductors | 4.1 | |||
Software | 7.0 | |||
Telecommunications | 2.0 | |||
Toys/Games/Hobbies | 1.0 | |||
Total Investments | 99.7 | |||
Other Assets in Excess of Liabilities | 0.3 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
82
ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments
June 30, 2012
Investments | Shares | Value | ||||||
COMMON STOCKS — 92.1% | ||||||||
Beverages — 9.5% | ||||||||
Cia de Bebidas DAS Americas (Brazil)(a) | 4,983 | $ | 190,998 | |||||
Coca-Cola Enterprises, Inc. | 7,044 | 197,514 | ||||||
Coca-Cola Femsa SAB de CV (Mexico)(a) | 1,724 | 225,637 | ||||||
Total Beverages | 614,149 | |||||||
Biotechnology — 3.7% | ||||||||
Novozymes A/S (Denmark)(a) | 9,245 | 238,521 | ||||||
Chemicals — 4.8% | ||||||||
Potash Corp. of Saskatchewan, Inc. (Canada) | 7,144 | 312,121 | ||||||
Commercial Services — 4.1% | ||||||||
Sgs SA (Switzerland)(a) | 14,053 | 263,213 | ||||||
Computers — 2.6% | ||||||||
Infosys Ltd. (India)(a) | 3,709 | 167,127 | ||||||
Cosmetics / Personal Care — 4.8% | ||||||||
L'Oreal SA (France)(a) | 13,412 | 313,841 | ||||||
Distribution / Wholesale — 5.7% | ||||||||
LI & Fung Ltd. (Hong Kong)(a) | 96,265 | 369,658 | ||||||
Diversified Financial Services — 3.0% | ||||||||
Lazard Ltd., Class A (Bermuda) | 7,469 | 194,119 | ||||||
Engineering & Construction — 2.9% | ||||||||
ABB Ltd. (Switzerland)*(a) | 11,346 | 185,167 | ||||||
Food — 5.6% | ||||||||
BRF – Brasil Foods SA (Brazil)(a) | 6,659 | 101,150 | ||||||
Nestle SA (Switzerland)(a) | 4,388 | 262,139 | ||||||
Total Food | 363,289 | |||||||
Healthcare – Products — 4.7% | ||||||||
Essilor International SA (France)(a) | 6,502 | 302,278 | ||||||
Holding Companies – Diversified — 2.3% | ||||||||
LVMH Moet Hennessy Louis Vuitton SA (France)(a) | 4,842 | 146,422 | ||||||
Insurance — 4.1% | ||||||||
ACE Ltd. (Switzerland) | 3,574 | 264,941 |
See accompanying Notes to Financial Statements.
83
ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
June 30, 2012
Investments | Shares | Value | ||||||
Internet — 3.6% | ||||||||
Baidu, Inc. (China)*(a) | 2,016 | $ | 231,800 | |||||
Machinery – Diversified — 2.8% | ||||||||
Fanuc Corp. (Japan)(a) | 6,618 | 181,333 | ||||||
Oil & Gas Services — 4.3% | ||||||||
Core Laboratories N.V. (Netherlands) | 2,402 | 278,392 | ||||||
Pharmaceuticals — 5.3% | ||||||||
NOVO Nordisk A/S (Denmark)(a) | 2,356 | 342,421 | ||||||
Retail — 7.3% | ||||||||
Arcos Dorados Holdings, Inc., Class A (Argentina) | 20,153 | 297,861 | ||||||
Wal-Mart de Mexico SAB de CV (Mexico)(a) | 6,654 | 177,263 | ||||||
Total Retail | 475,124 | |||||||
Semiconductors — 6.9% | ||||||||
Arm Holdings PLC (United Kingdom)(a) | 5,244 | 124,755 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a) | 22,814 | 318,483 | ||||||
Total Semiconductors | 443,238 | |||||||
Transportation — 4.1% | ||||||||
Canadian National Railway Co. (Canada) | 3,159 | 266,556 | ||||||
Total Common Stocks (Cost $6,144,175) | 5,953,710 | |||||||
MONEY MARKET FUND — 8.1% | ||||||||
Invesco Government & Agency Portfolio – Private Investment Class (Cost $521,354) | 521,354 | 521,354 | ||||||
Total Investments — 100.2% (Cost $6,665,529) | 6,475,064 | |||||||
Liabilities in Excess of Other Assets — (0.2%) | (12,655 | ) | ||||||
Net Assets — 100.0% | $ | 6,462,409 |
ADR — American Depositary Receipt
* | Non-income producing security |
(a) | American Depositary Receipt |
See accompanying Notes to Financial Statements.
84
ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
% of Net Assets | ||||
Beverages | 9.5 | % | ||
Biotechnology | 3.7 | |||
Chemicals | 4.8 | |||
Commercial Services | 4.1 | |||
Computers | 2.6 | |||
Cosmetics / Personal Care | 4.8 | |||
Distribution / Wholesale | 5.7 | |||
Diversified Financial Services | 3.0 | |||
Engineering & Construction | 2.9 | |||
Food | 5.6 | |||
Healthcare – Products | 4.7 | |||
Holding Companies – Diversified | 2.3 | |||
Insurance | 4.1 | |||
Internet | 3.6 | |||
Machinery – Diversified | 2.8 | |||
Oil & Gas Services | 4.3 | |||
Pharmaceuticals | 5.3 | |||
Retail | 7.3 | |||
Semiconductors | 6.9 | |||
Transportation | 4.1 | |||
Money Market Fund | 8.1 | |||
Total Investments | 100.2 | |||
Liabilities in Excess of Other Assets | (0.2 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
85
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2012
Accuvest Global Long Short ETF | Accuvest Global Opportunities ETF | Active Bear ETF | Cambria Global Tactical ETF | Dent Tactical ETF | Global Echo ETF | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at Cost | $ | 17,153,014 | $ | 13,364,761 | $ | 183,818,915 | $ | 75,928,576 | $ | 3,792,422 | $ | 5,144,173 | ||||||||||||
Investments, at Market Value | 17,578,142 | 13,461,519 | 183,818,915 | 78,256,009 | 3,861,204 | 5,202,633 | ||||||||||||||||||
Cash | 65,216 | — | 66,557,758 | — | — | — | ||||||||||||||||||
Cash collateral held at brokers | 9,655,360 | — | 373,667,097 | — | — | — | ||||||||||||||||||
Receivable from Securities Sold | 1,394,636 | — | 25,480,392 | — | 2,844,372 | 486,631 | ||||||||||||||||||
Capital Shares Receivable | 121,287 | — | 4,221,474 | — | — | — | ||||||||||||||||||
Interest Receivable | — | — | 1,116 | 297 | 143 | 8,072 | ||||||||||||||||||
Dividend Receivable | 5,270 | — | — | 7,930 | 1,602 | 6,108 | ||||||||||||||||||
Reclaim Receivable | — | — | — | — | — | — | ||||||||||||||||||
Due from Investment Advisor | — | — | — | — | 7,150 | — | ||||||||||||||||||
Prepaid Trustee Fees | 148 | 148 | 148 | 148 | 148 | — | ||||||||||||||||||
Prepaid Expenses | 8,841 | 10,838 | 6,040 | 1,610 | 4,226 | — | ||||||||||||||||||
Total Assets | 28,828,900 | 13,472,505 | 653,752,940 | 78,265,994 | 6,718,845 | 5,703,444 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Due to Custodian | — | — | — | 227 | 120 | 1,224 | ||||||||||||||||||
Securities Sold, Not Yet Purchased * | 10,713,565 | — | 301,334,083 | — | — | — | ||||||||||||||||||
Advisory Payable | 7,189 | 7,627 | 348,582 | 45,893 | — | 12,871 | ||||||||||||||||||
Payable for Securities Purchased | — | — | 38,393,012 | — | — | 605,051 | ||||||||||||||||||
Capital Shares Payable | — | — | — | — | — | — | ||||||||||||||||||
Dividend Payable | — | — | 212,461 | — | — | — | ||||||||||||||||||
Interest Payable | 57,329 | — | 133,515 | — | — | — | ||||||||||||||||||
Payable to Global Echo Foundation | — | — | — | — | — | 4,681 | ||||||||||||||||||
Accrued Expenses | 28,853 | 22,625 | 107,804 | 48,926 | 39,874 | — | ||||||||||||||||||
Total Liabilities | 10,806,936 | 30,252 | 340,529,457 | 95,046 | 39,994 | 623,827 | ||||||||||||||||||
NET ASSETS | $ | 18,021,964 | $ | 13,442,253 | $ | 313,223,483 | $ | 78,170,948 | $ | 6,678,851 | $ | 5,079,617 | ||||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 22,850,125 | $ | 14,316,721 | $ | 321,627,591 | $ | 96,424,454 | $ | 8,249,828 | $ | 5,027,441 | ||||||||||||
Undistributed Net Investment Income (Loss) | (194,819 | ) | 128,764 | (2,880,389 | ) | 349,617 | (217,067 | ) | — | |||||||||||||||
Accumulated Net Gain (Loss) on Investments | (5,214,203 | ) | (1,099,990 | ) | (12,114,300 | ) | (20,930,556 | ) | (1,422,692 | ) | (6,284 | ) | ||||||||||||
Unrealized Appreciation (Depreciation) on Investments | 580,861 | 96,758 | 6,590,581 | 2,327,433 | 68,782 | 58,460 | ||||||||||||||||||
NET ASSETS | $ | 18,021,964 | $ | 13,442,253 | $ | 313,223,483 | $ | 78,170,948 | $ | 6,678,851 | $ | 5,079,617 | ||||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 850,000 | 550,000 | 13,425,000 | 3,300,000 | 375,000 | 100,000 | ||||||||||||||||||
Net Asset Value (NAV) Per Share | $ | 21.20 | $ | 24.44 | $ | 23.33 | $ | 23.69 | $ | 17.81 | $ | 50.80 | ||||||||||||
*Proceeds Received from Securities Sold, Not Yet Purchased | $ | 10,869,298 | $ | — | $ | 307,924,664 | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements.
86
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2012
Madrona Domestic ETF | Madrona Global Bond ETF | Madrona International ETF | Meidell Tactical Advantage ETF | Peritus High Yield ETF | Rockledge SectorSAM ETF | TrimTabs Float Shrink ETF | WCM/BNY Mellon Focused Growth ADR ETF | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Investments, at Cost | $ | 15,176,677 | $ | 20,903,353 | $ | 15,430,767 | $ | 2,963,008 | $ | 93,269,640 | $ | 2,550,857 | $ | 7,946,006 | $ | 6,665,529 | ||||||||||||||||
Investments, at Market Value | 15,194,233 | 21,263,040 | 14,177,984 | 2,980,946 | 90,254,918 | 2,616,646 | 8,263,232 | 6,475,064 | ||||||||||||||||||||||||
Cash | 2,250 | — | — | — | — | 80,079 | — | — | ||||||||||||||||||||||||
Cash collateral held at brokers | — | — | — | — | — | 2,466,533 | — | — | ||||||||||||||||||||||||
Receivable from Securities Sold | — | — | — | 2,697,833 | 702,042 | — | 2,553,077 | — | ||||||||||||||||||||||||
Capital Shares Receivable | — | — | — | — | — | — | 585,563 | — | ||||||||||||||||||||||||
Interest Receivable | 8 | 17 | 1,523 | 9 | 2,196,788 | — | — | 8 | ||||||||||||||||||||||||
Dividend Receivable | 17,104 | 9,388 | 64,315 | 2,708 | — | — | 5,491 | 1,305 | ||||||||||||||||||||||||
Reclaim Receivable | — | — | 2,273 | — | — | — | — | 8,215 | ||||||||||||||||||||||||
Due from Investment Advisor | — | — | — | — | — | 8,912 | — | 19,110 | ||||||||||||||||||||||||
Prepaid Trustee Fees | 148 | 148 | 148 | 148 | 148 | 148 | 148 | 148 | ||||||||||||||||||||||||
Prepaid Expenses | 6,981 | 6,982 | 8,137 | 6,673 | 2,550 | 14,238 | 16,858 | 3,220 | ||||||||||||||||||||||||
Total Assets | 15,220,724 | 21,279,575 | 14,254,380 | 5,688,317 | 93,156,446 | 5,186,556 | 11,424,369 | 6,507,070 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Due to Custodian | — | 39,237 | 1,290 | 120 | 706,420 | — | 3,848 | 8,710 | ||||||||||||||||||||||||
Securities Sold, Not Yet Purchased* | — | — | — | — | — | 2,642,226 | — | — | ||||||||||||||||||||||||
Advisory Payable | 2,333 | 7,757 | 2,841 | 5,546 | 77,248 | — | 2,696 | — | ||||||||||||||||||||||||
Payable for Securities Purchased | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Capital Shares Payable | — | — | — | — | — | — | 3,096,884 | — | ||||||||||||||||||||||||
Dividend Payable | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Interest Payable | — | — | — | — | — | 404 | — | — | ||||||||||||||||||||||||
Payable to Global Echo Foundation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Accrued Expenses | 30,171 | 37,612 | 31,533 | 30,242 | 44,289 | 21,916 | 30,067 | 35,951 | ||||||||||||||||||||||||
Total Liabilities | 32,504 | 84,606 | 35,664 | 35,908 | 827,957 | 2,664,546 | 3,133,495 | 44,661 | ||||||||||||||||||||||||
NET ASSETS | $ | 15,188,220 | $ | 21,194,969 | $ | 14,218,716 | $ | 5,652,409 | $ | 92,328,489 | $ | 2,522,010 | $ | 8,290,874 | $ | 6,462,409 | ||||||||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 16,191,196 | $ | 20,837,769 | $ | 17,284,924 | $ | 5,992,434 | $ | 95,167,840 | $ | 2,588,482 | $ | 7,970,755 | $ | 6,801,503 | ||||||||||||||||
Undistributed Net Investment Income (Loss) | 17,812 | 5,036 | 143,255 | 407 | 221,026 | (13,425 | ) | 12,490 | 12,232 | |||||||||||||||||||||||
Accumulated Net Gain (Loss) on Investments | (1,038,344 | ) | (7,523 | ) | (1,956,680 | ) | (358,370 | ) | (45,655 | ) | (52,912 | ) | (9,597 | ) | (160,861 | ) | ||||||||||||||||
Unrealized Appreciation (Depreciation) on Investments | 17,556 | 359,687 | (1,252,783 | ) | 17,938 | (3,014,722 | ) | (135 | ) | 317,226 | (190,465 | ) | ||||||||||||||||||||
NET ASSETS | $ | 15,188,220 | $ | 21,194,969 | $ | 14,218,716 | $ | 5,652,409 | $ | 92,328,489 | $ | 2,522,010 | $ | 8,290,874 | $ | 6,462,409 | ||||||||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized | 600,000 | 825,000 | 675,000 | 225,000 | 1,900,000 | 100,000 | 250,000 | 225,000 | ||||||||||||||||||||||||
Net Asset Value (NAV) Per Share | $ | 25.31 | $ | 25.69 | $ | 21.06 | $ | 25.12 | $ | 48.59 | $ | 25.22 | $ | 33.16 | $ | 28.72 | ||||||||||||||||
*Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,576,302 | $ | — | $ | — |
See accompanying Notes to Financial Statements.
87
ADVISORSHARES TRUST
Statements of Operations
Accuvest Global Long Short ETF | Accuvest Global Opportunities ETF(1) | Active Bear ETF | Cambria Global Tactical ETF | Dent Tactical ETF | Global Echo ETF(2) | |||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||
Dividend Income | $ | 221,031 | $ | 184,221 | $ | – | $ | 2,554,894 | $ | 69,017 | $ | 20,187 | ||||||||||||
Interest Income | — | — | 8,316 | 4,782 | 827 | 1,288 | ||||||||||||||||||
Foreign withholding tax | — | — | — | — | — | (1,228 | ) | |||||||||||||||||
Total Investment Income | 221,031 | 184,221 | 8,316 | 2,559,676 | 69,844 | 20,247 | ||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||
Advisory Fees | 146,642 | 42,148 | 2,178,565 | 1,235,278 | 132,616 | 18,875 | ||||||||||||||||||
Dividend Expense | 225,490 | — | 1,023,723 | — | — | — | ||||||||||||||||||
Professional Fees | 74,663 | 33,713 | 49,160 | 23,377 | 29,457 | — | ||||||||||||||||||
Accounting & Administration Fees | 49,325 | 1,773 | 60,930 | 83,150 | 87,791 | — | ||||||||||||||||||
Offering Fees | 13,788 | — | 32,147 | 20,784 | — | — | ||||||||||||||||||
Exchange Listing Fees | 13,668 | 7,663 | 3,559 | 7,890 | 10,957 | — | ||||||||||||||||||
Pricing Fees | 11,845 | 3,514 | 6,842 | 6,047 | 6,606 | — | ||||||||||||||||||
Report to Shareholders | 11,263 | 8,673 | 51,695 | 45,624 | 6,142 | — | ||||||||||||||||||
Custody Fees | 3,981 | 569 | 9,063 | 27,344 | 188 | — | ||||||||||||||||||
Insurance Fees | 3,476 | — | 31 | 2,037 | 1,472 | — | ||||||||||||||||||
Transfer Agent Fees | 2,092 | 379 | 16,808 | 11,211 | 65 | — | ||||||||||||||||||
Trustee Fees | 600 | 777 | 102 | — | 7,756 | — | ||||||||||||||||||
Interest on Securities Sold Short | 141,845 | — | 969,392 | — | — | — | ||||||||||||||||||
Contribution to Global Echo Foundation | — | — | — | — | — | 6,864 | ||||||||||||||||||
Licensing Fees | — | — | — | — | — | — | ||||||||||||||||||
Miscellaneous Fees | 2,261 | 1,632 | 35,648 | 25,566 | 437 | — | ||||||||||||||||||
Total Expenses | 700,939 | 100,841 | 4,437,665 | 1,488,308 | 283,487 | 25,739 | ||||||||||||||||||
Advisory Fees Waived/Recoupment | (146,642 | ) | (45,384 | ) | 15,251 | (129,383 | ) | (110,076 | ) | — | ||||||||||||||
Expense Reimbursement | (58,011 | ) | — | — | — | — | — | |||||||||||||||||
Net Expenses | 496,286 | 55,457 | 4,452,916 | 1,358,925 | 173,411 | 25,739 | ||||||||||||||||||
Net Investment Income (Loss) | (275,255 | ) | 128,764 | (4,444,600 | ) | 1,200,751 | (103,567 | ) | (5,492 | ) | ||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||||||
Investments | (1,911,082 | ) | (1,099,990 | ) | (6,817,156 | ) | (19,405,065 | ) | (1,443,529 | ) | (8,396 | ) | ||||||||||||
In-Kind Redemptions | 64,443 | — | — | 3,960,479 | 10,095 | (48,896 | ) | |||||||||||||||||
Swaps | 61,025 | — | — | — | — | — | ||||||||||||||||||
Short Sales | 1,321,906 | — | — | (12,734 | ) | — | — | |||||||||||||||||
Futures | (249,614 | ) | — | — | — | — | — | |||||||||||||||||
Distributions by other Investment Companies | — | — | — | 170,106 | — | — | ||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||
Investments | 520,641 | 96,758 | — | 81,278 | (44,620 | ) | 58,460 | |||||||||||||||||
Short Sales | 351,827 | — | 6,206,740 | — | — | — | ||||||||||||||||||
Swaps | 540,381 | — | — | — | — | — | ||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 699,527 | (1,003,232 | ) | (610,416 | ) | (15,205,936 | ) | (1,478,054 | ) | 1,168 | ||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS | $ | 424,272 | $ | (874,468 | ) | $ | (5,055,016 | ) | $ | (14,005,185 | ) | $ | (1,581,621 | ) | $ | (4,324 | ) |
(1) | Represents the period January 25, 2012 (commencement of operations) to June 30, 2012. |
(2) | Represents the period May 23, 2012 (commencement of operations) to June 30,2012. |
(3) | Represents the period January 11, 2012 (commencement of operations) to June 30, 2012. |
(4) | Represents the period October 5, 2011 (commencement of operations) to June 30, 2012. |
See accompanying Notes to Financial Statements.
88
ADVISORSHARES TRUST
Statements of Operations
Period Ended June 30, 2012
Madrona Domestic ETF | Madrona Global Bond ETF | Madrona International ETF | Meidell Tactical Advantage ETF | Peritus High Yield ETF | Rockledge SectorSAM ETF(3) | TrimTabs Float Shrink ETF(4) | WCM/BNY Mellon Focused Growth ADR ETF | |||||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||||||
Dividend Income | $ | 244,197 | $ | 595,287 | $ | 381,390 | $ | 46,106 | $ | – | $ | 13,352 | $ | 64,300 | $ | 125,849 | ||||||||||||||||
Interest Income | 76 | 145 | 1,885 | 11 | 6,715,467 | — | 2 | 45 | ||||||||||||||||||||||||
Foreign withholding tax | (68 | ) | — | (40,595 | ) | — | — | — | — | (17,037 | ) | |||||||||||||||||||||
Total Investment Income | 244,205 | 595,432 | 342,680 | 46,117 | 6,715,467 | 13,352 | 64,302 | 108,857 | ||||||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||||||
Advisory Fees | 118,078 | 78,989 | 100,238 | 53,257 | 739,093 | 60,000 | 48,942 | 119,999 | ||||||||||||||||||||||||
Dividend Expense | — | — | — | — | — | 11,327 | — | — | ||||||||||||||||||||||||
Professional Fees | 27,916 | 27,044 | 27,916 | 27,180 | 31,988 | 30,049 | 34,151 | 96,132 | ||||||||||||||||||||||||
Accounting & Administration Fees | 22,639 | 13,771 | 21,477 | 11,511 | 43,083 | 495 | 6,461 | 56,003 | ||||||||||||||||||||||||
Offering Fees | — | — | — | — | 24,805 | — | — | 6,532 | ||||||||||||||||||||||||
Exchange Listing Fees | 17,925 | 17,925 | 17,925 | 17,583 | 9,575 | 7,647 | 5,925 | 8,519 | ||||||||||||||||||||||||
Pricing Fees | 5,542 | 5,541 | 5,541 | 5,543 | 13,787 | 3,321 | 3,115 | 6,874 | ||||||||||||||||||||||||
Report to Shareholders | 5,195 | 5,126 | 4,924 | 6,567 | 16,685 | 8,750 | 8,994 | 3,450 | ||||||||||||||||||||||||
Custody Fees | 11,846 | 1,398 | 9,578 | 1,447 | 7,970 | 195 | 5,815 | 382 | ||||||||||||||||||||||||
Insurance Fees | 858 | 861 | 800 | 385 | 492 | — | — | 118 | ||||||||||||||||||||||||
Transfer Agent Fees | 1,124 | 1,200 | 953 | 263 | 5,351 | 89 | 386 | — | ||||||||||||||||||||||||
Trustee Fees | 1,525 | 1,525 | 1,525 | 1,547 | — | 776 | 981 | 650 | ||||||||||||||||||||||||
Interest on Securities Sold Short | — | — | — | — | — | 7,543 | — | — | ||||||||||||||||||||||||
Contribution to Global Echo Foundation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Licensing Fees | — | — | — | — | — | — | — | 6,268 | ||||||||||||||||||||||||
Miscellaneous Fees | 2,197 | 3,444 | 2,104 | — | 11,461 | 290 | 940 | 573 | ||||||||||||||||||||||||
Total Expenses | 214,845 | 156,824 | 192,981 | 125,283 | 904,290 | 130,482 | 115,710 | 305,500 | ||||||||||||||||||||||||
Advisory Fees Waived/Recoupment | (30,265 | ) | (5,992 | ) | (36,187 | ) | (53,257 | ) | 2,779 | (60,000 | ) | (66,768 | ) | (119,999 | ) | |||||||||||||||||
Expense Reimbursement | 90 | — | — | (26,316 | ) | — | (33,860 | ) | — | (94,033 | ) | |||||||||||||||||||||
Net Expenses | 184,670 | 150,832 | 156,794 | 45,710 | 907,069 | 36,622 | 48,942 | 91,468 | ||||||||||||||||||||||||
Net Investment Income (Loss) | 59,535 | 444,600 | 185,886 | 407 | 5,808,398 | (23,270 | ) | 15,360 | 17,389 | |||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||||||||||||||
Investments | (1,046,602 | ) | (7,866 | ) | (1,985,407 | ) | (354,783 | ) | 373,200 | 60,794 | 1,951,225 | (90,359 | ) | |||||||||||||||||||
In-Kind Redemptions | 286,578 | 45,128 | 28,655 | 205,220 | — | 53,402 | (985,266 | ) | 532,629 | |||||||||||||||||||||||
Swaps | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Short Sales | — | — | — | — | — | (103,861 | ) | — | — | |||||||||||||||||||||||
Futures | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Distributions by other Investment Companies | — | — | — | — | 33 | — | — | — | ||||||||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||||||
Investments | (88,849 | ) | 359,809 | (1,356,411 | ) | 8,535 | (2,589,171 | ) | 65,789 | 317,226 | (1,162,845 | ) | ||||||||||||||||||||
Short Sales | — | — | — | — | — | (65,924 | ) | — | — | |||||||||||||||||||||||
Swaps | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (848,873 | ) | 397,071 | (3,313,163 | ) | (141,028 | ) | (2,215,938 | ) | 10,200 | 1,283,185 | (720,575 | ) | |||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS | $ | (789,338 | ) | $ | 841,671 | $ | (3,127,277 | ) | $ | (140,621 | ) | $ | 3,592,460 | $ | (13,070 | ) | $ | 1,298,545 | $ | (703,186 | ) |
See accompanying Notes to Financial Statements.
89
ADVISORSHARES TRUST
Statements of Changes in Net Assets
Accuvest Global Long Short ETF(1) | Accuvest Global Opportunities ETF | Active Bear ETF | ||||||||||||||||||
Year ended June 30, 2012 | For the period July 9, 2010* to June 30, 2011 | For the period January 25, 2012* to June 30, 2012 | Year ended June 30, 2012 | For the period January 27, 2011* to June 30, 2011 | ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net Investment Income (Loss) | $ | (275,255 | ) | $ | (856,178 | ) | $ | 128,764 | $ | (4,444,600 | ) | $ | (509,195 | ) | ||||||
Net Realized Gain (Loss) on Investment Transactions | (713,322 | ) | (2,721,092 | ) | (1,099,990 | ) | (6,817,156 | ) | (3,765,080 | ) | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investment Transactions | 1,412,849 | (831,988 | ) | 96,758 | 6,206,740 | 383,841 | ||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 424,272 | (4,409,258 | ) | (874,468 | ) | (5,055,016 | ) | (3,890,434 | ) | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||
Net Investment Income | — | — | — | — | — | |||||||||||||||
Net Realized Gains | (46,188 | ) | — | — | — | — | ||||||||||||||
Total Distributions | (46,188 | ) | — | — | — | — | ||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||
Proceeds from Shares Issued | 18,018,647 | 53,672,974 | 14,316,721 | 363,431,857 | 64,290,026 | |||||||||||||||
Value of Shares Redeemed | (9,760,167 | ) | (39,878,316 | ) | — | (95,542,692 | ) | (10,010,258 | ) | |||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 8,258,480 | 13,794,658 | 14,316,721 | 267,889,165 | 54,279,768 | |||||||||||||||
Net Increase (Decrease) In Net Assets | 8,636,564 | 9,385,400 | 13,442,253 | 262,834,149 | 50,389,334 | |||||||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of Period | 9,385,400 | — | — | 50,389,334 | — | |||||||||||||||
End of Period | 18,021,964 | 9,385,400 | 13,442,253 | 313,223,483 | 50,389,334 | |||||||||||||||
Undistributed Net Investment Income (Loss) | (194,819 | ) | — | 128,764 | (2,880,389 | ) | — | |||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 450,000 | — | — | 2,225,000 | — | |||||||||||||||
Shares Sold | 850,000 | 2,150,000 | 550,000 | 15,025,000 | 2,650,000 | |||||||||||||||
Shares Redeemed | (450,000 | ) | (1,700,000 | ) | — | (3,825,000 | ) | (425,000 | ) | |||||||||||
End of Period | 850,000 | 450,000 | 550,000 | 13,425,000 | 2,225,000 |
* | Commencement of operations |
(1) | Formerly Mars Hill Global Relative Value ETF |
See accompanying Notes to Financial Statements.
90
ADVISORSHARES TRUST
Statements of Changes in Net Assets
Cambria Global Tactical ETF | Dent Tactical ETF | Global Echo ETF | Madrona Domestic ETF | |||||||||||||||||||||||||
Year ended June 30, 2012 | For the period October 26, 2010* to June 30, 2011 | Year ended June 30, 2012 | Year ended June 30, 2011 | For the period May 23, 2012* to June 30, 2012 | Year ended June 30, 2012 | For the period June 21, 2011* to June 30, 2011 | ||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net Investment Income (Loss) | $ | 1,200,751 | $ | 1,038,919 | $ | (103,567 | ) | $ | (224,436 | ) | $ | (5,492 | ) | $ | 59,535 | $ | 157 | |||||||||||
Net Realized Gain (Loss) on Investment Transactions | (15,287,214 | ) | (1,305,691 | ) | (1,433,434 | ) | 2,245,846 | (57,292 | ) | (760,024 | ) | — | ||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investment Transactions | 81,278 | 2,246,155 | (44,620 | ) | 164,517 | 58,460 | (88,849 | ) | 106,405 | |||||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | (14,005,185 | ) | 1,979,383 | (1,581,621 | ) | 2,185,927 | (4,324 | ) | (789,338 | ) | 106,562 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||||||
Net Investment Income | (1,214,084 | ) | (577,538 | ) | — | (32,743 | ) | — | (39,582 | ) | — | |||||||||||||||||
Net Realized Gains | — | — | — | — | — | — | — | |||||||||||||||||||||
Total Distributions | (1,214,084 | ) | (577,538 | ) | — | (32,743 | ) | — | (39,582 | ) | — | |||||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||||||
Proceeds from Shares Issued | 9,060,733 | 244,207,308 | 1,248,355 | 5,107,681 | 25,000,000 | 15,229,540 | 2,500,000 | |||||||||||||||||||||
Value of Shares Redeemed | (94,507,088 | ) | (66,772,581 | ) | (10,000,409 | ) | (12,068,621 | ) | (19,916,059 | ) | (1,818,962 | ) | — | |||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | (85,446,355 | ) | 177,434,727 | (8,752,054 | ) | (6,960,940 | ) | 5,083,941 | 13,410,578 | 2,500,000 | ||||||||||||||||||
Net Increase (Decrease) In Net Assets | (100,665,624 | ) | 178,836,572 | (10,333,675 | ) | (4,807,756 | ) | 5,079,617 | 12,581,658 | 2,606,562 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||
Beginning of Period | 178,836,572 | — | 17,012,526 | 21,820,282 | — | 2,606,562 | — | |||||||||||||||||||||
End of Period | 78,170,948 | 178,836,572 | 6,678,851 | 17,012,526 | 5,079,617 | 15,188,220 | 2,606,562 | |||||||||||||||||||||
Undistributed Net Investment Income (Loss) | 349,617 | 472,283 | (217,067 | ) | (210,640 | ) | — | 17,812 | 157 | |||||||||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 6,900,000 | — | 830,000 | 1,160,000 | — | 100,000 | — | |||||||||||||||||||||
Shares Sold | 350,000 | 9,450,000 | 65,000 | 260,000 | 500,000 | 575,000 | 100,000 | |||||||||||||||||||||
Shares Redeemed | (3,950,000 | ) | (2,550,000 | ) | (520,000 | ) | (590,000 | ) | (400,000 | ) | (75,000 | ) | — | |||||||||||||||
End of Period | 3,300,000 | 6,900,000 | 375,000 | 830,000 | 100,000 | 600,000 | 100,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
91
ADVISORSHARES TRUST
Statements of Changes in Net Assets
Madrona Global Bond ETF | Madrona International ETF | |||||||||||||||
Year ended June 30, 2012 | For the period June 21, 2011* to June 30, 2011 | Year ended June 30, 2012 | For the period June 21, 2011* to June 30, 2011 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net Investment Income (Loss) | $ | 444,600 | $ | 1,149 | $ | 185,886 | $ | 790 | ||||||||
Net Realized Gain (Loss) on Investment Transactions | 37,262 | — | (1,956,752 | ) | 12,669 | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investment Transactions | 359,809 | (122 | ) | (1,356,411 | ) | 103,628 | ||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 841,671 | 1,027 | (3,127,277 | ) | 117,087 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||
Net Investment Income | (441,742 | ) | — | (43,912 | ) | — | ||||||||||
Net Realized Gains | — | — | (13,200 | ) | — | |||||||||||
Total Distributions | (441,742 | ) | — | (57,112 | ) | — | ||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Issued | 19,573,154 | 2,500,000 | 16,407,072 | 2,500,000 | ||||||||||||
Value of Shares Redeemed | (1,279,141 | ) | — | (1,621,054 | ) | — | ||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 18,294,013 | 2,500,000 | 14,786,018 | 2,500,000 | ||||||||||||
Net Increase (Decrease) In Net Assets | 18,693,942 | 2,501,027 | 11,601,629 | 2,617,087 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of Period | 2,501,027 | — | 2,617,087 | — | ||||||||||||
End of Period | 21,194,969 | 2,501,027 | 14,218,716 | 2,617,087 | ||||||||||||
Undistributed Net Investment Income (Loss) | 5,036 | 1,149 | 143,255 | 790 | ||||||||||||
Changes in Shares Outstanding | ||||||||||||||||
Shares Outstanding, Beginning of Period | 100,000 | — | 100,000 | — | ||||||||||||
Shares Sold | 775,000 | 100,000 | 650,000 | 100,000 | ||||||||||||
Shares Redeemed | (50,000 | ) | — | (75,000 | ) | — | ||||||||||
End of Period | 825,000 | 100,000 | 675,000 | 100,000 |
* | Commencement of operations |
(1) | Formerly Mars Hill Global Relative Value ETF |
See accompanying Notes to Financial Statements.
92
ADVISORSHARES TRUST
Statements of Changes in Net Assets
Meidell Tactical Advantage ETF | Peritus High Yield ETF | Rockledge SectorSAM ETF | TrimTabs Float Shrink ETF | WCM/BNY MellonFocused Growth ADR ETF | ||||||||||||||||||||||||||||
Year ended June 30, 2012 | For the period June 23, 2011* to June 30, 2011 | Year ended June 30, 2012 | For the period December 1, 2010* to June 30, 2011 | For the period January 11, 2012* to June 30, 2012 | For the period October 5, 2011* to June 30, 2012 | Year ended June 30, 2012 | For the period July 21, 2010* to June 30, 2011 | |||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net Investment Income (Loss) | $ | 407 | $ | 546 | $ | 5,808,398 | $ | 1,097,603 | $ | (23,270 | ) | $ | 15,360 | $ | 17,389 | $ | 34,265 | |||||||||||||||
Net Realized Gain (Loss) on Investment Transactions | (149,563 | ) | (3,994 | ) | 373,233 | 597,832 | 10,335 | 965,959 | 442,270 | 191,372 | ||||||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investment Transactions | 8,535 | 9,403 | (2,589,171 | ) | (425,551 | ) | (135 | ) | 317,226 | (1,162,845 | ) | 972,380 | ||||||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | (140,621 | ) | 5,955 | 3,592,460 | 1,269,884 | (13,070 | ) | 1,298,545 | (703,186 | ) | 1,198,017 | |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||||||||||
Net Investment Income | (1,366 | ) | — | (5,707,019 | ) | (1,009,110 | ) | — | (2,501 | ) | (25,106 | ) | (24,332 | ) | ||||||||||||||||||
Net Realized Gains | — | — | (612,898 | ) | — | — | — | (27,533 | ) | — | ||||||||||||||||||||||
Total Distributions | (1,366 | ) | — | (6,319,917 | ) | (1,009,110 | ) | — | (2,501 | ) | (52,639 | ) | (24,332 | ) | ||||||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from Shares Issued | 7,926,365 | 2,500,000 | 58,595,073 | 46,184,231 | 5,057,608 | 37,243,628 | 4,339,699 | 9,578,612 | ||||||||||||||||||||||||
Value of Shares Redeemed | (4,637,924 | ) | — | (7,389,685 | ) | (2,594,447 | ) | (2,522,528 | ) | (30,248,798 | ) | (5,772,068 | ) | (2,101,694 | ) | |||||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 3,288,441 | 2,500,000 | 51,205,388 | 43,589,784 | 2,535,080 | 6,994,830 | (1,432,369 | ) | 7,476,918 | |||||||||||||||||||||||
Net Increase (Decrease) In Net Assets | 3,146,454 | 2,505,955 | 48,477,931 | 43,850,558 | 2,522,010 | 8,290,874 | (2,188,194 | ) | 8,650,603 | |||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||
Beginning of Period | 2,505,955 | — | 43,850,558 | — | — | — | 8,650,603 | — | ||||||||||||||||||||||||
End of Period | 5,652,409 | 2,505,955 | 92,328,489 | 43,850,558 | 2,522,010 | 8,290,874 | 6,462,409 | 8,650,603 | ||||||||||||||||||||||||
Undistributed Net Investment Income(Loss) | 407 | 1,366 | 221,026 | 94,853 | (13,425 | ) | 12,490 | 12,232 | 14,402 | |||||||||||||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 100,000 | — | 850,000 | — | — | — | 275,000 | — | ||||||||||||||||||||||||
Shares Sold | 300,000 | 100,000 | 1,200,000 | 900,000 | 200,000 | 1,200,000 | 150,000 | 350,000 | ||||||||||||||||||||||||
Shares Redeemed | (175,000 | ) | — | (150,000 | ) | (50,000 | ) | (100,000 | ) | (950,000 | ) | (200,000 | ) | (75,000 | ) | |||||||||||||||||
End of Period | 225,000 | 100,000 | 1,900,000 | 850,000 | 100,000 | 250,000 | 225,000 | 275,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
93
ADVISORSHARES TRUST
Statements of Cash Flows
Accuvest Global Long Short ETF | Active Bear ETF | Rockledge SectorSAM ETF | ||||||||||
For the year ended June 30, 2012 | For the period January 11, 2012* to June 30, 2012 | |||||||||||
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES: | ||||||||||||
Dividends received | $ | 215,761 | $ | — | $ | 13,352 | ||||||
Interest received | — | 7,200 | — | |||||||||
Operating expenses paid | (46,025 | ) | (2,067,786 | ) | (19,134 | ) | ||||||
Net purchases of short-term investments | (6,620 | ) | (159,376,580 | ) | — | |||||||
Realized gain on swap contracts | 61,025 | — | — | |||||||||
Realized loss on futures contracts | (249,614 | ) | — | — | ||||||||
Purchases of long-term investments | (51,553,500 | ) | — | (13,239,031 | ) | |||||||
Proceeds from disposition of long-term investments | 42,208,840 | — | 10,802,370 | |||||||||
Increase in receivables for securities sold | (1,394,636 | ) | (24,542,678 | ) | — | |||||||
Increase in payables for securities purchased | — | 37,890,877 | — | |||||||||
Net increase in short sales | 5,069,374 | 256,603,317 | 2,472,441 | |||||||||
Dividends paid | (311,902 | ) | (839,819 | ) | (10,923 | ) | ||||||
Interest paid | (84,516 | ) | (876,419 | ) | (7,543 | ) | ||||||
Net Cash Provided (Used) By Operating Activities | (6,091,813 | ) | 106,798,112 | 11,532 | ||||||||
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES: | ||||||||||||
Proceeds from sale of shares | 8,137,193 | 266,522,492 | 2,535,080 | |||||||||
Distributions from realized gains | (46,188 | ) | — | — | ||||||||
Deposits with brokers for swap contracts and short sales | (2,089,858 | ) | (328,006,992 | ) | (2,466,533 | ) | ||||||
Net Cash Flows Provided By Financing Activities | 6,001,147 | (61,484,500 | ) | 68,547 | ||||||||
NET INCREASE IN CASH | (90,666 | ) | 45,313,612 | 80,079 | ||||||||
Cash, Beginning of period | 155,882 | 21,244,146 | — | |||||||||
Cash, End of period | $ | 65,216 | $ | 66,557,758 | $ | 80,079 | ||||||
RECONCILIATION OF INCREASE IN NET ASSETS FROM OPERATIONS TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES: | ||||||||||||
Decrease in Net Assets From Operations | $ | 424,272 | $ | (5,055,016 | ) | $ | (13,070 | ) | ||||
Increase/ Decrease in investments, at value | (5,170,022 | ) | 97,837,153 | 25,580 | ||||||||
Increase in payable for securities purchased | — | 37,890,877 | — | |||||||||
Increase in receivable for securities sold | (1,394,636 | ) | (24,542,678 | ) | — | |||||||
Increase in interest receivable | — | (1,116 | ) | — | ||||||||
Increase in dividends receivable | (5,270 | ) | — | — | ||||||||
Increase/ Decrease in prepaid expense | 74,709 | 25,959 | (14,386 | ) | ||||||||
Increase in interest payable | 57,329 | 92,973 | 404 | |||||||||
Increase/ Decrease in dividends payable | (86,412 | ) | 183,904 | — | ||||||||
Increase in accrued expenses | 8,217 | 366,056 | 13,004 | |||||||||
Total Adjustments | (6,516,085 | ) | 111,853,128 | 24,602 | ||||||||
Net Cash Flows Provided (Used) By Operating Activities | $ | (6,091,813 | ) | $ | 106,798,112 | $ | 11,532 |
* | Commencement of operations |
See accompanying Notes to Financial Statements.
94
ADVISORSHARES TRUST
Financial Highlights
Accuvest Global Long Short ETF(1) | Accuvest Global Opportunities ETF | Active Bear ETF | ||||||||||||||||||
Year ended June 30, 2012 | For the period July 9, 2010* to June 30, 2011 | For the period January 25, 2012* to June 30, 2012 | Year ended June 30, 2012 | For the period January 27, 2011* to June 30, 2011 | ||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 20.86 | $ | 25.00 | $ | 25.00 | $ | 22.65 | $ | 25.00 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (Loss)(2) | (0.68 | ) | (0.67 | ) | 0.31 | (0.72 | ) | (0.30 | ) | |||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 1.33 | (3.47 | ) | (0.87 | ) | 1.40 | (2.05 | ) | ||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | — | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 0.65 | (4.14 | ) | (0.56 | ) | 0.68 | (2.35 | ) | ||||||||||||
Distributions from Net Investment Income | (0.31 | ) | — | — | — | — | ||||||||||||||
Distributions from Realized Capital Gains | — | — | — | — | — | |||||||||||||||
Total Distributions | (0.31 | ) | — | — | — | — | ||||||||||||||
Net Asset Value, End of Period | $ | 21.20 | $ | 20.86 | $ | 24.44 | $ | 23.33 | $ | 22.65 | ||||||||||
Market Value, End of Period | $ | 21.22 | $ | 20.86 | $ | 24.45 | $ | 23.34 | $ | 22.65 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 3.15 | % | (16.56 | )% | (2.24 | )% | 3.00 | % | (9.40 | )% | ||||||||||
Total Investment Return Based on Market(4) | 3.24 | % | (16.56 | )% | (2.20 | )% | 3.05 | % | (9.40 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 18,022 | $ | 9,385 | $ | 13,442 | $ | 313,223 | $ | 50,389 | ||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.50 | % | 1.50 | % | 1.25 | % | 1.69 | % | 1.79 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 8.15 | % | 3.33 | % | 2.27 | % | 3.06 | % | 3.16 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 3.88 | % | 1.73 | % | 2.27 | % | 1.68 | % | 1.88 | % | ||||||||||
Net investment Income (Loss)(5) | (3.20 | )% | (2.82 | )% | 2.90 | % | (3.06 | )% | (3.07 | )% | ||||||||||
Portfolio Turnover Rate(6) | 365 | % | 751 | % | 135 | % | 756 | % | 635 | % |
* | Commencement of operations. |
(1) | Formerly Mars Hill Global Relative Value ETF. |
(2) | Based on average shares outstanding. |
(3) | Less than $0.005. |
(4) | Net asset value total 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. Periods less than one year are not annualized. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, revinvestment of all dividends and distributions at market value during the period, and sale at the market value on the last day of the period. |
(5) | Ratios for periods of less than one year have been annualized. |
(6) | 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. |
See accompanying Notes to Financial Statements.
96
ADVISORSHARES TRUST
Financial Highlights
Cambria Global Tactical ETF | Dent Tactical ETF | Global Echo ETF | Madrona Domestic ETF | |||||||||||||||||||||||||||||
Year ended June 30, 2012 | For the period October 26, 2010* to June 30, 2011 | Year ended June 30, 2012 | Year ended June 30, 2011 | For the period September 16, 2009* to June 30, 2010 | For the period May 23, 2012* to June 30, 2012 | Year ended June 30, 2012 | 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 | $ | 25.92 | $ | 25.10 | $ | 20.50 | $ | 18.81 | $ | 20.00 | $ | 50.00 | $ | 26.07 | $ | 25.00 | ||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | 0.21 | 0.25 | (0.17 | ) | (0.21 | ) | 0.08 | (0.02 | ) | 0.10 | — | (3) | ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (2.24 | ) | 0.79 | (2.52 | ) | 1.93 | (1.06 | ) | 0.82 | (0.79 | ) | 1.07 | ||||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | (2.03 | ) | 1.04 | (2.69 | ) | 1.72 | (0.98 | ) | 0.80 | (0.69 | ) | 1.07 | ||||||||||||||||||||
Distributions from Net Investment Income | — | (0.22 | ) | — | (0.03 | ) | (0.21 | ) | — | (0.07 | ) | — | ||||||||||||||||||||
Distributions from Realized Capital Gains | (0.20 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total Distributions | (0.20 | ) | (0.22 | ) | — | (0.03 | ) | (0.21 | ) | — | (0.07 | ) | — | |||||||||||||||||||
Net Asset Value, End of Period | $ | 23.69 | $ | 25.92 | $ | 17.81 | $ | 20.50 | $ | 18.81 | $ | 50.80 | $ | 25.31 | $ | 26.07 | ||||||||||||||||
Market Value, End of Period | $ | 23.64 | $ | 25.93 | $ | 17.78 | $ | 20.48 | $ | 18.80 | $ | 50.99 | $ | 25.28 | $ | 26.07 | ||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | (7.84 | )% | 4.17 | % | (13.12 | )% | 9.14 | % | (4.95 | )% | 1.60 | % | (2.65 | )% | 4.28 | % | ||||||||||||||||
Total Investment Return Based on Market(4) | (8.07 | )% | 4.20 | % | (13.18 | )% | 9.10 | % | (4.92 | )% | 1.98 | % | (2.76 | )% | 4.28 | % | ||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 78,171 | $ | 178,837 | $ | 6,679 | $ | 17,013 | $ | 21,820 | $ | 5,080 | $ | 15,188 | $ | 2,607 | ||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 0.99 | % | 1.02 | % | 1.50 | % | 1.49 | % | 1.50 | % | 1.50 | % | 1.25 | % | 1.25 | % | ||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.08 | % | 1.04 | % | 2.45 | % | 2.26 | % | 2.45 | % | 1.50 | % | 1.46 | % | 10.96 | % | ||||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.08 | % | 1.04 | % | 2.45 | % | 2.26 | % | 2.45 | % | 1.50 | % | 1.46 | % | 10.96 | % | ||||||||||||||||
Net investment Income (Loss)(5) | 0.87 | % | 1.45 | % | (0.90 | )% | (1.05 | )% | 0.51 | % | (0.32 | )% | 0.40 | % | 0.23 | % | ||||||||||||||||
Portfolio Turnover Rate(6) | 475 | % | 187 | % | 958 | % | 456 | % | 501 | % | 70 | % | 40 | % | 0 | % |
See accompanying Notes to Financial Statements.
97
ADVISORSHARES TRUST
Financial Highlights
Madrona Global Bond ETF | Madrona International ETF | |||||||||||||||
Year ended June 30, 2012 | For the period June 21, 2011* to June 30, 2011 | Year ended June 30, 2012 | 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 | $ | 25.01 | $ | 25.00 | $ | 26.17 | $ | 25.00 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (Loss)(2) | 0.71 | 0.01 | 0.32 | 0.01 | ||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 0.67 | — | (5.33 | ) | 1.16 | |||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 1.38 | 0.01 | (5.01 | ) | 1.17 | |||||||||||
Distributions from Net Investment Income | (0.70 | ) | — | (0.08 | ) | — | ||||||||||
Distributions from Realized Capital Gains | — | — | (0.02 | ) | — | |||||||||||
Total Distributions | (0.70 | ) | — | (0.10 | ) | — | ||||||||||
Net Asset Value, End of Period | $ | 25.69 | $ | 25.01 | $ | 21.06 | $ | 26.17 | ||||||||
Market Value, End of Period | $ | 25.68 | $ | 25.02 | $ | 21.11 | $ | 26.18 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 5.59 | % | 0.04 | % | (19.11 | )% | 4.68 | % | ||||||||
Total Investment Return Based on Market(4) | 5.49 | % | 0.08 | % | (18.95 | )% | 4.72 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 21,195 | $ | 2,501 | $ | 14,219 | $ | 2,617 | ||||||||
Ratio to Average Net Assets of: | ||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 0.95 | % | 0.95 | % | 1.25 | % | 1.25 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 0.99 | % | 11.08 | % | 1.54 | % | 10.99 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 0.99 | % | 11.08 | % | 1.54 | % | 10.99 | % | ||||||||
Net investment Income (Loss)(5) | 2.81 | % | 1.68 | % | 1.48 | % | 1.14 | % | ||||||||
Portfolio Turnover Rate(6) | 12 | % | 0 | % | 110 | % | 19 | % |
See accompanying Notes to Financial Statements.
98
ADVISORSHARES TRUST
Financial Highlights
Meidell Tactical Advantage ETF | Peritus High Yield ETF | Rockledge SectorSAM ETF | TrimTabs Float Shrink ETF | WCM/BNY Mellon Focused Growth ADR ETF | ||||||||||||||||||||||||||||
Year ended June 30, 2012 | For the period June 23, 2011* to June 30, 2011 | Year ended June 30, 2012 | For the period December 1, 2010* to June 30, 2011 | For the period January 11, 2012* to June 30, 2012 | For the period October 5, 2011* to June 30, 2012 | Year ended June 30, 2012 | For the period July 21, 2010* to June 30, 2011 | |||||||||||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 25.06 | $ | 25.00 | $ | 51.59 | $ | 50.00 | $ | 25.54 | $ | 26.20 | $ | 31.46 | $ | 25.00 | ||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | — | (3) | 0.01 | 4.20 | 2.25 | (0.24 | ) | 0.07 | 0.07 | 0.15 | ||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 0.08 | 0.05 | (2.74 | ) | 1.30 | (0.08 | ) | 6.90 | (2.58 | ) | 6.40 | |||||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | (3) | — | — | — | — | — | |||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 0.08 | 0.06 | 1.46 | 3.55 | (0.32 | ) | 6.97 | (2.51 | ) | 6.55 | ||||||||||||||||||||||
Distributions from Net Investment Income | (0.02 | ) | — | (3.99 | ) | (1.96 | ) | — | (0.01 | ) | (0.11 | ) | (0.09 | ) | ||||||||||||||||||
Distributions from Realized Capital Gains | — | — | (0.47 | ) | — | — | — | (0.12 | ) | — | ||||||||||||||||||||||
Total Distributions | (0.02 | ) | — | (4.46 | ) | (1.96 | ) | — | (0.01 | ) | (0.23 | ) | (0.09 | ) | ||||||||||||||||||
Net Asset Value, End of Period | $ | 25.12 | $ | 25.06 | $ | 48.59 | $ | 51.59 | $ | 25.22 | $ | 33.16 | $ | 28.72 | $ | 31.46 | ||||||||||||||||
Market Value, End of Period | $ | 25.48 | $ | 25.07 | $ | 48.64 | $ | 51.87 | $ | 25.23 | $ | 33.24 | $ | 28.70 | $ | 31.58 | ||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 0.31 | % | 0.24 | % | 3.27 | % | 7.16 | % | (1.25 | )% | 26.62 | % | (7.94 | )% | 26.21 | % | ||||||||||||||||
Total Investment Return Based on Market(4) | 1.71 | % | 0.28 | % | 2.75 | % | 7.73 | % | (1.21 | )% | 26.93 | % | (8.36 | )% | 26.69 | % | ||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 5,652 | $ | 2,506 | $ | 92,328 | $ | 43,851 | $ | 2,522 | $ | 8,291 | $ | 6,462 | $ | 8,651 | ||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.35 | % | 1.35 | % | 1.35 | % | 1.34 | % | 1.50 | % | 0.99 | % | 1.25 | % | 1.25 | % | ||||||||||||||||
Expenses, prior to expense waivers and reimbursement, including interest and dividend expense | 3.69 | % | 13.70 | % | 1.35 | % | 1.57 | % | 11.03 | % | 2.34 | % | 4.17 | % | 3.04 | % | ||||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 3.69 | % | 13.70 | % | 1.35 | % | 1.57 | % | 9.43 | % | 2.34 | % | 4.17 | % | 3.04 | % | ||||||||||||||||
Net investment Income (Loss)(5) | 0.01 | % | 1.00 | % | 8.64 | % | 7.47 | % | (1.97 | )% | 0.31 | % | 0.24 | % | 0.52 | % | ||||||||||||||||
Portfolio Turnover Rate(6) | 817 | % | 5 | % | 80 | % | 81 | % | 391 | % | 201 | % | 16 | % | 34 | % |
See accompanying Notes to Financial Statements.
99
ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2012
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 14 active funds (the “Funds” or “ETFs” and individually, the “Fund” or “ETF”):
Fund | Ticker | Commencement of Operations | ||||||
Accuvest Global Long Short ETF (formerly Mars Hill Global Relative Value ETF) | AGLS | July 9, 2010 | ||||||
Accuvest Global Opportunities ETF | ACCU | January 25, 2012 | ||||||
Active Bear ETF | HDGE | January 27, 2011 | ||||||
Cambria Global Tactical ETF | GTAA | October 26, 2010 | ||||||
DENT Tactical ETF | DENT | September 16, 2009 | ||||||
Global Echo ETF | GIVE | May 23, 2012 | ||||||
Madrona Domestic ETF | FWDD | June 21, 2011 | ||||||
Madrona Global Bond ETF | FWDB | June 21, 2011 | ||||||
Madrona International ETF | FWDI | June 21, 2011 | ||||||
Meidell Tactical Advantage ETF | MATH | June 23, 2011 | ||||||
Peritus High Yield ETF | HYLD | December 1, 2010 | ||||||
Rockledge SectorSAM ETF | SSAM | January 11, 2012 | ||||||
TrimTabs Float Shrink ETF | TTFS | October 5, 2011 | ||||||
WCM/BNY Mellon Focused Growth ADR ETF | AADR | July 21, 2010 |
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.
As of June 4, 2012, American Wealth Management replaced H.S. Dent Investment Management, LLC as sub-advisor to DENT Tactical ETF.
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.
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
100
ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2012
1. Organization - (continued)
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.
Rockledge SectorSAM ETF seeks to generate stable and consistent annual returns under all market conditions by investing primarily in both long and short positions in Underlying ETFs that offer diversified exposure to U.S. large capitalization sectors.
Accuvest Global Opportunities ETF seeks long-term capital appreciation in excess of global equity benchmarks such as the MSCI All Country World Index by investing primarily in Underlying ETFs that provide diversified exposure to select economies around the world.
101
ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2012
1. Organization - (continued)
Global Echo ETF seeks long-term capital appreciation with an emphasis on absolute (positive) returns and low sensitivity to traditional financial market indices, such as the S&P 500 Index, over a full market cycle. The Fund is a multi-manager, multi-strategy, broadly diversified, actively managed ETF with a focus on sustainable investing.
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 interest income and expenses are recognized on the accrual basis.Premiums and discounts are amortized over the life of the bond using the effective interest method.
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
102
ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2012
2. Summary of Significant Accounting Policies - (continued)
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.
Short Sales
The Accuvest Global Long Short ETF, the Cambria Global Tactical ETF, the Active Bear ETF and the Rockledge SectorSAM 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, Active Bear ETF and Rockledge SectorSAM ETF for the period ended June 30, 2012 are $141,845, $969,392 and $7,543, respectively, which are included as interest expense 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.
Futures Contracts
Certain of the Funds 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. Such 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
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June 30, 2012
2. Summary of Significant Accounting Policies - (continued)
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
Certain of 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.
Money Market Investments
The Dent Tactical ETF invests a significant amount (28.2% as of June 30, 2012) 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.
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June 30, 2012
2. Summary of Significant Accounting Policies - (continued)
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.
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% | |||
Rockledge SectorSAM ETF | 1.25%* | |||
Accuvest Global Opportunities ETF | 0.95% | |||
Global Echo ETF | 1.10% |
* | 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. |
For the Global Echo Fund, as part of its agreement with the Trust, the Advisor has contractually agreed to pay all operating expenses of the Fund, including transfer agency, custody, fund administration, legal, audit and other services, except management fees, interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with the
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June 30, 2012
3. Investment Advisory Agreement and Other Agreements - (continued)
execution of portfolio transactions, acquired fund fees and expenses, short dividend expenses, expenses of Independent Trustees (including any Trustees’ counsel fees), and extraordinary expenses.
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.
American Wealth Management 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 | % |
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.
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Notes to Financial Statements
June 30, 2012
3. Investment Advisory Agreement and Other Agreements - (continued)
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.
Rockledge Advisors LLC serves as investment sub-advisor to Rockledge SectorSAM ETF. They receive a sub-advisory fee at an annual fee of 0.75% based on the average daily net assets.
Accuvest Global Advisors LLC serves as investment sub-advisor to Accuvest Global Opportunities ETF. They receive a sub-advisory fee at an annual fee of 0.50% based on the average daily net assets.
Baldwin Brothers, Inc., Community Capital Management, Inc., First Affirmative Financial Network, LLC and Reynders, McVeigh Capital Management, LLC serve as investment sub-advisors to Global Echo ETF. They receive a sub-advisory fee at an annual fee of 0.25% based on the average daily net assets.
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 June 30, 2012 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 | % | ||
Rockledge SectorSAM ETF | 1.50 | % | ||
Accuvest Global Opportunities ETF | 1.25 | % | ||
Global Echo ETF | — |
For the period ended June 30, 2012, the Advisor waived fees and reimbursed expenses for each Fund as follows. Each Fund may recoup such waivers until the date indicated.
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June 30, 2012
3. Investment Advisory Agreement and Other Agreements - (continued)
Fund: | Expenses Reimbursed: | Recoupment Amount: | Recoupment Expiration: | |||||||||
Accuvest Global Long Short ETF | $ | 66,702 | $ | 66,702 | 6/30/2014 | |||||||
204,653 | 204,653 | 6/30/2015 | ||||||||||
Total Accuvest Global Long Short ETF | 271,355 | 271,355 | ||||||||||
Accuvest Global Opportunities ETF | 45,384 | 45,384 | 6/30/2015 | |||||||||
Total Accuvest Global Opportunities ETF | 45,384 | 45,384 | ||||||||||
Active Bear ETF | 15,251 | — | 6/30/2014 | |||||||||
Total Active Bear ETF | 15,251 | — | ||||||||||
Cambria Global Tactical ETF | 9,250 | 8,884 | 6/30/2014 | |||||||||
129,383 | 129,383 | 6/30/2015 | ||||||||||
Total Cambria Global Tactical ETF | 138,633 | 138,267 | ||||||||||
Dent Tactical ETF | 176,554 | 176,554 | 6/30/2013 | |||||||||
164,643 | 164,643 | 6/30/2014 | ||||||||||
110,076 | 110,076 | 6/30/2015 | ||||||||||
Total Dent Tactical ETF | 451,273 | 451,273 | ||||||||||
Madrona Domestic ETF | 6,733 | 6,733 | 6/30/2014 | |||||||||
30,175 | 30,175 | 6/30/2015 | ||||||||||
Total Madrona Domestic ETF | 36,908 | 36,908 | ||||||||||
Madrona Global Bond ETF | 6,948 | 6,948 | 6/30/2014 | |||||||||
5,992 | 5,992 | 6/30/2015 | ||||||||||
Total Madrona Global Bond ETF | 12,940 | 12,940 | ||||||||||
Madrona International ETF | 6,735 | 6,735 | 6/30/2014 | |||||||||
36,187 | 36,187 | 6/30/2015 | ||||||||||
Total Madrona International ETF | 42,922 | 42,922 | ||||||||||
Meidell Tactical Advantage ETF | 6,772 | 6,772 | 6/30/2014 | |||||||||
79,573 | 79,573 | 6/30/2015 | ||||||||||
Total Meidell Tactical Advantage ETF | 86,345 | 86,345 | ||||||||||
Peritus High Yield ETF | 33,512 | 30,732 | 6/30/2014 | |||||||||
Total Peritus High Yield ETF | 33,512 | 30,732 | ||||||||||
Rockledge SectorSAM ETF | 93,860 | 93,860 | 6/30/2015 | |||||||||
Total Rockledge SectorSAM ETF | 93,860 | 93,860 | ||||||||||
Trimtabs Float Shrink ETF | 66,768 | 66,768 | 6/30/2015 | |||||||||
Total Trimtabs Float Shrink ETF | 66,768 | 66,768 | ||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 118,635 | 118,635 | 6/30/2014 | |||||||||
214,032 | 214,032 | 6/30/2015 | ||||||||||
Total WCM/BNY Mellon Focused Growth ADR ETF | 332,667 | 332,667 |
As part of its agreement with the Trust, the Advisor has contractually agreed to pay all operating expenses of the Global Echo Fund. There are no expenses reimbursed or recouped for that Fund.
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June 30, 2012
3. Investment Advisory Agreement and Other Agreements - (continued)
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.
4. 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.
5. 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 — | unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access. |
Level 2 — | Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data. |
Level 3 — | Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. |
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June 30, 2012
5. 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 June 30, 2012 in valuing the Funds’ assets carried at fair value:
Assets | Accuvest Global Long Short ETF | Accuvest Global Opportunities | Active Bear ETF | Cambria Global Tactical ETF | Dent Tactical ETF | Global Echo ETF | Madrona Domestic ETF | |||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||
Exchange Traded Funds | $ | 17,571,522 | $ | 13,182,258 | $ | — | $ | 70,005,834 | $ | 1,979,105 | $ | 494,409 | $ | — | ||||||||||||||
Common Stocks | — | — | — | — | — | 2,313,736 | 15,095,801 | |||||||||||||||||||||
Money Market Fund | 6,620 | 279,261 | 183,818,915 | 8,250,175 | 1,882,099 | 1,339,259 | 98,432 | |||||||||||||||||||||
Level 2 | ||||||||||||||||||||||||||||
Corporate Bonds | — | — | — | — | — | — | — | |||||||||||||||||||||
Foreign Bonds | — | — | — | — | — | — | — | |||||||||||||||||||||
Municipal Bonds | — | — | — | — | — | 261,734 | — | |||||||||||||||||||||
Government Bonds | — | — | — | — | — | 793,495 | — | |||||||||||||||||||||
Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||
Exchange Traded Funds | (10,713,565 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Common Stocks | — | (301,334,083 | ) | — | — | — | — | |||||||||||||||||||||
Level 2 | — | — | — | — | — | — | — | |||||||||||||||||||||
Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 6,864,577 | $ | 13,461,519 | $ | (117,515,168 | ) | $ | 78,256,009 | $ | 3,861,204 | $ | 5,202,633 | $ | 15,194,233 |
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June 30, 2012
5. Summary of Fair Value Disclosure - (continued)
Assets | Madrona Global Bond ETF | Madrona International ETF | Meidell Tactical Advantage ETF | Peritus High Yield ETF | Rockledge SectorSAM | TrimTabs Float Shrink ETF | WCM/BNY Mellon Focused Growth ADR ETF | |||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||
Exchange Traded Funds | $ | 20,958,788 | $ | — | $ | 2,792,634 | $ | — | $ | 2,616,646 | $ | — | $ | — | ||||||||||||||
Common Stocks | — | 13,828,655 | — | — | — | 8,263,232 | 5,953,710 | |||||||||||||||||||||
Money Market Fund | 304,252 | 349,329 | 188,312 | 792,229 | — | — | 521,354 | |||||||||||||||||||||
Level 2 | ||||||||||||||||||||||||||||
Corporate Bonds | — | — | — | 79,339,226 | — | — | — | |||||||||||||||||||||
Foreign Bonds | — | — | — | 10,123,463 | — | — | — | |||||||||||||||||||||
Municipal Bonds | — | — | — | — | — | — | — | |||||||||||||||||||||
Government Bonds | — | — | — | — | — | — | — | |||||||||||||||||||||
Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||
Exchange Traded Funds | — | — | — | — | (2,642,226 | ) | ||||||||||||||||||||||
Common Stocks | — | — | — | — | — | — | — | |||||||||||||||||||||
Level 2 | — | — | — | — | — | — | — | |||||||||||||||||||||
Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 21,263,040 | $ | 14,177,984 | $ | 2,980,946 | $ | 90,254,918 | $ | (25,580 | ) | $ | 8,263,232 | $ | 6,475,064 |
The Funds did not hold any Level 3 securities during the period reported.
The Funds’ policy is to disclose transfers between Levels based on valuations at the beginning of the reporting period. At June 30, 2012, there were no transfers between Level 1, 2, or 3, based on the valuation input Levels assigned to securities on June 30, 2011.
6. 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.
At June 30, 2012, there were no open derivative instruments.
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June 30, 2012
6. VALUATION OF DERIVATIVE INSTRUMENTS - (continued)
Transactions in derivative instruments during the period ended June 30, 2012, were as follows:
Statement of Operations
Fund: | Realized Gain (Loss): | Equity Risk | ||||||
Accuvest Global Long Short ETF | Futures Contracts | $ | (249,614 | ) | ||||
Accuvest Global Long Short ETF | Swaps Contracts | 61,025 | ||||||
$ | (188,589 | ) |
Unrealized Loss: | ||||||||
Accuvest Global Long Short ETF | Swaps Contracts | $ | 540,381 |
7. 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.
Management of the Funds is required to analyze all open tax years (2010 – 2012), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of June 30, 2012, 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.
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Notes to Financial Statements
June 30, 2012
7. Federal Income Tax - (continued)
At June 30, 2012, 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) | ||||||||||||
Accuvest Global Long Short ETF | $ | 6,496,292 | $ | 945,915 | $ | (577,630 | ) | $ | 368,285 | |||||||
Accuvest Global Opportunities ETF | 13,436,007 | 312,998 | (287,486 | ) | 25,512 | |||||||||||
Active Bear ETF | (116,854,148 | ) | 16,108,568 | (16,769,588 | ) | (661,020 | ) | |||||||||
Cambria Global Tactical ETF | 76,871,624 | 1,672,766 | (288,381 | ) | 1,384,385 | |||||||||||
Dent Tactical ETF | 3,837,560 | 23,972 | (328 | ) | 23,644 | |||||||||||
Global Echo ETF | 5,173,883 | 98,936 | (70,186 | ) | 28,750 | |||||||||||
Madrona Domestic ETF | 15,213,288 | 1,298,830 | (1,317,885 | ) | (19,055 | ) | ||||||||||
Madrona Global Bond ETF | 20,913,985 | 562,388 | (213,333 | ) | 349,055 | |||||||||||
Madrona International ETF | 15,465,487 | 427,622 | (1,715,125 | ) | (1,287,503 | ) | ||||||||||
Meidell Tactical Advantage ETF | 3,010,795 | 622 | (30,471 | ) | (29,849 | ) | ||||||||||
Peritus High Yield ETF | 93,279,595 | 1,132,007 | (4,156,684 | ) | (3,024,677 | ) | ||||||||||
Rocklege SectorSAM ETF | 46,433 | 43,506 | (115,519 | ) | (72,013 | ) | ||||||||||
Trim Tabs Float Shrink ETF | 7,995,611 | 321,429 | (53,808 | ) | 267,621 | |||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 6,664,056 | 475,215 | (664,207 | ) | (188,992 | ) |
At June 30, 2012, the components of distributable earnings/loss on a tax-basis were as follows:
Fund | Undistributed Net Investment Income | Accumulated Capital and Other Gains/(Losses) | Timing Difference | Net Unrealized Appreciation (Deprection) | Total Earnings (Losses) | |||||||||||||||
Accuvest Global Long Short ETF | $ | — | $ | (5,001,627 | ) | $ | (194,819 | ) | $ | 368,285 | $ | (4,828,161 | ) | |||||||
Accuvest Global Opportunities ETF | 128,764 | (1,028,744 | ) | — | 25,512 | (874,468 | ) | |||||||||||||
Active Bear ETF | — | (4,862,699 | ) | (2,880,389 | ) | (661,020 | ) | (8,404,108 | ) | |||||||||||
Cambria Global Tactical ETF | 349,617 | (19,987,508 | ) | — | 1,384,385 | (18,253,506 | ) | |||||||||||||
Dent Tactical ETF | — | (1,572,126 | ) | (22,494 | ) | 23,644 | (1,570,976 | ) | ||||||||||||
Global Echo ETF | 23,426 | — | — | 28,750 | 52,176 | |||||||||||||||
Madrona Domestic ETF | 17,812 | (1,001,733 | ) | — | (19,055 | ) | (1,002,976 | ) | ||||||||||||
Madrona Global Bond ETF | 5,036 | 3,109 | — | 349,055 | 357,200 | |||||||||||||||
Madrona International ETF | 143,764 | (1,922,469 | ) | — | (1,287,503 | ) | (3,066,208 | ) | ||||||||||||
Meidell Tactical Advantage ETF | 407 | (310,583 | ) | — | (29,849 | ) | (340,025 | ) | ||||||||||||
Peritus High Yield ETF | 221,026 | (35,700 | ) | — | (3,024,677 | ) | (2,839,351 | ) | ||||||||||||
Rocklege SectorSAM ETF | 18,966 | — | (13,425 | ) | (72,013 | ) | (66,472 | ) | ||||||||||||
Trim Tabs Float Shrink ETF | 52,498 | — | — | 267,621 | 320,119 | |||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 12,232 | (162,335 | ) | — | (188,992 | ) | (339,095 | ) |
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.
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ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2012
7. Federal Income Tax - (continued)
At June 30, 2012, the effect of permanent book/tax reclassifications resulted in increases/(decreases) to the components of net assets as follows:
Fund | Undistributed Net Investment Income | Accumulated Net Realized Gains/(Losses) | Paid-In Capital | |||||||||
Accuvest Global Long Short ETF | $ | 80,436 | $ | 125,479 | $ | (205,915 | ) | |||||
Accuvest Global Opportunities ETF | — | — | — | |||||||||
Active Bear ETF | 1,564,211 | (1,532,064 | ) | (32,147 | ) | |||||||
Cambria Global Tactical ETF | (109,333 | ) | (1,689,118 | ) | 1,798,451 | |||||||
Dent Tactical ETF | 97,140 | 10,742 | (107,882 | ) | ||||||||
Global Echo ETF | 5,492 | 51,008 | (56,500 | ) | ||||||||
Madrona Domestic ETF | (2,298 | ) | (278,320 | ) | 280,618 | |||||||
Madrona Global Bond ETF | 1,029 | (44,785 | ) | 43,756 | ||||||||
Madrona International ETF | 491 | 603 | (1,094 | ) | ||||||||
Meidell Tactical Advantage ETF | — | (204,813 | ) | 204,813 | ||||||||
Peritus High Yield ETF | 24,794 | (403,822 | ) | 379,028 | ||||||||
Rocklege SectorSAM ETF | 9,845 | (63,247 | ) | 53,402 | ||||||||
Trim Tabs Float Shrink ETF | (369 | ) | (975,556 | ) | 975,925 | |||||||
WCM/BNY Mellon Focused Growth ADR ETF | 5,547 | (532,644 | ) | 527,097 |
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to the tax treatment of net operating losses and distribution reclassifications.
The tax character of distributions paid during the periods ended June 30, 2012 and 2011 were:
Fund | 2012 Ordinary Income | 2011 Ordinary Income | ||||||
Accuvest Global Long Short ETF | $ | 46,188 | $ | — | ||||
Cambria Global Tactical ETF | 1,214,084 | 577,538 | ||||||
Dent Tactical ETF | — | 32,743 | ||||||
Madrona Domestic ETF | 39,582 | — | ||||||
Madrona Global Bond ETF | 441,742 | — | ||||||
Madrona International ETF | 57,112 | — | ||||||
Meidell Tactical Advantage ETF | 1,366 | — | ||||||
Peritus High Yield ETF | 6,319,917 | 1,009,110 | ||||||
Trim Tabs Float Shrink ETF | 2,501 | — | ||||||
WCM/BNY Mellon Focused Growth ADR ETF | 52,639 | 24,332 |
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ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2012
7. Federal Income Tax - (continued)
Under current tax regulations, capital losses on securities transactions realized after October 31 (“Post-October Losses”) may be deferred and treated as occurring on the first business day of the following fiscal Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to defer taxable ordinary income losses incurred after December 31 and treat as occurring on the first business day of the following fiscal year. Post-October losses and ordinary income losses deferred to July 1, 2012 are as follows:
Fund | Ordinary | Short-Term Post-Effective | Long-Term Post-Effective | |||||||||
Accuvest Global Long Short ETF | $ | 194,819 | $ | 556,545 | $ | 170,121 | ||||||
Accuvest Global Opportunities ETF | — | 1,028,744 | — | |||||||||
Active Bear ETF | 2,880,389 | 4,862,699 | — | |||||||||
Cambria Global Tactical ETF | — | 4,579,851 | — | |||||||||
Dent Tactical ETF | 22,494 | 1,270,063 | 3,253 | |||||||||
Madrona Domestic ETF | — | 434,347 | 148 | |||||||||
Madrona International ETF | — | 756,413 | — | |||||||||
Meidell Tactical Advantage ETF | — | 258,312 | — | |||||||||
Rocklege SectorSAM ETF | 13,425 | — | — | |||||||||
WCM/BNY Mellon Focused Growth ADR ETF | — | — | 162,335 |
The following Funds have capital loss carryforwards available to offset future realized gains of:
Fund | Short-Term Post-Effective No Expiration | Long-Term Post-Effective No Expiration | Total | |||||||||
Accuvest Global Long Short ETF | $ | 4,013,423 | $ | 261,538 | $ | 4,274,961 | ||||||
Cambria Global Tactical ETF | 15,407,657 | — | 15,407,657 | |||||||||
Dent Tactical ETF | 104,238 | — | 104,238 | |||||||||
Madrona Domestic ETF | 567,238 | — | 567,238 | |||||||||
Madrona International ETF | 1,166,056 | — | 1,166,056 | |||||||||
Meidell Tactical Advantage ETF | 52,271 | — | 52,271 | |||||||||
Peritus High Yield ETF | — | 35,700 | 35,700 |
The Funds used capital loss carryforwads as follows to offset taxable capital gains realized during the year ended June 30, 2012:
Fund | Capital Loss Carryforwards Used | |||
Active Bear ETF | $ | 2,879,509 |
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.
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ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2012
8. Investment Transactions
Purchases and sales of investments for the period ended June 30, 2012 are as follows:
Fund | Purchases | Sales | Purchases In-Kind | Sales In-Kind | ||||||||||||
Accuvest Global Long Short ETF | $ | 34,429,127 | $ | 32,583,092 | $ | 17,124,372 | $ | 9,625,628 | ||||||||
Accuvest Global Opportunities | 12,170,933 | 12,143,867 | 14,158,424 | — | ||||||||||||
Active Bear ETF | 1,295,489,426 | 1,038,886,101 | — | — | ||||||||||||
Cambria Global Tactical ETF | 597,212,955 | 596,542,386 | 9,027,617 | 88,279,051 | ||||||||||||
Dent Tactical ETF | 64,817,541 | 62,477,303 | 418,818 | 5,935,832 | ||||||||||||
Global Echo ETF | 5,602,414 | 7,238,036 | 15,061,776 | 9,495,955 | ||||||||||||
Madrona Domestic ETF | 7,115,585 | 5,564,251 | 14,746,328 | 2,954,808 | ||||||||||||
Madrona Global Bond ETF | 1,778,317 | 1,928,658 | 19,439,129 | 1,228,070 | ||||||||||||
Madrona International ETF | 13,100,100 | 13,120,093 | 16,181,964 | 1,612,328 | ||||||||||||
Meidell Tactical Advantage ETF | 23,205,196 | 25,615,396 | 7,692,921 | 4,502,945 | ||||||||||||
Peritus High Yield ETF | 111,455,933 | 51,378,604 | — | 7,626,190 | ||||||||||||
Rockledge SectorSAM ETF | 8,156,899 | 8,272,016 | 5,082,132 | 2,531,135 | ||||||||||||
Trimtabs Float Shrink ETF | 12,716,524 | 20,470,946 | 34,148,240 | 19,246,467 | ||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 1,086,798 | 1,418,683 | 4,206,361 | 5,500,859 |
9. 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.
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
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ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2012
9. Risks Involved with Investing in the Funds - (continued)
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.
10. New Accounting Pronouncements
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.
11. Liquidation
In July 2012, at the recommendation of the Advisor, the Trust’s Board of Trustees (the “Board”) approved the closing and subsequent liquidation of the Dent Tactical ETF (the “Fund”) pursuant to the terms of a Plan of Liquidation. Accordingly, the Fund is expected to cease operations, liquidate its assets, and distribute the liquidation proceeds to shareholders of record on or after August 15, 2012, (the “Liquidation Date”).
On or promptly after the Liquidate Date, the Fund will distribute a liquidating cash distribution equal to the net asset value of the shareholder’s Fund shares as of the close of the Liquidation Date. The liquidating cash distribution to shareholders will be treated as payment in exchange for their shares. The liquidation of Fund shares may be treated as a taxable event. Shareholders should contact their tax adviser to discuss the income tax consequences of the liquidation.
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ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2012
12. Subsequent Events
The Funds have adopted authoritative standards of accounting for 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.
13. Unaudited Tax Information
Qualified Dividend Income — Certain dividends paid by the Funds may be subject to a minimum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of ordinary income distributions for the period ended June 30, 2012, taxed at a maximum rate of 15% were:
Fund | Percentage | |||
Cambria Global Tactical ETF | 59.84 | % | ||
Madrona Domestic ETF | 100.00 | % | ||
Madrona Global Bond ETF | 10.56 | % | ||
Madrona International ETF | 74.72 | % | ||
Trim Tabs Float Shrink ETF | 61.87 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 76.50 | % |
Dividends Received Deduction — For corporate shareholders, the percentage of ordinary income distributions for the period ended June 30, 2012 that qualifies for the dividends received deduction were:
Fund | Percentage | |||
Cambria Global Tactical ETF | 53.99 | % | ||
Madrona Domestic ETF | 100.00 | % | ||
Madrona Global Bond ETF | 4.74 | % | ||
Madrona International ETF | 1.63 | % | ||
Trim Tabs Float Shrink ETF | 72.14 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 8.40 | % |
Qualified Interest Income — For NRA shareholders, the percentage of ordinary income distributions for the period ended June 30, 2012 that qualifies as qualified interest income were:
Fund | Percentage | |||
Madrona Global Bond ETF | 59.45 | % | ||
Peritus High Yield ETF | 92.13 | % |
The following Funds intend to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:
Fund | Gross Foreign Income | Foreign Taxes Paid | ||||||
Accuvest Global Opportunities ETF | $ | 130,100 | $ | 11,934 | ||||
Cambria Global Tactical ETF | 31,625 | 3,720 | ||||||
Madrona International ETF | 381,993 | 40,103 | ||||||
WCM/BNY Mellon Focused Growth ADR ETF | 122,139 | 17,037 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders
AdvisorShares Trust
We have audited the accompanying statements of assets and liabilities of Accuvest Global Long Short ETF (formerly known as Mars Hill Global Relative Value ETF), Accuvest Global Opportunities ETF, Active Bear ETF, Cambria Global Tactical ETF, Dent Tactical ETF, Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Peritus High Yield ETF, Rockledge SectorSAM ETF, TrimTabs Float Shrink ETF and WCM/BNY Mellon Focused Growth ADR ETF, each a series of AdvisorShares Trust (the “Trust”), including the schedules of investments as of June 30, 2012, and the related statements of operations, the statements of changes in net assets and the financial highlights for the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal controls over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2012, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Accuvest Global Long Short ETF (formerly known as Mars Hill Global Relative Value ETF), Accuvest Global Opportunities ETF, Active Bear ETF, Cambria Global Tactical ETF, Dent Tactical ETF, Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Peritus High Yield ETF, Rockledge SectorSAM ETF, TrimTabs Float Shrink ETF and WCM/BNY Mellon Focused Growth ADR ETF, as of June 30, 2012, and the results of their operations, the changes in their net assets and their financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.
TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
August 28, 2012
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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, Address and Date of Birth of Trustee/Officer | Position(s) Held with the Trust, Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee/ Officer | Other Directorships Held by Trustee | ||||
Interested Trustee | ||||||||
Noah Hamman* 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1968) | Trustee, No set term; served since 2009 | CEO and Founder of AdvisorShares Investments, LLC – Investment Advisory Services (2006 – present); President and CEO of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President – Business Development of Rydex Investments (2001 – 2006). | 18 | None | ||||
Independent Trustees | ||||||||
Elizabeth (“Betsy”) Piper/Bach 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1952) | Trustee, No set term; served since 2009 | Vice President / COO of NADA Retirement Administrators, Inc. (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 – 2006). | 18 | None | ||||
William G. McVay 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1954) | Trustee, No set term; served since 2011 | Founder of RDK Strategies, LLC (2007 –present); Vice-President of Zephyr Associates, Inc. (2001 – 2006); Executive Vice-President of Financeware, Inc. (2000); First Vice-President of Legg Mason Wood Walker, Inc. (1989 – 2000). | 18 | None | ||||
Officers of AdvisorShares Trust | ||||||||
Noah Hamman 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1968) | Chief Executive Officer & President, 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 – 2006). | 18 | None | ||||
Dan Ahrens 4144 N. Central Expressway, Suite 600, Dallas, TX 75204 (1966) | Chief Compliance Officer, Secretary & Treasurer, No set term; served 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). | 18 | None |
120
Board Review of Investment Advisory and Sub-Advisory Agreements
ADVISORY AND SUB-ADVISORY CONTRACT APPROVAL
Renewal of the Advisory Agreement and Peritus High Yield ETF Sub-Advisory Agreement
At meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on February 27, 2012 and May 21, 2012 (together, the “Meetings”), 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 (1) the renewal of the investment sub-advisory agreement between the Advisor and Peritus I Asset Management, LLC (“Peritus”) on behalf of the Peritus High Yield ETF and (2) the renewal of the investment advisory agreement between the Trust on behalf of following series: Dent Tactical ETF, WCM/BNY Mellon Focused Growth ADR ETF, Accuvest Global Long Short ETF (formerly, Mars Hill Global Relative Value ETF), Peritus High Yield ETF, Active Bear ETF, Cambria Global Tactical ETF, Madrona Domestic ETF, Madrona International ETF, Madrona Global Bond ETF, Meidell Tactical Advantage, Rockledge SectorSAM ETF, TrimTabs Float Shrink ETF, and Accuvest Global Opportunities ETF (each, a “Fund” and collectively, the “Funds”) and AdvisorShares Investments, LLC (the “Advisor”) (together with the investment sub-advisory agreement, the “Advisory Agreements”).
Pursuant to Section 15(c) of the 1940 Act, the Board must annually review and re-approve the existing Advisory Agreements after their initial two-year term: (i) by the vote of the Board or by a vote of the shareholders of the Funds; 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, the Board calls and holds a meeting to decide whether to renew the Advisory Agreements 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 Peritus. The Board uses this information, as well as other information that the Advisor, Peritus and other service providers may submit to the Board, to help them decide whether to renew the Advisory Agreements for an additional year.
Prior to this year’s Meetings held on February 27, 2012 and May 21, 2012, the Board, including the Independent Trustees, reviewed written materials from the Advisor and Peritus regarding, among other things: (i) the nature, extent and quality of the services to be provided by the Advisor and Peritus; (ii) the investment performance of each Fund; (iii) the costs of the services to be provided and profits to be realized by the Advisor and its affiliates from the relationship with the Funds; (iv) the costs of the services to be provided and profits and other benefits to be realized by Peritus and its affiliates from the relationship with the Peritus High Yield ETF; (v) the respective personnel and operations of Peritus; (vi) the extent to which economies of scale would be realized as each Fund grows; and (vii) whether fee levels reflect these economies of scale for the benefit of the Funds’ investors, as discussed in further detail below.
At the Meetings, representatives of the Advisor and Peritus, along with other Fund service providers, presented additional oral and written information to help the Board evaluate the Advisor’s and Peritus’ advisory fees and other aspects of the Advisory Agreements. The Advisor provided an overview of the Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and also discussed compliance oversight. Peritus discussed its management of the Peritus High Yield ETF in more detail, including the Fund’s strategy, its focus on the international market, the Fund’s positioning in the market, and its attractive and unique offering. Peritus also discussed the company’s overall business generally, including personnel, the company’s culture and the differences between exchange-traded funds and separate accounts. The Board then discussed the written materials that the Board received before the Meetings, the Advisor’s and Peritus’ oral presentations and any other information that the Board received at the Meetings, and deliberated on the renewal of the Advisory Agreements in light of this information. In its deliberations, the Board considered the factors and reached the conclusions described below relating to the selection of the
121
Advisor and Peritus and the renewal of the Advisory Agreements. The Board 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 the Advisor and Peritus
In considering the nature, extent and quality of the services provided by the Advisor and Peritus, the Board reviewed the portfolio management services provided to the Funds. The Board also noted the extensive responsibilities that the Advisor has as investment adviser to the Funds, including the selection of the Funds’ sub-advisers and oversight of the sub-advisers’ compliance with Fund policies and objectives, oversight of general Fund compliance with federal laws, and the implementation of Board directives as they relate to the Funds. The most recent investment adviser registration forms (“Forms ADV”) for the Advisor and Peritus were also provided to the Board, as were the responses of the Advisor and Peritus 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 Funds.
The Board also considered the Advisor’s overall high quality of the personnel, operations, financial condition, and investment advisory capabilities and information concerning Peritus’ compliance function, operational capabilities and portfolio management team. 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 Funds by the Advisor and Peritus.
Investment Performance of the Funds
The Board was provided with information regarding each Fund’s performance since the Advisory Agreements were last approved, as well as information regarding each Fund’s performance since its inception. At the meeting, representatives of the Advisor and Peritus provided information regarding, and led a discussion of, factors impacting the performance of the Funds, outlining current market conditions and explaining the Advisor’s expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that the Advisor and Peritus had been able to achieve for the Funds.
Costs of Advisory Services, Profitability and Economies of Scale
In concluding that the advisory fee payable by each Fund was reasonable, the Board reviewed a report of the advisory fee paid by each Fund to the Advisor, the sub-advisory fee paid by the Advisor to Peritus, and the fees and expenses waived and/or reimbursed by the Advisor and Peritus over the period, as well as the costs and other expenses incurred by the Advisor and Peritus in providing advisory services. The Board also reviewed reports comparing the expense ratio and advisory fee paid by each Fund to those paid by other comparable funds and noted each Fund’s advisory fee was consistent with the range of advisory fees paid by other peer funds. The Board concluded for each Fund that the 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 each Fund whether economies of scale were realized during the current contract period, but concluded that such economies of scale had not 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: (i) concluded that terms of the Advisory Agreements are fair and reasonable; (ii) concluded that the Advisor’s fees are reasonable in light of the services that its provides to the Funds (iii) concluded that Peritus’ fees are reasonable in light of the services that it provides to the Peritus High Yield ETF; and (iv) agreed to renew the Advisory Agreements for another year.
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Initial Approval of the Advisory and Sub-Advisory Agreements for Accuvest Global Long Short ETF and Global Echo ETF
At meetings of the Board held on August 30, 2011 and November 16, 2011 (together, the “Initial Approval 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 the Global Echo ETF. The Board also considered the approval of separate sub-advisory agreements (together, the “Sub-Advisory Agreements,” and collectively, with the Advisory Agreement, the “New Agreements”) between (1) the Advisor and Accuvest Global Advisors, a California corporation, on behalf of the Accuvest Global Long Short ETF (formerly, Mars Hill Global Relative Value ETF), and (2) the Advisor and Baldwin Brothers Inc., a Delaware corporation, Community Capital Management Inc., a Delaware corporation, First Affirmative Financial Network LLC, a Colorado limited liability company, and Reynders, McVeigh Capital Management, LLC, a Massachusetts limited liability company, on behalf of the Global Echo ETF (each, a “Sub-Advisor,” collectively, the “Sub-Advisors” and, together with the Advisor, the “Advisors”) pursuant to which the Sub-Advisors perform portfolio management and related services for the Accuvest Global Long Short ETF and the Global Echo ETF. In addition, on March 29, 2012, the Sub-Advisory Agreement between the Advisor and Accuvest Global Advisors was approved by a majority of shareholders of the Accuvest Global Long Short Fund.
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 the vote of the Board or by a vote of the shareholders of each 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.
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. In that regard, the Board reviewed presentations it received from each Sub-Advisor, which included information with respect to staffing, management, organizational structure and investment philosophy and processes at each firm. For the Global Echo ETF, the Board also reviewed information comparing the proposed investment advisory fee rates and expense ratios with a group of comparable funds as selected by the Advisor. 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 the discussions among the Trustees leading up to and during the Initial Approval Meetings, the Board, on behalf of the Trust and the Accuvest Global Long Short ETF and Global Echo ETF, agreed that it had been furnished with sufficient information to make an informed business decision with respect to 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 be provided to the Accuvest Global Long Short ETF and Global Echo ETF, 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 the circumstances, in the best interests of the Accuvest Global Long Short ETF and Global Echo ETF and their respective shareholders. Among the factors that the Board considered and conclusions that the Trustees, in their business judgment, reached included, principally the following: (i) their favorable evaluation of the nature, extent and quality of the investment management services proposed to be provided by the Advisors to the Accuvest Global Long Short ETF and the Global Echo ETF; (ii) their satisfaction that the investment advisory fee rates proposed for the Accuvest Global Long Short ETF and the Global Echo ETF are consistent with applicable standards and are reasonable and fair; and (iii) their assessment that the Advisors’ projected profitability in connection with providing investment management services to the Accuvest Global Long Short ETF and the Global Echo ETF would not be excessive.
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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 Initial Approval 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 Accuvest Global Long Short ETF and Global Echo ETF. The Board also discussed information set forth in each firm’s Form ADV (Parts 1A and 2A), which provides information about each firm, its management, and its business activities and affiliations. For the Sub-Advisors to the Global Echo ETF, the Board observed that the Chief Compliance Officer of the Trust reviewed each firm’s compliance program and determined that they were reasonably designed to prevent violation of the federal securities laws by the Global Echo ETF. For the Accuvest Long Short Fund, the Board considered the fact that Accuvest Global Advisors also serves as the sub-adviser for Accuvest Global Opportunities ETF, a separate series of the Trust, and the professional experience and qualifications of Accuvest Global Advisors’ senior management and key professional personnel, including those individuals responsible for portfolio management. The Board also considered Accuvest Global Advisors’ operational capabilities and resources, and its depth and breadth of experience in managing investment portfolios. 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 Accuvest Global Long Short ETF and Global Echo ETF and to provide services that are of high quality, and that each firm has appropriate resources to provide such services.
Performance of the Accuvest Global Long Short ETF and Global Echo ETF
In connection with the assessment of the ability of Accuvest Global Advisors to perform its duties under the Sub-Advisory Agreement, the Board considered the sufficiency of its resources. The Board concluded that Accuvest Global Advisors had the financial resources necessary to perform its obligations under the Sub-Advisory Agreement. With respect to the Global Echo ETF, 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 Global Echo ETF is newly formed.
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 by AdvisorShares 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
The Board considered whether economies of scale would be realized by the Accuvest Global Long Short ETF at higher asset levels. The Board also assessed whether certain costs would increase if asset levels rise. The Board concluded that under foreseeable conditions, they were unable to assess at this time whether economies of scale would be realized if the Accuvest Global Long Short ETF were to experience significant growth. The Board, however, noted that the fees paid under the new Sub-Advisory Agreement, like the previous sub-advisory agreement, are paid by the Advisor. For the Global Echo ETF, the Board concluded that economies of scale would not likely be realized during the Sub-Advisors’ initial term and determined that it would reconsider this factor at an appropriate time in
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the future. In the event there were to be significant asset growth in either the Accuvest Global Long Short ETF or the Global Echo ETF, the Board determined to reassess whether the investment sub-advisory fees paid to the Sub-Advisors appropriately took into account any economies of scale that had been realized as a result of that growth.
Conclusion
Based on the Board’s deliberations and its evaluation of the information described above, the Board including the Independent Trustees, unanimously: (i) concluded that the terms of the New Agreements are fair and reasonable; (ii) concluded that Accuvest Global Advisors’ fee is fair and reasonable in light of the services that it will provide to the Accuvest Global Long Short ETF, (iii) concluded that the Advisor’s fee is fair and reasonable in light of the services that it will provide to the Global Echo ETF, (iv) concluded that the fees for Baldwin Brothers Inc., Community Capital Management Inc., First Affirmative Financial Network LLC, and Reynders, McVeigh Capital Management, LLC are each fair and reasonable in light of the services that each Sub-Advisor will provide to the Global Echo ETF, and (v) agreed to approve the New Agreements for initial terms of two years.
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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.
Premium/Discount Information
Information about the differences between the daily market price on the secondary market for the shares of a Fund and the Fund’s net asset value may be found on the Fund’s website at http://www.advisorshares.com.
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ADVISORSHARES TRUST
Investment Advisor
AdvisorShares Investments, LLC
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814
Sub-Adviser
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
Community Capital Management, Inc.
2500 Weston Road, Suite 101
Weston, FL 33331
First Affirmative Financial Network, LLC
5475 Mark Dabling Boulevard, Suite 108
Colorado Springs, Colorado 80918
Reynders, McVeigh Capital Management, LLC
121 High Street, 5th Floor
Boston, MA 02110
Baldwin Brothers, Inc.
204 Spring Street
Marion, MA 02738
Rockledge Advisors, LLC
460 Classon Avenue
Brooklyn, NY 11238
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.
a). The Registrant has adopted a code of ethics that applies to the Registrant’s Chief Executive Officer, Treasurer or persons performing similar functions.
b). There have not been any changes to the Code of Ethics.
c). Not Applicable
d). During the period, Registrant granted no waivers from the provisions of its code of ethics that applies to the Registrant's Chief Executive Officer, Treasurer or persons performing similar functions.
e). Not Applicable
f). Attached
Item 3. Audit Committee Financial Expert.
a). The Registrant’s Board of Trustees has one audit committee financial expert serving on its audit committee, an “independent” Trustee, Elizabeth Piper/Bach. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services.
a). Audit Fees: the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for the audit are as follows:
2012: $182,200
2011: $86,000
b). Audit-Related Fees: the aggregate fees billed in each of the previous last two fiscal years for assurance and related services by the principal accountant that are principally related to the Registrant’s tax return reviews and are not reported under paragraph (a) of this item are as follows:
2012: N/A
2011: N/A
c). Tax Fees, the aggregate fees billed in each of the previous last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are as follows:
2012: $36,400
2011: $17,000
d). All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) and (c) of this Item are as follows:
2012: N/A
2011: N/A
e) Audit Committee Pre-Approval Policies and Procedures.
(i) Per Rule 2-01(c)(7)(A), the Audit Committee pre-approves all of the Audit, Audit-Related, Tax and Other Fees of the Registrant.
(ii) 100% of services described in each of Items 4(b) through (d) were approved
by the audit committee pursuant to paragraph (c)(7)(A) of Rule 2-01 of Regulation S-X.
(f) No response required.
(g) The aggregate non-audit fees billed by the Registrant's accountant for services rendered to the Funds, the Advisor or any entity controlling, controlled by, or under common control with the Advisor that provides ongoing services to the Registrant (except for any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor) that directly impacted the Funds for the period ended June 30, 2011 were as follows:
2012: N/A
2011: N/A
(h) Not Applicable
Item 5. Audit Committee of Listed Registrants.
(a) The Fund has a designated Audit Committee in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and the member of such committee is Elizabeth Piper/Bach and William G. McVay.
(b) Not applicable.
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: Attached
(b) Separate certifications for each Chief 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: September 6, 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: September 6, 2012
By: /s/ Dan Ahrens
Dan Ahrens, Treasurer
Date: September 6, 2012