UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22110
AdvisorShares Trust
(Exact name of registrant as specified in charter)
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814
(Address of principal executive offices) (Zip code)
Dan Ahrens
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-877-843-3831
Date of fiscal year end: June 30
Date of reporting period: December 31, 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.
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSRS/0001144204-13-013226/logo_advisorshares-bw.jpg)
ADVISORSHARES TRUST
2 Bethesda Metro Center
Suite 1330
Bethesda, Maryland 20814
www.advisorshares.com
877.THE.ETF1
Semi-Annual Report
December 31, 2012
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC
December 31, 2012
Thank you for being a shareholder in AdvisorShares ETFs. We are pleased to provide you with this semi-annual report for the period ending December 31, 2012. Thanks to your support, we have been able to greatly increase the actively managed investment strategies we can offer you. From December 31, 2011 through December 31, 2012, we have grown from 11 ETFs to 17 ETFs, and our total assets under management have increased from approximately $420,000,000 to approximately $620,000,000. In this same period, the number of Active ETFs across all sponsors increased from 40 ETFs to 55 ETFs, and total assets under management doubled to approximately $10,000,000,000.
We are looking forward to seeking out new quality investment managers that provide transparency, intra-day liquidity, and better overall operating efficiency. In addition to reading this report, we encourage you to visit www.advisorshares.com to learn more about all the actively managed ETFs currently offered by AdvisorShares and others that are launching soon. There you will find detailed information on each investment strategy along with manager commentary from each ETF’s portfolio management team.
We appreciate your support and use of our ETFs and we hope that you find them helpful to your investment goals.
Sincerely,
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSRS/0001144204-13-013226/sig_noah-hamman.jpg)
Noah Hamman
CEO, AdvisorShares Investments
An investment in the Funds is subject to risk, including the possible loss of principal amount invested. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund's webpage.
The views in this report were those of the Fund’s CEO as of December 31, 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.
ADVISORSHARES TRUST
Shareholder Expense Examples
As a shareholder of the Fund, you incur transaction cost and ongoing costs, including management fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The examples are based on an initial investment of $1,000 invested at the beginning of the period and held for the period ended December 31, 2011.
Actual Expenses
The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid” to estimate the expenses attributable to your account during this period.
Hypothetical Example for Comparison Purposes
The second line under each Fund in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses for the period. You may use this information to compare the ongoing costs of investing in the Funds and other ETF funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have been higher.
 | | | | | | | | |
| Fund Name | | Beginning Account Value | | Ending Account Value 12/31/2012 | | Annualized Expense Ratio for the Period | | Expenses Paid |
Accuvest Global Long Short ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,060.40 | | | | 1.50 | % | | $ | 7.79 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.64 | | | | 1.50 | % | | $ | 7.63 | |
Accuvest Global Opportunities ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,174.00 | | | | 1.25 | % | | $ | 6.85 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.90 | | | | 1.25 | % | | $ | 6.36 | |
Cambria Global Tactical ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,055.80 | | | | 1.07 | % | | $ | 5.54 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.81 | | | | 1.07 | % | | $ | 5.45 | |
Global Alpha & Beta ETF(1)
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,049.00 | | | | 1.25 | % | | $ | 6.10 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.88 | | | | 1.25 | % | | $ | 6.01 | |
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
| | | | | | | | |
| Fund Name | | Beginning Account Value | | Ending Account Value 12/31/2012 | | Annualized Expense Ratio for the Period | | Expenses Paid |
Global Echo ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,016.00 | | | | 1.50 | % | | $ | 7.62 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.64 | | | | 1.50 | % | | $ | 7.63 | |
Madrona Domestic ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,096.70 | | | | 1.25 | % | | $ | 6.61 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.90 | | | | 1.25 | % | | $ | 6.36 | |
Madrona Global Bond ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,044.40 | | | | 0.95 | % | | $ | 4.90 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.42 | | | | 0.95 | % | | $ | 4.84 | |
Madrona International ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,154.80 | | | | 1.25 | % | | $ | 6.79 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.90 | | | | 1.25 | % | | $ | 6.36 | |
Meidell Tactical Advantage ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,038.40 | | | | 1.35 | % | | $ | 6.94 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.40 | | | | 1.35 | % | | $ | 6.87 | |
Peritus High Yield ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,073.20 | | | | 1.34 | % | | $ | 7.00 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.45 | | | | 1.34 | % | | $ | 6.82 | |
Pring Turner Business Cycle ETF(2)
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 996.40 | | | | 1.49 | % | | $ | 0.53 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,001.25 | | | | 1.49 | % | | $ | 0.53 | |
QAM Equity Hedge ETF(3)
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,031.50 | | | | 1.50 | % | | $ | 6.09 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,014.00 | | | | 1.50 | % | | $ | 6.04 | |
Ranger Equity Bear ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 785.30 | | | | 1.59 | % | | $ | 7.15 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.19 | | | | 1.59 | % | | $ | 8.08 | |
Rockledge SectorSAM ETF(3)
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 999.90 | | | | 1.50 | % | | $ | 7.56 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.64 | | | | 1.50 | % | | $ | 7.63 | |
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
| | | | | | | | |
| Fund Name | | Beginning Account Value | | Ending Account Value 12/31/2012 | | Annualized Expense Ratio for the Period | | Expenses Paid |
STAR Global Buy-Write ETF(4)
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 993.90 | | | | 1.85 | % | | $ | 5.31 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,009.06 | | | | 1.85 | % | | $ | 5.35 | |
Trimtabs Float Shrink ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,039.40 | | | | 0.99 | % | | $ | 5.09 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.21 | | | | 0.99 | % | | $ | 5.04 | |
WCM/BNY Mellon Focused Growth
ADR ETF
| | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 1,089.30 | | | | 1.25 | % | | $ | 6.58 | |
| Hypothetical (assuming a 5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.90 | | | | 1.25 | % | | $ | 6.36 | |
| * | Expense ratios reflect expense caps through the period ended December 31, 2012. |
| (1) | Fund commenced operations on July 10, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 174/365 (to reflect commencement of operation). |
| (2) | Fund commenced operations on December 18, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 13/365 (to reflect commencement of operation). |
| (3) | Fund commenced operations on August 7, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 146/365 (to reflect commencement of operation). |
| (4) | Fund commenced operations on September 17, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 105/365 (to reflect commencement of operation). |
ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
EXCHANGE TRADED FUNDS — 99.6%
| | | | | | | | |
Equity Fund — 99.6%
| | | | | | | | |
| Guggenheim China Small Cap Index ETF | | | 89,719 | | | $ | 2,152,359 | |
| iShares MSCI Austria Investable Market Index Fund | | | 196,710 | | | | 3,578,155 | |
| iShares MSCI China Index Fund(a) | | | 75,957 | | | | 3,686,953 | |
| iShares MSCI Germany Index Fund(a) | | | 76,339 | | | | 1,887,100 | |
| iShares MSCI Hong Kong Index Fund | | | 55,355 | | | | 1,074,994 | |
| iShares MSCI South Africa Index Fund(a) | | | 51,527 | | | | 3,688,303 | |
| iShares MSCI South Korea Index Fund | | | 21,550 | | | | 1,365,408 | |
| iShares MSCI Thailand Investable Market Index Fund(a) | | | 24,518 | | | | 2,022,490 | |
| iShares MSCI Turkey Investable Market Index Fund(a) | | | 84,941 | | | | 5,672,360 | |
| iShares S&P India Nifty 50 Index Fund | | | 114,227 | | | | 2,845,394 | |
Total Exchange Traded Funds
(Cost $25,468,535) | | | | | | | 27,973,516 | |
MONEY MARKET FUND — 8.5%
| | | | | | | | |
Dreyfus Cash Management – Investor Class
(Cost $2,383,420) | | | 2,383,420 | | | | 2,383,420 | |
Total Investments Before Securities Sold, Not Yet Purchased
(Cost $27,851,955) | | | | | | | 30,356,936 | |
Securities Sold, Not Yet Purchased
| | | | | | | | |
EXCHANGE TRADED FUNDS — (51.4)%
| | | | | | | | |
Equity Fund
| | | | | | | | |
| iShares MSCI Brazil Index Fund | | | 42,022 | | | | (2,355,753 | ) |
| iShares MSCI Canada Index Fund | | | 54,515 | | | | (1,548,226 | ) |
| iShares MSCI Chile Investable Market Index Fund | | | 45,947 | | | | (2,905,688 | ) |
| iShares MSCI Italy Index Fund | | | 149,381 | | | | (2,009,175 | ) |
| iShares MSCI Malaysia Index Fund | | | 119,276 | | | | (1,804,646 | ) |
| iShares MSCI Netherlands Investable Market Index Fund | | | 28,596 | | | | (586,504 | ) |
| iShares MSCI Russia Capped Index Fund | | | 28,596 | | | | (676,296 | ) |
| iShares MSCI Taiwan Index Fund | | | 113,816 | | | | (1,550,174 | ) |
| iShares Russell 2000 Index Fund | | | 11,770 | | | | (992,093 | ) |
Total Securities Sold, Not Yet Purchased
[Proceeds Received $(13,401,016)] | | | | | | | (14,428,555 | ) |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Equity Fund — (51.4)% (continued)
| | | | | | | | |
Total Investments Net of Securities Sold, Not Yet
Purchased – 56.7%
(Cost $14,450,939) | | | | | | $ | 15,928,381 | |
| Other Assets in Excess of Liabilities — 43.3% | | | | | | | 12,168,461 | |
| Net Assets — 100.0% | | | | | | $ | 28,096,842 | |
ETF — Exchange Traded Fund
| (a) | Represents security, or a portion thereof, segregated as collateral for securities sold, not yet purchased. |
Cash of $12,279,345 has been segregated to cover requirement for open short sales as of December 31, 2012.
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Equity Fund | | | 48.2 | % |
| Money Market Fund | | | 8.5 | |
| Total Investments | | | 56.7 | |
| Other Assets in Excess of Liabilities | | | 43.3 | |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
ACCUVEST GLOBAL OPPORTUNITIES ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
EXCHANGE TRADED FUNDS — 100.0%
| | | | | | | | |
Equity Fund — 100.0%
| | | | | | | | |
| iShares MSCI Austria Investable Market Index Fund | | | 181,407 | | | $ | 3,299,793 | |
| iShares MSCI China Index Fund | | | 80,059 | | | | 3,886,064 | |
| iShares MSCI South Africa Index Fund | | | 42,219 | | | | 3,022,036 | |
| iShares MSCI Turkey Investable Market Index Fund | | | 61,967 | | | | 4,138,156 | |
| iShares S&P India Nifty 50 Index Fund | | | 107,384 | | | | 2,674,936 | |
Total Exchange Traded Funds
(Cost $15,700,911) | | | | | | | 17,020,985 | |
MONEY MARKET FUND — 1.3%
| | | | | | | | |
Dreyfus Cash Management — Institutional Class
(Cost $221,611) | | | 221,611 | | | | 221,611 | |
Total Investments — 101.3%
(Cost $15,922,522) | | | | | | | 17,242,596 | |
| Liabilities in Excess of Other Assets — (1.3)% | | | | | | | (215,287 | ) |
| Net Assets — 100.0% | | | | | | $ | 17,027,309 | |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Equity Fund | | | 100.0 | % |
| Money Market Fund | | | 1.3 | |
| Total Investments | | | 101.3 | |
| Liabilities in Excess of Other Assets | | | (1.3 | ) |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
EXCHANGE TRADED FUNDS — 97.7%
| | | | | | | | |
Commodity Fund — 7.4%
| | | | | | | | |
| PowerShares DB Base Metals Fund* | | | 122,124 | | | $ | 2,354,551 | |
| PowerShares DB Precious Metals Fund* | | | 40,959 | | | | 2,338,349 | |
| Total Commodity Fund | | | | | | | 4,692,900 | |
Debt Fund — 26.9%
| | | | | | | | |
| iShares Barclays 1 – 3 Year Treasury Bond Fund | | | 5,682 | | | | 479,674 | |
| iShares Barclays 3 – 7 Year Treasury Bond Fund | | | 3,884 | | | | 478,587 | |
| iShares Barclays 7 – 10 Year Treasury Bond Fund | | | 4,429 | | | | 476,073 | |
| iShares Barclays 20+ Year Treasury Bond Fund | | | 19,589 | | | | 2,373,795 | |
| iShares Barclays MBS Bond Fund | | | 4,430 | | | | 478,440 | |
| iShares Barclays TIPS Bond Fund | | | 3,925 | | | | 476,534 | |
| iShares Core Total US Bond Market ETF | | | 4,281 | | | | 475,576 | |
| iShares iBoxx $ High Yield Corporate Bond Fund | | | 27,010 | | | | 2,521,384 | |
| iShares iBoxx $ Investment Grade Corporate Bond Fund | | | 20,888 | | | | 2,527,239 | |
| PIMCO Enhanced Short Maturity ETF | | | 4,728 | | | | 479,797 | |
| PowerShares Emerging Markets Sovereign Debt Portfolio | | | 85,414 | | | | 2,686,270 | |
| PowerShares Fundamental High Yield Corporate Bond Portfolio | | | 114,211 | | | | 2,198,676 | |
| SPDR Barclays International Treasury Bond ETF | | | 7,940 | | | | 484,499 | |
| Vanguard Short-Term Bond ETF | | | 5,898 | | | | 477,679 | |
| Vanguard Total Bond Market ETF | | | 5,657 | | | | 475,358 | |
| Total Debt Fund | | | | | | | 17,089,581 | |
Equity Fund — 63.4%
| | | | | | | | |
| Consumer Discretionary Select Sector SPDR Fund | | | 20,216 | | | | 958,845 | |
| Energy Select Sector SPDR Fund | | | 10,681 | | | | 763,051 | |
| Financial Select Sector SPDR Fund | | | 121,118 | | | | 1,986,335 | |
| Global X FTSE Greece 20 ETF | | | 40,987 | | | | 740,225 | |
| Health Care Select Sector SPDR Fund | | | 47,404 | | | | 1,893,790 | |
| iShares FTSE NAREIT Mortgage Plus Capped Index Fund | | | 87,182 | | | | 1,192,650 | |
| iShares FTSE NAREIT Residential Plus Capped Index Fund | | | 40,268 | | | | 1,951,581 | |
| iShares MSCI All Peru Capped Index Fund | | | 14,238 | | | | 653,241 | |
| iShares MSCI Austria Investable Market Index Fund | | | 75,850 | | | | 1,379,711 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Equity Fund — 63.4% (continued)
| | | | | | | | |
| iShares MSCI Belgium Investable Market Index Fund | | | 100,899 | | | $ | 1,397,451 | |
| iShares MSCI EAFE Small Capital Index Fund | | | 14,222 | | | | 578,978 | |
| iShares MSCI Germany Index Fund | | | 55,187 | | | | 1,364,223 | |
| iShares MSCI Hong Kong Index Fund | | | 66,168 | | | | 1,284,983 | |
| iShares MSCI Italy Index Fund | | | 102,558 | | | | 1,379,405 | |
| iShares MSCI Mexico Investable Market Index Fund | | | 19,115 | | | | 1,348,181 | |
| iShares MSCI Spain Index Fund | | | 45,059 | | | | 1,363,485 | |
| iShares MSCI Thailand Investable Market Index Fund | | | 16,773 | | | | 1,383,605 | |
| iShares MSCI Turkey Investable Market Index Fund | | | 20,500 | | | | 1,368,990 | |
| iShares Russell Microcap(R) Index Fund | | | 5,119 | | | | 267,468 | |
| Market Vectors Russia ETF | | | 39,774 | | | | 1,192,027 | |
| PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio | | | 13,892 | | | | 506,419 | |
| PowerShares FTSE RAFI Emerging Markets Portfolio | | | 22,390 | | | | 510,940 | |
| PowerShares FTSE RAFI US 1000 Portfolio | | | 5,190 | | | | 324,012 | |
| PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | | | 4,771 | | | | 331,775 | |
| PowerShares QQQ Trust, Series 1 | | | 2,940 | | | | 191,423 | |
| SPDR Dow Jones International Real Estate ETF | | | 83,072 | | | | 3,435,027 | |
| SPDR S&P Emerging Markets SmallCap ETF | | | 12,300 | | | | 573,672 | |
| Vanguard FTSE All-World ex-U.S. ETF | | | 14,572 | | | | 666,669 | |
| Vanguard Global ex-U.S. Real Estate ETF | | | 38,413 | | | | 2,113,867 | |
| Vanguard Mid-Cap ETF | | | 3,937 | | | | 324,330 | |
| Vanguard MSCI Emerging Markets ETF | | | 11,353 | | | | 505,549 | |
| Vanguard REIT ETF | | | 58,850 | | | | 3,872,330 | |
| Vanguard Small-Cap ETF | | | 4,037 | | | | 326,593 | |
| Vanguard Total Stock Market ETF | | | 4,353 | | | | 319,031 | |
| WisdomTree Emerging Markets Equity Income Fund | | | 11,950 | | | | 682,584 | |
| WisdomTree Emerging Markets SmallCap Dividend Fund | | | 11,669 | | | | 576,915 | |
| WisdomTree International SmallCap Dividend Fund | | | 11,489 | | | | 598,922 | |
| Total Equity Fund | | | | | | | 40,308,283 | |
Total Exchange Traded Funds
(Cost $58,199,487) | | | | | | | 62,090,764 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
MONEY MARKET FUND — 4.4%
| | | | | | | | |
Invesco Government & Agency
Portfolio – Private Investment Class
(Cost $2,822,869) | | | 2,822,869 | | | $ | 2,822,869 | |
Total Investments — 102.1%
(Cost $61,022,356) | | | | | | | 64,913,633 | |
| Liabilities in Excess of Other Assets — (2.1)% | | | | | | | (1,334,660 | ) |
| Net Assets — 100.0% | | | | | | $ | 63,578,973 | |
| ETF | — Exchange Traded Fund |
| MBS | — Mortgage Backed Securities |
| REIT | — Real Estate Investment Trust |
| TIPS | — Treasury Inflation Protected Securities |
| * | Non-income producing security |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Commodity Fund | | | 7.4 | % |
| Debt Fund | | | 26.9 | |
| Equity Fund | | | 63.4 | |
| Money Market Fund | | | 4.4 | |
| Total Investments | | | 102.1 | |
| Liabilities in Excess of Other Assets | | | (2.1 | ) |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
GLOBAL ALPHA & BETA ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
COMMON STOCKS — 56.8%
| | | | | | | | |
Aerospace/Defense — 3.0%
| | | | | | | | |
| Northrop Grumman Corp. | | | 582 | | | $ | 39,332 | |
Agriculture — 2.6%
| | | | | | | | |
| Philip Morris International, Inc. | | | 408 | | | | 34,125 | |
Apparel — 2.2%
| | | | | | | | |
| NIKE, Inc., Class B | | | 548 | | | | 28,277 | |
Auto Manufacturers — 2.3%
| | | | | | | | |
| Volvo AB (Sweden)(a) | | | 2,224 | | | | 30,402 | |
Banks — 6.5%
| | | | | | | | |
| Banco Santander Chile (Chile)(a) | | | 1,514 | | | | 43,134 | |
| Bank of Nova Scotia (Canada) | | | 716 | | | | 41,442 | |
| Total Banks | | | | | | | 84,576 | |
Beverages — 3.2%
| | | | | | | | |
| Diageo PLC (United Kingdom)(a) | | | 362 | | | | 42,202 | |
Computers — 2.4%
| | | | | | | | |
| Apple, Inc. | | | 58 | | | | 30,916 | |
Distribution/Wholesale — 3.1%
| | | | | | | | |
| Genuine Parts Co. | | | 635 | | | | 40,373 | |
Electric — 1.9%
| | | | | | | | |
| NextEra Energy, Inc. | | | 364 | | | | 25,185 | |
Food — 3.0%
| | | | | | | | |
| H.J. Heinz Co. | | | 682 | | | | 39,338 | |
Iron/Steel — 2.5%
| | | | | | | | |
| Vale SA, Class B (Brazil)(a) | | | 1,545 | | | | 32,383 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
GLOBAL ALPHA & BETA ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Oil & Gas — 7.3%
| | | | | | | | |
| Ecopetrol SA (Colombia)(a) | | | 442 | | | $ | 26,374 | |
| Statoil ASA (Norway)(a) | | | 1,592 | | | | 39,864 | |
| Suncor Energy, Inc. | | | 866 | | | | 28,561 | |
| Total Oil & Gas | | | | | | | 94,799 | |
Pharmaceuticals — 10.1%
| | | | | | | | |
| Johnson & Johnson | | | 548 | | | | 38,415 | |
| Novartis AG (Switzerland)(a) | | | 664 | | | | 42,031 | |
| Novo Nordisk A/S (Denmark)(a) | | | 168 | | | | 27,419 | |
| Teva Pharmaceutical Industries Ltd. (Israel)(a) | | | 630 | | | | 23,524 | |
| Total Pharmaceuticals | | | | | | | 131,389 | |
Pipelines — 2.8%
| | | | | | | | |
| Kinder Morgan Energy Partners, LP | | | 452 | | | | 36,065 | |
Savings & Loans — 1.9%
| | | | | | | | |
| Brookline Bancorp, Inc. | | | 2,961 | | | | 25,168 | |
Semiconductors — 2.0%
| | | | | | | | |
| KLA-Tencor Corp. | | | 542 | | | | 25,886 | |
Total Common Stocks
(Cost $697,265) | | | | | | | 740,416 | |
EXCHANGE TRADED FUNDS — 33.9%
| | | | | | | | |
Commodity Fund — 2.0%
| | | | | | | | |
| PowerShares DB Gold Fund* | | | 450 | | | | 25,807 | |
Equity Fund — 31.9%
| | | | | | | | |
| Consumer Discretionary Select Sector SPDR Fund | | | 852 | | | | 40,410 | |
| First Trust NASDAQ Technology Dividend Index Fund | | | 4,997 | | | | 96,542 | |
| Global X Fertilizers/Potash ETF | | | 1,900 | | | | 26,676 | |
| iShares Dow Jones US Medical Devices Index Fund | | | 378 | | | | 25,553 | |
| iShares Dow Jones US Technology Sector Index Fund | | | 1,313 | | | | 92,855 | |
| iShares S&P Emerging Markets Infrastructure Index Fund | | | 774 | | | | 26,417 | |
| iShares S&P Global Materials Sector Index Fund | | | 472 | | | | 29,477 | |
| PowerShares Water Resources Portfolio | | | 1,352 | | | | 28,054 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
GLOBAL ALPHA & BETA ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Equity Fund — 31.9% (continued)
| | | | | | | | |
| Vanguard Telecommunication Services ETF | | | 716 | | | $ | 50,127 | |
| Total Equity Fund | | | | | | | 416,111 | |
Total Exchange Traded Funds
(Cost $427,863) | | | | | | | 441,918 | |
MONEY MARKET FUND — 10.6%
| | | | | | | | |
Wells Fargo Advantage Government Money Market
Fund – Institutional Class
(Cost $137,951) | | | 137,951 | | | | 137,951 | |
Total Investments — 101.3%
(Cost $1,263,079) | | | | | | | 1,320,285 | |
| Liabilities in Excess of Other Assets — (1.3)% | | | | | | | (16,926 | ) |
| Net Assets — 100.0% | | | | | | $ | 1,303,359 | |
ETF — Exchange Traded Fund
| (a) | American Depositary Receipt |
| * | Non-income producing security |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Aerospace/Defense | | | 3.0 | % |
| Agriculture | | | 2.6 | |
| Apparel | | | 2.2 | |
| Auto Manufacturers | | | 2.3 | |
| Banks | | | 6.5 | |
| Beverages | | | 3.2 | |
| Commodity Fund | | | 2.0 | |
| Computers | | | 2.4 | |
| Distribution/Wholesale | | | 3.1 | |
| Electric | | | 1.9 | |
| Equity Fund | | | 31.9 | |
| Food | | | 3.0 | |
| Iron/Steel | | | 2.5 | |
| Oil & Gas | | | 7.3 | |
| Pharmaceuticals | | | 10.1 | |
| Pipelines | | | 2.8 | |
| Savings & Loans | | | 1.9 | |
| Semiconductors | | | 2.0 | |
| Money Market Fund | | | 10.6 | |
| Total Investments | | | 101.3 | |
| Liabilities in Excess of Other Assets | | | (1.3 ) | |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
COMMON STOCKS — 46.5%
| | | | | | | | |
Auto Parts & Equipment — 1.6%
| | | | | | | | |
| Johnson Controls, Inc. | | | 2,682 | | | $ | 82,337 | |
Banks — 1.2%
| | | | | | | | |
| Banco Bradesco SA (Brazil)(a) | | | 2,032 | | | | 35,296 | |
| City National Corp. | | | 517 | | | | 25,602 | |
| Total Banks | | | | | | | 60,898 | |
Biotechnology — 3.1%
| | | | | | | | |
| Illumina, Inc.* | | | 531 | | | | 29,518 | |
| Life Technologies Corp.* | | | 930 | | | | 45,645 | |
| Novozymes A/S (Denmark)(a) | | | 2,994 | | | | 84,730 | |
| Total Biotechnology | | | | | | | 159,893 | |
Building Materials — 0.7%
| | | | | | | | |
| Toto Ltd. (Japan)(a) | | | 2,415 | | | | 36,008 | |
Commercial Services — 1.6%
| | | | | | | | |
| Automatic Data Processing, Inc. | | | 697 | | | | 39,736 | |
| MasterCard, Inc., Class A | | | 88 | | | | 43,233 | |
| Total Commercial Services | | | | | | | 82,969 | |
Computers — 3.4%
| | | | | | | | |
| Apple, Inc. | | | 104 | | | | 55,435 | |
| EMC Corp.* | | | 1,411 | | | | 35,698 | |
| Maxwell Technologies, Inc.* | | | 3,578 | | | | 29,662 | |
| Stratasys Ltd.* | | | 381 | | | | 30,537 | |
| Teradata Corp.* | | | 350 | | | | 21,662 | |
| Total Computers | | | | | | | 172,994 | |
Cosmetics/Personal Care — 0.9%
| | | | | | | | |
| Procter & Gamble Co. (The) | | | 708 | | | | 48,066 | |
Distribution/Wholesale — 1.2%
| | | | | | | | |
| LKQ Corp.* | | | 2,960 | | | | 62,456 | |
Diversified Financial Services — 0.5%
| | | | | | | | |
| Wageworks, Inc.* | | | 1,307 | | | | 23,265 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Electric — 0.6%
| | | | | | | | |
| Enernoc, Inc.* | | | 2,551 | | | $ | 29,974 | |
Electronics — 0.7%
| | | | | | | | |
| Itron, Inc.* | | | 842 | | | | 37,511 | |
Engineering & Construction — 0.5%
| | | | | | | | |
| Aegion Corp., Class A* | | | 1,259 | | | | 27,937 | |
Environmental Control — 1.0%
| | | | | | | | |
| Stericycle, Inc.* | | | 283 | | | | 26,395 | |
| Tomra Systems ASA (Norway)(a) | | | 2,996 | | | | 27,264 | |
| Total Environmental Control | | | | | | | 53,659 | |
Food — 3.4%
| | | | | | | | |
| Hain Celestial Group, Inc. (The)* | | | 846 | | | | 45,870 | |
| Nestle SA (Switzerland)(a) | | | 631 | | | | 41,122 | |
| Smart Balance, Inc.* | | | 1,866 | | | | 24,071 | |
| United Natural Foods, Inc.* | | | 1,160 | | | | 62,165 | |
| Total Food | | | | | | | 173,228 | |
Healthcare – Products — 0.7%
| | | | | | | | |
| Covidien PLC (Ireland) | | | 615 | | | | 35,510 | |
Healthcare – Services — 0.7%
| | | | | | | | |
| Laboratory Corp. of America Holdings* | | | 401 | | | | 34,735 | |
Home Builders — 0.9%
| | | | | | | | |
| Daiwa House Industry Co. Ltd. (Japan)(a) | | | 281 | | | | 48,051 | |
Internet — 2.1%
| | | | | | | | |
| Amazon.com, Inc.* | | | 104 | | | | 26,119 | |
| F5 Networks, Inc.* | | | 335 | | | | 32,545 | |
| Google, Inc., Class A* | | | 70 | | | | 49,656 | |
| Total Internet | | | | | | | 108,320 | |
Machinery – Diversified — 0.7%
| | | | | | | | |
| Xylem, Inc. | | | 1,341 | | | | 36,341 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Miscellaneous Manufacturing — 1.0%
| | | | | | | | |
| Aptargroup, Inc. | | | 730 | | | $ | 34,836 | |
| Pure Technologies Ltd. (Canada)* | | | 3,746 | | | | 17,044 | |
| Total Miscellaneous Manufacturing | | | | | | | 51,880 | |
Office Furnishings — 0.6%
| | | | | | | | |
| Interface, Inc., | | | 1,832 | | | | 29,459 | |
Oil & Gas — 0.7%
| | | | | | | | |
| EnCana Corp. (Canada) | | | 1,742 | | | | 34,422 | |
Pharmaceuticals — 4.4%
| | | | | | | | |
| GlaxoSmithKline PLC (United Kingdom)(a) | | | 1,072 | | | | 46,600 | |
| Johnson & Johnson | | | 579 | | | | 40,588 | |
| Novartis AG (Switzerland)(a) | | | 880 | | | | 55,704 | |
| Perrigo Co. | | | 337 | | | | 35,058 | |
| Teva Pharmaceutical Industries Ltd. (Israel)(a) | | | 1,255 | | | | 46,861 | |
| Total Pharmaceuticals | | | | | | | 224,811 | |
Pipelines — 0.4%
| | | | | | | | |
| Kinder Morgan, Inc. | | | 619 | | | | 21,869 | |
Real Estate Investment Trusts — 1.1%
| | | | | | | | |
| HCP, Inc. | | | 577 | | | | 26,069 | |
| Prologis, Inc. | | | 770 | | | | 28,097 | |
| Total Real Estate Investment Trusts | | | | | | | 54,166 | |
Retail — 2.1%
| | | | | | | | |
| CVS Caremark Corp. | | | 1,050 | | | | 50,768 | |
| Home Depot, Inc. (The) | | | 517 | | | | 31,976 | |
| J.C. Penney Co., Inc. | | | 1,197 | | | | 23,593 | |
| Total Retail | | | | | | | 106,337 | |
Semiconductors — 1.8%
| | | | | | | | |
| Cree, Inc.* | | | 960 | | | | 32,621 | |
| First Solar, Inc.* | | | 968 | | | | 29,892 | |
| NXP Semiconductor NV (Netherlands)* | | | 1,191 | | | | 31,406 | |
| Total Semiconductors | | | | | | | 93,919 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Software — 0.7%
| | | | | | | | |
| Adobe Systems, Inc.* | | | 665 | | | $ | 25,057 | |
| Fiserv, Inc.* | | | 160 | | | | 12,645 | |
| Total Software | | | | | | | 37,702 | |
Telecommunications — 4.5%
| | | | | | | | |
| Cisco Systems, Inc. | | | 3,596 | | | | 70,661 | |
| Corning, Inc. | | | 1,796 | | | | 22,666 | |
| IPG Photonics Corp. | | | 473 | | | | 31,525 | |
| Telefonica Brasil SA (Brazil)(a) | | | 1,293 | | | | 31,110 | |
| Telenor ASA (Norway)(a) | | | 1,229 | | | | 74,649 | |
| Total Telecommunications | | | | | | | 230,611 | |
Transportation — 1.6%
| | | | | | | | |
| Canadian National Railway Co. (Canada) | | | 569 | | | | 51,784 | |
| Union Pacific Corp. | | | 247 | | | | 31,053 | |
| Total Transportation | | | | | | | 82,837 | |
Water — 2.1%
| | | | | | | | |
| American Water Works Co., Inc. | | | 1,219 | | | | 45,262 | |
| Severn Trent PLC (United Kingdom)(a) | | | 2,445 | | | | 62,506 | |
| Total Water | | | | | | | 107,768 | |
Total Common Stocks
(Cost $2,279,795) | | | | | | | 2,389,933 | |
MONEY MARKET FUNDS — 9.1%
| | | | | | | | |
| Federated Government Obligations Fund | | | 39,947 | | | | 39,947 | |
| Fidelity Institutional Money Market Government Portfolio – Class I | | | 208,932 | | | | 208,932 | |
| Fidelity Institutional Money Market Portfolio – Institutional Class | | | 219,661 | | | | 219,661 | |
Total Money Market Funds
(Cost $468,540) | | | | | | | 468,540 | |
COMMERCIAL MORTGAGE BACKED SECURITIES — 8.6%
| | | | | | | | |
Government National Mortgage Association, Class AC,
Series 2011-109, 3.25%, 04/16/43 | | | 250,000 | | | | 271,345 | |
Government National Mortgage Association, Class B,
Series 2011-64, 4.00%@, 10/16/44 | | | 150,000 | | | | 167,964 | |
Total Commercial Mortgage Backed Securities
(Cost $432,568) | | | | | | | 439,309 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
ASSET BACKED SECURITIES — 8.7%
| | | | | | | | |
| SBAP 2007 – 20F 1, 5.71%, 06/01/27 | | | 158,219 | | | $ | 185,064 | |
| SBAP 2009 – 20H 1, 4.45%, 08/01/29 | | | 235,454 | | | | 262,082 | |
Total Asset Backed Securities
(Cost $447,213) | | | | | | | 447,146 | |
MUNICIPAL BONDS — 3.3%
| | | | | | | | |
Tippecanoe County School Building Corp., Revenue Bonds,
(State Aid Withholding) 4.54%, 01/15/17
(Cost $167,171) | | | 150,000 | | | | 167,085 | |
EXCHANGE TRADED FUNDS — 23.6%
| | | | | | | | |
Equity Fund — 23.6%
| | | | | | | | |
| First Trust ISE Global Wind Energy Index Fund | | | 3,398 | | | | 23,582 | |
| Global X Lithium ETF | | | 951 | | | | 13,675 | |
| Guggenheim S&P Global Water Index ETF | | | 2,060 | | | | 45,806 | |
| iShares MSCI Kld 400 Social Index Fund | | | 2,402 | | | | 124,280 | |
| Pax MSCI EAFE Esg Index ETF | | | 997 | | | | 24,437 | |
| PowerShares Cleantech Portfolio | | | 2,577 | | | | 59,580 | |
| PowerShares Global Clean Energy Portfolio | | | 9,697 | | | | 76,509 | |
| PowerShares Water Resources Portfolio | | | 3,296 | | | | 68,392 | |
| PowerShares Wilderhill Clean Energy Portfolio | | | 5,051 | | | | 20,608 | |
| Proshares Short 20+ Year Treasury* | | | 300 | | | | 8,814 | |
| Proshares Short FTSE China 25* | | | 100 | | | | 3,550 | |
| Proshares Short QQQ* | | | 2,200 | | | | 56,254 | |
| Ranger Equity Bear ETF*† | | | 843 | | | | 15,410 | |
| SPDR Barclays Capital 1 – 3 Month T-Bill ETF* | | | 14,676 | | | | 672,308 | |
Total Exchange Traded Funds
(Cost $1,203,816) | | | | | | | 1,213,205 | |
Total Investments — 99.8%
(Cost $4,999,103) | | | | | | | 5,125,218 | |
| Other Assets in Excess of Liabilities — 0.2% | | | | | | | 12,606 | |
| Net Assets — 100.0% | | | | | | $ | 5,137,824 | |
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 December 31, 2012. |
| † | Affiliated company (See Note 8). |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Asset Backed Securities | | | 8.7 | % |
| Auto Parts & Equipment | | | 1.6 | |
| Banks | | | 1.2 | |
| Biotechnology | | | 3.1 | |
| Building Materials | | | 0.7 | |
| Commercial Mortgage Backed Securities | | | 8.6 | |
| Commercial Services | | | 1.6 | |
| Computers | | | 3.4 | |
| Cosmetics/Personal Care | | | 0.9 | |
| Distribution/Wholesale | | | 1.2 | |
| Diversified Financial Services | | | 0.5 | |
| Electric | | | 0.6 | |
| Electronics | | | 0.7 | |
| Engineering & Construction | | | 0.5 | |
| Environmental Control | | | 1.0 | |
| Equity Fund | | | 23.6 | |
| Food | | | 3.4 | |
| Healthcare – Products | | | 0.7 | |
| Healthcare – Services | | | 0.7 | |
| Home Builders | | | 0.9 | |
| Internet | | | 2.1 | |
| Machinery – Diversified | | | 0.7 | |
| Miscellaneous Manufacturing | | | 1.0 | |
| Municipal Bonds | | | 3.3 | |
| Office Furnishings | | | 0.6 | |
| Oil & Gas | | | 0.7 | |
| Pharmaceuticals | | | 4.4 | |
| Pipelines | | | 0.4 | |
| Real Estate Investment Trusts | | | 1.1 | |
| Retail | | | 2.1 | |
| Semiconductors | | | 1.8 | |
| Software | | | 0.7 | |
| Telecommunications | | | 4.5 | |
| Transportation | | | 1.6 | |
| Water | | | 2.1 | |
| Money Market Fund | | | 9.1 | |
| Total Investments | | | 99.8 | |
| Other Assets in Excess of Liabilities | | | 0.2 | |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
COMMON STOCKS — 99.7%
| | | | | | | | |
Advertising — 0.6%
| | | | | | | | |
| Interpublic Group of Cos., Inc. (The) | | | 4,857 | | | $ | 53,524 | |
| Omnicom Group, Inc. | | | 625 | | | | 31,225 | |
| Total Advertising | | | | | | | 84,749 | |
Aerospace/Defense — 1.4%
| | | | | | | | |
| Boeing Co. (The) | | | 358 | | | | 26,979 | |
| General Dynamics Corp. | | | 568 | | | | 39,345 | |
| L-3 Communications Holdings, Inc. | | | 131 | | | | 10,037 | |
| Lockheed Martin Corp. | | | 226 | | | | 20,858 | |
| Northrop Grumman Corp. | | | 120 | | | | 8,110 | |
| Raytheon Co. | | | 656 | | | | 37,759 | |
| Rockwell Collins, Inc. | | | 503 | | | | 29,260 | |
| United Technologies Corp. | | | 436 | | | | 35,756 | |
| Total Aerospace/Defense | | | | | | | 208,104 | |
Agriculture — 0.8%
| | | | | | | | |
| Altria Group, Inc. | | | 571 | | | | 17,941 | |
| Archer-Daniels-Midland Co. | | | 1,371 | | | | 37,552 | |
| Lorillard, Inc. | | | 240 | | | | 28,001 | |
| Philip Morris International, Inc. | | | 254 | | | | 21,244 | |
| Reynolds American, Inc. | | | 419 | | | | 17,359 | |
| Total Agriculture | | | | | | | 122,097 | |
Airlines — 0.4%
| | | | | | | | |
| Southwest Airlines Co. | | | 6,674 | | | | 68,342 | |
| Apparel — 0.9% | | | | | | | | |
| Coach, Inc. | | | 887 | | | | 49,237 | |
| Nike, Inc., Class B | | | 603 | | | | 31,115 | |
| Ralph Lauren Corp. | | | 188 | | | | 28,185 | |
| VF Corp. | | | 206 | | | | 31,100 | |
| Total Apparel | | | | | | | 139,637 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Auto Manufacturers — 0.6%
| | | | | | | | |
| Ford Motor Co. | | | 3,571 | | | $ | 46,245 | |
| PACCAR, Inc. | | | 858 | | | | 38,790 | |
| Total Auto Manufacturers | | | | | | | 85,035 | |
Auto Parts & Equipment — 1.3%
| | | | | | | | |
| BorgWarner, Inc.* | | | 842 | | | | 60,304 | |
| Goodyear Tire & Rubber Co. (The)* | | | 4,824 | | | | 66,619 | |
| Johnson Controls, Inc. | | | 2,220 | | | | 68,154 | |
| Total Auto Parts & Equipment | | | | | | | 195,077 | |
Banks — 5.6%
| | | | | | | | |
| Bank of America Corp. | | | 2,848 | | | | 33,037 | |
| Bank of New York Mellon Corp. (The) | | | 1,792 | | | | 46,054 | |
| BB&T Corp. | | | 1,477 | | | | 42,996 | |
| Capital One Financial Corp. | | | 870 | | | | 50,399 | |
| Citigroup, Inc. | | | 1,485 | | | | 58,747 | |
| Comerica, Inc. | | | 1,425 | | | | 43,235 | |
| Fifth Third Bancorp | | | 1,858 | | | | 28,223 | |
| First Horizon National Corp. | | | 4,651 | | | | 46,091 | |
| Goldman Sachs Group, Inc. (The) | | | 340 | | | | 43,370 | |
| Huntington Bancshares, Inc. | | | 2,851 | | | | 18,218 | |
| JPMorgan Chase & Co. | | | 661 | | | | 29,064 | |
| KeyCorp | | | 2,241 | | | | 18,869 | |
| M&T Bank Corp. | | | 352 | | | | 34,661 | |
| Morgan Stanley | | | 2,869 | | | | 54,855 | |
| Northern Trust Corp. | | | 817 | | | | 40,981 | |
| PNC Financial Services Group, Inc. | | | 257 | | | | 14,986 | |
| Regions Financial Corp. | | | 4,915 | | | | 34,995 | |
| State Street Corp. | | | 1,142 | | | | 53,685 | |
| SunTrust Banks, Inc. | | | 1,957 | | | | 55,481 | |
| US Bancorp | | | 901 | | | | 28,778 | |
| Wells Fargo & Co. | | | 1,233 | | | | 42,144 | |
| Zions Bancorporation | | | 1,317 | | | | 28,184 | |
| Total Banks | | | | | | | 847,053 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Beverages — 1.1%
| | | | | | | | |
| Beam, Inc. | | | 322 | | | $ | 19,671 | |
| Brown-Forman Corp., Class B | | | 259 | | | | 16,382 | |
| Coca-Cola Co. (The) | | | 401 | | | | 14,536 | |
| Coca-Cola Enterprises, Inc. | | | 703 | | | | 22,306 | |
| Constellation Brands, Inc., Class A* | | | 790 | | | | 27,958 | |
| Dr Pepper Snapple Group, Inc. | | | 496 | | | | 21,913 | |
| Molson Coors Brewing Co., Class B | | | 260 | | | | 11,126 | |
| Monster Beverage Corp.* | | | 549 | | | | 29,031 | |
| PepsiCo, Inc. | | | 150 | | | | 10,265 | |
| Total Beverages | | | | | | | 173,188 | |
Biotechnology — 1.5%
| | | | | | | | |
| Alexion Pharmaceuticals, Inc.* | | | 207 | | | | 19,419 | |
| Amgen, Inc. | | | 381 | | | | 32,888 | |
| Biogen Idec, Inc.* | | | 179 | | | | 26,254 | |
| Celgene Corp.* | | | 710 | | | | 55,891 | |
| Gilead Sciences, Inc.* | | | 708 | | | | 52,003 | |
| Life Technologies Corp.* | | | 729 | | | | 35,779 | |
| Total Biotechnology | | | | | | | 222,234 | |
Building Materials — 0.1%
| | | | | | | | |
| Masco Corp. | | | 628 | | | | 10,462 | |
Chemicals — 2.9%
| | | | | | | | |
| Air Products & Chemicals, Inc. | | | 378 | | | | 31,760 | |
| Airgas, Inc. | | | 429 | | | | 39,163 | |
| CF Industries Holdings, Inc. | | | 41 | | | | 8,330 | |
| Dow Chemical Co. (The) | | | 1,279 | | | | 41,337 | |
| E.I. du Pont de Nemours & Co. | | | 536 | | | | 24,104 | |
| Eastman Chemical Co. | | | 907 | | | | 61,721 | |
| Ecolab, Inc. | | | 549 | | | | 39,473 | |
| FMC Corp. | | | 549 | | | | 32,127 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Chemicals — 2.9% (continued)
| | | | | | | | |
| International Flavors & Fragrances, Inc. | | | 271 | | | $ | 18,032 | |
| Monsanto Co. | | | 217 | | | | 20,539 | |
| Mosaic Co. (The) | | | 592 | | | | 33,525 | |
| PPG Industries, Inc. | | | 169 | | | | 22,874 | |
| Praxair, Inc. | | | 235 | | | | 25,721 | |
| Sherwin-Williams Co. (The) | | | 152 | | | | 23,381 | |
| Sigma-Aldrich Corp. | | | 196 | | | | 14,422 | |
| Total Chemicals | | | | | | | 436,509 | |
Commercial Services — 3.4%
| | | | | | | | |
| Apollo Group, Inc., Class A* | | | 1,830 | | | | 38,284 | |
| Automatic Data Processing, Inc. | | | 267 | | | | 15,222 | |
| Equifax, Inc. | | | 541 | | | | 29,279 | |
| H&R Block, Inc. | | | 2,801 | | | | 52,015 | |
| Iron Mountain, Inc. | | | 470 | | | | 14,594 | |
| MasterCard, Inc., Class A | | | 87 | | | | 42,741 | |
| Moody's Corp. | | | 925 | | | | 46,546 | |
| Paychex, Inc. | | | 474 | | | | 14,760 | |
| Quanta Services, Inc.* | | | 1,517 | | | | 41,399 | |
| Robert Half International, Inc. | | | 2,011 | | | | 63,990 | |
| RR Donnelley & Sons Co. | | | 875 | | | | 7,875 | |
| SAIC, Inc. | | | 4,395 | | | | 49,751 | |
| Total System Services, Inc. | | | 946 | | | | 20,263 | |
| Visa, Inc., Class A | | | 316 | | | | 47,899 | |
| Western Union Co. (The) | | | 2,731 | | | | 37,169 | |
| Total Commercial Services | | | | | | | 521,787 | |
Computers — 2.9%
| | | | | | | | |
| Apple, Inc. | | | 92 | | | | 49,039 | |
| Cognizant Technology Solutions Corp., Class A* | | | 666 | | | | 49,317 | |
| Computer Sciences Corp. | | | 898 | | | | 35,965 | |
| Dell, Inc. | | | 5,607 | | | | 56,799 | |
| EMC Corp.* | | | 1,923 | | | | 48,652 | |
| International Business Machines Corp. | | | 168 | | | | 32,180 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Computers — 2.9% (continued)
| | | | | | | | |
| NetApp, Inc.* | | | 1,527 | | | $ | 51,231 | |
| SanDisk Corp.* | | | 588 | | | | 25,613 | |
| Teradata Corp.* | | | 287 | | | | 17,762 | |
| Western Digital Corp. | | | 1,601 | | | | 68,027 | |
| Total Computers | | | | | | | 434,585 | |
Cosmetics/Personal Care — 0.3%
| | | | | | | | |
| Colgate-Palmolive Co. | | | 126 | | | | 13,172 | |
| Estee Lauder Cos., Inc. (The), Class A | | | 325 | | | | 19,455 | |
| Procter & Gamble Co. (The) | | | 187 | | | | 12,695 | |
| Total Cosmetics/Personal Care | | | | | | | 45,322 | |
Distribution/Wholesale — 0.9%
| | | | | | | | |
| Fastenal Co. | | | 465 | | | | 21,711 | |
| Fossil, Inc.* | | | 655 | | | | 60,980 | |
| Genuine Parts Co. | | | 320 | | | | 20,346 | |
| W.W. Grainger, Inc. | | | 144 | | | | 29,141 | |
| Total Distribution/Wholesale | | | | | | | 132,178 | |
Diversified Financial Services — 4.3%
| | | | | | | | |
| American Express Co. | | | 726 | | | | 41,731 | |
| Ameriprise Financial, Inc. | | | 988 | | | | 61,878 | |
| BlackRock, Inc. | | | 235 | | | | 48,577 | |
| Charles Schwab Corp. (The) | | | 1,765 | | | | 25,345 | |
| CME Group, Inc. | | | 308 | | | | 15,619 | |
| Discover Financial Services | | | 1,327 | | | | 51,156 | |
| E*Trade Financial Corp.* | | | 3,391 | | | | 30,349 | |
| Federated Investors, Inc., Class B | | | 1,229 | | | | 24,863 | |
| Franklin Resources, Inc. | | | 311 | | | | 39,093 | |
| IntercontinentalExchange, Inc.* | | | 241 | | | | 29,838 | |
| Invesco Ltd. (Bermuda) | | | 1,594 | | | | 41,588 | |
| Legg Mason, Inc. | | | 2,385 | | | | 61,342 | |
| NASDAQ OMX Group, Inc. (The) | | | 1,925 | | | | 48,144 | |
| NYSE Euronext | | | 1,785 | | | | 56,299 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Diversified Financial Services — 4.3% (continued)
| | | | | | | | |
| SLM Corp. | | | 3,231 | | | $ | 55,347 | |
| T. Rowe Price Group, Inc. | | | 461 | | | | 30,025 | |
| Total Diversified Financial Services | | | | | | | 661,194 | |
Electric — 1.7%
| | | | | | | | |
| AES Corp. (The) | | | 4,421 | | | | 47,305 | |
| American Electric Power Co., Inc. | | | 157 | | | | 6,701 | |
| CMS Energy Corp. | | | 541 | | | | 13,190 | |
| Consolidated Edison, Inc. | | | 118 | | | | 6,554 | |
| Dominion Resources, Inc. | | | 207 | | | | 10,723 | |
| DTE Energy Co. | | | 172 | | | | 10,329 | |
| Duke Energy Corp. | | | 118 | | | | 7,528 | |
| Edison International | | | 123 | | | | 5,558 | |
| Entergy Corp. | | | 158 | | | | 10,073 | |
| Integrys Energy Group, Inc. | | | 185 | | | | 9,661 | |
| NextEra Energy, Inc. | | | 171 | | | | 11,831 | |
| Northeast Utilities | | | 338 | | | | 13,209 | |
| NRG Energy, Inc. | | | 769 | | | | 17,679 | |
| Pepco Holdings, Inc. | | | 669 | | | | 13,119 | |
| PG&E Corp. | | | 200 | | | | 8,036 | |
| Pinnacle West Capital Corp. | | | 250 | | | | 12,745 | |
| Public Service Enterprise Group, Inc. | | | 195 | | | | 5,967 | |
| SCANA Corp. | | | 181 | | | | 8,261 | |
| Southern Co. (The) | | | 236 | | | | 10,103 | |
| TECO Energy, Inc. | | | 457 | | | | 7,659 | |
| Wisconsin Energy Corp. | | | 279 | | | | 10,281 | |
| Xcel Energy, Inc. | | | 437 | | | | 11,672 | |
| Total Electric | | | | | | | 258,184 | |
Electrical Components & Equipment — 0.5%
| | | | | | | | |
| Emerson Electric Co. | | | 896 | | | | 47,452 | |
| Molex, Inc. | | | 1,057 | | | | 28,888 | |
| Total Electrical Components & Equipment | | | | | | | 76,340 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Electronics — 2.2%
| | | | | | | | |
| Agilent Technologies, Inc. | | | 1,257 | | | $ | 51,462 | |
| Amphenol Corp., Class A | | | 687 | | | | 44,449 | |
| FLIR Systems, Inc. | | | 519 | | | | 11,579 | |
| Honeywell International, Inc. | | | 763 | | | | 48,428 | |
| Jabil Circuit, Inc. | | | 3,429 | | | | 66,145 | |
| PerkinElmer, Inc. | | | 1,322 | | | | 41,960 | |
| Thermo Fisher Scientific, Inc. | | | 807 | | | | 51,470 | |
| Waters Corp.* | | | 297 | | | | 25,875 | |
| Total Electronics | | | | | | | 341,368 | |
Engineering & Construction — 0.6%
| | | | | | | | |
| Fluor Corp. | | | 732 | | | | 42,998 | |
| Jacobs Engineering Group, Inc.* | | | 1,237 | | | | 52,659 | |
| Total Engineering & Construction | | | | | | | 95,657 | |
Entertainment — 0.3%
| | | | | | | | |
| International Game Technology | | | 3,779 | | | | 53,548 | |
Environmental Control — 0.4%
| | | | | | | | |
| Republic Services, Inc. | | | 728 | | | | 21,352 | |
| Stericycle, Inc.* | | | 263 | | | | 24,530 | |
| Waste Management, Inc. | | | 387 | | | | 13,058 | |
| Total Environmental Control | | | | | | | 58,940 | |
Food — 2.8%
| | | | | | | | |
| Campbell Soup Co. | | | 320 | | | | 11,165 | |
| ConAgra Foods, Inc. | | | 664 | | | | 19,588 | |
| Dean Foods Co.* | | | 3,680 | | | | 60,757 | |
| General Mills, Inc. | | | 425 | | | | 17,174 | |
| H.J. Heinz Co. | | | 259 | | | | 14,939 | |
| Hershey Co. (The) | | | 226 | | | | 16,322 | |
| Hormel Foods Corp. | | | 996 | | | | 31,085 | |
| JM Smucker Co. (The) | | | 198 | | | | 17,076 | |
| Kellogg Co. | | | 315 | | | | 17,593 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Food — 2.8% (continued)
| | | | | | | | |
| Kraft Foods Group, Inc. | | | 254 | | | $ | 11,549 | |
| Kroger Co. (The) | | | 1,781 | | | | 46,342 | |
| McCormick & Co., Inc. | | | 244 | | | | 15,501 | |
| Mondelez International, Inc., Class A | | | 781 | | | | 19,892 | |
| Safeway, Inc. | | | 3,436 | | | | 62,157 | |
| Sysco Corp. | | | 602 | | | | 19,059 | |
| Tyson Foods, Inc., Class A | | | 1,636 | | | | 31,738 | |
| Whole Foods Market, Inc. | | | 221 | | | | 20,184 | |
| Total Food | | | | | | | 432,121 | |
Forest Products & Paper — 0.3%
| | | | | | | | |
| International Paper Co. | | | 637 | | | | 25,378 | |
| MeadWestvaco Corp. | | | 533 | | | | 16,987 | |
| Total Forest Products & Paper | | | | | | | 42,365 | |
Gas — 0.3%
| | | | | | | | |
| AGL Resources, Inc. | | | 242 | | | | 9,673 | |
| CenterPoint Energy, Inc. | | | 453 | | | | 8,720 | |
| NiSource, Inc. | | | 804 | | | | 20,012 | |
| Sempra Energy | | | 117 | | | | 8,300 | |
| Total Gas | | | | | | | 46,705 | |
Hand/Machine Tools — 0.5%
| | | | | | | | |
| Snap-On, Inc. | | | 425 | | | | 33,571 | |
| Stanley Black & Decker, Inc. | | | 555 | | | | 41,053 | |
| Total Hand/Machine Tools | | | | | | | 74,624 | |
Healthcare – Products — 2.7%
| | | | | | | | |
| Baxter International, Inc. | | | 398 | | | | 26,531 | |
| Becton Dickinson and Co. | | | 249 | | | | 19,469 | |
| Boston Scientific Corp.* | | | 3,438 | | | | 19,700 | |
| C.R. Bard, Inc. | | | 217 | | | | 21,210 | |
| CareFusion Corp.* | | | 1,145 | | | | 32,724 | |
| DENTSPLY International, Inc. | | | 912 | | | | 36,124 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Healthcare – Products — 2.7% (continued)
| | | | | | | | |
| Edwards Lifesciences Corp.* | | | 328 | | | $ | 29,576 | |
| Hospira, Inc.* | | | 694 | | | | 21,681 | |
| Intuitive Surgical, Inc.* | | | 40 | | | | 19,615 | |
| Medtronic, Inc. | | | 420 | | | | 17,228 | |
| Patterson Cos., Inc. | | | 798 | | | | 27,315 | |
| St. Jude Medical, Inc. | | | 761 | | | | 27,502 | |
| Stryker Corp. | | | 710 | | | | 38,922 | |
| Varian Medical Systems, Inc.* | | | 575 | | | | 40,388 | |
| Zimmer Holdings, Inc. | | | 615 | | | | 40,996 | |
| Total Healthcare – Products | | | | | | | 418,981 | |
Healthcare – Services — 3.0%
| | | | | | | | |
| Aetna, Inc. | | | 1,231 | | | | 56,995 | |
| Cigna Corp. | | | 1,057 | | | | 56,507 | |
| Coventry Health Care, Inc. | | | 595 | | | | 26,674 | |
| DaVita, Inc.* | | | 268 | | | | 29,622 | |
| Humana, Inc. | | | 536 | | | | 36,786 | |
| Laboratory Corp. of America Holdings* | | | 466 | | | | 40,365 | |
| Quest Diagnostics, Inc. | | | 587 | | | | 34,205 | |
| Tenet Healthcare Corp.* | | | 2,169 | | | | 70,427 | |
| UnitedHealth Group, Inc. | | | 931 | | | | 50,497 | |
| WellPoint, Inc. | | | 838 | | | | 51,051 | |
| Total Healthcare – Services | | | | | | | 453,129 | |
Home Builders — 0.6%
| | | | | | | | |
| DR Horton, Inc. | | | 582 | | | | 11,512 | |
| Lennar Corp., Class A | | | 315 | | | | 12,181 | |
| Pultegroup, Inc.* | | | 3,435 | | | | 62,380 | |
| Total Home Builders | | | | | | | 86,073 | |
Home Furnishings — 0.4%
| | | | | | | | |
| Harman International Industries, Inc. | | | 1,339 | | | | 59,773 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Household Products/Wares — 0.4%
| | | | | | | | |
| Avery Dennison Corp. | | | 696 | | | $ | 24,304 | |
| Clorox Co. (The) | | | 182 | | | | 13,326 | |
| Kimberly-Clark Corp. | | | 201 | | | | 16,971 | |
| Total Household Products/Wares | | | | | | | 54,601 | |
Housewares — 0.2%
| | | | | | | | |
| Newell Rubbermaid, Inc. | | | 1,690 | | | | 37,636 | |
Insurance — 5.6%
| | | | | | | | |
| Aflac, Inc. | | | 1,118 | | | | 59,388 | |
| Allstate Corp. (The) | | | 1,129 | | | | 45,352 | |
| American International Group, Inc.* | | | 1,634 | | | | 57,680 | |
| Aon PLC | | | 564 | | | | 31,358 | |
| Assurant, Inc. | | | 1,364 | | | | 47,331 | |
| Berkshire Hathaway, Inc., Class B* | | | 104 | | | | 9,329 | |
| Chubb Corp. (The) | | | 351 | | | | 26,437 | |
| Cincinnati Financial Corp. | | | 268 | | | | 10,495 | |
| Genworth Financial, Inc., Class A* | | | 10,764 | | | | 80,838 | |
| Hartford Financial Services Group, Inc. (The) | | | 2,749 | | | | 61,688 | |
| Lincoln National Corp. | | | 2,362 | | | | 61,176 | |
| Marsh & McLennan Cos., Inc. | | | 850 | | | | 29,299 | |
| MetLife, Inc. | | | 1,672 | | | | 55,076 | |
| Principal Financial Group, Inc. | | | 2,099 | | | | 59,863 | |
| Progressive Corp. (The) | | | 760 | | | | 16,036 | |
| Prudential Financial, Inc. | | | 1,021 | | | | 54,450 | |
| Torchmark Corp. | | | 919 | | | | 47,485 | |
| Travelers Cos., Inc. (The) | | | 660 | | | | 47,401 | |
| Unum Group | | | 2,824 | | | | 58,796 | |
| Total Insurance | | | | | | | 859,478 | |
Internet — 2.4%
| | | | | | | | |
| Amazon.com, Inc.* | | | 30 | | | | 7,534 | |
| eBay, Inc.* | | | 630 | | | | 32,143 | |
| Expedia, Inc. | | | 628 | | | | 38,591 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Internet — 2.4% (continued)
| | | | | | | | |
| F5 Networks, Inc.* | | | 461 | | | $ | 44,786 | |
| Google, Inc., Class A* | | | 61 | | | | 43,272 | |
| priceline.com, Inc.* | | | 82 | | | | 50,938 | |
| Symantec Corp.* | | | 1,934 | | | | 36,379 | |
| TripAdvisor, Inc.* | | | 1,119 | | | | 46,953 | |
| VeriSign, Inc.* | | | 553 | | | | 21,467 | |
| Yahoo! Inc.* | | | 2,306 | | | | 45,889 | |
| Total Internet | | | | | | | 367,952 | |
Iron/Steel — 0.8%
| | | | | | | | |
| Allegheny Technologies, Inc. | | | 1,558 | | | | 47,301 | |
| Cliffs Natural Resources, Inc. | | | 1,137 | | | | 43,843 | |
| Nucor Corp. | | | 325 | | | | 14,033 | |
| United States Steel Corp. | | | 537 | | | | 12,818 | |
| Total Iron/Steel | | | | | | | 117,995 | |
Leisure Time — 0.6%
| | | | | | | | |
| Carnival Corp. (Panama) | | | 756 | | | | 27,798 | |
| Harley-Davidson, Inc. | | | 1,173 | | | | 57,289 | |
| Total Leisure Time | | | | | | | 85,087 | |
Lodging — 0.9%
| | | | | | | | |
| Marriott International, Inc., Class A | | | 1,163 | | | | 43,345 | |
| Starwood Hotels & Resorts Worldwide, Inc. | | | 653 | | | | 37,456 | |
| Wynn Resorts Ltd. | | | 487 | | | | 54,783 | |
| Total Lodging | | | | | | | 135,584 | |
Machinery – Construction & Mining — 0.8%
| | | | | | | | |
| Caterpillar, Inc. | | | 688 | | | | 61,631 | |
| Joy Global, Inc. | | | 964 | | | | 61,484 | |
| Total Machinery – Construction & Mining | | | | | | | 123,115 | |
Machinery – Diversified — 1.7%
| | | | | | | | |
| Cummins, Inc. | | | 604 | | | | 65,443 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Machinery – Diversified — 1.7% (continued)
| | | | | | | | |
| Deere & Co. | | | 483 | | | $ | 41,741 | |
| Flowserve Corp. | | | 256 | | | | 37,581 | |
| Rockwell Automation, Inc. | | | 655 | | | | 55,013 | |
| Roper Industries, Inc. | | | 222 | | | | 24,749 | |
| Xylem, Inc. | | | 1,133 | | | | 30,704 | |
| Total Machinery – Diversified | | | | | | | 255,231 | |
Media — 3.5%
| | | | | | | | |
| Cablevision Systems Corp., Class A | | | 1,054 | | | | 15,747 | |
| CBS Corp., Class B | | | 1,378 | | | | 52,433 | |
| Comcast Corp., Class A | | | 1,067 | | | | 39,884 | |
| DIRECTV* | | | 1,135 | | | | 56,932 | |
| Discovery Communications, Inc., Class A* | | | 749 | | | | 47,547 | |
| Gannett Co., Inc. | | | 1,090 | | | | 19,631 | |
| McGraw-Hill Cos., Inc. (The) | | | 685 | | | | 37,449 | |
| News Corp., Class A | | | 2,125 | | | | 54,272 | |
| Scripps Networks Interactive, Inc., Class A | | | 547 | | | | 31,682 | |
| Time Warner Cable, Inc. | | | 500 | | | | 48,595 | |
| Time Warner, Inc. | | | 991 | | | | 47,400 | |
| Viacom, Inc., Class B | | | 958 | | | | 50,525 | |
| Walt Disney Co. (The) | | | 760 | | | | 37,840 | |
| Total Media | | | | | | | 539,937 | |
Metal Fabricate/Hardware — 0.3%
| | | | | | | | |
| Precision Castparts Corp. | | | 259 | | | | 49,060 | |
Mining — 0.6%
| | | | | | | | |
| Alcoa, Inc. | | | 1,832 | | | | 15,902 | |
| Freeport-McMoRan Copper & Gold, Inc. | | | 307 | | | | 10,499 | |
| Titanium Metals Corp. | | | 3,612 | | | | 59,634 | |
| Total Mining | | | | | | | 86,035 | |
Miscellaneous Manufacturing — 2.8%
| | | | | | | | |
| 3M Co. | | | 352 | | | | 32,683 | |
| Danaher Corp. | | | 635 | | | | 35,496 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Miscellaneous Manufacturing — 2.8% (continued)
| | | | | | | | |
| Dover Corp. | | | 956 | | | $ | 62,819 | |
| Eaton Corp. PLC (Ireland) | | | 1,117 | | | | 60,541 | |
| General Electric Co. | | | 1,661 | | | | 34,864 | |
| Illinois Tool Works, Inc. | | | 370 | | | | 22,500 | |
| Leggett & Platt, Inc. | | | 1,739 | | | | 47,336 | |
| Pall Corp. | | | 364 | | | | 21,935 | |
| Parker Hannifin Corp. | | | 186 | | | | 15,821 | |
| Pentair Ltd. (Switzerland) | | | 752 | | | | 36,961 | |
| Textron, Inc. | | | 2,305 | | | | 57,141 | |
| Total Miscellaneous Manufacturing | | | | | | | 428,097 | |
Office/Business Equipment — 0.2%
| | | | | | | | |
| Xerox Corp. | | | 5,291 | | | | 36,085 | |
Oil & Gas — 4.9%
| | | | | | | | |
| Anadarko Petroleum Corp. | | | 88 | | | | 6,539 | |
| Apache Corp. | | | 168 | | | | 13,188 | |
| Cabot Oil & Gas Corp. | | | 390 | | | | 19,399 | |
| CONSOL Energy, Inc. | | | 426 | | | | 13,675 | |
| Denbury Resources, Inc.* | | | 3,474 | | | | 56,279 | |
| Diamond Offshore Drilling, Inc. | | | 636 | | | | 43,223 | |
| EOG Resources, Inc. | | | 243 | | | | 29,352 | |
| EQT Corp. | | | 526 | | | | 31,023 | |
| Exxon Mobil Corp. | | | 84 | | | | 7,270 | |
| Helmerich & Payne, Inc. | | | 948 | | | | 53,097 | |
| Hess Corp. | | | 250 | | | | 13,240 | |
| Marathon Petroleum Corp. | | | 1,073 | | | | 67,599 | |
| Murphy Oil Corp. | | | 548 | | | | 32,633 | |
| Newfield Exploration Co.* | | | 415 | | | | 11,114 | |
| Noble Energy, Inc. | | | 144 | | | | 14,651 | |
| Peabody Energy Corp. | | | 903 | | | | 24,029 | |
| Phillips 66 | | | 1,163 | | | | 61,755 | |
| Pioneer Natural Resources Co. | | | 300 | | | | 31,977 | |
| QEP Resources, Inc. | | | 931 | | | | 28,181 | |
| Rowan Cos. PLC, Class A (United Kingdom)* | | | 1,774 | | | | 55,473 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Oil & Gas — 4.9% (continued)
| | | | | | | | |
| Tesoro Corp. | | | 1,544 | | | $ | 68,013 | |
| Valero Energy Corp. | | | 1,864 | | | | 63,600 | |
| Total Oil & Gas | | | | | | | 745,310 | |
Oil & Gas Services — 2.1%
| | | | | | | | |
| Baker Hughes, Inc. | | | 1,267 | | | | 51,744 | |
| Cameron International Corp.* | | | 1,014 | | | | 57,250 | |
| FMC Technologies, Inc.* | | | 1,134 | | | | 48,569 | |
| Halliburton Co. | | | 1,703 | | | | 59,077 | |
| National Oilwell Varco, Inc. | | | 705 | | | | 48,187 | |
| Schlumberger Ltd. (Curacao) | | | 723 | | | | 50,097 | |
| Total Oil & Gas Services | | | | | | | 314,924 | |
Packaging & Containers — 0.9%
| | | | | | | | |
| Ball Corp. | | | 961 | | | | 43,005 | |
| Bemis Co., Inc. | | | 469 | | | | 15,693 | |
| Owens-Illinois, Inc.* | | | 2,709 | | | | 57,620 | |
| Sealed Air Corp. | | | 1,536 | | | | 26,895 | |
| Total Packaging & Containers | | | | | | | 143,213 | |
Pharmaceuticals — 2.8%
| | | | | | | | |
| Abbott Laboratories | | | 364 | | | | 23,842 | |
| Allergan, Inc. | | | 275 | | | | 25,226 | |
| AmerisourceBergen Corp. | | | 1,085 | | | | 46,850 | |
| Bristol-Myers Squibb Co. | | | 253 | | | | 8,245 | |
| Cardinal Health, Inc. | | | 1,042 | | | | 42,909 | |
| Express Scripts Holding Co.* | | | 787 | | | | 42,498 | |
| Forest Laboratories, Inc.* | | | 178 | | | | 6,287 | |
| Johnson & Johnson | | | 257 | | | | 18,016 | |
| McKesson Corp. | | | 558 | | | | 54,104 | |
| Mead Johnson Nutrition Co. | | | 257 | | | | 16,934 | |
| Merck & Co., Inc. | | | 257 | | | | 10,521 | |
| Mylan, Inc.* | | | 2,139 | | | | 58,780 | |
| Perrigo Co. | | | 177 | | | | 18,413 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Pharmaceuticals — 2.8% (continued)
| | | | | | | | |
| Pfizer, Inc. | | | 296 | | | $ | 7,424 | |
| Watson Pharmaceuticals, Inc.* | | | 475 | | | | 40,850 | |
| Total Pharmaceuticals | | | | | | | 420,899 | |
Pipelines — 0.4%
| | | | | | | | |
| Kinder Morgan, Inc. | | | 694 | | | | 24,519 | |
| ONEOK, Inc. | | | 471 | | | | 20,135 | |
| Spectra Energy Corp. | | | 314 | | | | 8,598 | |
| Williams Cos., Inc. (The) | | | 399 | | | | 13,063 | |
| Total Pipelines | | | | | | | 66,315 | |
Real Estate — 0.3%
| | | | | | | | |
| CBRE Group, Inc.* | | | 2,366 | | | | 47,083 | |
Real Estate Investment Trust — 0.5%
| | | | | | | | |
| American Tower Corp., Class A | | | 201 | | | | 15,531 | |
| AvalonBay Communities, Inc. | | | 59 | | | | 8,000 | |
| Equity Residential | | | 122 | | | | 6,914 | |
| HCP, Inc. | | | 159 | | | | 7,183 | |
| Health Care REIT, Inc. | | | 96 | | | | 5,884 | |
| Host Hotels & Resorts, Inc. | | | 518 | | | | 8,117 | |
| Plum Creek Timber Co., Inc. | | | 140 | | | | 6,212 | |
| Public Storage | | | 48 | | | | 6,958 | |
| Simon Property Group, Inc. | | | 41 | | | | 6,482 | |
| Ventas, Inc. | | | 87 | | | | 5,630 | |
| Weyerhaeuser Co. | | | 223 | | | | 6,204 | |
| Total Real Estate Investment Trust | | | | | | | 83,115 | |
Retail — 8.9%
| | | | | | | | |
| Abercrombie & Fitch Co., Class A | | | 1,684 | | | | 80,782 | |
| AutoNation, Inc.* | | | 923 | | | | 36,643 | |
| AutoZone, Inc.* | | | 135 | | | | 47,848 | |
| Bed Bath & Beyond, Inc.* | | | 799 | | | | 44,672 | |
| Best Buy Co., Inc. | | | 1,044 | | | | 12,371 | |
| Big Lots, Inc.* | | | 1,568 | | | | 44,625 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Retail — 8.9% (continued)
| | | | | | | | |
| CarMax, Inc.* | | | 971 | | | $ | 36,451 | |
| Chipotle Mexican Grill, Inc.* | | | 102 | | | | 30,341 | |
| Costco Wholesale Corp. | | | 204 | | | | 20,149 | |
| CVS Caremark Corp. | | | 862 | | | | 41,678 | |
| Darden Restaurants, Inc. | | | 742 | | | | 33,442 | |
| Dollar Tree, Inc.* | | | 1,264 | | | | 51,268 | |
| Family Dollar Stores, Inc. | | | 644 | | | | 40,836 | |
| Gamestop Corp., Class A | | | 2,396 | | | | 60,116 | |
| Gap, Inc. (The) | | | 679 | | | | 21,076 | |
| Home Depot, Inc. (The) | | | 599 | | | | 37,048 | |
| J.C. Penney Co., Inc. | | | 1,338 | | | | 26,372 | |
| Kohl's Corp. | | | 1,031 | | | | 44,312 | |
| Lowe's Cos., Inc. | | | 1,209 | | | | 42,944 | |
| Ltd. Brands, Inc. | | | 704 | | | | 33,130 | |
| Macy's, Inc. | | | 1,278 | | | | 49,868 | |
| McDonald's Corp. | | | 216 | | | | 19,053 | |
| Nordstrom, Inc. | | | 660 | | | | 35,310 | |
| O'Reilly Automotive, Inc.* | | | 540 | | | | 48,287 | |
| PetSmart, Inc. | | | 603 | | | | 41,209 | |
| Ross Stores, Inc. | | | 628 | | | | 34,006 | |
| Staples, Inc. | | | 4,075 | | | | 46,455 | |
| Starbucks Corp. | | | 713 | | | | 38,231 | |
| Target Corp. | | | 661 | | | | 39,111 | |
| Tiffany & Co. | | | 650 | | | | 37,271 | |
| TJX Cos., Inc. (The) | | | 810 | | | | 34,385 | |
| Urban Outfitters, Inc.* | | | 1,010 | | | | 39,754 | |
| Walgreen Co. | | | 1,405 | | | | 51,999 | |
| Wal-Mart Stores, Inc. | | | 325 | | | | 22,175 | |
| Yum! Brands, Inc. | | | 357 | | | | 23,705 | |
| Total Retail | | | | | | | 1,346,923 | |
Savings & Loans — 0.2%
| | | | | | | | |
| People's United Financial, Inc. | | | 1,997 | | | | 24,144 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Semiconductors — 4.0%
| | | | | | | | |
| Altera Corp. | | | 1,089 | | | $ | 37,505 | |
| Analog Devices, Inc. | | | 930 | | | | 39,116 | |
| Applied Materials, Inc. | | | 1,273 | | | | 14,563 | |
| Broadcom Corp., Class A | | | 1,655 | | | | 54,963 | |
| Intel Corp. | | | 2,039 | | | | 42,065 | |
| KLA-Tencor Corp. | | | 928 | | | | 44,321 | |
| Lam Research Corp.* | | | 889 | | | | 32,120 | |
| Linear Technology Corp. | | | 950 | | | | 32,585 | |
| LSI Corp.* | | | 8,813 | | | | 62,396 | |
| Microchip Technology, Inc. | | | 694 | | | | 22,617 | |
| NVIDIA Corp. | | | 4,340 | | | | 53,339 | |
| QUALCOMM, Inc. | | | 665 | | | | 41,243 | |
| Teradyne, Inc.* | | | 4,104 | | | | 69,317 | |
| Texas Instruments, Inc. | | | 829 | | | | 25,649 | |
| Xilinx, Inc. | | | 996 | | | | 35,756 | |
| Total Semiconductors | | | | | | | 607,555 | |
Software — 3.9%
| | | | | | | | |
| Adobe Systems, Inc.* | | | 985 | | | | 37,115 | |
| Akamai Technologies, Inc.* | | | 716 | | | | 29,292 | |
| Autodesk, Inc.* | | | 1,488 | | | | 52,601 | |
| BMC Software, Inc.* | | | 909 | | | | 36,051 | |
| CA, Inc. | | | 1,859 | | | | 40,861 | |
| Cerner Corp.* | | | 354 | | | | 27,485 | |
| Citrix Systems, Inc.* | | | 488 | | | | 32,086 | |
| Dun & Bradstreet Corp. (The) | | | 475 | | | | 37,359 | |
| Electronic Arts, Inc.* | | | 3,900 | | | | 56,667 | |
| Fidelity National Information Services, Inc. | | | 1,415 | | | | 49,256 | |
| Fiserv, Inc.* | | | 542 | | | | 42,834 | |
| Intuit, Inc. | | | 519 | | | | 30,880 | |
| Microsoft Corp. | | | 1,426 | | | | 38,117 | |
| Oracle Corp. | | | 1,548 | | | | 51,579 | |
| Red Hat, Inc.* | | | 295 | | | | 15,623 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Software — 3.9% (continued)
| | | | | | | | |
| Salesforce.com, Inc.* | | | 65 | | | $ | 10,926 | |
| Total Software | | | | | | | 588,732 | |
Telecommunications — 2.1%
| | | | | | | | |
| AT&T, Inc. | | | 400 | | | | 13,484 | |
| Centurylink, Inc. | | | 227 | | | | 8,880 | |
| Cisco Systems, Inc. | | | 2,627 | | | | 51,621 | |
| Corning, Inc. | | | 2,176 | | | | 27,461 | |
| Crown Castle International Corp.* | | | 188 | | | | 13,566 | |
| Frontier Communications Corp. | | | 1,394 | | | | 5,966 | |
| Harris Corp. | | | 201 | | | | 9,841 | |
| JDS Uniphase Corp.* | | | 2,718 | | | | 36,802 | |
| Juniper Networks, Inc.* | | | 2,233 | | | | 43,923 | |
| MetroPCS Communications, Inc.* | | | 3,203 | | | | 31,838 | |
| Motorola Solutions, Inc. | | | 1,032 | | | | 57,462 | |
| Verizon Communications, Inc. | | | 376 | | | | 16,269 | |
| Total Telecommunications | | | | | | | 317,113 | |
Textiles — 0.2%
| | | | | | | | |
| Cintas Corp. | | | 609 | | | | 24,908 | |
Toys/Games/Hobbies — 0.3%
| | | | | | | | |
| Hasbro, Inc. | | | 566 | | | | 20,319 | |
| Mattel, Inc. | | | 575 | | | | 21,057 | |
| Total Toys/Games/Hobbies | | | | | | | 41,376 | |
Transportation — 2.1%
| | | | | | | | |
| C.H. Robinson Worldwide, Inc. | | | 513 | | | | 32,432 | |
| CSX Corp. | | | 2,392 | | | | 47,194 | |
| Expeditors International of Washington, Inc. | | | 517 | | | | 20,447 | |
| FedEx Corp. | | | 437 | | | | 40,082 | |
| Norfolk Southern Corp. | | | 782 | | | | 48,359 | |
| Ryder System, Inc. | | | 1,033 | | | | 51,578 | |
| Union Pacific Corp. | | | 409 | | | | 51,419 | |
| United Parcel Service, Inc., Class B | | | 347 | | | | 25,584 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Transportation — 2.1% (continued)
| | | | | | | | |
| Total Transportation | | | | | | $ | 317,095 | |
Total Common Stocks
(Cost $14,239,286) | | | | | | | 15,149,959 | |
| MONEY MARKET FUND — 0.5% | | | | | | | | |
Fidelity Institutional Prime Money Market Portfolio – Class I
(Cost $76,787) | | | 76,787 | | | | 76,787 | |
Total Investments — 100.2%
(Cost $14,316,073) | | | | | | | 15,226,746 | |
| Liabilities in Excess of Other Assets — (0.2)% | | | | | | | (27,600 | ) |
| Net Assets — 100.0% | | | | | | $ | 15,199,146 | |
| * | Non-income producing security |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Advertising | | | 0.6 | % |
| Aerospace/Defense | | | 1.4 | |
| Agriculture | | | 0.8 | |
| Airlines | | | 0.4 | |
| Apparel | | | 0.9 | |
| Auto Manufacturers | | | 0.6 | |
| Auto Parts & Equipment | | | 1.3 | |
| Banks | | | 5.6 | |
| Beverages | | | 1.1 | |
| Biotechnology | | | 1.5 | |
| Building Materials | | | 0.1 | |
| Chemicals | | | 2.9 | |
| Commercial Services | | | 3.4 | |
| Computers | | | 2.9 | |
| Cosmetics/Personal Care | | | 0.3 | |
| Distribution/Wholesale | | | 0.9 | |
| Diversified Financial Services | | | 4.3 | |
| Electric | | | 1.7 | |
| Electrical Components & Equipment | | | 0.5 | |
| Electronics | | | 2.2 | |
| Engineering & Construction | | | 0.6 | |
| Entertainment | | | 0.3 | |
| Environmental Control | | | 0.4 | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
| | |
| | % of
Net Assets |
| Food | | | 2.8 | % |
| Forest Products & Paper | | | 0.3 | |
| Gas | | | 0.3 | |
| Hand/Machine Tools | | | 0.5 | |
| Healthcare – Products | | | 2.7 | |
| Healthcare – Services | | | 3.0 | |
| Home Builders | | | 0.6 | |
| Home Furnishings | | | 0.4 | |
| Household Products/Wares | | | 0.4 | |
| Housewares | | | 0.2 | |
| Insurance | | | 5.6 | |
| Internet | | | 2.4 | |
| Iron/Steel | | | 0.8 | |
| Leisure Time | | | 0.6 | |
| Lodging | | | 0.9 | |
| Machinery – Construction & Mining | | | 0.8 | |
| Machinery – Diversified | | | 1.7 | |
| Media | | | 3.5 | |
| Metal Fabricate/Hardware | | | 0.3 | |
| Mining | | | 0.6 | |
| Miscellaneous Manufacturing | | | 2.8 | |
| Office/Business Equipment | | | 0.2 | |
| Oil & Gas | | | 4.9 | |
| Oil & Gas Services | | | 2.1 | |
| Packaging & Containers | | | 0.9 | |
| Pharmaceuticals | | | 2.8 | |
| Pipelines | | | 0.4 | |
| Real Estate | | | 0.3 | |
| Real Estate Investment Trust | | | 0.5 | |
| Retail | | | 8.9 | |
| Savings & Loans | | | 0.2 | |
| Semiconductors | | | 4.0 | |
| Software | | | 3.9 | |
| Telecommunications | | | 2.1 | |
| Textiles | | | 0.2 | |
| Toys/Games/Hobbies | | | 0.3 | |
| Transportation | | | 2.1 | |
| Money Market Fund | | | 0.5 | |
| Total Investments | | | 100.2 | |
| Liabilities in Excess of Other Assets | | | (0.2 ) | |
| Net Assets | | | 100.0 | % |
| | | | | | | | | | | | | | | | | |
See accompanying Notes to Schedule of Investments.
ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
EXCHANGE TRADED FUNDS — 99.0%
| | | | | | | | |
Asset Allocation Fund — 4.0%
| | | | | | | | |
| SPDR Barclays Capital Convertible Securities ETF | | | 23,014 | | | $ | 927,464 | |
Debt Fund — 90.1%
| | | | | | | | |
| iShares iBoxx $ High Yield Corporate Bond Fund | | | 12,387 | | | | 1,156,327 | |
| iShares iBoxx $ Investment Grade Corporate Bond Fund | | | 37,562 | | | | 4,544,626 | |
| iShares S&P/Citigroup International Treasury Bond Fund | | | 8,862 | | | | 911,900 | |
| Peritus High Yield ETF | | | 36,533 | | | | 1,829,207 | |
| PIMCO 1 – 5 Year US TIPS Index Fund | | | 16,942 | | | | 915,885 | |
| PowerShares Build America Bond Portfolio | | | 30,552 | | | | 923,893 | |
| PowerShares Emerging Markets Sovereign Debt Portfolio | | | 44,232 | | | | 1,391,096 | |
| PowerShares Insured National Municipal Bond Portfolio | | | 26,687 | | | | 687,190 | |
| PowerShares International Corporate Bond Portfolio | | | 54,930 | | | | 1,626,477 | |
| SPDR DB International Government Inflation-Protected | | | | | | | | |
| Bond ETF | | | 14,559 | | | | 925,079 | |
| Vanguard Intermediate-Term Government Bond ETF | | | 10,440 | | | | 682,776 | |
| Vanguard Long-Term Government Bond ETF | | | 8,964 | | | | 674,989 | |
| Vanguard Mortgage-Backed Securities ETF | | | 52,510 | | | | 2,743,122 | |
| Vanguard Short-Term Bond ETF | | | 5,712 | | | | 462,615 | |
| Vanguard Short-Term Government Bond ETF | | | 4,073 | | | | 248,005 | |
| WisdomTree Emerging Markets Corporate Bond Fund | | | 14,268 | | | | 1,152,997 | |
| Total Debt Fund | | | | | | | 20,876,184 | |
Equity Fund — 4.9%
| | | | | | | | |
| PowerShares Financial Preferred Portfolio | | | 61,485 | | | | 1,123,331 | |
Total Exchange Traded Funds
(Cost $21,932,557) | | | | | | | 22,926,979 | |
MONEY MARKET FUND — 1.0%
| | | | | | | | |
Fidelity Institutional Prime Money Market Portfolio – Class I
| | | | | | | | |
| (Cost $239,265) | | | 239,265 | | | | 239,265 | |
| Total Investments — 100.0% | | | | | | | | |
| (Cost $22,171,822) | | | | | | | 23,166,244 | |
Other Assets in Excess of Liabilities — 0.0%†
| | | | | | | 2,919 | |
| Net Assets — 100.0% | | | | | | $ | 23,169,163 | |
| ETF | — Exchange Traded Fund |
| TIPS | — Treasury Inflation Protected Securities |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Asset Allocation Fund | | | 4.0 | % |
| Debt Fund | | | 90.1 | |
| Equity Fund | | | 4.9 | |
| Money Market Fund | | | 1.0 | |
| Total Investments | | | 100.0 | |
| Other Assets in Excess of Liabilities | | | — | † |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
COMMON STOCKS — 99.2%
| | | | | | | | |
Advertising — 1.6%
| | | | | | | | |
| Focus Media Holding Ltd. (China)(a) | | | 3,950 | | | $ | 101,436 | |
| Publicis Groupe SA (France)(a) | | | 4,506 | | | | 68,311 | |
| WPP PLC (Jersey Islands)*(a) | | | 872 | | | | 63,569 | |
| Total Advertising | | | | | | | 233,316 | |
Aerospace/Defense — 1.3%
| | | | | | | | |
| Finmeccanica SpA (Italy)*(a) | | | 36,429 | | | | 103,823 | |
| Safran SA (France)(a) | | | 1,944 | | | | 84,078 | |
| Total Aerospace/Defense | | | | | | | 187,901 | |
Agriculture — 0.5%
| | | | | | | | |
| British American Tobacco PLC (United Kingdom)(a) | | | 336 | | | | 34,020 | |
| Imperial Tobacco Group PLC (United Kingdom)(a) | | | 536 | | | | 41,535 | |
| Total Agriculture | | | | | | | 75,555 | |
Airlines — 1.1%
| | | | | | | | |
| China Eastern Airlines Corp. Ltd. (China)*(a) | | | 5,673 | | | | 114,027 | |
| Ryanair Holdings PLC (Ireland)(a) | | | 1,327 | | | | 45,490 | |
| Total Airlines | | | | | | | 159,517 | |
Apparel — 0.6%
| | | | | | | | |
| Burberry Group PLC (United Kingdom)(a) | | | 1,171 | | | | 47,753 | |
| Gildan Activewear, Inc. (Canada) | | | 1,270 | | | | 46,457 | |
| Total Apparel | | | | | | | 94,210 | |
Auto Manufacturers — 3.9%
| | | | | | | | |
| BYD Co. Ltd. (China)*(a) | | | 2,784 | | | | 16,871 | |
| Daimler AG (Germany)(a) | | | 977 | | | | 53,442 | |
| Fiat SpA (Italy)*(a) | | | 17,924 | | | | 91,412 | |
| Honda Motor Co. Ltd. (Japan)(a) | | | 2,981 | | | | 110,118 | |
| Nissan Motor Co. Ltd. (Japan)(a) | | | 5,122 | | | | 97,779 | |
| Tata Motors Ltd. (India)(a) | | | 3,505 | | | | 100,664 | |
| Toyota Motor Corp. (Japan)(a) | | | 1,187 | | | | 110,688 | |
| Total Auto Manufacturers | | | | | | | 580,974 | |
Auto Parts & Equipment — 3.1%
| | | | | | | | |
| Bridgestone Corp. (Japan)(a) | | | 2,076 | | | | 107,267 | |
| Cie Generale des Etablissements Michelin (France)(a) | | | 5,273 | | | | 101,189 | |
| Denso Corp. (Japan)(a) | | | 4,291 | | | | 74,663 | |
| Magna International, Inc. (Canada) | | | 1,847 | | | | 92,387 | |
| Valeo SA (France)(a) | | | 3,348 | | | | 86,044 | |
| Total Auto Parts & Equipment | | | | | | | 461,550 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Banks — 12.2%
| | | | | | | | |
| Akbank TAS (Turkey)(a) | | | 5,877 | | | $ | 59,064 | |
| Australia & New Zealand Banking Group Ltd. (Australia)(a) | | | 497 | | | | 13,101 | |
| Banco Bilbao Vizcaya Argentaria SA (Spain)(a) | | | 1,227 | | | | 11,558 | |
| Banco Bradesco SA (Brazil)(a) | | | 4,020 | | | | 69,827 | |
| Banco de Chile (Chile)(a) | | | 431 | | | | 41,592 | |
| Banco do Brasil SA (Brazil)(a) | | | 5,672 | | | | 71,864 | |
| Banco Santander Chile (Chile)(a) | | | 1,524 | | | | 43,419 | |
| Banco Santander SA (Spain)(a) | | | 8,629 | | | | 70,499 | |
| Bancolombia SA (Colombia)(a) | | | 1,285 | | | | 85,555 | |
| Bank Mandiri Persero Tbk PT (Indonesia)(a) | | | 10,146 | | | | 85,064 | |
| BNP Paribas SA (France)(a) | | | 2,095 | | | | 61,195 | |
| BOC Hong Kong Holdings Ltd. (Hong Kong)(a) | | | 608 | | | | 38,334 | |
| China Construction Bank Corp. (China)(a) | | | 5,954 | | | | 96,633 | |
| Credit Suisse Group AG (Switzerland)(a) | | | 4,157 | | | | 102,096 | |
| DBS Group Holdings Ltd. (Singapore)(a) | | | 1,170 | | | | 57,400 | |
| Hachijuni Bank Ltd. (The) (Japan)(a) | | | 201 | | | | 10,169 | |
| HSBC Holdings PLC (United Kingdom)(a) | | | 1,344 | | | | 71,326 | |
| ICICI Bank Ltd. (India)(a) | | | 1,649 | | | | 71,913 | |
| Intesa Sanpaolo SpA (Italy)(a) | | | 8,062 | | | | 85,780 | |
| Itau Unibanco Holding SA (Brazil)(a) | | | 5,364 | | | | 88,291 | |
| Kasikornbank PCL (Thailand)(a) | | | 4,100 | | | | 105,165 | |
| Lloyds Banking Group PLC (United Kingdom)*(a) | | | 24,734 | | | | 79,149 | |
| Royal Bank of Scotland Group PLC (United Kingdom)*(a) | | | 10,275 | | | | 110,867 | |
| Sberbank of Russia (Russia)(a) | | | 6,868 | | | | 86,262 | |
| Societe Generale SA (France)*(a) | | | 12,333 | | | | 96,444 | |
| Turkiye Garanti Bankasi As (Turkey)(a) | | | 7,799 | | | | 40,555 | |
| United Overseas Bank Ltd. (Singapore)(a) | | | 2,316 | | | | 76,081 | |
| Total Banks | | | | | | | 1,829,203 | |
Beverages — 3.0%
| | | | | | | | |
| Anheuser-Busch InBev NV (Belgium)(a) | | | 684 | | | | 59,788 | |
| Cia de Bebidas das Americas (Brazil)(a) | | | 297 | | | | 12,471 | |
| Coca-Cola Femsa SAB de CV (Mexico)(a) | | | 122 | | | | 18,183 | |
| Coca-Cola Hellenic Bottling Co. SA (Greece)(a) | | | 729 | | | | 17,182 | |
| Cott Corp. (Canada) | | | 10,826 | | | | 86,933 | |
| Diageo PLC (United Kingdom)(a) | | | 370 | | | | 43,135 | |
| Fomento Economico Mexicano SAB de CV (Mexico)(a) | | | 300 | | | | 30,210 | |
| Heineken NV (Netherlands)*(a) | | | 1,425 | | | | 47,837 | |
| Kirin Holdings Co. Ltd. (Japan)(a) | | | 6,559 | | | | 76,937 | |
| SABMiller PLC (United Kingdom)(a) | | | 1,167 | | | | 54,604 | |
| Total Beverages | | | | | | | 447,280 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Biotechnology — 0.3%
| | | | | | | | |
| CSL Ltd. (Australia)(a) | | | 1,495 | | | $ | 42,383 | |
Building Materials — 2.0%
| | | | | | | | |
| CRH PLC (Ireland)(a) | | | 4,284 | | | | 87,137 | |
| James Hardie Industries PLC (Ireland)(a) | | | 781 | | | | 38,058 | |
| Lafarge SA (France)(a) | | | 6,030 | | | | 97,686 | |
| LIXIL Group Corp. (Japan)(a) | | | 1,893 | | | | 84,257 | |
| Total Building Materials | | | | | | | 307,138 | |
Chemicals — 4.6%
| | | | | | | | |
| Agrium, Inc. (Canada) | | | 291 | | | | 29,074 | |
| Air Liquide SA (France)(a) | | | 576 | | | | 14,659 | |
| Akzo Nobel NV (Netherlands)(a) | | | 3,905 | | | | 87,863 | |
| BASF SE (Germany)(a) | | | 135 | | | | 12,825 | |
| Israel Chemicals Ltd. (Israel)(a) | | | 5,662 | | | | 68,737 | |
| Lonza Group AG (Switzerland)(a) | | | 13,506 | | | | 73,067 | |
| Methanex Corp. (Canada) | | | 3,487 | | | | 111,131 | |
| Nitto Denko Corp. (Japan)(a) | | | 3,710 | | | | 92,119 | |
| Shin-Etsu Chemical Co. Ltd. (Japan)(a) | | | 2,824 | | | | 42,868 | |
| Sociedad Quimica y Minera de Chile SA (Chile)(a) | | | 699 | | | | 40,290 | |
| Syngenta AG (Switzerland)(a) | | | 422 | | | | 34,098 | |
| Ultrapar Participacoes SA (Brazil)(a) | | | 1,099 | | | | 24,486 | |
| Yara International ASA (Norway)(a) | | | 1,278 | | | | 63,568 | |
| Total Chemicals | | | | | | | 694,785 | |
Commercial Services — 2.2%
| | | | | | | | |
| Bunzl PLC (United Kingdom)(a) | | | 239 | | | | 19,717 | |
| Cielo SA (Brazil)(a) | | | 2,165 | | | | 62,460 | |
| Experian PLC (Jersey Islands)(a) | | | 1,666 | | | | 26,756 | |
| Intertek Group PLC (United Kingdom)(a) | | | 1,075 | | | | 54,152 | |
| Secom Co. Ltd. (Japan)(a) | | | 7,035 | | | | 88,219 | |
| SGS SA (Switzerland)(a) | | | 1,852 | | | | 41,263 | |
| Stantec, Inc. (Canada) | | | 807 | | | | 32,361 | |
| Total Commercial Services | | | | | | | 324,928 | |
Computers — 1.1%
| | | | | | | | |
| Indra Sistemas SA (Spain)(a) | | | 2,981 | | | | 19,466 | |
| Infosys Ltd. (India)(a) | | | 1,239 | | | | 52,410 | |
| Lenovo Group Ltd. (Hong Kong)(a) | | | 5,268 | | | | 96,404 | |
| Total Computers | | | | | | | 168,280 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Cosmetics/Personal Care — 1.1%
| | | | | | | | |
| Kao Corp. (Japan)(a) | | | 1,290 | | | $ | 33,501 | |
| L'Oreal SA (France)(a) | | | 615 | | | | 17,208 | |
| Shiseido Co. Ltd. (Japan)(a) | | | 5,428 | | | | 76,372 | |
| Unicharm Corp. (Japan)(a) | | | 4,170 | | | | 43,493 | |
| Total Cosmetics/Personal Care | | | | | | | 170,574 | |
Distribution/Wholesale — 2.0%
| | | | | | | | |
| ITOCHU Corp. (Japan)(a) | | | 4,923 | | | | 104,319 | |
| Mitsubishi Corp. (Japan)(a) | | | 2,326 | | | | 89,667 | |
| Mitsui & Co. Ltd. (Japan)(a) | | | 338 | | | | 101,569 | |
| Total Distribution/Wholesale | | | | | | | 295,555 | |
Diversified Financial Services — 1.9%
| | | | | | | | |
| Deutsche Boerse AG (Germany)(a) | | | 1,767 | | | | 10,920 | |
| Julius Baer Group Ltd. (Switzerland)(a) | | | 4,630 | | | | 32,642 | |
| Nomura Holdings, Inc. (Japan)(a) | | | 25,422 | | | | 149,227 | |
| ORIX Corp. (Japan)(a) | | | 1,625 | | | | 92,040 | |
| Total Diversified Financial Services | | | | | | | 284,829 | |
Electric — 3.0%
| | | | | | | | |
| AGL Energy Ltd. (Australia)(a) | | | 2,714 | | | | 43,723 | |
| Cia Energetica de Minas Gerais (Brazil)(a) | | | 5,692 | | | | 61,815 | |
| CPFL Energia SA (Brazil)(a) | | | 1,449 | | | | 30,371 | |
| EDF SA (France)(a) | | | 17,277 | | | | 64,098 | |
| Federal Hydrogenerating Co. JSC (Russia)(a) | | | 22,562 | | | | 53,043 | |
| GDF Suez (France)(a) | | | 1,837 | | | | 38,650 | |
| Huaneng Power International, Inc. (China)(a) | | | 3,137 | | | | 116,540 | |
| SSE PLC (United Kingdom)(a) | | | 1,048 | | | | 24,376 | |
| Tractebel Energia SA (Brazil)(a) | | | 1,210 | | | | 19,590 | |
| Total Electric | | | | | | | 452,206 | |
Electrical Components & Equipment — 0.6%
| | | | | | | | |
| Nidec Corp. (Japan)(a) | | | 2,766 | | | | 40,301 | |
| Schneider Electric SA (France)(a) | | | 3,059 | | | | 45,242 | |
| Total Electrical Components & Equipment | | | | | | | 85,543 | |
Electronics — 2.3%
| | | | | | | | |
| Celestica, Inc., Class W (Canada)* | | | 9,643 | | | | 78,590 | |
| Hoya Corp. (Japan)(a) | | | 3,515 | | | | 68,999 | |
| Imax Corp. (Canada)* | | | 1,718 | | | | 38,621 | |
| Koninklijke Philips Electronics NV, Class Y (Netherlands) | | | 2,491 | | | | 66,111 | |
| Kyocera Corp. (Japan)(a) | | | 209 | | | | 19,092 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Electronics — 2.3% (continued)
| | | | | | | | |
| LG Display Co. Ltd. (South Korea)(a) | | | 895 | | | $ | 12,960 | |
| Panasonic Corp. (Japan)(a) | | | 8,193 | | | | 49,732 | |
| Sony Corp. (Japan)(a) | | | 1,156 | | | | 12,947 | |
| Total Electronics | | | | | | | 347,052 | |
Engineering & Construction — 0.6%
| | | | | | | | |
| ABB Ltd. (Switzerland)(a) | | | 1,957 | | | | 40,686 | |
| JGC Corp. (Japan)(a) | | | 806 | | | | 50,447 | |
| Total Engineering & Construction | | | | | | | 91,133 | |
Food — 2.3%
| | | | | | | | |
| BRF – Brasil Foods SA (Brazil)(a) | | | 2,315 | | | | 48,870 | |
| Carrefour SA (France)(a) | | | 9,819 | | | | 50,568 | |
| Cencosud SA (Chile)(a) | | | 2,751 | | | | 44,924 | |
| Cia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil)(a) | | | 1,233 | | | | 54,733 | |
| Koninklijke Ahold NV (Netherlands)(a) | | | 4,226 | | | | 57,474 | |
| Tesco PLC (United Kingdom)(a) | | | 825 | | | | 13,678 | |
| Unilever NV (Netherlands) | | | 614 | | | | 23,516 | |
| William Morrison Supermarkets PLC (United Kingdom)(a) | | | 2,343 | | | | 50,093 | |
| Total Food | | | | | | | 343,856 | |
Food Service — 0.2%
| | | | | | | | |
| Compass Group PLC (United Kingdom)(a) | | | 3,087 | | | | 36,982 | |
Forest Products & Paper — 1.2%
| | | | | | | | |
| Stora ENSO OYJ (Finland)(a) | | | 12,070 | | | | 83,887 | |
| Svenska Cellulosa AB (Sweden)(a) | | | 4,640 | | | | 101,987 | |
| Total Forest Products & Paper | | | | | | | 185,874 | |
Gas — 0.2%
| | | | | | | | |
| PT Perusahaan Gas Negara (Indonesia)(a) | | | 1,376 | | | | 32,088 | |
Hand/Machine Tools — 0.5%
| | | | | | | | |
| Techtronic Industries Co. (Hong Kong)(a) | | | 8,227 | | | | 77,005 | |
Healthcare — Products — 0.9%
| | | | | | | | |
| Essilor International SA (France)(a) | | | 597 | | | | 30,555 | |
| Getinge AB (Sweden)(a) | | | 1,657 | | | | 56,338 | |
| Smith & Nephew PLC (United Kingdom)(a) | | | 291 | | | | 16,121 | |
| Sysmex Corp. (Japan)(a) | | | 1,185 | | | | 27,255 | |
| Total Healthcare – Products | | | | | | | 130,269 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Healthcare – Services — 0.5%
| | | | | | | | |
| ICON PLC (Ireland)*(a) | | | 2,744 | | | $ | 76,173 | |
Holding Companies – Diversified — 1.8%
| | | | | | | | |
| Hutchison Whampoa Ltd. (Hong Kong)(a) | | | 3,075 | | | | 65,129 | |
| Keppel Corp. Ltd. (Singapore)(a) | | | 1,686 | | | | 30,786 | |
| KOC Holding AS (Turkey)(a) | | | 4,435 | | | | 116,020 | |
| LVMH Moet Hennessy Louis Vuitton SA (France)(a) | | | 1,402 | | | | 52,841 | |
| Total Holding Companies – Diversified | | | | | | | 264,776 | |
Home Builders — 0.7%
| | | | | | | | |
| Sekisui House Ltd. (Japan)(a) | | | 9,585 | | | | 104,189 | |
Household Products/Wares — 0.1%
| | | | | | | | |
| Kimberly-Clark de Mexico SAB de CV (Mexico)(a) | | | 1,514 | | | | 19,531 | |
Insurance — 6.2%
| | | | | | | | |
| Aegon NV, Class G (Netherlands) | | | 14,611 | | | | 94,095 | |
| Ageas (Belgium)(a) | | | 3,923 | | | | 118,671 | |
| AXA SA (France)(a) | | | 4,065 | | | | 74,064 | |
| China Life Insurance Co. Ltd. (China)(a) | | | 1,300 | | | | 64,597 | |
| ING Groep NV (Netherlands)*(a) | | | 11,048 | | | | 104,845 | |
| MS&AD Insurance Group Holdings (Japan)(a) | | | 9,534 | | | | 94,387 | |
| Ping An Insurance Group Co. of China Ltd. (China)(a) | | | 4,827 | | | | 82,976 | |
| Prudential PLC (United Kingdom)(a) | | | 1,889 | | | | 53,931 | |
| Sun Life Financial, Inc. (Canada) | | | 252 | | | | 6,686 | |
| Swiss Re AG (Switzerland)(a) | | | 1,303 | | | | 94,207 | |
| Tokio Marine Holdings, Inc. (Japan)(a) | | | 2,658 | | | | 73,999 | |
| Zurich Insurance Group AG (Switzerland)(a) | | | 2,678 | | | | 71,770 | |
| Total Insurance | | | | | | | 934,228 | |
Internet — 1.2%
| | | | | | | | |
| Baidu, Inc. (Cayman Islands)*(a) | | | 726 | | | | 72,811 | |
| NetEase.com (Cayman Islands)*(a) | | | 1,349 | | | | 57,400 | |
| Tencent Holdings Ltd. (Cayman Islands)(a) | | | 1,470 | | | | 47,995 | |
| Total Internet | | | | | | | 178,206 | |
Iron/Steel — 0.9%
| | | | | | | | |
| ArcelorMittal (Luxembourg) | | | 1,725 | | | | 30,135 | |
| Gerdau SA (Brazil)(a) | | | 1,521 | | | | 13,674 | |
| Rio Tinto PLC (United Kingdom)(a) | | | 1,688 | | | | 98,056 | |
| Total Iron/Steel | | | | | | | 141,865 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Leisure Time — 0.1%
| | | | | | | | |
| Carnival PLC (United Kingdom)(a) | | | 450 | | | $ | 17,437 | |
Lodging — 0.7%
| | | | | | | | |
Melco Crown Entertainment Ltd., Class Participation
Certificate (Hong Kong)*(a) | | | 5,786 | | | | 97,436 | |
Machinery – Diversified — 1.0%
| | | | | | | | |
| Alstom SA (France)(a) | | | 25,378 | | | | 101,258 | |
| Kubota Corp. (Japan)(a) | | | 933 | | | | 53,760 | |
| Total Machinery – Diversified | | | | | | | 155,018 | |
Media — 1.6%
| | | | | | | | |
| British Sky Broadcasting Group PLC (United Kingdom)(a) | | | 1,196 | | | | 60,266 | |
| Grupo Televisa SA (Mexico)(a) | | | 1,500 | | | | 39,870 | |
| Jupiter Telecommunications Co. Ltd. (Japan)(a) | | | 1,698 | | | | 21,140 | |
| Naspers Ltd., Class N (South Africa)(a) | | | 390 | | | | 25,350 | |
| Pearson PLC (United Kingdom)(a) | | | 877 | | | | 17,137 | |
| Reed Elsevier NV (Netherlands)(a) | | | 810 | | | | 23,960 | |
| Reed Elsevier PLC (United Kingdom)(a) | | | 521 | | | | 21,903 | |
| Wolters Kluwer NV (Netherlands)(a) | | | 1,811 | | | | 37,433 | |
| Total Media | | | | | | | 247,059 | |
Metal Fabricate/Hardware — 1.0%
| | | | | | | | |
| Assa Abloy AB (Sweden)(a) | | | 3,301 | | | | 61,101 | |
| Tenaris SA (Luxembourg)(a) | | | 2,266 | | | | 94,991 | |
| Total Metal Fabricate/Hardware | | | | | | | 156,092 | |
Mining — 4.8%
| | | | | | | | |
| AngloGold Ashanti Ltd. (South Africa)(a) | | | 1,863 | | | | 58,442 | |
| BHP Billiton Ltd. (Australia)(a) | | | 299 | | | | 23,454 | |
| BHP Billiton PLC (United Kingdom)(a) | | | 970 | | | | 68,259 | |
| Cameco Corp. (Canada) | | | 985 | | | | 19,424 | |
| Gold Fields Ltd. (South Africa)(a) | | | 6,472 | | | | 80,835 | |
| Impala Platinum Holdings Ltd. (South Africa)(a) | | | 1,046 | | | | 20,868 | |
| Kinross Gold Corp. (Canada) | | | 2,475 | | | | 24,057 | |
| Newcrest Mining Ltd. (Australia)(a) | | | 2,881 | | | | 68,020 | |
| Polyus Gold International Ltd. (United Kingdom)(b) | | | 27,750 | | | | 91,020 | |
| Randgold Resources Ltd. (Jersey Islands)(a) | | | 603 | | | | 59,848 | |
| Silver Wheaton Corp. (Canada) | | | 2,373 | | | | 85,618 | |
| Sterlite Industries India Ltd. (India)(a) | | | 12,610 | | | | 108,572 | |
| Yamana Gold, Inc. (Canada) | | | 656 | | | | 11,290 | |
| Total Mining | | | | | | | 719,707 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Miscellaneous Manufacturing — 1.4%
| | | | | | | | |
| FUJIFILM Holdings Corp. (Japan)(a) | | | 4,465 | | | $ | 89,434 | |
| Siemens AG (Germany)(a) | | | 494 | | | | 54,078 | |
| Smiths Group PLC (United Kingdom)(a) | | | 3,414 | | | | 68,314 | |
| Total Miscellaneous Manufacturing | | | | | | | 211,826 | |
Office/Business Equipment — 0.3%
| | | | | | | | |
| Canon, Inc. (Japan)(a) | | | 1,241 | | | | 48,660 | |
Oil & Gas — 3.2%
| | | | | | | | |
| BG Group PLC (Luxembourg)(a) | | | 3,084 | | | | 51,534 | |
| China Petroleum & Chemical Corp. (China)(a) | | | 280 | | | | 32,178 | |
| CNOOC Ltd. (Hong Kong)(a) | | | 100 | | | | 22,000 | |
| Ecopetrol SA (Colombia)(a) | | | 1,397 | | | | 83,359 | |
| Enerplus Corp. (Canada) | | | 4,605 | | | | 59,681 | |
| Eni SpA (Italy)(a) | | | 1,144 | | | | 56,216 | |
| Petroleo Brasileiro SA (Brazil)(a) | | | 975 | | | | 18,983 | |
| Repsol YPF SA (Spain)(a) | | | 3,640 | | | | 76,076 | |
| Sasol Ltd. (South Africa)(a) | | | 637 | | | | 27,576 | |
| Total SA (France)(a) | | | 447 | | | | 23,248 | |
| Woodside Petroleum Ltd. (Australia)(a) | | | 691 | | | | 24,696 | |
| Total Oil & Gas | | | | | | | 475,547 | |
Oil & Gas Services — 1.1%
| | | | | | | | |
| Subsea 7 SA (Luxembourg)(a) | | | 4,090 | | | | 99,019 | |
| Technip SA (France)(a) | | | 2,267 | | | | 66,808 | |
| Total Oil & Gas Services | | | | | | | 165,827 | |
Packaging & Containers — 0.2%
| | | | | | | | |
| Rexam PLC (United Kingdom)(a) | | | 707 | | | | 25,268 | |
Pharmaceuticals — 3.4%
| | | | | | | | |
| Astellas Pharma, Inc. (Japan)(a) | | | 1,157 | | | | 51,891 | |
| Daiichi Sankyo Co. Ltd. (Japan)(a) | | | 5,754 | | | | 87,691 | |
| GlaxoSmithKline PLC (United Kingdom)(a) | | | 657 | | | | 28,560 | |
| Grifols SA (Spain)*(a) | | | 3,056 | | | | 79,242 | |
| Novartis AG (Switzerland)(a) | | | 186 | | | | 11,774 | |
| NOVO Nordisk A/S (Denmark)(a) | | | 277 | | | | 45,209 | |
| Roche Holding AG (Switzerland)(a) | | | 715 | | | | 36,108 | |
| Shire PLC (Jersey Islands)(a) | | | 638 | | | | 58,811 | |
| Teva Pharmaceutical Industries Ltd. (Israel)(a) | | | 1,302 | | | | 48,617 | |
| Valeant Pharmaceuticals International, Inc. (Canada)* | | | 1,133 | | | | 67,719 | |
| Total Pharmaceuticals | | | | | | | 515,622 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Retail — 1.5%
| | | | | | | | |
| Hennes & Mauritz AB (Sweden)(a) | | | 2,639 | | | $ | 18,235 | |
| Inditex SA (Spain)(a) | | | 1,524 | | | | 43,480 | |
| Kingfisher PLC (United Kingdom)(a) | | | 4,807 | | | | 44,417 | |
| Marks & Spencer Group PLC (United Kingdom)(a) | | | 1,872 | | | | 23,325 | |
| Swatch Group AG (The) (Switzerland)(a) | | | 2,917 | | | | 74,092 | |
| Wal-Mart de Mexico SAB de CV (Mexico)(a) | | | 492 | | | | 16,128 | |
| Total Retail | | | | | | | 219,677 | |
Semiconductors — 2.1%
| | | | | | | | |
| Advanced Semiconductor Engineering, Inc. (Taiwan)(a) | �� | | 17,910 | | | | 76,655 | |
| ARM Holdings PLC (United Kingdom)(a) | | | 830 | | | | 31,399 | |
| ASML Holding NV (Netherlands) | | | 451 | | | | 29,049 | |
| CSR PLC (United Kingdom)(a) | | | 3,573 | | | | 77,427 | |
| ROHM Co. Ltd. (Japan)(a) | | | 2,858 | | | | 46,700 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a) | | | 3,003 | | | | 51,531 | |
| Total Semiconductors | | | | | | | 312,761 | |
Software — 0.6%
| | | | | | | | |
| Dassault Systemes SA (France)(a) | | | 269 | | | | 30,421 | |
| Open Text Corp. (Canada)* | | | 1,096 | | | | 61,234 | |
| Total Software | | | | | | | 91,655 | |
Telecommunications — 7.6%
| | | | | | | | |
| BT Group PLC (United Kingdom)(a) | | | 870 | | | | 33,086 | |
| China Telecom Corp. Ltd. (China)(a) | | | 761 | | | | 43,263 | |
| China Unicom Ltd. (Hong Kong)(a) | | | 4,009 | | | | 65,307 | |
| Deutsche Telekom AG (Germany)(a) | | | 4,690 | | | | 53,288 | |
| Hellenic Telecommunications Organization SA (Greece)*(a) | | | 40,833 | | | | 139,975 | |
| KDDI Corp. (Japan)(a) | | | 3,964 | | | | 69,846 | |
| Mobile TeleSystems (Russia)(a) | | | 1,457 | | | | 27,173 | |
| MTN Group Ltd. (South Africa)(a) | | | 4,229 | | | | 90,712 | |
| Nippon Telegraph & Telephone Corp. (Japan)(a) | | | 2,445 | | | | 51,418 | |
| NTT DoCoMo, Inc. (Japan)(a) | | | 1,556 | | | | 22,422 | |
| PT Telekomunikasi Indonesia Tbk (Indonesia)(a) | | | 818 | | | | 30,225 | |
| Soft Bank Corp. (Japan)(a) | | | 3,883 | | | | 70,476 | |
| Swisscom AG (Switzerland)(a) | | | 1,895 | | | | 81,959 | |
| Telecom Corp. of New Zealand Ltd. (New Zealand)(a) | | | 3,304 | | | | 30,595 | |
| Telefonaktiebolaget LM Ericsson (Sweden)(a) | | | 3,597 | | | | 36,330 | |
| Telefonica Brasil SA (Brazil)(a) | | | 1,804 | | | | 43,404 | |
| Telstra Corp. Ltd. (Australia)(a) | | | 913 | | | | 20,771 | |
| Tim Participacoes SA (Brazil)(a) | | | 3,794 | | | | 75,197 | |
| Turkcell Iletisim Hizmetleri AS (Turkey)*(a) | | | 3,188 | | | | 51,454 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Telecommunications — 7.6% (continued)
| | | | | | | | |
| VimpelCom Ltd. (Bermuda)(a) | | | 8,204 | | | $ | 86,060 | |
| Vodafone Group PLC (United Kingdom)(a) | | | 517 | | | | 13,023 | |
| Total Telecommunications | | | | | | | 1,135,984 | |
Transportation — 1.8%
| | | | | | | | |
| Canadian Pacific Railway Ltd. (Canada) | | | 563 | | | | 57,212 | |
| Deutsche Post AG (Germany)(a) | | | 2,711 | | | | 59,967 | |
| East Japan Railway Co. (Japan)(a) | | | 7,372 | | | | 79,175 | |
| TNT Express NV (Netherlands)(a) | | | 7,049 | | | | 79,936 | |
| Total Transportation | | | | | | | 276,290 | |
Water — 1.1%
| | | | | | | | |
| Cia de Saneamento Basico do Estado de Sao Paulo (Brazil)(a) | | | 859 | | | | 71,787 | |
| Veolia Environnement SA (France)(a) | | | 7,605 | | | | 93,085 | |
| Total Water | | | | | | | 164,872 | |
Total Common Stocks
(Cost $13,613,702) | | | | | | | 14,895,692 | |
MONEY MARKET FUND — 0.9%
| | | | | | | | |
Fidelity Institutional Prime Money Market Portfolio – Class I
(Cost $125,763) | | | 125,763 | | | | 125,763 | |
Total Investments — 100.1%
(Cost $13,739,465) | | | | | | | 15,021,455 | |
| Liabilities in Excess of Other Assets — (0.1)% | | | | | | | (10,588 | ) |
| Net Assets — 100.0% | | | | | | $ | 15,010,867 | |
PLC — Public Limited Company
| (a) | American Depositary Receipt |
| (b) | Global Depositary Receipt |
| * | Non-income producing security |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Advertising | | | 1.6 | % |
| Aerospace/Defense | | | 1.3 | |
| Agriculture | | | 0.5 | |
| Airlines | | | 1.1 | |
| Apparel | | | 0.6 | |
| Auto Manufacturers | | | 3.9 | |
| Auto Parts & Equipment | | | 3.1 | |
| Banks | | | 12.2 | |
| Beverages | | | 3.0 | |
| Biotechnology | | | 0.3 | |
| Building Materials | | | 2.0 | |
| Chemicals | | | 4.6 | |
| Commercial Services | | | 2.2 | |
| Computers | | | 1.1 | |
| Cosmetics/Personal Care | | | 1.1 | |
| Distribution/Wholesale | | | 2.0 | |
| Diversified Financial Services | | | 1.9 | |
| Electric | | | 3.0 | |
| Electrical Components & Equipment | | | 0.6 | |
| Electronics | | | 2.3 | |
| Engineering & Construction | | | 0.6 | |
| Food | | | 2.3 | |
| Food Service | | | 0.2 | |
| Forest Products & Paper | | | 1.2 | |
| Gas | | | 0.2 | |
| Hand/Machine Tools | | | 0.5 | |
| Healthcare – Products | | | 0.9 | |
| Healthcare – Services | | | 0.5 | |
| Holding Companies – Diversified | | | 1.8 | |
| Home Builders | | | 0.7 | |
| Household Products/Wares | | | 0.1 | |
| Insurance | | | 6.2 | |
| Internet | | | 1.2 | |
| Iron/Steel | | | 0.9 | |
| Leisure Time | | | 0.1 | |
| Lodging | | | 0.7 | |
| Machinery – Diversified | | | 1.0 | |
| Media | | | 1.6 | |
| Metal Fabricate/Hardware | | | 1.0 | |
| Mining | | | 4.8 | |
| Miscellaneous Manufacturing | | | 1.4 | |
| Office/Business Equipment | | | 0.3 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
| | |
| | % of
Net Assets |
| Oil & Gas | | | 3.2 | % |
| Oil & Gas Services | | | 1.1 | |
| Packaging & Containers | | | 0.2 | |
| Pharmaceuticals | | | 3.4 | |
| Retail | | | 1.5 | |
| Semiconductors | | | 2.1 | |
| Software | | | 0.6 | |
| Telecommunications | | | 7.6 | |
| Transportation | | | 1.8 | |
| Water | | | 1.1 | |
| Money Market Fund | | | 0.9 | |
| Total Investments | | | 100.1 | |
| Liabilities in Excess of Other Assets | | | (0.1 | ) |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
EXCHANGE TRADED FUNDS — 98.2%
| | | | | | | | |
Equity Fund — 98.2%
| | | | | | | | |
| Guggenheim S&P Equal Weight ETF | | | 12,857 | | | $ | 685,535 | |
| iShares MSCI EAFE Index Fund | | | 12,773 | | | | 725,762 | |
| iShares MSCI Emerging Markets Index | | | 16,541 | | | | 733,593 | |
| iShares S&P 500 Value Index Fund | | | 10,243 | | | | 680,033 | |
| iShares S&P Europe 350 Index Fund | | | 8,792 | | | | 345,526 | |
| iShares S&P MidCap 400 Growth Index Fund | | | 5,875 | | | | 672,159 | |
| iShares S&P MidCap 400 Value Index Fund | | | 7,819 | | | | 689,167 | |
| iShares S&P SmallCap 600 Value Index Fund | | | 8,466 | | | | 684,984 | |
| SPDR S&P International Small Cap ETF | | | 12,244 | | | | 348,342 | |
| SPDR S&P MidCap 400 ETF Trust | | | 3,750 | | | | 696,412 | |
| Vanguard FTSE All-World ex-US Index Fund | | | 15,671 | | | | 716,948 | |
Total Exchange Traded Funds
(Cost $6,771,559) | | | | | | | 6,978,461 | |
MONEY MARKET FUND — 3.0%
| | | | | | | | |
| Dreyfus Institutional Reserves Treasury Fund – Institutional Class (Cost $212,171) | | | 212,171 | | | | 212,171 | |
Total Investments — 101.2%
(Cost $6,983,730) | | | | | | | 7,190,632 | |
| Liabilities in Excess of Other Assets — (1.2)% | | | | | | | (82,456 | ) |
| Net Assets — 100.0% | | | | | | $ | 7,108,176 | |
| ETF | — Exchange Traded Fund |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Equity Fund | | | 98.2 | % |
| Money Market Fund | | | 3.0 | |
| Total Investments | | | 101.2 | |
| Liabilities in Excess of Other Assets | | | (1.2 | ) |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
CORPORATE BONDS — 84.9%
| | | | | | | | |
Advertising — 3.0%
| | | | | | | | |
| Affinion Group, Inc., 7.88%, 12/15/18 | | | 4,405,000 | | | $ | 3,380,837 | |
| Sitel Worldwide Corp., 11.00%, 08/01/17‡ | | | 1,850,000 | | | | 1,887,000 | |
| Total Advertising | | | | | | | 5,267,837 | |
Aerospace/Defense — 1.5%
| | | | | | | | |
| Ducommun, Inc., 9.75%, 07/15/18 | | | 2,531,000 | | | | 2,733,480 | |
Auto Manufacturers — 2.1%
| | | | | | | | |
| Navistar International Corp., 8.25%, 11/01/21 | | | 3,773,000 | | | | 3,659,810 | |
Auto Parts & Equipment — 2.2%
| | | | | | | | |
| Exide Technologies, 8.63%, 02/01/18 | | | 4,482,000 | | | | 3,820,905 | |
Beverages — 3.7%
| | | | | | | | |
| CEDC Finance Corp. International, Inc., 9.13%, 12/01/16‡ | | | 4,900,000 | | | | 2,989,000 | |
| Innovation Ventures LLC / Innovation Ventures Finance Corp., 9.50%, 08/15/19‡ | | | 3,825,000 | | | | 3,614,625 | |
| Total Beverages | | | | | | | 6,603,625 | |
Chemicals — 1.9%
| | | | | | | | |
| Phibro Animal Health Corp., 9.25%, 07/01/18‡ | | | 3,330,000 | | | | 3,346,650 | |
Commercial Services — 7.3%
| | | | | | | | |
| DynCorp International, Inc., 10.38%, 07/01/17 | | | 4,829,000 | | | | 4,442,680 | |
| Harland Clarke Holdings Corp., 9.50%, 05/15/15 | | | 4,205,000 | | | | 3,900,137 | |
| Harland Clarke Holdings Corp., 9.75%, 08/01/18‡ | | | 1,200,000 | | | | 1,173,000 | |
| Logo Merger Sub Corp., 8.38%, 10/15/20‡ | | | 3,425,000 | | | | 3,459,250 | |
| Total Commercial Services | | | | | | | 12,975,067 | |
Computers — 4.0%
| | | | | | | | |
| j2 Global, Inc., 8.00%, 08/01/20 | | | 1,220,000 | | | | 1,274,900 | |
| Spansion LLC, 7.88%, 11/15/17 | | | 3,250,000 | | | | 3,347,500 | |
| Stream Global Services, Inc., 11.25%, 10/01/14 | | | 2,351,000 | | | | 2,468,550 | |
| Total Computers | | | | | | | 7,090,950 | |
Diversified Financial Services — 2.2%
| | | | | | | | |
| GFI Group, Inc., 8.63%, 07/19/18 | | | 4,425,000 | | | | 3,905,063 | |
Electrical Components & Equipment — 2.0%
| | | | | | | | |
| Advanced Lighting Technologies, Inc., 10.50%, 06/01/19‡ | | | 3,600,000 | | | | 3,582,000 | |
Electronics — 6.3%
| | | | | | | | |
| KEMET Corp., 10.50%, 05/01/18 | | | 1,900,000 | | | | 1,883,375 | |
| Sanmina-SCI Corp., 7.00%, 05/15/19‡ | | | 3,930,000 | | | | 4,028,250 | |
| Stoneridge, Inc., 9.50%, 10/15/17‡ | | | 1,740,000 | | | | 1,861,800 | |
| Viasystems, Inc., 7.88%, 05/01/19‡ | | | 3,350,000 | | | | 3,299,750 | |
| Total Electronics | | | | | | | 11,073,175 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Environmental Control — 4.4%
| | | | | | | | |
| Casella Waste Systems, Inc., 7.75%, 02/15/19 | | | 4,114,000 | | | $ | 3,928,870 | |
| EnergySolutions, Inc./EnergySolutions LLC, 10.75%, 08/15/18 | | | 4,050,000 | | | | 3,847,500 | |
| Total Environmental Control | | | | | | | 7,776,370 | |
Food — 6.5%
| | | | | | | | |
| Bumble Bee Acquisition Corp., 9.00%, 12/15/17‡ | | | 2,572,000 | | | | 2,777,760 | |
| Chiquita Brands International, Inc., 7.50%, 11/01/14 | | | 1,820,000 | | | | 1,831,375 | |
| Harmony Foods Corp., 10.00%, 05/01/16‡ | | | 2,830,000 | | | | 3,063,475 | |
| SUPERVALU, Inc., 8.00%, 05/01/16 | | | 3,935,000 | | | | 3,767,762 | |
| Total Food | | | | | | | 11,440,372 | |
Forest Products & Paper — 2.0%
| | | | | | | | |
| Exopack Holding Corp., 10.00%, 06/01/18 | | | 3,904,000 | | | | 3,552,640 | |
Healthcare – Products — 5.3%
| | | | | | | | |
| Kinetic Concepts, Inc., 12.50%, 11/01/19‡ | | | 4,665,000 | | | | 4,484,231 | |
| Rotech Healthcare, Inc., 10.75%, 10/15/15 | | | 4,885,000 | | | | 4,897,213 | |
| Total Healthcare – Products | | | | | | | 9,381,444 | |
Healthcare – Services — 11.2%
| | | | | | | | |
| Alliance Healthcare Services, Inc., 8.00%, 12/01/16 | | | 3,810,000 | | | | 3,486,150 | |
| Apria Healthcare Group, Inc., 11.25%, 11/01/14 | | | 3,625,000 | | | | 3,756,406 | |
| Kindred Healthcare, Inc., 8.25%, 06/01/19 | | | 3,590,000 | | | | 3,509,225 | |
| Radiation Therapy Services, Inc., 8.88%, 01/15/17 | | | 3,960,000 | | | | 3,900,600 | |
| Radnet Management, Inc., 10.38%, 04/01/18 | | | 3,205,000 | | | | 3,277,113 | |
| Select Medical Holdings Corp., 6.43%, 09/15/15@ | | | 1,925,000 | | | | 1,927,406 | |
| Total Healthcare – Services | | | | | | | 19,856,900 | |
Leisure Time — 2.0%
| | | | | | | | |
| ICON Health & Fitness, 11.88%, 10/15/16‡ | | | 3,850,000 | | | | 3,619,000 | |
Miscellaneous Manufacturing — 1.7%
| | | | | | | | |
| JB Poindexter & Co., Inc., 9.00%, 04/01/22‡ | | | 2,965,000 | | | | 3,079,894 | |
Oil & Gas — 6.5%
| | | | | | | | |
| Quicksilver Resources, Inc., 11.75%, 01/01/16 | | | 3,900,000 | | | | 3,870,750 | |
| Seitel, Inc., 9.75%, 02/15/14 | | | 3,828,000 | | | | 3,856,710 | |
| Venoco, Inc., 11.50%, 10/01/17 | | | 3,625,000 | | | | 3,815,313 | |
| Total Oil & Gas | | | | | | | 11,542,773 | |
Retail — 4.0%
| | | | | | | | |
| Ferrellgas Partners LP, 8.63%, 06/15/20 | | | 3,350,000 | | | | 3,366,750 | |
| RadioShack Corp., 6.75%, 05/15/19 | | | 5,792,000 | | | | 3,677,920 | |
| Total Retail | | | | | | | 7,044,670 | |
Storage/Warehousing — 0.5%
| | | | | | | | |
| Niska Gas Storage Partners LLC, 8.88%, 03/15/18 | | | 900,000 | | | | 929,250 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Telecommunications — 3.9%
| | | | | | | | |
| Cincinnati Bell, Inc., 8.75%, 03/15/18 | | | 3,605,000 | | | $ | 3,740,187 | |
| EarthLink, Inc., 8.88%, 05/15/19 | | | 3,015,000 | | | | 3,173,288 | |
| Total Telecommunications | | | | | | | 6,913,475 | |
Transportation — 0.7%
| | | | | | | | |
| PHI, Inc., 8.63%, 10/15/18 | | | 1,185,000 | | | | 1,273,875 | |
Total Corporate Bonds
(Cost $150,043,686) | | | | | | | 150,469,225 | |
FOREIGN BONDS — 12.8%
| | | | | | | | |
Airlines — 2.5%
| | | | | | | | |
| Air Canada, 12.00%, 02/01/16 (Canada)‡ | | | 4,319,711 | | | | 4,481,700 | |
Healthcare – Products — 1.1%
| | | | | | | | |
| Angiotech Pharmaceuticals, Inc., 9.00%, 12/01/16 (Canada) | | | 1,950,000 | | | | 1,971,938 | |
Oil & Gas — 3.2%
| | | | | | | | |
| Connacher Oil And Gas Ltd., 8.50%, 08/01/19 (Canada)‡ | | | 4,450,000 | | | | 3,070,500 | |
| Welltec A/S, 8.00%, 02/01/19 (Denmark)‡ | | | 2,360,000 | | | | 2,513,400 | |
| Total Oil & Gas | | | | | | | 5,583,900 | |
Transportation — 6.0%
| | | | | | | | |
| CHC Helicopter SA, 9.25%, 10/15/20 (Luxembourg) | | | 3,536,000 | | | | 3,739,320 | |
| Navios Maritime Holdings, Inc., 8.13%, 02/15/19 (Marshall Islands) | | | 4,297,000 | | | | 3,759,875 | |
| Ship Finance International Ltd., 8.50%, 12/15/13 (Bermuda) | | | 3,055,000 | | | | 3,074,094 | |
| Total Transportation | | | | | | | 10,573,289 | |
Total Foreign Bonds
(Cost $22,771,483) | | | | | | | 22,610,827 | |
MONEY MARKET FUND — 0.1%
| | | | | | | | |
BlackRock Liquidity Funds TempFund Portfolio – Dollar Class
(Cost $231,083) | | | 231,083 | | | | 231,083 | |
Total Investments — 97.8%
(Cost $173,046,252) | | | | | | | 173,311,135 | |
| Other Assets in Excess of Liabilities — 2.2% | | | | | | | 3,904,477 | |
| Net Assets — 100.0% | | | | | | $ | 177,215,612 | |
| ‡ | 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 December 31, 2012. |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Advertising | | | 3.0 | % |
| Aerospace/Defense | | | 1.5 | |
| Airlines | | | 2.5 | |
| Auto Manufacturers | | | 2.1 | |
| Auto Parts & Equipment | | | 2.2 | |
| Beverages | | | 3.7 | |
| Chemicals | | | 1.9 | |
| Commercial Services | | | 7.3 | |
| Computers | | | 4.0 | |
| Diversified Financial Services | | | 2.2 | |
| Electrical Components & Equipment | | | 2.0 | |
| Electronics | | | 6.3 | |
| Environmental Control | | | 4.4 | |
| Food | | | 6.5 | |
| Forest Products & Paper | | | 2.0 | |
| Healthcare – Products | | | 6.4 | |
| Healthcare – Services | | | 11.2 | |
| Leisure Time | | | 2.0 | |
| Miscellaneous Manufacturing | | | 1.7 | |
| Oil & Gas | | | 9.7 | |
| Retail | | | 4.0 | |
| Storage/Warehousing | | | 0.5 | |
| Telecommunications | | | 3.9 | |
| Transportation | | | 6.7 | |
| Money Market Fund | | | 0.1 | |
| Total Investments | | | 97.8 | |
| Other Assets in Excess of Liabilities | | | 2.2 | |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
COMMON STOCKS — 61.6%
| | | | | | | | |
Aerospace/Defense — 1.7%
| | | | | | | | |
| Raytheon Co. | | | 752 | | | $ | 43,285 | |
Banks — 3.8%
| | | | | | | | |
| Royal Bank of Canada (Canada) | | | 832 | | | | 50,170 | |
| Wells Fargo & Co. | | | 1,272 | | | | 43,477 | |
| Total Banks | | | | | | | 93,647 | |
| Chemicals — 3.6% | | | | | | | | |
| Monsanto Co. | | | 480 | | | | 45,432 | |
| Syngenta AG (Switzerland)(a) | | | 536 | | | | 43,309 | |
| Total Chemicals | | | | | | | 88,741 | |
Coal — 3.6%
| | | | | | | | |
| Alliance Resource Partners, LP | | | 808 | | | | 46,921 | |
| Peabody Energy Corp. | | | 1,648 | | | | 43,853 | |
| Total Coal | | | | | | | 90,774 | |
Commercial Services — 1.6%
| | | | | | | | |
| Paychex, Inc. | | | 1,288 | | | | 40,108 | |
Electric — 1.7%
| | | | | | | | |
| MDU Resources Group, Inc. | | | 2,032 | | | | 43,160 | |
Holding Companies – Diversified — 2.0%
| | | | | | | | |
| Leucadia National Corp. | | | 2,112 | | | | 50,244 | |
Insurance — 3.5%
| | | | | | | | |
| American International Group, Inc.* | | | 1,248 | | | | 44,054 | |
| Aon PLC (United Kingdom) | | | 768 | | | | 42,701 | |
| Total Insurance | | | | | | | 86,755 | |
Machinery – Diversified — 1.8%
| | | | | | | | |
| Deere & Co. | | | 504 | | | | 43,556 | |
Media — 3.5%
| | | | | | | | |
| Comcast Corp., Class A | | | 1,168 | | | | 43,660 | |
| Shaw Communications, Inc., Class B (Canada) | | | 1,936 | | | | 44,489 | |
| Total Media | | | | | | | 88,149 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Mining — 7.2%
| | | | | | | | |
| Franco-Nevada Corp. (Canada) | | | 752 | | | $ | 42,992 | |
| Freeport-McMoRan Copper & Gold, Inc. | | | 1,296 | | | | 44,323 | |
| Royal Gold, Inc. | | | 536 | | | | 43,582 | |
| Silver Wheaton Corp. (Canada) | | | 1,352 | | | | 48,780 | |
| Total Mining | | | | | | | 179,677 | |
Oil & Gas — 1.8%
| | | | | | | | |
| Seadrill Ltd. (Norway) | | | 1,184 | | | | 43,571 | |
Pharmaceuticals — 5.3%
| | | | | | | | |
| Abbott Laboratories | | | 672 | | | | 44,016 | |
| Eli Lilly & Co. | | | 904 | | | | 44,585 | |
| Pfizer, Inc. | | | 1,728 | | | | 43,338 | |
| Total Pharmaceuticals | | | | | | | 131,939 | |
Pipelines — 1.8%
| | | | | | | | |
| Kinder Morgan, Inc. | | | 1,272 | | | | 44,940 | |
Real Estate Investment Trust — 3.7%
| | | | | | | | |
| Lexington Realty Trust | | | 4,416 | | | | 46,147 | |
| Rayonier, Inc. | | | 880 | | | | 45,611 | |
| Total Real Estate Investment Trust | | | | | | | 91,758 | |
Retail — 2.0%
| | | | | | | | |
| Lowe's Cos., Inc. | | | 1,400 | | | | 49,728 | |
Semiconductors — 1.8%
| | | | | | | | |
| Analog Devices, Inc. | | | 1,040 | | | | 43,742 | |
Software — 1.7%
| | | | | | | | |
| Microsoft Corp. | | | 1,616 | | | | 43,196 | |
Telecommunications — 6.0%
| | | | | | | | |
| AT&T, Inc. | | | 1,280 | | | | 43,149 | |
| BCE, Inc. (Canada) | | | 490 | | | | 21,040 | |
| Cisco Systems, Inc. | | | 2,184 | | | | 42,916 | |
| Verizon Communications, Inc. | | | 992 | | | | 42,924 | |
| Total Telecommunications | | | | | | | 150,029 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Transportation — 3.5%
| | | | | | | | |
| Navios Maritime Partners, LP (Greece) | | | 3,520 | | | $ | 43,225 | |
| Union Pacific Corp. | | | 344 | | | | 43,248 | |
| Total Transportation | | | | | | | 86,473 | |
Total Common Stocks
(Cost $1,546,738) | | | | | | | 1,533,472 | |
EXCHANGE TRADED FUNDS — 23.6%
| | | | | | | | |
Debt Fund — 15.1%
| | | | | | | | |
| Guggenheim BulletShares 2015 High Yield Corporate Bond ETF | | | 4,704 | | | | 125,126 | |
| Peritus High Yield ETF† | | | 2,496 | | | | 124,975 | |
| PowerShares Senior Loan Portfolio | | | 5,016 | | | | 125,300 | |
| Total Debt Fund | | | | | | | 375,401 | |
Equity Fund — 8.5%
| | | | | | | | |
| iShares MSCI Hong Kong Index Fund | | | 2,264 | | | | 43,967 | |
| iShares S&P Europe 350 Index Fund | | | 1,128 | | | | 44,331 | |
| SPDR Dow Jones International Real Estate ETF | | | 1,184 | | | | 48,958 | |
| SPDR S&P International Dividend ETF | | | 1,584 | | | | 76,111 | |
| Total Equity Fund | | | | | | | 213,367 | |
Total Exchange Traded Funds
(Cost $589,115) | | | | | | | 588,768 | |
MONEY MARKET FUND — 14.7%
| | | | | | | | |
Dreyfus Government Cash Management – Investor Shares
(Cost $365,232) | | | 365,232 | | | | 365,232 | |
Total Investments — 99.9%
(Cost $2,501,085) | | | | | | | 2,487,472 | |
| Other Assets in Excess of Liabilities — 0.1% | | | | | | | 3,406 | |
| Net Assets — 100.0% | | | | | | $ | 2,490,878 | |
| ETF | — Exchange Traded Fund |
| PLC | — Public Limited Company |
| (a) | American Depositary Receipt |
| * | Non-income producing security |
| † | Affiliated company (See Note 8). |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Aerospace/Defense | | | 1.7 | % |
| Banks | | | 3.8 | |
| Chemicals | | | 3.6 | |
| Coal | | | 3.6 | |
| Commercial Services | | | 1.6 | |
| Debt Fund | | | 15.1 | |
| Electric | | | 1.7 | |
| Equity Fund | | | 8.5 | |
| Holding Companies – Diversified | | | 2.0 | |
| Insurance | | | 3.5 | |
| Machinery – Diversified | | | 1.8 | |
| Media | | | 3.5 | |
| Mining | | | 7.2 | |
| Oil & Gas | | | 1.8 | |
| Pharmaceuticals | | | 5.3 | |
| Pipelines | | | 1.8 | |
| Real Estate Investment Trust | | | 3.7 | |
| Retail | | | 2.0 | |
| Semiconductors | | | 1.8 | |
| Software | | | 1.7 | |
| Telecommunications | | | 6.0 | |
| Transportation | | | 3.5 | |
| Money Market | | | 14.7 | |
| Total Investments | | | 99.9 | |
| Other Assets in Excess of Liabilities | | | 0.1 | |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
QAM EQUITY HEDGE ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
EXCHANGE TRADED NOTE — 0.4%
| | | | | | | | |
Equity Fund — 0.4%
| | | | | | | | |
iPath MSCI India Index ETN
(Cost $15,831) | | | 295 | | | $ | 17,547 | |
EXCHANGE TRADED FUNDS — 72.7%
| | | | | | | | |
Asset Allocation Fund — 2.2%
| | | | | | | | |
| Proshares Short Euro ETF* | | | 2,178 | | | | 81,980 | |
Commodity Fund — 0.9%
| | | | | | | | |
| SPDR Gold Shares* | | | 217 | | | | 35,156 | |
Debt Fund — 19.5%
| | | | | | | | |
| iShares Barclays Short Treasury Bond Fund | | | 3,405 | | | | 375,435 | |
| SPDR Barclays Capital 1 – 3 Month T-Bill ETF* | | | 8,184 | | | | 374,909 | |
| Total Debt Fund | | | | | | | 750,344 | |
Equity Fund — 50.1%
| | | | | | | | |
| EGShares India Small Capital ETF | | | 1,332 | | | | 19,761 | |
| First Trust Dow Jones Internet Index Fund | | | 2,081 | | | | 81,097 | |
| Global X China Consumer ETF | | | 1,224 | | | | 18,201 | |
| Guggenheim China Real Estate ETF | | | 722 | | | | 16,498 | |
| Guggenheim China Small Capital ETF | | | 2,966 | | | | 71,154 | |
| Guggenheim Raymond James SB-1 Equity ETF | | | 2,689 | | | | 63,111 | |
| Guggenheim S&P 500 Equal Weight ETF | | | 4,396 | | | | 234,395 | |
| Guggenheim S&P 500 Equal Weight Financials ETF | | | 5,289 | | | | 154,235 | |
| Guggenheim S&P 500 Equal Weight Healthcare ETF | | | 359 | | | | 28,142 | |
| Guggenheim S&P 500 Equal Weight Technology ETF | | | 182 | | | | 10,059 | |
| Guggenheim S&P Midcap 400 Pure Growth ETF | | | 558 | | | | 50,923 | |
| iShares Dow Jones US Medical Devices Index Fund | | | 587 | | | | 39,681 | |
| iShares Dow Jones US Pharmaceuticals Index Fund | | | 563 | | | | 47,866 | |
| iShares MSCI Brazil Small Capital Index Fund | | | 1,431 | | | | 39,782 | |
| iShares MSCI EAFE Index Fund | | | 1,513 | | | | 85,969 | |
| iShares MSCI Emerging Markets Index Fund | | | 912 | | | | 40,447 | |
| iShares MSCI Europe Financial Sector Index Fund | | | 540 | | | | 10,692 | |
| iShares MSCI Pacific Ex-Japan Index Fund | | | 926 | | | | 43,652 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Equity Fund — 50.1% (continued)
| | | | | | | | |
| iShares MSCI South Korea Index Fund | | | 434 | | | $ | 27,498 | |
| iShares MSCI Taiwan Index Fund | | | 2,033 | | | | 27,690 | |
| iShares MSCI Thailand Investable Market Index Fund | | | 305 | | | | 25,159 | |
| iShares MSCI U.K. Small Capital Index Fund | | | 633 | | | | 19,338 | |
| iShares MSCI United Kingdom Index Fund | | | 3,228 | | | | 57,910 | |
| iShares Russell 1000 Growth Index Fund | | | 819 | | | | 53,636 | |
| iShares Russell 1000 Value Index Fund | | | 724 | | | | 52,722 | |
| iShares Russell 2000 Value Index Fund | | | 1,845 | | | | 139,316 | |
| iShares Russell Microcap(R) Index Fund | | | 933 | | | | 48,749 | |
| iShares S&P Latin America 40 Index Fund | | | 551 | | | | 24,156 | |
iShares S&P North American Natural Resources Sector
Index Fund | | | 3,421 | | | | 130,545 | |
| iShares S&P/TOPIX 150 Index Fund | | | 208 | | | | 8,830 | |
| Market Vectors Indonesia Index ETF | | | 220 | | | | 6,301 | |
| Market Vectors Russia ETF | | | 860 | | | | 25,774 | |
| Market Vectors Uranium+Nuclear Energy ETF | | | 2,173 | | | | 29,901 | |
| PowerShares Dynamic Market Portfolio | | | 771 | | | | 37,609 | |
| SPDR Euro Stoxx 50 ETF | | | 854 | | | | 29,600 | |
| SPDR Russell/Nomura SmallCap Japan ETF | | | 1,067 | | | | 45,187 | |
| SPDR S&P Emerging Markets SmallCap ETF | | | 1,582 | | | | 73,785 | |
| Vanguard REIT ETF | | | 100 | | | | 6,580 | |
| Total Equity Fund | | | | | | | 1,925,951 | |
Total Exchange Traded Funds
(Cost $2,715,388) | | | | | | | 2,793,431 | |
MONEY MARKET FUND — 27.0%
| | | | | | | | |
JP Morgan Prime Money Market Fund – Institutional Class,
(Cost $1,035,686) | | | 1,035,686 | | | | 1,035,686 | |
Total Investments Before Securities Sold, Not Yet Purchased
(Cost $3,766,905) | | | | | | | 3,846,664 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Equity Fund — 50.1% (continued)
| | | | | | | | |
Securities Sold, Not Yet Purchased — (1.5)%
| | | | | | | | |
EXCHANGE TRADED FUNDS — (1.5)%
| | | | | | | | |
Currency Fund — (1.3)%
| | | | | | | | |
| Currency Shares British Pound Sterling Trust* | | | 312 | | | $ | (50,142 | ) |
Equity Fund — (0.2)%
| | | | | | | | |
| iShares Russell 2000 Growth Index Fund | | | 75 | | | | (7,148 | ) |
Total Securities Sold, Not Yet Purchased
[Proceeds Received $(55,826)] | | | | | | | (57,290 | ) |
Total Investments – 98.6%
(Cost $3,711,079) | | | | | | | 3,789,374 | |
| Other Assets in Excess of Liabilities — 1.4% | | | | | | | 52,307 | |
| Net Assets — 100.0% | | | | | | $ | 3,841,681 | |
| ETF | — Exchange Traded Fund |
| ETN | — Exchange Traded Note |
| * | Non-income producing security. |
| (a) | All or a portion of the security is segregated as collateral in connection with swaps positions carried by the fund. |
| | |
| SUMMARY OF SCHEDULE OF INVESTMENTS | | % of
Net Assets |
| Asset Allocation Fund | | | 2.2 | % |
| Commodity Fund | | | 0.9 | |
| Currency Fund | | | (1.3 | ) |
| Debt Fund | | | 19.5 | |
| Equity Fund | | | 50.3 | |
| Money Market Fund | | | 27.0 | |
| Total Investments | | | 98.6 | |
| Other Assets in Excess of Liabilities | | | 1.4 | |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
Total Return Swaps contracts outstanding as of December 31, 2012
| | | | | | | | | | |
| Reference Entity | | Number of Contracts | | Termination Date | | Notional Amounts | | Fair
Value | | Unrealized Appreciation/(Depreciation) |
| CECE Net Total Return Index | | | 7 | | | | 1/15/2013 | | | $ | 19,194 | | | $ | 20,647 | | | $ | 1,453 | |
Currency Shares Japanese
Yen Trust | | | 318 | | | | 1/15/2013 | | | | 37,877 | | | $ | (36,047 | ) | | | 1,830 | |
EURO STOXX Large Net
Return USD | | | 53 | | | | 1/15/2013 | | | | 23,964 | | | $ | (24,795 | ) | | | (831 | ) |
| EURO STOXX Mid Net Return | | | 300 | | | | 1/15/2013 | | | | 113,139 | | | $ | 117,715 | | | | 4,576 | |
Market Vectors Russia
Small-Cap ETF | | | 2,788 | | | | 1/15/2013 | | | | 40,459 | | | $ | 42,495 | | | | 2,036 | |
| Net Unrealized Appreciation | | | | | | | | | | | | | | | | | | $ | 9,064 | |
Cash held as collateral with broker for swap contracts was $54,918 at December 31, 2012.
Societe Generale acts as the counterparty to the total return swap contract listed above. The Fund either receives fees from, or pay fees to, the counterparty, depending upon the total return of the benchmark, and the agreed-upon financing rate.
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
RANGER EQUITY BEAR ETF†
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
MONEY MARKET FUNDS — 46.2%
| | | | | | | | |
Fidelity Institutional Government Money Market
Portfolio – Class III | | | 51,157,432 | | | $ | 51,157,432 | |
Morgan Stanley Institutional Liquidity
Funds – Government Portfolio | | | 50,000,000 | | | | 50,000,000 | |
Total Investments Before Securities Sold, Not Yet
Purchased (Cost $101,157,432) | | | | | | | 101,157,432 | |
Securities Sold, Not Yet Purchased — (96.5)%
| | | | | | | | |
COMMON STOCKS — (96.5)%
| | | | | | | | |
Aerospace/Defense — (2.1)%
| | | | | | | | |
| Rockwell Collins, Inc. | | | 80,500 | | | | (4,682,685 | ) |
Apparel — (2.0)%
| | | | | | | | |
| Coach, Inc. | | | 80,500 | | | | (4,468,555 | ) |
Auto Parts & Equipment — (6.5)%
| | | | | | | | |
| Goodyear Tire & Rubber Co. (The)* | | | 887,700 | | | | (12,259,137 | ) |
| Johnson Controls, Inc. | | | 60,900 | | | | (1,869,630 | ) |
| Total Auto Parts & Equipment | | | | | | | (14,128,767 | ) |
Banks — (3.2)%
| | | | | | | | |
| Capital One Financial Corp. | | | 38,200 | | | | (2,212,926 | ) |
| Deutsche Bank AG (Germany)(a) | | | 107,300 | | | | (4,752,317 | ) |
| Total Banks | | | | | | | (6,965,243 | ) |
Beverages — (3.5)%
| | | | | | | | |
| Green Mountain Coffee Roasters, Inc.* | | | 187,200 | | | | (7,742,592 | ) |
Biotechnology — (3.0)%
| | | | | | | | |
| Exact Sciences Corp.* | | | 382,600 | | | | (4,051,734 | ) |
| Life Technologies Corp.* | | | 53,500 | | | | (2,625,780 | ) |
| Total Biotechnology | | | | | | | (6,677,514 | ) |
Chemicals — (3.7)%
| | | | | | | | |
| Cabot Corp. | | | 141,000 | | | | (5,610,390 | ) |
| Dow Chemical Co. (The) | | | 75,100 | | | | (2,427,232 | ) |
| Total Chemicals | | | | | | | (8,037,622 | ) |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
RANGER EQUITY BEAR ETF†
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Commercial Services — (2.2)%
| | | | | | | | |
| Parexel International Corp.* | | | 162,900 | | | $ | (4,820,211 | ) |
Computers — (0.9)%
| | | | | | | | |
| Cadence Design Systems, Inc.* | | | 153,500 | | | | (2,073,785 | ) |
Distribution/Wholesale — (4.9)%
| | | | | | | | |
| Fossil, Inc.* | | | 114,700 | | | | (10,678,570 | ) |
Diversified Financial Services — (2.2)%
| | | | | | | | |
| CME Group, Inc. | | | 93,400 | | | | (4,736,314 | ) |
Electronics — (1.3)%
| | | | | | | | |
| Agilent Technologies, Inc. | | | 66,885 | | | | (2,738,272 | ) |
Internet — (7.7)%
| | | | | | | | |
| Broadsoft, Inc.* | | | 138,400 | | | | (5,028,072 | ) |
| Constant Contact, Inc.* | | | 203,600 | | | | (2,893,156 | ) |
| NetEase, Inc. (Cayman Islands)*(b) | | | 113,900 | | | | (4,846,445 | ) |
| Splunk, Inc.* | | | 140,400 | | | | (4,074,408 | ) |
| Total Internet | | | | | | | (16,842,081 | ) |
Iron/Steel — (9.9)%
| | | | | | | | |
| Cliffs Natural Resources, Inc. | | | 324,000 | | | | (12,493,440 | ) |
| Vale SA (Brazil)(b) | | | 436,900 | | | | (9,157,424 | ) |
| Total Iron/Steel | | | | | | | (21,650,864 | ) |
Lodging — (0.9)%
| | | | | | | | |
| Caesars Entertainment Corp.* | | | 295,166 | | | | (2,042,549 | ) |
Machinery – Diversified — (1.5)%
| | | | | | | | |
| Cummins, Inc. | | | 29,700 | | | | (3,217,995 | ) |
Miscellaneous Manufacturing — (2.8)%
| | | | | | | | |
| Aptargroup, Inc. | | | 127,041 | | | | (6,062,397 | ) |
Oil & Gas — (3.9)%
| | | | | | | | |
| Baker Hughes, Inc. | | | 105,500 | | | | (4,308,620 | ) |
| Denbury Resources, Inc.* | | | 137,400 | | | | (2,225,880 | ) |
| Superior Energy Services, Inc.* | | | 100,600 | | | | (2,084,432 | ) |
| Total Oil & Gas | | | | | | | (8,618,932 | ) |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
RANGER EQUITY BEAR ETF†
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Pharmaceuticals — (2.2)%
| | | | | | | | |
| Perrigo Co. | | | 46,600 | | | $ | (4,847,798 | ) |
Retail — (12.4)%
| | | | | | | | |
| Chipotle Mexican Grill, Inc.* | | | 44,500 | | | | (13,236,970 | ) |
| Lululemon Athletica, Inc.* | | | 13,600 | | | | (1,036,728 | ) |
| Tiffany & Co. | | | 130,800 | | | | (7,500,072 | ) |
| Ulta Salon, Cosmetics & Fragrance, Inc. | | | 28,900 | | | | (2,839,714 | ) |
| Williams-Sonoma, Inc. | | | 57,200 | | | | (2,503,644 | ) |
| Total Retail | | | | | | | (27,117,128 | ) |
Semiconductors — (2.9)%
| | | | | | | | |
| Altera Corp. | | | 78,819 | | | | (2,714,526 | ) |
| First Solar, Inc.* | | | 118,800 | | | | (3,668,544 | ) |
| Total Semiconductors | | | | | | | (6,383,070 | ) |
Software — (6.1)%
| | | | | | | | |
| Concur Technologies, Inc.* | | | 50,700 | | | | (3,423,264 | ) |
| Nuance Communications, Inc.* | | | 166,200 | | | | (3,709,584 | ) |
| ServiceNow, Inc.* | | | 115,000 | | | | (3,453,450 | ) |
| Verifone Systems, Inc.* | | | 93,400 | | | | (2,772,112 | ) |
| Total Software | | | | | | | (13,358,410 | ) |
Telecommunications — (8.4)%
| | | | | | | | |
| Acme Packet, Inc.* | | | 103,900 | | | | (2,298,268 | ) |
| Centurylink, Inc. | | | 222,300 | | | | (8,696,376 | ) |
| ViaSat, Inc.* | | | 190,300 | | | | (7,402,670 | ) |
| Total Telecommunications | | | | | | | (18,397,314 | ) |
Transportation — (2.3)%
| | | | | | | | |
| FedEx Corp. | | | 28,200 | | | | (2,586,504 | ) |
| Kansas City Southern | | | 28,600 | | | | (2,387,527 | ) |
| Total Transportation | | | | | | | (4,974,031 | ) |
Total Securities Sold, Not Yet Purchased
[Proceeds Received $(194,060,108)] | | | | | | | (211,262,699 | ) |
Total Investments — (50.3)%
(Cost $(92,902,676)) | | | | | | | (110,105,267 | ) |
| Other Assets in Excess of Liabilities — 150.3% | | | | | | | 329,054,794 | |
| Net Assets — 100.0% | | | | | | $ | 218,949,527 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
RANGER EQUITY BEAR ETF†
Schedule of Investments (continued)
| † | Formerly Active Bear ETF |
| * | Non-income producing security |
| (b) | American Depositary Receipt |
Cash of $233,152,310 has been segregated to cover requirement for open short sales as of December 31, 2012.
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Aerospace/Defense | | | (2.1 | )% |
| Apparel | | | (2.0 | ) |
| Auto Parts & Equipment | | | (6.5 | ) |
| Banks | | | (3.2 | ) |
| Beverages | | | (3.5 | ) |
| Biotechnology | | | (3.0 | ) |
| Chemicals | | | (3.7 | ) |
| Commercial Services | | | (2.2 | ) |
| Computers | | | (0.9 | ) |
| Distribution/Wholesale | | | (4.9 | ) |
| Diversified Financial Services | | | (2.2 | ) |
| Electronics | | | (1.3 | ) |
| Internet | | | (7.7 | ) |
| Iron/Steel | | | (9.9 | ) |
| Lodging | | | (0.9 | ) |
| Machinery – Diversified | | | (1.5 | ) |
| Miscellaneous Manufacturing | | | (2.8 | ) |
| Oil & Gas | | | (3.9 | ) |
| Pharmaceuticals | | | (2.2 | ) |
| Retail | | | (12.4 | ) |
| Semiconductors | | | (2.9 | ) |
| Software | | | (6.1 | ) |
| Telecommunications | | | (8.4 | ) |
| Transportation | | | (2.3 | ) |
| Money Market Funds | | | 46.2 | |
| Total Investments | | | (50.3 | ) |
| Other Assets in Excess of Liabilities | | | 150.3 | |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
ROCKLEDGE SECTORSAM ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
EXCHANGE TRADED FUNDS — 101.5%
| | | | | | | | |
Equity Fund — 101.5%
| | | | | | | | |
| Financial Select Sector SPDR Fund(a) | | | 25,558 | | | $ | 419,152 | |
| Industrial Select Sector SPDR Fund(a) | | | 11,090 | | | | 420,311 | |
| Materials Select Sector SPDR Fund | | | 11,228 | | | | 421,499 | |
Total Investments Before Securities Sold, Not Yet Purchased
(Cost $1,243,733) | | | | | | | 1,260,962 | |
Securities Sold, Not Yet Purchased — (101.6)%
| | | | | | | | |
Equity Fund — (101.6)%
| | | | | | | | |
| Consumer Discretionary Select Sector SPDR Fund | | | 4,275 | | | | (202,763 | ) |
| Consumer Staples Select Sector SPDR Fund | | | 6,016 | | | | (209,537 | ) |
| Energy Select Sector SPDR Fund(a) | | | 2,649 | | | | (189,245 | ) |
| Health Care Select Sector SPDR Fund | | | 5,184 | | | | (207,101 | ) |
| Technology Select Sector SPDR Fund | | | 13,623 | | | | (394,386 | ) |
| Utilities Select Sector SPDR Fund | | | 1,680 | | | | (58,716 | ) |
Total Securities Sold, Not Yet Purchased
[Proceeds Received $(1,280,801)] | | | | | | | (1,261,748 | ) |
Total Investments — (0.1)%
(Cost $(37,068)) | | | | | | | (786 | ) |
| Other Assets in Excess of Liabilities — 100.1% | | | | | | | 1,242,868 | |
| Net Assets — 100.0% | | | | | | $ | 1,242,082 | |
| (a) | Represents security, or a portion thereof, segregated as collateral for securities sold, not yet purchased. |
Cash of $1,231,781 has been segregated to cover requirement for open short sales as of December 31, 2012.
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Equity Fund | | | (0.1 | )% |
| Total Investments | | | (0.1 | ) |
| Other Assets in Excess of Liabilities | | | 100.1 | |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
EXCHANGE TRADED FUNDS–64.8%
| | | | | | | | |
Commodity Fund — 12.2%
| | | | | | | | |
| PowerShares DB Precious Metals Fund* | | | 29,043 | | | $ | 1,658,065 | |
Debt Fund — 1.4%
| | | | | | | | |
| iShares iBoxx $ High Yield Corporate Bond Fund | | | 2,000 | | | | 186,700 | |
Equity Fund — 51.2%
| | | | | | | | |
| Energy Select Sector SPDR Fund | | | 24,283 | | | | 1,734,778 | |
| iShares Dow Jones US Real Estate Index Fund | | | 26,821 | | | | 1,735,855 | |
| iShares MSCI Emerging Markets Index Fund | | | 38,905 | | | | 1,725,437 | |
| SPDR S&P 500 ETF Trust | | | 12,215 | | | | 1,740,882 | |
| Total Equity Fund | | | | | | | 6,936,952 | |
Total Exchange Traded Funds
(Cost $8,778,449) | | | | | | | 8,781,717 | |
U.S. TREASURY NOTES — 14.4%
| | | | | | | | |
| U.S. Treasury Note, 4.25%, 08/15/13 | | | 950,000 | | | | 974,009 | |
| U.S. Treasury Note, 4.25%, 11/15/13 | | | 950,000 | | | | 983,621 | |
Total U.S. Treasury Notes
(Cost $1,958,060) | | | | | | | 1,957,630 | |
MONEY MARKET FUND — 20.3%
| | | | | | | | |
BlackRock Liquidity Funds -T- Fund
Portfolio — Institutional Class, 0.01%
(Cost $2,747,922) | | | 2,747,922 | | | | 2,747,922 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Contracts | | Value |
PURCHASED PUT OPTION — 1.4%
| | | | | | | | |
SPDR S&P 500 ETF Trust Option expiring
12/21/13 @ $115.00
(Cost $206,960) | | | 526 | | | $ | 182,785 | |
Total Investments Before Written Options — 100.9%
(Cost $13,691,391) | | | | | | | 13,670,054 | |
WRITTEN CALL OPTIONS — (0.9)%
| | | | | | | | |
Energy Select Sector SPDR Fund Option expiring
01/19/13, Strike Price $72.00 | | | (49 | ) | | | (5,268 | ) |
Energy Select Sector SPDR Fund Option expiring
01/19/13, Strike Price $73.00 | | | (193 | ) | | | (12,545 | ) |
iShares Dow Jones US Real Estate Index Fund Option
expiring 01/19/13, Strike Price $64.00 | | | (121 | ) | | | (13,855 | ) |
iShares Dow Jones US Real Estate Index Fund Option
expiring 01/19/13, Strike Price $65.00 | | | (43 | ) | | | (2,236 | ) |
iShares Dow Jones US Real Estate Index Fund Option
expiring 02/16/13, Strike Price $66.00 | | | (98 | ) | | | (5,194 | ) |
iShares iBoxx $ High Yield Corporate Bond Fund Option
expiring 02/16/13, Strike Price $94.00 | | | (20 | ) | | | (1,050 | ) |
iShares MSCI Emerging Markets Index Fund Option
expiring 01/19/13, Strike Price $43.00 | | | (76 | ) | | | (13,110 | ) |
iShares MSCI Emerging Markets Index Fund Option
expiring 01/19/13, Strike Price $44.00 | | | (179 | ) | | | (17,363 | ) |
iShares MSCI Emerging Markets Index Fund Option
expiring 02/16/13, Strike Price $45.00 | | | (134 | ) | | | (11,792 | ) |
PowerShares DB Precious Metals Fund Option expiring
01/19/13, Strike Price $60.00 | | | (50 | ) | | | (1,000 | ) |
PowerShares DB Precious Metals Fund Option expiring
01/19/13, Strike Price $61.00 | | | (56 | ) | | | (1,260 | ) |
PowerShares DB Precious Metals Fund Option expiring
02/16/13, Strike Price $57.00 | | | (75 | ) | | | (8,812 | ) |
PowerShares DB Precious Metals Fund Option expiring
02/16/13, Strike Price $58.00 | | | (75 | ) | | | (5,812 | ) |
SPDR S&P 500 ETF Trust Option expiring 01/19/13, Strike
Price $141.00 | | | (11 | ) | | | (3,520 | ) |
SPDR S&P 500 ETF Trust Option expiring 01/19/13, Strike
Price $143.00 | | | (13 | ) | | | (2,509 | ) |
SPDR S&P 500 ETF Trust Option expiring 02/16/13, Strike
Price $144.00 | | | (23 | ) | | | (5,842 | ) |
SPDR S&P 500 ETF Trust Option expiring 02/16/13, Strike
Price $148.00 | | | (75 | ) | | | (7,013 | ) |
Total Written Call Options
[Premiums Received $(96,005)] | | | | | | | (118,181 | ) |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Contracts | | Value |
WRITTEN PUT OPTIONS — (0.1)%
| | | | | | | | |
iShares iBoxx $ High Yield Corporate Bond Fund Option
expiring 01/19/13 @ 92.00 | | | (107 | ) | | $ | (3,210 | ) |
iShares iBoxx $ High Yield Corporate Bond Fund Option
expiring 01/19/2013 @ $93.00 | | | (14 | ) | | | (840 | ) |
iShares iBoxx $ High Yield Corporate Bond Fund Option
expiring 02/16/2013 @ 92.00 | | | (50 | ) | | | (4,250 | ) |
Total Written Put Options
[Premiums Received $(17,102)] | | | | | | | (8,300 | ) |
Total Written Options — (1.0)%
[Premiums Received $(113,107)] | | | | | | | (126,481 | ) |
Total Investments — 99.9%
(Cost $13,578,284) | | | | | | | 13,543,573 | |
| Other Assets in Excess of Liabilities — 0.1% | | | | | | | 13,865 | |
| Net Assets — 100.0% | | | | | | $ | 13,557,438 | |
ETF — Exchange Traded Fund
| * | Non-income producing security |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Commodity Fund | | | 12.2 | % |
| Debt Fund | | | 1.4 | |
| Equity Fund | | | 51.2 | |
| U.S. Treasury Notes | | | 14.4 | |
| Money Market Fund | | | 20.3 | |
| Purchased Put Option | | | 1.4 | |
| Written Call Options | | | (0.9 | ) |
| Written Put Options | | | (0.1 | ) |
| Total Investments | | | 99.9 | |
| Other Assets in Excess of Liabilities | | | 0.1 | |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
COMMON STOCKS — 100.3%
| | | | | | | | |
Beverages — 1.0%
| | | | | | | | |
| Constellation Brands, Inc., Class A* | | | 3,092 | | | $ | 109,426 | |
Biotechnology — 3.9%
| | | | | | | | |
| Alexion Pharmaceuticals, Inc.* | | | 1,179 | | | | 110,602 | |
| Biogen Idec, Inc.* | | | 720 | | | | 105,603 | |
| Gilead Sciences, Inc.* | | | 1,503 | | | | 110,395 | |
| PDL BioPharma, Inc. | | | 14,940 | | | | 105,327 | |
| Total Biotechnology | | | | | | | 431,927 | |
Chemicals — 2.0%
| | | | | | | | |
| NewMarket Corp. | | | 410 | | | | 107,502 | |
| Sherwin-Williams Co. (The) | | | 744 | | | | 114,442 | |
| Total Chemicals | | | | | | | 221,944 | |
Commercial Services — 9.9%
| | | | | | | | |
| Apollo Group, Inc., Class A* | | | 5,184 | | | | 108,449 | |
| Chemed Corp. | | | 1,600 | | | | 109,744 | |
| CoreLogic, Inc.* | | | 4,110 | | | | 110,641 | |
| DeVry, Inc. | | | 4,383 | | | | 104,009 | |
| Gartner, Inc.* | | | 2,421 | | | | 111,414 | |
| H&R Block, Inc. | | | 5,970 | | | | 110,863 | |
| MasterCard, Inc., Class A | | | 225 | | | | 110,538 | |
| Moody's Corp. | | | 2,296 | | | | 115,535 | |
| VistaPrint NV* | | | 3,222 | | | | 105,875 | |
| Weight Watchers International, Inc. | | | 2,160 | | | | 113,098 | |
| Total Commercial Services. | | | | | | | 1,100,166 | |
Computers — 6.3%
| | | | | | | | |
| CACI International, Inc., Class A* | | | 2,070 | | | | 113,912 | |
| Cognizant Technology Solutions Corp., Class A* | | | 1,539 | | | | 113,963 | |
| Fortinet, Inc.* | | | 5,355 | | | | 112,830 | |
| Jack Henry & Associates, Inc. | | | 2,880 | | | | 113,069 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Computers — 6.3% (continued)
| | | | | | | | |
| Teradata Corp.* | | | 1,854 | | | $ | 114,744 | |
| Western Digital Corp. | | | 2,956 | | | | 125,600 | |
| Total Computers. | | | | | | | 694,118 | |
Cosmetics/Personal Care — 1.0%
| | | | | | | | |
| Colgate-Palmolive Co. | | | 1,028 | | | | 107,467 | |
Diversified Financial Services — 5.1%
| | | | | | | | |
| Ameriprise Financial, Inc. | | | 1,809 | | | | 113,298 | |
| CBOE Holdings, Inc. | | | 3,726 | | | | 109,768 | |
| Eaton Vance Corp. | | | 3,562 | | | | 113,450 | |
| Federated Investors, Inc., Class B | | | 5,670 | | | | 114,704 | |
| World Acceptance Corp.* | | | 1,556 | | | | 116,015 | |
| Total Diversified Financial Services | | | | | | | 567,235 | |
Electric — 1.0%
| | | | | | | | |
| Duke Energy Corp. | | | 1,746 | | | | 111,395 | |
Electronics — 3.1%
| | | | | | | | |
| Tech Data Corp.* | | | 2,493 | | | | 113,506 | |
| Vishay Intertechnology, Inc.* | | | 11,000 | | | | 116,930 | |
| Watts Water Technologies, Inc., Class A | | | 2,680 | | | | 115,213 | |
| Total Electronics. | | | | | | | 345,649 | |
Engineering & Construction — 1.1%
| | | | | | | | |
| MasTec, Inc.* | | | 4,797 | | | | 119,589 | |
Entertainment — 3.0%
| | | | | | | | |
| Bally Technologies, Inc.* | | | 2,417 | | | | 108,064 | |
| International Game Technology | | | 7,654 | | | | 108,457 | |
| Six Flags Entertainment Corp. | | | 1,863 | | | | 114,016 | |
| Total Entertainment | | | | | | | 330,537 | |
Food — 3.9%
| | | | | | | | |
| Ingredion, Inc. | | | 1,728 | | | | 111,335 | |
| Kroger Co. (The) | | | 4,234 | | | | 110,169 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Food — 3.9% (continued)
| | | | | | | | |
| Sanderson Farms, Inc. | | | 2,223 | | | $ | 105,704 | |
| Smithfield Foods, Inc.* | | | 4,960 | | | | 106,987 | |
| Total Food | | | | | | | 434,195 | |
Healthcare – Products — 2.8%
| | | | | | | | |
| Edwards Lifesciences Corp.* | | | 1,215 | | | | 109,557 | |
| Idexx Laboratories, Inc.* | | | 1,158 | | | | 107,462 | |
| Intuitive Surgical, Inc.* | | | 198 | | | | 97,093 | |
| Total Healthcare – Products | | | | | | | 314,112 | |
Healthcare – Services — 2.0%
| | | | | | | | |
| Bio-Reference Laboratories, Inc.* | | | 3,852 | | | | 110,514 | |
| Coventry Health Care, Inc. | | | 2,502 | | | | 112,164 | |
| Total Healthcare – Services | | | | | | | 222,678 | |
Household Products/Wares — 2.0%
| | | | | | | | |
| Clorox Co. (The) | | | 1,450 | | | | 106,169 | |
| Scotts Miracle-Gro Co. (The), Class A | | | 2,600 | | | | 114,530 | |
| Total Household Products/Wares. | | | | | | | 220,699 | |
Housewares — 1.0%
| | | | | | | | |
| Toro Co. (The) | | | 2,628 | | | | 112,951 | |
Insurance — 2.0%
| | | | | | | | |
| Assurant, Inc. | | | 3,186 | | | | 110,554 | |
| Platinum Underwriters Holdings Ltd. | | | 2,457 | | | | 113,022 | |
| Total Insurance | | | | | | | 223,576 | |
Internet — 4.1%
| | | | | | | | |
| Expedia, Inc. | | | 1,911 | | | | 117,431 | |
| Opentable, Inc.* | | | 2,330 | | | | 113,704 | |
| Priceline.com, Inc.* | | | 180 | | | | 111,816 | |
| ValueClick, Inc.* | | | 5,786 | | | | 112,306 | |
| Total Internet | | | | | | | 455,257 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Investment Companies — 1.0%
| | | | | | | | |
| Apollo Investment Corp. | | | 13,662 | | | $ | 114,214 | |
Machinery – Diversified — 1.0%
| | | | | | | | |
| Flowserve Corp. | | | 774 | | | | 113,623 | |
Metal Fabricate/Hardware — 1.1%
| | | | | | | | |
| Mueller Industries, Inc. | | | 2,358 | | | | 117,971 | |
Miscellaneous Manufacturing — 0.9%
| | | | | | | | |
| Smith & Wesson Holding Corp.* | | | 11,349 | | | | 95,786 | |
Office/Business Equipment — 1.0%
| | | | | | | | |
| Xerox Corp. | | | 15,939 | | | | 108,704 | |
Oil & Gas — 3.1%
| | | | | | | | |
| CVR Energy, Inc.* | | | 2,403 | | | | 117,243 | |
| Delek US Holdings, Inc. | | | 4,248 | | | | 107,559 | |
| Plains Exploration & Production Co.* | | | 2,430 | | | | 114,064 | |
| Total Oil & Gas | | | | | | | 338,866 | |
Packaging & Containers — 2.1%
| | | | | | | | |
| Packaging Corp. of America. | | | 3,000 | | | | 115,410 | |
| Rock Tenn Co., Class A | | | 1,647 | | | | 115,142 | |
| Total Packaging & Containers | | | | | | | 230,552 | |
Pharmaceuticals — 5.0%
| | | | | | | | |
| Abbott Laboratories | | | 1,710 | | | | 112,005 | |
| Impax Laboratories, Inc.* | | | 5,562 | | | | 113,965 | |
| Mylan, Inc.* | | | 4,064 | | | | 111,679 | |
| Santarus, Inc.* | | | 10,728 | | | | 117,794 | |
| USANA Health Sciences, Inc.* | | | 2,952 | | | | 97,209 | |
| Total Pharmaceuticals | | | | | | | 552,652 | |
Real Estate Investment Trusts — 1.0%
| | | | | | | | |
| Extra Space Storage, Inc. | | | 3,177 | | | | 115,611 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Retail — 12.0%
| | | | | | | | |
| ANN, Inc.* | | | 3,393 | | | $ | 114,819 | |
| AutoNation, Inc.* | | | 2,853 | | | | 113,264 | |
| Copart, Inc.* | | | 3,692 | | | | 108,914 | |
| DSW, Inc., Class A | | | 1,746 | | | | 114,695 | |
| Dunkin' Brands Group, Inc. | | | 3,510 | | | | 116,462 | |
| Francesca's Holdings Corp.* | | | 4,536 | | | | 117,755 | |
| Gamestop Corp., Class A | | | 4,032 | | | | 101,163 | |
| GNC Holdings, Inc., Class A | | | 3,330 | | | | 110,822 | |
| Home Depot, Inc. (The) | | | 1,835 | | | | 113,495 | |
| MSC Industrial Direct Co., Inc., Class A | | | 1,566 | | | | 118,045 | |
| Nu Skin Enterprises, Inc., Class A | | | 2,438 | | | | 90,328 | |
| O'Reilly Automotive, Inc.* | | | 1,232 | | | | 110,165 | |
| Total Retail | | | | | | | 1,329,927 | |
Savings & Loans — 1.0%
| | | | | | | | |
| People's United Financial, Inc. | | | 9,153 | | | | 110,660 | |
Semiconductors — 6.1%
| | | | | | | | |
| KLA-Tencor Corp. | | | 2,358 | | | | 112,618 | |
| Lam Research Corp.* | | | 3,100 | | | | 112,003 | |
| Linear Technology Corp. | | | 3,312 | | | | 113,602 | |
| PMC-Sierra, Inc.* | | | 20,880 | | | | 108,785 | |
| Semtech Corp.* | | | 3,987 | | | | 115,424 | |
| Teradyne, Inc.* | | | 6,732 | | | | 113,703 | |
| Total Semiconductors | | | | | | | 676,135 | |
Software — 8.9%
| | | | | | | | |
| Allscripts Healthcare Solutions, Inc.* | | | 10,316 | | | | 97,177 | |
| athenahealth, Inc.* | | | 1,476 | | | | 108,412 | |
| Broadridge Financial Solutions, Inc. | | | 4,797 | | | | 109,755 | |
| CommVault Systems, Inc.* | | | 1,638 | | | | 114,185 | |
| Guidewire Software, Inc.* | | | 3,618 | | | | 107,527 | |
| Intuit, Inc. | | | 1,858 | | | | 110,551 | |
| Microsoft Corp. | | | 4,149 | | | | 110,903 | |
| MSCI, Inc.* | | | 3,717 | | | | 115,190 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Software — 8.9% (continued)
| | | | | | | | |
| Oracle Corp. | | | 3,510 | | | $ | 116,953 | |
| Total Software | | | | | | | 990,653 | |
Telecommunications — 0.9%
| | | | | | | | |
| InterDigital, Inc. | | | 2,550 | | | | 104,805 | |
Total Common Stocks
(Cost $11,028,336) | | | | | | | 11,123,080 | |
MONEY MARKET FUND — 0.9%
| | | | | | | | |
Wells Fargo Advantage Government Money Market
Fund – Institutional Class
(Cost $98,845) | | | 98,845 | | | | 98,845 | |
Total Investments — 101.2%
| | | | | | | | |
| (Cost $11,127,181) | | | | | | | 11,221,925 | |
| Liabilities in Excess of Other Assets — (1.2)% | | | | | | | (130,868 | ) |
| Net Assets — 100.0% | | | | | | $ | 11,091,057 | |
| * | Non-income producing security |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Beverages | | | 1.0 | % |
| Biotechnology | | | 3.9 | |
| Chemicals | | | 2.0 | |
| Commercial Services | | | 9.9 | |
| Computers | | | 6.3 | |
| Cosmetics/Personal Care | | | 1.0 | |
| Diversified Financial Services | | | 5.1 | |
| Electric | | | 1.0 | |
| Electronics | | | 3.1 | |
| Engineering & Construction | | | 1.1 | |
| Entertainment | | | 3.0 | |
| Food | | | 3.9 | |
| Healthcare — Products | | | 2.8 | |
| Healthcare — Services | | | 2.0 | |
| Household Products/Wares | | | 2.0 | |
| Housewares | | | 1.0 | |
| Insurance | | | 2.0 | |
| Internet | | | 4.1 | |
| Investment Companies | | | 1.0 | |
| Machinery — Diversified | | | 1.0 | |
| Metal Fabricate/Hardware | | | 1.1 | |
| Miscellaneous Manufacturing | | | 0.9 | |
| Office/Business Equipment | | | 1.0 | |
| Oil & Gas | | | 3.1 | |
| Packaging & Containers | | | 2.1 | |
| Pharmaceuticals | | | 5.0 | |
| Real Estate Investment Trusts | | | 1.0 | |
| Retail | | | 12.0 | |
| Savings & Loans | | | 1.0 | |
| Semiconductors | | | 6.1 | |
| Software | | | 8.9 | |
| Telecommunications | | | 0.9 | |
| Money Market Fund | | | 0.9 | |
| Total Investments | | | 101.2 | |
| Other Assets in Excess of Liabilities | | | (1.2 | ) |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
COMMON STOCKS — 96.1%
| | | | | | | | |
Beverages — 4.2%
| | | | | | | | |
| Coca-Cola Enterprises, Inc. | | | 9,259 | | | $ | 293,788 | |
Biotechnology — 3.7%
| | | | | | | | |
| Novozymes A/S (Denmark)(a) | | | 9,245 | | | | 261,633 | |
Chemicals — 4.1%
| | | | | | | | |
| Potash Corp. of Saskatchewan, Inc. (Canada) | | | 7,144 | | | | 290,689 | |
Commercial Services — 4.5%
| | | | | | | | |
| SGS SA (Switzerland)(a) | | | 14,053 | | | | 313,101 | |
Cosmetics/Personal Care — 5.4%
| | | | | | | | |
| L'Oreal SA (France)(a) | | | 13,412 | | | | 375,268 | |
Diversified Financial Services — 3.2%
| | | | | | | | |
| Lazard Ltd., Class A (Bermuda) | | | 7,469 | | | | 222,875 | |
Food — 14.1%
| | | | | | | | |
| BRF – Brasil Foods SA (Brazil)(a) | | | 11,359 | | | | 239,788 | |
| Jeronimo Martins, SGPS, SA (Portugal)(a) | | | 3,900 | | | | 151,710 | |
| Nestle SA (Switzerland)(a) | | | 4,388 | | | | 285,966 | |
| Shoprite Holdings Ltd. (South Africa)(a) | | | 3,430 | | | | 167,555 | |
| Want Want China Holdings Ltd. (Cayman Islands)(a) | | | 2,085 | | | | 145,742 | |
| Total Food | | | | | | | 990,761 | |
Forest Products & Paper — 2.2%
| | | | | | | | |
| Svenska Cellulosa AB (Sweden)(a) | | | 6,880 | | | | 151,222 | |
Healthcare – Products — 8.7%
| | | | | | | | |
| Essilor International SA (France)(a) | | | 6,502 | | | | 332,772 | |
| Shandong Weigao Group Medical Polymer Co. Ltd. (China)(a) | | | 29,435 | | | | 116,622 | |
| Sysmex Corp. (Japan)(a) | | | 7,070 | | | | 162,610 | |
| Total Healthcare – Products | | | | | | | 612,004 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
Holding Companies – Diversified — 2.6%
| | | | | | | | |
| LVMH Moet Hennessy Louis Vuitton SA (France)(a) | | | 4,842 | | | $ | 182,495 | |
Insurance — 4.1%
| | | | | | | | |
| ACE Ltd. (Switzerland) | | | 3,574 | | | | 285,205 | |
Internet — 2.2%
| | | | | | | | |
| Tencent Holdings Ltd. (Cayman Islands)(a) | | | 4,750 | | | | 155,088 | |
Machinery – Diversified — 4.0%
| | | | | | | | |
| Fanuc Corp. (Japan)(a) | | | 9,118 | | | | 283,296 | |
Oil & Gas Services — 3.7%
| | | | | | | | |
| Core Laboratories N.V. (Netherlands) | | | 2,402 | | | | 262,563 | |
Pharmaceuticals — 4.3%
| | | | | | | | |
| NOVO Nordisk A/S (Denmark)(a) | | | 1,861 | | | | 303,734 | |
Retail — 6.5%
| | | | | | | | |
| Arcos Dorados Holdings, Inc., Class A (Argentina) | | | 20,153 | | | | 241,030 | |
| Wal-Mart de Mexico SAB de CV (Mexico)(a) | | | 6,654 | | | | 218,118 | |
| Total Retail | | | | | | | 459,148 | |
Semiconductors — 12.4%
| | | | | | | | |
| Arm Holdings PLC (United Kingdom)(a) | | | 8,144 | | | | 308,088 | |
| ASML Holding N.V. (Netherlands) | | | 2,664 | | | | 171,588 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a) | | | 22,814 | | | | 391,488 | |
| Total Semiconductors | | | | | | | 871,164 | |
Transportation — 6.2%
| | | | | | | | |
| Canadian National Railway Co. (Canada) | | | 3,159 | | | | 287,501 | |
| Kuehne + Nagel International AG (Switzerland)(a) | | | 6,100 | | | | 148,413 | |
| Total Transportation | | | | | | | 435,914 | |
Total Common Stocks
(Cost $6,107,977) | | | | | | | 6,749,948 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
December 31, 2012 (Unaudited)
| | | | |
| Investments | | Shares | | Value |
MONEY MARKET FUND — 4.6%
| | | | | | | | |
Invesco Government & Agency Portfolio – Private Investment
Class (Cost $319,617) | | | 319,617 | | | $ | 319,617 | |
Total Investments — 100.7%
(Cost $6,427,594) | | | | | | | 7,069,565 | |
| Liabilities in Excess of Other Assets — (0.7)% | | | | | | | (46,005 | ) |
| Net Assets — 100.0% | | | | | | $ | 7,023,560 | |
| (a) | American Depositary Receipt |
SUMMARY OF SCHEDULE OF INVESTMENTS
| | |
| | % of
Net Assets |
| Beverages | | | 4.2 | % |
| Biotechnology | | | 3.7 | |
| Chemicals | | | 4.1 | |
| Commercial Services | | | 4.5 | |
| Cosmetics/Personal Care | | | 5.4 | |
| Diversified Financial Services | | | 3.2 | |
| Food | | | 14.1 | |
| Forest Products & Paper | | | 2.2 | |
| Healthcare – Products | | | 8.7 | |
| Holding Companies – Diversified | | | 2.6 | |
| Insurance | | | 4.1 | |
| Internet | | | 2.2 | |
| Machinery-Diversified | | | 4.0 | |
| Oil & Gas Services | | | 3.7 | |
| Pharmaceuticals. | | | 4.3 | |
| Retail | | | 6.5 | |
| Semiconductors | | | 12.4 | |
| Transportation | | | 6.2 | |
| Money Market Fund | | | 4.6 | |
| Total Investments | | | 100.7 | |
| Liabilities in Excess of Other Assets | | | (0.7 | ) |
| Net Assets | | | 100.0 | % |
See accompanying Notes to Financial Statements.
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ADVISORSHARES TRUST
Statements of Assets and Liabilities
December 31, 2012 (Unaudited)
| | | | | | | | |
| | Accuvest Global
Long Short
ETF | | Accuvest Global Opportunities ETF | | Cambria Global
Tactical
ETF | | Global
Alpha & Beta
ETF |
ASSETS
| | | | | | | | | | | | | | | | |
| Investments, at Cost | | $ | 27,851,955 | | | $ | 15,922,522 | | | $ | 61,022,356 | | | $ | 1,263,079 | |
| Investments in Affiliates, at Cost (Note 8) | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Investments, at Market Value | | | 30,356,936 | | | | 17,242,596 | | | | 64,913,633 | | | | 1,320,285 | |
| Investments in Affiliates, at Market Value (Note 8) | | | — | | | | — | | | | — | | | | — | |
| Cash | | | — | | | | — | | | | — | | | | — | |
| Cash collateral held at brokers | | | 12,279,345 | | | | — | | | | — | | | | — | |
| Receivable from Securities Sold | | | — | | | | — | | | | — | | | | — | |
| Unrealized Appreciation on Swaps Contracts | | | — | | | | — | | | | — | | | | — | |
| Dividend and Interest Receivable | | | 18 | | | | 1 | | | | 208,521 | | | | 1,711 | |
| Reclaim Receivable | | | — | | | | — | | | | — | | | | — | |
| Due from Investment Advisor | | | — | | | | — | | | | — | | | | 5,057 | |
| Deferred Offering Costs | | | — | | | | — | | | | — | | | | — | |
| Prepaid Trustee Fees | | | — | | | | 101 | | | | 58 | | | | — | |
| Prepaid Expenses | | | 2,585 | | | | 1,846 | | | | 8,338 | | | | 4,624 | |
| Total Assets | | | 42,638,884 | | | | 17,244,544 | | | | 65,130,550 | | | | 1,331,677 | |
LIABILITIES
| | | | | | | | | | | | | | | | |
| Due to Custodian | | | — | | | | — | | | | — | | | | — | |
| Securities Sold, Not Yet Purchased* | | | 14,428,555 | | | | — | | | | — | | | | — | |
| Options Written, at Value(a) | | | — | | | | — | | | | — | | | | — | |
| Unrealized Deprecation on Swaps Contracts | | | — | | | | — | | | | — | | | | — | |
| Advisory Payable | | | 24,245 | | | | 8,177 | | | | 46,748 | | | | — | |
| Payable for Securities Purchased | | | — | | | | — | | | | — | | | | — | |
| Capital Shares Payable | | | — | | | | — | | | | — | | | | — | |
| Distribution Payable | | | — | | | | 185,454 | | | | — | | | | 7,701 | |
| Dividend Payable on Securities Sold, Not Yet Purchased | | | 6,431 | | | | — | | | | — | | | | — | |
| Trustee Fees Payable | | | 13 | | | | — | | | | — | | | | 238 | |
| Interest Payable | | | 41,145 | | | | — | | | | 1,451,034 | | | | — | |
| Payable to Global Echo Foundation | | | — | | | | — | | | | — | | | | — | |
| Accrued Expenses | | | 41,653 | | | | 23,604 | | | | 53,795 | | | | 20,379 | |
| Total Liabilities | | | 14,542,042 | | | | 217,235 | | | | 1,551,577 | | | | 28,318 | |
| NET ASSETS | | $ | 28,096,842 | | | $ | 17,027,309 | | | $ | 63,578,973 | | | $ | 1,303,359 | |
COMPONENTS OF NET ASSETS
| | | | | | | | | | | | | | | | |
| Capital Stock at Zero Par Value | | $ | 31,490,143 | | | $ | 15,600,382 | | | $ | 79,471,212 | | | $ | 1,202,437 | |
| Undistributed Net Investment Income (Loss) | | | (535,665 | ) | | | (69,172 | ) | | | (283,118 | ) | | | (3,299 | ) |
| Accumulated Net Gain (Loss) on Investments, options written and swap transactions | | | (4,335,078 | ) | | | 176,025 | | | | (19,500,398 | ) | | | 47,015 | |
| Unrealized Appreciation (Depreciation) on Investments, optiions written and swaps | | | 1,477,442 | | | | 1,320,074 | | | | 3,891,277 | | | | 57,206 | |
| NET ASSETS | | $ | 28,096,842 | | | $ | 17,027,309 | | | $ | 63,578,973 | | | $ | 1,303,359 | |
SHARES ISSUED AND OUTSTANDING
| | | | | | | | | | | | | | | | |
| Shares Outstanding (Unlimited Shares Authorized) | | | 1,250,000 | | | | 600,000 | | | | 2,600,000 | | | | 50,000 | |
| Net Asset Value (NAV) Per Share | | $ | 22.48 | | | $ | 28.38 | | | $ | 24.45 | | | $ | 26.07 | |
| *Proceeds Received from Securities Sold, Not Yet Purchased | | $ | 13,401,016 | | | $ | — | | | $ | — | | | $ | — | |
| (a) Premiums Received for Options Written | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Assets and Liabilities
December 31, 2012 (Unaudited)
| | | | | | | | | | | | | | |
| | Global Echo ETF | | Madrona Domestic
ETF | | Madrona Global Bond ETF | | Madrona International ETF | | Meidell
Tactical Advantage
ETF | | Peritus
High Yield
ETF | | Pring Turner Business Cycle ETF |
ASSETS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments, at Cost | | $ | 4,983,056 | | | $ | 14,316,073 | | | $ | 22,171,822 | | | $ | 13,739,465 | | | $ | 6,983,730 | | | $ | 173,046,252 | | | $ | 2,375,961 | |
| Investments in Affiliates, at Cost (Note 8) | | $ | 16,047 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 125,124 | |
| Investments, at Market Value | | | 5,109,808 | | | | 15,226,746 | | | | 23,166,244 | | | | 15,021,455 | | | | 7,190,632 | | | | 173,311,135 | | | | 2,362,497 | |
| Investments in Affiliates, at Market Value (Note 8) | | | 15,410 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 124,975 | |
| Cash | | | — | | | | 395 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Cash collateral held at brokers | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Receivable from Securities Sold | | | 141,453 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Unrealized Appreciation on Swaps Contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Dividend and Interest Receivable | | | 12,051 | | | | 11,388 | | | | 41,335 | | | | 27,600 | | | | 9,348 | | | | 4,143,563 | | | | 4,726 | |
| Reclaim Receivable | | | — | | | | — | | | | — | | | | 2,606 | | | | — | | | | — | | | | — | |
| Due from Investment Advisor | | | — | | | | — | | | | — | | | | — | | | | 1,434 | | | | — | | | | 2,233 | |
| Deferred Offering Costs | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Prepaid Trustee Fees | | | — | | | | — | | | | — | | | | — | | | | — | | | | 48 | | | | — | |
| Prepaid Expenses | | | — | | | | 1,946 | | | | 2,566 | | | | 1,850 | | | | 606 | | | | 10,935 | | | | — | |
| Total Assets | | | 5,278,722 | | | | 15,240,475 | | | | 23,210,145 | | | | 15,053,511 | | | | 7,202,020 | | | | 177,465,681 | | | | 2,494,431 | |
LIABILITIES
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Due to Custodian | | | 23,426 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Securities Sold, Not Yet Purchased* | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Options Written, at Value(a) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Unrealized Deprecation on Swaps Contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Advisory Payable | | | 3,868 | | | | 1,922 | | | | 6,840 | | | | 2,544 | | | | — | | | | 165,684 | | | | — | |
| Payable for Securities Purchased | | | 112,197 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Capital Shares Payable | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Distribution Payable | | | — | | | | — | | | | — | | | | — | | | | 64,270 | | | | — | | | | — | |
| Dividend Payable on Securities Sold, Not Yet Purchased | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Trustee Fees Payable | | | — | | | | 5 | | | | 5 | | | | 5 | | | | 6 | | | | — | | | | 54 | |
| Interest Payable | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Payable to Global Echo Foundation | | | 1,407 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Accrued Expenses | | | — | | | | 39,402 | | | | 34,137 | | | | 40,095 | | | | 29,568 | | | | 84,385 | | | | 3,499 | |
| Total Liabilities | | | 140,898 | | | | 41,329 | | | | 40,982 | | | | 42,644 | | | | 93,844 | | | | 250,069 | | | | 3,553 | |
| NET ASSETS | | $ | 5,137,824 | | | $ | 15,199,146 | | | $ | 23,169,163 | | | $ | 15,010,867 | | | $ | 7,108,176 | | | $ | 177,215,612 | | | $ | 2,490,878 | |
COMPONENTS OF NET ASSETS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Stock at Zero Par Value | | $ | 5,037,095 | | | $ | 14,875,057 | | | $ | 22,142,454 | | | $ | 16,195,208 | | | $ | 7,242,772 | | | $ | 176,913,996 | | | $ | 2,500,000 | |
| Undistributed Net Investment Income (Loss) | | | (4,253 | ) | | | 590 | | | | 61,135 | | | | 3,481 | | | | (27,814 | ) | | | 6,038 | | | | 4,491 | |
Accumulated Net Gain (Loss) on Investments,
options written and swap transactions | | | (21,133 | ) | | | (587,174 | ) | | | (28,848 | ) | | | (2,469,812 | ) | | | (313,684 | ) | | | 30,695 | | | | — | |
Unrealized Appreciation (Depreciation) on Investments,
optiions written and swaps | | | 126,115 | | | | 910,673 | | | | 994,422 | | | | 1,281,990 | | | | 206,902 | | | | 264,883 | | | | (13,613 | ) |
| NET ASSETS | | $ | 5,137,824 | | | $ | 15,199,146 | | | $ | 23,169,163 | | | $ | 15,010,867 | | | $ | 7,108,176 | | | $ | 177,215,612 | | | $ | 2,490,878 | |
SHARES ISSUED AND OUTSTANDING
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares Outstanding (Unlimited Shares Authorized) | | | 100,000 | | | | 550,000 | | | | 875,000 | | | | 625,000 | | | | 275,000 | | | | 3,550,000 | | | | 100,000 | |
| Net Asset Value (NAV) Per Share | | $ | 51.38 | | | $ | 27.63 | | | $ | 26.48 | | | $ | 24.02 | | | $ | 25.85 | | | $ | 49.92 | | | $ | 24.91 | |
| *Proceeds Received from Securities Sold, Not Yet Purchased | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| (a) Premiums Received for Options Written | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Assets and Liabilities (continued)
December 31, 2012 (Unaudited)
| | | | | | | | | | | | |
| | QAM Equity Hedge
ETF | | Ranger
Equity Bear
ETF | | Rockledge
SectorSAM
ETF | | STAR Global Buy-Write
ETF | | TrimTabs
Float Shrink
ETF | | WCM/BNY
Mellon
Focused Growth
ADR ETF |
ASSETS
| | | | | | | | | | | | | | | | | | | | | | | | |
| Investments, at Cost | | $ | 3,766,905 | | | $ | 101,157,432 | | | $ | 1,243,733 | | | $ | 13,691,391 | | | $ | 11,127,181 | | | $ | 6,427,594 | |
| Investments in Affiliates, at Cost (Note 8) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Investments, at Market Value | | | 3,846,664 | | | | 101,157,432 | | | | 1,260,962 | | | | 13,670,054 | | | | 11,221,925 | | | | 7,069,565 | |
| Investments in Affiliates, at Market Value (Note 8) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Cash | | | 15 | | | | 116,422,758 | | | | 43,904 | | | | — | | | | — | | | | — | |
| Cash collateral held at brokers | | | 54,918 | | | | 233,152,310 | | | | 1,231,781 | | | | — | | | | — | | | | — | |
| Receivable from Securities Sold | | | — | | | | 9,090,230 | | | | 590,192 | | | | 260,790 | | | | — | | | | — | |
| Unrealized Appreciation on Swaps Contracts | | | 9,895 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Dividend and Interest Receivable | | | 3,209 | | | | 2,744 | | | | 7,866 | | | | 42,338 | | | | 4,642 | | | | 1,857 | |
| Reclaim Receivable | | | — | | | | — | | | | — | | | | — | | | | — | | | | 8,462 | |
| Due from Investment Advisor | | | 7,668 | | | | — | | | | 9,404 | | | | — | | | | 2,299 | | | | — | |
| Deferred Offering Costs | | | 27,501 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Prepaid Trustee Fees | | | — | | | | 34 | | | | — | | | | — | | | | — | | | | — | |
| Prepaid Expenses | | | 278 | | | | 34,975 | | | | 1,023 | | | | 31,680 | | | | 2,886 | | | | 463 | |
| Total Assets | | | 3,950,148 | | | | 459,860,483 | | | | 3,145,132 | | | | 14,004,862 | | | | 11,231,752 | | | | 7,080,347 | |
LIABILITIES
| | | | | | | | | | | | | | | | | | | | | | | | |
| Due to Custodian | | | — | | | | — | | | | — | | | | 1,819 | | | | 108,732 | | | | 11,208 | |
| Securities Sold, Not Yet Purchased* | | | 57,290 | | | | 211,262,699 | | | | 1,261,748 | | | | — | | | | — | | | | — | |
| Options Written, at Value(a) | | | — | | | | — | | | | — | | | | 126,481 | | | | — | | | | — | |
| Unrealized Deprecation on Swaps Contracts | | | 831 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Advisory Payable | | | — | | | | 328,223 | | | | — | | | | 9,884 | | | | — | | | | 3,290 | |
| Payable for Securities Purchased | | | 5,864 | | | | 25,284,331 | | | | 586,691 | | | | 186,256 | | | | — | | | | — | |
| Capital Shares Payable | | | — | | | | 3,687,830 | | | | — | | | | — | | | | — | | | | — | |
| Distribution Payable | | | 26,646 | | | | — | | | | 18,966 | | | | 109,016 | | | | — | | | | — | |
| Dividend Payable on Securities Sold, Not Yet Purchased | | | 43 | | | | 35,232 | | | | 9,112 | | | | — | | | | — | | | | — | |
| Trustee Fees Payable | | | 809 | | | | — | | | | 38 | | | | 70 | | | | 11 | | | | 14 | |
| Interest Payable | | | — | | | | 200,567 | | | | 153 | | | | — | | | | — | | | | — | |
| Payable to Global Echo Foundation | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Accrued Expenses | | | 16,984 | | | | 112,074 | | | | 26,342 | | | | 13,898 | | | | 31,952 | | | | 42,275 | |
| Total Liabilities | | | 108,467 | | | | 240,910,956 | | | | 1,903,050 | | | | 447,424 | | | | 140,695 | | | | 56,787 | |
| NET ASSETS | | $ | 3,841,681 | | | $ | 218,949,527 | | | $ | 1,242,082 | | | $ | 13,557,438 | | | $ | 11,091,057 | | | $ | 7,023,560 | |
COMPONENTS OF NET ASSETS
| | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Stock at Zero Par Value | | $ | 3,766,470 | | | $ | 305,976,564 | | | $ | 1,305,023 | | | $ | 13,614,994 | | | $ | 10,560,999 | | | $ | 6,801,503 | |
| Undistributed Net Investment Income (Loss) | | | (10,783 | ) | | | (8,183,715 | ) | | | (34,932 | ) | | | (77,763 | ) | | | (448 | ) | | | (145 | ) |
| Accumulated Net Gain (Loss) on Investments, options written and swap transactions | | | (1,365 | ) | | | (61,640,731 | ) | | | (64,291 | ) | | | 54,918 | | | | 435,762 | | | | (419,769 | ) |
| Unrealized Appreciation (Depreciation) on Investments, optiions written and swaps | | | 87,359 | | | | (17,202,591 | ) | | | 36,282 | | | | (34,711 | ) | | | 94,744 | | | | 641,971 | |
| NET ASSETS | | $ | 3,841,681 | | | $ | 218,949,527 | | | $ | 1,242,082 | | | $ | 13,557,438 | | | $ | 11,091,057 | | | $ | 7,023,560 | |
SHARES ISSUED AND OUTSTANDING
| | | | | | | | | | | | | | | | | | | | | | | | |
| Shares Outstanding (Unlimited Shares Authorized) | | | 150,000 | | | | 11,950,000 | | | | 50,000 | | | | 550,000 | | | | 325,000 | | | | 225,000 | |
| Net Asset Value (NAV) Per Share | | $ | 25.61 | | | $ | 18.32 | | | $ | 24.84 | | | $ | 24.65 | | | $ | 34.13 | | | $ | 31.22 | |
*Proceeds Received from
Securities Sold, Not Yet Purchased | | $ | 55,826 | | | $ | 194,060,108 | | | $ | 1,280,801 | | | $ | — | | | $ | — | | | $ | — | |
| (a) Premiums Received for Options Written | | $ | — | | | $ | — | | | $ | — | | | $ | 113,107 | | | $ | — | | | $ | — | |
See accompanying Notes to Financial Statements.
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ADVISORSHARES TRUST
Statements of Operations
For the Six Months Ended December 31, 2012 (Unaudited)
| | | | | | | | |
| | Accuvest Global Long Short ETF | | Accuvest Global Opportunities ETF | | Cambria Global Tactical ETF | | Global Alpha & Beta ETF(1) |
INVESTMENT INCOME:
| | | | | | | | | | | | | | | | |
| Dividend Income | | $ | 159,447 | | | $ | 83,652 | | | $ | 1,199,422 | | | $ | 13,550 | |
| Dividend Income from Affiliates | | | — | | | | — | | | | — | | | | — | |
| Interest Income | | | 19 | | | | 1 | | | | 7,501 | | | | 10 | |
| Foreign withholding tax | | | — | | | | — | | | | — | | | | (245 | ) |
| Total Investment Income | | | 159,466 | | | | 83,653 | | | | 1,206,923 | | | | 13,315 | |
EXPENSES:
| | | | | | | | | | | | | | | | |
| Advisory Fees | | | 169,054 | | | | 73,063 | | | | 325,718 | | | | 7,889 | |
| Dividend Expense | | | 105,853 | | | | — | | | | — | | | | — | |
| Professional Fees | | | 52,551 | | | | 19,881 | | | | 19,087 | | | | 19,261 | |
| Accounting & Administration Fees | | | 9,796 | | | | 10,308 | | | | 37,418 | | | | 7,467 | |
| Exchange Listing Fees | | | 5,301 | | | | 8,492 | | | | 1,360 | | | | 9,304 | |
| Pricing Fees | | | 3,290 | | | | 750 | | | | 1,600 | | | | 2,734 | |
| Report to Shareholders | | | 1,900 | | | | 4,327 | | | | 5,188 | | | | 4,078 | |
| Custody Fees | | | 1,811 | | | | 496 | | | | 2,578 | | | | 1,148 | |
| Insurance Fees | | | 392 | | | | 769 | | | | — | | | | 2,248 | |
| Transfer Agent Fees | | | 792 | | | | 506 | | | | 2,634 | | | | 557 | |
| Trustee Fees | | | 932 | | | | 819 | | | | 862 | | | | 808 | |
| Interest on Securities Sold Short | | | 206,622 | | | | — | | | | — | | | | — | |
| Contribution to Global Echo Foundation | | | — | | | | — | | | | — | | | | — | |
| Licensing Fees | | | — | | | | — | | | | — | | | | — | |
| Registration Fees | | | — | | | | 254 | | | | — | | | | 26 | |
| Miscellaneous Fees | | | 790 | | | | — | | | | 558 | | | | 73 | |
| Total Expenses | | | 559,084 | | | | 119,665 | | | | 397,003 | | | | 55,593 | |
| Advisory Fees Waived/Recoupment | | | (58,772 | ) | | | (23,530 | ) | | | (8,379 | ) | | | (45,732 | ) |
| Expense Reimbursement | | | — | | | | — | | | | — | | | | — | |
| Net Expenses | | | 500,312 | | | | 96,135 | | | | 388,624 | | | | 9,861 | |
| Net Investment Income (Loss) | | | (340,846 | ) | | | (12,482 | ) | | | 818,299 | | | | 3,454 | |
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT, OPTIONS WRITTEN AND SWAP TRANSACTIONS:
| | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on:
| | | | | | | | | | | | | | | | |
| Investments | | | 160,750 | | | | 62,557 | | | | 321,213 | | | | (87 | ) |
| In-Kind Redemptions | | | 1,803,244 | | | | 1,213,458 | | | | 1,118,367 | | | | 48,050 | |
| Swaps | | | — | | | | — | | | | — | | | | — | |
| Short Sales | | | (1,084,869 | ) | | | — | | | | (12,752 | ) | | | — | |
| Options Written | | | — | | | | — | | | | — | | | | — | |
| Distributions by other Investments Companies | | | — | | | | — | | | | 3,330 | | | | — | |
Net Change in Unrealized Appreciation (Depreciation) on:
| | | | | | | | | | | | | | | | |
| Investments | | | 2,079,853 | | | | 1,223,316 | | | | 1,563,844 | | | | 57,206 | |
| Short Sales | | | (1,183,272 | ) | | | — | | | | — | | | | — | |
| Swaps | | | — | | | | — | | | | — | | | | — | |
| Options Written | | | — | | | | — | | | | — | | | | — | |
| Net Realized and Unrealized Gain (Loss) | | | 1,775,706 | | | | 2,499,331 | | | | 2,994,002 | | | | 105,169 | |
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS | | $ | 1,434,860 | | | $ | 2,486,849 | | | $ | 3,812,301 | | | $ | 108,623 | |
| (1) | Represents the period July 10, 2012 (commencement of operations) to December 31, 2012. |
| (2) | Represents the period December 18, 2012 (commencement of operations) to December 31, 2012. |
| (3) | Represents the period August 7, 2012 (commencement of operations) to December 31, 2012. |
| (4) | Represents the period September 17, 2012 (commencement of operations) to December 31, 2012. |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Operations
For the Six Months Ended December 31, 2012 (Unaudited)
| | | | | | | | | | |
| | Global Echo ETF | | Madrona
Domestic ETF | | Madrona
Global Bond ETF | | Madrona International ETF | | Meidell Tactical Advantage ETF |
| INVESTMENT INCOME: | | | | | | | | | | | | | | | | | | | | |
| Dividend Income | | $ | 20,035 | | | $ | 153,048 | | | $ | 460,092 | | | $ | 153,145 | | | $ | 79,981 | |
| Dividend Income from Affiliates | | | — | | | | — | | | | — | | | | — | | | | — | |
| Interest Income | | | 13,441 | | | | 81 | | | | 169 | | | | 144 | | | | 78 | |
| Foreign withholding tax | | | (363 | ) | | | — | | | | — | | | | (16,974 | ) | | | — | |
| Total Investment Income | | | 33,113 | | | | 153,129 | | | | 460,261 | | | | 136,315 | | | | 80,059 | |
| EXPENSES: | | | | | | | | | | | | | | | | | | | | |
| Advisory Fees | | | 27,402 | | | | 61,700 | | | | 56,964 | | | | 58,113 | | | | 60,004 | |
| Dividend Expense | | | — | | | | — | | | | — | | | | — | | | | — | |
| Professional Fees | | | — | | | | 17,252 | | | | 17,743 | | | | 17,251 | | | | 8,547 | |
| Accounting & Administration Fees | | | — | | | | 26,231 | | | | 23,900 | | | | 24,287 | | | | 23,698 | |
| Exchange Listing Fees | | | — | | | | 4,410 | | | | 4,410 | | | | 4,410 | | | | 4,063 | |
| Pricing Fees | | | — | | | | 2,548 | | | | 2,548 | | | | 2,548 | | | | 2,548 | |
| Report to Shareholders | | | — | | | | 1,979 | | | | 1,779 | | | | 1,649 | | | | 1,327 | |
| Custody Fees | | | — | | | | 8,418 | | | | 610 | | | | 9,660 | | | | 846 | |
| Insurance Fees | | | — | | | | — | | | | — | | | | — | | | | 382 | |
| Transfer Agent Fees | | | — | | | | 526 | | | | 818 | | | | 477 | | | | 158 | |
| Trustee Fees | | | — | | | | 925 | | | | 925 | | | | 925 | | | | 926 | |
| Interest on Securities Sold Short | | | — | | | | — | | | | — | | | | — | | | | — | |
| Contribution to Global Echo Foundation | | | 9,964 | | | | — | | | | — | | | | — | | | | — | |
| Licensing Fees | | | — | | | | — | | | | — | | | | — | | | | — | |
| Registration Fees | | | — | | | | | | | | 347 | | | | 114 | | | | 105 | |
| Miscellaneous Fees | | | — | | | | 72 | | | | 155 | | | | 67 | | | | 142 | |
| Total Expenses | | | 37,366 | | | | 124,061 | | | | 110,199 | | | | 119,501 | | | | 102,746 | |
| Advisory Fees Waived/Recoupment | | | — | | | | (27,655 | ) | | | (1,968 | ) | | | (28,700 | ) | | | (61,001 | ) |
| Expense Reimbursement | | | — | | | | — | | | | — | | | | — | | | | 2,265 | |
| Net Expenses | | | 37,366 | | | | 96,406 | | | | 108,231 | | | | 90,801 | | | | 44,010 | |
| Net Investment Income (Loss) | | | (4,253 | ) | | | 56,723 | | | | 352,030 | | | | 45,514 | | | | 36,049 | |
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT, OPTIONS WRITTEN AND SWAP TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | |
| Net Realized Gain (Loss) on: | | | | | | | | | | | | | | | | | | | | |
| Investments | | | (70,002 | ) | | | (305,675 | ) | | | (65,980 | ) | | | (596,662 | ) | | | 44,686 | |
| In-Kind Redemptions | | | 79,304 | | | | 756,845 | | | | 47,761 | | | | 83,530 | | | | — | |
| Swaps | | | — | | | | — | | | | — | | | | — | | | | — | |
| Short Sales | | | (725 | ) | | | — | | | | — | | | | — | | | | — | |
| Options Written | | | — | | | | — | | | | — | | | | — | | | | — | |
| Distributions by other Investments Companies | | | — | | | | — | | | | — | | | | — | | | | — | |
Net Change in Unrealized Appreciation (Depreciation) on:
| | | | | | | | | | | | | | | | | | | | |
| Investments | | | 67,655 | | | | 893,117 | | | | 634,735 | | | | 2,534,773 | | | | 188,964 | |
| Short Sales | | | — | | | | — | | | | — | | | | — | | | | — | |
| Swaps | | | — | | | | — | | | | — | | | | — | | | | — | |
| Options Written | | | — | | | | — | | | | — | | | | — | | | | — | |
| Net Realized and Unrealized Gain (Loss) | | | 76,232 | | | | 1,344,287 | | | | 616,516 | | | | 2,021,641 | | | | 233,650 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATONS | | $ | 71,979 | | | $ | 1,401,010 | | | $ | 968,546 | | | $ | 2,067,155 | | | $ | 269,699 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Operations (continued)
For the Six Months Ended December 31, 2012 (Unaudited)
| | | | | | |
| | Peritus High Yield ETF | | Pring Turner Business Cycle ETF(2) | | QAM Equity Hedge ETF(3) |
INVESTMENT INCOME:
| | | | |
| Dividend Income | | $ | — | | | $ | 4,726 | | | $ | 19,412 | |
| Dividend Income from Affiliates | | | — | | | | 1,085 | | | | — | |
| Interest Income | | | 6,857,400 | | | | — | | | | 341 | |
| Foreign withholding tax | | | — | | | | — | | | | — | |
| Total Investment Income | | | 6,857,400 | | | | 5,811 | | | | 19,753 | |
EXPENSES:
| | | | | | | | | | | | |
| Advisory Fees | | | 742,785 | | | | 886 | | | | 12,543 | |
| Dividend Expense | | | — | | | | — | | | | 174 | |
| Professional Fees | | | 60,084 | | | | 1,175 | | | | 28,357 | |
| Accounting & Administration Fees | | | 39,039 | | | | 668 | | | | 6,379 | |
| Exchange Listing Fees | | | 2,403 | | | | 712 | | | | 6,251 | |
| Pricing Fees | | | 5,891 | | | | 214 | | | | 2,913 | |
| Report to Shareholders | | | 6,645 | | | | 285 | | | | 4,244 | |
| Custody Fees | | | 7,347 | | | | 143 | | | | 1,935 | |
| Insurance Fees | | | — | | | | 249 | | | | 1,934 | |
| Transfer Agent Fees | | | 4,557 | | | | 53 | | | | 610 | |
| Trustee Fees | | | 871 | | | | 54 | | | | 1,378 | |
| Interest on Securities Sold Short | | | — | | | | — | | | | 268 | |
| Contribution to Global Echo Foundation | | | — | | | | — | | | | — | |
| Licensing Fees | | | — | | | | — | | | | — | |
| Registration Fees | | | 2,699 | | | | | | | | 98 | |
| Miscellaneous Fees | | | 325 | | | | — | | | | 117 | |
| Total Expenses | | | 872,646 | | | | 4,439 | | | | 67,201 | |
| Advisory Fees Waived/Recoupment | | | 30,881 | | | | (3,119 | ) | | | (47,945 | ) |
| Expense Reimbursement | | | (149 | ) | | | — | | | | — | |
| Net Expenses | | | 903,378 | | | | 1,320 | | | | 19,256 | |
| Net Investment Income (Loss) | | | 5,954,022 | | | | 4,491 | | | | 497 | |
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT, OPTIONS WRITTEN AND SWAP
TRANSACTIONS:
| | | | | | | | | | | | |
| Net Realized Gain (Loss) on: | | | | | | | | | | | | |
| Investments | | | 96,993 | | | | — | | | | 7,065 | |
| In-Kind Redemptions | | | — | | | | — | | | | — | |
| Swaps | | | — | | | | — | | | | 6,980 | |
| Short Sales | | | — | | | | — | | | | (44 | ) |
| Options Written | | | — | | | | — | | | | — | |
| Distributions by other Investments Companies | | | 18 | | | | — | | | | — | |
Net Change in Unrealized Appreciation (Depreciation) on:
| | | | | | | | | | | | |
| Investments | | | 3,279,605 | | | | (13,613 | ) | | | 79,759 | |
| Short Sales | | | — | | | | — | | | | (1,464 | ) |
| Swaps | | | — | | | | — | | | | 9,064 | |
| Options Written | | | — | | | | — | | | | — | |
| Net Realized and Unrealized Gain (Loss) | | | 3,376,616 | | | | (13,613 | ) | | | 101,360 | |
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS | | $ | 9,330,638 | | | $ | (9,122 | ) | | $ | 101,857 | |
| (1) | Represents the period July 10, 2012 (commencement of operations) to December 31, 2012. |
| (2) | Represents the period December 18, 2012 (commencement of operations) to December 31, 2012. |
| (3) | Represents the period August 7, 2012 (commencement of operations) to December 31, 2012. |
| (4) | Represents the period September 17, 2012 (commencement of operations) to December 31, 2012. |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Operations
For the Six Months Ended December 31, 2012 (Unaudited)
| | | | | | | | | | |
| | Ranger Equity
Bear ETF | | Rockledge
SectorSAM | | STAR Global Buy-Write ETF(4) | | TrimTabs Float
Shrink ETF | | WCM/BNY Mellon Focused Growth ADR ETF |
| INVESTMENT INCOME: | | | | | | | | | | | | | | | | | | | | |
| Dividend Income | | $ | — | | | $ | 10,280 | | | $ | 61,655 | | | $ | 103,178 | | | $ | 48,413 | |
| Dividend Income from Affiliates | | | — | | | | — | | | | — | | | | — | | | | — | |
| Interest Income | | | 17,112 | | | | — | | | | — | | | | 3 | | | | 38 | |
| Foreign withholding tax | | | — | | | | — | | | | — | | | | — | | | | (4,507 | ) |
| Total Investment Income | | | 17,112 | | | | 10,280 | | | | 61,655 | | | | 103,181 | | | | 43,944 | |
| EXPENSES: | | | | | | | | | | | | | | | | | | | | |
| Advisory Fees | | | 2,383,695 | | | | 59,677 | | | | 34,720 | | | | 46,791 | | | | 59,677 | |
| Dividend Expense | | | 1,492,789 | | | | 13,734 | | | | — | | | | — | | | | — | |
| Professional Fees | | | 9,108 | | | | 26,264 | | | | 19,004 | | | | 18,029 | | | | 20,920 | |
| Accounting & Administration Fees | | | 70,119 | | | | 10,595 | | | | 4,725 | | | | 15,535 | | | | 28,379 | |
| Exchange Listing Fees | | | 128 | | | | 9,159 | | | | 6,284 | | | | 12,654 | | | | 2,443 | |
| Pricing Fees | | | 7,457 | | | | 4,369 | | | | 2,286 | | | | 2,308 | | | | 1,468 | |
| Report to Shareholders | | | 17,232 | | | | 2,065 | | | | 3,423 | | | | 1,531 | | | | 2,293 | |
| Custody Fees | | | 13,094 | | | | 511 | | | | 1,688 | | | | 4,232 | | | | 338 | |
| Insurance Fees | | | 1,464 | | | | 371 | | | | 471 | | | | 411 | | | | 407 | |
| Transfer Agent Fees | | | 13,620 | | | | 50 | | | | 741 | | | | 243 | | | | 885 | |
| Trustee Fees | | | 886 | | | | 957 | | | | 589 | | | | 931 | | | | 934 | |
| Interest on Securities Sold Short | | | 1,302,316 | | | | 3,749 | | | | — | | | | — | | | | — | |
| Contribution to Global Echo Foundation | | | — | | | | — | | | | — | | | | — | | | | — | |
| Licensing Fees | | | — | | | | — | | | | — | | | | — | | | | 693 | |
| Registration Fees | | | 8,195 | | | | 8 | | | | 293 | | | | 88 | | | | | |
| Miscellaneous Fees | | | 335 | | | | 43 | | | | 72 | | | | 11 | | | | 52 | |
| Total Expenses | | | 5,320,438 | | | | 131,552 | | | | 74,296 | | | | 102,764 | | | | 118,489 | |
| Advisory Fees Waived/Recoupment | | | — | | | | (99,765 | ) | | | (26,717 | ) | | | (55,973 | ) | | | (76,577 | ) |
| Expense Reimbursement | | | — | | | | — | | | | — | | | | — | | | | — | |
| Net Expenses | | | 5,320,438 | | | | 31,787 | | | | 47,579 | | | | 46,791 | | | | 41,912 | |
| Net Investment Income (Loss) | | | (5,303,326 | ) | | | (21,507 | ) | | | 14,076 | | | | 56,390 | | | | 2,032 | |
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT, OPTIONS WRITTEN AND SWAP TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | |
| Net Realized Gain (Loss) on: | | | | | | | | | | | | | | | | | | | | |
| Investments | | | (49,526,431 | ) | | | 168,574 | | | | (25,142 | ) | | | (61,842 | ) | | | (258,933 | ) |
| In-Kind Redemptions | | | — | | | | 55,748 | | | | — | | | | 547,209 | | | | — | |
| Swaps | | | — | | | | — | | | | — | | | | — | | | | — | |
| Short Sales | | | — | | | | (216,735 | ) | | | — | | | | — | | | | — | |
| Options Written | | | — | | | | — | | | | 97,237 | | | | — | | | | — | |
| Distributions by other Investments Companies | | | — | | | | — | | | | — | | | | — | | | | 25 | |
| Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investments | | | — | | | | (48,560 | ) | | | (21,337 | ) | | | (222,482 | ) | | | 832,436 | |
| Short Sales | | | (23,793,172 | ) | | | 84,977 | | | | — | | | | — | | | | — | |
| Swaps | | | — | | | | — | | | | — | | | | — | | | | — | |
| Options Written | | | — | | | | — | | | | (13,374 | ) | | | — | | | | — | |
| Net Realized and Unrealized Gain (Loss) | | | (73,319,603 | ) | | | 44,004 | | | | 37,384 | | | | 262,885 | | | | 573,528 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATONS | | $ | (78,622,929 | ) | | $ | 22,497 | | | $ | 51,460 | | | $ | 319,275 | | | $ | 575,560 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Changes in Net Assets
| | | | | | | | |
| |
Accuvest Global Long Short ETF | | Accuvest Global Opportunities ETF |
| | |
Six months
ended
December 31,
2012
(Unaudited) | | Year
ended
June 30,
2012 | | Six months
ended
December 31,
2012
(Unaudited) | | For the period
January 25, 2012*
to
June 30, 2012 |
INCREASE (DECREASE) IN NET ASSETS
| | | | | | | | | | | | | | | | |
OPERATIONS
| | | | | | | | | | | | | | | | |
| Net Investment Income (Loss) | | $ | (340,846 | ) | | $ | (275,255 | ) | | $ | (12,482 | ) | | $ | 128,764 | |
| Net Realized Gain (Loss) | | | 879,125 | | | | (713,322 | ) | | | 1,276,015 | | | | (1,099,990 | ) |
| Net Change in Unrealized Appreciation (Depreciation) | | | 896,581 | | | | 1,412,849 | | | | 1,223,316 | | | | 96,758 | |
| Net Increase (Decrease) In Net Assets Resulting From Operations | | | 1,434,860 | | | | 424,272 | | | | 2,486,849 | | | | (874,468 | ) |
DISTRIBUTIONS TO SHAREHOLDERS FROM
| | | | | | | | | | | | | | | | |
| Net Investment Income | | | — | | | | — | | | | (185,454 | ) | | | — | |
| Net Realized Gains | | | — | | | | (46,188 | ) | | | — | | | | — | |
| Total Distributions | | | — | | | | (46,188 | ) | | | (185,454 | ) | | | — | |
CAPITAL STOCK TRANSACTIONS
| | | | | | | | | | | | | | | | |
| Proceeds from Shares Issued | | | 41,142,005 | | | | 18,018,647 | | | | 30,864,994 | | | | 14,316,721 | |
| Value of Shares Redeemed | | | (32,501,987 | ) | | | (9,760,167 | ) | | | (29,581,333 | ) | | | — | |
| Net Increase (Decrease) From Capital Stock Transactions | | | 8,640,018 | | | | 8,258,480 | | | | 1,283,661 | | | | 14,316,721 | |
Net Increase (Decrease) in
Net Assets | | | 10,074,878 | | | | 8,636,564 | | | | 3,585,056 | | | | 13,442,253 | |
Net Assets:
| | | | | | | | | | | | | | | | |
| Beginning of Period | | | 18,021,964 | | | | 9,385,400 | | | | 13,442,253 | | | | — | |
| End of Period | | $ | 28,096,842 | | | $ | 18,021,964 | | | $ | 17,027,309 | | | $ | 13,442,253 | |
| Undistributed Net Investment Income (Loss) | | $ | (535,665 | ) | | $ | (194,819 | ) | | $ | (69,172 | ) | | $ | 128,764 | |
Changes in Shares Outstanding
| | | | | | | | | | | | | | | | |
Shares Outstanding, Beginning
of Year | | | 850,000 | | | | 450,000 | | | | 550,000 | | | | — | |
| Shares Sold | | | 1,900,000 | | | | 850,000 | | | | 1,175,000 | | | | 550,000 | |
| Shares Repurchased | | | (1,500,000 | ) | | | (450,000 | ) | | | (1,125,000 | ) | | | — | |
| End of Period | | | 1,250,000 | | | | 850,000 | | | | 600,000 | | | | 550,000 | |
| * | Commencement of operations |
| (1) | Formerly Active Bear ETF. |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Changes in Net Assets
| | | | | | | | | | | | | | |
| | Cambria Global Tactical ETF | | Global Alpha & Beta ETF | | Global Echo ETF | | Madrona Domestic ETF |
| | | Six months
ended
December 31,
2012
(Unaudited) | | Year
ended
June 30,
2012 | | For the period
July 10, 2012*
to
December 31, 2012
(Unaudited) | | Six months
ended
December 31,
2012
(Unaudited) | | For the period
May 23, 2012*
to
June 30, 2012 | | Six months
ended
December 31,
2012
(Unaudited) | | Year
ended
June 30,
2012 |
| INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
OPERATIONS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income (Loss) | | $ | 818,299 | | | $ | 1,200,751 | | | $ | 3,454 | | | $ | (4,253 | ) | | $ | (5,492 | ) | | $ | 56,723 | | | $ | 59,535 | |
| Net Realized Gain (Loss) | | | 1,430,158 | | | | (15,287,214 | ) | | | 47,963 | | | | 8,577 | | | | (57,292 | ) | | | 451,170 | | | | (760,024 | ) |
Net Change in Unrealized
Appreciation (Depreciation) | | | 1,563,844 | | | | 81,278 | | | | 57,206 | | | | 67,655 | | | | 58,460 | | | | 893,117 | | | | (88,849 | ) |
Net Increase (Decrease) In Net
Assets Resulting From
Operations | | | 3,812,301 | | | | (14,005,185 | ) | | | 108,623 | | | | 71,979 | | | | (4,324 | ) | | | 1,401,010 | | | | (789,338 | ) |
DISTRIBUTIONS TO
SHAREHOLDERS FROM | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income | | | (1,451,034 | ) | | | (1,214,084 | ) | | | (6,753 | ) | | | — | | | | — | | | | (73,945 | ) | | | (39,582 | ) |
| Net Realized Gains | | | — | | | | — | | | | (948 | ) | | | (23,426 | ) | | | — | | | | — | | | | — | |
| Total Distributions | | | (1,451,034 | ) | | | (1,214,084 | ) | | | (7,701 | ) | | | (23,426 | ) | | | — | | | | (73,945 | ) | | | (39,582 | ) |
CAPITAL STOCK TRANSACTIONS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from Shares Issued | | | — | | | | 9,060,733 | | | | 2,500,000 | | | | 2,568,702 | | | | 25,000,000 | | | | 3,412,261 | | | | 15,229,540 | |
| Value of Shares Redeemed | | | (16,953,242 | ) | | | (94,507,088 | ) | | | (1,297,563 | ) | | | (2,559,048 | ) | | | (19,916,059 | ) | | | (4,728,400 | ) | | | (1,818,962 | ) |
| Net Increase (Decrease) From Capital Stock Transactions | | | (16,953,242 | ) | | | (85,446,355 | ) | | | 1,202,437 | | | | 9,654 | | | | 5,083,941 | | | | (1,316,139 | ) | | | 13,410,578 | |
| Net Increase (Decrease) in Net Assets | | | (14,591,975 | ) | | | (100,665,624 | ) | | | 1,303,359 | | | | 58,207 | | | | 5,079,617 | | | | 10,926 | | | | 12,581,658 | |
Net Assets:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | | 78,170,948 | | | | 178,836,572 | | | | — | | | | 5,079,617 | | | | — | | | | 15,188,220 | | | | 2,606,562 | |
| End of Period | | $ | 63,578,973 | | | $ | 78,170,948 | | | $ | 1,303,359 | | | $ | 5,137,824 | | | $ | 5,079,617 | | | $ | 15,199,146 | | | $ | 15,188,220 | |
| Undistributed Net Investment Income (Loss) | | $ | (283,118 | ) | | $ | 349,617 | | | $ | (3,299 | ) | | $ | (4,253 | ) | | $ | — | | | $ | 590 | | | $ | 17,812 | |
Changes in Shares Outstanding
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares Outstanding, Beginning
of Year | | | 3,300,000 | | | | 6,900,000 | | | | — | | | | 100,000 | | | | — | | | | 600,000 | | | | 100,000 | |
| Shares Sold | | | — | | | | 350,000 | | | | 100,000 | | | | 50,000 | | | | 500,000 | | | | 125,000 | | | | 575,000 | |
| Shares Repurchased | | | (700,000 | ) | | | (3,950,000 | ) | | | (50,000 | ) | | | (50,000 | ) | | | (400,000 | ) | | | (175,000 | ) | | | (75,000 | ) |
| End of Period | | | 2,600,000 | | | | 3,300,000 | | | | 50,000 | | | | 100,000 | | | | 100,000 | | | | 550,000 | | | | 600,000 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)
| | | | | | | | |
| | Madrona Global Bond ETF | |
Madrona International ETF |
| | |
Six months
ended
December 31,
2012
(unaudited) | | Year
ended
June 30,
2012 | | Six months
ended
December 31,
2012
(Unaudited) | | Year
ended
June 30,
2012 |
INCREASE (DECREASE) IN NET ASSETS
| | | | | | | | | | | | | | | | |
OPERATIONS
| | | | | | | | | | | | | | | | |
| Net Investment Income (Loss) | | $ | 352,030 | | | $ | 444,600 | | | $ | 45,514 | | | $ | 185,886 | |
| Net Realized Gain (Loss) | | | (18,219 | ) | | | 37,262 | | | | (513,132 | ) | | | (1,956,752 | ) |
| Net Change in Unrealized Appreciation (Depreciation) | | | 634,735 | | | | 359,809 | | | | 2,534,773 | | | | (1,356,411 | ) |
| Net Increase (Decrease) In Net Assets Resulting From Operations | | | 968,546 | | | | 841,671 | | | | 2,067,155 | | | | (3,127,277 | ) |
DISTRIBUTIONS TO SHAREHOLDERS FROM
| | | | | | | | | | | | | | | | |
| Net Investment Income | | | (295,931 | ) | | | (441,742 | ) | | | (185,288 | ) | | | (43,912 | ) |
| Net Realized Gains | | | (3,106 | ) | | | — | | | | — | | | | (13,200 | ) |
| Total Distributions | | | (299,037 | ) | | | (441,742 | ) | | | (185,288 | ) | | | (57,112 | ) |
CAPITAL STOCK TRANSACTIONS
| | | | | | | | | | | | | | | | |
| Proceeds from Shares Issued | | | 3,947,922 | | | | 19,573,154 | | | | — | | | | 16,407,072 | |
| Value of Shares Redeemed | | | (2,643,237 | ) | | | (1,279,141 | ) | | | (1,089,716 | ) | | | (1,621,054 | ) |
| Net Increase (Decrease) From Capital Stock Transactions | | | 1,304,685 | | | | 18,294,013 | | | | (1,089,716 | ) | | | 14,786,018 | |
Net Increase (Decrease) in
Net Assets | | | 1,974,194 | | | | 18,693,942 | | | | 792,151 | | | | 11,601,629 | |
Net Assets:
| | | | | | | | | | | | | | | | |
| Beginning of Period | | | 21,194,969 | | | | 2,501,027 | | | | 14,218,716 | | | | 2,617,087 | |
| End of Period | | $ | 23,169,163 | | | $ | 21,194,969 | | | $ | 15,010,867 | | | $ | 14,218,716 | |
| Undistributed Net Investment Income (Loss) | | $ | 61,135 | | | $ | 5,036 | | | $ | 3,481 | | | $ | 143,255 | |
Changes in Shares Outstanding
| | | | | | | | | | | | | | | | |
Shares Outstanding, Beginning
of Year | | | 825,000 | | | | 100,000 | | | | 675,000 | | | | 100,000 | |
| Shares Sold | | | 150,000 | | | | 775,000 | | | | — | | | | 650,000 | |
| Shares Repurchased | | | (100,000 | ) | | | (50,000 | ) | | | (50,000 | ) | | | (75,000 | ) |
| End of Period | | | 875,000 | | | | 825,000 | | | | 625,000 | | | | 675,000 | |
| * | Commencement of operations |
| (1) | Formerly Active Bear ETF. |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Changes in Net Assets
| | | | | | | | | | | | |
| | Meidell Tactical Advantage ETF | | Peritus High Yield ETF | | Pring Turner Business Cycle ETF | | QAM Equity Hedge ETF |
| | | Six months
ended
December 31,
2012
(Unaudited) | | Year
ended
June 30,
2012 | | Six months
ended
December 31,
2012
(Unaudited) | | Year
ended
June 30,
2012 | | For the period
December 18, 2012*
to
December 31, 2012 | | For the period
August 7, 2012*
to
December 31, 2012 |
INCREASE (DECREASE) IN NET ASSETS
| | | | | | | | | | | | | | | | | | | | | | | | |
OPERATIONS
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income (Loss) | | $ | 36,049 | | | $ | 407 | | | $ | 5,954,022 | | | $ | 5,808,398 | | | $ | 4,491 | | | $ | 497 | |
| Net Realized Gain (Loss) | | | 44,686 | | | | (149,563 | ) | | | 97,011 | | | | 373,233 | | | | — | | | | 14,001 | |
| Net Change in Unrealized Appreciation (Depreciation) | | | 188,964 | | | | 8,535 | | | | 3,279,605 | | | | (2,589,171 | ) | | | (13,613 | ) | | | 87,359 | |
| Net Increase (Decrease) In Net Assets Resulting From Operations | | | 269,699 | | | | (140,621 | ) | | | 9,330,638 | | | | 3,592,460 | | | | (9,122 | ) | | | 101,857 | |
DISTRIBUTIONS TO
SHAREHOLDERS FROM
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income | | | (64,270 | ) | | | (1,366 | ) | | | (6,169,010 | ) | | | (5,707,019 | ) | | | — | | | | (11,280 | ) |
| Net Realized Gains | | | — | | | | — | | | | (20,661 | ) | | | (612,898 | ) | | | — | | | | (15,366 | ) |
| Total Distributions | | | (64,270 | ) | | | (1,366 | ) | | | (6,189,671 | ) | | | (6,319,917 | ) | | | — | | | | (26,646 | ) |
CAPITAL STOCK TRANSACTIONS
| | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from Shares Issued | | | 1,250,338 | | | | 7,926,365 | | | | 81,746,156 | | | | 58,595,073 | | | | 2,500,000 | | | | 3,766,470 | |
| Value of Shares Redeemed | | | — | | | | (4,637,924 | ) | | | — | | | | (7,389,685 | ) | | | — | | | | — | |
| Net Increase (Decrease) From Capital Stock Transactions | | | 1,250,338 | | | | 3,288,441 | | | | 81,746,156 | | | | 51,205,388 | | | | 2,500,000 | | | | 3,766,470 | |
| Net Increase (Decrease) in Net Assets | | | 1,455,767 | | | | 3,146,454 | | | | 84,887,123 | | | | 48,477,931 | | | | 2,490,878 | | | | 3,841,681 | |
Net Assets:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | | 5,652,409 | | | | 2,505,955 | | | | 92,328,489 | | | | 43,850,558 | | | | — | | | | — | |
| End of Period | | $ | 7,108,176 | | | $ | 5,652,409 | | | $ | 177,215,612 | | | $ | 92,328,489 | | | $ | 2,490,878 | | | $ | 3,841,681 | |
Undistributed Net Investment
Income (Loss) | | $ | (27,814 | ) | | $ | 407 | | | $ | 6,038 | | | $ | 221,026 | | | $ | 4,491 | | | $ | (10,783 | ) |
| Changes in Shares Outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
Shares Outstanding, Beginning
of Year | | | 225,000 | | | | 100,000 | | | | 1,900,000 | | | | 850,000 | | | | — | | | | — | |
| Shares Sold | | | 50,000 | | | | 300,000 | | | | 1,650,000 | | | | 1,200,000 | | | | 100,000 | | | | 150,000 | |
| Shares Repurchased | | | — | | | | (175,000 | ) | | | — | | | | (150,000 | ) | | | — | | | | — | |
| End of Period | | | 275,000 | | | | 225,000 | | | | 3,550,000 | | | | 1,900,000 | | | | 100,000 | | | | 150,000 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)
| | | | | | | | |
| |
Ranger Equity Bear ETF(1) | | Rockledge SectorSAM |
| | | Six months
ended
December 31, 2012
(Unaudited) | | Year
ended
June 30,
2012 | | Six months
ended
December 31, 2012
(Unaudited) | |
For the period
January 11,
2012*
to
June 30,
2012 |
INCREASE (DECREASE) IN NET ASSETS
| | | | | | | | | | | | | | | | |
OPERATIONS
| | | | | | | | | | | | | | | | |
| Net Investment Income (Loss) | | $ | (5,303,326 | ) | | $ | (4,444,600 | ) | | $ | (21,507 | ) | | $ | (23,270 | ) |
| Net Realized Gain (Loss) | | | (49,526,431 | ) | | | (6,817,156 | ) | | | 7,587 | | | | 10,335 | |
| Net Change in Unrealized Appreciation (Depreciation) | | | (23,793,172 | ) | | | 6,206,740 | | | | 36,417 | | | | (135 | ) |
| Net Increase (Decrease) In Net Assets Resulting From Operations | | | (78,622,929 | ) | | | (5,055,016 | ) | | | 22,497 | | | | (13,070 | ) |
DISTRIBUTIONS TO SHAREHOLDERS FROM
| | | | | | | | | | | | | | | | |
| Net Investment Income | | | — | | | | — | | | | — | | | | — | |
| Net Realized Gains | | | — | | | | — | | | | (18,966 | ) | | | — | |
| Total Distributions | | | — | | | | — | | | | (18,966 | ) | | | — | |
CAPITAL STOCK TRANSACTIONS
| | | | | | | | | | | | | | | | |
| Proceeds from Shares Issued | | | 141,245,333 | | | | 363,431,857 | | | | 1,268,841 | | | | 5,057,608 | |
| Value of Shares Redeemed | | | (156,896,360 | ) | | | (95,542,692 | ) | | | (2,552,300 | ) | | | (2,522,528 | ) |
| Net Increase (Decrease) From Capital Stock Transactions | | | (15,651,027 | ) | | | 267,889,165 | | | | (1,283,459 | ) | | | 2,535,080 | |
Net Increase (Decrease) in
Net Assets | | | (94,273,956 | ) | | | 262,834,149 | | | | (1,279,928 | ) | | | 2,522,010 | |
Net Assets:
| | | | | | | | | | | | | | | | |
| Beginning of Period | | | 313,223,483 | | | | 50,389,334 | | | | 2,522,010 | | | | — | |
| End of Period | | $ | 218,949,527 | | | $ | 313,223,483 | | | $ | 1,242,082 | | | $ | 2,522,010 | |
| Undistributed Net Investment Income (Loss) | | $ | (8,183,715 | ) | | $ | (2,880,389 | ) | | $ | (34,932 | ) | | $ | (13,425 | ) |
Changes in Shares Outstanding
| | | | | | | | | | | | | | | | |
Shares Outstanding, Beginning
of Year | | | 13,425,000 | | | | 2,225,000 | | | | 100,000 | | | | — | |
| Shares Sold | | | 6,475,000 | | | | 15,025,000 | | | | 50,000 | | | | 200,000 | |
| Shares Repurchased | | | (7,950,000 | ) | | | (3,825,000 | ) | | | (100,000 | ) | | | (100,000 | ) |
| End of Period | | | 11,950,000 | | | | 13,425,000 | | | | 50,000 | | | | 100,000 | |
| * | Commencement of operations |
| (1) | Formerly Active Bear ETF. |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Changes in Net Assets
| | | | | | | | | | |
| | STAR Global
Buy-Write ETF | | TrimTabs Float Shrink ETF | | WCM/BNY Mellon Focused Growth ADR ETF |
| | | For the period
September 17,
2012*
to
December 31,
2012
(Unaudited) | | Six months
ended
December 31,
2012
(Unaudited) | | For the period
October 5,
2011*
to
June 30,
2012 | | Six months
ended
December 31,
2012
(Unaudited) | | Year
ended
June 30,
2012 |
INCREASE (DECREASE) IN NET
ASSETS
| | | | | | | | | | | | | | | | | | | | |
OPERATIONS
| | | | | | | | | | | | | | | | | | | | |
| Net Investment Income (Loss) | | $ | 14,076 | | | $ | 56,390 | | | $ | 15,360 | | | $ | 2,032 | | | $ | 17,389 | |
| Net Realized Gain (Loss) | | | 72,095 | | | | 485,367 | | | | 965,959 | | | | (258,908 | ) | | | 442,270 | |
Net Change in Unrealized
Appreciation (Depreciation) | | | (34,711 | ) | | | (222,482 | ) | | | 317,226 | | | | 832,436 | | | | (1,162,845 | ) |
Net Increase (Decrease) In Net
Assets Resulting From
Operations | | | 51,460 | | | | 319,275 | | | | 1,298,545 | | | | 575,560 | | | | (703,186 | ) |
DISTRIBUTIONS TO
SHAREHOLDERS FROM
| | | | | | | | | | | | | | | | | | | | |
| Net Investment Income | | | (91,839 | ) | | | (69,328 | ) | | | (2,501 | ) | | | (14,409 | ) | | | (25,106 | ) |
| Net Realized Gains | | | (17,177 | ) | | | (40,008 | ) | | | — | | | | — | | | | (27,533 | ) |
| Total Distributions | | | (109,016 | ) | | | (109,336 | ) | | | (2,501 | ) | | | (14,409 | ) | | | (52,639 | ) |
CAPITAL STOCK TRANSACTIONS
| | | | | | | | | | | | | | | | | | | | |
| Proceeds from Shares Issued | | | 13,614,994 | | | | 17,179,972 | | | | 37,243,628 | | | | — | | | | 4,339,699 | |
| Value of Shares Redeemed | | | — | | | | (14,589,728 | ) | | | (30,248,798 | ) | | | — | | | | (5,772,068 | ) |
Net Increase (Decrease) From
Capital Stock Transactions | | | 13,614,994 | | | | 2,590,244 | | | | 6,994,830 | | | | — | | | | (1,432,369 | ) |
Net Increase (Decrease) in
Net Assets | | | 13,557,438 | | | | 2,800,183 | | | | 8,290,874 | | | | 561,151 | | | | (2,188,194 | ) |
Net Assets:
| | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | | — | | | | 8,290,874 | | | | — | | | | 6,462,409 | | | | 8,650,603 | |
| End of Period | | $ | 13,557,438 | | | $ | 11,091,057 | | | $ | 8,290,874 | | | $ | 7,023,560 | | | $ | 6,462,409 | |
Undistributed Net Investment
Income (Loss) | | $ | (77,763 | ) | | $ | (448 | ) | | $ | 12,490 | | | $ | (145 | ) | | $ | 12,232 | |
Changes in Shares Outstanding
| | | | | | | | | | | | | | | | | | | | |
Shares Outstanding, Beginning
of Year | | | — | | | | 250,000 | | | | — | | | | 225,000 | | | | 275,000 | |
| Shares Sold | | | 550,000 | | | | 500,000 | | | | 1,200,000 | | | | — | | | | 150,000 | |
| Shares Repurchased | | | — | | | | (425,000 | ) | | | (950,000 | ) | | | — | | | | (200,000 | ) |
| End of Period | | | 550,000 | | | | 325,000 | | | | 250,000 | | | | 225,000 | | | | 225,000 | |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Statements of Cash Flows (Unaudited)
| | | | | | | | |
| | Accuvest
Global Long Short
ETF | | QAM Equity Hedge
ETF | | Ranger Equity Bear
ETF(1) | | Rockledge SectorSAM
ETF |
| | | For the
six months
ended December 31, 2012 | | For the period August 7, 2012* to
December 31, 2012 | | For the six months ended December 31, 2012 |
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
| | | | | | | | | | | | | | | | |
| Dividends received | | $ | 164,717 | | | $ | 16,285 | | | $ | — | | | $ | 2,414 | |
| Interest received | | | 1 | | | | 259 | | | | 15,484 | | | | — | |
| Operating expenses paid | | | (151,564 | ) | | | (36,468 | ) | | | (2,570,244 | ) | | | 3,031 | |
| Net purchases of short-term investments | | | (2,376,800 | ) | | | (1,035,686 | ) | | | 82,661,484 | | | | — | |
| Realized gain (loss) on swap contracts | | | — | | | | 7,444 | | | | — | | | | — | |
| Purchases of long-term investments | | | (62,421,836 | ) | | | (4,499,304 | ) | | | — | | | | 1,531,447 | |
| Proceeds from disposition of long-term investments | | | 56,063,689 | | | | 1,775,149 | | | | — | | | | | |
| Increase/Decrease in receivables for securities sold | | | 1,394,636 | | | | — | | | | 16,390,162 | | | | (590,192 | ) |
| Increase/Decrease in payables for securities purchased | | | — | | | | 5,864 | | | | (13,108,681 | ) | | | 586,691 | |
| Net increase in short sales | | | 1,446,849 | | | | 55,319 | | | | (163,390,987 | ) | | | (1,512,237 | ) |
| Dividends paid | | | (99,422 | ) | | | (131 | ) | | | (1,670,018 | ) | | | (4,622 | ) |
| Interest paid | | | (222,806 | ) | | | (268 | ) | | | (1,235,264 | ) | | | (4,000 | ) |
| Net Cash Provided (Used) By Operating Activities | | | (6,202,536 | ) | | | (3,711,537 | ) | | | (82,908,064 | ) | | | 12,532 | |
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
| | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 8,761,305 | | | | 3,766,470 | | | | (7,741,723 | ) | | | (1,283,459 | ) |
| Deposits with brokers for swap contracts and short sales | | | (2,623,985 | ) | | | (54,918 | ) | | | 140,514,787 | | | | 1,234,752 | |
| Net Cash Flows Provided (Used) By Financing Activities | | | 6,137,320 | | | | 3,711,552 | | | | 132,773,064 | | | | (48,707 | ) |
| NET INCREASE/DECREASE IN CASH | | | (65,216 | ) | | | 15 | | | | 49,865,000 | | | | (36,175 | ) |
| Cash, Beginning of period | | | 65,216 | | | | — | | | | 66,557,758 | | | | 80,079 | |
| Cash, End of period | | $ | — | | | $ | 15 | | | $ | 116,422,758 | | | $ | 43,904 | |
RECONCILIATION OF INCREASE/
(DECREASE) IN NET ASSETS FROM
OPERATIONS TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
| | | | | | | | | | | | | | | | |
| Increase/Decrease in Net Assets From Operation | | $ | 1,434,860 | | | $ | 101,857 | | | $ | (78,622,929 | ) | | $ | 22,497 | |
| Increase/Decrease in investments, at value | | | (9,063,804 | ) | | | (3,798,438 | ) | | | (7,409,900 | ) | | | (24,794 | ) |
| Increase/Decrease in payable for securities purchased | | | — | | | | 5,864 | | | | (13,108,681 | ) | | | 586,691 | |
| Increase/Decrease in receivable for securities sold | | | 1,394,636 | | | | — | | | | 16,390,162 | | | | (590,192 | ) |
| Increase/Decrease in interest receivable | | | 5,252 | | | | (82 | ) | | | (1,628 | ) | | | (7,866 | ) |
| Increase/Decrease in dividends receivable | | | — | | | | (3,127 | ) | | | — | | | | — | |
| Increase/Decrease in prepaid expense | | | 6,404 | | | | (27,779 | ) | | | (28,821 | ) | | | 13,363 | |
| Increase/Decrease in interest payable | | | (16,184 | ) | | | — | | | | 67,052 | | | | (251 | ) |
| Increase/Decrease in dividends payable | | | 6,431 | | | | 43 | | | | (177,229 | ) | | | 9,112 | |
| Increase/Decrease in accrued expenses | | | 29,869 | | | | 10,125 | | | | (16,090 | ) | | | 3,972 | |
| Total Adjustments | | | (7,637,396 | ) | | | (3,813,394 | ) | | | (4,285,135 | ) | | | (9,965 | ) |
| Net Cash Flows Provided (Used) By Operating Activities | | $ | (6,202,536 | ) | | $ | (3,711,537 | ) | | $ | (82,908,064 | ) | | $ | 12,532 | |
| * | Commencement of operations. |
| (1) | Formerly Active Bear ETF |
See accompanying Notes to Financial Statements.
(This page intentionally left blank.)
ADVISORSHARES TRUST
Financial Highlights
| | | | | | |
| | Accuvest Global Long Short ETF |
| | | Six months
ended
December 31,
2012
(Unaudited) | | Year ended
June 30, 2012 | | For the period
July 9, 2010*
to
June 30, 2011 |
Selected Data for a Share of Capital Stock Outstanding
| | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 21.20 | | | $ | 20.86 | | | $ | 25.00 | |
Investment Operations
| | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | (0.30 | ) | | | (0.68 | ) | | | (0.67 | ) |
| Net Realized and Unrealized Gain (Loss) | | | 1.58 | | | | 1.33 | | | | (3.47 | ) |
| Distributions of Net Realized Gains by other investment companies | | | — | | | | — | | | | — | |
| Net Increase (Decrease) in Net Assets Resulting from Investment Operations | | | 1.28 | | | | 0.65 | | | | (4.14 | ) |
| Distributions from Net Investment Income | | | — | | | | (0.31 | ) | | | — | |
| Distributions from Net Realized Gains | | | — | | | | — | | | | — | |
| Total Distributions. | | | — | | | | (0.31 | ) | | | — | |
| Net Asset Value, End of Period | | $ | 22.48 | | | $ | 21.20 | | | $ | 20.86 | |
| Market Value, End of Period | | $ | 22.51 | | | $ | 21.22 | | | $ | 20.86 | |
Total Return
| | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | 6.04 | % | | | 3.15 | % | | | (16.56 | )% |
| Total Investment Return Based on Market(3) | | | 6.08 | % | | | 3.24 | % | | | (16.56 | )% |
Ratios/Supplemental Data
| | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 28,097 | | | $ | 18,022 | | | $ | 9,385 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | |
| Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % |
| Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | | | 4.46 | % | | | 8.15 | % | | | 3.33 | % |
| Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.97 | % | | | 3.88 | % | | | 1.73 | % |
| Net investment Income (Loss)(4) | | | (2.72 | )% | | | (3.20 | )% | | | (2.82 | )% |
| Portfolio Turnover Rate(5) | | | 89 | % | | | 365 | % | | | 751 | % |
| * | Commencement of operations. |
| (1) | Based on average shares outstanding. |
| (3) | 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, reinvestment of all dividends and distributions at market value during the period, and sale at the market value on the last day of ther period. |
| (4) | Ratios of periods of less than one year have been annualized. |
| (5) | 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. |
| (6) | Formerly Active Bear ETF |
| (7) | For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to less than $0.005 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been (0.19)%. |
| (8) | For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to $0.02 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been 0.55%. |
| (9) | For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to less than $0.005 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been 0.62%. |
| (10) | For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to $0.01 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been (3.25)%. |
| (11) | For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to $0.04 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been 0.94%. |
| (12) | For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to $0.01 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been less than 0.005%. |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Financial Highlights
| | | | | | | | | | |
| | Accuvest Global Opportunities ETF | | Cambria Global Tactical ETF |
| | | Six months
ended
December 31,
2012
(Unaudited) | | For the period
January 25, 2012*
to
June 30, 2012 | | Six months
ended
December 31,
2012
(Unaudited) | | Year ended
June 30, 2012 | | For the period October 26, 2010*
to
June 30, 2011 |
| Selected Data for a Share of Capital Stock Outstanding | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 24.44 | | | $ | 25.00 | | | $ | 23.69 | | | $ | 25.92 | | | $ | 25.10 | |
Investment Operations
| | | | | | | | | | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | (0.02 | ) | | | 0.31 | | | | 0.28 | | | | 0.21 | | | | 0.25 | |
| Net Realized and Unrealized Gain (Loss) | | | 4.27 | | | | (0.87 | ) | | | 1.04 | | | | (2.24 | ) | | | 0.79 | |
Distributions of Net Realized Gains by other
investment companies | | | — | | | | — | | | | — | | | | — | | | | — | |
Net Increase (Decrease) in Net Assets Resulting from
Investment Operations | | | 4.25 | | | | (0.56 | ) | | | 1.32 | | | | (2.03 | ) | | | 1.04 | |
| Distributions from Net Investment Income | | | (0.31 | ) | | | — | | | | (0.56 | ) | | | — | | | | (0.22 | ) |
| Distributions from Net Realized Gains | | | — | | | | — | | | | — | | | | (0.20 | ) | | | — | |
| Total Distributions. | | | (0.31 | ) | | | — | | | | (0.56 | ) | | | (0.20 | ) | | | (0.22 | ) |
| Net Asset Value, End of Period | | $ | 28.38 | | | $ | 24.44 | | | $ | 24.45 | | | $ | 23.69 | | | $ | 25.92 | |
| Market Value, End of Period | | $ | 28.38 | | | $ | 24.45 | | | $ | 24.42 | | | $ | 23.64 | | | $ | 25.93 | |
Total Return
| | | | | | | | | | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | 17.40 | % | | | (2.24 | )% | | | 5.58 | % | | | (7.84 | )% | | | 4.17 | % |
| Total Investment Return Based on Market(3) | | | 16.07 | % | | | (2.20 | )% | | | 3.30 | % | | | (8.07 | )% | | | 4.20 | % |
Ratios/Supplemental Data
| | | | | | | | | | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 17,027 | | | $ | 13,442 | | | $ | 63,579 | | | $ | 78,171 | | | $ | 178,837 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | | | | | | | | | |
| Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.25 | % | | | 1.25 | % | | | 1.07 | % | | | 0.99 | % | | | 1.02 | % |
| Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | | | 1.56 | % | | | 2.27 | % | | | 1.10 | % | | | 1.08 | % | | | 1.04 | % |
| Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.56 | % | | | 2.27 | % | | | 1.10 | % | | | 1.08 | % | | | 1.04 | % |
| Net investment Income (Loss)(4) | | | (0.16 | )% | | | 2.90 | % | | | 2.26 | % | | | 0.87 | % | | | 1.45 | % |
| Portfolio Turnover Rate(5) | | | 34 | % | | | 135 | % | | | 120 | % | | | 475 | % | | | 187 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Financial Highlights (continued)
| | | | | | |
| | Global Alpha & Beta ETF | | Global Echo ETF |
| | | For the period July 10, 2012*
to December 31, 2012
(Unaudited) | | Six months
ended
December 31, 2012 (Unaudited) | | For the period
May 23, 2012*
to
June 30, 2012 |
Selected Data for a Share of Capital Stock Outstanding
| | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 25.00 | | | $ | 50.80 | | | $ | 50.00 | |
Investment Operations
| | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | 0.05 | | | | (0.04 | )(7) | | | (0.02 | ) |
| Net Realized and Unrealized Gain (Loss) | | | 1.17 | | | | 0.85 | | | | 0.82 | |
| Distributions of Net Realized Gains by other investment companies | | | — | | | | — | | | | – | |
| Net Increase (Decrease) in Net Assets Resulting from Investment Operations | | | 1.22 | | | | 0.81 | | | | 0.80 | |
| Distributions from Net Investment Income | | | (0.13 | ) | | | — | | | | – | |
| Distributions from Net Realized Gains | | | (0.02 | ) | | | (0.23 | ) | | | – | |
| Total Distributions. | | | (0.15 | ) | | | (0.23 | ) | | | – | |
| Net Asset Value, End of Period | | $ | 26.07 | | | $ | 51.38 | | | $ | 50.80 | |
| Market Value, End of Period | | $ | 26.03 | | | $ | 51.63 | | | $ | 50.99 | |
Total Return
| | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | 4.90 | % | | | 1.60 | % | | | 1.60 | % |
| Total Investment Return Based on Market(3) | | | 4.12 | % | | | 1.71 | % | | | 1.98 | % |
Ratios/Supplemental Data
| | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 1,303 | | | $ | 5,138 | | | $ | 5,080 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | |
| Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.25 | % | | | 1.50 | % | | | 1.50 | % |
| Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | | | 7.05 | % | | | 1.50 | % | | | 1.50 | % |
| Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 7.05 | % | | | 1.50 | % | | | 1.50 | % |
| Net investment Income (Loss)(4) | | | 0.44 | % | | | (0.17 | )%(7) | | | (0.32 | )% |
| Portfolio Turnover Rate(5) | | | 24 | % | | | 100 | % | | | 70 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Financial Highlights
| | | | | | | | | | | | |
| |
Madrona Domestic ETF | | Madrona Global Bond ETF |
| | | Six months
ended December 31, 2012
(Unaudited) | | Year ended
June 30, 2012 | | For the period June 21, 2011*
to
June 30, 2011 | | Six months
ended December 31, 2012
(Unaudited) | | 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 | | $ | 25.31 | | | $ | 26.07 | | | $ | 25.00 | | | $ | 25.69 | | | $ | 25.01 | | | $ | 25.00 | |
Investment Operations
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | 0.10 | (8) | | | 0.10 | | | | — | (2) | | | 0.41 | | | | 0.71 | | | | 0.01 | |
| Net Realized and Unrealized Gain (Loss) | | | 2.35 | | | | (0.79 | ) | | | 1.07 | | | | 0.72 | | | | 0.67 | | | | — | |
Distributions of Net Realized Gains by other
investment companies | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Net Increase (Decrease) in Net Assets Resulting from
Investment Operations | | | 2.45 | | | | (0.69 | ) | | | 1.07 | | | | 1.13 | | | | 1.38 | | | | 0.01 | |
| Distributions from Net Investment Income | | | (0.13 | ) | | | (0.07 | ) | | | — | | | | (0.34 | ) | | | (0.70 | ) | | | — | |
| Distributions from Net Realized Gains | | | — | | | | — | | | | — | | | | — | (2) | | | — | | | | — | |
| Total Distributions. | | | (0.13 | ) | | | (0.07 | ) | | | — | | | | (0.34 | ) | | | (0.70 | ) | | | — | |
| Net Asset Value, End of Period | | $ | 27.63 | | | $ | 25.31 | | | $ | 26.07 | | | $ | 26.48 | | | $ | 25.69 | | | $ | 25.01 | |
| Market Value, End of Period | | $ | 27.65 | | | $ | 25.28 | | | $ | 26.07 | | | $ | 26.48 | | | $ | 25.68 | | | $ | 25.02 | |
Total Return
| | | | | | | | | | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | 9.68 | % | | | (2.65 | )% | | | 4.28 | % | | | 4.44 | % | | | 5.59 | % | | | 0.04 | % |
| Total Investment Return Based on Market(3) | | | 9.88 | % | | | (2.76 | )% | | | 4.28 | % | | | 4.48 | % | | | 5.49 | % | | | 0.08 | % |
Ratios/Supplemental Data
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 15,199 | | | $ | 15,188 | | | $ | 2,607 | | | $ | 23,169 | | | $ | 21,195 | | | $ | 2,501 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 0.95 | % | | | 0.95 | % | | | 0.95 | % |
| Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | | | 1.61 | % | | | 1.46 | % | | | 10.96 | % | | | 0.97 | % | | | 0.99 | % | | | 11.08 | % |
| Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.61 | % | | | 1.46 | % | | | 10.96 | % | | | 0.97 | % | | | 0.99 | % | | | 11.08 | % |
| Net investment Income (Loss)(4) | | | 0.74 | %(8) | | | 0.40 | % | | | 0.23 | % | | | 3.09 | % | | | 2.81 | % | | | 1.68 | % |
| Portfolio Turnover Rate(5) | | | 23 | % | | | 40 | % | | | 0 | % | | | 13 | % | | | 12 | % | | | 0 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Financial Highlights (continued)
| | | | | | |
| | Madrona International ETF |
| | | Six months ended December 31, 2012
(Unaudited) | | 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 | | $ | 21.06 | | | $ | 26.17 | | | $ | 25.00 | |
Investment Operations
| | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | 0.07 | (9) | | | 0.32 | | | | 0.01 | |
| Net Realized and Unrealized Gain (Loss) | | | 3.19 | | | | (5.33 | ) | | | 1.16 | |
| Distributions of Net Realized Gains by other investment companies | | | — | | | | — | | | | — | |
| Net Increase (Decrease) in Net Assets Resulting from Investment Operations | | | 3.26 | | | | (5.01 | ) | | | 1.17 | |
| Distributions from Net Investment Income | | | (0.30 | ) | | | (0.08 | ) | | | — | |
| Distributions from Net Realized Gains | | | — | | | | (0.02 | ) | | | — | |
| Total Distributions. | | | (0.30 | ) | | | (0.10 | ) | | | — | |
| Net Asset Value, End of Period | | $ | 24.02 | | | $ | 21.06 | | | $ | 26.17 | |
| Market Value, End of Period | | $ | 23.96 | | | $ | 21.11 | | | $ | 26.18 | |
Total Return
| | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | 15.48 | % | | | (19.11 | )% | | | 4.68 | % |
| Total Investment Return Based on Market(3) | | | 14.90 | % | | | (18.95 | )% | | | 4.72 | % |
Ratios/Supplemental Data
| | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 15,011 | | | $ | 14,219 | | | $ | 2,617 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | |
| Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % |
| Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | | | 1.65 | % | | | 1.54 | % | | | 10.99 | % |
| Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.65 | % | | | 1.54 | % | | | 10.99 | % |
| Net investment Income (Loss)(4) | | | 0.63 | %(9) | | | 1.48 | % | | | 1.14 | % |
| Portfolio Turnover Rate(5) | | | 66 | % | | | 110 | % | | | 19 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Financial Highlights
| | | | | | |
| | Meidell Tactical Advantage ETF |
| | | Six months ended
December 31,
2012
(Unaudited) | | Year ended
June 30, 2012 | | For the period
June 23, 2011*
to
June 30, 2011 |
Selected Data for a Share of Capital Stock Outstanding
| | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 25.12 | | | $ | 25.06 | | | $ | 25.00 | |
Investment Operations
| | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | 0.14 | | | | — | (2) | | | 0.01 | |
| Net Realized and Unrealized Gain (Loss) | | | 0.82 | | | | 0.08 | | | | 0.05 | |
Distributions of Net Realized Gains by other
investment companies | | | — | | | | — | | | | — | |
Net Increase (Decrease) in Net Assets Resulting from
Investment Operations | | | 0.96 | | | | 0.08 | | | | 0.06 | |
| Distributions from Net Investment Income | | | (0.23 | ) | | | (0.02 | ) | | | — | |
| Distributions from Net Realized Gains | | | — | | | | — | | | | — | |
| Total Distributions. | | | (0.23 | ) | | | (0.02 | ) | | | — | |
| Net Asset Value, End of Period | | $ | 25.85 | | | $ | 25.12 | | | $ | 25.06 | |
| Market Value, End of Period | | $ | 25.86 | | | $ | 25.48 | | | $ | 25.07 | |
Total Return
| | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | 3.84 | % | | | 0.31 | % | | | 0.24 | % |
| Total Investment Return Based on Market(3) | | | 1.49 | % | | | 1.71 | % | | | 0.28 | % |
Ratios/Supplemental Data
| | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 7,108 | | | $ | 5,652 | | | $ | 2,506 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | |
Expenses, net of expense waivers and reimbursements,
excluding interest and dividend expense(4) | | | 1.35 | % | | | 1.35 | % | | | 1.35 | % |
Expenses, prior to expense waivers and reimbursements,
including interest and dividend expense(4) | | | 3.15 | % | | | 3.69 | % | | | 13.70 | % |
Expenses, prior to expense waivers and reimbursements,
excluding interest and dividend expense(4) | | | 3.15 | % | | | 3.69 | % | | | 13.70 | % |
| Net investment Income (Loss)(4) | | | 1.11 | % | | | 0.01 | % | | | 1.00 | % |
| Portfolio Turnover Rate(5) | | | 370 | % | | | 817 | % | | | 5 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Financial Highlights (continued)
| | | | | | |
| |
Peritus High Yield ETF |
| | | Six months ended December 31, 2012
(Unaudited) | | Year ended
June 30, 2012 | | For the period December 1, 2010*
to
June 30, 2011 |
Selected Data for a Share of Capital Stock Outstanding
| | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 48.59 | | | $ | 51.59 | | | $ | 50.00 | |
Investment Operations
| | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | 2.20 | | | | 4.20 | | | | 2.25 | |
| Net Realized and Unrealized Gain (Loss) | | | 1.30 | | | | (2.74 | ) | | | 1.30 | |
| Distributions of Net Realized Gains by other investment companies | | | — | | | | — | (2) | | | — | |
| Net Increase (Decrease) in Net Assets Resulting from Investment Operations | | | 3.50 | | | | 1.46 | | | | 3.55 | |
| Distributions from Net Investment Income | | | (2.16 | ) | | | (3.99 | ) | | | (1.96 | ) |
| Distributions from Net Realized Gains | | | (0.01 | ) | | | (0.47 | ) | | | — | |
| Total Distributions. | | | (2.17 | ) | | | (4.46 | ) | | | (1.96 | ) |
| Net Asset Value, End of Period | | $ | 49.92 | | | $ | 48.59 | | | $ | 51.59 | |
| Market Value, End of Period | | $ | 50.08 | | | $ | 48.64 | | | $ | 51.87 | |
Total Return
| | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | 7.32 | % | | | 3.27 | % | | | 7.16 | % |
| Total Investment Return Based on Market(3) | | | 7.54 | % | | | 2.75 | % | | | 7.73 | % |
Ratios/Supplemental Data
| | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 177,216 | | | $ | 92,328 | | | $ | 43,851 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | |
| Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.34 | % | | | 1.35 | % | | | 1.34 | % |
| Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | | | 1.34 | % | | | 1.35 | % | | | 1.57 | % |
| Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.34 | % | | | 1.35 | % | | | 1.57 | % |
| Net investment Income (Loss)(4) | | | 8.82 | % | | | 8.64 | % | | | 7.47 | % |
| Portfolio Turnover Rate(5) | | | 16 | % | | | 80 | % | | | 81 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Financial Highlights
| | | | | | | | | | |
| | Pring Turner Business Cycle ETF | | QAM Equity Hedge ETF | | Ranger Equity Bear ETF(6) |
| | | For the period December 18, 2012*
to
December 31, 2012
(Unaudited) | | For the period
August 7, 2012*
to
December 31, 2012
(Unaudited) | | Six months ended
December 31,
2012
(Unaudited) | | 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 | | $ | 25.00 | | | $ | 25.00 | | | $ | 23.33 | | | $ | 22.65 | | | $ | 25.00 | |
Investment Operations
| | | | | | | | | | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | 0.04 | | | | — | (2) | | | (0.35 | )(10) | | | (0.72 | ) | | | (0.30 | ) |
| Net Realized and Unrealized Gain (Loss) | | | (0.13 | ) | | | 0.79 | | | | (4.66 | ) | | | 1.40 | | | | (2.05 | ) |
Distributions of Net Realized Gains by other
investment companies | | | — | | | | — | | | | — | | | | — | | | | — | |
Net Increase (Decrease) in Net Assets Resulting from
Investment Operations | | | (0.09 | ) | | | 0.79 | | | | (5.01 | ) | | | 0.68 | | | | (2.35 | ) |
| Distributions from Net Investment Income | | | — | | | | (0.08 | ) | | | — | | | | — | | | | — | |
| Distributions from Net Realized Gains | | | — | | | | (0.10 | ) | | | — | | | | — | | | | — | |
| Total Distributions. | | | — | | | | (0.18 | ) | | | — | | | | — | | | | — | |
| Net Asset Value, End of Period | | $ | 24.91 | | | $ | 25.61 | | | $ | 18.32 | | | $ | 23.33 | | | $ | 22.65 | |
| Market Value, End of Period | | $ | 24.98 | | | $ | 25.64 | | | $ | 18.30 | | | $ | 23.34 | | | $ | 22.65 | |
Total Return
| | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | (0.36 | )% | | | 3.15 | % | | | (21.47 | )% | | | 3.00 | % | | | (9.40 | )% |
| Total Investment Return Based on Market(3) | | | (0.08 | )% | | | 2.56 | % | | | (21.59 | )% | | | 3.05 | % | | | (9.40 | )% |
Ratios/Supplemental Data
| | | | | | | | | | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 2,491 | | | $ | 3,842 | | | $ | 218,950 | | | $ | 313,223 | | | $ | 50,389 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | | | | | | | | | |
| Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.49 | % | | | 1.50 | % | | | 1.59 | % | | | 1.69 | % | | | 1.79 | % |
| Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | | | 5.01 | % | | | 5.36 | % | | | 3.35 | % | | | 3.06 | % | | | 3.16 | % |
| Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 5.01 | % | | | 5.32 | % | | | 1.59 | % | | | 1.68 | % | | | 1.88 | % |
| Net investment Income (Loss)(4) | | | 5.07 | % | | | 0.04 | % | | | (3.34 | )%(10) | | | (3.06 | )% | | | (3.07 | )% |
| Portfolio Turnover Rate(5) | | | 0 | % | | | 52 | % | | | 393 | % | | | 756 | % | | | 635 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Financial Highlights (continued)
| | | | | | |
| | Rockledge SectorSAM | | STAR Global
Buy-Write ETF |
| | | Six months
ended December 31, 2012
(Unaudited) | | For the period January 11, 2012* to
June 30, 2012 | | For the period September 17, 2012*
to
December 31, 2012
(Unaudited) |
Selected Data for a Share of Capital Stock Outstanding
| | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 25.22 | | | $ | 25.54 | | | $ | 25.00 | |
Investment Operations
| | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | (0.29 | ) | | | (0.24 | ) | | | 0.04 | |
| Net Realized and Unrealized Gain (Loss) | | | 0.29 | | | | (0.08 | ) | | | (0.19 | ) |
| Distributions of Net Realized Gains by other investment companies | | | — | | | | — | | | | — | |
| Net Increase (Decrease) in Net Assets Resulting from Investment Operations | | | — | | | | (0.32 | ) | | | (0.15 | ) |
| Distributions from Net Investment Income | | | (0.38 | ) | | | — | | | | (0.17 | ) |
| Distributions from Net Realized Gains | | | — | | | | — | | | | (0.03 | ) |
| Total Distributions. | | | (0.38 | ) | | | — | | | | (0.20 | ) |
| Net Asset Value, End of Period | | $ | 24.84 | | | $ | 25.22 | | | $ | 24.65 | |
| Market Value, End of Period | | $ | 24.85 | | | $ | 25.23 | | | $ | 24.82 | |
Total Return
| | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | (0.01 | )% | | | (1.25 | )% | | | (0.61 | )% |
| Total Investment Return Based on Market(3) | | | (1.51 | )% | | | (1.21 | )% | | | (0.72 | )% |
Ratios/Supplemental Data
| | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 1,242 | | | $ | 2,522 | | | $ | 13,557 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | |
| Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 1.50 | % | | | 1.50 | % | | | 1.85 | % |
| Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | | | 13.80 | % | | | 11.03 | % | | | 2.89 | % |
| Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | | | 11.96 | % | | | 9.43 | % | | | 2.89 | % |
| Net investment Income (Loss)(4) | | | (2.26 | )% | | | (1.97 | )% | | | 0.55 | % |
| Portfolio Turnover Rate(5) | | | 849 | % | | | 391 | % | | | 21 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Financial Highlights
| | | | | | | | | | |
| | TrimTabs Float
Shrink ETF | | WCM/BNY Mellon Focused
Growth ADR ETF |
| | | Six months
ended
December 31,
2012
(Unaudited) | | For the period October 5, 2011*
to
June 30, 2012 | | Six months
ended
December 31,
2012
(Unaudited) | | 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 | | $ | 33.16 | | | $ | 26.20 | | | $ | 28.72 | | | $ | 31.46 | | | $ | 25.00 | |
Investment Operations
| | | | | | | | | | | | | | | | | | | | |
| Net Investment Income (Loss)(1) | | | 0.21 | (11) | | | 0.07 | | | | 0.01 | (12) | | | 0.07 | | | | 0.15 | |
| Net Realized and Unrealized Gain (Loss) | | | 1.09 | | | | 6.90 | | | | 2.55 | | | | (2.58 | ) | | | 6.40 | |
Distributions of Net Realized Gains by other
investment companies | | | — | | | | — | | | | — | | | | — | | | | — | |
Net Increase (Decrease) in Net Assets Resulting from
Investment Operations | | | 1.30 | | | | 6.97 | | | | 2.56 | | | | (2.51 | ) | | | 6.55 | |
| Distributions from Net Investment Income | | | (0.21 | ) | | | (0.01 | ) | | | (0.06 | ) | | | (0.11 | ) | | | (0.09 | ) |
| Distributions from Net Realized Gains | | | (0.12 | ) | | | — | | | | — | | | | (0.12 | ) | | | — | |
| Total Distributions. | | | (0.33 | ) | | | (0.01 | ) | | | (0.06 | ) | | | (0.23 | ) | | | (0.09 | ) |
| Net Asset Value, End of Period | | $ | 34.13 | | | $ | 33.16 | | | $ | 31.22 | | | $ | 28.72 | | | $ | 31.46 | |
| Market Value, End of Period | | $ | 34.13 | | | $ | 33.24 | | | $ | 31.17 | | | $ | 28.70 | | | $ | 31.58 | |
Total Return
| | | | | | | | | | | | | | | | | | | | |
| Total Investment Return Based on Net Asset Value(3) | | | 3.94 | % | | | 26.62 | % | | | 8.93 | % | | | (7.94 | )% | | | 26.21 | % |
| Total Investment Return Based on Market(3) | | | 3.69 | % | | | 26.93 | % | | | 8.83 | % | | | (8.36 | )% | | | 26.69 | % |
Ratios/Supplemental Data
| | | | | | | | | | | | | | | | | | | | |
| Net Assets, End of Period (000's omitted) | | $ | 11,091 | | | $ | 8,291 | | | $ | 7,024 | | | $ | 6,462 | | | $ | 8,651 | |
Ratio to Average Net Assets of:
| | | | | | | | | | | | | | | | | | | | |
Expenses, net of expense waivers and reimbursements,
excluding interest and dividend expense(4) | | | 0.99 | % | | | 0.99 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % |
Expenses, prior to expense waivers and reimbursements,
including interest and dividend expense(4) | | | 2.17 | % | | | 2.34 | % | | | 3.53 | % | | | 4.17 | % | | | 3.04 | % |
Expenses, prior to expense waivers and reimbursements,
excluding interest and dividend expense(4) | | | 2.17 | % | | | 2.34 | % | | | 3.53 | % | | | 4.17 | % | | | 3.04 | % |
| Net investment Income (Loss)(4) | | | 1.19 | %(11) | | | 0.31 | % | | | 0.06 | %(12) | | | 0.24 | % | | | 0.52 | % |
| Portfolio Turnover Rate(5) | | | 44 | % | | | 201 | % | | | 21 | % | | | 16 | % | | | 34 | % |
See accompanying Notes to Financial Statements.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
1. Organization
AdvisorShares Trust (the “Trust”) was organized as a Delaware statutory trust on July 30, 2007 and has authorized capital of unlimited shares. The Trust is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (the “Act”). The Trust is comprised of 17 active funds (the “Funds” or “ETFs” and individually, the “Fund” or “ETF”):
| | | | |
| Fund | | Ticker | | Commencement of
Operations |
| Accuvest Global Long Short ETF | | | AGLS | | | | July 9, 2010 | |
| Accuvest Global Opportunities ETF | | | ACCU | | | | January 25, 2012 | |
| Cambria Global Tactical ETF | | | GTAA | | | | October 26, 2010 | |
| Global Alpha & Beta ETF | | | RRGR | | | | July 10, 2012 | |
| 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 | |
| Pring Turner Business Cycle ETF | | | DBIZ | | | | December 18, 2012 | |
| QAM Equity Hedge ETF | | | QEH | | | | August 7, 2012 | |
| Ranger Equity Bear ETF (formerly Active Bear ETF) | | | HDGE | | | | January 27, 2011 | |
| Rockledge SectorSAM ETF | | | SSAM | | | | January 11, 2012 | |
| STAR Global Buy-Write ETF | | | VEGA | | | | September 17, 2012 | |
| TrimTabs Float Shrink ETF | | | TTFS | | | | October 5, 2011 | |
| WCM/BNY Mellon Focused Growth ADR ETF | | | AADR | | | | July 21, 2010 | |
Dent Tactical ETF was liquidated on August 15, 2012.
Effective October 29, 2012, the Active Bear ETF changed its name to Ranger Equity Bear ETF.
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.
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.
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.
Global Alpha & Beta ETF is a broadly diversified global equity ETF which seeks long-term capital growth. RRGR utilizes a “top-down” thematic approach while employing a proprietary security selection process and from time to time will employ risk management techniques to lower portfolio volatility and risk. RRGR is managed by Your Source Financial (Portfolio Manager). The Portfolio Manager seeks to achieve this objective by investing primarily in other ETPs, individual stocks, and American Depositary Receipts (ADRs) that provide investment exposure to global equity markets and that meet certain selection criteria established by the Portfolio Manager.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
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.
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 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.
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.
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.
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.
Pring Turner Business Cycle ETF seeks long-term growth from capital appreciation and income. DBIZ is managed by Pring Turner Capital Group (Portfolio Manager). The cornerstone of the Portfolio Manager’s investment philosophy rests on the core belief of building wealth consistently while minimizing portfolio risk. DBIZ is a multi-asset class fund that dynamically allocates among stock, bond, inflation-sensitive securities, and cash. The Portfolio Manager has developed a pro-active asset allocation and sector rotation process designed around the stage changes in the business cycle. DBIZ’s disciplined decision-making employs multiple layers of input including business cycle, fundamental, and technical analysis. This adaptive approach combines continuous asset allocation changes, diversification with careful sector selections, and income emphasis.
QAM Equity Hedge ETF seeks investment results that exceed the risk adjusted performance of approximately 50% of the long/short equity hedge fund universe as defined by the HFRI Equity Hedge Total Index constituents. QEH is managed by Commerce Asset Management (Portfolio Manager).
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
1. Organization – (continued)
The Portfolio Manager seeks to achieve this objective by employing an actively managed long/short equity strategy that attempts to gain global net equity exposures that approximate those of the universe of managers in the HFRI Equity Hedge Total Index. Additionally, the Portfolio Manager utilizes advanced algorithms including Markov Processes International’s (MPI) proprietary and patented style analysis technique and associated algorithms, DSA (Dynamic Style Analysis), patented hedge fund analysis software, combined with the Portfolio Manager’s qualitative knowledge of the hedge fund investor community to develop investment strategies.
Ranger Equity Bear ETF seeks capital appreciation through short sales of domestically traded equity securities. The portfolio management team implements a bottom-up, fundamental, research driven security selection process. In selecting short positions, the Fund seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition, the portfolio management team seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance.
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.
STAR Global Buy-Write ETF seeks consistent repeatable returns across all market cycles. VEGA is sub-advised by Partnervest Advisory Services, LLC (Portfolio Manager). The Portfolio Manager seeks to achieve this investment objective by using a proprietary strategy known as Volatility Enhanced Global Appreciation (VEGA). VEGA employs a “Buy-Write” or “Covered Call” overlay for their global allocation strategy using ETPs. The strategy simultaneously writes (sells) a call option against each position in order to seek cumulative price appreciation from the portfolio’s global exposure, while generating a consistent income stream from the sale of covered call and/or cash-secured put options. When volatility is low the portfolio manager buys protective put options to manage downside risk.
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.
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.
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
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
2. Summary of Significant Accounting Policies – (continued)
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 Accuvest Global Long Short ETF, the Cambria Global Tactical ETF, the QAM Equity Hedge ETF and the STAR Global Buy-Write 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 Fund’s risk of loss consists of the net amount of payments that the Fund is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile. To the extent that the Adviser or Sub-Adviser, as applicable, do not accurately analyze and predict future market trends, the values of assets or economic factors, the Funds may suffer a loss, which may be substantial. The swap markets in which many types of swap transactions are traded have grown substantially in recent years, with a large number of banks and investment banking firms acting both as principals and as agents. As a result, the markets for certain types of swaps have become relatively liquid. Periodic payments received or paid by the Funds are recorded as realized gains or losses.
Short Sales
The Accuvest Global Long Short ETF, the Cambria Global Tactical ETF, the Pring Turner Business Cycle ETF, the QAM Equity Hedge ETF, the Ranger Equity 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
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
2. Summary of Significant Accounting Policies – (continued)
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, QAM Equity Hedge ETF, Ranger Equity Bear ETF and Rockledge SectorSAM ETF for the period ended December 31, 2012 are $206,622, $268, $1,302,316 and $3,749, 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 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.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
2. Summary of Significant Accounting Policies – (continued)
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.
Dividends and Distributions
Each Fund will generally pay out dividends to shareholders at least annually. Each Fund will distribute its net capital gains, if any, to shareholders annually. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles. Distributions are recorded on ex-dividend date.
Indemnifications
In the normal course of business, each Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Trust’s maximum exposure under these arrangements cannot be known; however, the Trust expects any risk of loss to be remote.
3. Investment Advisory Agreement and Other Agreements
Investment Advisory Agreement
Each Fund has entered into an Investment Advisory Agreement with AdvisorShares Investments, LLC (the “Advisor”). The Advisor acts as the Fund’s investment adviser pursuant to an advisory agreement with the Trust on behalf of each Fund. Pursuant to the Advisory Agreement, the Advisor has overall supervisory responsibility for the general management and investment of each Fund’s securities portfolio, and has ultimate responsibility (subject to oversight by the Trust’s Board of Trustees) for oversight of the Trust’s sub-advisers. For its services, each Fund pays the Advisor an annual management fee and such fees do not include breakpoints. From time to time, the Advisor may waive all or a portion of its fee.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
3. Investment Advisory Agreement and Other Agreements – (continued)
The Advisor’s annual management fee for each Fund is as follows:
| | |
| Fund: | | Rate: |
| Accuvest Global Long Short ETF | | | 1.35 | %* |
| Accuvest Global Opportunities ETF | | | 0.95 | % |
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 | % |
Global Alpha & Beta ETF
| | | | |
| $0 – $100,000,000 | | | 1.00 | % |
| $100,000,001 – $250,000,000 | | | 0.90 | % |
| $250,000,001 – $1,000,000,000 | | | 0.80 | % |
| $1,000,000,001 + | | | 0.70 | % |
| Global Echo ETF | | | 1.10 | % |
| Madrona Domestic ETF | | | 0.80 | %** |
| Madrona Global Bond ETF | | | 0.50 | %** |
| Madrona International ETF | | | 0.80 | %** |
| Meidell Tactical Advantage ETF | | | 1.20 | %*** |
| Peritus High Yield ETF | | | 1.10 | %* |
| Pring Turner Business Cycle ETF | | | 1.00 | % |
| QAM Equity Hedge ETF | | | 1.00 | % |
| Ranger Equity Bear ETF | | | 1.50 | % |
| Rockledge SectorSAM ETF | | | 1.25 | %* |
| STAR Global Buy-Write ETF | | | 1.35 | % |
| TrimTabs Float Shrink ETF | | | 0.99 | % |
| WCM/BNY Mellon Focused Growth ADR ETF | | | 0.75 | %* |
| * | Prior to January 1, 2013, subject to minimum fee of $10,000 per month. |
| ** | Prior to January 1, 2013, subject to minimum fee of $5,000 per month. |
| *** | Prior to January 1, 2013, 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 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
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
3. Investment Advisory Agreement and Other Agreements – (continued)
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.
Accuvest Global Advisors LLC 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 | % |
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.
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 | % |
Your Source Financial, PLC serves as investment sub-advisor to Global Alpha & Beta 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 | | | 0.35 | % |
| $100,000,001 – $250,000,000 | | | 0.315 | % |
| $250,000,001 – $1,000,000,000 | | | 0.28 | % |
| $1,000,000,001 + | | | 0.245 | % |
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.
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 Global Bond ETF | | | 0.25 | % |
| Madrona International ETF | | | 0.40 | % |
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.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
3. Investment Advisory Agreement and Other Agreements – (continued)
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.
Pring Turner Capital Group serves as the investment sub-advisor to Pring Turner Business Cycle ETF. They receive a sub-advisory fee at an annual fee of 0.55% based on the average daily net assets.
Commerce Asset Management, LLC serves as investment sub-advisor to QAM Equity Hedge 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 | | | 0.55 | % |
| $250,000,001 + | | | 0.60 | % |
Ranger Alternative Management LP, serves as investment sub-advisor to Ranger Equity Bear ETF. They receive a sub-advisory fee at an annual fee of 1.00% based on the average daily net assets.
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.
Partnervest Advisory Services, LLC serves as investment sub-advisor to STAR Global Buy-Write ETF. They receive a sub-advisory fee at an annual fee of 0.85% 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.
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.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
3. Investment Advisory Agreement and Other Agreements – (continued)
Expense Limitation Agreement
The Advisor has contractually agreed to reduce their fees and reimburse expenses in order to keep net expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses) from exceeding a specified for each Fund’s average daily net assets. The expense limitation agreement will be terminated upon termination of the investment advisory agreement between the Advisor and the Fund. The investment advisory agreement may only be terminated with the approval of the Fund’s Board. The expense caps in effect for each Fund during the period ended December 31, 2012 were as follows:
| | |
| Fund: | | Rate: |
| Accuvest Global Long Short ETF | | | 1.50 | % |
| Accuvest Global Opportunities ETF | | | 1.25 | % |
| Cambria Global Tactical ETF | | | 0.99 | % |
| Global Alpha & Beta ETF | | | 1.25 | % |
| Global Echo ETF | | | — | |
| Madrona Domestic ETF | | | 1.25 | % |
| Madrona Global Bond ETF | | | 0.95 | % |
| Madrona International ETF | | | 1.25 | % |
| Meidell Tactical Advantage ETF | | | 1.35 | % |
| Peritus High Yield ETF | | | 1.35 | % |
| Pring Turner Business Cycle ETF | | | 1.49 | % |
| QAM Equity Hedge ETF | | | 1.50 | % |
| Ranger Equity Bear ETF | | | 1.85 | % |
| Rockledge SectorSAM ETF | | | 1.50 | % |
| STAR Global Buy-Write ETF | | | 1.85 | % |
| TrimTabs Float Shrink ETF | | | 0.99 | % |
| WCM/BNY Mellon Focused Growth ADR ETF | | | 1.25 | % |
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
3. Investment Advisory Agreement and Other Agreements – (continued)
For the period ended December 31, 2012, the Advisor waived fees and reimbursed expenses for each Fund as follows. Each Fund may recoup such waivers until the date indicated.
| | | | | | |
| Fund: | | Expenses Reimbursed: | | Recoupment Amount: | | Recoupment Expiration: |
| Accuvest Global Long Short ETF | | $ | 66,702 | | | $ | 66,702 | | | | 6/30/2014 | |
| | | | 204,653 | | | | 204,653 | | | | 6/30/2015 | |
| | | | 58,772 | | | | 58,772 | | | | 6/30/2016 | |
| Total Accuvest Global Long Short ETF | | | 330,127 | | | | 330,127 | | | | | |
| Accuvest Global Opportunities ETF | | | 45,384 | | | | 45,384 | | | | 6/30/2015 | |
| | | | 23,530 | | | | 23,530 | | | | 6/30/2016 | |
| Total Global Opportunities ETF | | | 68,914 | | | | 68,914 | | | | | |
| Cambria Global Tactical ETF | | | 9,250 | | | | 158 | | | | 6/30/2014 | | | | | |
| | | | 129,383 | | | | 129,383 | | | | 6/30/2015 | |
| | | | 17,105 | | | | 17,105 | | | | 6/30/2016 | |
| Total Cambria Global Tactical ETF | | | 155,738 | | | | 146,646 | | | | | |
| Global Alpha & Beta ETF | | | 45,732 | | | | 45,732 | | | | 6/30/2016 | |
| Total Global Alpha & Beta ETF | | | 45,732 | | | | 45,732 | | | | | |
| Madrona Domestic ETF | | | 6,733 | | | | 6,733 | | | | 6/30/2014 | |
| | | | 30,175 | | | | 30,175 | | | | 6/30/2015 | |
| | | | 27,655 | | | | 27,655 | | | | 6/30/2016 | |
| Total Madrona Domestic ETF | | | 64,563 | | | | 64,563 | | | | | |
| Madrona Global Bond ETF | | | 1,256 | | | | 1,256 | | | | 6/30/2015 | |
| | | | 13,652 | | | | 13,652 | | | | 6/30/2016 | |
| Total Madrona Global Bond ETF | | | 14,908 | | | | 14,908 | | | | | |
| Madrona International ETF | | | 6,735 | | | | 6,735 | | | | 6/30/2014 | |
| | | | 36,187 | | | | 36,187 | | | | 6/30/2015 | |
| | | | 28,700 | | | | 28,700 | | | | 6/30/2016 | |
| Total Madrona International ETF | | | 71,622 | | | | 71,622 | | | | | |
| Meidell Tactical Advantage ETF | | | 4,507 | | | | 4,507 | | | | 6/30/2014 | |
| | | | 79,573 | | | | 79,573 | | | | 6/30/2015 | |
| | | | 60,674 | | | | 60,674 | | | | 6/30/2016 | |
| Total Meidell Tactical Advantage ETF | | | 144,754 | | | | 144,754 | | | | | |
| Pring Turner Business Cycle ETF | | | 3,119 | | | | 3,119 | | | | 6/30/2016 | |
| Total Pring Turner Business Cycle ETF | | | 3,119 | | | | 3,119 | | | | | |
| QAM Equity Hedge ETF | | | 47,945 | | | | 47,945 | | | | 6/30/2016 | |
| Total QAM Equity Hedge ETF | | | 47,945 | | | | 47,945 | | | | | |
| Rockledge SectorSAM ETF | | | 93,860 | | | | 93,860 | | | | 6/30/2015 | |
| | | | 99,765 | | | | 99,765 | | | | 6/30/2016 | |
| Total Rockledge SectorSAM ETF | | | 193,625 | | | | 193,625 | | | | | |
| STAR Global Buy-Write ETF | | | 26,717 | | | | 26,717 | | | | 6/30/2016 | |
| Total STAR Global Buy-Write ETF | | | 26,717 | | | | 26,717 | | | | | |
| TrimTabs Float Shrink ETF | | | 66,768 | | | | 66,768 | | | | 6/30/2015 | |
| | | | 55,973 | | | | 55,973 | | | | 6/30/2016 | |
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
3. Investment Advisory Agreement and Other Agreements – (continued)
| | | | | | |
| Fund: | | Expenses Reimbursed: | | Recoupment Amount: | | Recoupment Expiration: |
| Total TrimTabs Float Shrink ETF | | | 122,741 | | | | 122,741 | | | | | |
| WCM/BNY Mellon Focused Growth ADR ETF | | | 118,635 | | | | 118,635 | | | | 6/30/2014 | |
| | | | 214,032 | | | | 214,032 | | | | 6/30/2015 | |
| | | | 78,577 | | | | 78,577 | | | | 6/30/2016 | |
Total WCM/BNY Mellon Focused Growth
ADR ETF | | | 411,244 | | | | 411,244 | | | | | |
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.
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:
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
5. Summary of Fair Value Disclosure – (continued)
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.
Investments that use Level 2 or Level 3 inputs may include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (e.g., one that may not be publicly sold without registration under the Securities Act of 1933 as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (e.g., an event that occurs after the close of the markets on which the security is traded but before the time as of which a Fund’s net asset value is computed and that may materially affect the value of the Fund’s investment). Examples of events that may be “significant events” are government actions, natural disasters, armed conflicts and acts of terrorism.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of December 31, 2012 in valuing the Funds’ assets carried at fair value:
| | | | | | | | | | | | | | | | |
| Assets | | Accuvest
Global Long
Short ETF | | Accuvest
Global Opportunities ETF | | Cambria
Global
Tactical
ETF | | Global
Alpha &
Beta ETF | | Global
Echo ETF | | Madrona
Domestic
ETF | | Madrona
Global
Bond ETF | | Madrona
International
ETF |
Level 1
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Exchange Traded Funds | | $ | 27,973,516 | | | $ | 17,020,985 | | | $ | 62,090,764 | | | $ | 441,918 | | | $ | 1,213,205 | | | $ | — | | | $ | 22,926,979 | | | $ | — | |
| Common Stocks | | | — | | | | — | | | | — | | | | 740,416 | | | | 2,327,427 | | | | 15,149,959 | | | | — | | | | 14,895,692 | |
| Money Market Fund | | | 2,383,420 | | | | 221,611 | | | | 2,822,869 | | | | 137,951 | | | | 468,540 | | | | 76,787 | | | | 239,265 | | | | 125,763 | |
| Exchange Traded Notes | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Level 2
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stocks | | | — | | | | — | | | | — | | | | — | | | | 62,506 | | | | — | | | | — | | | | — | |
| Corporate Bonds | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Foreign Bonds | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| U.S. Treasury Notes | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Municipal Bonds | | | — | | | | — | | | | — | | | | — | | | | 167,085 | | | | — | | | | — | | | | — | |
| Government Bonds | | | — | | | | — | | | | — | | | | — | | | | 886,455 | | | | — | | | | — | | | | — | |
| Purchased Put Options | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Swaps Contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Level 3 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Liabilities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Level 1
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Exchange Traded Funds | | | (14,428,555 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Common Stocks | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Options Written | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Level 2
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Swaps Contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Level 3 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total | | $ | 15,928,381 | | | $ | 17,242,596 | | | $ | 64,913,633 | | | $ | 1,320,285 | | | $ | 5,125,218 | | | $ | 15,226,746 | | | $ | 23,166,244 | | | $ | 15,021,455 | |
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
5. Summary of Fair Value Disclosure – (continued)
| | | | | | | | | | | | | | | | | | |
| Assets | | Meidell
Tactical
Advantage
ETF | | Peritus
High
Yield ETF | | Pring
Turner
Business
Cycle ETF | | QAM
Equity
Hedge ETF | | Ranger
Equity
Bear ETF | | Rockledge SectorSAM ETF | | STAR
Global
Buy-Write ETF | | TrimTabs
Float
Shrink ETF | | WCM/BNY
Mellon
Focused
Growth ADR ETF |
Level 1
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Exchange Traded Funds | | $ | 6,978,461 | | | $ | — | | | $ | 588,768 | | | $ | 2,793,431 | | | $ | — | | | $ | 1,260,962 | | | $ | 8,781,717 | | | $ | — | | | $ | — | |
| Common Stocks | | | — | | | | — | | | | 1,533,472 | | | | — | | | | — | | | | — | | | | — | | | | 11,123,080 | | | | 6,749,948 | |
| Money Market Fund | | | 212,171 | | | | 231,083 | | | | 365,232 | | | | 1,035,686 | | | | 101,157,432 | | | | — | | | | 2,747,922 | | | | 98,845 | | | | 319,617 | |
| Exchange Traded Notes | | | — | | | | — | | | | — | | | | 17,547 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Level 2
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stocks | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Corporate Bonds | | | — | | | | 150,469,225 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Foreign
Bonds | | | — | | | | 22,610,827 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| U.S Treasury Notes | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,957,630 | | | | — | | | | — | |
| Municipal Bonds | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Government Bonds | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Purchased Put Option | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 182,785 | | | | — | | | | — | |
| Swaps Contracts | | | — | | | | — | | | | — | | | | 10,134 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Level 3 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Liabilities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Level 1
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Exchange Traded Funds | | | — | | | | — | | | | — | | | | (57,290 | ) | | | — | | | | (1,261,748 | ) | | | — | | | | — | | | | — | |
| Common Stocks | | | — | | | | — | | | | — | | | | — | | | | (211,262,699 | ) | | | — | | | | — | | | | — | | | | — | |
| Options Written | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (126,481 | ) | | | — | | | | — | |
Level 2
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Swaps Contracts | | | — | | | | — | | | | — | | | | (1,070.00 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
| Level 3 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total | | $ | 7,190,632 | | | $ | 173,311,135 | | | $ | 2,487,472 | | | $ | 3,798,438 | | | $ | (110,105,267 | ) | | $ | (786 | ) | | $ | 13,543,573 | | | $ | 11,221,925 | | | $ | 7,069,565 | |
The following is a summary of transfers between Level 1 and Level 2 fair value measurements that occurred during the six months ended December 31, 2012. All transfers between Level 1 and Level 2 fair value measurment are done using the beginning of period method.
| | | | |
| Fund | | Transfers from
Level 1 to 2(1) | | Transfers from Level 2 to 1 |
| Global Echo ETF | | $ | 63,520 | | | $ | — | |
| (1) | Transfers from Level 1 to Level 2 are as a result of the unavailability of a quoted price in an active market. |
The funds did not hold any level 3 securities during the period.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
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 December 31, 2012, the fair values of derivative instruments were as follows:
Statement of Assets and Liabilities
| | | | |
| Fund: | | Asset Derivatives: | | Equity Risk |
| QAM Equity Hedge ETF | | | Unrealized Appreciation on
Swaps Contracts | | | $ | 9,895 | |
| STAR Global Buy-Write ETF | | | Investments, at Market Value | | | | 182,785 | |
| | | | | | | $ | 192,680 | |
| | | | |
| Fund: | | Liability Derivatives: | | Equity Risk |
| QAM Equity Hedge ETF | | | Unrealized Depreciation on Swaps Contracts | | | $ | 831 | |
| STAR Global Buy-Write ETF | | | Options Written, at Value | | | | 126,481 | |
| | | | | | | $ | 127,312 | |
Transactions in derivative instruments during the period ended December 31, 2012, were as follows:
Statement of Operations
| | | | |
| Fund: | | Realized Gain (Loss): | | Equity Risk |
| QAM Equity Hedge ETF | | | Swaps Contracts | | | $ | 6,980 | |
| STAR Global Buy-Write ETF | | | Options Purchased Contracts | | | | (27,580 | ) |
| STAR Global Buy-Write ETF | | | Options Written Contracts | | | | 97,237 | |
| | | | | | | $ | 69,657 | |
| | | | |
| Fund: | | Unrealized Gain (Loss): | | Equity Risk |
| QAM Equity Hedge ETF | | | Swaps Contracts | | | $ | 9,064 | |
| STAR Global Buy-Write ETF | | | Options Purchased Contracts | | | | (24,175 | ) |
| STAR Global Buy-Write ETF | | | Options Written Contracts | | | | (13,374 | ) |
| | | | | | | $ | (37,549 | ) |
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
6. Valuation of Derivative Instruments – (continued)
For the period ended December 31, 2012, the volume of the derivatives held by the Funds was as follows:
| | | | |
| | QAM Equity Hedge ETF | | STAR Global
Buy-Write ETF |
| Long Equity Swaps Contracts | | $ | 13,900 | | | $ | — | |
| Short Equity Swaps Contracts | | | 10,858 | | | | — | |
| Purchased Equity Options Contracts | | | — | | | | 1,212 | |
| Written Equity Options Contracts | | | — | | | | 5,160 | |
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.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
7. Federal Income Tax – (continued)
At December 31, 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 | | $ | 14,450,939 | | | $ | 2,504,981 | | | $ | (1,027,539 | ) | | $ | 1,477,442 | |
| Accuvest Global Opportunities | | | 15,922,522 | | | | 1,320,074 | | | | — | | | | 1,320,074 | |
| Cambria Global Tactical ETF | | | 61,022,356 | | | | 3,978,135 | | | | (86,858 | ) | | | 3,891,277 | |
| Global Alpha & Beta ETF | | | 1,263,079 | | | | 67,869 | | | | (10,663 | ) | | | 57,206 | |
| Global Echo ETF | | | 4,999,103 | | | | 149,198 | | | | (23,083 | ) | | | 126,115 | |
| Madrona Domestic ETF | | | 14,316,073 | | | | 1,396,993 | | | | (486,320 | ) | | | 910,673 | |
| Madrona Global Bond ETF | | | 22,171,822 | | | | 997,036 | | | | (2,614 | ) | | | 994,422 | |
| Madrona International ETF | | | 13,739,465 | | | | 1,625,864 | | | | (343,874 | ) | | | 1,281,990 | |
| Meidell Tactical Advantage ETF | | | 6,983,730 | | | | 218,857 | | | | (11,955 | ) | | | 206,902 | |
| Peritus High Yield ETF | | | 173,046,252 | | | | 3,849,889 | | | | (3,585,006 | ) | | | 264,883 | |
| Pring Turner Business Cycle ETF | | | 2,501,085 | | | | 8,481 | | | | (22,094 | ) | | | (13,613 | ) |
| QAM Equity Hedge ETF | | | 3,711,079 | | | | 87,508 | | | | (9,213 | ) | | | 78,295 | |
| Ranger Equity Bear ETF | | | (92,902,676 | ) | | | 1,392,289 | | | | (18,594,880 | ) | | | (17,202,591 | ) |
| Rockledge SectorSAM ETF | | | (37,068 | ) | | | 39,825 | | | | (3,543 | ) | | | 36,282 | |
| STAR Global Buy-Write ETF | | | 13,578,284 | | | | 144,244 | | | | (178,955 | ) | | | (34,711 | ) |
| TrimTabs Float Shrink ETF | | | 11,127,181 | | | | 270,125 | | | | (175,381 | ) | | | 94,744 | |
WCM/BNY Mellon Focused
Growth ADR ETF | | | 6,427,594 | | | | 1,015,385 | | | | (373,414 | ) | | | 641,971 | |
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.
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 | | | | — | |
| Cambria Global Tactical ETF | | | — | | | | 4,579,851 | | | | — | |
| Madrona Domestic ETF | | | — | | | | 434,347 | | | | 148 | |
| Madrona International ETF | | | — | | | | 756,413 | | | | — | |
| Meidell Tactical Advantage ETF | | | — | | | | 258,312 | | | | — | |
| Ranger Equity Bear ETF | | | 2,880,389 | | | | 4,862,699 | | | | — | |
| Rocklege SectorSAM ETF | | | 13,425 | | | | — | | | | — | |
| WCM/BNY Mellon Focused Growth ADR ETF | | | — | | | | — | | | | 162,335 | |
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
7. Federal Income Tax – (continued)
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 | |
| 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 carryforwards as follows to offset taxable capital gains realized during the year ended June 30, 2012:
| | |
| Fund | | Capital Loss
Carryforwards Used |
| Ranger Equity 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.
8. Other Affiliated Parties and Transactions
Affiliated holdings are funds which are managed by the Trust or an affiliate of the Trust. Transactions with affiliated companies during the six months ended December 31, 2012 are as follows:
| | | | | | | | | | |
| Affiliated Fund Name | | Value at
6/30/2012 | | Purchases/ Additions | | Sales/ Reductions | | Value at
12/31/2012 | | Dividend Income |
Global Echo ETF
| | | | | | | | | | | | | | | | | | | | |
| Ranger Equity Bear ETF | | $ | 43,049 | | | $ | 95,729 | | | $ | 117,469 | | | $ | 15,410 | | | | — | |
Pring Turner Business Cycle ETF
| | | | | | | | | | | | | | | | | | | | |
| Peritus High Yield ETF | | | — | | | | 125,124 | | | | — | | | | 124,975 | | | | 1,085 | |
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
9. Investment Transactions
Purchases and sales of investments for the period ended December 31, 2012 are as follows:
| | | | | | | | |
| Fund | | Purchases | | Sales | | Purchases In-Kind | | Sales In-Kind |
| Accuvest Global Long Short ETF | | $ | 21,549,349 | | | $ | 23,568,074 | | | $ | 40,872,487 | | | $ | 32,495,593 | |
| Accuvest Global Opportunities | | | 5,071,851 | | | | 5,207,885 | | | | 30,473,003 | | | | 28,997,572 | |
| Cambria Global Tactical ETF | | | 87,394,777 | | | | 82,030,865 | | | | — | | | | 16,282,089 | |
| Global Alpha & Beta ETF | | | 383,752 | | | | 314,091 | | | | 2,142,836 | | | | 1,133,615 | |
| Global Echo ETF | | | 4,920,907 | | | | 4,172,908 | | | | 1,713,009 | | | | 1,777,247 | |
| Madrona Domestic ETF | | | 3,609,426 | | | | 3,508,750 | | | | 2,819,286 | | | | 4,180,338 | |
| Madrona Global Bond ETF | | | 2,986,317 | | | | 2,892,756 | | | | 3,223,583 | | | | 1,956,955 | |
| Madrona International ETF | | | 9,493,788 | | | | 9,371,581 | | | | — | | | | 1,069,774 | |
| Meidell Tactical Advantage ETF | | | 23,612,079 | | | | 20,720,068 | | | | 1,060,166 | | | | — | |
| Peritus High Yield ETF | | | 100,493,173 | | | | 20,702,732 | | | | — | | | | — | |
| Pring Turner Business Cycle ETF | | | 65,100 | | | | — | | | | 2,070,753 | | | | — | |
| QAM Equity Hedge ETF | | | 1,266,282 | | | | 1,775,329 | | | | 3,233,022 | | | | — | |
| Ranger Equity Bear ETF | | | 1,162,497,635 | | | | 1,325,888,620 | | | | — | | | | — | |
| Rockledge SectorSAM ETF | | | 14,726,166 | | | | 14,947,894 | | | | 1,258,790 | | | | 2,569,114 | |
| STAR Global Buy-Write ETF | | | 3,919,035 | | | | 1,067,573 | | | | 8,049,569 | | | | — | |
| TrimTabs Float Shrink ETF | | | 4,070,902 | | | | 4,389,605 | | | | 16,362,499 | | | | 13,446,833 | |
| WCM/BNY Mellon Focused Growth ADR ETF | | | 1,626,934 | | | | 1,363,144 | | | | — | | | | — | |
Options written transactions, during the period ended December 31, 2012, were as follows:
| | | | |
| STAR Global Buy-Write ETF | | Contracts | | Premiums Received |
| Options outstanding at September 17, 2012* | | | — | | | $ | — | |
| Options written | | | 3,311 | | | | 266,883 | |
| Options terminated in closing purchase transactions | | | (1,396 | ) | | | (117,601 | ) |
| Options expired | | | (453 | ) | | | (36,175 | ) |
| Options outstanding at December 31, 2012 | | | 1,462 | | | $ | 113,107 | |
| * | Commencement of operations. |
10. Risks Involved with Investing in the Funds
The Funds are subject to the principal risks described below, some or all of these risks may adversely affect the Funds’ NAV, trading price, yield, total return and ability to meet its investment objective. As with any investment, an investment in each Fund could result in a loss or the performance of each Fund could be inferior to that of other investments.
Fund of Funds Risk
Some of the Funds’ investment performance, because they are fund of funds, depends on the investment performance of the Underlying ETFs in which they invest. An investment in these Funds are subject to the risk associated with the Underlying ETFs that comprise their Underlying Index. The Funds will indirectly pay a proportional share of the asset-based fees, if any, of the Underlying ETFs in which they invest.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
10. Risks Involved with Investing in the Funds – (continued)
Liquidity Risk
In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. To the extent that there is not an established retail market for instruments in which the Fund may invest, trading in such instruments may be relatively inactive. Trading in shares may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in shares inadvisable. In addition, trading in shares is subject to trading halts caused by extraordinary market volatility pursuant to “circuit breaker” rules. There can be no assurance that the requirements necessary to maintain the listing of the shares of the Fund will continue to be met or will remain unchanged.
Market Risk
Investments in securities, in general, are subject to market risks that may cause their prices to fluctuate over time. The Fund’s investments may decline in value due to factors affecting securities markets generally, or particular countries, segments, economic sectors, industries or companies within those markets. The value of a security held in a short position may increase due to general economic and market conditions which are not specifically related to a particular issuer, such as real or perceived positive economic conditions or changes in interest or currency rates. Because the market value of ETF shares may differ from their net asset value, the shares may trade at a premium or discount. An investment in the Fund may lose money.
New Fund Risk
Some of the Funds are new funds. As new funds, there can be no assurance that the Funds will grow to or maintain an economically viable size, in which case the Funds may experience greater tracking error to their Underlying Index than it otherwise would be at higher asset levels or it could ultimately liquidate.
11. New Accounting 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.
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2012 (Unaudited)
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.
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 |
Board Review of Investment Advisory and Sub-Advisory Agreements
ADVISORY AND SUB-ADVISORY CONTRACT APPROVAL
Renewal of the Sub-Advisory Agreements for the Cambria Global Tactical ETF, Ranger Equity Bear ETF (formerly, Active Bear ETF), WCM/BNY Mellon Focused Growth ADR ETF, Madrona Domestic ETF, Madrona International ETF and the Madrona Global Bond ETF
At in-person meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on August 14, 2012 and November 16, 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 the renewal of separate sub-advisory agreements (collectively, the “Sub-Advisory Agreements”) between AdvisorShares Investments, LLC (the “Advisor”) and (1) Cambria Investment Management, L.P., a Delaware limited partnership, on behalf of the Cambria Global Tactical ETF, (2) Ranger Alternative Management, L.P., a Texas limited partnership, on behalf of the Ranger Equity Bear ETF (formerly, Active Bear ETF), (3) WCM Investment Management, a California corporation, on behalf of the WCM/BNY Mellon Focused Growth ADR ETF, and (4) Madrona Funds, LLC, a Washington limited liability company, on behalf of the Madrona Domestic ETF, Madrona International ETF and the Madrona Global Bond 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 Cambria Global Tactical ETF, Ranger Equity Bear ETF, WCM/BNY Mellon Focused Growth ADR ETF, Madrona Domestic ETF, Madrona International ETF, and the Madrona Global Bond ETF (each, a “Fund” and collectively, the “Funds”).
Pursuant to Section 15(c) of the 1940 Act, the Board must annually review and re-approve the existing Sub-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 meetings to decide whether to renew the Sub-Advisory Agreements for an additional one-year term. In preparation for these meetings, the Board requests and reviews a wide variety of information from the Advisor and Sub-Advisors. The Board uses this information, as well as other information that the Advisor, Sub-Advisors and other service providers may submit to the Board, to help them decide whether to renew the Sub-Advisory Agreements for an additional year.
Prior to this year’s Meetings, the Board, including the Independent Trustees, reviewed written materials from each Sub-Advisor regarding, among other things: (i) the nature, extent and quality of the services to be provided by each Sub-Advisor; (ii) the investment performance of each Fund; (iii) the costs of the services to be provided and profits and other benefits to be realized by the Sub-Advisor and its affiliates from the relationship with each Fund; (iii) the respective personnel and operations of the Sub-Advisor; (iv) the extent to which economies of scale would be realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of each Fund’s shareholders, as discussed in further detail below.
At the Meetings, representatives of each Sub-Advisor, along with other Fund service providers, presented additional oral and written information to help the Board evaluate each Sub-Advisor’s advisory fees and other aspects of the Sub-Advisory Agreements. Representatives from each Sub-Advisor provided an overview of the Sub-Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and also discussed compliance oversight. The representatives for each Sub-Advisor then discussed their management of each Fund in more detail, including the Fund’s strategy, the Fund’s positioning in the market, and its attractive and unique offering. In addition, the representatives from WCM Investment Management and Madrona Funds, LLC discussed the focus on the international market by the WCM/BNY Mellon Focused Growth ADR ETF and the Madrona International ETF and Madrona Global Bond ETF, respectively. The representatives also described each Sub-Advisor’s business generally, including any noteworthy personnel changes. The Board then discussed the written materials that the Board received before the
Meetings, the Sub-Advisor’s oral presentations and any other information that the Board received at the Meetings, and deliberated on the renewal of the Sub-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 each Sub-Advisor and the renewal of its Sub-Advisory Agreement. 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 Sub-Advisors
In considering the nature, extent and quality of the services provided by each Sub-Advisor, the Board reviewed the portfolio management services provided to the Funds. The most recent investment adviser registration forms (“Forms ADV”) for the Sub-Advisors were also provided to the Board, as were the responses of the Sub-Advisors 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 each Sub-Advisor’s overall high quality of personnel, operations, financial condition, and investment advisory capabilities and information concerning the Sub-Advisor’s 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 each Sub-Advisor.
Investment Performance of the Funds
The Board was provided with information regarding each Fund’s performance since its Sub-Advisory Agreement was last approved, as well as information regarding each Fund’s performance since its inception. At the Meetings, representatives of each Sub-Advisor provided information regarding, and led a discussion of, factors impacting the performance of the Funds, outlining current market conditions and explaining the Sub-Advisor’s expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that each Sub-Advisor had been able to achieve for its respective Fund.
Costs of Advisory Services, Profitability and Economies of Scale
In concluding that the sub-advisory fee payable with respect to each Fund is reasonable, the Board reviewed a report of the sub-advisory fee paid by the Advisor to each Sub-Advisor, and the fees and expenses waived and/or reimbursed by the Sub-Advisors over the period, as well as the costs and other expenses incurred by the Sub-Advisors 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 sub-advisory fee appeared reasonable in light of the services rendered. In addition, the Board considered for each Fund whether economies of scale were realized during the current contract period, but concluded that no economies of scale had yet been achieved.
Based on the Board’s deliberations and its evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously: (i) concluded that the terms of each Sub-Advisory Agreement are fair and reasonable; (ii) concluded that each Sub-Advisor’s fees are reasonable in light of the services that it provides to its respective Fund; and (iii) agreed to renew each Sub-Advisory Agreement for another year.
Initial Approval of the Advisory and Sub-Advisory Agreements for QAM Equity Hedge ETF, STAR Global Buy-Write ETF, Global Alpha and Beta ETF and Pring Turner Business Cycle ETF
At in-person meetings of the Board held on August 30, 2011, November 16, 2011, and May 21, 2012 (together, the “Initial Approval Meetings”), the Board considered the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust and AdvisorShares Investments, LLC (the “Advisor”), for an initial term of two years, on behalf of the QAM Equity Hedge ETF, STAR Global Buy-Write ETF, Global Alpha and Beta ETF and Pring Turner Business Cycle ETF (each, a “Fund” and collectively, the “Funds”). 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 the Advisor and (1) Commerce Asset Management, LLC, a Delaware limited liability company, on behalf of the QAM Equity Hedge ETF, (2) Partnervest Advisory Services, LLC, a California limited liability company, on behalf of the STAR Global Buy-Write ETF, (3) Your Source Financial, PLC, an Arizona limited liability company, on behalf of the Global Alpha and Beta ETF, and (4) Pring Turner Capital Group, a California corporation, on behalf of the Pring Turner Business Cycle 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 Funds.
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. The Board also reviewed information comparing the proposed investment advisory fee rates with a group of comparable funds. 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 Funds, 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 Funds, and the costs of those services, with a view toward making a business judgment as to whether each of the proposed New Agreements is, under the circumstances, in the best interests of the Funds. 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 investment performance of each Advisor; (ii) their favorable evaluation of the nature, extent and quality of the investment management services proposed to be provided by the Advisors to the Funds; (iii) their satisfaction that the investment advisory fee rates proposed for the Funds are consistent with applicable standards and are reasonable and fair; and (iv) their assessment that the Advisors’ projected profitability in connection with providing investment management services to the Funds would not be excessive.
In its deliberations, the Board did not identify any single factor that was paramount or controlling and individual trustees may have attributed different weights to various factors. Certain factors considered by the Board at the 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 Funds. 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. In addition, 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 as applicable to the Funds. For the Global Alpha and Beta ETF and Pring Turner Business Cycle ETF, the Board considered the
professional experience and qualifications of their respective Sub-Advisors’ senior management and key professional personnel, including those individuals responsible for portfolio management. The Board also considered their respective Sub-Advisors’ operational capabilities and resources, and their 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 Funds and to provide services that are of high quality, and that each firm has appropriate resources to provide such services.
Performance of the Funds
In connection with the assessment of the ability of each Sub-Advisor to perform its duties under its Sub-Advisory Agreement, the Board considered the sufficiency of each Sub-Advisor’s resources. The Board concluded that each Sub-Advisor had the financial resources necessary to perform its obligations under its Sub-Advisory Agreement. The Board heard an overview of each Sub-Advisor’s investment philosophy, the proposed portfolio construction of each Fund, and the specific investment techniques to be employed. The Board also reviewed the overall investment performance of each Sub-Advisor.
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 the Advisor 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 expense ratios of the Funds. Based on the foregoing considerations, the Board determined that it was satisfied that the investment advisory fee rate proposed for each of the Funds was consistent with applicable standards and was reasonable and fair.
Economies of Scale
For the Funds, 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 the future. In the event there were to be significant asset growth in the Funds, 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 each Sub-Advisor’s fee is fair and reasonable in light of the services that it will provide to its respective Fund, and (iii) agreed to approve the New Agreements for initial terms of two years.
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.
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, L.P.
2321 Rosecrans Avenue, Suite 3225
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
Partnervest Advisory Services, LLC
1216 State Street, 3rd Floor
Santa Barbara, CA 93101
Pring Turner Capital Group
1600 South Main Street, Suite 375
Walnut Creek, CA 94596
Your Source Financial, PLC
707 E. Northern Avenue
Phoenix, AZ 85020
Commerce Asset Management, LLC
6075 Poplar Avenue, Suite 700
Memphis, TN 38119
Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
Custodian/Fund Administrator/Transfer Agent
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Legal Counsel
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Ave, N.W.
Washington, D.C. 20004
Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
1818 Market Street
Philadelphia, PA 19103
This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Fund’s risks, objectives, fees and expenses, experience of management and other information.
Item 2. Code of Ethics.
Not Applicable for the semi-annual reporting period.
Item 3. Audit Committee Financial Expert.
Not Applicable for the semi-annual reporting period.
Item 4. Principal Accountant Fees and Services.
Not Applicable for the semi-annual reporting period.
Item 5. Audit Committee of Listed Registrants.
Not Applicable for the semi-annual reporting period.
Item 6. Schedule of Investments.
| (a) | Schedule is included as part of the report to shareholders filed under Item 1 of this Form. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not Applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company & Affiliated Purchasers.
Not Applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11. Controls and Procedures.
(a) The Chief Executive Officer and Treasurer have evaluated the Registrant's disclosure controls and procedures within 90 days of the filing date of this report and have concluded that these controls and procedures are effective.
(b) There were no significant changes in the Registrant's internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation.
Item 12. Exhibits.
(a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by
Item 2, to the extent that the Registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable at this time.
(b) Certifications for each Principal Executive Officer and Treasurer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17CFR 270.30a-(a)).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: AdvisorShares Trust
By: Noah Hamman
Noah Hamman, Chief Executive Officer
Date: March 6, 2013
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: Noah Hamman
Noah Hamman, Chief Executive Officer
Date: March 6, 2013
By: Dan Ahrens
Dan Ahrens, Treasurer
Date: March 6, 2013
