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, 2013
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, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
ADVISORSHARES TRUST
2 Bethesda Metro Center
Suite 1330
Bethesda, Maryland 20814
www.advisorshares.com
877.THE.ETF1
Semi-Annual Report
December 31, 2013
TABLE OF CONTENTS
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ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC
December 31, 2013
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, 2013. We hit an important milestone in our growth during this past year when we crossed the $1 billion in assets under management threshold. As CEO of AdvisorShares, I want to thank you because as much as hitting this milestone is a testament to the hard work of our employees and our portfolio management teams, it is also a testament to the trust and faith that you have shown in AdvisorShares and in our actively managed ETF products. Speaking for all AdvisorShares employees, a heartfelt thank you!
From December 31, 2012 through December 31, 2013, our total assets under management increased from $611,035,589 to $1,047,558,808. In this same period, the number of Active ETFs across all sponsors increased from 55 ETFs to 71 ETFs, and total assets under management increased almost 50% to approximately $15,000,000,000.
During this period, we launched the following actively managed ETFs:
• | MINC — AdvisorShares Newfleet Multi-Sector Income ETF (Multi-Sector Income Strategy); |
• | HDGI — AdvisorShares Athena International Bear ETF (International Equity All-Short Strategy). |
In December of 2013, the Board of Trustees made the decision to reorganize one of our ETFs while substantially maintaining its investment objective. The AdvisorShares Global Alpha & Beta ETF (NYSE Arca: RRGR) was renamed the AdvisorShares EquityPro ETF (NYSE Arca: EPRO) and The Elements Financial Group of Irvine, California was brought in as the new portfolio manager. We carefully review the entire AdvisorShares actively managed ETF suite on an ongoing basis, and determined that it was in the best interest of shareholders to make this change due to its performance and associated costs. As a leading innovator of actively managed ETFs, we remain steadfastly committed to providing a diversified line-up of alternative and core strategies to help investors realize their financial goals.
Calendar year 2014 will be another year of explosive growth from our product pipeline, as we are planning to launch over eight new ETFs into the marketplace, providing you with even more quality investment managers and innovative investment strategies, which provide transparency, intra-day liquidity, and operating efficiency.
In addition to reading this report, I encourage you to visit www.advisorshares.com to learn more about all of the actively managed ETFs currently offered by AdvisorShares and others which will be launching soon. You will find detailed information on each investment strategy along with manager commentary from each ETF’s portfolio management team. To hear a short manager commentary in an audio format, please log in and look for the “Manager Minutes” box to listen to the portfolio manager discuss the current positioning of an ETF. 2013 also saw the re-launching of our blog which includes non-product related insight from a number of our portfolio managers. I encourage to regularly check it out at www.alphabaskets.com.
1
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC (continued)
December 31, 2013
I appreciate your support and use of our ETFs and hope that you continue to find them helpful to your investment goals.
Sincerely,
Noah Hamman
CEO, AdvisorShares Investments
An investment in the Funds is subject to risk, including the possible loss of principal amount invested. ADRs are subject to the risk of change in political or economic conditions and exchange rates in foreign countries. Certain funds may participate in leveraged transactions to include selling securities short which creates the risk of magnified capital losses. Under certain market conditions, short sales can increase the volatility and decrease the liquidity of certain securities or positions, and may lower the Fund’s return or result in a loss. There is no guarantee that the individual Funds’ will achieve the stated investment objectives. 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, 2013 and may not reflect his views on the date that this report is first published or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.
2
ADVISORSHARES TRUST
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 July 1, 2013 and held for the period ended December 31, 2013.
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.
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Fund Name | Beginning Account Value 7/1/2013 | Ending Account Value 12/31/2013 | Annualized Expense Ratio for the Period(1) | Expenses Paid | |||||||||||||
AdvisorShares Accuvest Global Long Short ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,017.40 | 1.50 | % | $ | 7.63 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.64 | 1.50 | % | $ | 7.63 | |||||||||
AdvisorShares Accuvest Global Opportunities ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,088.90 | 1.25 | % | $ | 6.58 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | 1.25 | % | $ | 6.36 | |||||||||
AdvisorShares Athena International Bear ETF(2) | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 902.80 | 1.50 | % | $ | 6.49 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,015.92 | 1.50 | % | $ | 7.62 |
3
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
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Fund Name | Beginning Account Value 7/1/2013 | Ending Account Value 12/31/2013 | Annualized Expense Ratio for the Period(1) | Expenses Paid | |||||||||||||
AdvisorShares Cambria Global Tactical ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,046.70 | 1.25 | % | $ | 6.45 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | 1.25 | % | $ | 6.36 | |||||||||
AdvisorShares EquityPro ETF(3) | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,125.10 | 1.25 | % | $ | 6.70 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | 1.25 | % | $ | 7.63 | |||||||||
AdvisorShares Global Echo ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,114.10 | 1.50 | % | $ | 7.99 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.64 | 1.50 | % | $ | 7.63 | |||||||||
AdvisorShares Madrona Domestic ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,188.80 | 1.25 | % | $ | 6.90 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | 1.25 | % | $ | 6.36 | |||||||||
AdvisorShares Madrona Global Bond ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,022.10 | 0.95 | % | $ | 4.84 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,020.42 | 0.95 | % | $ | 4.84 | |||||||||
AdvisorShares Madrona International ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,206.90 | 1.25 | % | $ | 6.95 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | 1.25 | % | $ | 6.36 | |||||||||
AdvisorShares Meidell Tactical Advantage ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,056.80 | 1.35 | % | $ | 7.00 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.40 | 1.35 | % | $ | 6.87 | |||||||||
AdvisorShares Newfleet Multi-Sector Income ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,021.70 | 0.75 | % | $ | 3.82 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,021.42 | 0.75 | % | $ | 3.82 | |||||||||
AdvisorShares Peritus High Yield ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,069.30 | 1.18 | % | $ | 6.15 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,019.26 | 1.18 | % | $ | 6.01 |
4
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
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Fund Name | Beginning Account Value 7/1/2013 | Ending Account Value 12/31/2013 | Annualized Expense Ratio for the Period(1) | Expenses Paid | |||||||||||||
AdvisorShares Pring Turner Business Cycle ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,049.00 | 1.49 | % | $ | 7.70 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.69 | 1.49 | % | $ | 7.58 | |||||||||
AdvisorShares QAM Equity Hedge ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,086.20 | 1.50 | % | $ | 7.89 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.64 | 1.50 | % | $ | 7.63 | |||||||||
AdvisorShares Ranger Equity Bear ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 789.70 | 1.64 | % | $ | 7.40 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.94 | 1.64 | % | $ | 8.34 | |||||||||
AdvisorShares STAR Global Buy-Write ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,058.00 | 1.85 | % | $ | 9.60 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,015.88 | 1.85 | % | $ | 9.40 | |||||||||
AdvisorShares TrimTabs Float Shrink ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,184.10 | 0.99 | % | $ | 5.45 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,020.21 | 0.99 | % | $ | 5.04 | |||||||||
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | |||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,152.10 | 1.25 | % | $ | 6.78 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | 1.25 | % | $ | 6.36 |
(1) | Expense ratios reflect expense caps through the period ended December 31, 2013. |
(2) | Fund commenced operations on July 18, 2013. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 166/365 (to reflect commencement of operation). |
(3) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
5
ADVISORSHARES
ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 99.0% | ||||||||
Equity Fund — 99.0% | ||||||||
iShares Core S&P 500 ETF | 15,558 | $ | 2,888,343 | |||||
iShares MSCI Austria Capped ETF(a) | 100,942 | 1,999,661 | ||||||
iShares MSCI China ETF(a) | 169,095 | 8,153,761 | ||||||
iShares MSCI Germany ETF(a) | 207,093 | 6,577,274 | ||||||
iShares MSCI Japan ETF(a) | 700,844 | 8,501,238 | ||||||
iShares MSCI Netherlands ETF | 121,010 | 3,137,789 | ||||||
iShares MSCI Russia Capped ETF(a) | 274,175 | 6,004,432 | ||||||
iShares MSCI South Korea Capped ETF(a) | 59,371 | 3,839,523 | ||||||
iShares MSCI Taiwan ETF(a) | 121,968 | 1,758,778 | ||||||
Total Exchange Traded Funds (Cost $39,816,766) | 42,860,799 | |||||||
MONEY MARKET FUND — 1.1% | ||||||||
Dreyfus Cash Management – Investor Class, 0.00%(b) (Cost $465,257) | 465,257 | 465,257 | ||||||
Total Investments — 100.1% (Cost $40,282,023) | 43,326,056 | |||||||
Liabilities in Excess of Other Assets — (0.1)% | (22,675 | ) | ||||||
Net Assets — 100.0% | $ | 43,303,381 |
ETF — Exchange Traded Fund
(a) | All or a portion of this security has been segregated as collateral for open swap contracts. The aggregate market value of the collateral posted was $26,190,371 which includes cash in the amount of $663,518 as of December 31, 2013. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
6
ADVISORSHARES
ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 99.0 | % | ||
Money Market Fund | 1.1 | |||
Total Investments | 100.1 | |||
Liabilities in Excess of Other Assets | (0.1 | ) | ||
Net Assets | 100.0 | % |
Total Return Swaps contracts outstanding as of December 31, 2013.
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Reference Entity | Number of Contracts | Annual Financing Rate Received (Paid) | Termination Date | Notional Amounts | Fair Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
iShares MSCI Australia ETF | (67,518 | ) | (1.50 | )% | 06/09/2015 | $ | (1,687,275 | ) | $ | (1,648,818 | ) | $ | 38,457 | |||||||||||
iShares MSCI Brazil Capped ETF | (50,450 | ) | (0.75 | ) | 06/09/2015 | (2,245,530 | ) | (2,255,278 | ) | (9,748 | ) | |||||||||||||
iShares MSCI Canada ETF | (57,715 | ) | (0.38 | ) | 06/09/2015 | (1,650,072 | ) | (1,683,401 | ) | (33,329 | ) | |||||||||||||
iShares MSCI Chile Capped ETF | (89,869 | ) | (1.50 | ) | 06/09/2015 | (4,142,062 | ) | (4,276,230 | ) | (134,168 | ) | |||||||||||||
iShares MSCI Italy Capped ETF | (159,587 | ) | (0.94 | ) | 04/09/2015 | (2,366,675 | ) | (2,489,694 | ) | (123,019 | ) | |||||||||||||
iShares MSCI South Africa ETF | (43,166 | ) | (4.00 | ) | 06/09/2015 | (2,608,521 | ) | (2,791,024 | ) | (182,503 | ) | |||||||||||||
iShares MSCI Switzerland Capped ETF | (74,909 | ) | 0.68 | 06/09/2015 | (2,364,877 | ) | (2,470,132 | ) | (105,255 | ) | ||||||||||||||
iShares MSCI Thailand Capped ETF | (28,506 | ) | (2.00 | ) | 06/09/2015 | (2,073,241 | ) | (1,959,819 | ) | 113,423 | ||||||||||||||
iShares MSCI Turkey ETF | (10,000 | ) | (5.00 | ) | 06/09/2015 | (535,400 | ) | (478,460 | ) | 56,940 | ||||||||||||||
WisdomTree India Earnings Fund | (144,723 | ) | (2.25 | ) | 06/09/2015 | (2,451,608 | ) | (2,527,803 | ) | (76,195 | ) | |||||||||||||
Net Unrealized Depreciation | $ | (455,397 | ) |
Morgan Stanley 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.
7
ADVISORSHARES
ACCUVEST GLOBAL OPPORTUNITIES ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 99.2% | ||||||||
Equity Fund — 99.2% | ||||||||
Global X Norway 30 ETF | 114,416 | $ | 1,907,818 | |||||
iShares MSCI China ETF(a) | 97,639 | 4,708,153 | ||||||
iShares MSCI Germany ETF(a) | 120,423 | 3,824,634 | ||||||
iShares MSCI Japan ETF | 417,886 | 5,068,957 | ||||||
iShares MSCI Russia Capped ETF | 159,473 | 3,492,459 | ||||||
iShares MSCI South Korea Capped ETF | 34,423 | 2,226,135 | ||||||
Total Exchange Traded Funds (Cost $19,677,770) | 21,228,156 | |||||||
MONEY MARKET FUND — 1.5% | ||||||||
Dreyfus Cash Management – Investor Class, 0.00%(b) (Cost $322,564) | 322,564 | 322,564 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 15.6% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $3,342,825) | 3,342,825 | 3,342,825 | ||||||
Total Investments — 116.3% (Cost $23,343,159) | 24,893,545 | |||||||
Liabilities in Excess of Other Assets — (16.3)% | (3,482,539 | ) | ||||||
Net Assets — 100.0% | $ | 21,411,006 |
ETF — Exchange Traded Fund
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $3,259,243; the aggregate market value of the collateral held by the fund is $3,342,825. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(c) | Rate shown reflects the 1-day yield as of December 31, 2013. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 99.2 | % | ||
Money Market Fund | 17.1 | |||
Total Investments | 116.3 | |||
Liabilities in Excess of Other Assets | (16.3 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
8
ADVISORSHARES
ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 130.7% | ||||||||
Goldman Sachs Financial Square Fund, 0.06%(a) | 1,475,113 | $ | 1,475,113 | |||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $1,475,113) | 1,475,113 | |||||||
Securities Sold, Not Yet Purchased — (71.3)% | ||||||||
COMMON STOCKS — (71.3)% | ||||||||
Auto Manufacturers — (3.5)% | ||||||||
Volvo AB (Sweden)(b) | (2,970 | ) | (39,017 | ) | ||||
Auto Parts & Equipment — (2.2)% | ||||||||
Magna International, Inc. (Canada) | (300 | ) | (24,618 | ) | ||||
Banks — (21.1)% | ||||||||
Bank of Ireland (Ireland)*(b) | (1,090 | ) | (15,707 | ) | ||||
Bank of Montreal (Canada) | (920 | ) | (61,327 | ) | ||||
Canadian Imperial Bank of Commerce (Canada) | (550 | ) | (46,976 | ) | ||||
Toronto-Dominion Bank (The) (Canada) | (1,210 | ) | (114,030 | ) | ||||
Total Banks | (238,040 | ) | ||||||
Chemicals — (2.9)% | ||||||||
Akzo Nobel NV (Netherlands)(b) | (940 | ) | (24,318 | ) | ||||
Braskem SA (Brazil)*(b) | (450 | ) | (8,032 | ) | ||||
Total Chemicals | (32,350 | ) | ||||||
Diversified Financial Services — (0.4)% | ||||||||
Altisource Portfolio Solutions SA (Luxembourg)* | (30 | ) | (4,759 | ) | ||||
Electronics — (0.8)% | ||||||||
Sensata Technologies Holding NV (Netherlands)* | (240 | ) | (9,305 | ) | ||||
Entertainment — (0.5)% | ||||||||
Lions Gate Entertainment Corp. | (190 | ) | (6,015 | ) | ||||
Insurance — (13.4)% | ||||||||
ACE Ltd. (Switzerland) | (460 | ) | (47,624 | ) | ||||
Allied World Assurance Company Holdings AG (Switzerland) | (50 | ) | (5,641 | ) | ||||
Arch Capital Group Ltd.* (Bermuda) | (180 | ) | (10,744 | ) | ||||
Assured Guaranty Ltd. (Bermuda) | (250 | ) | (5,898 | ) | ||||
Everest Re Group Ltd. (Bermuda) | (70 | ) | (10,911 | ) | ||||
PartnerRe Ltd. (Bermuda) | (70 | ) | (7,380 | ) | ||||
RenaissanceRe Holdings Ltd. (Bermuda) | (60 | ) | (5,840 | ) | ||||
Sun Life Financial, Inc. (Canada) | (810 | ) | (28,617 | ) | ||||
White Mountains Insurance Group Ltd. | (10 | ) | (6,031 | ) | ||||
Willis Group Holdings PLC (United Kingdom) | (240 | ) | (10,754 | ) | ||||
XL Group PLC (Ireland) | (380 | ) | (12,099 | ) | ||||
Total Insurance | (151,539 | ) |
See accompanying Notes to Financial Statements.
9
ADVISORSHARES
ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Leisure Time — (3.4)% | ||||||||
Carnival PLC (United Kingdom)(b) | (930 | ) | $ | (38,548 | ) | |||
Media — (2.2)% | ||||||||
Pearson PLC (United Kingdom)(b) | (1,100 | ) | (24,640 | ) | ||||
Mining — (1.1)% | ||||||||
Norsk Hydro ASA (Norway)(b) | (2,760 | ) | (12,310 | ) | ||||
Miscellaneous Manufacturing — (2.4)% | ||||||||
Ingersoll-Rand PLC (Ireland) | (450 | ) | (27,720 | ) | ||||
Oil & Gas Services — (0.4)% | ||||||||
Frank's International NV (Netherlands) | (180 | ) | (4,860 | ) | ||||
Pharmaceuticals — (0.5)% | ||||||||
Taro Pharmaceutical Industries Ltd. (Israel)* | (60 | ) | (5,934 | ) | ||||
Real Estate — (1.2)% | ||||||||
Brookfield Office Properties, Inc. | (690 | ) | (13,282 | ) | ||||
Retail — (1.0)% | ||||||||
Tim Hortons, Inc. (Canada) | (200 | ) | (11,676 | ) | ||||
Semiconductors — (0.9)% | ||||||||
Marvell Technology Group Ltd | (690 | ) | (9,922 | ) | ||||
Software — (1.8)% | ||||||||
Dassault Systemes SA (France)(b) | (160 | ) | (19,888 | ) | ||||
Telecommunications — (11.2)% | ||||||||
Telecom Italia SpA (Italy)(b) | (2,440 | ) | (24,303 | ) | ||||
Telefonica SA (Spain)(b) | (6,230 | ) | (101,798 | ) | ||||
Total Telecommunications | (126,101 | ) | ||||||
Transportation — (0.4)% | ||||||||
Teekay Corp. (Bermuda) | (90 | ) | (4,321 | ) | ||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(768,563)] | (804,845 | ) | ||||||
Total Investments — 59.4% (Cost $706,550) | 670,268 | |||||||
Other Assets in Excess of Liabilities — 40.6% | 457,987 | |||||||
Net Assets — 100.0% | $ | 1,128,255 |
PLC — Public Limited Company
* | Non-income producing security |
(a) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(b) | American Depositary Receipt |
Cash of $1,511,042 has been segregated to cover margin requirement for open short sales as of December 31, 2013.
See accompanying Notes to Financial Statements.
10
ADVISORSHARES
ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Auto Manufacturers | (3.5 | )% | ||
Auto Parts & Equipment | (2.2 | ) | ||
Banks | (21.1 | ) | ||
Chemicals | (2.9 | ) | ||
Diversified Financial Services | (0.4 | ) | ||
Electronics | (0.8 | ) | ||
Entertainment | (0.5 | ) | ||
Insurance | (13.4 | ) | ||
Leisure Time | (3.4 | ) | ||
Media | (2.2 | ) | ||
Mining | (1.1 | ) | ||
Miscellaneous Manufacturing | (2.4 | ) | ||
Oil & Gas Services | (0.4 | ) | ||
Pharmaceuticals | (0.5 | ) | ||
Real Estate | (1.2 | ) | ||
Retail | (1.0 | ) | ||
Semiconductors | (0.9 | ) | ||
Software | (1.8 | ) | ||
Telecommunications | (11.2 | ) | ||
Transportation | (0.4 | ) | ||
Money Market Fund | 130.7 | |||
Total Investments | 59.4 | |||
Other Assets in Excess of Liabilities | 40.6 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
11
ADVISORSHARES
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 95.0% | ||||||||
Asset Allocation Fund — 4.7% | ||||||||
WisdomTree Managed Futures Strategy Fund* | 50,590 | $ | 2,101,509 | |||||
Commodity Fund — 3.6% | ||||||||
PowerShares DB Energy Fund* | 31,602 | 921,198 | ||||||
United States Commodity Index Fund*(a) | 12,467 | 699,150 | ||||||
Total Commodity Fund | 1,620,348 | |||||||
Currency Fund — 1.8% | ||||||||
CurrencyShares British Pound Sterling Trust*(a) | 1,274 | 207,917 | ||||||
CurrencyShares Euro Trust* | 1,477 | 200,857 | ||||||
CurrencyShares Swiss Franc Trust*(a) | 1,839 | 201,959 | ||||||
WisdomTree Chinese Yuan Fund | 7,989 | 203,528 | ||||||
Total Currency Fund | 814,261 | |||||||
Debt Fund — 37.9% | ||||||||
iShares 1–3 Year Treasury Bond ETF | 2,025 | 170,869 | ||||||
iShares 3–7 Year Treasury Bond ETF | 7,180 | 861,815 | ||||||
iShares 7–10 Year Treasury Bond ETF(a) | 20,790 | 2,063,200 | ||||||
iShares Core Total U.S. Bond Market ETF | 9,160 | 974,899 | ||||||
iShares iBoxx $ High Yield Corporate Bond ETF | 19,174 | 1,780,881 | ||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF(a) | 6,129 | 699,993 | ||||||
iShares MBS ETF | 9,300 | 972,501 | ||||||
iShares TIPS Bond ETF | 8,848 | 972,395 | ||||||
Market Vectors International High Yield Bond ETF | 10,000 | 272,500 | ||||||
PIMCO Enhanced Short Maturity ETF | 1,686 | 170,792 | ||||||
PowerShares Emerging Markets Sovereign Debt Portfolio(a) | 18,756 | 506,412 | ||||||
PowerShares Fundamental High Yield Corporate Bond Portfolio(a) | 78,435 | 1,506,736 | ||||||
PowerShares Senior Loan Portfolio | 17,150 | 426,692 | ||||||
SPDR Barclays International Treasury Bond ETF | 16,789 | 969,397 | ||||||
SPDR Barclays TIPS ETF(a) | 17,869 | 972,252 | ||||||
SPDR Blackstone/GSO Senior Loan ETF | 8,577 | 429,022 | ||||||
Vanguard Short-Term Bond ETF | 2,128 | 170,091 | ||||||
Vanguard Total Bond Market ETF | 26,017 | 2,081,100 | ||||||
Vanguard Total International Bond ETF | 19,622 | 973,644 | ||||||
Total Debt Fund | 16,975,191 |
See accompanying Notes to Financial Statements.
12
ADVISORSHARES
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Equity Fund — 47.0% | ||||||||
Cambria Shareholder Yield ETF(a) | 45,930 | $ | 1,348,964 | |||||
Consumer Discretionary Select Sector SPDR Fund | 10,868 | 726,308 | ||||||
Energy Select Sector SPDR Fund(a) | 7,401 | 655,062 | ||||||
Financial Select Sector SPDR Fund | 31,439 | 687,257 | ||||||
Global X FTSE Greece 20 ETF | 82,421 | 1,856,945 | ||||||
Health Care Select Sector SPDR Fund | 27,370 | 1,517,393 | ||||||
Industrial Select Sector SPDR Fund | 14,154 | 739,688 | ||||||
iShares China Large-Cap ETF(a) | 22,227 | 852,405 | ||||||
iShares MSCI Austria Capped ETF(a) | 35,695 | 707,118 | ||||||
iShares MSCI Belgium Capped ETF(a) | 60,867 | 997,604 | ||||||
iShares MSCI EAFE Small-Cap ETF | 19,242 | 980,957 | ||||||
iShares MSCI France ETF | 25,824 | 734,693 | ||||||
iShares MSCI Ireland Capped ETF(a) | 58,806 | 2,108,195 | ||||||
iShares MSCI Italy Capped ETF(a) | 47,617 | 742,349 | ||||||
iShares MSCI Spain Capped ETF(a) | 54,656 | 2,108,082 | ||||||
iShares MSCI Taiwan ETF | 60,247 | 868,762 | ||||||
Market Vectors Russia ETF(a) | 29,601 | 854,581 | ||||||
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio(a) | 8,307 | 365,259 | ||||||
PowerShares FTSE RAFI Emerging Markets Portfolio | 3,257 | 66,736 | ||||||
PowerShares FTSE RAFI U.S. 1500 Small-Mid Portfolio | 2,624 | 256,444 | ||||||
PowerShares QQQ Trust, Series 1 | 3,173 | 279,097 | ||||||
SPDR S&P Emerging Markets SmallCap ETF | 3,793 | 176,033 | ||||||
Vanguard FTSE All-World ex-US ETF | 7,115 | 360,944 | ||||||
Vanguard FTSE Emerging Markets ETF | 6,455 | 265,559 | ||||||
Vanguard Mid-Cap ETF | 1,799 | 197,926 | ||||||
WisdomTree Emerging Markets Equity Income Fund | 1,739 | 88,741 | ||||||
WisdomTree International SmallCap Dividend Fund(a) | 7,854 | 494,252 | ||||||
Total Equity Fund | 21,037,354 | |||||||
Total Exchange Traded Funds (Cost $39,334,732) | 42,548,663 |
See accompanying Notes to Financial Statements.
13
ADVISORSHARES
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 5.5% | ||||||||
Invesco Government & Agency Portfolio – Private Investment Class, 0.03%(b) (Cost $2,492,551) | 2,492,551 | $ | 2,492,551 | |||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 14.1% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $6,305,550) | 6,305,550 | 6,305,550 | ||||||
Total Investments — 114.6% (Cost $48,132,833) | 51,346,764 | |||||||
Liabilities in Excess of Other Assets — (14.6)% | (6,553,470 | ) | ||||||
Net Assets — 100.0% | $ | 44,793,294 |
ETF — Exchange Traded Fund
MBS — Mortgage Backed Securities
TIPS — Treasury Inflation Protected Securities
* | Non-income producing security |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $6,135,171; the aggregate market value of the collateral held by the fund is $6,305,550. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(c) | Rate shown reflects the 1-day yield as of December 31, 2013. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Asset Allocation Fund | 4.7 | % | ||
Commodity Fund | 3.6 | |||
Currency Fund | 1.8 | |||
Debt Fund | 37.9 | |||
Equity Fund | 47.0 | |||
Money Market Fund | 19.6 | |||
Total Investments | 114.6 | |||
Liabilities in Excess of Other Assets | (14.6 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
14
ADVISORSHARES
EQUITYPRO ETF†
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 97.8% | ||||||||
Equity Fund — 97.8% | ||||||||
iShares Global Consumer Discretionary ETF(a) | 17,700 | $ | 1,488,216 | |||||
iShares Global Consumer Staples ETF | 26,561 | 2,286,637 | ||||||
iShares Global Energy ETF | 37,311 | 1,612,581 | ||||||
iShares Global Financials ETF | 26,609 | 1,493,829 | ||||||
iShares Global Healthcare ETF | 26,446 | 2,277,001 | ||||||
iShares Global Industrials ETF(a) | 22,879 | 1,633,789 | ||||||
iShares Global Tech ETF(a) | 17,700 | 1,474,235 | ||||||
iShares Global Telecomm ETF | 22,579 | 1,542,394 | ||||||
iShares Global Materials ETF | 26,678 | 1,662,840 | ||||||
iShares Global Utilities ETF | 33,765 | 1,491,738 | ||||||
Total Exchange Traded Funds (Cost $16,610,334) | 16,963,260 | |||||||
MONEY MARKET FUND — 2.7% | ||||||||
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.01%(b) (Cost $471,740) | 471,740 | 471,740 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 4.9% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $855,075) | 855,075 | 855,075 | ||||||
Total Investments — 105.4% (Cost $17,937,149) | 18,290,075 | |||||||
Liabilities in Excess of Other Assets — (5.4)% | (935,008 | ) | ||||||
Net Assets — 100.0% | $ | 17,355,067 |
ETF — Exchange Traded Fund
† | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $837,234; the aggregate market value of the collateral held by the fund is $855,075. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(c) | Rate shown reflects the 1-day yield as of December 31, 2013. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 97.8 | % | ||
Money Market Fund | 7.6 | |||
Total Investments | 105.4 | |||
Liabilities in Excess of Other Assets | (5.4 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
15
ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 54.0% | ||||||||
Auto Parts & Equipment — 2.7% | ||||||||
Johnson Controls, Inc. | 2,449 | $ | 125,634 | |||||
Tenneco, Inc.* | 636 | 35,978 | ||||||
Total Auto Parts & Equipment | 161,612 | |||||||
Banks — 1.2% | ||||||||
City National Corp. | 516 | 40,878 | ||||||
Tompkins Financial Corp. | 609 | 31,296 | ||||||
Total Banks | 72,174 | |||||||
Beverages — 0.4% | ||||||||
Reed’s, Inc.*(a) | 2,780 | 22,184 | ||||||
Biotechnology — 3.0% | ||||||||
Illumina, Inc.* | 530 | 58,628 | ||||||
Novozymes A/S (Denmark)(b) | 2,842 | 120,103 | ||||||
Total Biotechnology | 178,731 | |||||||
Building Materials — 2.1% | ||||||||
Apogee Enterprises, Inc. | 1,761 | 63,238 | ||||||
Toto Ltd. (Japan)(b) | 1,997 | 63,346 | ||||||
Total Building Materials | 126,584 | |||||||
Commercial Services — 2.5% | ||||||||
Automatic Data Processing, Inc. | 697 | 56,325 | ||||||
MasterCard, Inc., Class A | 88 | 73,520 | ||||||
Where Food Comes From, Inc.* | 11,070 | 22,140 | ||||||
Total Commercial Services | 151,985 | |||||||
Computers — 4.3% | ||||||||
Apple, Inc. | 178 | 99,877 | ||||||
EMC Corp. | 1,749 | 43,987 | ||||||
Silver Spring Networks, Inc.* | 1,646 | 34,566 | ||||||
Stratasys Ltd. (Israel)* | 380 | 51,186 |
See accompanying Notes to Financial Statements.
16
ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Computers — 4.3% (continued) | ||||||||
Teradata Corp.* | 740 | $ | 33,663 | |||||
Total Computers | 263,279 | |||||||
Cosmetics/Personal Care — 0.7% | ||||||||
Procter & Gamble Co. (The) | 537 | 43,717 | ||||||
Distribution/Wholesale — 1.0% | ||||||||
LKQ Corp.* | 1,859 | 61,161 | ||||||
Diversified Financial Services — 1.9% | ||||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a) | 2,420 | 33,783 | ||||||
MarketAxess Holdings, Inc. | 350 | 23,405 | ||||||
Wageworks, Inc.* | 955 | 56,765 | ||||||
Total Diversified Financial Services | 113,953 | |||||||
Electronics — 1.0% | ||||||||
Itron, Inc.* | 341 | 14,128 | ||||||
Thermo Fisher Scientific, Inc. | 410 | 45,653 | ||||||
Total Electronics | 59,781 | |||||||
Energy — Alternate Sources — 0.3% | ||||||||
Enphase Energy, Inc.*(a) | 3,082 | 19,540 | ||||||
Environmental Control — 1.8% | ||||||||
Clean Harbors, Inc.* | 530 | 31,779 | ||||||
Stericycle, Inc.* | 409 | 47,514 | ||||||
Tomra Systems ASA (Norway)(b) | 2,992 | 27,864 | ||||||
Total Environmental Control | 107,157 | |||||||
Food — 2.9% | ||||||||
Boulder Brands, Inc.* | 1,864 | 29,563 | ||||||
Nestle SA (Switzerland)(b) | 331 | 24,358 | ||||||
SunOpta, Inc. (Canada)* | 1,600 | 16,016 |
See accompanying Notes to Financial Statements.
17
ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Food — 2.9% (continued) | ||||||||
United Natural Foods, Inc.* | 1,437 | $ | 108,336 | |||||
Total Food | 178,273 | |||||||
Healthcare – Products — 2.1% | ||||||||
Covidien PLC (Ireland) | 615 | 41,881 | ||||||
Haemonetics Corp.* | 390 | 16,431 | ||||||
Life Technologies Corp.* | 929 | 70,418 | ||||||
Total Healthcare – Products | 128,730 | |||||||
Healthcare – Services — 0.6% | ||||||||
Laboratory Corp. of America Holdings* | 400 | 36,548 | ||||||
Home Builders — 0.7% | ||||||||
Daiwa House Industry Co. Ltd. (Japan)(b) | 208 | 40,389 | ||||||
Internet — 3.2% | ||||||||
Amazon.com, Inc.* | 150 | 59,819 | ||||||
eBay, Inc.* | 679 | 37,270 | ||||||
F5 Networks, Inc.* | 394 | 35,799 | ||||||
Google, Inc., Class A* | 57 | 63,880 | ||||||
Total Internet | 196,768 | |||||||
Machinery – Diversified — 2.6% | ||||||||
Rockwell Automation, Inc. | 330 | 38,993 | ||||||
Tennant Co. | 370 | 25,090 | ||||||
Xylem, Inc. | 2,709 | 93,731 | ||||||
Total Machinery – Diversified | 157,814 | |||||||
Miscellaneous Manufacturing — 1.2% | ||||||||
Aptargroup, Inc. | 729 | 49,433 | ||||||
Pure Technologies Ltd. (Canada)* | 3,741 | 23,157 | ||||||
Total Miscellaneous Manufacturing | 72,590 | |||||||
Office Furnishings — 0.9% | ||||||||
Interface, Inc. | 2,561 | 56,240 |
See accompanying Notes to Financial Statements.
18
ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Pharmaceuticals — 4.2% | ||||||||
GlaxoSmithKline PLC (United Kingdom)(b) | 1,071 | $ | 57,181 | |||||
Isis Pharmaceuticals, Inc.* | 800 | 31,872 | ||||||
Novo Nordisk AG (Switzerland)(b) | 799 | 64,224 | ||||||
Perrigo Co. PLC | 336 | 51,562 | ||||||
Teva Pharmaceutical Industries Ltd. (Israel)(b) | 1,253 | 50,220 | ||||||
Total Pharmaceuticals | 255,059 | |||||||
Real Estate — 0.4% | ||||||||
Jones Lang LaSalle, Inc. | 245 | 25,086 | ||||||
Real Estate Investment Trusts — 0.7% | ||||||||
Prologis, Inc. | 1,117 | 41,273 | ||||||
Retail — 1.1% | ||||||||
CVS Caremark Corp. | 939 | 67,204 | ||||||
Semiconductors — 1.9% | ||||||||
Cree, Inc.* | 774 | 48,429 | ||||||
First Solar, Inc.* | 467 | 25,517 | ||||||
NXP Semiconductor NV (Netherlands)* | 849 | 38,995 | ||||||
Total Semiconductors | 112,941 | |||||||
Software — 1.3% | ||||||||
Adobe Systems, Inc.* | 849 | 50,838 | ||||||
Fiserv, Inc.* | 470 | 27,754 | ||||||
Total Software | 78,592 | |||||||
Telecommunications — 3.3% | ||||||||
Cisco Systems, Inc. | 1,918 | 43,059 | ||||||
Corning, Inc. | 1,793 | 31,951 | ||||||
IPG Photonics Corp.*(a) | 522 | 40,512 | ||||||
Telenor ASA (Norway)(b) | 457 | 32,708 | ||||||
Vodafone Group PLC (United Kingdom)(b) | 1,267 | 49,806 | ||||||
Total Telecommunications | 198,036 |
See accompanying Notes to Financial Statements.
19
ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares/ Principal | Value | ||||||
Transportation — 2.2% | ||||||||
Canadian National Railway Co. (Canada) | 1,358 | $ | 77,433 | |||||
Union Pacific Corp. | 321 | 53,928 | ||||||
Total Transportation | 131,361 | |||||||
Water — 1.8% | ||||||||
American Water Works Co., Inc. | 982 | 41,500 | ||||||
Severn Trent PLC (United Kingdom)(a)(b) | 2,442 | 68,974 | ||||||
Total Water | 110,474 | |||||||
Total Common Stocks (Cost $2,541,542) | 3,269,236 | |||||||
ASSET BACKED SECURITIES — 6.6% | ||||||||
SBA, 4.08%, 07/25/38@. | 148,548 | 172,073 | ||||||
SBAP, Class 1, Series 2009-20H, 4.45%, 08/01/29 | 214,597 | 229,252 | ||||||
Total Asset Backed Securities (Cost $414,679) | 401,325 | |||||||
COMMERCIAL MORTGAGE BACKED SECURITY — 4.2% | ||||||||
Government National Mortgage Association, Class AC, Series 2011 – 109, 3.25%, 04/16/43 (Cost $267,165) | 250,000 | 258,350 | ||||||
MUNICIPAL BOND — 6.6% | ||||||||
New York State Housing Finance Agency, 0.10%, 05/15/34@ (Cost $400,000) | 400,000 | 400,000 | ||||||
EXCHANGE TRADED FUNDS — 22.4% | ||||||||
Debt Fund — 10.2% | ||||||||
ProShares Short 20+ Year Treasury* | 1,200 | 39,492 | ||||||
SPDR Barclays Capital 1–3 Month T-Bill ETF* | 12,658 | 579,357 | ||||||
Total Debt Fund | 618,849 | |||||||
Equity Fund — 12.2% | ||||||||
AdvisorShares Ranger Equity Bear ETF*† | 1,300 | 16,588 | ||||||
First Trust ISE Global Wind Energy Index ETF(a) | 1,900 | 21,565 | ||||||
Global X Lithium ETF | 4,200 | 54,633 | ||||||
Guggenheim S&P Global Water Index ETF | 1,800 | 49,770 |
See accompanying Notes to Financial Statements.
20
ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Equity Fund — 12.2% (continued) | ||||||||
iShares MSCI KLD 400 Social ETF(a) | 3,600 | $ | 249,048 | |||||
PowerShares Cleantech Portfolio(a) | 1,900 | 60,363 | ||||||
PowerShares Global Clean Energy Portfolio | 6,400 | 77,376 | ||||||
PowerShares Water Resources Portfolio | 2,900 | 76,038 | ||||||
PowerShares Wilderhill Clean Energy Portfolio | 4,400 | 28,116 | ||||||
ProShares Short MSCI Emerging Markets*(a) | 300 | 7,890 | ||||||
ProShares Short Real Estate*(a) | 3,600 | 95,580 | ||||||
Total Equity Fund | 736,967 | |||||||
Total Exchange Traded Funds (Cost $1,285,035) | 1,355,816 | |||||||
MONEY MARKET FUNDS — 6.3% | ||||||||
Federated Government Obligation Fund, Class IS, 0.01%(c) | 19,619 | 19,619 | ||||||
Fidelity Institutional Money Market Government Portfolio – Class I, 0.01%(c) | 184,330 | 184,330 | ||||||
Fidelity Institutional Money Market Portfolio – Institutional Class, 0.01%(c) | 175,685 | 175,686 | ||||||
Total Money Market Funds (Cost $379,635) | 379,635 | |||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 5.4% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(d) (Cost $327,399) | 327,399 | 327,399 | ||||||
Total Investments — 105.5% (Cost $5,615,455) | 6,391,761 | |||||||
Liabilities in Excess of Other Assets — (5.5%) | (335,853 | ) | ||||||
Net Assets — 100.0% | $ | 6,055,908 |
ETF — Exchange Traded Fund
PLC — Public Limited Company
* | Non-income producing security |
@ | Variable rate instrument. The interest rate shown reflects the rate in effect at December 31, 2013. |
† | Affiliated Company |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $318,158; the aggregate market value of the collateral held by the fund is $327,399. |
(b) | American Depositary Receipt |
(c) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(d) | Rate shown reflects the 1-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
21
ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Asset Backed Securities | 6.6 | % | ||
Auto Parts & Equipment | 2.7 | |||
Banks | 1.2 | |||
Beverages | 0.4 | |||
Biotechnology | 3.0 | |||
Building Materials | 2.1 | |||
Commercial Mortgage Backed Security | 4.2 | |||
Commercial Services | 2.5 | |||
Computers | 4.3 | |||
Cosmetics/Personal Care | 0.7 | |||
Debt Fund | 10.2 | |||
Distribution/Wholesale | 1.0 | |||
Diversified Financial Services | 1.9 | |||
Electronics | 1.0 | |||
Energy – Alternate Sources | 0.3 | |||
Environmental Control | 1.8 | |||
Equity Fund | 12.2 | |||
Food | 2.9 | |||
Healthcare – Products | 2.1 | |||
Healthcare – Services | 0.6 | |||
Home Builders | 0.7 | |||
Internet | 3.2 | |||
Machinery – Diversified | 2.6 | |||
Miscellaneous Manufacturing | 1.2 | |||
Money Market Fund | 11.7 | |||
Municipal Bond | 6.6 | |||
Office Furnishings | 0.9 | |||
Pharmaceuticals | 4.2 | |||
Real Estate | 0.4 | |||
Real Estate Investment Trusts | 0.7 | |||
Retail | 1.1 | |||
Semiconductors | 1.9 | |||
Software | 1.3 | |||
Telecommunications | 3.3 | |||
Transportation | 2.2 | |||
Water | 1.8 | |||
Total Investments | 105.5 | |||
Liabilities in Excess of Other Assets | (5.5 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
22
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 99.0% | ||||||||
Advertising — 0.5% | ||||||||
Interpublic Group of Cos., Inc. (The) | 4,044 | $ | 71,579 | |||||
Omnicom Group, Inc. | 434 | 32,276 | ||||||
Total Advertising | 103,855 | |||||||
Aerospace/Defense — 1.4% | ||||||||
Boeing Co. (The) | 466 | 63,604 | ||||||
General Dynamics Corp. | 273 | 26,085 | ||||||
L-3 Communications Holdings, Inc. | 134 | 14,319 | ||||||
Lockheed Martin Corp. | 212 | 31,516 | ||||||
Northrop Grumman Corp. | 296 | 33,925 | ||||||
Raytheon Co. | 705 | 63,943 | ||||||
Rockwell Collins, Inc. | 340 | 25,133 | ||||||
United Technologies Corp. | 517 | 58,835 | ||||||
Total Aerospace/Defense | 317,360 | |||||||
Agriculture — 1.0% | ||||||||
Altria Group, Inc. | 874 | 33,553 | ||||||
Archer-Daniels-Midland Co. | 1,470 | 63,798 | ||||||
Lorillard, Inc. | 1,228 | 62,235 | ||||||
Philip Morris International, Inc. | 438 | 38,163 | ||||||
Reynolds American, Inc. | 563 | 28,144 | ||||||
Total Agriculture | 225,893 | |||||||
Airlines — 0.8% | ||||||||
Delta Air Lines, Inc. | 3,332 | 91,530 | ||||||
Southwest Airlines Co. | 5,083 | 95,764 | ||||||
Total Airlines | 187,294 | |||||||
Apparel — 0.7% | ||||||||
NIKE, Inc., Class B | 482 | 37,904 | ||||||
Ralph Lauren Corp. | 377 | 66,567 | ||||||
VF Corp. | 976 | 60,844 | ||||||
Total Apparel | 165,315 | |||||||
Auto Manufacturers — 0.9% | ||||||||
Ford Motor Co. | 4,419 | 68,185 | ||||||
General Motors Co.* | 2,267 | 92,652 | ||||||
PACCAR, Inc. | 697 | 41,242 | ||||||
Total Auto Manufacturers | 202,079 |
See accompanying Notes to Financial Statements.
23
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Auto Parts & Equipment — 1.2% | ||||||||
BorgWarner, Inc. | 1,422 | $ | 79,504 | |||||
Goodyear Tire & Rubber Co. (The) | 3,774 | 90,010 | ||||||
Johnson Controls, Inc. | 1,759 | 90,237 | ||||||
Total Auto Parts & Equipment | 259,751 | |||||||
Banks — 4.1% | ||||||||
Bank of America Corp. | 2,267 | 35,297 | ||||||
Bank of New York Mellon Corp. (The) | 1,806 | 63,102 | ||||||
BB&T Corp. | 906 | 33,812 | ||||||
Capital One Financial Corp. | 751 | 57,534 | ||||||
Citigroup, Inc. | 1,459 | 76,029 | ||||||
Comerica, Inc. | 452 | 21,488 | ||||||
Fifth Third Bancorp | 2,136 | 44,920 | ||||||
Goldman Sachs Group, Inc. (The) | 247 | 43,783 | ||||||
Huntington Bancshares, Inc. | 2,853 | 27,531 | ||||||
JPMorgan Chase & Co. | 728 | 42,573 | ||||||
KeyCorp | 1,258 | 16,882 | ||||||
M&T Bank Corp. | 541 | 62,983 | ||||||
Morgan Stanley | 1,891 | 59,302 | ||||||
Northern Trust Corp. | 849 | 52,545 | ||||||
PNC Financial Services Group, Inc. | 491 | 38,092 | ||||||
Regions Financial Corp. | 2,786 | 27,554 | ||||||
State Street Corp. | 876 | 64,290 | ||||||
SunTrust Banks, Inc. | 805 | 29,632 | ||||||
US Bancorp | 665 | 26,866 | ||||||
Wells Fargo & Co. | 1,163 | 52,800 | ||||||
Zions Bancorporation | 724 | 21,691 | ||||||
Total Banks | 898,706 | |||||||
Beverages — 1.3% | ||||||||
Beam, Inc. | 289 | 19,669 | ||||||
Brown-Forman Corp., Class B | 360 | 27,205 | ||||||
Coca-Cola Co. (The) | 530 | 21,894 | ||||||
Coca-Cola Enterprises, Inc. | 1,028 | 45,366 | ||||||
Constellation Brands, Inc., Class A* | 942 | 66,298 | ||||||
Dr Pepper Snapple Group, Inc. | 657 | 32,009 | ||||||
Molson Coors Brewing Co., Class B | 345 | 19,372 | ||||||
Monster Beverage Corp.* | 563 | 38,155 | ||||||
PepsiCo, Inc. | 267 | 22,145 | ||||||
Total Beverages | 292,113 |
See accompanying Notes to Financial Statements.
24
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Biotechnology — 1.6% | ||||||||
Alexion Pharmaceuticals, Inc.* | 467 | $ | 62,139 | |||||
Amgen, Inc. | 334 | 38,129 | ||||||
Biogen Idec, Inc.* | 220 | 61,545 | ||||||
Celgene Corp.* | 434 | 73,329 | ||||||
Gilead Sciences, Inc.* | 1,023 | 76,879 | ||||||
Regeneron Pharmaceuticals, Inc.* | 130 | 35,781 | ||||||
Total Biotechnology | 347,802 | |||||||
Building Materials — 0.4% | ||||||||
Masco Corp. | 3,926 | 89,395 | ||||||
Chemicals — 2.6% | ||||||||
Air Products & Chemicals, Inc. | 285 | 31,857 | ||||||
Airgas, Inc. | 315 | 35,233 | ||||||
CF Industries Holdings, Inc. | 343 | 79,933 | ||||||
Dow Chemical Co. (The) | 895 | 39,738 | ||||||
E.I. du Pont de Nemours & Co. | 518 | 33,654 | ||||||
Eastman Chemical Co. | 647 | 52,213 | ||||||
Ecolab, Inc. | 313 | 32,636 | ||||||
FMC Corp. | 619 | 46,710 | ||||||
International Flavors & Fragrances, Inc. | 297 | 25,536 | ||||||
Monsanto Co. | 512 | 59,674 | ||||||
Mosaic Co. (The) | 313 | 14,796 | ||||||
PPG Industries, Inc. | 133 | 25,225 | ||||||
Praxair, Inc. | 283 | 36,798 | ||||||
Sherwin-Williams Co. (The) | 253 | 46,425 | ||||||
Sigma-Aldrich Corp. | 187 | 17,580 | ||||||
Total Chemicals | 578,008 | |||||||
Coal — 0.1% | ||||||||
CONSOL Energy, Inc. | 391 | 14,874 | ||||||
Peabody Energy Corp. | 402 | 7,851 | ||||||
Total Coal | 22,725 | |||||||
Commercial Services — 2.9% | ||||||||
ADT Corp. (The) | 736 | 29,786 | ||||||
Automatic Data Processing, Inc. | 266 | 21,495 | ||||||
Cintas Corp. | 623 | 37,125 | ||||||
Equifax, Inc. | 792 | 54,719 | ||||||
H&R Block, Inc. | 2,442 | 70,916 | ||||||
Iron Mountain, Inc. | 1,092 | 33,142 | ||||||
MasterCard, Inc., Class A | 73 | 60,989 | ||||||
McGraw Hill Financial Inc. (The) | 956 | 74,759 | ||||||
Moody’s Corp. | 626 | 49,122 |
See accompanying Notes to Financial Statements.
25
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Commercial Services — 2.9% (continued) | ||||||||
Quanta Services, Inc.* | 1,526 | $ | 48,161 | |||||
Robert Half International, Inc. | 1,303 | 54,713 | ||||||
Total System Services, Inc. | 1,726 | 57,441 | ||||||
Western Union Co. (The) | 2,745 | 47,351 | ||||||
Total Commercial Services | 639,719 | |||||||
Computers — 2.9% | ||||||||
Apple, Inc. | 145 | 81,361 | ||||||
Cognizant Technology Solutions Corp., Class A* | 817 | 82,501 | ||||||
Computer Sciences Corp. | 1,513 | 84,546 | ||||||
EMC Corp. | 3,004 | 75,551 | ||||||
International Business Machines Corp. | 431 | 80,843 | ||||||
NetApp, Inc. | 1,737 | 71,460 | ||||||
SanDisk Corp. | 1,188 | 83,801 | ||||||
Teradata Corp.* | 1,712 | 77,879 | ||||||
Western Digital Corp. | 116 | 9,732 | ||||||
Total Computers | 647,674 | |||||||
Cosmetics/Personal Care — 0.6% | ||||||||
Avon Products, Inc. | 3,167 | 54,536 | ||||||
Colgate-Palmolive Co. | 296 | 19,302 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 376 | 28,320 | ||||||
Procter & Gamble Co. (The) | 329 | 26,784 | ||||||
Total Cosmetics/Personal Care | 128,942 | |||||||
Distribution/Wholesale — 0.8% | ||||||||
Fastenal Co. | 767 | 36,440 | ||||||
Fossil Group, Inc.* | 567 | 68,006 | ||||||
Genuine Parts Co. | 370 | 30,780 | ||||||
W.W. Grainger, Inc. | 181 | 46,231 | ||||||
Total Distribution/Wholesale | 181,457 | |||||||
Diversified Financial Services — 4.6% | ||||||||
American Express Co. | 661 | 59,973 | ||||||
Ameriprise Financial, Inc. | 770 | 88,588 | ||||||
BlackRock, Inc. | 182 | 57,598 | ||||||
Charles Schwab Corp. (The) | 1,768 | 45,968 | ||||||
CME Group, Inc. | 322 | 25,264 | ||||||
Discover Financial Services | 1,329 | 74,358 | ||||||
E*TRADE Financial Corp.* | 3,903 | 76,655 | ||||||
Franklin Resources, Inc. | 1,215 | 70,142 | ||||||
IntercontinentalExchange Group, Inc. | 338 | 76,023 |
See accompanying Notes to Financial Statements.
26
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Diversified Financial Services — 4.6% (continued) | ||||||||
Invesco Ltd. | 2,260 | $ | 82,264 | |||||
Legg Mason, Inc. | 2,130 | 92,612 | ||||||
NASDAQ OMX Group, Inc. (The) | 2,000 | 79,600 | ||||||
SLM Corp. | 2,704 | 71,061 | ||||||
T. Rowe Price Group, Inc. | 598 | 50,094 | ||||||
Visa, Inc., Class A | 302 | 67,249 | ||||||
Total Diversified Financial Services | 1,017,449 | |||||||
Electric — 1.4% | ||||||||
AES Corp. (The) | 2,648 | 38,422 | ||||||
Ameren Corp. | 335 | 12,114 | ||||||
American Electric Power Co., Inc. | 286 | 13,368 | ||||||
CMS Energy Corp. | 639 | 17,106 | ||||||
Consolidated Edison, Inc. | 184 | 10,171 | ||||||
Dominion Resources, Inc. | 241 | 15,590 | ||||||
DTE Energy Co. | 224 | 14,871 | ||||||
Duke Energy Corp. | 161 | 11,111 | ||||||
Edison International | 370 | 17,131 | ||||||
Integrys Energy Group, Inc. | 226 | 12,297 | ||||||
NextEra Energy, Inc. | 201 | 17,210 | ||||||
Northeast Utilities | 543 | 23,018 | ||||||
Pepco Holdings, Inc. | 660 | 12,626 | ||||||
PG&E Corp. | 221 | 8,902 | ||||||
Pinnacle West Capital Corp. | 236 | 12,489 | ||||||
Public Service Enterprise Group, Inc. | 235 | 7,529 | ||||||
SCANA Corp. | 334 | 15,675 | ||||||
Southern Co. (The) | 332 | 13,648 | ||||||
TECO Energy, Inc.(a) | 650 | 11,206 | ||||||
Wisconsin Energy Corp. | 324 | 13,394 | ||||||
Xcel Energy, Inc. | 537 | 15,004 | ||||||
Total Electric | 312,882 | |||||||
Electrical Components & Equipment — 0.4% | ||||||||
AMETEK, Inc. | 1,016 | 53,513 | ||||||
Emerson Electric Co. | 605 | 42,459 | ||||||
Total Electrical Components & Equipment | 95,972 | |||||||
Electronics — 1.6% | ||||||||
Agilent Technologies, Inc. | 651 | 37,231 | ||||||
Amphenol Corp., Class A | 445 | 39,685 | ||||||
FLIR Systems, Inc. | 1,322 | 39,792 | ||||||
Honeywell International, Inc. | 599 | 54,731 | ||||||
Jabil Circuit, Inc. | 3,548 | 61,877 |
See accompanying Notes to Financial Statements.
27
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Electronics — 1.6% (continued) | ||||||||
PerkinElmer, Inc. | 1,311 | $ | 54,052 | |||||
Thermo Fisher Scientific, Inc. | 325 | 36,189 | ||||||
Waters Corp.* | 260 | 26,000 | ||||||
Total Electronics | 349,557 | |||||||
Engineering & Construction — 0.6% | ||||||||
Fluor Corp. | 717 | 57,568 | ||||||
Jacobs Engineering Group, Inc.* | 1,087 | 68,470 | ||||||
Total Engineering & Construction | 126,038 | |||||||
Entertainment — 0.3% | ||||||||
International Game Technology | 3,862 | 70,134 | ||||||
Environmental Control — 0.3% | ||||||||
Republic Services, Inc. | 301 | 9,993 | ||||||
Stericycle, Inc.* | 261 | 30,320 | ||||||
Waste Management, Inc. | 804 | 36,076 | ||||||
Total Environmental Control | 76,389 | |||||||
Food — 2.3% | ||||||||
Campbell Soup Co. | 390 | 16,879 | ||||||
ConAgra Foods, Inc. | 1,591 | 53,617 | ||||||
General Mills, Inc. | 450 | 22,459 | ||||||
Hershey Co. (The) | 220 | 21,391 | ||||||
Hormel Foods Corp. | 785 | 35,458 | ||||||
JM Smucker Co. (The) | 256 | 26,527 | ||||||
Kellogg Co. | 412 | 25,161 | ||||||
Kraft Foods Group, Inc. | 358 | 19,303 | ||||||
Kroger Co. (The) | 1,092 | 43,167 | ||||||
McCormick & Co., Inc. | 307 | 21,158 | ||||||
Mondelez International, Inc., Class A | 1,242 | 43,843 | ||||||
Safeway, Inc. | 1,380 | 44,947 | ||||||
Sysco Corp. | 780 | 28,158 | ||||||
Tyson Foods, Inc., Class A | 2,229 | 74,582 | ||||||
Whole Foods Market, Inc. | 417 | 24,115 | ||||||
Total Food | 500,765 | |||||||
Forest Products & Paper — 0.5% | ||||||||
International Paper Co. | 1,811 | 88,793 | ||||||
MeadWestvaco Corp. | 680 | 25,113 | ||||||
Total Forest Products & Paper | 113,906 |
See accompanying Notes to Financial Statements.
28
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Gas — 0.2% | ||||||||
AGL Resources, Inc. | 262 | $ | 12,374 | |||||
CenterPoint Energy, Inc. | 480 | 11,126 | ||||||
NiSource, Inc. | 529 | 17,394 | ||||||
Sempra Energy | 147 | 13,195 | ||||||
Total Gas | 54,089 | |||||||
Hand/Machine Tools — 0.4% | ||||||||
Snap-On, Inc. | 444 | 48,627 | ||||||
Stanley Black & Decker, Inc. | 379 | 30,581 | ||||||
Total Hand/Machine Tools | 79,208 | |||||||
Healthcare – Products — 2.6% | ||||||||
Baxter International, Inc. | 601 | 41,800 | ||||||
Becton Dickinson and Co. | 248 | 27,401 | ||||||
Boston Scientific Corp.* | 1,438 | 17,285 | ||||||
C.R. Bard, Inc. | 255 | 34,155 | ||||||
CareFusion Corp.* | 1,246 | 49,616 | ||||||
DENTSPLY International, Inc. | 909 | 44,068 | ||||||
Edwards Lifesciences Corp.* | 593 | 38,996 | ||||||
Hospira, Inc.* | 800 | 33,024 | ||||||
Intuitive Surgical, Inc.* | 84 | 32,263 | ||||||
Life Technologies Corp.* | 475 | 36,005 | ||||||
Medtronic, Inc. | 406 | 23,300 | ||||||
Patterson Cos., Inc. | 808 | 33,290 | ||||||
St. Jude Medical, Inc. | 755 | 46,772 | ||||||
Stryker Corp. | 418 | 31,408 | ||||||
Varian Medical Systems, Inc.* | 562 | 43,662 | ||||||
Zimmer Holdings, Inc. | 464 | 43,240 | ||||||
Total Healthcare – Products | 576,285 | |||||||
Healthcare – Services — 2.9% | ||||||||
Aetna, Inc. | 1,247 | 85,532 | ||||||
Cigna Corp. | 1,022 | 89,405 | ||||||
DaVita HealthCare Partners Inc.* | 1,043 | 66,095 | ||||||
Humana, Inc. | 787 | 81,234 | ||||||
Laboratory Corp. of America Holdings* | 622 | 56,832 | ||||||
Quest Diagnostics, Inc. | 1,023 | 54,771 | ||||||
Tenet Healthcare Corp*. | 761 | 32,053 | ||||||
UnitedHealth Group, Inc. | 1,156 | 87,047 | ||||||
WellPoint, Inc. | 840 | 77,608 | ||||||
Total Healthcare – Services | 630,577 |
See accompanying Notes to Financial Statements.
29
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Home Builders — 1.0% | ||||||||
D.R. Horton, Inc.* | 4,210 | $ | 93,967 | |||||
Lennar Corp., Class A | 393 | 15,547 | ||||||
PulteGroup, Inc. | 5,013 | 102,115 | ||||||
Total Home Builders | 211,629 | |||||||
Home Furnishings — 0.8% | ||||||||
Harman International Industries, Inc. | 1,024 | 83,815 | ||||||
Whirlpool Corp. | 627 | 98,351 | ||||||
Total Home Furnishings | 182,166 | |||||||
Household Products/Wares — 0.4% | ||||||||
Avery Dennison Corp. | 785 | 39,399 | ||||||
Clorox Co. (The) | 229 | 21,242 | ||||||
Kimberly-Clark Corp. | 201 | 20,997 | ||||||
Total Household Products/Wares | 81,638 | |||||||
Housewares — 0.2% | ||||||||
Newell Rubbermaid, Inc. | 1,326 | 42,976 | ||||||
Insurance — 5.2% | ||||||||
Aflac, Inc. | 855 | 57,114 | ||||||
Allstate Corp. (The) | 1,251 | 68,229 | ||||||
American International Group, Inc. | 1,316 | 67,182 | ||||||
Assurant, Inc. | 948 | 62,919 | ||||||
Berkshire Hathaway, Inc., Class B* | 278 | 32,960 | ||||||
Chubb Corp. (The) | 669 | 64,645 | ||||||
Genworth Financial, Inc., Class A* | 5,790 | 89,919 | ||||||
Hartford Financial Services Group, Inc. (The) | 2,152 | 77,967 | ||||||
Lincoln National Corp. | 1,627 | 83,986 | ||||||
Marsh & McLennan Cos., Inc. | 919 | 44,443 | ||||||
MetLife, Inc. | 1,601 | 86,326 | ||||||
Principal Financial Group, Inc. | 1,655 | 81,608 | ||||||
Progressive Corp. (The) | 1,368 | 37,305 | ||||||
Prudential Financial, Inc. | 974 | 89,822 | ||||||
Torchmark Corp. | 719 | 56,190 | ||||||
Travelers Cos., Inc. (The) | 729 | 66,004 | ||||||
Unum Group | 1,989 | 69,774 | ||||||
Total Insurance | 1,136,393 | |||||||
Internet — 2.6% | ||||||||
Amazon.com, Inc.* | 29 | 11,565 | ||||||
eBay, Inc.* | 1,232 | 67,624 | ||||||
Expedia, Inc. | 1,292 | 90,001 | ||||||
F5 Networks, Inc.* | 659 | 59,877 |
See accompanying Notes to Financial Statements.
30
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Internet — 2.6% (continued) | ||||||||
Google, Inc., Class A* | 62 | $ | 69,484 | |||||
Netflix, Inc.* | 33 | 12,150 | ||||||
priceline.com, Inc.* | 64 | 74,394 | ||||||
Symantec Corp. | 1,911 | 45,061 | ||||||
TripAdvisor, Inc.* | 411 | 34,043 | ||||||
VeriSign, Inc.* | 776 | 46,389 | ||||||
Yahoo! Inc.* | 1,362 | 55,079 | ||||||
Total Internet | 565,667 | |||||||
Iron/Steel — 0.3% | ||||||||
Cliffs Natural Resources, Inc.(a) | 669 | 17,535 | ||||||
Nucor Corp. | 1,003 | 53,540 | ||||||
Total Iron/Steel | 71,075 | |||||||
Leisure Time — 0.5% | ||||||||
Carnival Corp. (Panama) | 1,049 | 42,138 | ||||||
Harley-Davidson, Inc. | 828 | 57,331 | ||||||
Total Leisure Time | 99,469 | |||||||
Lodging — 0.7% | ||||||||
Marriott International, Inc., Class A | 1,209 | 59,676 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 291 | 23,120 | ||||||
Wynn Resorts Ltd. | 345 | 67,003 | ||||||
Total Lodging | 149,799 | |||||||
Machinery – Construction & Mining — 0.4% | ||||||||
Caterpillar, Inc. | 187 | 16,981 | ||||||
Joy Global, Inc.(a) | 1,222 | 71,475 | ||||||
Total Machinery – Construction & Mining | 88,456 | |||||||
Machinery – Diversified — 1.4% | ||||||||
Cummins, Inc. | 347 | 48,917 | ||||||
Deere & Co. | 731 | 66,762 | ||||||
Flowserve Corp. | 903 | 71,183 | ||||||
Rockwell Automation, Inc. | 329 | 38,875 | ||||||
Roper Industries, Inc. | 340 | 47,151 | ||||||
Xylem, Inc. | 910 | 31,486 | ||||||
Total Machinery – Diversified | 304,374 | |||||||
Media — 3.1% | ||||||||
Cablevision Systems Corp., Class A | 700 | 12,551 | ||||||
CBS Corp., Class B | 932 | 59,406 | ||||||
Comcast Corp., Class A | 1,217 | 63,241 |
See accompanying Notes to Financial Statements.
31
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Media — 3.1% (continued) | ||||||||
DIRECTV* | 1,285 | $ | 88,781 | |||||
Discovery Communications, Inc., Class A* | 736 | 66,549 | ||||||
Gannett Co., Inc. | 813 | 24,048 | ||||||
Scripps Networks Interactive, Inc., Class A | 594 | 51,328 | ||||||
Time Warner Cable, Inc. | 498 | 67,479 | ||||||
Time Warner, Inc. | 750 | 52,290 | ||||||
Twenty-First Century Fox, Inc., Class A | 1,852 | 65,153 | ||||||
Viacom, Inc., Class B | 729 | 63,671 | ||||||
Walt Disney Co. (The) | 779 | 59,516 | ||||||
Total Media | 674,013 | |||||||
Metal Fabricate/Hardware — 0.3% | ||||||||
Precision Castparts Corp. | 249 | 67,056 | ||||||
Mining — 0.6% | ||||||||
Alcoa, Inc. | 8,796 | 93,502 | ||||||
Freeport-McMoRan Copper & Gold, Inc. | 1,229 | 46,382 | ||||||
Total Mining | 139,884 | |||||||
Miscellaneous Manufacturing — 2.0% | ||||||||
3M Co. | 348 | 48,807 | ||||||
Danaher Corp. | 627 | 48,405 | ||||||
Dover Corp. | 712 | 68,737 | ||||||
General Electric Co. | 1,812 | 50,790 | ||||||
Illinois Tool Works, Inc. | 316 | 26,569 | ||||||
Leggett & Platt, Inc. | 2,194 | 67,882 | ||||||
Pall Corp. | 361 | 30,811 | ||||||
Parker Hannifin Corp. | 206 | 26,500 | ||||||
Textron, Inc. | 1,777 | 65,323 | ||||||
Total Miscellaneous Manufacturing | 433,824 | |||||||
Office/Business Equipment — 0.6% | ||||||||
Pitney Bowes, Inc. | 2,569 | 59,858 | ||||||
Xerox Corp. | 5,927 | 72,131 | ||||||
Total Office/Business Equipment | 131,989 | |||||||
Oil & Gas — 6.0% | ||||||||
Anadarko Petroleum Corp. | 121 | 9,598 | ||||||
Cabot Oil & Gas Corp. | 1,576 | 61,086 | ||||||
Chesapeake Energy Corp. | 2,891 | 78,462 |
See accompanying Notes to Financial Statements.
32
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Oil & Gas — 6.0% (continued) | ||||||||
Chevron Corp. | 150 | $ | 18,736 | |||||
ConocoPhillips | 258 | 18,228 | ||||||
Denbury Resources, Inc.* | 4,323 | 71,027 | ||||||
Diamond Offshore Drilling, Inc. | 1,257 | 71,548 | ||||||
EOG Resources, Inc. | 278 | 46,659 | ||||||
EQT Corp. | 754 | 67,694 | ||||||
Exxon Mobil Corp. | 884 | 89,461 | ||||||
Helmerich & Payne, Inc. | 95 | 7,987 | ||||||
Hess Corp. | 168 | 13,944 | ||||||
Marathon Oil Corp. | 2,148 | 75,824 | ||||||
Marathon Petroleum Corp. | 981 | 89,987 | ||||||
Murphy Oil Corp. | 1,036 | 67,216 | ||||||
Newfield Exploration Co.* | 1,171 | 28,842 | ||||||
Noble Energy, Inc. | 824 | 56,123 | ||||||
Occidental Petroleum Corp. | 591 | 56,204 | ||||||
Phillips 66 | 959 | 73,968 | ||||||
Pioneer Natural Resources Co. | 98 | 18,039 | ||||||
QEP Resources, Inc. | 1,025 | 31,416 | ||||||
Range Resources Corp. | 212 | 17,874 | ||||||
Rowan Cos. PLC, Class A* | 2,187 | 77,332 | ||||||
Southwestern Energy Co.*(a) | 660 | 25,958 | ||||||
Tesoro Corp. | 1,676 | 98,046 | ||||||
Valero Energy Corp. | 1,132 | 57,053 | ||||||
Total Oil & Gas | 1,328,312 | |||||||
Oil & Gas Services — 1.9% | ||||||||
Baker Hughes, Inc. | 1,412 | 78,027 | ||||||
Cameron International Corp.* | 1,230 | 73,222 | ||||||
FMC Technologies, Inc.* | 1,173 | 61,242 | ||||||
Halliburton Co. | 1,591 | 80,743 | ||||||
National Oilwell Varco, Inc. | 660 | 52,490 | ||||||
Schlumberger Ltd. | 818 | 73,710 | ||||||
Total Oil & Gas Services | 419,434 | |||||||
Packaging & Containers — 0.9% | ||||||||
Ball Corp. | 1,084 | 56,000 | ||||||
Bemis Co., Inc. | 589 | 24,125 | ||||||
Owens-Illinois, Inc.* | 2,232 | 79,861 |
See accompanying Notes to Financial Statements.
33
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Packaging & Containers — 0.9% (continued) | ||||||||
Sealed Air Corp. | 1,362 | $ | 46,376 | |||||
Total Packaging & Containers | 206,362 | |||||||
Pharmaceuticals — 3.7% | ||||||||
Abbott Laboratories | 1,289 | 49,407 | ||||||
AbbVie, Inc. | 290 | 15,315 | ||||||
Actavis PLC* | 544 | 91,392 | ||||||
Allergan, Inc. | 539 | 59,872 | ||||||
AmerisourceBergen Corp. | 870 | 61,170 | ||||||
Bristol-Myers Squibb Co. | 294 | 15,626 | ||||||
Cardinal Health, Inc. | 760 | 50,776 | ||||||
Express Scripts Holding Co.* | 1,223 | 85,904 | ||||||
Forest Laboratories, Inc.* | 1,177 | 70,655 | ||||||
Johnson & Johnson | 205 | 18,776 | ||||||
McKesson Corp. | 463 | 74,728 | ||||||
Mead Johnson Nutrition Co. | 264 | 22,113 | ||||||
Merck & Co., Inc. | 247 | 12,362 | ||||||
Mylan, Inc.* | 1,550 | 67,270 | ||||||
Perrigo Co. PLC | 380 | 58,315 | ||||||
Pfizer, Inc. | 469 | 14,365 | ||||||
Zoetis, Inc. | 1,402 | 45,831 | ||||||
Total Pharmaceuticals | 813,877 | |||||||
Pipelines — 0.6% | ||||||||
Kinder Morgan, Inc. | 2,139 | 77,004 | ||||||
ONEOK, Inc. | 494 | 30,717 | ||||||
Spectra Energy Corp. | 348 | 12,396 | ||||||
Williams Cos., Inc. (The) | 478 | 18,436 | ||||||
Total Pipelines | 138,553 | |||||||
Real Estate — 0.3% | ||||||||
CBRE Group, Inc., Class A* | 2,848 | 74,902 |
See accompanying Notes to Financial Statements.
34
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Real Estate Investment Trust — 0.6% | ||||||||
American Tower Corp. | 368 | $ | 29,374 | |||||
Apartment Investment & Management Co., Class A | 260 | 6,737 | ||||||
AvalonBay Communities, Inc. | 60 | 7,094 | ||||||
HCP, Inc. | 231 | 8,390 | ||||||
Host Hotels & Resorts, Inc. | 1,212 | 23,561 | ||||||
Kimco Realty Corp. | 404 | 7,979 | ||||||
Plum Creek Timber Co., Inc. | 183 | 8,511 | ||||||
Public Storage | 62 | 9,332 | ||||||
Simon Property Group, Inc. | 61 | 9,282 | ||||||
Ventas, Inc. | 124 | 7,103 | ||||||
Vornado Realty Trust | 107 | 9,500 | ||||||
Weyerhaeuser Co. | 342 | 10,797 | ||||||
Total Real Estate Investment Trust | 137,660 | |||||||
Retail — 9.3% | ||||||||
Abercrombie & Fitch Co., Class A | 2,248 | 73,982 | ||||||
AutoNation, Inc.* | 1,576 | 78,311 | ||||||
AutoZone, Inc.* | 170 | 81,250 | ||||||
Bed Bath & Beyond, Inc.* | 889 | 71,387 | ||||||
Best Buy Co., Inc. | 824 | 32,861 | ||||||
CarMax, Inc.* | 910 | 42,788 | ||||||
Chipotle Mexican Grill, Inc.* | 55 | 29,303 | ||||||
Coach, Inc. | 1,189 | 66,739 | ||||||
Costco Wholesale Corp. | 254 | 30,228 | ||||||
CVS Caremark Corp. | 1,104 | 79,013 | ||||||
Darden Restaurants, Inc. | 416 | 22,618 | ||||||
Dollar General Corp.* | 1,150 | 69,368 | ||||||
Dollar Tree, Inc.* | 1,123 | 63,360 | ||||||
Family Dollar Stores, Inc. | 601 | 39,047 | ||||||
GameStop Corp., Class A | 1,314 | 64,728 | ||||||
Gap, Inc. (The) | 1,950 | 76,206 | ||||||
Home Depot, Inc. (The) | 941 | 77,482 | ||||||
Kohl’s Corp. | 1,165 | 66,114 | ||||||
L Brands, Inc. | 708 | 43,790 | ||||||
Lowe’s Cos., Inc. | 1,438 | 71,253 | ||||||
Macy’s, Inc. | 1,764 | 94,198 | ||||||
McDonald’s Corp. | 351 | 34,057 | ||||||
Nordstrom, Inc. | 962 | 59,452 | ||||||
O’Reilly Automotive, Inc.* | 442 | 56,890 | ||||||
PetSmart, Inc. | 915 | 66,566 |
See accompanying Notes to Financial Statements.
35
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Retail — 9.3% (continued) | ||||||||
PVH Corp. | 491 | $ | 66,786 | |||||
Ross Stores, Inc. | 684 | 51,252 | ||||||
Staples, Inc. | 1,258 | 19,990 | ||||||
Starbucks Corp. | 511 | 40,057 | ||||||
Target Corp. | 860 | 54,412 | ||||||
Tiffany & Co. | 619 | 57,431 | ||||||
TJX Cos., Inc. (The) | 754 | 48,052 | ||||||
Urban Outfitters, Inc.* | 1,931 | 71,640 | ||||||
Walgreen Co. | 993 | 57,038 | ||||||
Wal-Mart Stores, Inc. | 592 | 46,584 | ||||||
Yum! Brands, Inc. | 533 | 40,300 | ||||||
Total Retail | 2,044,533 | |||||||
Savings & Loans — 0.2% | ||||||||
People’s United Financial, Inc. | 2,345 | 35,456 | ||||||
Semiconductors — 5.0% | ||||||||
Altera Corp. | 597 | 19,420 | ||||||
Analog Devices, Inc. | 913 | 46,499 | ||||||
Applied Materials, Inc. | 4,500 | 79,605 | ||||||
Broadcom Corp., Class A | 2,814 | 83,435 | ||||||
First Solar, Inc.* | 1,396 | 76,278 | ||||||
Intel Corp. | 2,757 | 71,572 | ||||||
KLA-Tencor Corp. | 1,068 | 68,843 | ||||||
Lam Research Corp.* | 1,498 | 81,566 | ||||||
Linear Technology Corp. | 891 | 40,585 | ||||||
LSI Corp. | 8,378 | 92,326 | ||||||
Microchip Technology, Inc.(a) | 948 | 42,423 | ||||||
Micron Technology, Inc.* | 4,774 | 103,882 | ||||||
NVIDIA Corp. | 2,775 | 44,456 | ||||||
QUALCOMM, Inc. | 1,084 | 80,487 | ||||||
Teradyne, Inc.* | 4,377 | 77,123 | ||||||
Texas Instruments, Inc. | 997 | 43,778 | ||||||
Xilinx, Inc. | 971 | 44,588 | ||||||
Total Semiconductors | 1,096,866 | |||||||
Software — 3.7% | ||||||||
Adobe Systems, Inc.* | 321 | 19,221 | ||||||
Akamai Technologies, Inc.* | 651 | 30,714 |
See accompanying Notes to Financial Statements.
36
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Software — 3.7% (continued) | ||||||||
Autodesk, Inc.* | 964 | $ | 48,518 | |||||
CA, Inc. | 2,416 | 81,298 | ||||||
Cerner Corp.* | 420 | 23,411 | ||||||
Citrix Systems, Inc.* | 1,099 | 69,512 | ||||||
Dun & Bradstreet Corp. (The) | 514 | 63,093 | ||||||
Electronic Arts, Inc.* | 2,838 | 65,104 | ||||||
Fidelity National Information Services, Inc. | 1,228 | 65,919 | ||||||
Fiserv, Inc.* | 972 | 57,397 | ||||||
Intuit, Inc. | 705 | 53,806 | ||||||
Microsoft Corp. | 1,164 | 43,568 | ||||||
Oracle Corp. | 2,162 | 82,718 | ||||||
Paychex, Inc. | 507 | 23,084 | ||||||
Red Hat, Inc.* | 1,215 | 68,089 | ||||||
Salesforce.com, Inc.* | 184 | 10,155 | ||||||
Total Software | 805,607 | |||||||
Telecommunications — 2.1% | ||||||||
AT&T, Inc. | 659 | 23,170 | ||||||
CenturyLink, Inc. | 263 | 8,377 | ||||||
Cisco Systems, Inc. | 2,978 | 66,856 | ||||||
Corning, Inc. | 5,042 | 89,848 | ||||||
Crown Castle International Corp.* | 240 | 17,623 | ||||||
Frontier Communications Corp.(a) | 12,658 | 58,860 | ||||||
Harris Corp. | 155 | 10,821 | ||||||
JDS Uniphase Corp.* | 3,915 | 50,817 | ||||||
Juniper Networks, Inc.* | 3,399 | 76,715 | ||||||
Motorola Solutions, Inc. | 432 | 29,160 | ||||||
Verizon Communications, Inc. | 724 | 35,577 | ||||||
Total Telecommunications | 467,824 | |||||||
Toys/Games/Hobbies — 0.3% | ||||||||
Hasbro, Inc. | 585 | 32,181 | ||||||
Mattel, Inc. | 868 | 41,299 | ||||||
Total Toys/Games/Hobbies | 73,480 |
See accompanying Notes to Financial Statements.
37
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Transportation — 2.4% | ||||||||
C.H. Robinson Worldwide, Inc. | 671 | $ | 39,146 | |||||
CSX Corp. | 2,249 | 64,704 | ||||||
Expeditors International of Washington, Inc. | 439 | 19,426 | ||||||
FedEx Corp. | 463 | 66,565 | ||||||
Kansas City Southern | 412 | 51,018 | ||||||
Norfolk Southern Corp. | 812 | 75,378 | ||||||
Ryder System, Inc. | 1,128 | 83,224 | ||||||
Union Pacific Corp. | 477 | 80,136 | ||||||
United Parcel Service, Inc., Class B | 418 | 43,923 | ||||||
Total Transportation | 523,520 | |||||||
Total Common Stocks (Cost $16,474,305) | 21,838,133 | |||||||
MONEY MARKET FUND — 1.0% | ||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%(b) (Cost $219,998) | 219,998 | 219,998 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 0.9% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $189,656) | 189,656 | 189,656 | ||||||
Total Investments — 100.9% (Cost $16,883,959) | 22,247,787 | |||||||
Liabilities in Excess of Other Assets — (0.9)% | (201,104 | ) | ||||||
Net Assets — 100.0% | $ | 22,046,683 |
* | Non-income producing security |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $207,667; the aggregate market value of the collateral held by the fund is $214,749. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $25,093. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(c) | Rate shown reflects the 1-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
38
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 0.5 | % | ||
Aerospace/Defense | 1.4 | |||
Agriculture | 1.0 | |||
Airlines | 0.8 | |||
Apparel | 0.7 | |||
Auto Manufacturers | 0.9 | |||
Auto Parts & Equipment | 1.2 | |||
Banks | 4.1 | |||
Beverages | 1.3 | |||
Biotechnology | 1.6 | |||
Building Materials | 0.4 | |||
Chemicals | 2.6 | |||
Coal | 0.1 | |||
Commercial Services | 2.9 | |||
Computers | 2.9 | |||
Cosmetics/Personal Care | 0.6 | |||
Distribution/Wholesale | 0.8 | |||
Diversified Financial Services | 4.6 | |||
Electric | 1.4 | |||
Electrical Components & Equipment | 0.4 | |||
Electronics | 1.6 | |||
Engineering & Construction | 0.6 | |||
Entertainment | 0.3 | |||
Environmental Control | 0.3 | |||
Food | 2.3 | |||
Forest Products & Paper | 0.5 | |||
Gas | 0.2 | |||
Hand/Machine Tools | 0.4 | |||
Healthcare – Products | 2.6 | |||
Healthcare – Services | 2.9 | |||
Home Builders | 1.0 | |||
Home Furnishings | 0.8 | |||
Household Products/Wares | 0.4 | |||
Housewares | 0.2 | |||
Insurance | 5.2 | |||
Internet | 2.6 | |||
Iron/Steel | 0.3 | |||
Leisure Time | 0.5 | |||
Lodging | 0.7 | |||
Machinery – Construction & Mining | 0.4 | |||
Machinery – Diversified | 1.4 | |||
Media | 3.1 |
See accompanying Notes to Financial Statements.
39
ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS (continued)
![]() | ![]() | |||
% of Net Assets | ||||
Metal Fabricate/Hardware | 0.3 | % | ||
Mining | 0.6 | |||
Miscellaneous Manufacturing | 2.0 | |||
Office/Business Equipment | 0.6 | |||
Oil & Gas | 6.0 | |||
Oil & Gas Services | 1.9 | |||
Packaging & Containers | 0.9 | |||
Pharmaceuticals | 3.7 | |||
Pipelines | 0.6 | |||
Real Estate | 0.3 | |||
Real Estate Investment Trust | 0.6 | |||
Retail | 9.3 | |||
Savings & Loans | 0.2 | |||
Semiconductors | 5.0 | |||
Software | 3.7 | |||
Telecommunications | 2.1 | |||
Toys/Games/Hobbies | 0.3 | |||
Transportation | 2.4 | |||
Money Market Fund | 1.9 | |||
Total Investments | 100.9 | |||
Liabilities in Excess of Other Assets | (0.9 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
40
ADVISORSHARES
MADRONA GLOBAL BOND ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 99.3% | ||||||||
Debt Fund — 99.3% | ||||||||
AdvisorShares Peritus High Yield ETF†(a) | 50,844 | $ | 2,629,652 | |||||
iShares iBoxx $ Investment Grade Corporate Bond ETF(a) | 19,174 | 2,189,863 | ||||||
iShares International Treasury Bond ETF | 6,481 | 650,498 | ||||||
PIMCO 1–5 Year U.S. TIPS Index ETF(a) | 12,396 | 654,757 | ||||||
PIMCO Canada Bond Index ETF | 4,667 | 432,258 | ||||||
PowerShares Build America Bond Portfolio | 40,009 | 1,092,246 | ||||||
PowerShares Emerging Markets Sovereign Debt Portfolio(a) | 63,174 | 1,705,698 | ||||||
PowerShares Financial Preferred Portfolio(a) | 90,043 | 1,525,328 | ||||||
PowerShares Insured National Municipal Bond Portfolio | 57,849 | 1,328,213 | ||||||
PowerShares International Corporate Bond Portfolio(a) | 45,012 | 1,328,304 | ||||||
PowerShares Senior Loan Portfolio(a) | 80,280 | 1,997,366 | ||||||
SPDR Barclays Convertible Securities ETF | 19,233 | �� | 898,758 | |||||
SPDR DB International Government Inflation-Protected Bond ETF | 10,937 | 639,268 | ||||||
Vanguard Intermediate-Term Government Bond ETF(a) | 10,326 | 647,853 | ||||||
Vanguard Long-Term Government Bond ETF(a) | 9,842 | 629,396 | ||||||
Vanguard Mortgage-Backed Securities ETF | 29,791 | 1,521,724 | ||||||
Vanguard Short-Term Bond ETF | 8,195 | 655,026 | ||||||
WisdomTree Emerging Markets Corporate Bond Fund | 17,421 | 1,292,638 | ||||||
Total Exchange Traded Funds (Cost $22,124,510) | 21,818,846 | |||||||
MONEY MARKET FUND — 0.7% | ||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%(b) (Cost $166,221) | 166,221 | 166,221 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 30.5% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $6,707,087) | 6,707,087 | 6,707,087 | ||||||
Total Investments — 130.5% (Cost $28,997,818) | 28,692,154 | |||||||
Liabilities in Excess of Other Assets — (30.5)% | (6,713,735 | ) | ||||||
Net Assets — 100.0% | $ | 21,978,419 |
ETF — Exchange Traded Fund
TIPS — Treasury Inflation Protected Securities
† | Affiliated Company |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $6,545,589; the aggregate market value of the collateral held by the fund is $6,707,087. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(c) | Rate shown reflects the 1-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
41
ADVISORSHARES
MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Debt Fund | 99.3 | % | ||
Money Market Fund | 31.2 | |||
Total Investments | 130.5 | |||
Liabilities in Excess of Other Assets | (30.5 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
42
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 100.2% | ||||||||
Advertising — 0.8% | ||||||||
Publicis Groupe SA (France)(a) | 3,267 | $ | 75,043 | |||||
WPP PLC (United Kingdom)(a) | 676 | 77,645 | ||||||
Total Advertising | 152,688 | |||||||
Aerospace/Defense — 2.4% | ||||||||
BAE Systems PLC (United Kingdom)(a) | 575 | 16,842 | ||||||
Embraer SA (Brazil)(a) | 2,234 | 71,890 | ||||||
European Aeronautic Defence and Space Co. NV (Netherlands)(a) | 7,322 | 140,216 | ||||||
Finmeccanica SpA (Italy)*(a) | 32,027 | 120,742 | ||||||
Rolls-Royce Holdings PLC (United Kingdom)*(a) | 932 | 98,820 | ||||||
Total Aerospace/Defense | 448,510 | |||||||
Agriculture — 0.6% | ||||||||
British American Tobacco PLC (United Kingdom)(a) | 504 | 54,140 | ||||||
Imperial Tobacco Group PLC (United Kingdom)(a) | 831 | 64,635 | ||||||
Total Agriculture | 118,775 | |||||||
Airlines — 0.3% | ||||||||
Ryanair Holdings PLC (Ireland)*(a) | 1,308 | 61,384 | ||||||
Apparel — 0.8% | ||||||||
Adidas AG (Germany)(a) | 1,645 | 105,659 | ||||||
LVMH Moet Hennessy Louis Vuitton SA (France)(a) | 1,049 | 38,393 | ||||||
Total Apparel | 144,052 | |||||||
Auto Manufacturers — 4.1% | ||||||||
Bayerische Motoren Werke AG (Germany)(a) | 681 | 26,852 | ||||||
Daimler AG (Germany)(a) | 369 | 32,228 | ||||||
Fiat SpA (Italy)*(a) | 14,476 | 120,151 | ||||||
Honda Motor Co. Ltd. (Japan)(a) | 3,176 | 131,328 | ||||||
Nissan Motor Co. Ltd. (Japan)(a)(b) | 6,195 | 104,076 | ||||||
Tata Motors Ltd. (India)(a) | 3,640 | 112,112 | ||||||
Toyota Motor Corp. (Japan)(a) | 993 | 121,066 | ||||||
Volvo AB (Sweden)(a)(b) | 7,579 | 99,565 | ||||||
Total Auto Manufacturers | 747,378 | |||||||
Auto Parts & Equipment — 0.3% | ||||||||
Cie Generale des Etablissements Michelin (France)(a) | 1,596 | 34,075 | ||||||
Nokian Renkaat OYJ (Finland)(a) | 742 | 17,793 | ||||||
Total Auto Parts & Equipment | 51,868 |
See accompanying Notes to Financial Statements.
43
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Banks — 10.4% | ||||||||
Australia & New Zealand Banking Group Ltd. (Australia)(a)(b) | 1,097 | $ | 31,648 | |||||
Banco Bilbao Vizcaya Argentaria SA (Spain)(a) | 9,784 | 121,224 | ||||||
Banco Bradesco SA (Brazil)(a) | 2,103 | 26,351 | ||||||
Banco Santander SA (Spain)(a)(b) | 13,875 | 125,846 | ||||||
Bancolombia SA (Colombia)(a) | 1,029 | 50,442 | ||||||
BNP Paribas SA (France)(a) | 2,743 | 107,526 | ||||||
Commerzbank AG (Germany)(a)(b) | 3,551 | 57,881 | ||||||
Credit Suisse Group AG (Switzerland)*(a) | 3,692 | 114,600 | ||||||
HSBC Holdings PLC (United Kingdom)(a) | 1,996 | 110,039 | ||||||
Intesa Sanpaolo SpA (Italy)(a) | 7,332 | 109,613 | ||||||
Itau Unibanco Holding SA (Brazil)(a) | 6,194 | 84,053 | ||||||
Lloyds Banking Group PLC (United Kingdom)*(a)(b) | 23,527 | 125,164 | ||||||
National Australia Bank Ltd. (Australia)(a) | 565 | 17,543 | ||||||
Nordea Bank AB (Sweden)(a)(b) | 7,276 | 98,299 | ||||||
PT Bank Mandiri Persero Tbk (Indonesia)(a) | 14,085 | 90,989 | ||||||
Royal Bank of Scotland Group PLC (United Kingdom)*(a) | 10,495 | 118,908 | ||||||
Sberbank of Russia (Russia)(a) | 7,144 | 89,800 | ||||||
Societe Generale SA (France)(a) | 10,676 | 124,365 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. (Japan)(a) | 11,598 | 61,353 | ||||||
Turkiye Garanti Bankasi AS (Turkey)(a) | 15,915 | 51,087 | ||||||
UBS AG (Switzerland)* | 6,062 | 116,694 | ||||||
United Overseas Bank Ltd. (Singapore)(a) | 2,160 | 72,619 | ||||||
Westpac Banking Corp. (Australia)(a) | 496 | 14,409 | ||||||
Total Banks | 1,920,453 | |||||||
Beverages — 2.4% | ||||||||
Anheuser-Busch InBev NV (Belgium)(a) | 446 | 47,481 | ||||||
Carlsberg A/S, Class B (Denmark)(a)(b) | 4,149 | 91,693 | ||||||
Diageo PLC (United Kingdom)(a) | 453 | 59,986 | ||||||
Fomento Economico Mexicano SAB de CV (Mexico)(a) | 249 | 24,370 | ||||||
Kirin Holdings Co. Ltd. (Japan)(a)(b) | 3,290 | 47,376 | ||||||
Pernod Ricard SA (France)(a) | 2,103 | 47,780 | ||||||
SABMiller PLC (United Kingdom)(a) | 893 | 45,793 | ||||||
Treasury Wine Estates Ltd. (Australia)(a)(b) | 20,193 | 86,830 | ||||||
Total Beverages | 451,309 |
See accompanying Notes to Financial Statements.
44
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Building Materials — 0.6% | ||||||||
CRH PLC (Ireland)(a) | 1,080 | $ | 27,594 | |||||
Desarrolladora Homex SAB de CV (Mexico)*(a) | 71,622 | 83,798 | ||||||
Total Building Materials | 111,392 | |||||||
Chemicals — 3.8% | ||||||||
Air Liquide SA (France)(a) | 841 | 23,859 | ||||||
Akzo Nobel NV (Netherlands)(a) | 3,427 | 88,656 | ||||||
BASF SE (Germany)(a) | 365 | 39,343 | ||||||
Koninklijke DSM NV (Netherlands)(a)(b) | 5,211 | 102,865 | ||||||
Linde AG (Germany)(a)(b) | 3,237 | 67,987 | ||||||
Lonza Group AG (Switzerland)*(a) | 11,984 | 113,249 | ||||||
Methanex Corp. (Canada) | 1,120 | 66,349 | ||||||
Nitto Denko Corp. (Japan)(a) | 3,635 | 77,535 | ||||||
Sasol Ltd. (South Africa)(a) | 1,462 | 72,296 | ||||||
Syngenta AG (Switzerland)(a) | 710 | 56,757 | ||||||
Total Chemicals | 708,896 | |||||||
Commercial Services — 2.6% | ||||||||
Brambles Ltd. (Australia)(a)(b) | 2,114 | 37,291 | ||||||
Experian PLC (Ireland)(a) | 2,784 | 51,309 | ||||||
iSoftStone Holdings Ltd.(China)*(a)(b) | 22,248 | 113,910 | ||||||
New Oriental Education & Technology Group Inc. (China)(a) | 2,828 | 89,082 | ||||||
SGS SA (Switzerland)(a) | 1,881 | 43,206 | ||||||
TAL Education Group*(a) | 3,433 | 75,492 | ||||||
WNS Holdings Ltd.(India)*(a) | 1,816 | 39,788 | ||||||
WuXi Pharmatech Cayman, Inc. (China)*(a) | 923 | 35,425 | ||||||
Total Commercial Services | 485,503 | |||||||
Computers — 1.6% | ||||||||
Cap Gemini SA (France)(a)(b) | 1,751 | 59,306 | ||||||
CGI Group, Inc., Class A (Canada)* | 910 | 30,449 | ||||||
Infosys Ltd. (India)(a) | 550 | 31,130 | ||||||
Lenovo Group Ltd. (Hong Kong)(a) | 5,528 | 135,049 | ||||||
Wipro Ltd. (India)(a)(b) | 3,203 | 40,326 | ||||||
Total Computers | 296,260 |
See accompanying Notes to Financial Statements.
45
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Cosmetics/Personal Care — 0.1% | ||||||||
L'Oreal SA (France)(a) | 433 | $ | 15,220 | |||||
Distribution/Wholesale — 0.3% | ||||||||
Wolseley PLC (United Kingdom)(a)(b) | 9,997 | 57,182 | ||||||
Diversified Financial Services — 2.9% | ||||||||
Daiwa Securities Group, Inc. (Japan)(a)(b) | 13,906 | 140,311 | ||||||
Deutsche Boerse AG (Germany)(a) | 1,637 | 13,505 | ||||||
Fly Leasing Ltd. (Ireland)(a) | 4,223 | 67,864 | ||||||
Julius Baer Group Ltd. (Switzerland)*(a)(b) | 10,930 | 105,474 | ||||||
Noah Holdings Ltd.(China)(a)(b) | 4,272 | 76,896 | ||||||
Nomura Holdings, Inc. (Japan)(a)(b) | 16,580 | 128,827 | ||||||
Total Diversified Financial Services | 532,877 | |||||||
Electric — 1.3% | ||||||||
EDP – Energias de Portugal SA (Portugal)(a)(b) | 1,972 | 72,116 | ||||||
Korea Electric Power Corp. (South Korea)(a)(b) | 6,311 | 104,826 | ||||||
Power Assets Holdings Ltd. (Hong Kong)(a)(b) | 2,544 | 20,377 | ||||||
SSE PLC (United Kingdom)(a) | 1,872 | 42,607 | ||||||
Total Electric | 239,926 | |||||||
Electrical Components & Equipment — 1.8% | ||||||||
Canadian Solar, Inc.*(b) | 3,842 | 114,569 | ||||||
Hitachi Ltd. (Japan)(a)(b) | 1,351 | 103,230 | ||||||
Nidec Corp. (Japan)(a)(b) | 3,220 | 79,566 | ||||||
Schneider Electric SA (France)(a)(b) | 2,433 | 42,699 | ||||||
Total Electrical Components & Equipment | 340,064 | |||||||
Electronics — 1.0% | ||||||||
LG Display Co. Ltd. (South Korea)(a)(b) | 10,744 | 130,432 | ||||||
Sony Corp. (Japan)(a) | 2,622 | 45,335 | ||||||
Total Electronics | 175,767 | |||||||
Energy – Alternate Sources — 0.6% | ||||||||
Vestas Wind Systems A/S (Denmark)*(a)(b) | 10,461 | 102,728 | ||||||
Engineering & Construction — 1.0% | ||||||||
ABB Ltd. (Switzerland)*(a) | 4,042 | 107,355 | ||||||
JGC Corp. (Japan)(a)(b) | 1,000 | 78,100 | ||||||
Total Engineering & Construction | 185,455 | |||||||
Entertainment — 0.4% | ||||||||
Bona Film Group Ltd.(China)*(a)(b) | 12,481 | 71,641 |
See accompanying Notes to Financial Statements.
46
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Food — 2.4% | ||||||||
BRF SA (Brazil)(a) | 3,237 | $ | 67,556 | |||||
Carrefour SA (France)(a) | 18,661 | 147,049 | ||||||
Cia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil)(a)(b) | 1,183 | 52,845 | ||||||
Danone SA (France)(a) | 847 | 12,298 | ||||||
Delhaize Group SA (Belgium)(a) | 747 | 44,387 | ||||||
Koninklijke Ahold NV (Netherlands)(a) | 740 | 13,327 | ||||||
Nestle SA (Switzerland)(a) | 291 | 21,415 | ||||||
Tesco PLC (United Kingdom)(a) | 1,114 | 18,760 | ||||||
Unilever NV (Netherlands)(c) | 484 | 19,471 | ||||||
Unilever PLC (United Kingdom)(a) | 688 | 28,345 | ||||||
WM Supermarkets PLC (United Kingdom)(a)(b) | 686 | 15,003 | ||||||
Total Food | 440,456 | |||||||
Food Service — 0.5% | ||||||||
Compass Group PLC (United Kingdom)(a)(b) | 5,505 | 88,790 | ||||||
Forest Products & Paper — 1.9% | ||||||||
Fibria Celulose SA (Brazil)*(a)(b) | 3,529 | 41,219 | ||||||
Stora ENSO OYJ (Finland)(a) | 11,186 | 112,419 | ||||||
Svenska Cellulosa AB SCA (Sweden)(a)(b) | 3,219 | 99,403 | ||||||
UPM-Kymmene OYJ (Finland)(a) | 5,232 | 89,101 | ||||||
Total Forest Products & Paper | 342,142 | |||||||
Gas — 0.4% | ||||||||
Centrica PLC (United Kingdom)(a)(b) | 1,103 | 25,568 | ||||||
Hong Kong & China Gas Co. Ltd. (Hong Kong)(a) | 15,867 | 36,811 | ||||||
Snam SpA (Italy)(a)(b) | 1,139 | 12,745 | ||||||
Total Gas | 75,124 | |||||||
Healthcare – Products — 1.4% | ||||||||
Essilor International SA (France)(a)(b) | 459 | 24,570 | ||||||
Luxottica Group SpA (Italy)(a) | 1,167 | 62,925 | ||||||
Mindray Medical International Ltd. (China)(a)(b) | 1,231 | 44,759 | ||||||
Smith & Nephew PLC (United Kingdom)(a)(b) | 597 | 42,829 | ||||||
Trinity Biotech PLC (Ireland)(a) | 3,270 | 82,208 | ||||||
Total Healthcare – Products | 257,291 | |||||||
Healthcare – Services — 0.2% | ||||||||
Fresenius Medical Care AG & Co. KGaA (Germany)(a) | 841 | 29,923 |
See accompanying Notes to Financial Statements.
47
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Holding Companies – Diversified — 0.5% | ||||||||
Jardine Strategic Holdings Ltd. (Hong Kong)(a)(b) | 5,212 | $ | 83,444 | |||||
Home Furnishings — 0.5% | ||||||||
Electrolux AB (Sweden)(a) | 1,888 | 99,328 | ||||||
Insurance — 4.4% | ||||||||
Aegon NV, Class G (Netherlands)(c) | 5,977 | 56,662 | ||||||
AIA Group Ltd. (Hong Kong)(a) | 3,224 | 64,964 | ||||||
Allianz SE (Germany)(a) | 4,778 | 86,625 | ||||||
Aviva PLC (United Kingdom)(a)(b) | 4,353 | 65,948 | ||||||
AXA SA (France)(a) | 3,595 | 100,264 | ||||||
ING Groep NV (Netherlands)*(a) | 9,475 | 132,745 | ||||||
MS&AD Insurance Group Holdings (Japan)(a) | 8,850 | 118,590 | ||||||
Prudential PLC (United Kingdom)(a)(b) | 2,078 | 93,510 | ||||||
Zurich Insurance Group AG (Switzerland)*(a)(b) | 3,477 | 101,424 | ||||||
Total Insurance | 820,732 | |||||||
Internet — 3.5% | ||||||||
Baidu, Inc. (China)*(a) | 208 | 36,999 | ||||||
Bitauto Holdings Ltd.(China)*(a) | 1,812 | 57,911 | ||||||
Ctrip.com International Ltd. (China)*(a) | 363 | 18,012 | ||||||
Giant Interactive Group, Inc. (China)(a) | 9,650 | 108,466 | ||||||
Jiayuan.com International Ltd.(China)(a)(b) | 2,600 | 15,600 | ||||||
NetEase, Inc. (China)(a) | 889 | 69,875 | ||||||
Perfect World Co. Ltd.(China)(a) | 3,933 | 69,929 | ||||||
Qihoo 360 Technology Co. Ltd. (China)*(a) | 153 | 12,554 | ||||||
QIWI PLC (Cyprus)(a) | 562 | 31,472 | ||||||
Soufun Holdings Ltd.(a) | 1,999 | 164,738 | ||||||
Yahoo Japan Corp. (Japan)(a) | 4,765 | 52,987 | ||||||
Total Internet | 638,543 | |||||||
Iron/Steel — 1.2% | ||||||||
Cia Siderurgica Nacional SA (Brazil)(a)(b) | 15,999 | 99,194 | ||||||
Gerdau SA (Brazil)(a) | 7,196 | 56,417 | ||||||
POSCO (South Korea)(a) | 355 | 27,690 | ||||||
Ternium SA (Luxembourg)(a)(b) | 1,325 | 41,472 | ||||||
Total Iron/Steel | 224,773 |
See accompanying Notes to Financial Statements.
48
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Leisure Time — 0.3% | ||||||||
Carnival PLC (United Kingdom)(a) | 518 | $ | 21,471 | |||||
SEGA Sammy Holdings, Inc. (Japan)(a)(b) | 5,799 | 36,940 | ||||||
Total Leisure Time | 58,411 | |||||||
Lodging — 1.8% | ||||||||
China Lodging Group Ltd.(China)*(a) | 2,676 | 81,511 | ||||||
Home Inns & Hotels Management, Inc.*(a) | 2,100 | 91,644 | ||||||
InterContinental Hotels Group PLC (United Kingdom)(a) | 1,192 | 39,848 | ||||||
Melco Crown Entertainment Ltd., Class Participation Certificate (Hong Kong)*(a) | 2,859 | 112,130 | ||||||
Total Lodging | 325,133 | |||||||
Machinery – Construction & Mining — 0.5% | ||||||||
Komatsu Ltd. (Japan)(a) | 4,075 | 83,863 | ||||||
Machinery – Diversified — 0.4% | ||||||||
Alstom SA (France)(a) | 22,261 | 80,140 | ||||||
Media — 1.1% | ||||||||
British Sky Broadcasting Group PLC (United Kingdom)(a) | 1,487 | 83,614 | ||||||
Pearson PLC (United Kingdom)(a) | 1,473 | 32,995 | ||||||
Phoenix New Media Ltd.*(a)(b) | 5,314 | 51,174 | ||||||
Reed Elsevier NV (Netherlands)(a) | 852 | 36,355 | ||||||
Total Media | 204,138 | |||||||
Metal Fabricate/Hardware — 0.3% | ||||||||
Assa Abloy AB (Sweden)(a)(b) | 2,009 | 53,138 | ||||||
Mining — 3.7% | ||||||||
Anglo American PLC (United Kingdom)(a) | 6,136 | 66,821 | ||||||
B2Gold Corp. (Canada)* | 37,902 | 76,562 | ||||||
BHP Billiton Ltd. (Australia)(a) | 1,379 | 94,048 | ||||||
BHP Billiton PLC (United Kingdom)(a) | 549 | 34,104 | ||||||
Cameco Corp. (Canada)(b) | 6,027 | 125,181 | ||||||
Eldorado Gold Corp. (Canada) | 8,457 | 48,120 | ||||||
First Majestic Silver Corp. (Canada)*(b) | 1,305 | 12,789 | ||||||
Harmony Gold Mining Co. Ltd. (South Africa)(a) | 20,741 | 52,475 | ||||||
Newcrest Mining Ltd. (Australia)(a)(b) | 4,149 | 29,209 | ||||||
Rio Tinto PLC (United Kingdom)(a)(b) | 2,164 | 122,114 | ||||||
Silver Wheaton Corp. (Canada) | 984 | 19,867 | ||||||
Total Mining | 681,290 |
See accompanying Notes to Financial Statements.
49
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Miscellaneous Manufacturing — 0.6% | ||||||||
Siemens AG (Germany)(a) | 659 | $ | 91,278 | |||||
Smiths Group PLC (United Kingdom)(a)(b) | 977 | 24,620 | ||||||
Total Miscellaneous Manufacturing | 115,898 | |||||||
Office/Business Equipment — 1.4% | ||||||||
Canon, Inc. (Japan)(a)(b) | 2,582 | 82,624 | ||||||
Seiko Epson Corp. (Japan)(a)(b) | 13,562 | 183,345 | ||||||
Total Office/Business Equipment | 265,969 | |||||||
Oil & Gas — 5.4% | ||||||||
BG Group PLC (United Kingdom)(a) | 4,908 | 106,455 | ||||||
Canadian Natural Resources Ltd. | 2,198 | 74,380 | ||||||
Enerplus Corp. (Canada) | 6,029 | 109,607 | ||||||
Petrobras Argentina SA (Argentina)*(a) | 21,168 | 117,483 | ||||||
PetroChina Co. Ltd. (China)(a) | 557 | 61,125 | ||||||
Petroleo Brasileiro SA (Brazil)(a) | 7,273 | 100,222 | ||||||
Precision Drilling Corp. (Canada) | 11,683 | 109,470 | ||||||
Repsol YPF SA (Spain)(a) | 1,641 | 41,501 | ||||||
Vermilion Energy, Inc. (Canada)(b) | 2,130 | 125,904 | ||||||
YPF SA (Argentina)(a) | 4,819 | 158,834 | ||||||
Total Oil & Gas | 1,004,981 | |||||||
Oil & Gas Services — 1.0% | ||||||||
CGG (France)*(a)(b) | 5,511 | 95,616 | ||||||
Petrofac Ltd. (United Kingdom)(a)(b) | 9,219 | 92,282 | ||||||
Total Oil & Gas Services | 187,898 | |||||||
Pharmaceuticals — 4.3% | ||||||||
Astellas Pharma, Inc. (Japan)(a) | 7,787 | 115,528 | ||||||
Bayer AG (Germany)(a) | 637 | 90,454 | ||||||
Dr Reddy's Laboratories Ltd. (India)(a) | 1,197 | 49,113 | ||||||
GlaxoSmithKline PLC (United Kingdom)(a) | 1,023 | 54,618 | ||||||
Grifols SA (Spain)(a)(b) | 3,182 | 114,934 | ||||||
Novartis AG (Switzerland)(a) | 382 | 30,705 | ||||||
Novo Nordisk A/S (Denmark)(a) | 450 | 83,142 | ||||||
Roche Holding AG (Switzerland)(a) | 851 | 59,740 | ||||||
Sanofi (France)(a) | 439 | 23,544 | ||||||
Shire PLC (Ireland)(a) | 528 | 74,601 | ||||||
Teva Pharmaceutical Industries Ltd. (Israel)(a) | 1,331 | 53,347 |
See accompanying Notes to Financial Statements.
50
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Pharmaceuticals — 4.3% (continued) | ||||||||
Valeant Pharmaceuticals International, Inc. (Canada)* | 421 | $ | 49,425 | |||||
Total Pharmaceuticals | 799,151 | |||||||
Real Estate — 0.9% | ||||||||
Cheung Kong Holdings Ltd. (Hong Kong)(a)(b) | 1,520 | 24,031 | ||||||
E-House China Holdings Ltd.(China)(a) | 8,842 | 133,338 | ||||||
Total Real Estate | 157,369 | |||||||
Retail — 2.3% | ||||||||
Cie Financiere Richemont SA (Switzerland)(a) | 7,152 | 71,520 | ||||||
Hennes & Mauritz AB (Sweden)(a) | 3,641 | 33,351 | ||||||
Inditex SA (Spain)(a)(b) | 1,014 | 33,482 | ||||||
Kering (France)(a) | 3,205 | 68,042 | ||||||
Kingfisher PLC (United Kingdom)(a)(b) | 7,045 | 90,458 | ||||||
Marks & Spencer Group PLC (United Kingdom)(a) | 4,400 | 63,070 | ||||||
Swatch Group AG (The) (Switzerland)(a) | 2,149 | 71,347 | ||||||
Total Retail | 431,270 | |||||||
Semiconductors — 5.9% | ||||||||
Advanced Semiconductor Engineering, Inc. (Taiwan)(a) | 22,056 | 105,869 | ||||||
ARM Holdings PLC (United Kingdom)(a)(b) | 1,262 | 69,082 | ||||||
ASML Holding NV (Netherlands)(c) | 1,218 | 114,126 | ||||||
Himax Technologies, Inc. (Taiwan)(a)(b) | 10,483 | 154,205 | ||||||
Infineon Technologies AG (Germany)(a) | 5,009 | 54,197 | ||||||
RDA Microelectronics, Inc.(China)(a) | 3,550 | 63,474 | ||||||
Semiconductor Manufacturing International Corp. (China)*(a)(b) | 17,392 | 67,829 | ||||||
Silicon Motion Technology Corp. (Taiwan)(a) | 8,670 | 122,680 | ||||||
Siliconware Precision Industries Co. (Taiwan)(a) | 17,636 | 105,463 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)(a) | 5,213 | 90,915 | ||||||
Tokyo Electron Ltd. (Japan)(a)(b) | 4,847 | 67,034 | ||||||
United Microelectronics Corp. (Taiwan)(a) | 38,316 | 78,165 | ||||||
Total Semiconductors | 1,093,039 | |||||||
Software — 3.1% | ||||||||
Changyou.com Ltd.(China)*(a)(b) | 2,553 | 81,824 | ||||||
Dassault Systemes SA (France)(a) | 260 | 32,318 | ||||||
NQ Mobile, Inc.(China)*(a) | 4,082 | 60,005 | ||||||
Open Text Corp. (Canada) | 528 | 48,555 | ||||||
Pactera Technology International Ltd.(China)*(a) | 16,909 | 120,899 |
See accompanying Notes to Financial Statements.
51
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Software — 3.1% (continued) | ||||||||
SAP AG (Germany)(a)(b) | 1,154 | $ | 100,559 | |||||
Shanda Games Ltd.(China)*(a) | 25,882 | 118,540 | ||||||
Total Software | 562,700 | |||||||
Telecommunications — 7.6% | ||||||||
BT Group PLC (United Kingdom)(a) | 508 | 32,070 | ||||||
China Unicom Ltd. (Hong Kong)(a) | 6,534 | 98,402 | ||||||
Deutsche Telekom AG (Germany)(a) | 3,584 | 61,860 | ||||||
KDDI Corp. (Japan)(a)(b) | 8,057 | 124,400 | ||||||
KT Corp. (South Korea)(a) | 2,988 | 44,431 | ||||||
Mobile TeleSystems OJSC (Russia)(a) | 672 | 14,535 | ||||||
NICE Systems Ltd. (Israel)(a) | 2,210 | 90,522 | ||||||
Nippon Telegraph & Telephone Corp. (Japan)(a) | 2,358 | 63,760 | ||||||
Orange SA (France)(a) | 8,036 | 99,245 | ||||||
Portugal Telecom SGPS SA (Portugal)(a)(b) | 18,576 | 80,248 | ||||||
PT Telekomunikasi Indonesia Tbk (Indonesia)(a) | 1,038 | 37,212 | ||||||
Singapore Telecommunications Ltd. (Singapore)(a)(b) | 1,780 | 51,798 | ||||||
SK Telecom Co. Ltd. (South Korea)(a)(b) | 4,290 | 105,620 | ||||||
SoftBank Corp. (Japan)(a) | 1,712 | 75,003 | ||||||
Telecom Argentina SA (Argentina)(a) | 4,888 | 84,269 | ||||||
Telecom Corp. of New Zealand Ltd. (New Zealand)(a) | 1,497 | 14,186 | ||||||
Telefonaktiebolaget LM Ericsson (Sweden)(a) | 8,902 | 108,960 | ||||||
Telstra Corp. Ltd. (Australia)(a) | 1,540 | 36,098 | ||||||
Tim Participacoes SA (Brazil)(a) | 726 | 19,050 | ||||||
Turkcell Iletisim Hizmetleri AS (Turkey)*(a) | 2,537 | 33,869 | ||||||
VimpelCom Ltd. (Netherands)(a) | 9,638 | 124,716 | ||||||
Total Telecommunications | 1,400,254 | |||||||
Transportation — 1.7% | ||||||||
Canadian Pacific Railway Ltd. (Canada) | 607 | 91,851 | ||||||
Deutsche Post AG (Germany)(a) | 2,088 | 76,630 | ||||||
East Japan Railway Co. (Japan)(a)(b) | 2,854 | 38,186 | ||||||
TNT Express NV (Netherlands)(a) | 12,200 | 112,850 | ||||||
Total Transportation | 319,517 |
See accompanying Notes to Financial Statements.
52
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Water — 0.9% | ||||||||
Suez Environnement Co. (France)(a)(b) | 8,769 | $ | 79,184 | |||||
Veolia Environnement SA (France)(a) | 5,663 | 92,647 | ||||||
Total Water | 171,831 | |||||||
Total Common Stocks (Cost $16,455,236) | 18,515,864 | |||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 21.6% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(d) (Cost $3,986,977) | 3,986,977 | 3,986,977 | ||||||
Total Investments — 121.8% (Cost $20,442,213) | 22,502,841 | |||||||
Liabilities in Excess of Other Assets — (21.8)% | (4,022,815 | ) | ||||||
Net Assets — 100.0% | $ | 18,480,026 |
PLC — Public Limited Company
* | Non-income producing security |
(a) | American Depositary Receipt |
(b) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $3,903,462; the aggregate market value of the collateral held by the fund is $4,028,437. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $41,460. |
(c) | Registered Shares |
(d) | Rate shown reflects the 1-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
53
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 0.8 | % | ||
Aerospace/Defense | 2.4 | |||
Agriculture | 0.6 | |||
Airlines | 0.3 | |||
Apparel | 0.8 | |||
Auto Manufacturers | 4.1 | |||
Auto Parts & Equipment | 0.3 | |||
Banks | 10.4 | |||
Beverages | 2.4 | |||
Building Materials | 0.6 | |||
Chemicals | 3.8 | |||
Commercial Services | 2.6 | |||
Computers | 1.6 | |||
Cosmetics/Personal Care | 0.1 | |||
Distribution/Wholesale | 0.3 | |||
Diversified Financial Services | 2.9 | |||
Electric | 1.3 | |||
Electrical Components & Equipment | 1.8 | |||
Electronics | 1.0 | |||
Energy – Alternate Sources | 0.6 | |||
Engineering & Construction | 1.0 | |||
Entertainment | 0.4 | |||
Food | 2.4 | |||
Food Service | 0.5 | |||
Forest Products & Paper | 1.9 | |||
Gas | 0.4 | |||
Healthcare – Products | 1.4 | |||
Healthcare – Services | 0.2 | |||
Holding Companies – Diversified | 0.5 | |||
Home Furnishings | 0.5 | |||
Insurance | 4.4 | |||
Internet | 3.5 | |||
Iron/Steel | 1.2 | |||
Leisure Time | 0.3 | |||
Lodging | 1.8 | |||
Machinery – Construction & Mining | 0.5 | |||
Machinery – Diversified | 0.4 | |||
Media | 1.1 | |||
Metal Fabricate/Hardware | 0.3 | |||
Mining | 3.7 |
See accompanying Notes to Financial Statements.
54
ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS (continued)
![]() | ![]() | |||
% of Net Assets | ||||
Miscellaneous Manufacturing | 0.6 | % | ||
Office/Business Equipment | 1.4 | |||
Oil & Gas | 5.4 | |||
Oil & Gas Services | 1.0 | |||
Pharmaceuticals | 4.3 | |||
Real Estate | 0.9 | |||
Retail | 2.3 | |||
Semiconductors | 5.9 | |||
Software | 3.1 | |||
Telecommunications | 7.6 | |||
Transportation | 1.7 | |||
Water | 0.9 | |||
Money Market Fund | 21.6 | |||
Total Investments | 121.8 | |||
Liabilities in Excess of Other Assets | (21.8 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
55
ADVISORSHARES
MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 96.7% | ||||||||
Equity Fund — 96.7% | ||||||||
Guggenheim S&P 500 Equal Weight ETF | 2,900 | $ | 206,625 | |||||
iShares Core S&P 500 ETF | 4 | 742 | ||||||
iShares Core S&P Mid-Cap ETF(a) | 3 | 401 | ||||||
iShares Core S&P Small-Cap ETF(a) | 8 | 874 | ||||||
iShares Russell 1000 ETF(a) | 5 | 516 | ||||||
iShares S&P 100 ETF | 9,157 | 754,079 | ||||||
iShares S&P 500 Growth ETF | 16 | 1,580 | ||||||
iShares S&P 500 Value ETF | 10 | 855 | ||||||
iShares S&P MidCap 400 Growth ETF | 7 | 1,052 | ||||||
iShares S&P SmallCap 600 Growth ETF(a) | 10 | 1,189 | ||||||
iShares S&P SmallCap 600 Value ETF(a) | 15 | 1,671 | ||||||
PowerShares QQQ Trust, Series 1 | 11 | 967 | ||||||
SPDR S&P 500 ETF Trust | 11,438 | 2,112,255 | ||||||
SPDR S&P MidCap 400 ETF Trust | 6,118 | 1,494,016 | ||||||
Vanguard Growth ETF | 16,511 | 1,536,349 | ||||||
Vanguard Mid-Cap Growth ETF | 16,834 | 1,519,269 | ||||||
Vanguard S&P 500 ETF | 8,949 | 1,513,723 | ||||||
Vanguard Small-Cap ETF | 13,604 | 1,495,760 | ||||||
Vanguard Small-Cap Growth ETF | 13,129 | 1,605,677 | ||||||
Vanguard Small-Cap Value ETF | 14,839 | 1,444,873 | ||||||
Vanguard Value ETF | 19,703 | 1,505,112 | ||||||
Total Exchange Traded Funds (Cost $15,176,738) | 15,197,585 | |||||||
MONEY MARKET FUND — 3.6% | ||||||||
Dreyfus Institutional Reserves Treasury Fund – Institutional Class, 0.00%(b) (Cost $567,723) | 567,723 | 567,723 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 26.1% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $4,095,324) | 4,095,324 | 4,095,324 | ||||||
Total Investments — 126.4% (Cost $19,839,785) | 19,860,632 | |||||||
Liabilities in Excess of Other Assets — (26.4)% | (4,142,304 | ) | ||||||
Net Assets — 100.0% | $ | 15,718,328 |
See accompanying Notes to Financial Statements.
56
ADVISORSHARES
MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
ETF — Exchange Traded Fund
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $4,010,629; the aggregate market value of the collateral held by the fund is $4,095,324. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(c) | Rate shown reflects the 1-day yield as of December 31, 2013. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 96.7 | % | ||
Money Market Fund | 29.7 | |||
Total Investments | 126.4 | |||
Liabilities in Excess of Other Assets | (26.4 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
57
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
CORPORATE BONDS — 24.5% | ||||||||
Communications — 0.3% | ||||||||
T-Mobile USA, Inc., 6.46%, 04/28/19 | $ | 275,000 | $ | 292,875 | ||||
Consumer Discretionary — 1.9% | ||||||||
Boyd Gaming Corp., 9.13%, 12/01/18(a) | 210,000 | 229,425 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp., 7.38%, 06/01/20 | 205,000 | 222,937 | ||||||
Dish DBS Corp., 4.63%, 07/15/17 | 230,000 | 241,500 | ||||||
DR Horton, Inc., 3.63%, 02/15/18 | 75,000 | 76,406 | ||||||
Hyatt Hotels Corp., 3.88%, 08/15/16 | 35,000 | 36,978 | ||||||
MGM Resorts International, 7.63%, 01/15/17 | 165,000 | 188,513 | ||||||
Rent-A-Center, Inc., 6.63%, 11/15/20 | 175,000 | 186,375 | ||||||
Time Warner Cable, Inc., 6.75%, 07/01/18 | 205,000 | 230,120 | ||||||
Wyndham Worldwide Corp., 2.50%, 03/01/18 | 450,000 | 448,913 | ||||||
Total Consumer Discretionary | 1,861,167 | |||||||
Consumer, Cyclical — 1.0% | ||||||||
America West Airlines 1999-1 Pass-Through Trust, Series 991G, 7.93%, 01/02/19 | 457,995 | 491,199 | ||||||
American Axle & Manufacturing, Inc., 5.13%, 02/15/19 | 115,000 | 118,737 | ||||||
GLP Capital LP/GLP Financing II, Inc., 4.38%, 11/01/18‡ | 10,000 | 10,250 | ||||||
Toll Brothers Finance Corp., 4.00%, 12/31/18 | 330,000 | 336,600 | ||||||
Total Consumer, Cyclical | 956,786 | |||||||
Diversified — 0.0%† | ||||||||
Alphabet Holding Co., Inc., 7.75%, 11/01/17‡ | 25,000 | 25,828 | ||||||
Energy — 1.0% | ||||||||
Calumet Specialty Products Partners LP/Calumet Finance Corp., 9.63%, 08/01/20 | 100,000 | 112,750 | ||||||
Chesapeake Energy Corp., 5.38%, 06/15/21 | 175,000 | 182,000 | ||||||
Forest Oil Corp., 7.25%, 06/15/19(a) | 92,000 | 90,045 | ||||||
Parker Drilling Co., 9.13%, 04/01/18 | 175,000 | 186,375 | ||||||
Plains Exploration & Production Co., 6.50%, 11/15/20 | 210,000 | 232,022 | ||||||
QEP Resources, Inc., 6.88%, 03/01/21 | 225,000 | 242,438 | ||||||
Total Energy | 1,045,630 |
See accompanying Notes to Financial Statements.
58
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Financials — 11.7% | ||||||||
Ally Financial, Inc., 3.50%, 07/18/16 | $ | 450,000 | $ | 465,455 | ||||
Ally Financial, Inc., 4.75%, 09/10/18 | 225,000 | 236,250 | ||||||
American International Group, Inc., 3.38%, 08/15/20 | 200,000 | 201,460 | ||||||
Associated Banc-Corp., 5.13%, 03/28/16 | 60,000 | 64,168 | ||||||
Aviation Capital Group Corp., 3.88%, 09/27/16‡ | 50,000 | 51,678 | ||||||
Bank of America Corp., 2.00%, 01/11/18 | 95,000 | 94,922 | ||||||
Bank of America Corp., Series L, 5.65%, 05/01/18 | 200,000 | 227,875 | ||||||
Bank of America Corp., 5.49%, 03/15/19 | 66,000 | 73,147 | ||||||
Barclays Bank PLC, 5.20%, 07/10/14 (United Kingdom) | 100,000 | 102,510 | ||||||
Bear Stearns Cos. LLC (The), 7.25%, 02/01/18 | 75,000 | 89,884 | ||||||
Capital One Financial Corp., 6.15%, 09/01/16 | 400,000 | 447,671 | ||||||
Citigroup, Inc., 5.50%, 02/15/17 | 450,000 | 496,184 | ||||||
CNA Financial Corp., 5.85%, 12/15/14 | 100,000 | 104,763 | ||||||
Countrywide Financial Corp., 6.25%, 05/15/16 | 130,000 | 143,535 | ||||||
DDR Corp., 7.88%, 09/01/20 | 180,000 | 222,666 | ||||||
DDR Corp., 3.50%, 01/15/21 | 145,000 | 141,353 | ||||||
Denali Borrower LLC, 5.63%, 10/15/20‡ | 50,000 | 49,687 | ||||||
E*Trade Financial Corp., 6.38%, 11/15/19 | 175,000 | 188,781 | ||||||
Fifth Third Bancorp, 4.50%, 06/01/18 | 66,000 | 70,451 | ||||||
Ford Motor Credit Co. LLC, 8.13%, 01/15/20 | 455,000 | 569,658 | ||||||
General Electric Capital Corp., Series G, 5.63%, 05/01/18 | 295,000 | 339,099 | ||||||
Genworth Holdings, Inc., 7.63%, 09/24/21(a) | 200,000 | 238,357 | ||||||
Goldman Sachs Group, Inc. (The), 5.63%, 01/15/17 | 670,000 | 738,818 | ||||||
HCP, Inc., 3.75%, 02/01/19 | 175,000 | 181,970 | ||||||
Health Care REIT, Inc., 4.70%, 09/15/17 | 220,000 | 239,344 | ||||||
HSBC Finance Corp., 6.68%, 01/15/21 | 225,000 | 258,903 | ||||||
HSBC USA, Inc., 1.63%, 01/16/18 | 200,000 | 197,403 | ||||||
HSBC USA, Inc., 2.63%, 09/24/18 | 225,000 | 229,051 | ||||||
Huntington Bancshares, Inc., 7.00%, 12/15/20 | 200,000 | 232,253 | ||||||
ING US, Inc., 2.90%, 02/15/18 | 230,000 | 235,468 | ||||||
International Lease Finance Corp., 3.88%, 04/15/18 | 200,000 | 200,875 | ||||||
Jefferies Group LLC, 5.13%, 04/13/18 | 275,000 | 298,493 | ||||||
JPMorgan Chase & Co., 6.13%, 06/27/17 | 280,000 | 318,282 |
See accompanying Notes to Financial Statements.
59
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Financials — 11.7% (continued) | ||||||||
Lazard Group LLC, 4.25%, 11/14/20 | $ | 275,000 | $ | 274,808 | ||||
Lincoln National Corp., 8.75%, 07/01/19 | 125,000 | 161,077 | ||||||
Lincoln National Corp., 6.05%, 04/20/67@ | 100,000 | 99,750 | ||||||
Morgan Stanley, 5.55%, 04/27/17 | 425,000 | 474,460 | ||||||
Morgan Stanley, 2.13%, 04/25/18(a) | 180,000 | 178,630 | ||||||
National Retail Properties, Inc., 5.50%, 07/15/21 | 250,000 | 272,171 | ||||||
Nationstar Mortgage LLC, 6.50%, 08/01/18 | 235,000 | 240,288 | ||||||
Prudential Financial, Inc., 5.20%, 03/15/44@ | 300,000 | 291,750 | ||||||
Regions Financial Corp., 5.75%, 06/15/15 | 325,000 | 346,417 | ||||||
Santander Holdings USA, Inc., 3.00%, 09/24/15 | 115,000 | 118,805 | ||||||
SLM Corp., 4.63%, 09/25/17 | 175,000 | 182,091 | ||||||
SLM Corp., 4.88%, 06/17/19 | 110,000 | 109,740 | ||||||
State Street Corp., 4.96%, 03/15/18 | 300,000 | 325,780 | ||||||
Ventas Realty LP, 4.00%, 04/30/19 | 180,000 | 189,359 | ||||||
Wells Fargo & Co., 5.13%, 09/15/16 | 75,000 | 82,608 | ||||||
Willis North America, Inc., 6.20%, 03/28/17 | 250,000 | 271,575 | ||||||
Zions Bancorporation, 4.50%, 03/27/17 | 195,000 | 206,626 | ||||||
Total Financials | 11,576,349 | |||||||
Health Care — 0.8% | ||||||||
Community Health Systems, Inc., 5.13%, 08/15/18 | 170,000 | 175,950 | ||||||
Express Scripts Holding Co., 3.50%, 11/15/16 | 150,000 | 158,691 | ||||||
HCA, Inc., 6.50%, 02/15/20 | 185,000 | 203,731 | ||||||
Tenet Healthcare Corp., 6.25%, 11/01/18 | 150,000 | 166,687 | ||||||
Tenet Healthcare Corp., 6.00%, 10/01/20‡ | 105,000 | 109,791 | ||||||
Total Health Care | 814,850 | |||||||
Industrials — 4.8% | ||||||||
Atlas Air 2000-1 Class A Pass-Through Trust, Series 00-1, 8.71%, 01/02/19 | 590,418 | 612,558 | ||||||
CNH Capital LLC, 3.25%, 02/01/17‡ | 35,000 | 35,787 | ||||||
Continental Airlines 1998-1 Class A Pass-Through Trust, Series 981A, 6.65%, 09/15/17 | 419,104 | 440,563 | ||||||
Delta Air Lines 2009-1 Class A Pass-Through Trust, Series A, 7.75%, 12/17/19 | 215,512 | 247,839 |
See accompanying Notes to Financial Statements.
60
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Industrials — 4.8% (continued) | ||||||||
Delta Air Lines 2012-1 Class A Pass-Through Trust, Series A, 4.75%, 05/07/20 | $ | 334,775 | $ | 358,209 | ||||
Delta Air Lines Class A Pass-Through Trust, Series 2010-2A, 4.95%, 05/23/19 | 812,982 | 875,988 | ||||||
Deluxe Corp., 7.00%, 03/15/19 | 170,000 | 182,750 | ||||||
HD Supply, Inc., 8.13%, 04/15/19 | 170,000 | 190,188 | ||||||
Kratos Defense & Security Solutions, Inc., 10.00%, 06/01/17 | 255,000 | 276,356 | ||||||
Ryder System, Inc., 2.50%, 03/01/17 | 125,000 | 127,265 | ||||||
Spirit Aerosystems, Inc., 7.50%, 10/01/17 | 100,000 | 104,250 | ||||||
Textron, Inc., 4.63%, 09/21/16 | 400,000 | 431,484 | ||||||
UAL 2009-2a Pass-Through Trust, Series 09-2, 9.75%, 01/15/17 | 596,282 | 685,724 | ||||||
United Rentals North America, Inc., 7.38%, 05/15/20 | 150,000 | 167,063 | ||||||
Total Industrials | 4,736,024 | |||||||
Information Technology — 0.5% | ||||||||
Dun & Bradstreet Corp. (The), 3.25%, 12/01/17 | 300,000 | 303,506 | ||||||
Equinix, Inc., 4.88%, 04/01/20 | 175,000 | 175,000 | ||||||
First Data Corp., 11.75%, 08/15/21‡ | 20,000 | 21,200 | ||||||
Total Information Technology | 499,706 | |||||||
Materials — 0.9% | ||||||||
Calumet Specialty Products Partners LP, 9.38%, 05/01/19 | 100,000 | 111,500 | ||||||
Hexion US Finance Corp., 6.63%, 04/15/20 | 175,000 | 180,250 | ||||||
Huntsman International LLC, 4.88%, 11/15/20 | 200,000 | 198,000 | ||||||
International Paper Co., 9.38%, 05/15/19 | 75,000 | 98,484 | ||||||
Libbey Glass, Inc., 6.88%, 05/15/20 | 96,000 | 104,160 | ||||||
Reynolds Group Issuer LLC, 7.88%, 08/15/19 | 150,000 | 166,500 | ||||||
Total Materials | 858,894 | |||||||
Telecommunication Services — 1.2% | ||||||||
AT&T, Inc., 3.88%, 08/15/21 | 210,000 | 213,100 | ||||||
Centurylink, Inc., Series N, 6.00%, 04/01/17 | 150,000 | 166,125 | ||||||
Frontier Communications Corp., 7.13%, 03/15/19 | 250,000 | 270,625 | ||||||
Qwest Corp., 6.50%, 06/01/17 | 75,000 | 84,821 | ||||||
Sprint Communications, Inc., 6.00%, 12/01/16 | 170,000 | 185,938 |
See accompanying Notes to Financial Statements.
61
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Telecommunication Services — 1.2% (continued) | ||||||||
Verizon Communications, Inc., 2.50%, 09/15/16 | $ | 45,000 | $ | 46,562 | ||||
Verizon Communications, Inc., 3.65%, 09/14/18 | 50,000 | 52,986 | ||||||
Verizon Communications, Inc., 4.60%, 04/01/21 | 125,000 | 132,242 | ||||||
Total Telecommunication Services | 1,152,399 | |||||||
Utilities — 0.4% | ||||||||
Energy Transfer Partners LP, 4.15%, 10/01/20 | 250,000 | 254,008 | ||||||
NRG Energy, Inc., 8.50%, 06/15/19 | 170,000 | 182,325 | ||||||
Total Utilities | 436,333 | |||||||
Total Corporate Bonds (Cost $24,282,420) | 24,256,841 | |||||||
FOREIGN BONDS — 5.0% | ||||||||
Communications — 0.5% | ||||||||
Telecom Italia Capital SA, 7.18%, 06/18/19 (Luxembourg) | 175,000 | 197,313 | ||||||
Thomson Reuters Corp., 1.30%, 02/23/17 (Canada) | 330,000 | 328,796 | ||||||
Total Communications | 526,109 | |||||||
Consumer, Non-cyclical — 0.3% | ||||||||
Coca-Cola Femsa SAB de CV, 2.38%, 11/26/18 (Mexico) | 250,000 | 248,778 | ||||||
Energy — 1.2% | ||||||||
Petrobras International Finance Co., 3.50%, 02/06/17 (Brazil) | 400,000 | 404,660 | ||||||
Petroleos Mexicanos, 6.00%, 03/05/20 (Mexico) | 350,000 | 390,600 | ||||||
Rosneft Finance SA, 7.50%, 07/18/16 (Russia) | 195,000 | 219,863 | ||||||
Weatherford Bermuda Holdings Ltd., 9.63%, 03/01/19 | 150,000 | 192,934 | ||||||
Total Energy | 1,208,057 | |||||||
Financials — 2.1% | ||||||||
Aircastle Ltd., 4.63%, 12/15/18 | 285,000 | 287,850 | ||||||
Aircastle Ltd., 6.25%, 12/01/19 | 250,000 | 269,062 | ||||||
Banco Santander Brasil SA, 4.50%, 04/06/15 (Brazil) | 250,000 | 258,125 | ||||||
Banco Santander Chile, 2.12%, 06/07/18 (Chile)@‡ | 200,000 | 201,100 | ||||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., 2.13%, 10/13/15 (Netherlands) | 250,000 | 256,556 | ||||||
Corp. Andina de Fomento, 3.75%, 01/15/16 (Supranational) | 100,000 | 104,470 | ||||||
Intesa Sanpaolo SpA, 3.13%, 01/15/16 (Italy) | 200,000 | 203,913 |
See accompanying Notes to Financial Statements.
62
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Financials — 2.1% (continued) | ||||||||
Royal Bank of Scotland Group PLC, 6.40%, 10/21/19 (United Kingdom) | $ | 350,000 | $ | 403,810 | ||||
XLIT Ltd., 2.30%, 12/15/18 (Ireland) | 110,000 | 108,166 | ||||||
Total Financials | 2,093,052 | |||||||
Foreign Government — 0.4% | ||||||||
Korea Finance Corp., 4.63%, 11/16/21 (South Korea) | 375,000 | 397,844 | ||||||
Health Care — 0.1% | ||||||||
Valant Pharmaceuticals International, 6.75%, 08/15/18 (Canada)‡ | 120,000 | 132,450 | ||||||
Materials — 0.3% | ||||||||
Methanex Corp., 3.25%, 12/15/19 (Canada) | 100,000 | 99,383 | ||||||
Vale Overseas Ltd., 4.38%, 01/11/22 (Brazil) | 170,000 | 166,021 | ||||||
Total Materials | 265,404 | |||||||
Telecommunication — 0.1% | ||||||||
Telefonica Emisiones SAU, 6.42%, 06/20/16 (Spain) | 100,000 | 111,685 | ||||||
Total Foreign Bonds (Cost $5,027,979) | 4,983,379 | |||||||
ASSET BACKED SECURITIES — 11.5% | ||||||||
AmeriCredit Automobile Receivables Trust, Class D, Series 2012-4, 2.68%, 10/09/18 | 1,050,000 | 1,059,755 | ||||||
AmeriCredit Automobile Receivables Trust 2011-2, Class D, Series 2011-2, 4.00%, 05/08/17 | 955,000 | 988,326 | ||||||
AmeriCredit Automobile Receivables Trust 2013-2, Class D, Series 2013-2, 2.42%, 05/08/19 | 575,000 | 571,140 | ||||||
Asset Backed Funding Certificates Trust, Class A6, Series 2005-AQ1, 4.78%, 06/25/35# | 298,531 | 308,433 | ||||||
Bayview Financial Acquisition Trust, Class 1A2, Series 2007-A, 6.21%, 05/28/37# | 769,492 | 827,914 | ||||||
Carmax Auto Owner Trust, Class A3, Series 2012-1, 0.89%, 09/15/16 | 243,526 | 244,209 | ||||||
CarMax Auto Owner Trust 2012-1, Class B, Series 2012-1, 1.76%, 08/15/17 | 500,000 | 509,780 | ||||||
CKE Restaurant Holdings, Inc., Class A2, Series 2013-1A, 4.47%, 03/20/43‡ | 306,513 | 306,644 |
See accompanying Notes to Financial Statements.
63
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
ASSET BACKED SECURITIES — 11.5% (continued) | ||||||||
Cronos Containers Program Ltd., Class A, Series 2012-2A, 3.81%, 09/18/27 (Bermuda)‡ | $ | 262,500 | $ | 263,096 | ||||
Domino's Pizza Master Issuer LLC, Class A2, Series 2012-1A, 5.22%, 01/25/42‡ | 267,781 | 284,189 | ||||||
Drug Royalty II LP 1 2012-1, Class A1, Series 2012-1, 4.24%, 01/15/25@‡ | 196,768 | 200,959 | ||||||
Exeter Automobile Receivables Trust, Class B, Series 2013-2A, 3.09%, 07/16/18‡ | 180,000 | 181,158 | ||||||
Exeter Automobile Receivables Trust 2013-1, Class C, Series 2013-1A, 3.52%, 02/15/19‡ | 500,000 | 494,180 | ||||||
GSAA Trust, Class AF4, Series 2005-1, 5.47%, 11/25/34# | 284,806 | 298,727 | ||||||
Honda Auto Receivables 2011-3 Owner Trust, Class A4, Series 2011-3, 1.17%, 11/21/14 | 750,000 | 754,999 | ||||||
Mid-State Trust, Class A4, Series 1997-6, 7.79%, 07/01/35 | 474,699 | 514,415 | ||||||
Residential Funding Mortgage Securities II Home Loan Trust, Class AIIB, Series 2003-HS2, 0.41%, 06/25/28@ | 230,122 | 215,322 | ||||||
Santander Drive Auto Receivables Trust, Class C, Series 2012-3, 3.01%, 04/16/18 | 260,000 | 267,672 | ||||||
Santander Drive Auto Receivables Trust, Class D, Series 2012-6, 2.52%, 09/17/18 | 350,000 | 351,309 | ||||||
Santander Drive Auto Receivables Trust 2012-2, Class D, Series 2012-2, 3.87%, 02/15/18 | 300,000 | 315,048 | ||||||
Santander Drive Auto Receivables Trust 2012-4, Class C, Series 2012-4, 2.94%, 12/15/17 | 360,000 | 370,658 | ||||||
Santander Drive Auto Receivables Trust 2012-5, Class A3, Series 2012-5, 0.83%, 12/15/16 | 239,000 | 239,087 | ||||||
Santander Drive Auto Receivables Trust 2013-3, Class C, Series 2013-3, 1.81%, 04/15/19 | 600,000 | 596,447 | ||||||
Sierra Timeshare Receivables Funding LLC, Class B, Series 2012-2A, 3.42%, 03/20/29‡ | 346,108 | 351,386 | ||||||
Silverleaf Finance XV LLC, Class A, Series 2012-D, 3.00%, 03/17/25‡ | 372,290 | 375,785 | ||||||
Structured Asset Securities Corp. Assistance Loan Trust, Class A, Series 2003-AL1, 3.36%, 04/25/31‡ | 37,083 | 36,524 | ||||||
Trip Rail Master Funding LLC, Class A1A, Series 2011-1A, 4.37%, 07/15/41‡ | 444,637 | 467,455 | ||||||
Total Asset Backed Securities (Cost $11,463,964) | 11,394,617 |
See accompanying Notes to Financial Statements.
64
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
MORTGAGE BACKED SECURITIES — 38.8% | ||||||||
Commercial Mortgage Backed Securities — 12.2% | ||||||||
BAMLL-DB Trust, Class A2FX, Series 2012-OSI, 3.35%, 04/13/29‡ | $ | 274,872 | $ | 283,623 | ||||
Bayview Financial Mortgage Pass-Through Trust 2006-A, Class 1A2, Series 2006-A, 5.48%, 02/28/41# | 231,942 | 235,229 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2004-T14, 5.20%, 01/12/41@ | 253,910 | 253,925 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW18, 5.70%, 06/11/50 | 750,000 | 844,281 | ||||||
Capital Auto Receivables Asset Trust/Ally, Class C, Series 2013-1, 1.74%, 10/22/18 | 295,000 | 291,535 | ||||||
Carfinance Capital Auto Trust 2013-2, Class B, Series 2013-2A, 3.15%, 08/15/19‡ | 350,000 | 349,679 | ||||||
CD Commercial Mortgage Trust, Class A4, Series 2007-CD4, 5.32%, 12/11/49 | 780,000 | 855,410 | ||||||
Citigroup Commercial Mortgage Trust 2007-C6, Class A1A, Series 2007-C6, 5.71%, 12/10/49@ | 473,436 | 526,848 | ||||||
Commercial Mortgage Trust 2007-GG11, Class AM, Series 2007-GG11, 5.87%, 12/10/49@ | 175,000 | 192,202 | ||||||
Countrywide Asset-Backed Certificates, Class AF6, Series 2004-12, 4.63%, 03/25/35@ | 466,138 | 477,031 | ||||||
Credit Suisse Commercial Mortgage Trust Series 2007-C1, Class A1A, Series 2007-C1, 5.36%, 02/15/40 | 209,369 | 223,655 | ||||||
GS Mortgage Securities Trust, Class A4, Series 2007-GG10, 5.81%, 08/10/45@(a) | 1,000,000 | 1,100,256 | ||||||
Hilton USA Trust 2013-HLT, Class EFX, Series 2013-HLT, 4.45%, 11/05/30@‡ | 250,000 | 252,785 | ||||||
Irwin Home Equity Loan Trust 2003-A, Class M1, Series 2003-A, 1.71%, 10/25/27@ | 613,669 | 598,993 | ||||||
JPMorgan Mortgage Trust 2004-A3, Class 1A1, Series 2004-A3, 2.48%, 07/25/34@ | 150,221 | 151,253 | ||||||
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 09/15/45@ | 686,244 | 762,674 | ||||||
Master Alternative Loan Trust 2004-4, Class 6A1, Series 2004-4, 5.50%, 04/25/34 | 288,877 | 307,119 | ||||||
RASC Series 2004-KS2 Trust, Class AI6, Series 2004-KS2, 4.30%, 03/25/34@ | 283,240 | 287,249 |
See accompanying Notes to Financial Statements.
65
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
MORTGAGE BACKED SECURITIES — 38.8% (continued) | ||||||||
Rialto Real Estate Fund LLC, Class A, Series 2013-LT2, 2.83%, 05/22/28‡ | $ | 153,861 | $ | 154,237 | ||||
Santander Drive Auto Receivables Trust 2013-1, Class D, Series 2013-1, 2.27%, 01/15/19 | 500,000 | 494,774 | ||||||
Santander Drive Auto Receivables Trust 2013-5, Class D, Series 2013-5, 2.73%, 10/15/19 | 300,000 | 297,532 | ||||||
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-5, 2.45%, 05/25/34@ | 597,728 | 591,733 | ||||||
Wachovia Bank Commercial Mortgage Trust, Class AM, Series 2007-C30, 5.38%, 12/15/43 | 270,000 | 291,112 | ||||||
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2007-C31, 5.51%, 04/15/47 | 770,000 | 841,956 | ||||||
Wachovia Bank Commercial Mortgage Trust, Class A3, Series 2007-C32, 5.75%, 06/15/49@ | 975,000 | 1,081,012 | ||||||
Washington Mutual MSC Mortgage Pass-Through Certificates Series 2003-Ar4 Trust, Class 2A1, Series 2003-AR4, 2.22%, 08/25/33@ | 284,905 | 285,188 | ||||||
Total Commercial Mortgage Backed Securities | 12,031,291 | |||||||
Fixed Income — 20.0% | ||||||||
A10 Securitization 2013-1 LLC, Class A, Series 2013-1, 2.40%, 11/15/25‡ | 600,000 | 598,964 | ||||||
Bear Stearns ARM Trust 2004-1, Class 21A1, Series 2004-1, 2.40%, 04/25/34@ | 618,763 | 607,989 | ||||||
Bear Stearns ARM Trust 2004-10, Class 15A1, Series 2004-10, 2.66%, 01/25/35@ | 713,735 | 721,683 | ||||||
Bear Stearns ARM Trust 2004-10, Class 12A3, Series 2004-10, 2.69%, 01/25/35@ | 379,625 | 377,259 | ||||||
Bear Stearns Commercial Mortgage Securities Trust 2006-PWR13, Class AM, Series 2006-PW13, 5.58%, 09/11/41@ | 800,000 | 874,594 | ||||||
Bear Stearns Commercial Mortgage Securities Trust 2007-PWR15, Class AM, Series 2007-PW15, 5.36%, 02/11/44 | 350,000 | 361,631 | ||||||
Bear Stearns Commercial Mortgage Securities Trust 2007-PWR17, Class A4, Series 2007-PW17, 5.69%, 06/11/50@ | 650,000 | 728,903 | ||||||
Citigroup Mortgage Loan Trust, Inc., Class A3, Series 2004-UST1, 2.32%, 08/25/34@ | 217,697 | 217,965 | ||||||
Commercial Mortgage Trust 2004-GG1, Class A7, Series 2004-GG1, 5.32%, 06/10/36@ | 111,418 | 112,023 |
See accompanying Notes to Financial Statements.
66
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Fixed Income — 20.0% (continued) | ||||||||
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-8, 4.50%, 12/25/19 | $ | 274,496 | $ | 280,595 | ||||
DBUBS 2011-LC3 Mortgage Trust, Class A2, Series 2011-LC3A, 3.64%, 08/10/44 | 1,050,000 | 1,104,093 | ||||||
GMACM Mortgage Loan Trust 2003-J7, Class A10, Series 2003-J7, 5.50%, 11/25/33 | 1,115,518 | 1,155,068 | ||||||
GMACM Mortgage Loan Trust 2004-AR1, Class 12A, Series 2004-AR1, 3.17%, 06/25/34@ | 476,319 | 487,188 | ||||||
GSR Mortgage Loan Trust, Class 2A2, Series 2007-1F, 5.50%, 01/25/37 | 47,335 | 44,945 | ||||||
JPMorgan Chase Commercial Mortgage Securities Trust 2006-LDP7, Class AM, Series 2006-LDP7, 5.87%, 04/15/45@ | 1,190,000 | 1,312,710 | ||||||
JPMorgan Chase Commercial Mortgage Securities Trust 2006-LDP9, Class A3, Series 2006-LDP9, 5.34%, 05/15/47 | 745,000 | 816,666 | ||||||
JPMorgan Chase Commercial Mortgage Securities Trust 2007-LDP10, Class AM, Series 2007-LDPX, 5.46%, 01/15/49@ | 275,000 | 285,085 | ||||||
JPMorgan Chase Commercial Mortgage Securities Trust 2007-LDP12, Class A4, Series 2007-LD12, 5.88%, 02/15/51@ | 500,000 | 560,490 | ||||||
LB Commercial Mortgage Trust 2007-C3, Class A4, Series 2007-C3, 5.89%, 07/15/44@ | 610,000 | 684,326 | ||||||
LB-UBS Commercial Mortgage Trust 2007-C6, Class A4, Series 2007-C6, 5.86%, 07/15/40@ | 1,095,084 | 1,192,632 | ||||||
MASTR Asset Securitization Trust 2004-6, Class 4A1, Series 2004-6, 5.00%, 07/25/19 | 157,858 | 164,436 | ||||||
Merrill Lynch Mortgage Trust 2006-C1, Class AM, Series 2006-C1, 5.69%, 05/12/39@ | 420,000 | 453,356 | ||||||
Morgan Stanley Capital I Trust 2007-IQ14, Class A4, Series 2007-IQ14, 5.69%, 04/15/49@ | 800,000 | 887,429 | ||||||
RALI Series 2003-QS22 Trust, Class A3, Series 2003-QS22, 5.38%, 12/26/33 | 291,249 | 299,542 | ||||||
RALI Series 2004-QS8 Trust, Class A6, Series 2004-QS8, 5.50%, 06/25/34 | 478,702 | 494,374 | ||||||
Structured Asset Securities Corp., Class 2A, Series 2003-37A, 3.54%, 12/25/33@ | 194,116 | 193,421 | ||||||
Structured Asset Securities Corp. Mortgage Pass-Through Certificates SER 2003-33h, Class 1A1, Series 2003-33H, 5.50%, 10/25/33 | 614,661 | 631,426 |
See accompanying Notes to Financial Statements.
67
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Fixed Income — 20.0% (continued) | ||||||||
Wachovia Bank Commercial Mortgage Trust Series 2005-C20, Class AMFX, Series 2005-C20, 5.18%, 07/15/42@ | $ | 300,000 | $ | 318,573 | ||||
Wachovia Bank Commercial Mortgage Trust Series 2007-C31, Class AM, Series 2007-C31, 5.59%, 04/15/47@ | 1,100,000 | 1,200,091 | ||||||
WaMu Mortgage Pass-Through Certificates, Class A1, Series 2003-AR6, 2.44%, 06/25/33@ | 330,924 | 336,117 | ||||||
Wells Fargo Mortgage Backed Securities 2003-J Trust, Class 5A1, Series 2003-J, 2.49%, 10/25/33@ | 336,166 | 336,637 | ||||||
Wells Fargo Mortgage Backed Securities 2004-A Trust, Class A1, Series 2004-A, 3.30%, 02/25/34@ | 398,217 | 401,296 | ||||||
Wells Fargo Mortgage Backed Securities 2004-K Trust, Class 1A2, Series 2004-K, 2.62%, 07/25/34@ | 687,459 | 689,093 | ||||||
Wells Fargo Mortgage Backed Securities 2004-K Trust, Class 2A12, Series 2004-K, 4.74%, 07/25/34@ | 294,157 | 295,576 | ||||||
Wells Fargo Mortgage Backed Securities 2004-Z Trust, Class 2A1, Series 2004-Z, 2.61%, 12/25/34@ | 309,588 | 313,076 | ||||||
Wells Fargo Mortgage Backed Securities 2006-16 Trust, Class A5, Series 2006-16, 5.00%, 11/25/36 | 222,670 | 229,438 | ||||||
Total Fixed Income | 19,768,690 | |||||||
Industrials — 2.2% | ||||||||
America West Airlines 2000-1 Pass-Through Trust, Series 001G, 8.06%, 07/02/20 | 187,245 | 200,352 | ||||||
America West Airlines 2001-1 Pass-Through Trust, Series 011G, 7.10%, 04/02/21 | 654,770 | 700,604 | ||||||
Continental Airlines 1999-2 Class C-2 Pass-Through Trust, Series AMBC, 6.24%, 03/15/20 | 282,978 | 310,569 | ||||||
Continental Airlines 2000-1 Class A-1 Pass-Through Trust, Series 00A1, 8.05%, 11/01/20 | 343,851 | 393,262 | ||||||
Northwest Airlines 2002-1 Class G-2 Pass-Through Trust, Series 02-1, 6.26%, 11/20/21 | 505,896 | 540,081 | ||||||
Total Industrials | 2,144,868 |
See accompanying Notes to Financial Statements.
68
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Non-Agency Mortgage-Backed Securities — 2.5% | ||||||||
Alternative Loan Trust 2004-22cb, Class 1A1, Series 2004-22CB, 6.00%, 10/25/34 | $ | 238,437 | $ | 243,990 | ||||
Bear Stearns Commercial Mortgage Securities Trust 2006-PWR14, Class AM, Series 2006-PW14, 5.24%, 12/11/38 | 185,000 | 201,434 | ||||||
Commercial Mortgage Trust 2007-GG9, Class A4, Series 2007-GG9, 5.44%, 01/10/17 | 500,000 | 550,006 | ||||||
JPMorgan Chase Commercial Mortgage Securities Trust 2006-LDP7, Class A4, Series 2006-LDP7, 5.87%, 04/15/45@ | 150,000 | 163,922 | ||||||
Morgan Stanley Capital I Trust 2006-IQ12, Class A4, Series 2006-IQ12, 5.33%, 12/15/43 | 496,661 | 542,644 | ||||||
Morgan Stanley Capital I Trust 2007-IQ14, Class AM, Series 2007-IQ14, 5.70%, 04/15/49@ | 226,000 | 234,548 | ||||||
Sequoia Mortgage Trust 2012-3, Class A1, Series 2012-3, 3.50%, 07/25/42@ | 585,393 | 573,186 | ||||||
Total Non-Agency Mortgage-Backed Securities | 2,509,730 | |||||||
Residential Mortgage Backed Securities — 1.9% | ||||||||
Banc of America Funding 2004-A Trust, Class 5A1, Series 2004-A, 2.37%, 07/20/34@ | 443,407 | 439,781 | ||||||
Banc of America Mortgage Trust 2004-7, Class 6A3, Series 2004-7, 4.50%, 08/25/19 | 1,384,915 | 1,405,130 | ||||||
Total Residential Mortgage Backed Securities | 1,844,911 | |||||||
Total Mortgage Backed Securities (Cost $38,874,817) | 38,299,490 | |||||||
U.S. TREASURY NOTES — 7.3% | ||||||||
U.S. Treasury Note, 0.25%, 05/31/15 | 2,000,000 | 2,001,054 | ||||||
U.S. Treasury Note, 0.38%, 06/30/15 | 2,500,000 | 2,505,370 | ||||||
U.S. Treasury Note, 0.25%, 07/31/15 | 2,750,000 | 2,750,107 | ||||||
Total U.S. Treasury Notes (Cost $7,247,496) | 7,256,531 | |||||||
U.S. GOVERNMENT AGENCY SECURITIES — 3.3% | ||||||||
Federal Home Loan Mortgage Corporation, Class J, Series 2012-4011, 4.00%, 12/15/41 | 959,116 | 964,343 | ||||||
Federal National Mortgage Association, Class NA, Series 2009-36, 5.00%, 06/25/37 | 269,750 | 291,946 | ||||||
Federal National Mortgage Association, Class PA, Series 2012-10, 4.00%, 11/25/41 | 735,282 | 756,939 |
See accompanying Notes to Financial Statements.
69
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
U.S. GOVERNMENT AGENCY SECURITIES — 3.3% (continued) | ||||||||
Government National Mortgage Association, Class G, Series 2009-46, 4.50%, 09/20/34 | $ | 520,211 | $ | 535,212 | ||||
Government National Mortgage Association, Class CA, Series 2009-22, 4.50%, 12/16/35 | 291,939 | 300,989 | ||||||
Government National Mortgage Association, Class KA, Series 2011-140, 4.00%, 03/20/37 | 357,348 | 367,581 | ||||||
Total U.S. Government Agency Securities (Cost $3,230,363) | 3,217,010 | |||||||
TERM LOANS — 7.6% | ||||||||
Consumer Discretionary — 3.2% | ||||||||
Boyd Gaming Corp., 4.00%, 08/14/20@ | 198,503 | 199,402 | ||||||
Caesars Entertainment Corp., 9.50%, 10/31/16@ | 222,680 | 224,807 | ||||||
CBAC Borrower LLC, 8.25%, 07/02/20@ | 200,000 | 207,188 | ||||||
CityCenter Holdings LLC, 5.00%, 10/16/20@ | 125,000 | 127,079 | ||||||
Dell, Inc., 4.50%, 04/29/20@ | 135,000 | 135,627 | ||||||
Hilton Worldwide Finance LLC, 3.75%, 10/26/20@ | 182,368 | 184,225 | ||||||
Landry's, Inc., 4.75%, 04/24/18@ | 216,533 | 218,478 | ||||||
Leslie's Poolmart, Inc., 4.25%, 10/16/19@ | 198,493 | 199,608 | ||||||
MGM Resorts International, 3.50%, 12/20/19@ | 121,083 | 121,499 | ||||||
Scientific Games International, Inc., 4.25%, 10/18/20@ | 140,000 | 140,473 | ||||||
Seminole Hard Rock Entertainment, Inc.,3.50%, 05/14/20@ | 59,700 | 59,824 | ||||||
Seven Seas Cruises S. DE R.L., 4.75%, 12/21/18@ | 225,000 | 228,094 | ||||||
SRAM LLC, 4.00%, 04/10/20@ | 212,232 | 212,585 | ||||||
SRAM LLC, 5.25%, 04/10/20@ | 4,472 | 4,480 | ||||||
Univision Communications, Inc., 4.00%, 03/01/20@ | 413,420 | 415,917 | ||||||
Univision Communications, Inc., 4.50%, 03/01/20@ | 223,313 | 224,987 | ||||||
Zuffa LLC, 4.50%, 02/25/20@ | 222,750 | 224,768 | ||||||
Total Consumer Discretionary | 3,129,041 | |||||||
Consumer Staples — 0.5% | ||||||||
Hostess Brands, Inc., 6.75%, 04/09/20@ | 225,000 | 233,438 | ||||||
Rite Aid Corp., 4.00%, 02/21/20@ | 223,872 | 225,177 | ||||||
Total Consumer Staples | 458,615 |
See accompanying Notes to Financial Statements.
70
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Diversified Media — 0.2% | ||||||||
Tribune Company, 0.00%, 11/20/20@(b) | $ | 171,000 | $ | 170,332 | ||||
Health Care — 0.4% | ||||||||
Davita, Inc., 4.00%, 11/01/19@ | 222,750 | 224,838 | ||||||
IASIS Healthcare LLC, 4.50%, 05/03/18@ | 222,750 | 225,024 | ||||||
Total Health Care | 449,862 | |||||||
Industrials — 0.9% | ||||||||
Air Canada, 5.50%, 09/26/19@ | 235,000 | 239,015 | ||||||
Avis Budget Car Rental LLC, 3.00%, 03/15/19@ | 198,500 | 198,574 | ||||||
Doncasters Group Ltd., 5.50%, 04/09/20@ | 272,938 | 276,292 | ||||||
Fieldwood Energy LLC, 3.88%, 09/28/18@ | 25,935 | 26,153 | ||||||
Filtration Group, Inc., 4.50%, 11/20/20@ | 53,000 | 53,630 | ||||||
McJunkin Red Man Corp., 5.00%, 11/08/19@ | 86,000 | 87,371 | ||||||
Total Industrials | 881,035 | |||||||
Information Technology — 1.6% | ||||||||
Alcatel-Lucent USA Inc., 5.75%, 01/30/19@ | 198,496 | 199,725 | ||||||
Blue Coat Systems, Inc., 4.50%, 05/31/19@ | 209,475 | 210,522 | ||||||
CDW LLC, 3.25%, 04/29/20@ | 347,686 | 347,283 | ||||||
First Data Corp., 4.16%, 03/23/18@ | 250,000 | 250,815 | ||||||
Interactive Data Corp., 3.75%, 02/11/18@ | 224,503 | 225,119 | ||||||
Ion Trading Technologies Ltd., 4.50%, 05/22/20@ | 208,950 | 210,811 | ||||||
Kronos Inc., 4.50%, 10/30/19@ | 4,986 | 5,039 | ||||||
Spansion LLC, 0.00%, 12/18/19@(b) | 123,000 | 123,461 | ||||||
Total Information Technology | 1,572,775 | |||||||
Materials — 0.4% | ||||||||
FMG Resources (August 2006) Pty LTD (FMG America Finance, Inc.), 4.25%, 06/30/19@ | 222,750 | 225,952 | ||||||
Ineos US Finance LLC, 4.00%, 05/04/18@ | 198,743 | 199,779 | ||||||
Total Materials | 425,731 | |||||||
Telecommunication Services — 0.4% | ||||||||
Level 3 Financing, Inc., 4.00%, 01/15/20@ | 225,000 | 227,063 | ||||||
Windstream Corp., 3.50%, 01/23/20@ | 222,750 | 223,516 | ||||||
Total Telecommunication Services | 450,579 | |||||||
Total Term Loans (Cost $7,529,567) | 7,537,970 |
See accompanying Notes to Financial Statements.
71
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 1.3% | ||||||||
BofA Cash Reserves Money Market Fund – Capital Class — 0.02%,(c) (Cost $1,259,188) | $ | 1,259,188 | $ | 1,259,188 | ||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 1.2% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(d) (Cost $1,133,630) | 1,133,630 | 1,133,630 | ||||||
Total Investments — 100.5% (Cost $100,049,424) | 99,338,656 | |||||||
Liabilities in Excess of Other Assets — (0.5%) | (515,242 | ) | ||||||
Net Assets — 100.0% | $ | 98,823,414 |
PLC — Public Limited Company
† | Less than 0.05% |
‡ | 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, 2013. |
# | Represents step coupon bond. Rate shown reflects the rate in effect as of December 31, 2013. |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,105,478; the aggregate market value of the collateral held by the fund is $1,133,630. |
(b) | This Loan will settle after December 31, 2013 at which time the interest rate will be determined. |
(c) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(d) | Rate shown reflects the 1-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
72
ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Asset Backed Securities | 11.5 | % | ||
Commercial Mortgage Backed Securities | 12.2 | |||
Communications | 0.8 | |||
Consumer Discretionary | 5.1 | |||
Consumer Staples | 0.5 | |||
Consumer, Cyclical | 1.0 | |||
Consumer, Non-cyclical | 0.3 | |||
Diversified | 0.0† | |||
Diversified Media | 0.2 | |||
Energy | 2.2 | |||
Financials | 13.8 | |||
Fixed Income | 20.0 | |||
Foreign Government | 0.4 | |||
Health Care | 1.3 | |||
Industrials | 7.9 | |||
Information Technology | 2.1 | |||
Materials | 1.6 | |||
Non-Agency Mortgage-Backed Securities | 2.5 | |||
Residential Mortgage Backed Securities | 1.9 | |||
Telecommunication | 0.1 | |||
Telecommunication Services | 1.6 | |||
U.S. Government Agency Securities | 3.3 | |||
U.S. Treasury Notes | 7.3 | |||
Utilities | 0.4 | |||
Money Market Fund | 2.5 | |||
Total Investments | 100.5 | |||
Liabilities in Excess of Other Assets | (0.5 | ) | ||
Net Assets | 100.0 | % |
† | Less than 0.05% |
See accompanying Notes to Financial Statements.
73
ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
CORPORATE BONDS — 64.6% | ||||||||
Advertising — 2.7% | ||||||||
Affinion Group, Inc., 7.88%, 12/15/18(a) | $ | 8,825,000 | $ | 7,986,625 | ||||
Sitel Worldwide Corp., 11.00%, 08/01/17‡ | 4,000,000 | 4,290,000 | ||||||
Total Advertising | 12,276,625 | |||||||
Aerospace/Defense — 1.5% | ||||||||
Erickson Air-Crane, Inc., 8.25%, 05/01/20‡(a) | 6,795,000 | 7,066,800 | ||||||
Agriculture — 2.3% | ||||||||
North Atlantic Trading Co., 11.50%, 07/15/16‡ | 3,770,000 | 4,109,300 | ||||||
Southern States Cooperative, Inc., 10.00%, 08/15/21‡ | 6,650,000 | 6,467,125 | ||||||
Total Agriculture | 10,576,425 | |||||||
Auto Manufacturers — 1.6% | ||||||||
Navistar International Corp., 8.25%, 11/01/21(a) | 7,273,000 | 7,563,920 | ||||||
Beverages — 1.6% | ||||||||
Innovation Ventures LLC/Innovation Ventures Finance Corp., 9.50%, 08/15/19‡(a) | 7,325,000 | 7,141,875 | ||||||
Coal — 3.2% | ||||||||
Arch Coal, Inc., 9.88%, 06/15/19 | 8,445,000 | 7,558,275 | ||||||
Murray Energy Corp., 8.63%, 06/15/21‡ | 7,010,000 | 7,290,400 | ||||||
Total Coal | 14,848,675 | |||||||
Commercial Services — 3.5% | ||||||||
DynCorp International, Inc., 10.38%, 07/01/17(a) | 5,829,000 | 5,989,297 | ||||||
Harland Clarke Holdings Corp., 9.50%, 05/15/15 | 4,481,000 | 4,506,206 | ||||||
Harland Clarke Holdings Corp., 9.75%, 08/01/18‡ | 1,200,000 | 1,306,500 | ||||||
StoneMor Partners LP/Cornerstone Family Services of WV, 7.88%, 06/01/21‡ | 3,915,000 | 4,091,175 | ||||||
Total Commercial Services | 15,893,178 | |||||||
Computers — 1.2% | ||||||||
Stream Global Services, Inc., 11.25%, 10/01/14 | 5,549,000 | 5,576,745 | ||||||
Diversified Financial Services — 2.5% | ||||||||
CNG Holdings, Inc./OH, 9.38%, 05/15/20‡ | 6,874,000 | 6,358,450 | ||||||
GFI Group, Inc., 10.38%, 07/19/18#(a) | 4,825,000 | 5,030,062 | ||||||
Total Diversified Financial Services | 11,388,512 | |||||||
Electronics — 1.5% | ||||||||
KEMET Corp., 10.50%, 05/01/18 | 6,760,000 | 6,709,300 | ||||||
Entertainment — 1.2% | ||||||||
Gibson Brands, Inc., 8.88%, 08/01/18‡ | 5,220,000 | 5,533,200 |
See accompanying Notes to Financial Statements.
74
ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Environmental Control — 3.6% | ||||||||
Casella Waste Systems, Inc., 7.75%, 02/15/19 | $ | 5,114,000 | $ | 5,267,420 | ||||
EnergySolutions, Inc./EnergySolutions LLC, 10.75%, 08/15/18 | 4,050,000 | 4,343,625 | ||||||
Nuverra Environmental Solutions, Inc., 9.88%, 04/15/18(a) | 6,880,000 | 6,742,400 | ||||||
Total Environmental Control | 16,353,445 | |||||||
Food — 4.3% | ||||||||
American Seafoods Group LLC/American Seafoods Finance, Inc., 10.75%, 05/15/16‡ | 6,895,000 | 7,170,800 | ||||||
Simmons Foods, Inc., 10.50%, 11/01/17‡ | 5,930,000 | 6,330,275 | ||||||
SUPERVALU, Inc., 6.75%, 06/01/21(a) | 6,150,000 | 6,103,875 | ||||||
Total Food | 19,604,950 | |||||||
Forest Products & Paper — 1.1% | ||||||||
Verso Paper Holdings LLC/Verso Paper, Inc., 11.75%, 01/15/19 | 4,750,000 | 5,058,750 | ||||||
Healthcare – Products — 1.2% | ||||||||
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19(a) | 4,790,000 | 5,436,650 | ||||||
Healthcare – Services — 5.3% | ||||||||
Kindred Healthcare, Inc., 8.25%, 06/01/19 | 2,705,000 | 2,894,350 | ||||||
Radiation Therapy Services, Inc., 8.88%, 01/15/17 | 5,905,000 | 5,993,575 | ||||||
Radnet Management, Inc., 10.38%, 04/01/18(a) | 3,955,000 | 3,964,888 | ||||||
Select Medical Corp., 6.38%, 06/01/21 | 5,330,000 | 5,236,725 | ||||||
Vantage Oncology LLC/Vantage Oncology Finance Co., 9.50%, 06/15/17‡ | 6,160,000 | 6,344,800 | ||||||
Total Healthcare – Services | 24,434,338 | |||||||
Household Products/Wares — 1.2% | ||||||||
Central Garden & Pet Co., 8.25%, 03/01/18 | 5,820,000 | 5,689,050 | ||||||
Leisure Time — 1.3% | ||||||||
ICON Health & Fitness, 11.88%, 10/15/16‡(a) | 6,850,000 | 6,130,750 | ||||||
Metal Fabricate/Hardware — 1.6% | ||||||||
American Piping Products, Inc., 12.88%, 11/15/17‡ | 7,405,000 | 7,293,925 | ||||||
Mining — 1.4% | ||||||||
Molycorp, Inc., 10.00%, 06/01/20(a) | 6,565,000 | 6,548,588 | ||||||
Miscellaneous Manufacturing — 1.9% | ||||||||
Iracore International Holdings, Inc., 9.50%, 06/01/18‡(a) | 3,255,000 | 3,434,025 | ||||||
J.B. Poindexter & Co., Inc., 9.00%, 04/01/22‡ | 5,093,000 | 5,462,242 | ||||||
Total Miscellaneous Manufacturing | 8,896,267 |
See accompanying Notes to Financial Statements.
75
ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Oil & Gas — 3.7% | ||||||||
Quicksilver Resources, Inc., 9.13%, 08/15/19(a) | $ | 6,175,000 | $ | 6,298,500 | ||||
Talos Production LLC/Talos Production Finance, Inc., 9.75%, 02/15/18‡ | 3,800,000 | 3,904,500 | ||||||
Venoco, Inc., 8.88%, 02/15/19 | 6,740,000 | 6,672,600 | ||||||
Total Oil & Gas | 16,875,600 | |||||||
Oil & Gas Services — 2.9% | ||||||||
Forbes Energy Services Ltd., 9.00%, 06/15/19 | 7,060,000 | 6,954,100 | ||||||
Seitel, Inc., 9.50%, 04/15/19 | 6,185,000 | 6,277,775 | ||||||
Total Oil & Gas Services | 13,231,875 | |||||||
Packaging & Containers — 0.9% | ||||||||
Exopack Holding Corp., 10.00%, 06/01/18‡ | 3,904,000 | 4,255,360 | ||||||
Retail — 1.0% | ||||||||
Ferrellgas Partners LP, 8.63%, 06/15/20 | 4,552,000 | 4,813,740 | ||||||
Software — 1.4% | ||||||||
Southern Graphics, Inc., 8.38%, 10/15/20‡ | 5,975,000 | 6,214,000 | ||||||
Storage/Warehousing — 1.0% | ||||||||
Niska Gas Storage Partners LLC, 8.88%, 03/15/18 | 4,350,000 | 4,545,750 | ||||||
Telecommunications — 6.8% | ||||||||
Cincinnati Bell, Inc., 8.75%, 03/15/18 | 5,255,000 | 5,544,025 | ||||||
EarthLink, Inc., 7.38%, 06/01/20 | 4,230,000 | 4,240,575 | ||||||
EarthLink, Inc., 8.88%, 05/15/19(a) | 5,430,000 | 5,375,700 | ||||||
Fairpoint Communications, Inc., 8.75%, 08/15/19‡ | 5,150,000 | 5,484,750 | ||||||
Frontier Communications Corp., 7.63%, 04/15/24 | 5,680,000 | 5,694,200 | ||||||
NII Capital Corp., 10.00%, 08/15/16(a) | 9,560,000 | 5,114,600 | ||||||
Total Telecommunications | 31,453,850 | |||||||
Transportation — 1.2% | ||||||||
Era Group, Inc., 7.75%, 12/15/22 | 5,415,000 | 5,604,525 | ||||||
Total Corporate Bonds (Cost $293,285,756) | 297,016,668 | |||||||
FOREIGN BONDS — 19.3% | ||||||||
Airlines — 1.5% | ||||||||
Air Canada, 8.75%, 04/01/20 (Canada)‡ | 6,465,000 | 6,901,387 | ||||||
Beverages — 1.3% | ||||||||
CEDC Finance Corp. International, Inc., 8.00%, 04/30/18 (Poland) | 6,635,000 | 6,186,447 | ||||||
Environmental Control — 2.6% | ||||||||
Tervita Corp., 8.00%, 11/15/18 (Canada)‡ | 6,685,000 | 6,935,687 | ||||||
Tervita Corp., 10.88%, 02/15/18 (Canada)‡ | 4,750,000 | 4,850,938 | ||||||
Total Environmental Control | 11,786,625 |
See accompanying Notes to Financial Statements.
76
ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal/ Shares | Value | ||||||
Forest Products & Paper — 2.0% | ||||||||
Exopack Holdings SA, 7.88%, 11/01/19‡ | $ | 2,800,000 | $ | 2,870,000 | ||||
Millar Western Forest Products Ltd., 8.50%, 04/01/21 (Canada) | 6,150,000 | 6,349,875 | ||||||
Total Forest Products & Paper | 9,219,875 | |||||||
Mining — 2.9% | ||||||||
HudBay Minerals, Inc., 9.50%, 10/01/20 (Canada) | 6,160,000 | 6,360,200 | ||||||
HudBay Minerals, Inc., 9.50%, 10/01/20 (Canada)‡ | 500,000 | 512,500 | ||||||
IAMGOLD Corp., 6.75%, 10/01/20 (Canada)‡ | 7,675,000 | 6,638,875 | ||||||
Total Mining | 13,511,575 | |||||||
Miscellaneous Manufacturing — 1.3% | ||||||||
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc., 8.75%, 02/01/19 (Luxembourg)‡ | 5,660,000 | 5,872,250 | ||||||
Oil & Gas — 3.2% | ||||||||
Connacher Oil And Gas Ltd., 8.50%, 08/01/19 (Canada)‡(a) | 9,450,000 | 6,544,125 | ||||||
Lightstream Resources Ltd., 8.63%, 02/01/20 (Canada)‡ | 7,945,000 | 8,064,175 | ||||||
Total Oil & Gas | 14,608,300 | |||||||
Telecommunications — 1.4% | ||||||||
NII International Telecom SCA, 11.38%, 08/15/19 (Luxembourg)‡(a) | 7,605,000 | 6,388,200 | ||||||
Transportation — 3.1% | ||||||||
CHC Helicopter SA, 9.25%, 10/15/20 (Luxembourg) | 2,486,000 | 2,691,095 | ||||||
CHC Helicopter SA, 9.38%, 06/01/21 (Luxembourg)(a) | 5,790,000 | 5,963,700 | ||||||
Navios Maritime Holdings, Inc., 8.13%, 02/15/19 (Marshall Islands)(a) | 5,497,000 | 5,675,653 | ||||||
Total Transportation | 14,330,448 | |||||||
Total Foreign Bonds (Cost $87,520,555) | 88,805,107 | |||||||
COMMON STOCKS — 1.9% | ||||||||
Oil & Gas — 1.0% | ||||||||
Canadian Oil Sands Ltd. (Canada)(a) | 235,575 | 4,431,166 | ||||||
Pipelines — 0.9% | ||||||||
Niska Gas Storage Partners LLC | 283,672 | 4,186,999 | ||||||
Total Common Stocks (Cost $8,552,701) | 8,618,165 | |||||||
TERM LOANS — 12.0% | ||||||||
Apparel — 1.5% | ||||||||
SK Spice Sarl, 9.50%, 09/30/18 (Luxembourg) | 7,000,000 | 6,978,125 | ||||||
Commercial Services — 1.0% | ||||||||
Harland Clarke Holdings Corp., 7.00%, 05/22/18 | 4,471,875 | 4,513,396 |
See accompanying Notes to Financial Statements.
77
ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Principal/ Shares | Value | ||||||
Environmental Control — 1.0% | ||||||||
GSE Environmental, Inc., 9.00%, 05/27/16 | $ | 5,092,559 | $ | 4,710,617 | ||||
Oil & Gas — 1.6% | ||||||||
Teine Energy Ltd, 7.50%, 05/17/19 (Canada) | 6,964,912 | 7,069,386 | ||||||
Retail — 2.2% | ||||||||
Collective Brands Inc., 7.25%, 10/09/19 | 5,984,925 | 6,014,789 | ||||||
Hudson’s Bay Co., 8.25%, 11/04/21 (Canada) | 4,000,000 | 4,070,760 | ||||||
Total Retail | 10,085,549 | |||||||
Software — 1.3% | ||||||||
Vitera Healthcare Solutions LLC, 9.25%, 11/04/21 | 6,000,000 | 6,060,000 | ||||||
Telecommunications — 2.2% | ||||||||
Avaya Inc., 8.00%, 03/31/18 | 3,000,000 | 3,049,500 | ||||||
Global Tel*Link Corp, 9.00%, 11/20/20 | 7,375,000 | 7,061,563 | ||||||
Total Telecommunications | 10,111,063 | |||||||
Transportation — 1.2% | ||||||||
YRC Worldwide, Inc., 10.00%, 03/31/15 | 5,753,766 | 5,638,691 | ||||||
Total Term Loans (Cost $54,953,210) | 55,166,827 | |||||||
MONEY MARKET FUND — 3.1% | ||||||||
BlackRock Liquidity Funds TempFund Portfolio – Dollar Class, 0.04%(b) (Cost $14,350,886) | 14,350,886 | 14,350,886 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 12.9% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $59,608,290) | 59,608,290 | 59,608,290 | ||||||
Total Investments — 113.8% (Cost $518,271,398) | 523,565,943 | |||||||
Liabilities in Excess of Other Assets — (13.8%) | (63,502,276 | ) | ||||||
Net Assets — 100.0% | $ | 460,063,667 |
LP — Limited Partnership
‡ | 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. |
# | Represents step coupon bond. Rate shown reflects the rate in effect at December 31, 2013. |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $58,140,108; the aggregate market value of the collateral held by the fund is $59,608,290. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(c) | Rate shown reflects the 1-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
78
ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 2.7 | % | ||
Aerospace/Defense | 1.5 | |||
Agriculture | 2.3 | |||
Airlines | 1.5 | |||
Apparel | 1.5 | |||
Auto Manufacturers | 1.6 | |||
Beverages | 2.9 | |||
Coal | 3.2 | |||
Commercial Services | 4.5 | |||
Computers | 1.2 | |||
Diversified Financial Services | 2.5 | |||
Electronics | 1.5 | |||
Entertainment | 1.2 | |||
Environmental Control | 7.2 | |||
Food | 4.3 | |||
Forest Products & Paper | 3.1 | |||
Healthcare – Products | 1.2 | |||
Healthcare – Services | 5.3 | |||
Household Products/Wares | 1.2 | |||
Leisure Time | 1.3 | |||
Metal Fabricate/Hardware | 1.6 | |||
Mining | 4.3 | |||
Miscellaneous Manufacturing | 3.2 | |||
Oil & Gas | 9.5 | |||
Oil & Gas Services | 2.9 | |||
Packaging & Containers | 0.9 | |||
Pipelines | 0.9 | |||
Retail | 3.2 | |||
Software | 2.7 | |||
Storage/Warehousing | 1.0 | |||
Telecommunications | 10.4 | |||
Transportation | 5.5 | |||
Money Market Fund | 16.0 | |||
Total Investments | 113.8 | |||
Liabilities in Excess of Other Assets | (13.8 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
79
ADVISORSHARES
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 56.3% | ||||||||
Banks — 4.2% | ||||||||
Royal Bank of Canada (Canada) | 1,673 | $ | 112,476 | |||||
Wells Fargo & Co. | 2,399 | 108,914 | ||||||
Total Banks | 221,390 | |||||||
Coal — 2.0% | ||||||||
Alliance Resource Partners, LP | 1,373 | 105,721 | ||||||
Commercial Services — 2.9% | ||||||||
Apollo Education Group, Inc., Class A* | 5,556 | 151,790 | ||||||
Electric — 1.2% | ||||||||
MDU Resources Group, Inc. | 2,047 | 62,536 | ||||||
Holding Companies – Diversified — 1.9% | ||||||||
Leucadia National Corp. | 3,594 | 101,854 | ||||||
Insurance — 4.9% | ||||||||
American International Group, Inc. | 2,513 | 128,289 | ||||||
Aon PLC (United Kingdom) | 1,545 | 129,610 | ||||||
Total Insurance | 257,899 | |||||||
Iron/Steel — 2.3% | ||||||||
Reliance Steel & Aluminum Co. | 1,611 | 122,178 | ||||||
Mining — 9.5% | ||||||||
Alamos Gold, Inc. (Canada) | 6,755 | 81,938 | ||||||
First Majestic Silver Corp. (Canada)* | 7,997 | 78,370 | ||||||
Franco-Nevada Corp. (Canada) | 2,363 | 96,269 | ||||||
Royal Gold, Inc. | 1,926 | 88,731 | ||||||
Sandstorm Gold Ltd. (Canada)*(a) | 15,910 | 67,936 | ||||||
Silver Wheaton Corp. (Canada) | 4,500 | 90,855 | ||||||
Total Mining | 504,099 | |||||||
Oil & Gas — 6.7% | ||||||||
Enerplus Corp. (Canada)(a) | 7,321 | 133,096 | ||||||
Seadrill Ltd. (Norway) | 2,385 | 97,976 | ||||||
Whiting Petroleum Corp.* | 1,955 | 120,956 | ||||||
Total Oil & Gas | 352,028 |
See accompanying Notes to Financial Statements.
80
ADVISORSHARES
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||||||||||
Investments | Shares | Value | ||||||||||||||
Pharmaceuticals — 2.0% | ||||||||||||||||
Pfizer, Inc. | 3,478 | $ | 106,531 | |||||||||||||
Pipelines — 3.6% | ||||||||||||||||
Kinder Morgan, Inc. | 2,559 | 92,124 | ||||||||||||||
Spectra Energy Corp. | 2,765 | 98,489 | ||||||||||||||
Total Pipelines | 190,613 | |||||||||||||||
Semiconductors — 2.5% | ||||||||||||||||
Intel Corp. | 5,076 | 131,773 | ||||||||||||||
Software — 4.4% | ||||||||||||||||
Microsoft Corp. | 2,998 | 112,215 | ||||||||||||||
Paychex, Inc. | 2,591 | 117,968 | ||||||||||||||
Total Software | 230,183 | |||||||||||||||
Telecommunications — 3.7% | ||||||||||||||||
Cisco Systems, Inc. | 4,394 | 98,645 | ||||||||||||||
Verizon Communications, Inc. | 1,996 | 98,084 | ||||||||||||||
Total Telecommunications | 196,729 | |||||||||||||||
Transportation — 4.5% | ||||||||||||||||
Navios Maritime Partners, LP (Greece) | 7,084 | 135,446 | ||||||||||||||
Union Pacific Corp. | 604 | 101,472 | ||||||||||||||
Total Transportation | 236,918 | |||||||||||||||
Total Common Stocks (Cost $2,833,330) | 2,972,242 | |||||||||||||||
EXCHANGE TRADED FUNDS — 21.5% | ||||||||||||||||
Debt Fund — 18.8% | ||||||||||||||||
AdvisorShares Peritus High Yield ETF†(a) | 5,023 | 259,790 | ||||||||||||||
Guggenheim BulletShares 2015 High Yield Corporate Bond ETF(a) | 9,466 | 253,500 | ||||||||||||||
iShares 20+ Year Treasury Bond ETF(a) | 1,734 | 176,625 | ||||||||||||||
PIMCO Enhanced Short Maturity ETF | 500 | 50,650 | ||||||||||||||
PowerShares Senior Loan Portfolio | 10,097 | 251,213 | ||||||||||||||
Total Debt Fund | 991,778 | |||||||||||||||
Equity Fund — 2.7% | ||||||||||||||||
SPDR S&P International Dividend ETF | 3,083 | 146,289 | ||||||||||||||
Total Exchange Traded Funds (Cost $1,167,925) | 1,138,067 |
See accompanying Notes to Financial Statements.
81
ADVISORSHARES
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 21.0% | ||||||||
Dreyfus Government Cash Management – Investor Shares, 0.01%(b) | ||||||||
(Cost $1,107,664) | 1,107,664 | $ | 1,107,664 | |||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 9.0% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) | ||||||||
(Cost $474,323) | 474,323 | 474,323 | ||||||
Total Investments — 107.8% (Cost $5,583,242) | 5,692,296 | |||||||
Liabilities in Excess of Other Assets — (7.8)% | (411,073 | ) | ||||||
Net Assets — 100.0% | $ | 5,281,223 |
LP — Limited Partnership
PLC — Public Limited Company
ETF — Exchange Traded Fund
* | Non-income producing security |
† | Affiliated Company |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $452,537; the aggregate market value of the collateral held by the fund is $474,323. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(c) | Rate shown reflects the 1-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
82
ADVISORSHARES
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Banks | 4.2 | % | ||
Coal | 2.0 | |||
Commercial Services | 2.9 | |||
Debt Fund | 18.8 | |||
Electric | 1.2 | |||
Equity Fund | 2.7 | |||
Holding Companies – Diversified | 1.9 | |||
Insurance | 4.9 | |||
Iron/Steel | 2.3 | |||
Mining | 9.5 | |||
Oil & Gas | 6.7 | |||
Pharmaceuticals | 2.0 | |||
Pipelines | 3.6 | |||
Semiconductors | 2.5 | |||
Software | 4.4 | |||
Telecommunications | 3.7 | |||
Transportation | 4.5 | |||
Money Market Fund | 30.0 | |||
Total Investments | 107.8 | |||
Liabilities in Excess of Other Assets | (7.8 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
83
ADVISORSHARES
QAM EQUITY HEDGE ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED NOTES — 0.6% | ||||||||
Equity Fund — 0.6% | ||||||||
iPath MSCI India Index ETN | 287 | $ | 16,348 | |||||
JPMorgan Alerian MLP Index ETN | 601 | 27,856 | ||||||
Total Exchange Traded Notes (Cost $41,450) | 44,204 | |||||||
EXCHANGE TRADED FUNDS — 92.5% | ||||||||
Currency Fund — 0.9% | ||||||||
SPDR Gold Shares* | 370 | 42,983 | ||||||
WisdomTree Brazilian Real Fund* | 137 | 2,370 | ||||||
WisdomTree Indian Rupee Fund* | 722 | 14,397 | ||||||
Total Currency Fund | 59,750 | |||||||
Debt Fund — 25.9% | ||||||||
Guggenheim Enhanced Short Duration ETF | 6,955 | 348,932 | ||||||
iShares Short Treasury Bond ETF(a) | 4,090 | 450,923 | ||||||
PIMCO Enhanced Short Maturity ETF | 3,441 | 348,573 | ||||||
SPDR Barclays 1–3 Month T-Bill ETF*(a) | 9,822 | 449,553 | ||||||
SPDR SSgA Ultra Short Term Bond ETF | 5,342 | 214,161 | ||||||
Total Debt Fund | 1,812,142 | |||||||
Equity Fund — 65.7% | ||||||||
First Trust Dow Jones Internet Index Fund* | 3,326 | 199,094 | ||||||
First Trust Europe AlphaDEX Fund | 1,375 | 45,980 | ||||||
First Trust South Korea AlphaDEX Fund | 409 | 11,534 | ||||||
Global X Brazil Consumer ETF | 2,431 | 38,969 | ||||||
Global X Nigeria Index ETF | 1,732 | 27,781 | ||||||
Guggenheim Canadian Energy Income ETF | 411 | 6,046 | ||||||
Guggenheim China Small Cap Index ETF | 8,146 | 217,009 | ||||||
Guggenheim China Technology ETF | 1,886 | 66,142 | ||||||
Guggenheim Raymond James SB-1 Equity ETF | 3,331 | 111,688 | ||||||
Guggenheim Russell 1000 Equal Weight ETF | 5,397 | 251,122 | ||||||
Guggenheim S&P 500 Equal Weight ETF | 9,637 | 686,636 | ||||||
Guggenheim S&P 500 Equal Weight Financials ETF | 7,942 | 314,940 | ||||||
Guggenheim S&P 500 Equal Weight Healthcare ETF | 100 | 11,042 |
See accompanying Notes to Financial Statements.
84
ADVISORSHARES
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Equity Fund — 65.7% (continued) | ||||||||
Guggenheim S&P 500 Equal Weight Technology ETF | 223 | $ | 17,187 | |||||
Guggenheim S&P Midcap 400 Pure Growth ETF | 250 | 30,733 | ||||||
iShares Core S&P Small-Cap ETF | 954 | 104,186 | ||||||
iShares Global Materials ETF | 303 | 18,886 | ||||||
iShares Japan Large-Cap ETF | 2,005 | 105,603 | ||||||
iShares Latin American 40 ETF | 2,550 | 94,452 | ||||||
iShares Microcap ETF | 1,143 | 85,976 | ||||||
iShares MSCI Brazil Small-Cap ETF | 175 | 3,469 | ||||||
iShares MSCI EAFE ETF | 517 | 34,670 | ||||||
iShares MSCI Europe Financials ETF | 685 | 17,159 | ||||||
iShares MSCI Frontier 100 ETF | 6,040 | 203,790 | ||||||
iShares MSCI Hong Kong ETF | 757 | 15,594 | ||||||
iShares MSCI India Small-Cap ETF | 1,466 | 32,487 | ||||||
iShares MSCI Israel Capped ETF | 69 | 3,327 | ||||||
iShares MSCI Pacific Ex-Japan ETF | 680 | 31,776 | ||||||
iShares MSCI Poland Capped ETF | 503 | 14,929 | ||||||
iShares MSCI South Korea Capped ETF | 156 | 10,089 | ||||||
iShares MSCI Taiwan ETF | 923 | 13,310 | ||||||
iShares MSCI Thailand Capped ETF | 289 | 19,840 | ||||||
iShares MSCI Turkey ETF | 34 | 1,620 | ||||||
iShares MSCI United Kingdom ETF | 642 | 13,405 | ||||||
iShares MSCI United Kingdom Small-Cap ETF | 2,245 | 94,627 | ||||||
iShares MSCI USA Momentum Index Fund | 4,330 | 259,930 | ||||||
iShares Nasdaq Biotechnology ETF | 325 | 73,794 | ||||||
iShares North American Natural Resources ETF | 4,296 | 186,403 | ||||||
iShares Russell 1000 Growth ETF | 1,443 | 124,026 | ||||||
iShares Russell 1000 Value ETF | 1,033 | 97,267 | ||||||
iShares Russell 2000 Growth ETF | 2,768 | 375,092 | ||||||
iShares Russell 2000 Value ETF | 261 | 25,970 | ||||||
iShares U.S. Medical Devices ETF | 131 | 12,169 | ||||||
iShares U.S. Pharmaceuticals ETF | 56 | 6,614 | ||||||
Market Vectors Agribusiness ETF | 365 | 19,889 | ||||||
Market Vectors China ETF | 196 | 6,237 | ||||||
Market Vectors Egypt Index ETF | 160 | 8,581 |
See accompanying Notes to Financial Statements.
85
ADVISORSHARES
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Equity Fund — 65.7% (continued) | ||||||||
Market Vectors Gulf States Index ETF | 976 | $ | 26,313 | |||||
Market Vectors Indonesia Index ETF | 1,344 | 28,573 | ||||||
Market Vectors Russia ETF | 762 | 21,999 | ||||||
Market Vectors Russia Small-Cap ETF | 1,705 | 72,599 | ||||||
Market Vectors Uranium+Nuclear Energy ETF | 112 | 5,386 | ||||||
Market Vectors Vietnam ETF | 89 | 1,672 | ||||||
PowerShares Dynamic Market Portfolio | 630 | 43,004 | ||||||
PowerShares S&P SmallCap Financials Portfolio | 478 | 18,943 | ||||||
PowerShares S&P SmallCap Health Care Portfolio | 1,440 | 79,459 | ||||||
SPDR EURO STOXX 50 ETF | 155 | 6,541 | ||||||
SPDR Russell/Nomura Small Cap Japan ETF | 678 | 34,036 | ||||||
SPDR S&P Emerging Markets SmallCap ETF | 844 | 39,170 | ||||||
WisdomTree Europe SmallCap Dividend Fund | 1,249 | 72,267 | ||||||
Total Equity Fund | 4,601,032 | |||||||
Total Exchange Traded Funds (Cost $5,988,243) | 6,472,924 | |||||||
MONEY MARKET FUND — 10.7% | ||||||||
JP Morgan Prime Money Market Fund – Institutional Class, 0.01%(b) (Cost $752,139) | 752,139 | 752,139 | ||||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $6,781,832) | 7,269,267 | |||||||
Securities Sold, Not Yet Purchased — (6.1)% | ||||||||
EXCHANGE TRADED FUNDS — (6.1)% | ||||||||
Currency Fund — (6.1)% | ||||||||
CurrencyShares British Pound Sterling Trust* | (791 | ) | (129,092 | ) | ||||
CurrencyShares Euro Currency Trust* | (882 | ) | (119,943 | ) | ||||
CurrencyShares Japanese Yen Trust* | (1,937 | ) | (179,676 | ) | ||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(435,234)] | (428,711 | ) | ||||||
Total Investments — 97.7% (Cost $6,346,598) | 6,840,556 | |||||||
Other Assets in Excess of Liabilities — 2.3% | 158,143 | |||||||
Net Assets — 100.0% | $ | 6,998,699 |
See accompanying Notes to Financial Statements.
86
ADVISORSHARES
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
ETF — Exchange Traded Fund
ETN — Exchange Traded Note
* | Non-income producing security |
(a) | All or a portion of this security has been segregated as collateral for open short positions. The aggregate market value of the collateral posted was $1,052,481, which includes cash in the amount of $427,440 as of December 31, 2013. |
(b) | Rate shown reflects the 7-day yield as of December 31, 2013. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Currency Fund | (5.2 | )% | ||
Debt Fund | 25.9 | |||
Equity Fund | 66.3 | |||
Money Market Fund | 10.7 | |||
Total Investments | 97.7 | |||
Other Assets in Excess of Liabilities | 2.3 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
87
ADVISORSHARES
RANGER EQUITY BEAR ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 5.7% | ||||||||
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, 0.04%(a) | 7,500,000 | $ | 7,500,000 | |||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $7,500,000) | ||||||||
Securities Sold, Not Yet Purchased — (98.3)% | ||||||||
COMMON STOCKS — (98.3)% | ||||||||
Aerospace/Defense — (2.7)% | ||||||||
Triumph Group, Inc. | (45,691 | ) | (3,475,714 | ) | ||||
Beverages — (2.3)% | ||||||||
Green Mountain Coffee Roasters, Inc.* | (40,462 | ) | (3,058,118 | ) | ||||
Computers — (9.1)% | ||||||||
3D Systems Corp.* | (41,400 | ) | (3,847,302 | ) | ||||
Cadence Design Systems, Inc.* | (112,507 | ) | (1,577,348 | ) | ||||
International Business Machines Corp. | (34,700 | ) | (6,508,679 | ) | ||||
Total Computers | (11,933,329 | ) | ||||||
Distribution/Wholesale — (6.0)% | ||||||||
Fastenal Co. | (74,400 | ) | (3,534,744 | ) | ||||
Fossil Group, Inc.* | (19,206 | ) | (2,303,568 | ) | ||||
LKQ Corp.* | (63,100 | ) | (2,075,990 | ) | ||||
Total Distribution/Wholesale | (7,914,302 | ) | ||||||
Electronics — (1.8)% | ||||||||
National Instruments Corp. | (74,400 | ) | (2,382,288 | ) | ||||
Engineering & Construction — (1.9)% | ||||||||
MasTec, Inc.* | (75,896 | ) | (2,483,317 | ) | ||||
Healthcare – Products — (1.8)% | ||||||||
Haemonetics Corp.* | (55,688 | ) | (2,346,135 | ) | ||||
Home Furnishings — (3.8)% | ||||||||
Tempur Sealy International, Inc.* | (92,799 | ) | (5,007,434 | ) | ||||
Internet — (9.5)% | ||||||||
Equinix, Inc.* | (14,335 | ) | (2,543,746 | ) | ||||
Netflix, Inc.* | (6,387 | ) | (2,351,502 | ) | ||||
TripAdvisor, Inc.* | (17,437 | ) | (1,444,306 | ) | ||||
Yelp, Inc.* | (35,180 | ) | (2,425,661 | ) | ||||
Zillow, Inc., Class A* | (44,226 | ) | (3,614,591 | ) | ||||
Total Internet | (12,379,806 | ) |
See accompanying Notes to Financial Statements.
88
ADVISORSHARES
RANGER EQUITY BEAR ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Leisure Time — (2.1)% | ||||||||
Harley-Davidson, Inc. | (40,282 | ) | $ | (2,789,126 | ) | |||
Machinery – Construction & Mining — (3.4)% | ||||||||
Caterpillar, Inc. | (49,503 | ) | (4,495,367 | ) | ||||
Media — (2.7)% | ||||||||
Nexstar Broadcasting Group, Inc., Class A | (62,579 | ) | (3,487,528 | ) | ||||
Miscellaneous Manufacturing — (2.5)% | ||||||||
Eaton Corp. PLC (Ireland) | (17,000 | ) | (1,294,040 | ) | ||||
Pentair Ltd. (Switzerland) | (24,600 | ) | (1,910,682 | ) | ||||
Total Miscellaneous Manufacturing | (3,204,722 | ) | ||||||
Oil & Gas — (1.7)% | ||||||||
Atlas Resource Partners LP | (110,544 | ) | (2,263,941 | ) | ||||
Oil & Gas Services — (1.8)% | ||||||||
Geospace Technologies Corp.* | (24,842 | ) | (2,355,767 | ) | ||||
Real Estate — (1.9)% | ||||||||
Brookfield Asset Management, Inc., Class A (Canada) | (64,500 | ) | (2,504,535 | ) | ||||
Real Estate Investment Trust — (2.1)% | ||||||||
American Tower Corp. | (33,984 | ) | (2,712,603 | ) | ||||
Retail — (14.7)% | ||||||||
Cabela's, Inc.* | (36,490 | ) | (2,432,423 | ) | ||||
Children's Place Retail Stores, Inc. (The)* | (32,300 | ) | (1,840,131 | ) | ||||
Conn's, Inc.* | (54,810 | ) | (4,318,480 | ) | ||||
Panera Bread Co., Class A* | (18,877 | ) | (3,335,377 | ) | ||||
PVH Corp. | (25,741 | ) | (3,501,291 | ) | ||||
Sally Beauty Holdings, Inc.* | (127,529 | ) | (3,855,202 | ) | ||||
Total Retail | (19,282,904 | ) | ||||||
Semiconductors — (2.7)% | ||||||||
Altera Corp. | (67,058 | ) | (2,181,397 | ) | ||||
Cavium, Inc.* | (38,600 | ) | (1,332,086 | ) | ||||
Total Semiconductors | (3,513,483 | ) | ||||||
Software — (3.6)% | ||||||||
Akamai Technologies, Inc.* | (47,000 | ) | (2,217,460 | ) | ||||
E2open, Inc.* | (106,165 | ) | (2,538,405 | ) | ||||
Total Software | (4,755,865 | ) |
See accompanying Notes to Financial Statements.
89
ADVISORSHARES
RANGER EQUITY BEAR ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Telecommunications — (15.6)% | �� | |||||||
Centurylink, Inc. | (173,500 | ) | $ | (5,525,975 | ) | |||
Consolidated Communications Holdings, Inc. | (222,682 | ) | (4,371,248 | ) | ||||
Frontier Communications Corp. | (542,300 | ) | (2,521,695 | ) | ||||
Palo Alto Networks, Inc.* | (55,963 | ) | (3,216,193 | ) | ||||
Ubiquiti Networks, Inc.* | (35,808 | ) | (1,645,736 | ) | ||||
Windstream Holdings, Inc. | (391,293 | ) | (3,122,518 | ) | ||||
Total Telecommunications | (20,403,365 | ) | ||||||
Transportation — (4.6)% | ||||||||
C.H. Robinson Worldwide, Inc. | (60,300 | ) | (3,517,902 | ) | ||||
Genesee & Wyoming, Inc., Class A* | (25,617 | ) | (2,460,513 | ) | ||||
Total Transportation | (5,978,415 | ) | ||||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(115,062,620)] | (128,728,064 | ) | ||||||
Total Investments — (92.6)% [(Cost $(107,562,620))] | (121,228,064 | ) | ||||||
Other Assets in Excess of Liabilities — 192.6% | 252,109,009 | |||||||
Net Assets — 100.0% | $ | 130,880,945 |
LP — Limited Partnership
PLC — Public Limited Company
* | Non-income producing security |
(a) | Rate shown reflects the 7-day yield as of December 31, 2013. |
Cash of $130,039,600 has been segregated to cover margin requirement for open short sales as of December 31, 2013.
See accompanying Notes to Financial Statements.
90
ADVISORSHARES
RANGER EQUITY BEAR ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Aerospace/Defense | (2.7 | )% | ||
Beverages | (2.3 | ) | ||
Computers | (9.1 | ) | ||
Distribution/Wholesale | (6.0 | ) | ||
Electronics | (1.8 | ) | ||
Engineering & Construction | (1.9 | ) | ||
Healthcare – Products | (1.8 | ) | ||
Home Furnishings | (3.8 | ) | ||
Internet | (9.5 | ) | ||
Leisure Time | (2.1 | ) | ||
Machinery – Construction & Mining | (3.4 | ) | ||
Media | (2.7 | ) | ||
Miscellaneous Manufacturing | (2.5 | ) | ||
Oil & Gas | (1.7 | ) | ||
Oil & Gas Services | (1.8 | ) | ||
Real Estate | (1.9 | ) | ||
Real Estate Investment Trust | (2.1 | ) | ||
Retail | (14.7 | ) | ||
Semiconductors | (2.7 | ) | ||
Software | (3.6 | ) | ||
Telecommunications | (15.6 | ) | ||
Transportation | (4.6 | ) | ||
Money Market Fund | 5.7 | |||
Total Investments | (92.6 | ) | ||
Other Assets in Excess of Liabilities | 192.6 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
91
ADVISORSHARES
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 66.8% | ||||||||
Commodity Fund — 4.2% | ||||||||
PowerShares DB Precious Metals Fund* | 27,047 | $ | 1,059,972 | |||||
Debt Fund — 2.4% | ||||||||
iShares Barclays 20+ Year Treasury Bond ETF | 1,528 | 155,642 | ||||||
iShares JPMorgan USD Emerging Markets Bond ETF | 4,105 | 443,997 | ||||||
Total Debt Fund | 599,639 | |||||||
Equity Fund — 60.2% | ||||||||
Consumer Discretionary Select Sector SPDR Fund | 7,660 | 511,918 | ||||||
Consumer Staples Select Sector SPDR Fund | 10,433 | 448,410 | ||||||
Energy Select Sector SPDR Fund | 17,142 | 1,517,238 | ||||||
Financial Select Sector SPDR Fund | 28,693 | 627,229 | ||||||
Health Care Select Sector SPDR Fund | 9,131 | 506,223 | ||||||
Industrial Select Sector SPDR Fund | 7,702 | 402,507 | ||||||
iShares MSCI EAFE ETF | 18,635 | 1,249,663 | ||||||
iShares MSCI Emerging Markets ETF | 28,628 | 1,195,792 | ||||||
Materials Select Sector SPDR Fund | 2,855 | 131,958 | ||||||
SPDR S&P 500 ETF Trust | 40,742 | 7,523,825 | ||||||
Technology Select Sector SPDR Fund | 22,438 | 801,934 | ||||||
Utilities Select Sector SPDR Fund | 3,253 | 123,516 | ||||||
Total Equity Fund | 15,040,213 | |||||||
Total Exchange Traded Funds (Cost $15,910,866) | 16,699,824 | |||||||
U.S. TREASURY BILLS — 8.0% | ||||||||
U.S. Treasury Bill, 0.06%, 08/21/14(b) | 1,000,000 | 999,575 | ||||||
U.S. Treasury Bill, 0.07% 10/16/14(b) | 1,000,000 | 999,452 | ||||||
Total U.S. Treasury Bills (Cost $1,998,749) | 1,999,027 | |||||||
MONEY MARKET FUND — 13.6% | ||||||||
BlackRock Liquidity Funds-T-Fund Portfolio – Institutional Class, 0.01%(a) (Cost $3,391,161) | 3,391,161 | 3,391,161 |
See accompanying Notes to Financial Statements.
92
ADVISORSHARES
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investment | Contracts | Value | ||||||
PURCHASED PUT OPTION — 0.1% | ||||||||
SPDR S&P 500 ETF Trust Option expiring 03/22/14 @178.00 (Cost $32,354) | 128 | $ | 29,760 | |||||
Total Investments Before Written Options — 88.5% (Cost $21,333,130) | 22,119,772 | |||||||
WRITTEN CALL OPTIONS — (0.3)% | ||||||||
Energy Select Sector SPDR Fund Option expiring 01/18/14 @ $90.00 | (39 | ) | (1,521 | ) | ||||
iShares 20+ Year Treasury Bond ETF Option expiring 02/22/14, Strike Price $105.00 | (13 | ) | (644 | ) | ||||
iShares MSCI EAFE (EFA) Option expiring 01/18/14, Strike Price $68.00 | (53 | ) | (1,881 | ) | ||||
iShares MSCI EAFE (EFA) Option expiring 02/22/14, Strike Price $68.00 | (133 | ) | (11,638 | ) | ||||
iShares MSCI Emerging Markets ETF Option expiring 02/22/14, Strike Price $42.50 | (143 | ) | (11,654 | ) | ||||
iShares MSCI Emerging Markets ETF Option expiring 01/18/14, Strike Price $43.50 | (14 | ) | (203 | ) | ||||
iShares MSCI Emerging Markets ETF Option expiring 01/18/14, Strike Price $44.50 | (129 | ) | (774 | ) | ||||
PowerShares DB Precious Metals Fund Option expiring 01/18/14, Strike Price $42.00 | (60 | ) | (600 | ) | ||||
SPDR S&P 500 ETF Trust Option expiring 01/18/14, Strike Price $184.00 | (115 | ) | (26,565 | ) | ||||
SPDR S&P 500 ETF Trust Option expiring 01/18/14, Strike Price $185.00 | (180 | ) | (30,330 | ) | ||||
Total Written Call Options [Premiums Received $(54,177)] | (85,810 | ) |
See accompanying Notes to Financial Statements.
93
ADVISORSHARES
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investment | Contracts | Value | ||||||
WRITTEN PUT OPTIONS — (0.2)% | ||||||||
iShares 20+ Year Treasury Bond ETF Option expiring 01/18/14 @ $102.00 | (3 | ) | $ | (321 | ) | |||
iShares 20+ Year Treasury Bond ETF Option expiring 01/18/14 @ $103.00 | (162 | ) | (27,054 | ) | ||||
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 01/18/14 @ $93.00 | (98 | ) | (4,900 | ) | ||||
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 02/22/14 @ $93.00 | (100 | ) | (12,250 | ) | ||||
iShares JP Morgan USD Emerging Markets Bond ETF Option expiring 01/18/14 @ $108.00 | (35 | ) | (2,450 | ) | ||||
iShares JP Morgan USD Emerging Markets Bond ETF Option expiring 01/18/14 @ $109.00 | (39 | ) | (4,680 | ) | ||||
Total Written Put Options [Premiums Received $(65,202)] | (51,655 | ) | ||||||
Total Written Options — (0.5)% | ||||||||
Premiums Received $(119,379) | (137,465 | ) | ||||||
Total Investments — 88.0% (Cost $21,213,751) | 21,982,307 | |||||||
Other Assets in Excess of Liabilities — 12.0% | 3,001,846 | |||||||
Net Assets — 100.0% | $ | 24,984,153 |
ETF — Exchange Traded Fund
* | Non-income producing security |
(a) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(b) | All or a portion of this security has been pledged as collateral for option contracts. The aggregate market value of the collateral was $3,021,179, which includes cash in the amount of $1,040,429 as of December 31, 2013 |
See accompanying Notes to Financial Statements.
94
ADVISORSHARES
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Commodity Fund | 4.2 | % | ||
Debt Fund | 2.4 | |||
Equity Fund | 60.2 | |||
U.S. Treasury Bills | 8.0 | |||
Money Market Fund | 13.6 | |||
Purchased Put Option | 0.1 | |||
Written Call Options | (0.3 | ) | ||
Written Put Options | (0.2 | ) | ||
Total Investments | 88.0 | |||
Other Assets in Excess of Liabilities | 12.0 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
95
ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 100.1% | ||||||||
Aerospace/Defense — 2.0% | ||||||||
Northrop Grumman Corp. | 8,496 | $ | 973,727 | |||||
Rockwell Collins, Inc. | 13,020 | 962,438 | ||||||
Total Aerospace/Defense | 1,936,165 | |||||||
Agriculture — 2.0% | ||||||||
Archer-Daniels-Midland Co. | 22,226 | 964,608 | ||||||
Philip Morris International, Inc. | 11,176 | 973,765 | ||||||
Total Agriculture | 1,938,373 | |||||||
Airlines — 2.0% | ||||||||
Alaska Air Group, Inc. | 13,516 | 991,669 | ||||||
Southwest Airlines Co. | 51,228 | 965,135 | ||||||
Total Airlines | 1,956,804 | |||||||
Auto Manufacturers — 1.0% | ||||||||
Oshkosh Corp. | 18,845 | 949,411 | ||||||
Auto Parts & Equipment — 1.0% | ||||||||
Delphi Automotive PLC (United Kingdom) | 15,905 | 956,368 | ||||||
Banks — 1.0% | ||||||||
Capital One Financial Corp. | 13,006 | 996,390 | ||||||
Beverages — 1.0% | ||||||||
Dr Pepper Snapple Group, Inc. | 19,819 | 965,582 | ||||||
Biotechnology — 1.0% | ||||||||
Biogen Idec, Inc.* | 3,435 | 960,941 | ||||||
Chemicals — 4.0% | ||||||||
Airgas, Inc. | 8,601 | 962,022 | ||||||
Albemarle Corp. | 15,126 | 958,837 | ||||||
Sigma-Aldrich Corp. | 10,529 | 989,832 | ||||||
Valspar Corp. (The) | 13,594 | 969,116 | ||||||
Total Chemicals | 3,879,807 | |||||||
Commercial Services — 5.1% | ||||||||
Alliance Data Systems Corp.* | 3,756 | 987,565 | ||||||
Cintas Corp. | 17,293 | 1,030,490 |
See accompanying Notes to Financial Statements.
96
ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Commercial Services — 5.1% (continued) | ||||||||
MasterCard, Inc., Class A | 1,184 | $ | 989,184 | |||||
Moody's Corp. | 12,617 | 990,056 | ||||||
Towers Watson & Co., Class A | 7,762 | 990,509 | ||||||
Total Commercial Services | 4,987,804 | |||||||
Computers — 5.1% | ||||||||
Apple, Inc. | 1,728 | 969,598 | ||||||
EMC Corp. | 40,489 | 1,018,298 | ||||||
International Business Machines Corp. | 5,341 | 1,001,811 | ||||||
NetApp, Inc. | 23,867 | 981,889 | ||||||
Teradata Corp.* | 22,821 | 1,038,127 | ||||||
Total Computers | 5,009,723 | |||||||
Cosmetics/Personal Care — 1.0% | ||||||||
Colgate-Palmolive Co. | 14,857 | 968,825 | ||||||
Distribution/Wholesale — 1.0% | ||||||||
Arrow Electronics, Inc.* | 18,384 | 997,332 | ||||||
Diversified Financial Services — 3.0% | ||||||||
American Express Co. | 11,095 | 1,006,650 | ||||||
Franklin Resources, Inc. | 17,095 | 986,894 | ||||||
Legg Mason, Inc.(a) | 22,348 | 971,691 | ||||||
Total Diversified Financial Services | 2,965,235 | |||||||
Electronics — 3.9% | ||||||||
Agilent Technologies, Inc. | 16,752 | 958,047 | ||||||
Amphenol Corp., Class A | 11,084 | 988,471 | ||||||
Garmin Ltd. | 20,864 | 964,334 | ||||||
Mettler-Toledo International, Inc.* | 3,851 | 934,214 | ||||||
Total Electronics | 3,845,066 | |||||||
Food — 2.0% | ||||||||
General Mills, Inc. | 19,647 | 980,582 | ||||||
Sysco Corp. | 26,482 | 956,000 | ||||||
Total Food | 1,936,582 |
See accompanying Notes to Financial Statements.
97
ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Forest Products & Paper — 1.0% | ||||||||
Domtar Corp. | 10,457 | $ | 986,513 | |||||
Hand/Machine Tools — 1.0% | ||||||||
Lincoln Electric Holdings, Inc. | 13,188 | 940,832 | ||||||
Healthcare – Products — 4.9% | ||||||||
C.R. Bard, Inc. | 7,141 | 956,466 | ||||||
CareFusion Corp.* | 24,348 | 969,537 | ||||||
Henry Schein, Inc.* | 8,440 | 964,354 | ||||||
Medtronic, Inc. | 16,732 | 960,249 | ||||||
Varian Medical Systems, Inc.* | 12,243 | 951,159 | ||||||
Total Healthcare - Products | 4,801,765 | |||||||
Healthcare – Services — 1.0% | ||||||||
UnitedHealth Group, Inc. | 13,104 | 986,731 | ||||||
Household Products/Wares — 1.0% | ||||||||
Clorox Co. (The) | 10,140 | 940,586 | ||||||
Insurance — 6.0% | ||||||||
Allstate Corp. (The) | 18,087 | 986,465 | ||||||
Aspen Insurance Holdings Ltd. (Bermuda) | 23,496 | 970,620 | ||||||
Axis Capital Holdings Ltd. (Bermuda) | 20,653 | 982,463 | ||||||
Everest Re Group Ltd. (Bermuda) | 6,385 | 995,230 | ||||||
MBIA, Inc.* | 84,972 | 1,014,565 | ||||||
Progressive Corp. (The) | 36,055 | 983,220 | ||||||
Total Insurance | 5,932,563 | |||||||
Internet — 3.0% | ||||||||
Expedia, Inc. | 14,345 | 999,273 | ||||||
Liberty Interactive Corp., Class A* | 33,647 | 987,540 | ||||||
Symantec Corp. | 41,292 | 973,665 | ||||||
Total Internet | 2,960,478 | |||||||
Leisure Time — 1.0% | ||||||||
Harley-Davidson, Inc. | 14,112 | 977,115 |
See accompanying Notes to Financial Statements.
98
ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Lodging — 4.0% | ||||||||
Las Vegas Sands Corp. | 12,356 | $ | 974,518 | |||||
Marriott International, Inc., Class A | 19,998 | 987,101 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 12,230 | 971,674 | ||||||
Wynn Resorts Ltd. | 5,230 | 1,015,718 | ||||||
Total Lodging | 3,949,011 | |||||||
Machinery – Construction & Mining — 2.1% | ||||||||
Caterpillar, Inc. | 10,848 | 985,107 | ||||||
Joy Global, Inc. | 17,696 | 1,035,039 | ||||||
Total Machinery – Construction & Mining | 2,020,146 | |||||||
Machinery – Diversified — 2.0% | ||||||||
IDEX Corp. | 13,272 | 980,137 | ||||||
Rockwell Automation, Inc. | 8,447 | 998,098 | ||||||
Total Machinery – Diversified | 1,978,235 | |||||||
Media — 6.0% | ||||||||
CBS Corp., Class B | 15,768 | 1,005,052 | ||||||
DIRECTV* | 14,452 | 998,489 | ||||||
Sirius XM Holdings, Inc.* | 275,402 | 961,153 | ||||||
Time Warner Cable, Inc. | 7,116 | 964,218 | ||||||
Time Warner, Inc. | 14,076 | 981,379 | ||||||
Viacom, Inc., Class B | 11,442 | 999,344 | ||||||
Total Media | 5,909,635 | |||||||
Miscellaneous Manufacturing — 4.0% | ||||||||
Illinois Tool Works, Inc. | 11,814 | 993,321 | ||||||
Ingersoll-Rand PLC (Ireland) | 16,212 | 998,659 | ||||||
Leggett & Platt, Inc. | 31,533 | 975,631 | ||||||
Pentair Ltd. (Switzerland) | 12,941 | 1,005,128 | ||||||
Total Miscellaneous Manufacturing | 3,972,739 | |||||||
Oil & Gas — 3.1% | ||||||||
Marathon Petroleum Corp. | 11,199 | 1,027,285 | ||||||
Patterson-UTI Energy, Inc. | 38,085 | 964,312 | ||||||
Phillips 66 | 13,048 | 1,006,392 | ||||||
Total Oil & Gas | 2,997,989 |
See accompanying Notes to Financial Statements.
99
ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Pharmaceuticals — 5.0% | ||||||||
Allergan, Inc. | 9,461 | $ | 1,050,928 | |||||
Herbalife Ltd.(a) | 12,523 | 985,560 | ||||||
Mead Johnson Nutrition Co. | 11,441 | 958,298 | ||||||
Merck & Co., Inc. | 19,572 | 979,579 | ||||||
Pfizer, Inc. | 31,062 | 951,429 | ||||||
Total Pharmaceuticals | 4,925,794 | |||||||
Retail — 6.9% | ||||||||
AutoZone, Inc.* | 2,025 | 967,828 | ||||||
Bed Bath & Beyond, Inc.* | 12,175 | 977,653 | ||||||
Coach, Inc. | 17,384 | 975,764 | ||||||
Home Depot, Inc. (The) | 11,936 | 982,810 | ||||||
Lowe's Cos., Inc. | 19,780 | 980,099 | ||||||
O'Reilly Automotive, Inc.* | 7,384 | 950,395 | ||||||
Ross Stores, Inc. | 13,029 | 976,263 | ||||||
Total Retail | 6,810,812 | |||||||
Semiconductors — 3.9% | ||||||||
Broadcom Corp., Class A | 33,526 | 994,046 | ||||||
Maxim Integrated Products, Inc. | 33,649 | 939,144 | ||||||
QUALCOMM, Inc. | 13,056 | 969,408 | ||||||
Texas Instruments, Inc. | 22,130 | 971,728 | ||||||
Total Semiconductors | 3,874,326 | |||||||
Software — 5.1% | ||||||||
Citrix Systems, Inc.* | 16,440 | 1,039,830 | ||||||
Fiserv, Inc.* | 16,692 | 985,663 | ||||||
MSCI, Inc., Class A* | 21,852 | 955,369 | ||||||
Nuance Communications, Inc.* | 64,459 | 979,777 | ||||||
Oracle Corp. | 27,178 | 1,039,830 | ||||||
Total Software | 5,000,469 | |||||||
Telecommunications — 2.0% | ||||||||
Corning, Inc. | 56,004 | 997,991 | ||||||
Harris Corp. | 14,224 | 992,978 | ||||||
Total Telecommunications | 1,990,969 |
See accompanying Notes to Financial Statements.
100
ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Transportation — 1.0% | ||||||||
Expeditors International of Washington, Inc. | 22,177 | $ | 981,332 | |||||
Total Common Stocks (Cost $92,185,407) | 98,188,448 | |||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 1.5% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(b) (Cost $1,455,433) | 1,455,433 | 1,455,433 | ||||||
Total Investments — 101.6% (Cost $93,640,840) | 99,643,881 | |||||||
Liabilities in Excess of Other Assets — (1.6)% | (1,541,040 | ) | ||||||
Net Assets — 100.0% | $ | 98,102,841 |
* | Non-income producing security |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,438,340; the aggregate market value of the collateral held by the fund is $1,471,330. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $15,897. |
(b) | Rate shown reflects the 1-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
101
ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Aerospace/Defense | 2.0 | % | ||
Agriculture | 2.0 | |||
Airlines | 2.0 | |||
Auto Manufacturers | 1.0 | |||
Auto Parts & Equipment | 1.0 | |||
Banks | 1.0 | |||
Beverages | 1.0 | |||
Biotechnology | 1.0 | |||
Chemicals | 4.0 | |||
Commercial Services | 5.1 | |||
Computers | 5.1 | |||
Cosmetics/Personal Care | 1.0 | |||
Distribution/Wholesale | 1.0 | |||
Diversified Financial Services | 3.0 | |||
Electronics | 3.9 | |||
Food | 2.0 | |||
Forest Products & Paper | 1.0 | |||
Hand/Machine Tools | 1.0 | |||
Healthcare – Products | 4.9 | |||
Healthcare – Services | 1.0 | |||
Household Products/Wares | 1.0 | |||
Insurance | 6.0 | |||
Internet | 3.0 | |||
Leisure Time | 1.0 | |||
Lodging | 4.0 | |||
Machinery – Construction & Mining | 2.1 | |||
Machinery – Diversified | 2.0 | |||
Media | 6.0 | |||
Miscellaneous Manufacturing | 4.0 | |||
Oil & Gas | 3.1 | |||
Pharmaceuticals | 5.0 | |||
Retail | 6.9 | |||
Semiconductors | 3.9 | |||
Software | 5.1 | |||
Telecommunications | 2.0 | |||
Transportation | 1.0 | |||
Money Market Fund | 1.5 | |||
Total Investments | 101.6 | |||
Liabilities in Excess of Other Assets | (1.6 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
102
ADVISORSHARES
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 97.5% | ||||||||
Apparel — 2.1% | ||||||||
LVMH Moet Hennessy Louis Vuitton SA (France)(a) | 5,919 | $ | 216,635 | |||||
Beverages — 3.7% | ||||||||
Coca-Cola Enterprises, Inc. | 8,616 | 380,224 | ||||||
Chemicals — 3.4% | ||||||||
Novozymes A/S (Denmark)(a)(b) | 8,342 | 352,533 | ||||||
Commercial Services — 3.8% | ||||||||
SGS SA (Switzerland)(a)(b) | 17,177 | 394,556 | ||||||
Diversified Financial Services — 4.0% | ||||||||
Lazard Ltd., Class A (Bermuda) | 9,132 | 413,862 | ||||||
Electronics — 3.0% | ||||||||
Sensata Technologies Holding N.V. (Netherlands)* | 7,914 | 306,826 | ||||||
Food — 10.4% | ||||||||
BRF SA (Brazil)(a) | 13,884 | 289,759 | ||||||
Jeronimo Martins, SGPS, SA (Portugal)(a)(b) | 4,766 | 186,732 | ||||||
Nestle SA (Switzerland)(a) | 5,365 | 394,811 | ||||||
Shoprite Holdings Ltd. (South Africa)*(a) | 12,859 | 202,529 | ||||||
Total Food | 1,073,831 | |||||||
Forest Products & Paper — 3.6% | ||||||||
Svenska Cellulosa AB (Sweden)(a)(b) | 12,195 | 376,582 | ||||||
Healthcare – Products — 5.7% | ||||||||
Covidien PLC (Ireland) | 5,625 | 383,063 | ||||||
Sysmex Corp. (Japan)(a)(b) | 7,002 | 207,861 | ||||||
Total Healthcare – Products | 590,924 | |||||||
Insurance — 4.4% | ||||||||
ACE Ltd. (Switzerland) | 4,368 | 452,219 |
See accompanying Notes to Financial Statements.
103
ADVISORSHARES
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Internet — 9.3% | ||||||||
ASOS PLC (United Kingdom)*(a)(b) | 3,114 | $ | 326,970 | |||||
MercadoLibre, Inc. (Argentina) | 1,852 | 199,627 | ||||||
Tencent Holdings Ltd. (China)(a) | 6,744 | 434,449 | ||||||
Total Internet | 961,046 | |||||||
Machinery – Diversified — 3.3% | ||||||||
FANUC Corp. (Japan)(a) | 11,143 | 342,201 | ||||||
Oil & Gas Services — 3.4% | ||||||||
Core Laboratories N.V. (Netherlands) | 1,840 | 351,348 | ||||||
Pharmaceuticals — 7.9% | ||||||||
NOVO Nordisk A/S (Denmark)(a) | 2,271 | 419,590 | ||||||
Perrigo Co. PLC | 2,551 | 391,476 | ||||||
Total Pharmaceuticals | 811,066 | |||||||
Retail — 9.0% | ||||||||
Inditex SA (Spain)(a)(b) | 11,995 | 396,075 | ||||||
Sun Art Retail Group Ltd. (China)*(a)(b) | 22,449 | 320,796 | ||||||
Wal-Mart de Mexico SAB de CV (Mexico)(a) | 8,133 | 212,434 | ||||||
Total Retail | 929,305 | |||||||
Semiconductors — 11.7% | ||||||||
Arm Holdings PLC (United Kingdom)(a)(b) | 5,445 | 298,059 | ||||||
ASML Holding N.V. (Netherlands)(c) | 4,508 | 422,400 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)(a) | 27,889 | 486,384 | ||||||
Total Semiconductors | 1,206,843 | |||||||
Transportation — 8.8% | ||||||||
Canadian National Railway Co. (Canada) | 7,725 | 440,479 | ||||||
Canadian Pacific Railway Ltd. (Canada) | 3,125 | 472,875 | ||||||
Total Transportation | 913,354 | |||||||
Total Common Stocks (Cost $8,349,805) | 10,073,355 |
See accompanying Notes to Financial Statements.
104
ADVISORSHARES
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 2.7% | ||||||||
Invesco Government & Agency Portfolio — Private Investment Class, 0.03%(d) (Cost $280,769) | 280,769 | $ | 280,769 | |||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 14.4% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.09%(e) (Cost $1,491,400) | 1,491,400 | 1,491,400 | ||||||
Total Investments — 114.6% (Cost $10,121,974) | 11,845,524 | |||||||
Liabilities in Excess of Other Assets — (14.6)% | (1,506,970 | ) | ||||||
Net Assets — 100.0% | $ | 10,338,554 |
PLC — Public Limited Company
* | Non-income producing security |
(a) | American Depositary Receipt |
(b) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,449,846; the aggregate market value of the collateral held by the fund is $1,491,400. |
(c) | Registered Shares |
(d) | Rate shown reflects the 7-day yield as of December 31, 2013. |
(e) | Rate shown reflects the 1-day yield as of December 31, 2013. |
See accompanying Notes to Financial Statements.
105
ADVISORSHARES
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
December 31, 2013 (Unaudited)
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Apparel | 2.1 | % | ||
Beverages | 3.7 | |||
Chemicals | 3.4 | |||
Commercial Services | 3.8 | |||
Diversified Financial Services | 4.0 | |||
Electronics | 3.0 | |||
Food | 10.4 | |||
Forest Products & Paper | 3.6 | |||
Healthcare – Products | 5.7 | |||
Insurance | 4.4 | |||
Internet | 9.3 | |||
Machinery – Diversified | 3.3 | |||
Oil & Gas Services | 3.4 | |||
Pharmaceuticals | 7.9 | |||
Retail | 9.0 | |||
Semiconductors | 11.7 | |||
Transportation | 8.8 | |||
Money Market Fund | 17.1 | |||
Total Investments | 114.6 | |||
Liabilities in Excess of Other Assets | (14.6 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
106
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ADVISORSHARES TRUST
Statement of Assets and Liabilities
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Accuvest Global Opportunities ETF | AdvisorShares Athena International Bear ETF | ||||||||||
ASSETS | ||||||||||||
Investments, at cost: | $ | 40,282,023 | $ | 23,343,159 | $ | 1,475,113 | ||||||
Investments in Affiliates, at Cost (Note 8) | — | — | — | |||||||||
Investments, at Market Value (including securities on loan): (Note 2)(a) | 43,326,056 | 24,893,545 | 1,475,113 | |||||||||
Investments in Affiliates, at Market Value (Note 8) | — | — | — | |||||||||
Cash | 14,345 | — | 2,510,493 | |||||||||
Cash collateral held at brokers | 663,518 | — | — | |||||||||
Receivable from Securities Sold | — | — | — | |||||||||
Unrealized Appreciation on Swaps Contracts | 208,820 | — | — | |||||||||
Capital Shares Receivable | — | — | — | |||||||||
Dividends and Interest Receivable | 6 | 54,757 | 4 | |||||||||
Reclaim Receivable | — | — | — | |||||||||
Due from Investment Advisor | — | — | 23,962 | |||||||||
Prepaid Trustee Fees | — | — | 64 | |||||||||
Prepaid Expenses | 1,298 | 774 | 255 | |||||||||
Total Assets | 44,214,043 | 24,949,076 | 4,009,891 | |||||||||
LIABILITIES | ||||||||||||
Due to Custodian | — | — | — | |||||||||
Cash collateral for securities on loan | — | 3,342,825 | — | |||||||||
Securities Sold, Not Yet Purchased(b) | — | — | 804,845 | |||||||||
Unrealized Depreciation on Swaps Contracts | 664,217 | — | — | |||||||||
Advisory Payable | 48,775 | 11,673 | — | |||||||||
Payable for Securities Purchased | — | — | 923,054 | |||||||||
Capital Shares Payable | — | — | 1,137,157 | |||||||||
Dividend Payable on Securities Sold, Not Yet Purchased | — | — | 1,115 | |||||||||
Distribution Payable | — | 154,898 | — | |||||||||
Trustee Fees Payable | 175 | 175 | — | |||||||||
Interest Payable | 168,738 | — | — | |||||||||
Payable to Global Echo Foundation | — | — | — | |||||||||
Accrued Expenses | 28,757 | 28,499 | 15,465 | |||||||||
Total Liabilities | 910,662 | 3,538,070 | 2,881,636 | |||||||||
NET ASSETS | $ | 43,303,381 | $ | 21,411,006 | $ | 1,128,255 | ||||||
COMPONENTS OF NET ASSETS | ||||||||||||
Capital Stock at Zero Par Value | $ | 49,159,864 | $ | 21,995,964 | $ | 1,362,843 | ||||||
Undistributed Net Investment Income (Loss) | (242,504 | ) | (72,356 | ) | (45,996 | ) | ||||||
Accumulated Net Gain (Loss) on Investments, options written and swap transactions | (8,202,615 | ) | (2,062,988 | ) | (152,310 | ) | ||||||
Unrealized Appreciation (Depreciation) on Investments options written and swaps | 2,588,636 | 1,550,386 | (36,282 | ) | ||||||||
NET ASSETS | $ | 43,303,381 | $ | 21,411,006 | $ | 1,128,255 | ||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 1,950,000 | 750,000 | 50,000 | |||||||||
Net Asset Value (NAV) Per Share | $ | 22.21 | $ | 28.55 | $ | 22.57 | ||||||
(a) Market value of securities on loan | $ | — | $ | 3,259,243 | $ | — | ||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | 768,563 |
See accompanying Notes to Financial Statements.
108
ADVISORSHARES TRUST
Statement of Assets and Liabilities (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
AdvisorShares Cambria Global Tactical ETF | AdvisorShares EquityPro ETF | AdvisorShares Global Echo ETF | AdvisorShares Madrona Domestic ETF | AdvisorShares Madrona Global Bond ETF | AdvisorShares Madrona International ETF | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at cost: | $ | 48,132,833 | $ | 17,937,149 | $ | 5,597,692 | $ | 16,883,959 | $ | 26,445,017 | $ | 20,442,213 | ||||||||||||
Investments in Affiliates, at Cost (Note 8) | — | — | 17,763 | — | 2,552,801 | — | ||||||||||||||||||
Investments, at Market Value (including securities on loan): (Note 2)(a) | 51,346,764 | 18,290,075 | 6,375,173 | 22,247,787 | 26,062,502 | 22,502,841 | ||||||||||||||||||
Investments in Affiliates, at Market Value (Note 8) | — | — | 16,588 | — | 2,629,652 | — | ||||||||||||||||||
Cash | 26,972 | — | 53,229 | — | — | — | ||||||||||||||||||
Cash collateral held at brokers | — | — | — | — | — | — | ||||||||||||||||||
Receivable from Securities Sold | — | — | 39,393 | — | — | — | ||||||||||||||||||
Unrealized Appreciation on Swaps Contracts | — | — | — | — | — | — | ||||||||||||||||||
Capital Shares Receivable | — | 3,763,180 | — | — | — | — | ||||||||||||||||||
Dividends and Interest Receivable | 65,627 | 362 | 11,102 | 21,462 | 27,137 | 17,723 | ||||||||||||||||||
Reclaim Receivable | — | 504 | 213 | — | — | 10,398 | ||||||||||||||||||
Due from Investment Advisor | — | — | — | — | — | — | ||||||||||||||||||
Prepaid Trustee Fees | — | — | — | — | — | — | ||||||||||||||||||
Prepaid Expenses | 4,362 | 282 | — | 4,346 | 1,849 | 1,288 | ||||||||||||||||||
Total Assets | 51,443,725 | 22,054,403 | 6,495,698 | 22,273,595 | 28,721,140 | 22,532,250 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Due to Custodian | — | — | — | — | 764 | 32,216 | ||||||||||||||||||
Cash collateral for securities on loan | 6,305,550 | 855,075 | 327,399 | 189,656 | 6,707,087 | 3,986,977 | ||||||||||||||||||
Securities Sold, Not Yet Purchased (b) | — | — | — | — | — | — | ||||||||||||||||||
Unrealized Depreciation on Swaps Contracts | — | — | — | — | — | — | ||||||||||||||||||
Advisory Payable | 31,502 | 2,619 | 5,555 | 12,171 | 6,993 | 7,654 | ||||||||||||||||||
Payable for Securities Purchased | 273,135 | 3,675,192 | 104,221 | — | — | — | ||||||||||||||||||
Capital Shares Payable | — | — | 595 | — | — | — | ||||||||||||||||||
Dividend Payable on Securities Sold, Not Yet Purchased | — | — | — | — | — | — | ||||||||||||||||||
Distribution Payable | — | 154,670 | — | — | — | — | ||||||||||||||||||
Trustee Fees Payable | 175 | 175 | — | 175 | 175 | 175 | ||||||||||||||||||
Interest Payable | — | — | — | — | — | — | ||||||||||||||||||
Payable to Global Echo Foundation | — | — | 2,020 | — | — | — | ||||||||||||||||||
Accrued Expenses | 40,069 | 11,605 | — | 24,910 | 27,702 | 25,202 | ||||||||||||||||||
Total Liabilities | 6,650,431 | 4,699,336 | 439,790 | 226,912 | 6,742,721 | 4,052,224 | ||||||||||||||||||
NET ASSETS | $ | 44,793,294 | $ | 17,355,067 | $ | 6,055,908 | $ | 22,046,683 | $ | 21,978,419 | $ | 18,480,026 | ||||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 61,830,311 | $ | 16,817,129 | $ | 5,336,286 | $ | 17,007,993 | $ | 22,412,990 | $ | 18,226,947 | ||||||||||||
Undistributed Net Investment Income (Loss) | 91,546 | (44,296 | ) | (9,674 | ) | 1,821 | (13,733 | ) | (67,738 | ) | ||||||||||||||
Accumulated Net Gain (Loss) on Investments, options written and swap transactions | (20,342,494 | ) | 229,308 | (47,010 | ) | (326,959 | ) | (115,174 | ) | (1,739,811 | ) | |||||||||||||
Unrealized Appreciation (Depreciation) on Investments options written and swaps | 3,213,931 | 352,926 | 776,306 | 5,363,828 | (305,664 | ) | 2,060,628 | |||||||||||||||||
NET ASSETS | $ | 44,793,294 | $ | 17,355,067 | $ | 6,055,908 | $ | 22,046,683 | $ | 21,978,419 | $ | 18,480,026 | ||||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 1,800,000 | 575,000 | 100,000 | 575,000 | 875,000 | 650,000 | ||||||||||||||||||
Net Asset Value (NAV) Per Share | $ | 24.89 | $ | 30.18 | $ | 60.56 | $ | 38.34 | $ | 25.12 | $ | 28.43 | ||||||||||||
(a) Market value of securities on loan | $ | 6,135,171 | $ | 837,234 | $ | 318,158 | $ | 207,667 | $ | 6,545,589 | $ | 3,903,462 | ||||||||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements.
109
ADVISORSHARES TRUST
Statement of Assets and Liabilities (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Meidell Tactical Advantage ETF | AdvisorShares Newfleet Multi-Sector Income ETF | AdvisorShares Peritus High Yield ETF | ||||||||||
ASSETS | ||||||||||||
Investments, at cost: | $ | 19,839,785 | $ | 100,049,424 | $ | 518,271,398 | ||||||
Investments in Affiliates, at Cost (Note 8) | — | — | — | |||||||||
Investments, at Market Value (including securities on loan): (Note 2)(a) | 19,860,632 | 99,338,656 | 523,565,943 | |||||||||
Investments in Affiliates, at Market Value (Note 8) | — | — | — | |||||||||
Cash | — | 347,083 | 547,981 | |||||||||
Cash collateral held at brokers | — | — | — | |||||||||
Receivable from Securities Sold | 14,210,565 | 144,000 | — | |||||||||
Capital Shares Receivable | 14,221,344 | — | — | |||||||||
Dividends and Interest Receivable | 1,183 | 614,191 | 8,620,741 | |||||||||
Reclaim Receivable | — | — | — | |||||||||
Due from Investment Advisor | — | — | — | |||||||||
Prepaid Expenses | 1,172 | 33,600 | 41,360 | |||||||||
Total Assets | 48,294,896 | 100,477,530 | 532,776,025 | |||||||||
LIABILITIES | ||||||||||||
Due to Custodian | — | — | — | |||||||||
Cash collateral for securities on loan | 4,095,324 | 1,133,630 | 59,608,290 | |||||||||
Securities Sold, Not Yet Purchased(b) | — | — | — | |||||||||
Options Written, at Value(c) | — | — | — | |||||||||
Advisory Payable | 6,712 | 47,004 | 426,153 | |||||||||
Payable for Securities Purchased | 14,227,033 | 457,043 | 12,654,231 | |||||||||
Capital Shares Payable | 14,221,344 | — | — | |||||||||
Dividend Payable on Securities Sold, Not Yet Purchased | — | — | — | |||||||||
Distribution Payable | — | — | — | |||||||||
Trustee Fees Payable | 175 | 175 | 175 | |||||||||
Interest Payable | — | — | — | |||||||||
Accrued Expenses | 25,980 | 16,264 | 23,509 | |||||||||
Total Liabilities | 32,576,568 | 1,654,116 | 72,712,358 | |||||||||
NET ASSETS | $ | 15,718,328 | $ | 98,823,414 | $ | 460,063,667 | ||||||
COMPONENTS OF NET ASSETS | ||||||||||||
Capital Stock at Zero Par Value | $ | 15,505,805 | $ | 99,856,303 | $ | 453,102,605 | ||||||
Undistributed Net Investment Income (Loss) | 25,755 | (145,946 | ) | (141,466 | ) | |||||||
Accumulated Net Gain (Loss) on Investments, options written and swap transactions | 165,921 | (176,175 | ) | 1,807,983 | ||||||||
Unrealized Appreciation (Depreciation) on Investments options written and swaps | 20,847 | (710,768 | ) | 5,294,545 | ||||||||
NET ASSETS | $ | 15,718,328 | $ | 98,823,414 | $ | 460,063,667 | ||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 525,000 | 2,000,000 | 8,900,000 | |||||||||
Net Asset Value (NAV) Per Share | $ | 29.94 | $ | 49.41 | $ | 51.69 | ||||||
(a) Market value of securities on loan | $ | 4,010,629 | $ | 1,105,478 | $ | 58,140,108 | ||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | — | ||||||
(c) Premiums Received for Options Written | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements.
110
ADVISORSHARES TRUST
Statement of Assets and Liabilities (continued)
December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
AdvisorShares Pring Turner Business Cycle ETF | AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF | AdvisorShares STAR Global Buy-Write ETF | AdvisorShares TrimTabs Float Shrink ETF | AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at cost: | $ | 5,325,054 | $ | 6,781,832 | $ | 7,500,000 | $ | 21,333,130 | $ | 93,640,840 | $ | 10,121,974 | ||||||||||||
Investments in Affiliates, at Cost (Note 8) | 258,188 | — | — | — | — | — | ||||||||||||||||||
Investments, at Market Value (including securities on loan): (Note 2)(a) | 5,432,506 | 7,269,267 | 7,500,000 | 22,119,772 | 99,643,881 | 11,845,524 | ||||||||||||||||||
Investments in Affiliates, at Market Value (Note 8) | 259,790 | — | — | — | — | — | ||||||||||||||||||
Cash | 331 | 22 | 126,210,500 | 3,016,750 | — | 756 | ||||||||||||||||||
Cash collateral held at brokers | — | 427,440 | 130,039,600 | — | — | — | ||||||||||||||||||
Receivable from Securities Sold | 76,203 | 66,053 | 7,349,212 | — | — | — | ||||||||||||||||||
Capital Shares Receivable | — | — | 961,882 | — | 1,211,146 | — | ||||||||||||||||||
Dividends and Interest Receivable | 6,098 | 2,736 | 311 | 42,180 | 94,929 | 2,829 | ||||||||||||||||||
Reclaim Receivable | 379 | — | — | — | — | 12,436 | ||||||||||||||||||
Due from Investment Advisor | 574 | — | — | — | — | — | ||||||||||||||||||
Prepaid Expenses | 2,029 | 358 | 17,895 | 2,448 | 6,384 | 833 | ||||||||||||||||||
Total Assets | 5,777,910 | 7,765,876 | 272,079,400 | 25,181,150 | 100,956,340 | 11,862,378 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Due to Custodian | — | — | — | — | 93,381 | — | ||||||||||||||||||
Cash collateral for securities on loan | 474,323 | — | — | — | 1,455,433 | 1,491,400 | ||||||||||||||||||
Securities Sold, Not Yet Purchased (b) | — | 428,711 | 128,728,064 | — | — | — | ||||||||||||||||||
Options Written, at Value | — | — | — | 137,465 | — | — | ||||||||||||||||||
Advisory Payable | — | 164 | 181,180 | 28,314 | 64,554 | 1,354 | ||||||||||||||||||
Payable for Securities Purchased | — | 195,751 | 9,010,258 | — | 1,212,167 | — | ||||||||||||||||||
Capital Shares Payable | — | — | 3,192,218 | — | — | — | ||||||||||||||||||
Dividend Payable on Securities Sold, Not Yet Purchased | — | — | 1,223 | — | — | — | ||||||||||||||||||
Distribution Payable | — | 119,153 | — | — | — | — | ||||||||||||||||||
Trustee Fees Payable | 175 | 175 | 175 | 175 | 175 | 175 | ||||||||||||||||||
Interest Payable | — | — | 35,637 | — | — | — | ||||||||||||||||||
Accrued Expenses | 22,189 | 23,223 | 49,700 | 31,043 | 27,789 | 30,895 | ||||||||||||||||||
Total Liabilities | 496,687 | 767,177 | 141,198,455 | 196,997 | 2,853,499 | 1,523,824 | ||||||||||||||||||
NET ASSETS | $ | 5,281,223 | $ | 6,998,699 | $ | 130,880,945 | $ | 24,984,153 | $ | 98,102,841 | $ | 10,338,554 | ||||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 5,084,411 | $ | 6,531,400 | $ | 284,692,534 | $ | 24,782,545 | $ | 87,374,470 | $ | 8,689,125 | ||||||||||||
Undistributed Net Investment Income (Loss) | (737 | ) | (112,779 | ) | (5,664,862 | ) | (163,361 | ) | 5,782 | (4,841 | ) | |||||||||||||
Accumulated Net Gain (Loss) on Investments, options written and swap transactions | 88,495 | 86,120 | (134,481,283 | ) | (403,587 | ) | 4,719,548 | (69,280 | ) | |||||||||||||||
Unrealized Appreciation (Depreciation) on Investments options written and swaps | 109,054 | 493,958 | (13,665,444 | ) | 768,556 | 6,003,041 | 1,723,550 | |||||||||||||||||
NET ASSETS | $ | 5,281,223 | $ | 6,998,699 | $ | 130,880,945 | $ | 24,984,153 | $ | 98,102,841 | $ | 10,338,554 | ||||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 200,000 | 250,000 | 10,250,000 | 1,000,000 | 2,025,000 | 275,000 | ||||||||||||||||||
Net Asset Value (NAV) Per Share | $ | 26.41 | $ | 27.99 | $ | 12.77 | $ | 24.98 | $ | 48.45 | $ | 37.59 | ||||||||||||
(a) Market value of securities on loan | $ | 452,537 | $ | — | $ | — | $ | — | $ | 1,438,340 | $ | 1,449,846 | ||||||||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | 435,234 | $ | 115,062,620 | $ | — | $ | — | $ | — | ||||||||||||
(c) Premiums Received for Options Written | $ | — | $ | — | $ | — | $ | 119,379 | $ | — | $ | — | ||||||||||||
See accompanying Notes to Financial Statements.
111
ADVISORSHARES TRUST
Statements of Operations
For the Six Months Ended December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Accuvest Global Opportunities ETF | AdvisorShares Athena International Bear ETF(1) | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividend Income | $ | 272,359 | $ | 158,953 | $ | — | ||||||
Dividend Income from Affiliates | — | — | — | |||||||||
Interest Income | 26 | 2 | 123 | |||||||||
Securities lending income (Note 2) | — | 22,725 | — | |||||||||
Foreign withholding tax | — | — | 258 | |||||||||
Total Investment Income | 272,385 | 181,680 | 381 | |||||||||
EXPENSES: | ||||||||||||
Advisory Fees | 296,020 | 92,951 | 14,571 | |||||||||
Interest on Securities Sold Short | 87,455 | — | 7,767 | |||||||||
Professional Fees | 13,933 | 13,913 | 26,800 | |||||||||
Accounting & Administration Fees | 27,453 | 33,084 | 5,902 | |||||||||
Exchange Listing Fees | 3,808 | 3,809 | 8,327 | |||||||||
Report to Shareholders | 2,908 | 2,495 | 4,953 | |||||||||
Pricing Fees | 4,062 | 2,535 | 3,440 | |||||||||
Trustee Fees | 1,315 | 1,313 | 1,304 | |||||||||
Custody Fees | 2,037 | 816 | 1,325 | |||||||||
Transfer Agent Fees | 1,484 | 704 | 560 | |||||||||
Insurance Fees | 904 | 366 | 373 | |||||||||
Dividend Expense | — | — | 22,420 | |||||||||
Contribution to Global Echo Foundation | — | — | — | |||||||||
Registration Fees | 778 | 220 | 104 | |||||||||
Miscellaneous Fees | 2,577 | 1,901 | 1,429 | |||||||||
Total Expenses | 444,734 | 154,107 | 99,275 | |||||||||
Advisory Fees Waived/Recoupment | (28,368 | ) | (31,803 | ) | (14,571 | ) | ||||||
Expense Reimbursement | — | — | (38,327 | ) | ||||||||
Net Expenses | 416,366 | 122,304 | 46,377 | |||||||||
Net Investment Income (Loss) | (143,981 | ) | 59,376 | (45,996 | ) | |||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN, SHORT SALES AND SWAP TRANSACTIONS: | ||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||
Investments | (2,382,880 | ) | (908,860 | ) | — | |||||||
Investments in Affiliates | — | — | — | |||||||||
In-Kind Redemptions | 2,670,778 | 711,244 | — | |||||||||
In-Kind Redemptions in Affiliates | — | — | — | |||||||||
Swaps | (1,573,144 | ) | — | — | ||||||||
Short Sales | 551,476 | — | (152,310 | ) | ||||||||
Distributions by other Investments Companies | — | — | — | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
Investments | 3,945,526 | 1,775,857 | — | |||||||||
Short Sales | (1,132,861 | ) | — | (36,282 | ) | |||||||
Swaps | (1,198,812 | ) | — | — | ||||||||
Net Realized and Unrealized Gain (Loss) | 880,083 | 1,578,241 | (188,592 | ) | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 736,102 | $ | 1,637,617 | $ | (234,588 | ) |
(1) | Represents the period July 18, 2013 (commencement of operations) to December 31, 2013. |
See accompanying Notes to Financial Statements.
112
ADVISORSHARES TRUST
Statements of Operations (continued)
For the Six Months Ended December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
AdvisorShares Cambria Global Tactical ETF | AdvisorShares EquityPro ETF | AdvisorShares Global Echo ETF | AdvisorShares Madrona Domestic ETF | AdvisorShares Madrona Global Bond ETF | AdvisorShares Madrona International ETF | |||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||
Dividend Income | $ | 466,544 | $ | 122,070 | $ | 21,051 | $ | 160,802 | $ | 362,989 | $ | 140,472 | ||||||||||||
Dividend Income from Affiliates | — | — | — | — | 100,335 | — | ||||||||||||||||||
Interest Income | 444 | 7 | 9,439 | 2 | — | 4 | ||||||||||||||||||
Securities lending income (Note 2) | 68,133 | 1,065 | 3,656 | 336 | 37,088 | 16,747 | ||||||||||||||||||
Foreign withholding tax | — | 117 | (404 | ) | — | — | (9,776 | ) | ||||||||||||||||
Total Investment Income | 535,121 | 123,259 | 33,742 | 161,140 | 500,412 | 147,447 | ||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||
Advisory Fees | 216,710 | 12,874 | 31,839 | 81,975 | 55,658 | 68,988 | ||||||||||||||||||
Interest on Securities Sold Short | — | — | — | — | — | — | ||||||||||||||||||
Professional Fees | 13,913 | 14,186 | — | 13,845 | 13,938 | 13,937 | ||||||||||||||||||
Accounting & Administration Fees | 38,319 | 23,665 | — | 38,789 | 37,848 | 38,505 | ||||||||||||||||||
Exchange Listing Fees | 3,808 | 3,808 | — | 5,335 | 3,808 | 3,808 | ||||||||||||||||||
Report to Shareholders | 11,088 | 2,345 | — | 3,216 | 3,262 | 2,828 | ||||||||||||||||||
Pricing Fees | 2,535 | 2,535 | — | 2,535 | 2,535 | 2,535 | ||||||||||||||||||
Trustee Fees | 1,313 | 1,313 | — | 1,313 | 1,313 | 1,313 | ||||||||||||||||||
Custody Fees | 3,498 | 132 | — | 1,464 | 961 | 4,883 | ||||||||||||||||||
Transfer Agent Fees | 1,909 | 52 | — | 720 | 827 | 594 | ||||||||||||||||||
Insurance Fees | 2,490 | — | — | 631 | 735 | 662 | ||||||||||||||||||
Dividend Expense | — | — | — | — | — | — | ||||||||||||||||||
Contribution to Global Echo Foundation | — | — | 11,577 | — | — | — | ||||||||||||||||||
Registration Fees | — | 17 | — | — | 27 | — | ||||||||||||||||||
Miscellaneous Fees | 3,137 | 1,194 | — | 1,967 | 2,076 | 1,889 | ||||||||||||||||||
Total Expenses | 298,720 | 62,121 | 43,416 | 151,790 | 122,988 | 139,942 | ||||||||||||||||||
Advisory Fees Waived/Recoupment | 2,266 | (12,874 | ) | — | (23,704 | ) | (17,238 | ) | (32,149 | ) | ||||||||||||||
Expense Reimbursement | — | (31,010 | ) | — | — | — | — | |||||||||||||||||
Net Expenses | 300,986 | 18,237 | 43,416 | 128,086 | 105,750 | 107,793 | ||||||||||||||||||
Net Investment Income (Loss) | 234,135 | 105,022 | (9,674 | ) | 33,054 | 394,662 | 39,654 | |||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN, SHORT SALES AND SWAP TRANSACTIONS: | ||||||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||||||
Investments | (383,937 | ) | 234,133 | 42,375 | 331,553 | (56,701 | ) | 884,890 | ||||||||||||||||
Investments in Affiliates | — | — | (3,030 | ) | — | 2,151 | — | |||||||||||||||||
In-Kind Redemptions | 595,212 | 577 | — | 654,159 | 13,501 | — | ||||||||||||||||||
In-Kind Redemptions in Affiliates | — | (255 | ) | — | — | — | — | |||||||||||||||||
Swaps | — | — | — | — | — | — | ||||||||||||||||||
Short Sales | — | — | — | — | — | — | ||||||||||||||||||
Distributions by other Investments Companies | — | — | — | — | 8,913 | — | ||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||
Investments | 1,710,605 | 246,536 | 590,532 | 2,494,744 | 124,257 | 2,218,289 | ||||||||||||||||||
Short Sales | — | — | — | — | — | — | ||||||||||||||||||
Swaps | — | — | — | — | — | — | ||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 1,921,880 | 480,991 | 629,877 | 3,480,456 | 92,121 | 3,103,179 | ||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,156,015 | $ | 586,013 | $ | 620,203 | $ | 3,513,510 | $ | 486,783 | $ | 3,142,833 |
See accompanying Notes to Financial Statements.
113
ADVISORSHARES TRUST
Statements of Operations (continued)
For the Six Months Ended December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Meidell Tactical Advantage ETF | AdvisorShares Newfleet Multi-Sector Income ETF | AdvisorShares Peritus High Yield ETF | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividend Income | $ | 96,576 | $ | — | $ | 77,935 | ||||||
Dividend Income from Affiliates | — | — | — | |||||||||
Interest Income | — | 1,481,128 | 17,374,241 | |||||||||
Securities lending income (Note 2) | 6,311 | 7,283 | 173,491 | |||||||||
Foreign withholding tax | — | — | (11,818 | ) | ||||||||
Total Investment Income | 102,887 | 1,488,411 | 17,613,849 | |||||||||
EXPENSES: | ||||||||||||
Advisory Fees | 68,173 | 297,876 | 2,018,516 | |||||||||
Interest on Securities Sold Short | — | — | — | |||||||||
Professional Fees | 13,914 | 16,003 | 21,074 | |||||||||
Accounting & Administration Fees | 37,833 | 19,774 | 57,381 | |||||||||
Exchange Listing Fees | 3,525 | 3,781 | 3,808 | |||||||||
Report to Shareholders | 2,144 | 8,636 | 14,178 | |||||||||
Pricing Fees | 2,535 | 6,050 | 6,379 | |||||||||
Trustee Fees | 1,313 | 1,313 | 1,313 | |||||||||
Custody Fees | 804 | 6,907 | 11,528 | |||||||||
Transfer Agent Fees | 350 | 3,207 | 10,470 | |||||||||
Insurance Fees | 266 | 848 | 5,102 | |||||||||
Dividend Expense | — | — | — | |||||||||
Registration Fees | 135 | 3,790 | 8,707 | |||||||||
Licensing Fees | — | — | — | |||||||||
Miscellaneous Fees | 1,740 | 3,313 | 7,983 | |||||||||
Total Expenses | 132,732 | 371,498 | 2,166,439 | |||||||||
Advisory Fees Waived/Recoupment | (56,037 | ) | (27,794 | ) | — | |||||||
Expense Reimbursement | — | — | — | |||||||||
Net Expenses | 76,695 | 343,704 | 2,166,439 | |||||||||
Net Investment Income (Loss) | 26,192 | 1,144,707 | 15,447,410 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN, SHORT SALES AND SWAP TRANSACTIONS: | ||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||
Investments | 108,854 | (150,753 | ) | 1,855,269 | ||||||||
In-Kind Redemptions | 541,642 | — | — | |||||||||
In-Kind Redemptions in Affiliates | — | — | — | |||||||||
Swaps | — | — | — | |||||||||
Short Sales | — | — | — | |||||||||
Options Written | — | — | — | |||||||||
Distributions by other Investments Companies | — | — | — | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
Investments | 28,512 | 945,481 | 5,921,143 | |||||||||
Short Sales | — | — | — | |||||||||
Swaps | — | — | — | |||||||||
Options Written | — | — | — | |||||||||
Net Realized and Unrealized Gain (Loss) | 679,008 | 794,728 | 7,776,412 | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 705,200 | $ | 1,939,435 | $ | 23,223,822 |
See accompanying Notes to Financial Statements.
114
ADVISORSHARES TRUST
Statements of Operations (continued)
For the Six Months Ended December 31, 2013 (Unaudited)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
AdvisorShares Pring Turner Business Cycle ETF | AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF | AdvisorShares STAR Global Buy-Write ETF | AdvisorShares TrimTabs Float Shrink ETF | AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | |||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||
Dividend Income | $ | 56,195 | $ | 37,478 | $ | — | $ | 153,633 | $ | 615,877 | $ | 43,322 | ||||||||||||
Dividend Income from Affiliates | 11,385 | — | — | — | — | — | ||||||||||||||||||
Interest Income | 85 | 92 | 7,527 | 1,073 | 8 | 28 | ||||||||||||||||||
Securities lending income (Note 2) | 4,295 | — | — | — | 2,887 | 8,075 | ||||||||||||||||||
Foreign withholding tax | (1,265 | ) | — | — | — | — | (4,753 | ) | ||||||||||||||||
Total Investment Income | 70,695 | 37,570 | 7,527 | 154,706 | 618,772 | 46,672 | ||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||
Advisory Fees | 27,403 | 26,930 | 1,359,070 | 151,963 | 333,116 | 29,240 | ||||||||||||||||||
Interest on Securities Sold Short | — | — | 473,996 | — | — | — | ||||||||||||||||||
Professional Fees | 14,522 | 15,167 | 13,912 | 14,602 | 13,913 | 13,933 | ||||||||||||||||||
Accounting & Administration Fees | 15,793 | 22,137 | 43,086 | 20,472 | 35,562 | 20,695 | ||||||||||||||||||
Exchange Listing Fees | 3,814 | 3,808 | 3,826 | 3,808 | 3,809 | 3,808 | ||||||||||||||||||
Report to Shareholders | 2,391 | 2,103 | 34,638 | 2,595 | 2,142 | 2,221 | ||||||||||||||||||
Pricing Fees | 3,158 | 4,062 | 4,062 | 4,062 | 2,535 | 2,535 | ||||||||||||||||||
Trustee Fees | 1,313 | 1,313 | 1,313 | 1,313 | 1,313 | 1,313 | ||||||||||||||||||
Custody Fees | 362 | 1,743 | 8,052 | 8,172 | 2,823 | 429 | ||||||||||||||||||
Transfer Agent Fees | 213 | 150 | 7,909 | 798 | 1,640 | 304 | ||||||||||||||||||
Insurance Fees | — | — | 6,145 | 222 | 889 | 226 | ||||||||||||||||||
Dividend Expense | — | — | 629,489 | — | — | — | ||||||||||||||||||
Registration Fees | 197 | 52 | 669 | 527 | 2,204 | — | ||||||||||||||||||
Licensing Fees | — | — | — | — | — | 1,869 | ||||||||||||||||||
Miscellaneous Fees | 1,447 | 1,474 | 7,612 | 2,064 | 2,342 | 1,702 | ||||||||||||||||||
Total Expenses | 70,613 | 78,939 | 2,593,779 | 210,598 | 402,288 | 78,275 | ||||||||||||||||||
Advisory Fees Waived/Recoupment | (27,403 | ) | (26,930 | ) | — | (2,362 | ) | (69,172 | ) | (29,240 | ) | |||||||||||||
Expense Reimbursement | (2,380 | ) | (11,615 | ) | — | — | — | (301 | ) | |||||||||||||||
Net Expenses | 40,830 | 40,394 | 2,593,779 | 208,236 | 333,116 | 48,734 | ||||||||||||||||||
Net Investment Income (Loss) | 29,865 | (2,824 | ) | (2,586,252 | ) | (53,530 | ) | 285,656 | (2,062 | ) | ||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN, SHORT SALES AND SWAP TRANSACTIONS: | ||||||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||||||
Investments | (14,830 | ) | 123,496 | — | (447,981 | ) | (991,759 | ) | (254,737 | ) | ||||||||||||||
In-Kind Redemptions | 120,730 | — | — | 74,582 | 5,762,114 | 353,783 | ||||||||||||||||||
In-Kind Redemptions in Affiliates | 2,633 | — | — | — | — | — | ||||||||||||||||||
Swaps | — | 7,439 | — | — | — | — | ||||||||||||||||||
Short Sales | — | (5,398 | ) | (31,173,324 | ) | — | — | — | ||||||||||||||||
Options Written | — | — | — | 255,078 | — | — | ||||||||||||||||||
Distributions by other Investments Companies | 345 | — | — | — | — | — | ||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||
Investments | 137,109 | 293,130 | — | 1,353,689 | 5,592,876 | 1,013,579 | ||||||||||||||||||
Short Sales | — | 200 | (8,946,961 | ) | — | — | — | |||||||||||||||||
Swaps | — | 5,101 | — | — | — | — | ||||||||||||||||||
Options Written | — | — | — | 56,390 | — | — | ||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 245,987 | 423,968 | (40,120,285 | ) | 1,291,758 | 10,363,231 | 1,112,625 | |||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 275,852 | $ | 421,144 | $ | (42,706,537 | ) | $ | 1,238,228 | $ | 10,648,887 | $ | 1,110,563 |
See accompanying Notes to Financial Statements.
115
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Accuvest Global Opportunities ETF | |||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net Investment Income (Loss) | $ | (143,981 | ) | $ | (439,369 | ) | $ | 59,376 | $ | 74,807 | ||||||
Net Realized Gain (Loss) | (733,770 | ) | 504,090 | (197,616 | ) | 1,493,850 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 1,613,853 | 393,922 | 1,775,857 | (322,229 | ) | |||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 736,102 | 458,643 | 1,637,617 | 1,246,428 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||
Net Investment Income | — | — | (154,897 | ) | (185,454 | ) | ||||||||||
Net Realized Gains | — | — | — | — | ||||||||||||
Total Distributions | — | — | (154,897 | ) | (185,454 | ) | ||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Issued | 39,107,370 | 78,003,559 | 13,910,142 | 53,907,465 | ||||||||||||
Value of Shares Redeemed | (39,112,637 | ) | (53,911,620 | ) | (11,811,738 | ) | (50,580,810 | ) | ||||||||
Net Increase (Decrease) From Capital Stock Transactions | (5,267 | ) | 24,091,939 | 2,098,404 | 3,326,655 | |||||||||||
Net Increase (Decrease) in Net Assets | 730,835 | 24,550,582 | 3,581,124 | 4,387,629 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of Period | 42,572,546 | 18,021,964 | 17,829,882 | 13,442,253 | ||||||||||||
End of Period | $ | 43,303,381 | $ | 42,572,546 | $ | 21,411,006 | $ | 17,829,882 | ||||||||
Undistributed Net Investment Income (Loss) | $ | (242,504 | ) | $ | (98,523 | ) | $ | (72,356.00 | ) | $ | 23,165 | |||||
Changes in Shares Outstanding | ||||||||||||||||
Shares Outstanding, Beginning of Period | 1,950,000 | 850,000 | 675,000 | 550,000 | ||||||||||||
Shares Sold | 1,800,000 | 3,550,000 | 500,000 | 1,975,000 | ||||||||||||
Shares Repurchased | (1,800,000 | ) | (2,450,000 | ) | (425,000 | ) | (1,850,000 | ) | ||||||||
End of Period | 1,950,000 | 1,950,000 | 750,000 | 675,000 |
* | Commencement of operations. |
(1) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
See accompanying Notes to Financial Statements.
116
ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||
AdvisorShares Athena International Bear ETF | AdvisorShares Cambria Global Tactical ETF | AdvisorShares EquityPro ETF(1) | AdvisorShares Global Echo ETF | |||||||||||||||||||||||||
For the period July 18, 2013* to December 31, 2013 (Unaudited) | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | For the period July 10, 2012* to June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | ||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net Investment Income (Loss) | $ | (45,996 | ) | $ | 234,135 | $ | 1,014,497 | $ | 105,022 | $ | 12,958 | $ | (9,674 | ) | $ | (6,054 | ) | |||||||||||
Net Realized Gain (Loss) | (152,310 | ) | 211,275 | 2,304,034 | 234,455 | 42,439 | 39,345 | 187,729 | ||||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (36,282 | ) | 1,710,605 | (824,107 | ) | 246,536 | 106,390 | 590,532 | 127,314 | |||||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | (234,588 | ) | 2,156,015 | 2,494,424 | 586,013 | 161,787 | 620,203 | 308,989 | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||||||
Net Investment Income | — | — | (1,451,034 | ) | (154,670 | ) | (6,753 | ) | (2,380 | ) | — | |||||||||||||||||
Net Realized Gains | — | — | — | — | (948 | ) | — | (23,426 | ) | |||||||||||||||||||
Total Distributions | — | — | (1,451,034 | ) | (154,670 | ) | (7,701 | ) | (2,380 | ) | (23,426 | ) | ||||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||||||
Proceeds from Shares Issued | 2,500,000 | — | 12,334 | 17,037,248 | 2,500,000 | — | 5,247,921 | |||||||||||||||||||||
Value of Shares Redeemed | (1,137,157 | ) | (7,305,050 | ) | (29,284,343 | ) | (1,470,047 | ) | (1,297,563 | ) | — | (5,175,016 | ) | |||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 1,362,843 | (7,305,050 | ) | (29,272,009 | ) | 15,567,201 | 1,202,437 | — | 72,905 | |||||||||||||||||||
Net Increase (Decrease) in Net Assets | 1,128,255 | (5,149,035 | ) | (28,228,619 | ) | 15,998,544 | 1,356,523 | 617,823 | 358,468 | |||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||
Beginning of Period | — | 49,942,329 | 78,170,948 | 1,356,523 | — | 5,438,085 | 5,079,617 | |||||||||||||||||||||
End of Period | $ | 1,128,255 | $ | 44,793,294 | $ | 49,942,329 | $ | 17,355,067 | $ | 1,356,523 | $ | 6,055,908 | $ | 5,438,085 | ||||||||||||||
Undistributed Net Investment Income (Loss) | $ | (45,996 | ) | $ | 91,546 | $ | (142,589 | ) | $ | (44,296 | ) | $ | 5,352 | $ | (9,674 | ) | $ | 2,380 | ||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | — | 2,100,000 | 3,300,000 | 50,000 | — | 100,000 | 100,000 | |||||||||||||||||||||
Shares Sold | 100,000 | — | — | 575,000 | 100,000 | — | 100,000 | |||||||||||||||||||||
Shares Repurchased | (50,000 | ) | (300,000 | ) | (1,200,000 | ) | (50,000 | ) | (50,000 | ) | — | (100,000 | ) | |||||||||||||||
End of Period | 50,000 | 1,800,000 | 2,100,000 | 575,000 | 50,000 | 100,000 | 100,000 |
See accompanying Notes to Financial Statements.
117
ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Madrona Domestic ETF | AdvisorShares Madrona Global Bond ETF | |||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net Investment Income (Loss) | $ | 33,054 | $ | 83,034 | $ | 394,662 | $ | 630,435 | ||||||||
Net Realized Gain (Loss) | 985,712 | 1,105,722 | (32,136 | ) | 168,222 | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 2,494,744 | 2,851,528 | 124,257 | (789,608 | ) | |||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 3,513,510 | 4,040,284 | 486,783 | 9,049 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||
Net Investment Income | (59,938 | ) | (73,945 | ) | (420,849 | ) | (624,855 | ) | ||||||||
Net Realized Gains | — | — | — | (3,106 | ) | |||||||||||
Total Distributions | (59,938 | ) | (73,945 | ) | (420,849 | ) | (627,961 | ) | ||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Issued | 2,715,311 | 6,508,179 | — | 7,924,963 | ||||||||||||
Value of Shares Redeemed | (2,715,311 | ) | (7,069,627 | ) | (630,454 | ) | (5,958,081 | ) | ||||||||
Net Increase (Decrease) From Capital Stock Transactions | — | (561,448 | ) | (630,454 | ) | 1,966,882 | ||||||||||
Net Increase (Decrease) in Net Assets | 3,453,572 | 3,404,891 | (564,520 | ) | 1,347,970 | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of Period | 18,593,111 | 15,188,220 | 22,542,939 | 21,194,969 | ||||||||||||
End of Period | $ | 22,046,683 | $ | 18,593,111 | $ | 21,978,419 | $ | 22,542,939 | ||||||||
Undistributed Net Investment Income (Loss) | $ | 1,821 | $ | 28,705 | $ | (13,733 | ) | $ | 12,454 | |||||||
Changes in Shares Outstanding | ||||||||||||||||
Shares Outstanding, Beginning of Period | 575,000 | 600,000 | 900,000 | 825,000 | ||||||||||||
Shares Sold | 75,000 | 225,000 | — | 300,000 | ||||||||||||
Shares Repurchased | (75,000 | ) | (250,000 | ) | (25,000 | ) | (225,000 | ) | ||||||||
End of Period | 575,000 | 575,000 | 875,000 | 900,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
118
ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
AdvisorShares Madrona International ETF | AdvisorShares Meidell Tactical Advantage ETF | AdvisorShares Newfleet Multi-Sector Income ETF | ||||||||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | For the period March 19, 2013* to June 30, 2013 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net Investment Income (Loss) | $ | 39,654 | $ | 246,686 | $ | 26,192 | $ | 36,417 | $ | 1,144,707 | $ | 400,687 | ||||||||||||
Net Realized Gain (Loss) | 884,890 | 692,737 | 650,496 | 936,023 | (150,753 | ) | (25,422 | ) | ||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 2,218,289 | 1,095,122 | 28,512 | (25,603 | ) | 945,481 | (1,656,249 | ) | ||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 3,142,833 | 2,034,545 | 705,200 | 946,837 | 1,939,435 | (1,280,984 | ) | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||
Net Investment Income | (318,396 | ) | (185,288 | ) | — | (64,270 | ) | (1,290,695 | ) | (400,645 | ) | |||||||||||||
Net Realized Gains | — | — | — | — | — | — | ||||||||||||||||||
Total Distributions | (318,396 | ) | (185,288 | ) | — | (64,270 | ) | (1,290,695 | ) | (400,645 | ) | |||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from Shares Issued | 677,332 | 8,719,712 | 20,025,620 | 22,505,890 | 17,260,270 | 85,043,450 | ||||||||||||||||||
Value of Shares Redeemed | — | (9,809,428 | ) | (14,221,344 | ) | (19,832,014 | ) | (2,447,417 | ) | — | ||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 677,332 | (1,089,716 | ) | 5,804,276 | 2,673,876 | 14,812,853 | 85,043,450 | |||||||||||||||||
Net Increase (Decrease) in Net Assets | 3,501,769 | 759,541 | 6,509,476 | 3,556,443 | 15,461,593 | 83,361,821 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of Period | 14,978,257 | 14,218,716 | 9,208,852 | 5,652,409 | 83,361,821 | — | ||||||||||||||||||
End of Period | $ | 18,480,026 | $ | 14,978,257 | $ | 15,718,328 | $ | 9,208,852 | $ | 98,823,414 | $ | 83,361,821 | ||||||||||||
Undistributed Net Investment Income (Loss) | $ | (67,738 | ) | $ | 211,004 | $ | 25,755 | $ | (437 | ) | $ | (145,946 | ) | $ | 42 | |||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 625,000 | 675,000 | 325,000 | 225,000 | 1,700,000 | — | ||||||||||||||||||
Shares Sold | 25,000 | 350,000 | 675,000 | 800,000 | 350,000 | 1,700,000 | ||||||||||||||||||
Shares Repurchased | — | (400,000 | ) | (475,000 | ) | (700,000 | ) | (50,000 | ) | — | ||||||||||||||
End of Period | 650,000 | 625,000 | 525,000 | 325,000 | 2,000,000 | 1,700,000 |
See accompanying Notes to Financial Statements.
119
ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Peritus High Yield ETF | AdvisorShares Pring Turner Business Cycle ETF | |||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | For the period December 18, 2012* to June 30, 2013 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net Investment Income (Loss) | $ | 15,447,410 | $ | 14,982,941 | $ | 29,865 | $ | 28,574 | ||||||||
Net Realized Gain (Loss) | 1,855,269 | 410,917 | 108,878 | (20,383 | ) | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 5,921,143 | 2,388,124 | 137,109 | (28,055 | ) | |||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 23,223,822 | 17,781,982 | 275,852 | (19,864 | ) | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||
Net Investment Income | (15,739,089 | ) | (14,668,314 | ) | (59,326 | ) | — | |||||||||
Net Realized Gains | (385,440 | ) | (20,661 | ) | — | — | ||||||||||
Total Distributions | (16,124,529 | ) | (14,688,975 | ) | (59,326 | ) | — | |||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Issued | 193,235,539 | 172,000,936 | 1,309,926 | 5,748,989 | ||||||||||||
Value of Shares Redeemed | — | (7,693,597 | ) | (1,974,354 | ) | — | ||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 193,235,539 | 164,307,339 | (664,428 | ) | 5,748,989 | |||||||||||
Net Increase (Decrease) in Net Assets | 200,334,832 | 167,400,346 | (447,902 | ) | 5,729,125 | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of Period | 259,728,835 | 92,328,489 | 5,729,125 | — | ||||||||||||
End of Period | $ | 460,063,667 | $ | 259,728,835 | $ | 5,281,223 | $ | 5,729,125 | ||||||||
Undistributed Net Investment Income (Loss) | $ | (141,466 | ) | $ | 535,653 | $ | (737 | ) | $ | 28,724 | ||||||
Changes in Shares Outstanding | ||||||||||||||||
Shares Outstanding, Beginning of Period | 5,150,000 | 1,900,000 | 225,000 | — | ||||||||||||
Shares Sold | 3,750,000 | 3,400,000 | 50,000 | 225,000 | ||||||||||||
Shares Repurchased | — | (150,000 | ) | (75,000 | ) | — | ||||||||||
End of Period | 8,900,000 | 5,150,000 | 200,000 | 225,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
120
ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF | AdvisorShares STAR Global Buy-Write ETF | ||||||||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | For the period August 7, 2012* to June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | For the period September 17, 2012* to June 30, 2013 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net Investment Income (Loss) | $ | (2,824 | ) | $ | (16,228 | ) | $ | (2,586,252 | ) | $ | (8,381,936 | ) | $ | (53,530 | ) | $ | (16,633 | ) | ||||||
Net Realized Gain (Loss) | 125,537 | 12,398 | (31,173,324 | ) | (91,193,659 | ) | (118,321 | ) | (269,448 | ) | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 298,431 | 195,527 | (8,946,961 | ) | (11,309,064 | ) | 1,410,079 | (641,523 | ) | |||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 421,144 | 191,697 | (42,706,537 | ) | (110,884,659 | ) | 1,238,228 | (927,604 | ) | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||
Net Investment Income | (92,485 | ) | (11,280 | ) | — | — | — | (91,839 | ) | |||||||||||||||
Net Realized Gains | (26,668 | ) | (15,366 | ) | — | — | — | (17,177 | ) | |||||||||||||||
Total Distributions | (119,153 | ) | (26,646 | ) | — | — | — | (109,016 | ) | |||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from Shares Issued | 2,765,187 | 3,766,470 | 19,493,899 | 236,542,256 | 3,680,784 | 23,464,423 | ||||||||||||||||||
Value of Shares Redeemed | — | — | (64,263,633 | ) | (220,523,864 | ) | (2,362,662 | ) | — | |||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 2,765,187 | 3,766,470 | (44,769,734 | ) | 16,018,392 | 1,318,122 | 23,464,423 | |||||||||||||||||
Net Increase (Decrease) in Net Assets | 3,067,178 | 3,931,521 | (87,476,271 | ) | (94,866,267 | ) | 2,556,350 | 22,427,803 | ||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of Period | 3,931,521 | — | 218,357,216 | 313,223,483 | 22,427,803 | — | ||||||||||||||||||
End of Period | $ | 6,998,699 | $ | 3,931,521 | $ | 130,880,945 | $ | 218,357,216 | $ | 24,984,153 | $ | 22,427,803 | ||||||||||||
Undistributed Net Investment Income (Loss) | $ | (112,779 | ) | $ | (17,470 | ) | $ | (5,664,862 | ) | $ | (3,078,610 | ) | $ | (163,361 | ) | $ | (109,831 | ) | ||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||
Shares Outstanding, Beginning of Period. | 150,000 | — | 13,500,000 | 13,425,000 | 950,000 | — | ||||||||||||||||||
Shares Sold | 100,000 | 150,000 | 1,325,000 | 11,850,000 | 150,000 | 950,000 | ||||||||||||||||||
Shares Repurchased | — | — | (4,575,000 | ) | (11,775,000 | ) | (100,000 | ) | — | |||||||||||||||
End of Period | 250,000 | 150,000 | 10,250,000 | 13,500,000 | 1,000,000 | 950,000 |
See accompanying Notes to Financial Statements.
121
ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares TrimTabs Float Shrink ETF | AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | |||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net Investment Income (Loss) | $ | 285,656 | $ | 77,198 | $ | (2,062 | ) | $ | 25,558 | |||||||
Net Realized Gain (Loss) | 4,770,355 | 2,467,788 | 99,046 | (4,822 | ) | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 5,592,876 | 92,939 | 1,013,579 | 900,436 | ||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 10,648,887 | 2,637,925 | 1,110,563 | 921,172 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||
Net Investment Income | (300,554 | ) | (69,329 | ) | (5,368 | ) | (37,975 | ) | ||||||||
Net Realized Gains | — | (40,008 | ) | — | — | |||||||||||
Total Distributions | (300,554 | ) | (109,337 | ) | (5,368 | ) | (37,975 | ) | ||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Issued | 187,349,537 | 57,124,119 | 3,581,928 | — | ||||||||||||
Value of Shares Redeemed | (125,252,122 | ) | (42,286,488 | ) | (1,694,175 | ) | — | |||||||||
Net Increase (Decrease) From Capital Stock Transactions | 62,097,415 | 14,837,631 | 1,887,753 | — | ||||||||||||
Net Increase (Decrease) in Net Assets | 72,445,748 | 17,366,219 | 2,992,948 | 883,197 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of Period | 25,657,093 | 8,290,874 | 7,345,606 | 6,462,409 | ||||||||||||
End of Period | $ | 98,102,841 | $ | 25,657,093 | $ | 10,338,554 | $ | 7,345,606 | ||||||||
Undistributed Net Investment Income (Loss) | $ | 5,782 | $ | 20,680 | $ | (4,841 | ) | $ | 2,589 | |||||||
Changes in Shares Outstanding | ||||||||||||||||
Shares Outstanding, Beginning of Period | 625,000 | 250,000 | 225,000 | 225,000 | ||||||||||||
Shares Sold | 4,200,000 | 1,500,000 | 100,000 | — | ||||||||||||
Shares Repurchased | (2,800,000 | ) | (1,125,000 | ) | (50,000 | ) | — | |||||||||
End of Period | 2,025,000 | 625,000 | 275,000 | 225,000 |
See accompanying Notes to Financial Statements.
122
ADVISORSHARES TRUST
Statements of Cash Flows
![](https://capedge.com/proxy/N-CSRS/0001144204-14-012124/line.gif)
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Athena International Bear ETF | AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF(1) | |||||||||||||
For the six months ended December 31, 2013 (Unaudited) | For the period July 18, 2013* to December 31, 2013 (Unaudited) | For the six months ended December 31, 2013 (Unaudited) | For the six months ended December 31, 2013 (Unaudited) | |||||||||||||
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES: | ||||||||||||||||
Dividends and Interest received | $ | 782,746 | $ | 119 | $ | 42,614 | $ | 9,575 | ||||||||
Operating expenses paid | (1,919,793 | ) | (25,006 | ) | (37,111 | ) | (1,640,283 | ) | ||||||||
Net purchases of short-term investments | (465,257 | ) | (1,475,113 | ) | (16,002 | ) | 84,889,265 | |||||||||
Realized gain (loss) on swap contracts | (1,573,144 | ) | — | 7,439 | — | |||||||||||
Purchases of long-term investments | (68,233,222 | ) | — | (7,097,817 | ) | — | ||||||||||
Proceeds from disposition of long-term investments | 71,610,236 | — | 4,209,689 | — | ||||||||||||
Increase/Decrease in receivables for securities sold | — | — | 232,326 | 11,351,231 | ||||||||||||
Increase/Decrease in payables for securities purchased | (1,068,007 | ) | 923,054 | (136,028 | ) | (25,946,602 | ) | |||||||||
Change in proceeds received from short sales | — | — | — | (125,475,415 | ) | |||||||||||
Net increase in short sales | (9,778,533 | ) | 616,253 | 194,805 | — | |||||||||||
Dividends paid | (120,503 | ) | 1,115 | — | (662,880 | ) | ||||||||||
Interest paid | (90,665 | ) | (29,929 | ) | (108 | ) | (531,072 | ) | ||||||||
Net Cash Provided (Used) By Operating Activities | (10,856,142 | ) | 10,493 | (2,600,193 | ) | (58,006,181 | ) | |||||||||
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES: | ||||||||||||||||
Distributions from net investment income and realized gains | — | — | — | — | ||||||||||||
Net proceeds from sale of shares | 1,071,462 | 2,500,000 | 2,765,187 | (49,807,574 | ) | |||||||||||
Deposits with brokers for swap contracts and short sales | 9,799,025 | — | (198,089 | ) | 117,608,843 | |||||||||||
Net Cash Flows Provided (Used) By Financing Activities | 10,870,487 | 2,500,000 | 2,567,098 | 67,801,269 | ||||||||||||
NET INCREASE/DECREASE IN CASH | 14,345 | 2,510,493 | (33,095 | ) | 9,795,088 | |||||||||||
Cash, Beginning of period | — | — | 33,117 | 116,415,412 | ||||||||||||
Cash, End of period | $ | 14,345 | $ | 2,510,493 | $ | 22 | $ | 126,210,500 | ||||||||
RECONCILIATION OF INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES: | ||||||||||||||||
Increase/Decrease in Net Assets From Operations | $ | 736,102 | $ | (234,588 | ) | $ | 421,144 | $ | (42,706,537 | ) | ||||||
Increase/Decrease in investments, at value | (10,518,815 | ) | (670,268 | ) | (3,120,752 | ) | (465,865 | ) | ||||||||
Increase/Decrease in payable for securities purchased | (1,068,007 | ) | 923,054 | (136,028 | ) | (25,946,602 | ) | |||||||||
Increase/Decrease in receivable for securities sold | — | — | 232,325 | 11,351,231 | ||||||||||||
Increase/Decrease in dividends and interest receivable | 510,361 | (4 | ) | 5,044 | 2,048 | |||||||||||
Increase/Decrease in unrealized appreciation (depreciation) on swaps | 1,198,812 | — | (5,101 | ) | — | |||||||||||
Increase/Decrease in prepaid expense | 6,897 | (255 | ) | 7,555 | (6,402 | ) | ||||||||||
Increase/Decrease in interest payable | (1,591,545 | ) | — | (108 | ) | (57,076 | ) | |||||||||
Increase/Decrease in dividends payable | (120,503 | ) | 1,115 | — | (33,391 | ) | ||||||||||
Increase/Decrease in accrued expenses | (9,444 | ) | (8,561 | ) | (4,272 | ) | (143,587 | ) | ||||||||
Total Adjustments | (11,592,244 | ) | 245,081 | (3,021,337 | ) | (15,299,644 | ) | |||||||||
Net Cash Flows Provided (Used) By Operating Activities | $ | (10,856,142 | ) | $ | 10,493 | $ | (2,600,193 | ) | $ | (58,006,181 | ) |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
123
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares Accuvest Global Long Short ETF | ||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | 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 | $ | 21.83 | $ | 21.20 | $ | 20.86 | $ | 25.00 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (Loss)(1) | (0.07 | ) | (0.34 | ) | (0.68 | ) | (0.67 | ) | ||||||||
Net Realized and Unrealized Gain (Loss) | 0.45 | 0.97 | 1.33 | (3.47 | ) | |||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 0.38 | 0.63 | 0.65 | (4.14 | ) | |||||||||||
Distributions from Net Investment Income | — | — | (0.31 | ) | — | |||||||||||
Distributions from Realized Capital Gains | — | — | — | — | ||||||||||||
Total Distributions | — | — | (0.31 | ) | — | |||||||||||
Net Asset Value, End of Period | $ | 22.21 | $ | 21.83 | $ | 21.20 | $ | 20.86 | ||||||||
Market Value, End of Period | $ | 22.20 | $ | 21.98 | $ | 21.22 | $ | 20.86 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 1.74 | % | 2.97 | % | 3.15 | % | (16.56 | )% | ||||||||
Total Investment Return Based on Market(3) | 1.00 | % | 3.58 | % | 3.24 | % | (16.56 | )% | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 43,303 | $ | 42,573 | $ | 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 | % | 1.50 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 2.03 | % | 4.25 | % | 8.15 | % | 3.33 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.63 | % | 1.79 | % | 3.88 | % | 1.73 | % | ||||||||
Net investment Income (Loss)(4) | (0.66 | )% | (1.57 | )% | (3.20 | )% | (2.82 | )% | ||||||||
Portfolio Turnover Rate(5) | 100 | % | 270 | % | 365 | % | 751 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | Less than $0.005. |
(3) | Net asset value total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. 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 the 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 known as, AdvisorShares Global Alpha & Beta ETF. |
See accompanying Notes to Financial Statements.
124
ADVISORSHARES TRUST
Financial Highlights (continued)
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AdvisorShares Accuvest Global Opportunities ETF | AdvisorShares Athena International Bear ETF | |||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | For the period January 25, 2012* to June 30, 2012 | For the period July 18, 2013* to December 31, 2013 (Unaudited) | |||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||
Net Asset Value, Beginning of Period | $ | 26.41 | $ | 24.44 | $ | 25.00 | $ | 25.00 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (Loss)(1) | 0.08 | 0.12 | 0.31 | (0.46 | ) | |||||||||||
Net Realized and Unrealized Gain (Loss) | 2.27 | 2.16 | (0.87 | ) | (1.97 | ) | ||||||||||
Distributions of Net Realized Gains by other invtment companies | — | — | — | — | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 2.35 | 2.28 | (0.56 | ) | (2.43 | ) | ||||||||||
Distributions from Net Investment Income | (0.21 | ) | (0.31 | ) | — | — | ||||||||||
Distributions from Realized Capital Gains | — | — | — | — | ||||||||||||
Total Distributions | (0.21 | ) | (0.31 | ) | — | — | ||||||||||
Net Asset Value, End of Period | $ | 28.55 | $ | 26.41 | $ | 24.44 | $ | 22.57 | ||||||||
Market Value, End of Period | $ | 28.61 | $ | 26.41 | $ | 24.45 | $ | 22.52 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 8.89 | % | 9.25 | % | (2.24 | )% | (9.72 | )% | ||||||||
Total Investment Return Based on Market(3) | 8.33 | % | 9.18 | % | (2.20 | )% | (9.92 | )% | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 21,411 | $ | 17,830 | $ | 13,442 | $ | 1,128 | ||||||||
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 | % | 1.50 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 1.58 | % | 1.54 | % | 2.27 | % | 9.20 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.58 | % | 1.54 | % | 2.27 | % | 6.40 | % | ||||||||
Net investment Income (Loss)(4) | 0.61 | % | 0.45 | % | 2.90 | % | (4.26 | )% | ||||||||
Portfolio Turnover Rate(5) | 98 | % | 100 | % | 135 | % | 290 | % |
See accompanying Notes to Financial Statements.
125
ADVISORSHARES TRUST
Financial Highlights (continued)
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AdvisorShares Cambria Global Tactical ETF | ||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | 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 | $ | 23.78 | $ | 23.69 | $ | 25.92 | $ | 25.10 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (Loss)(1) | 0.12 | 0.38 | 0.21 | 0.25 | ||||||||||||
Net Realized and Unrealized Gain (Loss) | 0.99 | 0.27 | (2.24 | ) | 0.79 | |||||||||||
Distributions of Net Realized Gains by other investment companies | — | 0.00 | (2) | — | — | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 1.11 | 0.65 | (2.03 | ) | 1.04 | |||||||||||
Distributions from Net Investment Income | — | (0.56 | ) | — | (0.22 | ) | ||||||||||
Distributions from Realized Capital Gains | — | — | (0.20 | ) | — | |||||||||||
Total Distributions | — | (0.56 | ) | (0.20 | ) | (0.22 | ) | |||||||||
Net Asset Value, End of Period | $ | 24.89 | $ | 23.78 | $ | 23.69 | $ | 25.92 | ||||||||
Market Value, End of Period | $ | 24.87 | $ | 23.79 | $ | 23.64 | $ | 25.93 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 4.67 | % | 2.68 | % | (7.84 | )% | 4.17 | % | ||||||||
Total Investment Return Based on Market(3) | 4.54 | % | 2.92 | % | (8.07 | )% | 4.20 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 44,793 | $ | 49,942 | $ | 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 | % | 1.15 | % | 0.99 | % | 1.02 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 1.24 | % | 1.15 | % | 1.08 | % | 1.04 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.24 | % | 1.15 | % | 1.08 | % | 1.04 | % | ||||||||
Net investment Income (Loss)(4) | 0.97 | % | 1.54 | % | 0.87 | % | 1.45 | % | ||||||||
Portfolio Turnover Rate(5) | 134 | % | 236 | % | 475 | % | 187 | % |
See accompanying Notes to Financial Statements.
126
ADVISORSHARES TRUST
Financial Highlights (continued)
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AdvisorShares EquityPro ETF(6) | AdvisorShares Global Echo ETF | |||||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | For the period July 10, 2012* to June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | 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 | $ | 27.13 | $ | 25.00 | $ | 54.38 | $ | 50.80 | $ | 50.00 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (Loss)(1) | 0.99 | 0.22 | (0.10 | ) | (0.07 | ) | (0.02 | ) | ||||||||||||
Net Realized and Unrealized Gain (Loss) | 2.40 | 2.06 | 6.30 | 3.88 | 0.82 | |||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | — | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 3.39 | 2.28 | 6.20 | 3.81 | 0.80 | |||||||||||||||
Distributions from Net Investment Income | (0.34 | ) | (0.13 | ) | (0.02 | ) | — | — | ||||||||||||
Distributions from Realized Capital Gains | — | (0.02 | ) | — | (0.23 | ) | — | |||||||||||||
Total Distributions | (0.34 | ) | (0.15 | ) | (0.02 | ) | (0.23 | ) | — | |||||||||||
Net Asset Value, End of Period | $ | 30.18 | $ | 27.13 | $ | 60.56 | $ | 54.38 | $ | 50.80 | ||||||||||
Market Value, End of Period | $ | 30.20 | $ | 27.12 | $ | 60.60 | $ | 54.53 | $ | 50.99 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 12.51 % | 9.16 % | 11.41 % | 7.54 % | 1.60 % | |||||||||||||||
Total Investment Return Based on Market(3) | 11.36 % | 9.11 % | 11.18 % | 7.43 % | 1.98 % | |||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 17,355 | $ | 1,357 | $ | 6,056 | $ | 5,438 | $ | 5,080 | ||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.25 % | 1.25 % | 1.50 % | 1.50 % | 1.50 % | |||||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 4.26 % | 6.95 % | 1.50 % | 1.50 % | 1.50 % | |||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 4.26 % | 6.95 % | 1.50 % | 1.50 % | 1.50 % | |||||||||||||||
Net investment Income (Loss)(4) | 7.20 % | 0.88 % | (0.33 | )% | (0.13 | )% | (0.32 | )% | ||||||||||||
Portfolio Turnover Rate(5) | 41 % | 43 % | 62 % | 180 % | 70 % |
See accompanying Notes to Financial Statements.
127
ADVISORSHARES TRUST
Financial Highlights (continued)
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AdvisorShares Madrona Domestic ETF | ||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | 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 | $ | 32.34 | $ | 25.31 | $ | 26.07 | $ | 25.00 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (Loss)(1) | 0.06 | 0.15 | 0.10 | 0.00 | (2) | |||||||||||
Net Realized and Unrealized Gain (Loss) | 6.04 | 7.01 | (0.79 | ) | 1.07 | |||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 6.10 | 7.16 | (0.69 | ) | 1.07 | |||||||||||
Distributions from Net Investment Income | (0.10 | ) | (0.13 | ) | (0.07 | ) | — | |||||||||
Distributions from Realized Capital Gains | — | — | — | — | ||||||||||||
Total Distributions | (0.10 | ) | (0.13 | ) | (0.07 | ) | — | |||||||||
Net Asset Value, End of Period | $ | 38.34 | $ | 32.34 | $ | 25.31 | $ | 26.07 | ||||||||
Market Value, End of Period | $ | 38.32 | $ | 32.34 | $ | 25.28 | $ | 26.07 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 18.88 % | 28.37 % | (2.65 | )% | 4.28 % | |||||||||||
Total Investment Return Based on Market(3) | 18.81 % | 28.52 % | (2.76 | )% | 4.28 % | |||||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 22,047 | $ | 18,593 | $ | 15,188 | $ | 2,607 | ||||||||
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 % | 1.25 % | ||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 1.48 % | 1.61 % | 1.46 % | 10.96 % | ||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.48 % | 1.61 % | 1.46 % | 10.96 % | ||||||||||||
Net investment Income (Loss)(4) | 0.32 % | 0.51 % | 0.40 % | 0.23 % | ||||||||||||
Portfolio Turnover Rate(5) | 12 % | 33 % | 40 % | 0 % |
See accompanying Notes to Financial Statements.
128
ADVISORSHARES TRUST
Financial Highlights (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||
AdvisorShares Madrona Global Bond ETF | AdvisorShares Madrona International ETF | |||||||||||||||||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Year ended June 30, 2012 | For the period June 21, 2011* to June 30, 2011 | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | 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 | $ | 25.05 | $ | 25.69 | $ | 25.01 | $ | 25.00 | $ | 23.97 | $ | 21.06 | $ | 26.17 | $ | 25.00 | ||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(1) | 0.45 | 0.72 | 0.71 | 0.01 | 0.06 | 0.39 | 0.32 | 0.01 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 0.09 | (0.66 | ) | 0.67 | — | 4.89 | 2.82 | (5.33 | ) | 1.16 | ||||||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | 0.01 | 0.01 | — | — | — | — | — | — | ||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 0.55 | 0.07 | 1.38 | 0.01 | 4.95 | 3.21 | (5.01 | ) | 1.17 | |||||||||||||||||||||||
Distributions from Net Investment Income | (0.48 | ) | (0.71 | ) | (0.70 | ) | — | (0.49 | ) | (0.30 | ) | (0.08 | ) | — | ||||||||||||||||||
Distributions from Realized Capital Gains | — | (0.00 | )(2) | — | — | — | — | (0.02 | ) | — | ||||||||||||||||||||||
Total Distributions | (0.48 | ) | (0.71 | ) | (0.70 | ) | — | (0.49 | ) | (0.30 | ) | (0.10 | ) | — | ||||||||||||||||||
Net Asset Value, End of Period | $ | 25.12 | $ | 25.05 | $ | 25.69 | $ | 25.01 | $ | 28.43 | $ | 23.97 | $ | 21.06 | $ | 26.17 | ||||||||||||||||
Market Value, End of Period | $ | 25.10 | $ | 24.96 | $ | 25.68 | $ | 25.02 | $ | 28.39 | $ | 23.95 | $ | 21.11 | $ | 26.18 | ||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 2.21 | % | 0.20 | % | 5.59 | % | 0.04 | % | 20.69 | % | 15.24 | % | (19.11 | )% | 4.68 | % | ||||||||||||||||
Total Investment Return Based on Market(3) | 2.50 | % | (0.13 | )% | 5.49 | % | 0.08 | % | 20.58 | % | 14.86 | % | (18.95 | )% | 4.72 | % | ||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 21,978 | $ | 22,543 | $ | 21,195 | $ | 2,501 | $ | 18,480 | $ | 14,978 | $ | 14,219 | $ | 2,617 | ||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 1.10 | % | 1.02 | % | 0.99 | % | 11.08 | % | 1.62 | % | 1.65 | % | 1.54 | % | 10.99 | % | ||||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.10 | % | 1.02 | % | 0.99 | % | 11.08 | % | 1.62 | % | 1.65 | % | 1.54 | % | 10.99 | % | ||||||||||||||||
Net investment Income (Loss)(4) | 3.55 | % | 2.73 | % | 2.81 | % | 1.68 | % | 0.46 | % | 1.65 | % | 1.48 | % | 1.14 | % | ||||||||||||||||
Portfolio Turnover Rate(5) | 7 | % | 28 | % | 12 | % | 0 | % | 92 | % | 93 | % | 110 | % | 19 | % |
See accompanying Notes to Financial Statements.
129
ADVISORSHARES TRUST
Financial Highlights (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Meidell Tactical Advantage ETF | ||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | 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 | $ | 28.33 | $ | 25.12 | $ | 25.06 | $ | 25.00 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (Loss)(1) | 0.07 | 0.14 | 0.00 | (2) | 0.01 | |||||||||||
Net Realized and Unrealized Gain (Loss) | 1.54 | 3.30 | 0.08 | 0.05 | ||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 1.61 | 3.44 | 0.08 | 0.06 | ||||||||||||
Distributions from Net Investment Income | — | (0.23 | ) | (0.02 | ) | — | ||||||||||
Distributions from Realized Capital Gains | — | — | — | — | ||||||||||||
Total Distributions | — | (0.23 | ) | (0.02 | ) | — | ||||||||||
Net Asset Value, End of Period | $ | 29.94 | $ | 28.33 | $ | 25.12 | $ | 25.06 | ||||||||
Market Value, End of Period | $ | 29.97 | $ | 28.37 | $ | 25.48 | $ | 25.07 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 5.68 | % | 13.81 | % | 0.31 | % | 0.24 | % | ||||||||
Total Investment Return Based on Market(3) | 5.64 | % | 12.33 | % | 1.71 | % | 0.28 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 15,718 | $ | 9,209 | $ | 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 | % | 1.35 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 2.34 | % | 2.99 | % | 3.69 | % | 13.70 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 2.34 | % | 2.99 | % | 3.69 | % | 13.70 | % | ||||||||
Net investment Income (Loss)(4) | 0.46 | % | 0.51 | % | 0.01 | % | 1.00 | % | ||||||||
Portfolio Turnover Rate(5) | 340 | % | 605 | % | 817 | % | 5 | % |
See accompanying Notes to Financial Statements.
130
ADVISORSHARES TRUST
Financial Highlights (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
AdvisorShares Newfleet Multi-Sector Income ETF | AdvisorShares Peritus High Yield ETF | |||||||||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | For the period March 19, 2013* to June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | 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 | $ | 49.04 | $ | 50.00 | $ | 50.43 | $ | 48.59 | $ | 51.59 | $ | 50.00 | ||||||||||||
Investment Operations | ||||||||||||||||||||||||
Net Investment Income (Loss)(1) | 0.62 | 0.28 | 2.18 | 4.28 | 4.20 | 2.25 | ||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 0.44 | (0.99 | ) | 1.26 | 1.66 | (2.74 | ) | 1.30 | ||||||||||||||||
Distributions of Net Realized Gains by other invtment companies | — | — | — | — | 0.00 | (2) | — | |||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 1.06 | (0.71 | ) | 3.44 | 5.94 | 1.46 | 3.55 | |||||||||||||||||
Distributions from Net Investment Income | (0.69 | ) | (0.25 | ) | (2.14 | ) | (4.09 | ) | (3.99 | ) | (1.96 | ) | ||||||||||||
Distributions from Realized Capital Gains | — | — | (0.04 | ) | (0.01 | ) | (0.47 | ) | — | |||||||||||||||
Total Distributions | (0.69 | ) | (0.25 | ) | (2.18 | ) | (4.10 | ) | (4.46 | ) | (1.96 | ) | ||||||||||||
Net Asset Value, End of Period | $ | 49.41 | $ | 49.04 | $ | 51.69 | $ | 50.43 | $ | 48.59 | $ | 51.59 | ||||||||||||
Market Value, End of Period | $ | 49.49 | $ | 49.01 | $ | 51.71 | $ | 49.91 | $ | 48.64 | $ | 51.87 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 2.17 | % | (1.42 | )% | 6.93 | % | 12.58 | % | 3.27 | % | 7.16 | % | ||||||||||||
Total Investment Return Based on Market(3) | 2.39 | % | (1.48 | )% | 8.08 | % | 11.29 | % | 2.75 | % | 7.73 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 98,823 | $ | 83,362 | $ | 460,064 | $ | 259,729 | $ | 92,328 | $ | 43,851 | ||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | 0.75 | % | 0.75 | % | 1.18 | % | 1.25 | % | 1.35 | % | 1.34 | % | ||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 0.81 | % | 1.13 | % | 1.18 | % | 1.23 | % | 1.35 | % | 1.57 | % | ||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 0.81 | % | 1.13 | % | 1.18 | % | 1.23 | % | 1.35 | % | 1.57 | % | ||||||||||||
Net investment Income (Loss)(4) | 2.50 | % | 1.98 | % | 8.42 | % | 8.44 | % | 8.62 | % | 7.47 | % | ||||||||||||
Portfolio Turnover Rate(5) | 27 | % | 105 | % | 31 | % | 37 | % | 80 | % | 81 | % |
See accompanying Notes to Financial Statements.
131
ADVISORSHARES TRUST
Financial Highlights (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Pring Turner Business Cycle ETF | AdvisorShares QAM Equity Hedge ETF | |||||||||||||||
Six months ended December 31, 2013 (Unaudited) | For the period December 18, 2012* to June 30, 2013 | Six months ended December 31, 2013 (Unaudited) | For the period August 7, 2012* to June 30, 2013 | |||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||
Net Asset Value, Beginning of Period | $ | 25.46 | $ | 25.00 | $ | 26.21 | $ | 25.00 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (Loss)(1) | 0.14 | 0.18 | (0.01 | ) | (0.12 | ) | ||||||||||
Net Realized and Unrealized Gain (Loss) | 1.11 | 0.28 | 2.27 | 1.51 | ||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 1.25 | 0.46 | 2.26 | 1.39 | ||||||||||||
Distributions from Net Investment Income | (0.30 | ) | — | (0.37 | ) | (0.08 | ) | |||||||||
Distributions from Realized Capital Gains | — | — | (0.11 | ) | (0.10 | ) | ||||||||||
Total Distributions | (0.30 | ) | — | (0.48 | ) | (0.18 | ) | |||||||||
Net Asset Value, End of Period | $ | 26.41 | $ | 25.46 | $ | 27.99 | $ | 26.21 | ||||||||
Market Value, End of Period | $ | 26.38 | $ | 25.47 | $ | 28.01 | $ | 26.16 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 4.90 | % | 1.84 | % | 8.62 | % | 5.57 | % | ||||||||
Total Investment Return Based on Market(3) | 4.74 | % | 1.88 | % | 7.07 | % | 5.36 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 5,281 | $ | 5,729 | $ | 6,999 | $ | 3,932 | ||||||||
Ratio to Average Net Assets of: | ||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.49 | % | 1.49 | % | 1.50 | % | 1.50 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 2.58 | % | 4.70 | % | 2.93 | % | 4.61 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 2.58 | % | 4.70 | % | 2.93 | % | 4.55 | % | ||||||||
Net investment Income (Loss)(4) | 1.09 | % | 1.35 | % | (0.10 | )% | (0.50 | )% | ||||||||
Portfolio Turnover Rate(5) | 20 | % | 26 | % | 98 | % | 114 | % |
See accompanying Notes to Financial Statements.
132
ADVISORSHARES TRUST
Financial Highlights (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
AdvisorShares Ranger Equity Bear ETF | AdvisorShares STAR Global Buy-Write ETF | |||||||||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | Year ended June 30, 2012 | For the period January 27, 2011* to June 30, 2011 | Six months ended December 31, 2013 (Unaudited) | For the period September 17, 2012* to June 30, 2013 | |||||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 16.17 | $ | 23.33 | $ | 22.65 | $ | 25.00 | $ | 23.61 | $ | 25.00 | ||||||||||||
Investment Operations | ||||||||||||||||||||||||
Net Investment Income (Loss)(1) | (0.21 | ) | (0.60 | ) | (0.72 | ) | (0.30 | ) | (0.06 | ) | (0.03 | ) | ||||||||||||
Net Realized and Unrealized Gain (Loss) | (3.19 | ) | (6.56 | ) | 1.40 | (2.05 | ) | 1.43 | (1.16 | ) | ||||||||||||||
Distributions of Net Realized Gains by other invtment companies | — | — | — | — | — | — | ||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | (3.40 | ) | (7.16 | ) | 0.68 | (2.35 | ) | 1.37 | (1.19 | ) | ||||||||||||||
Distributions from Net Investment Income | — | — | — | — | — | (0.17 | ) | |||||||||||||||||
Distributions from Realized Capital Gains | — | — | — | — | — | (0.03 | ) | |||||||||||||||||
Total Distributions | — | — | — | — | — | (0.20 | ) | |||||||||||||||||
Net Asset Value, End of Period | $ | 12.77 | $ | 16.17 | $ | 23.33 | $ | 22.65 | $ | 24.98 | $ | 23.61 | ||||||||||||
Market Value, End of Period | $ | 12.78 | $ | 16.16 | $ | 23.34 | $ | 22.65 | $ | 25.03 | $ | 23.62 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | (21.03 | )% | (30.69 | )% | 3.00 | % | (9.40 | )% | 5.80 | % | (4.80 | )% | ||||||||||||
Total Investment Return Based on Market(3) | (20.92 | )% | (30.76 | )% | 3.05 | % | (9.40 | )% | 5.97 | % | (4.76 | )% | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 130,881 | $ | 218,357 | $ | 313,223 | $ | 50,389 | $ | 24,984 | $ | 22,428 | ||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.64 | % | 1.61 | % | 1.69 | % | 1.79 | % | 1.85 | % | 1.85 | % | ||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 2.86 | % | 3.12 | % | 3.06 | % | 3.16 | % | 1.87 | % | 2.35 | % | ||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.64 | % | 1.61 | % | 1.68 | % | 1.88 | % | 1.87 | % | 2.35 | % | ||||||||||||
Net investment Income (Loss)(4) | (2.85 | )% | (3.11 | )% | (3.06 | )% | (3.07 | )% | (0.30 | )% | (0.14 | )% | ||||||||||||
Portfolio Turnover Rate(5) | 260 | % | 697 | % | 756 | % | 635 | % | 82 | % | 40 | % |
See accompanying Notes to Financial Statements.
133
ADVISORSHARES TRUST
Financial Highlights (continued)
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AdvisorShares TrimTabs Float Shrink ETF | ||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | For the period October 5, 2011* to June 30, 2012 | ||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||
Net Asset Value, Beginning of Period | $ | 41.05 | $ | 33.16 | $ | 26.20 | ||||||
Investment Operations | ||||||||||||
Net Investment Income (Loss)(1) | 0.19 | 0.23 | 0.07 | |||||||||
Net Realized and Unrealized Gain (Loss) | 7.36 | 7.99 | 6.90 | |||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | |||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 7.55 | 8.22 | 6.97 | |||||||||
Distributions from Net Investment Income | (0.15 | ) | (0.21 | ) | (0.01 | ) | ||||||
Distributions from Realized Capital Gains | — | (0.12 | ) | — | ||||||||
Total Distributions | (0.15 | ) | (0.33 | ) | (0.01 | ) | ||||||
Net Asset Value, End of Period | $ | 48.45 | $ | 41.05 | $ | 33.16 | ||||||
Market Value, End of Period | $ | 48.45 | $ | 41.13 | $ | 33.24 | ||||||
Total Return | ||||||||||||
Total Investment Return Based on Net Asset Value(3) | 18.41 | % | 25.01 | % | 26.62 | % | ||||||
Total Investment Return Based on Market(3) | 18.17 | % | 24.96 | % | 26.93 | % | ||||||
Ratios/Supplemental Data | ||||||||||||
Net Assets, End of Period (000's omitted) | $ | 98,103 | $ | 25,657 | $ | 8,291 | ||||||
Ratio to Average Net Assets of: | ||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4) | 0.99 | % | 0.99 | % | 0.99 | % | ||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 1.20 | % | 1.90 | % | 2.34 | % | ||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 1.20 | % | 1.90 | % | 2.34 | % | ||||||
Net investment Income (Loss)(4) | 0.85 | % | 0.62 | % | 0.31 | % | ||||||
Portfolio Turnover Rate(5) | 9 | % | 57 | % | 201 | % |
See accompanying Notes to Financial Statements.
134
ADVISORSHARES TRUST
Financial Highlights (continued)
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AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | ||||||||||||||||
Six months ended December 31, 2013 (Unaudited) | Year ended June 30, 2013 | 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 | $ | 32.65 | $ | 28.72 | $ | 31.46 | $ | 25.00 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (Loss)(1) | (0.01 | ) | 0.11 | 0.07 | 0.15 | |||||||||||
Net Realized and Unrealized Gain (Loss) | 4.97 | 3.99 | (2.58 | ) | 6.40 | |||||||||||
Distributions of Net Realized Gains by other invtment companies | — | 0.00 | (2) | — | — | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 4.96 | 4.10 | (2.51 | ) | 6.55 | |||||||||||
Distributions from Net Investment Income | (0.02 | ) | (0.17 | ) | (0.11 | ) | (0.09 | ) | ||||||||
Distributions from Realized Capital Gains | — | — | (0.12 | ) | — | |||||||||||
Total Distributions | (0.02 | ) | (0.17 | ) | (0.23 | ) | (0.09 | ) | ||||||||
Net Asset Value, End of Period | $ | 37.59 | $ | 32.65 | $ | 28.72 | $ | 31.46 | ||||||||
Market Value, End of Period | $ | 37.66 | $ | 32.63 | $ | 28.70 | $ | 31.58 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(3) | 15.21 | % | 14.30 | % | (7.94 | )% | 26.21 | % | ||||||||
Total Investment Return Based on Market(3) | 15.49 | % | 14.29 | % | (8.36 | )% | 26.69 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 10,339 | $ | 7,346 | $ | 6,462 | $ | 8,651 | ||||||||
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 | % | 1.25 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4) | 2.01 | % | 2.52 | % | 4.17 | % | 3.04 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4) | 2.01 | % | 2.52 | % | 4.17 | % | 3.04 | % | ||||||||
Net investment Income (Loss)(4) | (0.05 | )% | 0.36 | % | 0.24 | % | 0.52 | % | ||||||||
Portfolio Turnover Rate(5) | 20 | % | 38 | % | 16 | % | 34 | % |
See accompanying Notes to Financial Statements.
135
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
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 18 active funds (the “Funds” or “ETFs” and individually, the “Fund” or “ETF”):
![]() | ![]() | ![]() | ||||||
Fund | Ticker | Commencement of Operations | ||||||
AdvisorShares Accuvest Global Long Short ETF | AGLS | July 9, 2010 | ||||||
AdvisorShares Accuvest Global Opportunities ETF | ACCU | January 25, 2012 | ||||||
AdvisorShares Athena International Bear ETF | HDGI | July 18, 2013 | ||||||
AdvisorShares Cambria Global Tactical ETF | GTAA | October 26, 2010 | ||||||
AdvisorShares EquityPro ETF (formerly known as, AdvisorShares Global Alpha & Beta ETF) | EPRO | July 10, 2012 | ||||||
AdvisorShares Global Echo ETF | GIVE | May 23, 2012 | ||||||
AdvisorShares Madrona Domestic ETF | FWDD | June 21, 2011 | ||||||
AdvisorShares Madrona Global Bond ETF | FWDB | June 21, 2011 | ||||||
AdvisorShares Madrona International ETF | FWDI | June 21, 2011 | ||||||
AdvisorShares Meidell Tactical Advantage ETF | MATH | June 23, 2011 | ||||||
AdvisorShares Newfleet Multi-Sector Income ETF | MINC | March 19, 2013 | ||||||
AdvisorShares Peritus High Yield ETF | HYLD | December 1, 2010 | ||||||
AdvisorShares Pring Turner Business Cycle ETF | DBIZ | December 18, 2012 | ||||||
AdvisorShares QAM Equity Hedge ETF | QEH | August 7, 2012 | ||||||
AdvisorShares Ranger Equity Bear ETF | HDGE | January 27, 2011 | ||||||
AdvisorShares STAR Global Buy-Write ETF | VEGA | September 17, 2012 | ||||||
AdvisorShares TrimTabs Float Shrink ETF | TTFS | October 5, 2011 | ||||||
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | AADR | July 21, 2010 |
Effective December 1, 2013, AdvisorShares Global Alpha & Beta ETF changed its name to AdvisorShares EquityPro ETF.
AdvisorShares Accuvest Global Long Short 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.
AdvisorShares Accuvest Global Opportunities ETF (“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.
AdvisorShares Athena International Bear ETF (“Athena International Bear ETF”) seeks capital appreciation through short sales of international equity securities. The Portfolio Manager uses a behavioral finance approach to identifying securities to short. Stocks are screened and selected using the Portfolio Manager’s patented behavioral research.
AdvisorShares Cambria Global Tactical ETF (“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.
136
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
1. Organization - (continued)
AdvisorShares EquityPro ETF (“EquityPro ETF”) is a broadly diversified global equity ETF which seeks long-term capital growth. EPRO 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. EPRO is managed by The Elements Financial Group, LLC (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 Global Echo ETF (“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.
AdvisorShares Madrona Domestic ETF (“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.
AdvisorShares Madrona Global Bond ETF (“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.
AdvisorShares Madrona International ETF (“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.
AdvisorShares Meidell Tactical Advantage ETF (“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.
AdvisorShares Newfleet Multi-Sector Income ETF (“Newfleet Multi-Sector Income ETF”) seeks to provide current income consistent with preservation of capital, while limiting fluctuations in net asset value (“NAV”) due to changes in interest rates. In seeking to achieve the Fund’s investment objective, Newfleet Asset Management, LLC (the “Sub-Advisor”) applies a time-tested approach and extensive credit research to capitalize on opportunities across undervalued areas of the bond markets. The Fund principally invests in investment-grade securities, which are securities with credit ratings within the
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Notes to Financial Statements
December 31, 2013
1. Organization - (continued)
four highest rating categories of a nationally recognized statistical rating organization or, if unrated, those securities that the Sub-Advisor determines to be of comparable quality.
AdvisorShares Peritus High Yield ETF (“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.
AdvisorShares Pring Turner Business Cycle ETF (“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.
AdvisorShares QAM Equity Hedge ETF (“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, LLC (Portfolio Manager). 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.
AdvisorShares Ranger Equity Bear ETF (“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.
AdvisorShares STAR Global Buy-Write ETF (“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.
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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
1. Organization - (continued)
AdvisorShares TrimTabs Float Shrink ETF (“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.
AdvisorShares WCM/BNY Mellon Focused ADR ETF (“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 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
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December 31, 2013
2. Summary of Significant Accounting Policies - (continued)
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 Athena International Bear ETF, the Cambria Global Tactical ETF, the Pring Turner Business Cycle ETF, the QAM Equity Hedge ETF and the Ranger Equity Bear ETF may sell securities it does not own as a hedge against some of its long positions and/or in anticipation of a decline in the market value of that security (short sale). When the Funds make a short sale, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. The Funds may have to pay a fee to borrow the particular security and may be obligated to remit any interest or dividends received on such borrowed securities. Dividends declared on short positions open are recorded on the ex-date as an expense. A gain, limited to the price at which the Funds sold the security short, or a loss, unlimited in magnitude, will be recognized upon the termination of a short sale if the market price at termination is less than or greater than, respectively, the proceeds originally received. The Funds are also subject to the risk that it may be unable to reacquire a security to terminate a short position except at a price substantially in excess of the last quoted price.
The Funds are required to pledge cash or securities to the broker as collateral for the securities sold short. Collateral requirements are calculated daily based on the current market value of the short positions. Cash deposited with broker for collateral for securities sold short is recorded as an asset on the Statement of Assets and Liabilities and securities segregated as collateral are denoted in the Schedule of Investments. The Funds may receive or pay the net of the following amounts: (i) a portion of the income from the investment of cash collateral; (ii) the broker’s fee on the borrowed securities; and (iii) a financing charge for the difference in the market value of the short position and cash collateral deposited with the broker. This income or fee is calculated daily based upon the market value of each borrowed security and a variable rate that is dependent on the availability of the security. The net amounts of income or fees paid by Accuvest Global Long Short ETF, Athena International Bear ETF and Ranger Equity Bear ETF for the period ended December 31, 2013 are $87,455, $30,187, and $473,996, 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 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
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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
2. Summary of Significant Accounting Policies - (continued)
derivative instruments a Fund holds. No monies are paid or received by a Fund upon the purchase or sale of a futures contract. Initially, a Fund will be required to deposit with the broker an amount of cash or cash equivalents, known as initial margin, based on the value of the contract. Subsequent payments, called variation margin, to and from the broker, will be made on a daily basis as the price of the underlying instruments fluctuates, making the long and short positions in the futures contract more or less valuable, a process known as ‘marking-to-the-market.’ Once a final determination of variation margin is made, additional cash is required to be paid by or released to a Fund, and a Fund will realize a loss or gain. The Funds may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying index. Use of long futures contracts subjects the Funds to risk of loss in excess of the amounts shown on the Statements of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects the Funds to unlimited risk of loss. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures contract; therefore, the Funds’ credit risk is limited to failure of the exchange or board of trade. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
Options
Certain 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.
Securities Lending
Each Fund may lend portfolio securities to certain credit worthy borrowers, including the Funds’ securities lending agent. It is the Funds’ policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral in the form of cash and/or high grade debt obligations, equivalent to at least 100% of the market value of securities loaned, is maintained at all times. Cash collateral Can be invested in certain money market mutual funds which also have exposure to the fluctuations of the market. Each Fund receives compensation for lending its securities from interest or dividends earned on the cash or U.S. government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. The borrower pays to the
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Notes to Financial Statements
December 31, 2013
2. Summary of Significant Accounting Policies - (continued)
Funds an amount equal to any dividends or interest received on loaned securities. Lending portfolio securities could result in a loss or delay in recovering the Fund’s securities if the borrower default.
Price information on ETFs is taken from the exchange where the security is primarily traded. Under normal conditions, the Funds invest cash collateral from securities lending activities into BNY Mellon Securities Lending Overnight Fund (“BNY Mellon Securities Lending Overnight”). The BNY Mellon Securities Lending Overnight Fund investment objective is the maximization of current income to the extent consistent with preservation of capital and the maintenance of liquidity. BNY Mellon Securities Lending Overnight Fund has no redemption restrictions, and is valued at NAV.
Due to the inherent uncertainty of valuations, fair values may differ significantly from the values that would have been used had an active market existed. Fair valuation could result in a different NAV than a NAV determined by using market quotes.
The securities lending income earned by the Funds is disclosed on the Statements of Operations. The value of loaned securities and related collateral outstanding at December 31, 2013 are shown in the Schedules of Investments and Statements of Assets and Liabilities.
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Liabilities: | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statements of Financial Position | Gross Amounts not offset in the Statement of Assets and Liabilities | ||||||||||||||||||||||||
Fund | Description | Financial Instruments | Collateral Pledged/ Received | Net Amount | ||||||||||||||||||||||||
Accuvest Global Opportunities ETF | Securities Lending | $ | 3,342,825 | $ | — | $ | 3,342,825 | 3,342,825* | $ | — | $ | — | ||||||||||||||||
Cambria Global Tactical ETF | Securities Lending | 6,305,550 | — | 6,305,550 | 6,305,550* | — | — | |||||||||||||||||||||
EquityPro ETF | Securities Lending | 855,075 | — | 855,075 | 855,075* | — | — | |||||||||||||||||||||
Global Echo ETF | Securities Lending | 327,399 | — | 327,399 | 327,399* | — | — | |||||||||||||||||||||
Madrona Domestic ETF | Securities Lending | 189,656 | — | 189,656 | 189,656* | — | — | |||||||||||||||||||||
Madrona Global Bond ETF | Securities Lending | 6,707,087 | — | 6,707,087 | 6,707,087* | — | — | |||||||||||||||||||||
Madrona International ETF | Securities Lending | 3,986,977 | — | 3,986,977 | 3,986,977* | — | — | |||||||||||||||||||||
Meidell Tactical Advantage ETF | Securities Lending | 4,095,324 | — | 4,095,324 | 4,095,324* | — | — | |||||||||||||||||||||
NewFleet Multi-Sector Income ETF | Securities Lending | 1,133,630 | — | 1,133,630 | 1,133,630* | — | — | |||||||||||||||||||||
Peritus High Yield ETF | Securities Lending | 59,608,290 | 59,608,290 | 59,608,290* | — | — | ||||||||||||||||||||||
Pring Turner Business Cycle | Securities Lending | 474,323 | — | 474,323 | 474,323* | — | — | |||||||||||||||||||||
TrimTabs Float Shrink ETF | Securities Lending | 1,455,433 | — | 1,455,433 | 1,455,433* | — | — | |||||||||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | Securities Lending | 1,491,400 | — | 1,491,400 | 1,491,400* | — | — |
* | Collateral for securities on loan included in the Schedule of Investments. |
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
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Notes to Financial Statements
December 31, 2013
2. Summary of Significant Accounting Policies - (continued)
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.
The Advisor’s annual management fee for each Fund is as follows:
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Fund: | Rate: | |||
Accuvest Global Long Short ETF | 1.35 | % | ||
Accuvest Global Opportunities ETF | 0.95 | % | ||
Athena International Bear ETF | 1.35 | % | ||
Cambria Global Tactical ETF | ||||
$0 – $250,000,000 | 0.90 | % | ||
$250,000,001 – $1,000,000,000 | 0.80 | % | ||
$1,000,000,001 – $5,000,000,000 | 0.70 | % | ||
$5,000,000,001 + | 0.60 | % | ||
EquityPro ETF* | 0.80 | % | ||
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 | % | ||
Newfleet Multi-Sector Income ETF | 0.65 | % | ||
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 | % | ||
STAR Global Buy-Write ETF | 1.35 | % | ||
TrimTabs Float Shrink ETF | 0.99 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 0.75 | % |
* | Formerly known as, Global Alpha & Beta ETF. |
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Notes to Financial Statements
December 31, 2013
3. Investment Advisory Agreement and Other Agreements - (continued)
Effective December 1, 2013, Global Alpha & Beta ETF changed its name to EquityPro ETF. Prior to December 1, 2013 the Advisor's annual management fee for the Fund was as follows:
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$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 | % |
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 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 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:
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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 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.
AthenaInvest Advisors, LLC serves as investment sub-advisor to Athena International Bear ETF. They receive a sub-advisory fee at an annual fee of 0.50% based on the average daily net assets.
Cambria Investment Management, 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:
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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 | % |
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Notes to Financial Statements
December 31, 2013
3. Investment Advisory Agreement and Other Agreements - (continued)
The Elements Financial Group, LLC serves as investment sub-advisor to EquityPro ETF. They receive a sub-advisory fee at an annual fee of 0.40% based on the average daily net assets.
Prior to the change in sub-advisory agreement on December 1, 2013, EquityPro ETF (formerly known as Global Alpha & Beta ETF) was sub-advised by Your Source Financial, PLC. They received a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:
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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 Global Bond ETF and Madrona International ETF. They receive a sub-advisor fee at an annual rate based on the average daily net assets:
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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.
Newfleet Asset Management, LLC serves as the investment sub-advisor to Newfleet Multi-Sector Income ETF. They receive a sub-advisory fee at an annual fee of 0.25% based on the average daily net assets.
Peritus I Asset Management, LLC serves as the investment sub-advisor to Peritus High Yield ETF. They receive a sub-advisory fee at an annual fee of 0.75% based on the average daily net assets.
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:
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AUM Schedule: | Rate: | |||
$0 – $250,000,000 | 0.55 | % | ||
$250,000,001 + | 0.60 | % |
Ranger Alternative Management, L.P., 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.
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.
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Notes to Financial Statements
December 31, 2013
3. Investment Advisory Agreement and Other Agreements - (continued)
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.
From time to time, each sub-adviser may waive all or a portion of its fee.
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, 2013 were as follows:
![]() | ![]() | |||
Fund: | Rate: | |||
Accuvest Global Long Short ETF | 1.50 | % | ||
Accuvest Global Opportunities ETF | 1.25 | % | ||
Athena International Bear ETF | 1.50 | % | ||
Cambria Global Tactical ETF | 1.25 | % | ||
EquityPro 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 | % | ||
Newfleet Multi-Sector Income ETF | 0.75 | % | ||
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 | % | ||
STAR Global Buy-Write ETF | 1.85 | % | ||
TrimTabs Float Shrink ETF | 0.99 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 1.25 | % |
* | Formerly known as, Global Alpha & Beta ETF. |
146
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
3. Investment Advisory Agreement and Other Agreements - (continued)
For the period ended December 31, 2013, 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 Balance: | Recoupment Expiration: | |||||||||
Accuvest Global Long Short ETF | $ | 66,702 | $ | 64,292 | 06/30/2014 | |||||||
204,653 | 204,653 | 06/30/2015 | ||||||||||
83,973 | 83,973 | 06/30/2016 | ||||||||||
28,368 | 28,368 | 06/30/2017 | ||||||||||
Total Accuvest Global Long Short ETF | 383,696 | 381,286 | ||||||||||
Accuvest Global Opportunities ETF | 45,384 | 45,384 | 06/30/2015 | |||||||||
49,308 | 49,308 | 06/30/2016 | ||||||||||
31,803 | 31,803 | 06/30/2017 | ||||||||||
Total Accuvest Global Opportunities ETF | 126,495 | 126,495 | ||||||||||
Athena International Bear ETF | 52,898 | 52,898 | 06/30/2017 | |||||||||
Total Athena International Bear ETF | 52,898 | 52,898 | ||||||||||
Cambria Global Tactical ETF | 129,750 | 116,916 | 06/30/2015 | |||||||||
15,570 | 15,571 | 06/30/2016 | ||||||||||
1,698 | 1,698 | 06/30/2017 | ||||||||||
Total Cambria Global Tactical ETF | 147,018 | 134,185 | ||||||||||
EquityPro ETF | 83,603 | 83,603 | 06/30/2016 | |||||||||
43,884 | 43,884 | 06/30/2017 | ||||||||||
Total EquityPro ETF | 127,487 | 127,487 | ||||||||||
Madrona Domestic ETF | 6,733 | 6,534 | 06/30/2014 | |||||||||
30,175 | 30,175 | 06/30/2015 | ||||||||||
59,617 | 59,617 | 06/30/2016 | ||||||||||
23,704 | 23,704 | 06/30/2017 | ||||||||||
Total Madrona Do mestic ETF | 120,229 | 120,030 | ||||||||||
Madrona Global Bond ETF | 5,992 | 1,257 | 06/30/2015 | |||||||||
28,515 | 28,515 | 06/30/2016 | ||||||||||
17,238 | 17,238 | 06/30/2017 | ||||||||||
Total Madrona Global Bond ETF | 51,745 | 47,010 | ||||||||||
Madrona International ETF | 6,735 | 6,735 | 06/30/2014 | |||||||||
36,187 | 36,187 | 06/30/2015 | ||||||||||
60,597 | 60,597 | 06/30/2016 | ||||||||||
32,149 | 32,149 | 06/30/2017 | ||||||||||
Total Madrona International ETF | 135,668 | 135,668 | ||||||||||
Meidell Tactical Advantage ETF | 6,772 | 4,507 | 06/30/2014 | |||||||||
79,573 | 79,573 | 06/30/2015 | ||||||||||
119,857 | 119,857 | 06/30/2016 | ||||||||||
56,037 | 56,037 | 06/30/2017 | ||||||||||
Total Meidell Tactical Advantage ETF | 262,239 | 259,974 | ||||||||||
Newfleet Multi-Sector Income ETF | 76,615 | 76,615 | 06/30/2016 | |||||||||
27,794 | 27,794 | 06/30/2017 | ||||||||||
Total Newfleet Multi-Sector Income ETF | 104,409 | 104,409 |
147
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
3. Investment Advisory Agreement and Other Agreements - (continued)
![]() | ![]() | ![]() | ![]() | |||||||||
Fund: | Expenses Reimbursed: | Recoupment Balance: | Recoupment Expiration: | |||||||||
Pring Turner Business Cycle ETF | $ | 68,085 | $ | 68,085 | 06/30/2016 | |||||||
29,783 | 29,783 | 06/30/2017 | ||||||||||
Total Pring Turner Business Cycle ETF | 97,868 | 97,868 | ||||||||||
QAM Equity Hedge ETF | 98,205 | 98,205 | 06/30/2016 | |||||||||
38,544 | 38,544 | 06/30/2017 | ||||||||||
Total QAM Equity Hedge ETF | 136,749 | 136,749 | ||||||||||
STAR Global Buy-Write ETF | 58,584 | 57,706 | 06/30/2016 | |||||||||
3,240 | 3,240 | 06/30/2017 | ||||||||||
Total STAR Global Buy-Write ETF | 61,824 | 60,946 | ||||||||||
TrimTabs Float Shrink ETF | 66,768 | 66,768 | 06/30/2015 | |||||||||
113,494 | 113,494 | 06/30/2016 | ||||||||||
69,172 | 69,172 | 06/30/2017 | ||||||||||
Total TrimTabs Float Shrink ETF | 249,434 | 249,434 | ||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 118,635 | 114,564 | 06/30/2014 | |||||||||
214,032 | 214,032 | 06/30/2015 | ||||||||||
93,893 | 93,893 | 06/30/2016 | ||||||||||
29,541 | 29,541 | 06/30/2017 | ||||||||||
Total WCM/BNY Mellon Focused Growth ADR ETF | 456,101 | 452,030 |
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 the 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
148
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
4. Creation and Redemption Transactions - (continued)
the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
5. Summary of Fair Value Disclosure
The Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes an authoritative framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosure about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1 — unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.
Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
Level 3 — Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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.
149
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
5. Summary of Fair Value Disclosure - (continued)
The following is a summary of the inputs used as of December 31, 2013 in valuing the Funds’ assets carried at fair value:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Accuvest Global Long Short ETF | Accuvest Global Opportunities ETF | Athena International Bear ETF | Cambria Global Tactical ETF | EquityPro ETF | Global Echo ETF | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | 42,860,799 | $ | 21,228,156 | $ | — | $ | 42,548,663 | $ | 16,963,260 | $ | 1,355,816 | ||||||||||||
Common Stocks | — | — | — | — | — | 3,200,262 | ||||||||||||||||||
Money Market Funds | 465,257 | 322,564 | 1,475,113 | 2,492,551 | 471,740 | 379,635 | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Common Stocks | — | — | — | — | — | 68,974 | ||||||||||||||||||
Municipal Bonds | — | — | — | — | — | 400,000 | ||||||||||||||||||
Asset Backed Securities | — | — | — | — | — | 401,325 | ||||||||||||||||||
Commerical Mortgage Backed Securities | — | — | — | — | — | 258,350 | ||||||||||||||||||
Swaps Contracts† | 208,820 | — | — | — | — | — | ||||||||||||||||||
Investment of Cash Collateral for Securities Loaned | — | 3,342,825 | — | 6,305,550 | 855,075 | 327,399 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Common Stocks | — | — | (804,845 | ) | — | — | — | |||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Swaps Contracts† | (664,217 | ) | — | — | — | — | — | |||||||||||||||||
Total | $ | 42,870,659 | $ | 24,893,545 | $ | 670,268 | $ | 51,346,764 | $ | 18,290,075 | $ | 6,391,761 |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Madrona Domestic ETF | Madrona Global Bond ETF | Madrona International ETF | Meidell Tactical ETF | Newfleet Multi-Sector Income ETF | Peritus High Yield ETF | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | — | $ | 21,818,546 | $ | — | $ | 15,197,585 | $ | — | $ | — | ||||||||||||
Common Stocks | 21,838,133 | — | 18,515,864 | — | — | 8,618,165 | ||||||||||||||||||
Money Market Fund | 219,998 | 166,221 | ��� | 567,723 | 1,259,188 | 14,350,886 | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Corporate Bonds | — | — | — | — | 24,256,841 | 297,016,668 | ||||||||||||||||||
Foreign Bonds | — | — | — | — | 4,983,379 | 88,805,107 | ||||||||||||||||||
U.S. Treasury Notes | — | — | — | — | 7,256,531 | — | ||||||||||||||||||
U.S. Government Agency Securities | — | — | — | — | 3,217,010 | — | ||||||||||||||||||
Asset Backed Securities | — | — | — | — | 11,394,617 | — | ||||||||||||||||||
Mortgage Backed Securities | — | — | — | — | 38,299,490 | — | ||||||||||||||||||
Term Loans | — | — | — | — | 7,537,970 | 55,166,827 | ||||||||||||||||||
Investment of Cash Collateral for Securities Loaned | 189,656 | 6,707,087 | 3,986,977 | 4,095,324 | 1,133,630 | 59,608,290 | ||||||||||||||||||
Total | $ | 22,247,787 | $ | 28,691,854 | $ | 22,502,841 | $ | 19,860,632 | $ | 99,338,656 | $ | 523,565,943 |
150
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
5. Summary of Fair Value Disclosure - (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Pring Turner Business Cycle ETF | QAM Equity Hedge ETF | Ranger Equity Bear ETF | STAR Global Buy-Write ETF | TrimTabs Float Shrink ETF | WCM/BNY Mellon Focused Growth ADR ETF | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | 1,138,067 | $ | 6,472,924 | $ | — | $ | 16,699,824 | $ | — | $ | — | ||||||||||||
Exchange Traded Notes | — | 44,204 | — | — | — | — | ||||||||||||||||||
Common Stocks | 2,972,242 | — | — | — | 98,188,448 | 10,073,355 | ||||||||||||||||||
Money Market Funds | 1,107,664 | 752,139 | 7,500,000 | 3,391,161 | — | 280,769 | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
U.S. Treasury Notes | — | — | — | 29,760 | — | — | ||||||||||||||||||
Purchased Options | — | — | — | 1,999,027 | — | — | ||||||||||||||||||
Investment of Cash Collateral for Securities Loaned | 474,323 | — | — | — | 1,455,433 | 1,491,400 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | — | (428,711 | ) | — | — | — | — | |||||||||||||||||
Common Stocks | — | — | (128,728,064 | ) | — | — | — | |||||||||||||||||
Written Options | — | — | — | (137,465 | ) | — | — | |||||||||||||||||
Total | $ | 5,692,296 | $ | 6,840,556 | $ | (121,228,064 | ) | $ | 21,982,307 | $ | 99,643,881 | $ | 11,845,524 |
† | Derivative instruments, including swap contracts, are valued at the net unrealized gain (loss) on the instrument. |
There were no transfers between Level 1 and Level 2 fair value measurements that occurred during the period ended December 31, 2013.
The Funds did not hold any level 3 securities as of December 31, 2013.
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.
151
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
6. Valuation of Derivative Instruments - (continued)
At December 31, 2013, the fair values of derivative instruments were as follows:
Statement of Assets and Liabilities:
![]() | ![]() | ![]() | ||||||
Fund: | Asset Derivatives: | Equity Risk | ||||||
Accuvest Global Long Short ETF | Unrealized Appreciation on Swaps Contracts | $ | 208,820 | |||||
STAR Global Buy-Write ETF | Investments – Options Purchased | 29,760 | ||||||
$ | 238,580 |
![]() | ![]() | ![]() | ||||||
Fund: | Liability Derivatives: | Equity Risk | ||||||
Accuvest Global Long Short ETF | Unrealized Depreciation on Swaps Contracts | $ | (664,217 | ) | ||||
STAR Global Buy-Write ETF | Investments – Options Purchased | (137,465 | ) | |||||
$ | (801,682 | ) |
Transactions in derivative instruments during the period ended December 31, 2013, were as follows:
Statement of Operations:
![]() | ![]() | ![]() | ||||||
Fund: | Realized Gain (Loss): | Equity Risk | ||||||
Accuvest Global Long Short ETF | Swaps | $ | (1,573,144 | ) | ||||
QAM Equity Hedge ETF | Swaps | 7,439 | ||||||
STAR Global Buy-Write ETF | Investments – Options Purchased | (376,404 | ) | |||||
STAR Global Buy-Write ETF | Options Written | 255,078 | ||||||
$ | (1,687,031 | ) |
![]() | ![]() | ![]() | ||||||
Fund: | Change in Unrealized Gain (Loss): | Equity Risk | ||||||
Accuvest Global Long Short ETF | Swaps | $ | (1,198,812 | ) | ||||
QAM Equity Hedge ETF | Swaps | 5,101 | ||||||
STAR Global Buy-Write ETF | Investments – Options Purchased | 172,984 | ||||||
STAR Global Buy-Write ETF | Options Written | 56,390 | ||||||
$ | (964,337 | ) |
For the period ended December 31, 2013, the volume of the derivatives held by the Funds was as follows:
![]() | ![]() | ![]() | ||||||
Accuvest Global Long Short ETF | STAR Global Buy-Write ETF | |||||||
Short Equity Swaps Contracts | 2,451,608 | — | ||||||
Purchased Equity Options Contracts | — | 29,760 | ||||||
Written Equity Options Contracts | — | 137,465 |
152
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
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 (2011 – 2013), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of December 31, 2013, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examination in progress and is not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.
At December 31, 2013, the approximate 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) | Other Derivatives Net Unrealized Appreciation/(Depreciation) | |||||||||||||||
Accuvest Global Long Short ETF | $ | 40,282,023 | $ | 3,044,033 | $ | — | $ | 3,044,033 | $ | (422,397 | ) | |||||||||
Accuvest Global Opportunities ETF | 23,343,159 | 1,550,386 | — | 1,550,386 | — | |||||||||||||||
Athena International Bear ETF | 706,550 | 183 | (36,465 | ) | (36,282 | ) | — | |||||||||||||
Cambria Global Tactical ETF | 48,132,833 | 3,343,332 | (129,401 | ) | 3,213,931 | — | ||||||||||||||
EquityPro ETF | 17,937,149 | 352,926 | — | 352,926 | — | |||||||||||||||
Global Echo ETF | 5,615,455 | 821,628 | (45,322 | ) | 776,306 | — | ||||||||||||||
Madrona Domestic ETF | 16,883,959 | 5,501,878 | (138,050 | ) | 5,363,828 | — | ||||||||||||||
Madrona Global Bond ETF | 28,997,818 | 301,798 | (607,462 | ) | (305,664 | ) | — | |||||||||||||
Madrona International ETF | 20,442,213 | 2,637,118 | (576,490 | ) | 2,060,628 | — | ||||||||||||||
Meidell Tactical Advantage ETF | 19,839,785 | 20,847 | — | 20,847 | — | |||||||||||||||
Newfleet Multi-Sector Income ETF | 100,049,424 | 366,719 | (1,077,487 | ) | (710,768 | ) | — | |||||||||||||
Peritus High Yield ETF | 518,271,398 | 12,906,457 | (7,611,912 | ) | 5,294,545 | — | ||||||||||||||
Pring Turner Business Cycle ETF | 5,583,242 | 286,426 | (177,372 | ) | 109,054 | — | ||||||||||||||
QAM Equity Hedge ETF | 6,346,598 | 514,511 | (20,553 | ) | 493,958 | — | ||||||||||||||
Ranger Equity Bear ETF | (107,562,620 | ) | 167,932 | (13,833,376 | ) | (13,665,444 | ) | — | ||||||||||||
STAR Global Buy-Write ETF | 21,213,751 | 1,161,465 | (392,909 | ) | 768,556 | — | ||||||||||||||
TrimTabs Float Shrink ETF | 93,640,840 | 6,621,377 | (618,336 | ) | 6,003,041 | — | ||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 10,121,974 | 1,808,969 | (85,419 | ) | 1,723,550 | — |
153
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
7. Federal Income Tax - (continued)
Under current tax regulations, capital losses on securities transactions realized after October 31 (“Post-October Losses”) may be deferred and treated as occurring on the first business day of the following fiscal Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to defer taxable ordinary income losses incurred after December 31 and treat as occurring on the first business day of the following fiscal year. Post-October losses and ordinary income losses deferred to July 1, 2013 are as follows:
The following Funds have capital loss carryforwards available to offset future realized gains of:
![]() | ![]() | ![]() | ![]() | |||||||||
Fund | Late Year Ordinary Deferral | Short-Term Post-Effective No Expiration | Long-Term Post-October Loss | |||||||||
Accuvest Global Long Short ETF | $ | 98,523 | $ | 1,329,087 | $ | — | ||||||
Accuvest Global Opportunities ETF | — | 893,601 | — | |||||||||
Cambria Global Tactical ETF | 142,589 | 685,699 | 25,236 | |||||||||
EquityPro ETF* | — | 6,154 | — | |||||||||
Global Echo ETF | — | 13,444 | — | |||||||||
Madrona Domestic ETF | — | — | 55,559 | |||||||||
Madrona Global Bond ETF | — | 31,193 | — | |||||||||
Madrona International ETF | — | 134,152 | 6,095 | |||||||||
Meidell Tactical Advantage ETF | 437 | 177,161 | 4,123 | |||||||||
Newfleet Multi-Sector Income ETF | — | 24,578 | �� | — | ||||||||
Peritus High Yield ETF | — | — | 689,090 | |||||||||
Pring Turner Business Cycle ETF | — | 21,222 | — | |||||||||
QAM Equity Hedge ETF | 17,470 | — | 1,204 | |||||||||
Ranger Equity Bear ETF | 3,078,609 | 55,907,531 | — | |||||||||
STAR Global Buy-Write ETF | 109,831 | 117,720 | 367,877 |
* | Formerly known as, Global Alpha & Beta ETF. |
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 | $ | 4,677,321 | $ | 431,658 | $ | 5,108,979 | ||||||
Accuvest Global Opportunities ETF | 964,958 | — | 964,958 | |||||||||
Cambria Global Tactical ETF | 19,479,755 | — | 19,479,755 | |||||||||
Global Echo ETF | 54,816 | — | 54,816 | |||||||||
Madrona Domestic ETF | 1,058,754 | 180,546 | 1,239,300 | |||||||||
Madrona Global Bond ETF | — | 18,086 | 18,086 | |||||||||
Madrona International ETF | 2,103,717 | 347,684 | 2,451,401 | |||||||||
Meidell Tactical Advantage ETF | 303,291 | — | 303,291 | |||||||||
Ranger Equity Bear ETF | 35,893,824 | — | 35,893,824 | |||||||||
TrimTabs Float Shrink ETF | 44,651 | — | 44,651 | |||||||||
WCM/BNY Mellon Focused Growth ADR ETF | — | 167,157 | 167,157 |
154
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
7. Federal Income Tax - (continued)
The Funds did not have any capital loss carryforwards to offset taxable capital gains realized during the period ended July 1, 2013.
On December 22, 2010, the Regulated Investment Company (“RIC”) Modernization Act of 2010 (the “Act”), The Act permits 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 period ended December 31, 2013 are as follows:
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Affiliated Fund Name | Value at 06/30/2013 | Purchases/ Additions | Sales/ Reductions | Value at 12/31/2013 | Dividend Income | Realized Gain (Loss) | ||||||||||||||||||
Global Echo ETF | ||||||||||||||||||||||||
Ranger Equity Bear ETF | $ | 25,840 | $ | 38,196 | $ | (48,232 | ) | $ | 16,588 | $ | — | $ | (3,030 | ) | ||||||||||
Madrona Global Bond ETF | ||||||||||||||||||||||||
Peritus High Yield ETF | 2,049,143 | 566,965 | (58,152 | ) | 2,629,652 | 100,335 | 2,151 | |||||||||||||||||
Pring Turner Business Cycle ETF | ||||||||||||||||||||||||
Peritus High Yield ETF | 282,085 | 64,296 | (96,928 | ) | 259,790 | 11,385 | 2,633 |
9. Investment Transactions
Purchases and sales of investments for the period ended December 31, 2013 are as follows:
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Purchases | Sales | |||||||||||||||||||||||
Fund | Long Term | U.S. Government | In-Kind | Long Term | U.S. Government | In-Kind | ||||||||||||||||||
Accuvest Global Long Short ETF | $ | 63,554,361 | $ | — | $ | 35,543,707 | $ | 53,234,449 | $ | — | $ | 39,462,100 | ||||||||||||
Accuvest Global Opportunities ETF | 19,041,364 | — | 12,979,010 | 18,876,708 | — | 11,013,575 | ||||||||||||||||||
Athena International Bear ETF | 5,553,365 | — | — | 6,169,015 | — | — | ||||||||||||||||||
Cambria Global Tactical ETF | 68,227,354 | — | — | 59,531,489 | — | 6,989,373 | ||||||||||||||||||
EquityPro ETF | 1,606,437 | — | 16,569,793 | 1,461,955 | — | 1,416,917 | ||||||||||||||||||
Global Echo ETF | 3,401,001 | — | — | 3,311,214 | — | — | ||||||||||||||||||
Madrona Domestic ETF | 4,572,152 | — | — | 2,352,580 | — | 2,187,966 | ||||||||||||||||||
Madrona Global Bond ETF | 1,510,645 | — | — | 1,510,585 | — | 622,921 | ||||||||||||||||||
Madrona International ETF | 15,474,332 | — | 662,922 | 15,407,348 | — | — | ||||||||||||||||||
Meidell Tactical Advantage ETF | 35,720,409 | — | 19,452,330 | 32,653,452 | — | 14,210,565 | ||||||||||||||||||
Newfleet Multi-Sector Income ETF | 31,261,025 | 7,745,231 | — | 16,558,628 | 7,687,249 | — | ||||||||||||||||||
Peritus High Yield ETF | 296,915,873 | — | — | 108,883,906 | — | — | ||||||||||||||||||
Pring Turner Business Cycle ETF | 1,110,512 | — | 965,499 | 799,277 | — | 1,426,733 | ||||||||||||||||||
QAM Equity Hedge ETF | 6,367,915 | — | 1,109,334 | 4,783,731 | — | — | ||||||||||||||||||
Ranger Equity Bear ETF | 573,196,031 | — | — | 447,726,437 | — | — | ||||||||||||||||||
STAR Global Buy-Write ETF | 12,119,123 | — | 2,458,496 | 12,148,920 | — | 1,501,885 |
155
ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
9. Investment Transactions - (continued)
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Purchases | Sales | |||||||||||||||||||||||
Fund | Long Term | U.S. Government | In-Kind | Long Term | U.S. Government | In-Kind | ||||||||||||||||||
TrimTabs Float Shrink ETF | $ | 6,202,675 | $ | — | $ | 185,132,102 | $ | 25,969,633 | $ | — | $ | 103,181,356 | ||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 1,621,021 | — | 3,471,002 | 1,581,251 | — | 1,643,257 |
Options written transactions, during the period ended December 31, 2013, were as follows:
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STAR Global Buy-Write ETF | Contracts | Premiums Paid/Received | ||||||
Options outstanding at June 30, 2013 | 2,592 | $ | 241,514 | |||||
Options written | 5,671 | 512,539 | ||||||
Options terminated in closing purchase transactions | (3,015 | ) | (298,582 | ) | ||||
Options expired | (3,932 | ) | (336,092 | ) | ||||
Options outstanding at December 31, 2013 | 1,316 | $ | 119,379 |
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.
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.
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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013
10. Risks Involved with Investing in the Funds - (continued)
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 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.
On January 31, 2013, FASB issued Accounting Standards Update No. 2013-01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”). ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to the following financial instruments, to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement: (i) recognized derivative instruments accounted for under ASC 815 (Derivatives and Hedging); (ii) repurchase agreements and reverse repurchase agreements; and (iii) securities borrowing and securities lending transactions. The disclosures are required irrespective of whether the transactions are offset in the statement of assets and liabilities. The effective date and transition of the disclosure requirements in ASU 2011-11 remain unchanged.
At this time, management is evaluating the implications of ASU 2011-11 and ASU 2013-01 and their impact on the Trust’s financial statements.
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.
157
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.
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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 | Chief Executive Officer, Principal Financial Officer and President of AdvisorShares Trust (2006 – present); Chief Executive Officer, President 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/Chief Operating Officer of NADA Retirement Administrators, Inc. (2009 – present); President of Cardinal Trust and Investments; Chief Investment Officer 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 | Chief Executive Officer, Principal Financial Officer and President of AdvisorShares Trust (2006 – present); Chief Executive Officer, President and 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 |
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ADVISORSHARES TRUST
Board of Trustees and Officers (Unaudited) (continued)
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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 | ||||
Dan Ahrens 4144 N. Central Expressway, Suite 600, Dallas, TX 75204 (1966) | Chief Compliance Officer, Secretary & Treasurer, No set term; served since 2009 | Executive Vice President of AdvisorShares Investments, LLC (2008 – present); President of Ahrens Advisors, LP (2005 – 2008); President of Mutuals Advisors, Inc. & Mutuals.com Funds (2003 – 2005). | 18 | None |
* | Mr. Hamman is an “interested” person of the Trust, as that term is defined in the 1940 Act, by virtue of his ownership and controlling interest in the Advisor. |
159
Board Review of Investment Advisory and Sub-Advisory Agreements
Renewal of the Sub-Advisory Agreements for AdvisorShares Cambria Global Tactical ETF, AdvisorShares Ranger Equity Bear ETF, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF, AdvisorShares Madrona Domestic ETF, AdvisorShares Madrona International ETF, AdvisorShares Madrona Global Bond ETF, AdvisorShares Global Echo ETF, AdvisorShares QAM Equity Hedge ETF, and AdvisorShares STAR Global Buy-Write ETF
At meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on August 6, 2013 and November 13, 2013 (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”), on behalf of certain series of the Trust (each, a “Fund” and collectively, the “Funds”), between AdvisorShares Investments, LLC (the “Advisor”) and (1) Cambria Investment Management, L.P., on behalf of the AdvisorShares Cambria Global Tactical ETF, (2) Ranger Alternative Management, L.P., on behalf of the AdvisorShares Ranger Equity Bear ETF, (3) WCM Investment Management, on behalf of the AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF, (4) Madrona Funds, LLC, on behalf of the AdvisorShares Madrona Domestic ETF, AdvisorShares Madrona International ETF and AdvisorShares Madrona Global Bond ETF, (5) First Affirmative Financial Network LLC, Baldwin Brothers Inc., Community Capital Management, Inc., and Reynders, McVeigh Capital Management LLC, on behalf of the AdvisorShares Global Echo ETF, (6) Commerce Asset Management, LLC, on behalf of the AdvisorShares QAM Equity Hedge ETF, and (7) Partnervest Advisory Services, on behalf of the AdvisorShares STAR Global Buy-Write 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, as applicable.
Pursuant to Section 15(c) of the 1940 Act, the Board must annually review and approve the 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 the 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 decide whether to renew the Sub-Advisory Agreements for an additional year.
Prior to the 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; (iv) the respective personnel and operations of the Sub-Advisor; (v) the extent to which economies of scale would be realized as each Fund grows; and (vi) whether fee levels reflect the sharing of 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 service providers to the Funds, 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. 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
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Board Review of Investment Advisory and Sub-Advisory Agreements - (Continued)
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 that was all-important, controlling or determinative of its decision.
Nature, Extent and Quality of Services
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 Form ADV for each Sub-Advisor was also provided to the Board, as were the responses of each Sub-Advisor to a detailed series of questions which requested, 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 quality of personnel, operations, and financial condition, 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.
Performance of the Funds
The Board was provided with information regarding each Fund’s performance since the Sub-Advisory Agreements were last approved, as well as information regarding each Fund’s performance since its inception. Each Sub-Advisor provided information regarding factors impacting the performance of the Funds, outlining current market conditions, and explaining its 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 the Funds.
Cost of Advisory Services, Profitability and Economies of Scale
In concluding that the sub-advisory fees payable with respect to each Fund are reasonable, the Board reviewed a report of the sub-advisory fees paid by the Advisor to each Sub-Advisor, the fees and expenses waived and/or reimbursed by each Sub-Advisor over the period, the costs and other expenses incurred by each Sub-Advisor in providing advisory services, and the profitability analysis with respect to each Fund. The Board also reviewed reports comparing the advisory fees paid by each Fund to those paid by comparable funds and noted that each Fund’s advisory fees were consistent with the range of advisory fees paid by other peer funds. The Board concluded for each Fund that the advisory fees 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 significant economies of scale had yet been achieved.
Conclusion
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 AdvisorShares Athena International Bear ETF and AdvisorShares EquityPro ETF
At meetings of the Board held on July 1, 2013 and November 13, 2013 (together, the “Meetings”), the Board considered the approval of the investment advisory agreement (the “Advisory Agreement”)
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Board Review of Investment Advisory and Sub-Advisory Agreements - (Continued)
between the Trust and AdvisorShares Investments, LLC (the “Advisor”), for an initial term of two years, on behalf of the AdvisorShares Athena International Bear ETF and AdvisorShares EquityPro ETF (formerly Global Alpha & Beta ETF) (each, a “Fund,” and collectively, the “Funds”). The Board also considered the approval of separate sub-advisory agreements (collectively, the “Sub-Advisory Agreements,” and together with the Advisory Agreement, the “New Agreements”) between the Advisor and (1) AthenaInvest Advisors LLC (“AthenaInvest”), on behalf of the AdvisorShares Athena International Bear ETF and (2) The Elements Financial Group LLC (together with AthenaInvest, the “Sub-Advisors,” and, collectively with AthenaInvest and the Advisor, the “Advisors”), on behalf of the AdvisorShares EquityPro ETF, pursuant to which the Sub-Advisors perform portfolio management and related services for the Funds, as applicable.
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 that it considered relevant to its consideration 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 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 considered and the conclusions that the Trustees, in their business judgment, reached were 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 Meetings are addressed in more detail below.
Nature, Quality, and Extent of Services
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 reviewed information set forth in each firm’s Form ADV, which provides information about the firm, its management, and its
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Board Review of Investment Advisory and Sub-Advisory Agreements - (Continued)
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. The Board considered the professional experience and qualifications of each Sub-Advisor’s senior management and key professional personnel, including those individuals responsible for portfolio management. The Board also considered each Sub-Advisor’s operational capabilities and resources, and its depth and breadth of experience in managing investment portfolios. Based on its review, the Board determined that the Advisor, the Sub-Advisors and their respective personnel were well-qualified to provide all required services to the Funds and to provide services that are of high quality, and that each firm has appropriate resources to provide such services.
Performance
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 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 arrangements to waive a portion of its advisory fee and/or reimburse expenses 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
The Board concluded that economies of scale would not likely be realized during the initial term of the New Agreements 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 any Funds, the Board determined to reassess whether the investment advisory and sub-advisory fees paid to the Advisor and the Sub-Advisors appropriately took into account any economies of scale that had been realized as a result of that growth.
Conclusion
Based on its deliberations and 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 the Advisor’s fee is fair and reasonable in light of the services that it will provide to the Funds; (iii) concluded that the fees for each Sub-Advisor are each fair and reasonable in light of the services that each Sub-Advisor will provide to its respective Fund; and (iv) agreed to approve the New Agreements for initial terms of two years.
163
SUPPLEMENTAL INFORMATION
Shareholder Reports and Quarterly Portfolio Disclosure
The Fund is required to file their complete schedule of portfolio holdings with the SEC for their first and third quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating fee to the SEC’s Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically to publicinfosec.gov.
The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Trustees and Officers and is available without charge upon request. Contact your financial representative for a free prospectus or SAI.
Premium/Discount Information
Information about the differences between the daily market price on the secondary market for the shares of a Fund and the Fund’s net asset value may be found on the Fund’s website at http://www.advisorshares.com.
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ADVISORSHARES TRUST
Investment Advisor
AdvisorShares Investments, LLC
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814
Sub-Advisor
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
Newfleet Asset Management, LLC
100 Pearl Street
Hartford, Connecticut 06103
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
Commerce Asset Management, LLC
6075 Poplar Avenue, Suite 700
Memphis, TN 38119
The Elements Financial Group, LLC
19200 Von Karman Avenue, Suite 800
Irvine, CA 92612
AthenaInvest, Inc.
5340 South Quebec Street, Suite 365-N
Greenwood Village, CO 80111
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. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
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 (Signature and Title)* | /s/ Noah Hamman | |
Noah Hamman, Chief Executive Officer | ||
(principal executive officer) |
Date | 02/26/14 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Noah Hamman | |
Noah Hamman, Chief Executive Officer | ||
(principal executive officer) |
Date | 02/26/14 |
By (Signature and Title)* | /s/ Dan Ahrens | |
Dan Ahrens, Treasurer | ||
(principal financial officer) |
Date | 02/26/14 |
* Print the name and title of each signing officer under his or her signature.