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: June 30, 2014
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
Annual Report
June 30, 2014
TABLE OF CONTENTS
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC
June 30, 2014
Thank you for being a shareholder of AdvisorShares ETFs. Our continued goal is to offer investors access to what we believe are talented portfolio managers who manage compelling investment strategies wrapped in an innovative format that provides transparency, intra-day liquidity, and an efficient operating structure. We are pleased to offer you our 2014 annual report.
As you can see from exhibit 1 below, we had a very successful year, more than doubling our assets with almost $2 Billion under management as of June 30, 2014. This is a testament to the faith you, our shareholders have placed in us, plus the growing acceptance of the benefits active ETFs offer investors, along with the largely positive alpha-producing results our portfolio managers were able to achieve, and the hard work of each and every AdvisorShares employee.
Exhibit 1
As of June 30, 2014 I Source: AdvisorShares
AdvisorShares also offers investors the largest number of actively managed ETFs in the market, with 24 ETFs trading today on both the NYSE Arca and NASDAQ exchanges (see exhibit 2). We continue to see investors utilize the potential benefits that active ETFs provide as a part of their overall asset allocation. We actively seek out investment managers who offer interesting active strategies so that we can provide you with a wide variety of ETFs to choose from, to help you meet and exceed your investment goals.
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ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC (Continued)
June 30, 2014
Exhibit 2 As of June 30, 2014 I Source: AdvisorShares |
During this past year, we launched the following innovative actively managed ETFs:
• | HOLD — AdvisorShares Sage Core Reserves ETF (Core Ultra Low Duration Income Strategy) |
• | GYEN, GGBP, GEUR & GLDE ETFs — (Alternative Currency Hedged Commodity Strategies) |
º | GYEN — AdvisorShares Gartman Gold/Yen ETF |
º | GGBP — AdvisorShares Gartman Gold/British Pound ETF |
º | GEUR — AdvisorShares Gartman Gold/Euro ETF |
º | GLDE — AdvisorShares International Gold ETF |
• | HDGI — AdvisorShares Athena International Bear ETF (Alternative Short International Equity Strategy) |
• | YPRO — AdvisorShares YieldPro ETF (Core Alternative Income Strategy) |
We look forward to continuing to offer you new innovative managers and strategies in the market place in the coming year, and will maintain our transparency to you through our regular communications, so you will know what our managers are doing and why with the assets you have entrusted to them. We appreciate the continued trust and confidence that you, our shareholders, have given to us.
Best Regards,
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
2
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC (Continued)
June 30, 2014
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 June 30, 2014 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.
3
ADVISORSHARES TRUST
AdvisorShares Accuvest Global Long Short ETF (AGLS)
The one year ending June 30, 2014 was characterized by generally positive performance for world equities. The AdvisorShares Accuvest Global Long Short ETF (NYSE Arca: AGLS) was down 5.73% on a Market Price basis and down 5.08% on an NAV basis while the MSCI World Index was up 24.05%. The three largest country allocations in the ACWI index, the United States at 49%, the United Kingdom at 8%, and Japan at 7%, returned 25%, 26.8%, and 10.1%, during the last year respectively. The average country return in the ACWI index was 21.5% during the reporting period, while the average country return for AGLS’ investible universe was 19.3%. The top performing countries for the year include Spain, Greece, Italy, South Africa, Norway, and India. While countries that struggled over the last 12 month include Thailand, Chile, Mexico, Indonesia, Turkey, Russia, and Malaysia.
Performance for the AdvisorShares Accuvest Global Long Short ETF (NYSE Arca: AGLS) was below that of the ACWI benchmark. Underperformance was primarily driven by a tendency for strong performance in countries with high risk profiles, countries with relatively weak growth fundamentals, and countries with above average valuations. A portfolio of countries with great fundamentals, low risk, and attractive valuations underperformed the market dramatically. Specifically, periodic long allocations to Russia, China, and Malaysia and short allocations to Italy, Spain and South Africa negatively impacted ACCU performance over the last 12 months. Conversely, periodic long allocations to Germany and the Netherlands, as well as, short allocations to Austria, Brazil, Mexico, and Chile positively benefited performance. The Fund had a significant underweight to the US (despite consistently high rankings) because the Fund’s maximum portfolio weight to any single country is 25%, while the ACWI benchmark carries a 49% weight to the US. AGLS will always be structurally underweight the US equities and structurally overweight international equities.
A long position is the purchase of an investment with the expectation that it will rise in value.
A short position is the sale of a borrowed investment with the expectation that it will decline in value.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 9, 2010* to June 30, 2014
4
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 7/9/2010 | |||||||||||||||||||
AdvisorShares Accuvest Global Long Short ETF NAV | -0.24 | % | -0.53 | % | -6.71 | % | -5.08 | % | 0.27 | % | -4.25 | % | ||||||||||||
AdvisorShares Accuvest Global Long Short ETF Market Price** | -0.29 | % | -0.48 | % | -6.67 | % | -5.73 | % | 0.27 | % | -4.25 | % | ||||||||||||
MSCI World Index (Net) | 1.79 | % | 4.86 | % | 6.18 | % | 24.05 | % | 11.81 | % | 15.11 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 4.57% and the net expense ratio is 4.28%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot invest directly in an index.
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ADVISORSHARES TRUST
AdvisorShares Accuvest Global Opportunities ETF (ACCU)
The one year ending June 30, 2014 was characterized by generally positive performance for world equities. The AdvisorShares Accuvest Global Opportunities ETF (NYSE Arca: ACCU) was up 4.83% on a Market Price Basis and 4.89% on an NAV basis while the MSCI All Country World Index (ACWI) was up 22.95%. The three largest country allocations in the ACWI Index, the United States at 49%, the United Kingdom at 8%, and Japan at 7%, returned 25.0%, 26.8%, and 10.1%, during the last year respectively. The average country return in the ACWI index was 21.5% during the reporting period, while the average country return for ACCU’s investible universe was 19.3%. The top performing countries for the year include Spain, Greece, Italy, South Africa, Norway, and India. While countries that struggled over the last 12 month include Thailand, Chile, Mexico, Indonesia, Turkey, Russia, and Malaysia.
Performance for the AdvisorShares Accuvest Global Opportunities ETF (NYSE Arca: ACCU) was below that of the ACWI benchmark. Underperformance was primarily driven by a tendency for strong performance in countries with high risk profiles, countries with relatively weak growth fundamentals, and countries with above average valuations. A portfolio of countries with great fundamentals, low risk, and attractive valuations underperformed the market dramatically. Specifically, periodic overweight allocations to Russia, China, and Malaysia and underweight allocations to the United States, Italy, Spain and South Africa negatively impacted ACCU performance over the last 12 months. Conversely, periodic overweight allocations to Germany and the Netherlands, as well as, underweight allocations to Austria, Brazil, Mexico, and Chile positively benefited performance. The Fund had a significant underweight to the US (despite consistently high rankings) because the Fund’s maximum portfolio weight to any single country is 25%, while the ACWI benchmark carries a 49% weight to the US.ACCU will always be structurally underweight the US equities and structurally overweight international equities.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 25, 2012* to June 30, 2014
6
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 1/25/2012 | ||||||||||||||||
AdvisorShares Accuvest Global Opportunities ETF NAV | 0.04 | % | 2.65 | % | -3.68 | % | 4.89 | % | 4.78 | % | ||||||||||
AdvisorShares Accuvest Global Opportunities ETF Market Price** | 0.00 | % | 2.46 | % | -3.23 | % | 4.83 | % | 4.75 | % | ||||||||||
MSCI All Country World Index (Net) | 1.88 | % | 5.04 | % | 6.18 | % | 22.95 | % | 15.94 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.10% and the net expense ratio is 1.81%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI All Country World Index ex USA is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. One cannot invest directly in an index.
7
ADVISORSHARES TRUST
AdvisorShares Athena International Bear ETF (HDGI)
Since its July 18, 2013 inception, the AdvisorShares Athena International Bear ETF (NYSE Arca: HDGI) has declined -18.48% on a Market Price basis and -18.40% on an NAV basis in the period ending June 30, 2014, compared with a gain of the MSCI ACWI of 16.07%. As a short-only investment vehicle HDGI seeks to outperform peers and relevant benchmarks on a relative basis during bull markets. During down markets and/or highly volatile market conditions characterized by fear and uncertainty, HDGI seeks to generate positive results and outperform peers and relevant benchmarks on both a relative and absolute basis.
Since its inception, HDGI has experienced strong bull markets around the world. Central banks have remained accommodative, creating fertile ground for continued growth in equity values. The political environment has not been so favorable, with an arc of instability growing across Eurasia and the Middle East. Some commentators are comparing this time period to that of 1970’s which wars and an oil embargo emerge in this part of the world. But in spite of this increased turmoil, international equity markets have continued to march upwards.
The latter half of 2013 was characterized by a strong small company effect while the first part of 2014 witnessed a large company effect. Market capitalization portfolio weighting works best with a small firm effect, so since we are now witnessing just opposite, HDGI has moved to equal weighting.
Shorting costs for the stocks meeting our screens have increased in recent months. In fact, increased shorting costs for stocks currently held is now the primary reason for a buy to cover decision. In spite of this, we have been able to keep cost below 3% for each individual stock, with over 75% shorted at the lowest general borrowing cost of 50 basis points (0.50%).
A short position is the sale of a borrowed investment with the expectation that it will decline in value.
A Bull Market is a financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.
Shorting cost is the expense paid the short seller to maintain a short position.
A Buy To Cover is a buy order made on a stock or other listed security that closes out an existing short position.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 18, 2013* to June 30, 2014
8
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
1 Month | 3 Month | Year to Date | Since Inception 7/18/2013 | |||||||||||||
AdvisorShares Athena International Bear ETF NAV | -2.25 | % | -7.48 | % | -9.61 | % | -18.40 | % | ||||||||
AdvisorShares Athena International Bear ETF Market Price** | -2.53 | % | -7.62 | % | -9.50 | % | -18.48 | % | ||||||||
MSCI All Country World Index ex USA | 1.68 | % | 5.03 | % | 5.56 | % | 16.07 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.11% and the net expense ratio is 2.00%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI All Country World Index ex USA is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. One cannot invest directly in an index.
9
ADVISORSHARES TRUST
AdvisorShares Cambria Global Tactical ETF (GTAA)
The AdvisorShares Cambria Global Tactical ETF (NYSE Arca: GTAA) returned a 9.96% on a Market Price basis and 10.13% on an NAV basis from July 1, 2013 through June 30, 2014 as compared to 24.61% for the S&P 500.
Although GTAA underperformed the S&P 500 its return in the first half of calendar year 2014 was far better than the result from the second half of calendar year 2013. Of 2013 large cap domestic indexes were the best performers by a wide margin and so a multi asset fund is unlikely to keep up in that environment.
Turning the page to 2014 and performance dispersion among the various asset classes has narrowed creating a more favorable environment for the fund. Years like 2013 are more the exception than the rule and we look forward to a more favorable environment for GTAA going forward and believe that GTAA can provide its benefit in declining markets by assuming a defensive posture and utilizing cash as an alternative to its holdings.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 26, 2010* to June 30, 2014
10
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 10/26/2010 | |||||||||||||||||||
AdvisorShares Cambria Global Tactical ETF NAV | 1.16 | % | 2.83 | % | 5.22 | % | 10.13 | % | 1.39 | % | 2.26 | % | ||||||||||||
AdvisorShares Cambria Global Tactical ETF Market Price** | 1.00 | % | 2.95 | % | 5.19 | % | 9.96 | % | 1.33 | % | 2.22 | % | ||||||||||||
S&P 500 Index | 2.07 | % | 5.23 | % | 7.14 | % | 24.61 | % | 16.58 | % | 17.13 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.59%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
11
ADVISORSHARES TRUST
AdvisorShares EquityPro ETF (EPRO)
The AdvisorShares EquityPro ETF (NYSE Arca: EPRO) returned 8.17% on a Market Price basis, and 7.28% on an NAV basis since the portfolio manager change on December 1, 2013 through June 30, 2014 compared to 8.51% for the S&P 500 Index. EPRO’s non-U.S. equity exposure served as the largest detractor in against the benchmark as U.S. markets outperformed. Given EPRO’s global posture, a comparison to the MSCI World Index, which returned 8.42% December 1, 2013 through June 30, 2014, provides additional perspective. The fund’s sector selection was the greatest contributor to relative portfolio performance against the MSCI World Index, as the fund’s overweight to Utilities and Healthcare, as well as its underweight to Financials strongly contributed to performance. On the flip side, the fund’s overweight to Telecommunication Services and Materials detracted from relative performance.
Since the portfolio manager change on December 1, 2013, we have witnessed an environment which was beneficial to stocks and bonds alike. The S&P 500 Index hit historically low levels of volatility as of 06/30/14, exhibiting an annual standard deviation of daily returns of approximately 10%, which compares to a historical average of over 16%. The last time equity markets exhibited this type of calm was the 2006/2007 period leading into the last financial crisis. The signs of complacency that usually serve as a precursor to market corrections (narrow credit spreads, low equity volatility, excessive risk taking, higher leverage, irresponsible lending) are sounding alarm bells.
Although we recognize the risks that exist in securities markets today, EPRO remains 98% invested in global equities through our strategic allocation which is, by default, defensively positioned among sectors. No sectors are tactically underweight to the strategic allocation currently. Given the structured nature of our investment process, we observe that the S&P 500 Index continues to trade above its 200-day moving average by approximately 7%, and no part of the U.S. Treasury yield curve is inverted, so we remain fully exposed to equities going into the second half of 2014. Nonetheless, our process is structured with the flexibility to reduce risk in severe down markets if one of the two aforementioned criteria is triggered.
The MSCI World Index is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.
Standard Deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.
Credit Spread is the spread between Treasury securities and non-Treasury securities that are identical in all respects except for quality rating.
The 200-day moving average is an indicator used by traders to determine a stock’s closing average over a period of 200 consecutive days. Most traders use this technical indicator to determine trends in the market.
A Yield Curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The most frequently reported yield curve compares the three-month, two-year, five-year and 30-year U.S. Treasury debt. This yield curve is used as a benchmark for other debt in the market, such as mortgage rates or bank lending rates. The curve is also used to predict changes in economic output and growth.
12
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 10, 2012* to June 30, 2014
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 7/10/2012 | ||||||||||||||||||||
AdvisorShares EquityPro ETF NAV | 1.78 | % | 5.04 | % | 6.40 | % | 19.71 | % | 14.53 | % | ||||||||||||||
AdvisorShares EquityPro ETF Market Price** | 1.65 | % | 5.04 | % | 7.55 | % | 19.76 | % | 14.53 | % | ||||||||||||||
S&P 500 Index | 2.07 | % | 5.23 | % | 7.14 | % | 24.61 | % | 23.85 | % | ||||||||||||||
MSCI World Index (Net) | 1.79 | % | 4.86 | % | 6.18 | % | 24.05 | % | 22.44 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 6.98% and the net expense ratio is 1.48%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
13
ADVISORSHARES TRUST
AdvisorShares Gartman Gold/British Pound ETF (GGBP)
Inception for the AdvisorShares Gartman Gold/British Pound ETF (NYSE Arca: GGBP) was 2/11/14. The fund provides investors exposure to the gold bullion market, priced in British pound terms. Since inception the fund has declined -1.48% on a Market Price basis and -1.88% on a NAV basis. Over the same period the benchmark for the fund, the Spot price of Gold has returned 2.22%.
Having suffered steep declines for much of 2013 the gold price in dollar terms has risen modestly since the inception date of the fund. This has been driven by a number of factors. US inflation-adjusted interest rates have continued to trend lower which has been supportive for gold prices and the large investor driven outflows from the gold market seen in the latter half of 2013 have reversed. While investor flows into Exchange Traded Products (ETPs) have fluctuated between positive and negative, flows into gold linked futures were very strong, totaling approximately 360 metric tonnes. However with the UK experiencing strong Gross Domestic Product (GDP) growth (in contrast to the Euro area) the pound has been very strong on currency markets, particularly versus the dollar. Since inception to the end of June 2014, the pound has strengthened by over 4% versus the dollar which has detracted from fund performance and led to the fund’s underperformance relative to its benchmark. Looking forward with US real interest rates still at very low levels and monetary policy in the US and UK both poised to become tighter on a similar trajectory we would expect the price of gold in British pound terms to remain supported at current levels.
A Gold Future is an agreement to buy and sell quantities of gold on a particular date in the future at a fixed price.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014
14
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | |||||||||
1 Month | 3 Month | Since Inception 2/11/2014 | ||||||||||
AdvisorShares Gartman Gold/British Pound ETF NAV | 4.06 | % | 0.16 | % | -1.88 | % | ||||||
AdvisorShares Gartman Gold/British Pound ETF Market Price** | 4.30 | % | -0.32 | % | -1.48 | % | ||||||
Spot Gold – London Bullion Market Association | 5.16 | % | 1.80 | % | 2.22 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.70% and the net expense ratio is 0.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The spot price of Gold is valued on the basis of each day's 3 pm London time announced price for an ounce of gold set by five market members of the London Bullion Market Association. One cannot invest directly in an index.
15
ADVISORSHARES TRUST
AdvisorShares Gartman Gold/Euro ETF (GEUR)
Inception for the AdvisorShares Gartman Gold/Euro ETF (NYSE Arca: GEUR) was 2/11/14. The fund provides investors exposure to the gold bullion market, priced in euro terms. Since inception the fund has returned 2.11% on a Market Price basis and 1.72% on an NAV basis. Over the same period the benchmark for the fund, the Spot price of Gold has returned 2.22%.
Having suffered steep declines for much of 2013 the gold price in dollar terms has risen modestly since the inception date of the fund. This has been driven by a number of factors. US inflation-adjusted interest rates have continued to trend lower which has been supportive for gold prices and the large investor driven outflows from the gold market seen in the latter half of 2013 have reversed. While investor flows into Exchange Treaded Products (ETPs) have fluctuated between positive and negative, flows into gold linked futures were very strong, totaling approximately 360 metric tonnes.
Also of note the European Union, facing joint challenges from very weak Gross Domestic Product (GDP) growth and slowing inflation prompted the European Central Bank (ECB) to cut interest rates in June 2014 and announce a number of new measures to combat the economic malaise. These have weighed on the value of the euro versus the dollar reversing much of the strength seen in the euro since the start of the year and has added measurably to positive fund performance. The ECB has also became increasingly vocal about it concerns over the negative impact a strong euro is having on economic growth and this would be expected to further weigh on the value of the euro in currency markets over the next year. Looking forward, with US real interest rates still at very low levels and monetary policy in the US becoming tighter relative to monetary policy in the European Union, we would expect the price of gold in euro terms to remain supported at current levels.
A Gold Future is an agreement to buy and sell quantities of gold on a particular date in the future at a fixed price.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014
16
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | |||||||||
1 Month | 3 Month | Since Inception 2/11/2014 | ||||||||||
AdvisorShares Gartman Gold/Euro ETF NAV | 5.60 | % | 3.42 | % | 1.72 | % | ||||||
AdvisorShares Gartman Gold/Euro ETF Market Price** | 9.56 | % | 3.89 | % | 2.11 | % | ||||||
Spot Gold – London Bullion Market Association | 5.16 | % | 1.80 | % | 2.22 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.70% and the net expense ratio is 0.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The spot price of Gold is valued on the basis of each day's 3 pm London time announced price for an ounce of gold set by five market members of the London Bullion Market Association. One cannot invest directly in an index.
17
ADVISORSHARES TRUST
AdvisorShares Gartman Gold/Yen ETF (GYEN)
Inception for the AdvisorShares Gartman Gold/Yen ETF (NYSE Arca: GYEN) was 2/11/14. The fund provides investors exposure to the gold bullion market, priced in Japanese yen terms. Since inception the fund has returned 1.88% on a Market Price basis and 1.09% on an NAV basis. Over the same period the benchmark for the fund, the Spot price of Gold has returned 2.22%.
Having suffered steep declines for much of 2013 the gold price in dollar terms has risen modestly since the inception date of the fund. This has been driven by a number of factors. US inflation-adjusted interest rates have continued to trend lower which has been supportive for gold prices and the large investor driven outflows from the gold market seen in the latter half of 2013 have reversed. While investor flows into Exchange Traded Products (ETPs) have fluctuated between positive and negative, flows into gold linked futures were very strong, totaling approximately 360 metric tonnes.
In April 2013, in response to continued deflation in the Japanese economy, the Bank of Japan announced a substantial increase in its asset purchase program. While this initially led to a significantly weaker yen versus the dollar, since the start of 2014 the yen has reversed and strengthened marginally versus the dollar perhaps an inevitable pause in the dramatic weakness seen in the prior two years. Looking forward with US real interest rates still at very low levels and monetary policy in the US becoming tighter relative to monetary policy in Japan, we would expect the price of gold in yen terms to remain supported at current levels.
A Gold Future is an agreement to buy and sell quantities of gold on a particular date in the future at a fixed price.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014
18
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | |||||||||
1 Month | 3 Month | Since Inception 2/11/2014 | ||||||||||
AdvisorShares Gartman Gold/Yen ETF NAV | 5.72 | % | 0.86 | % | 1.09 | % | ||||||
AdvisorShares Gartman Gold/Yen ETF Market Price** | 5.84 | % | 1.80 | % | 1.88 | % | ||||||
Spot Gold – London Bullion Market Association | 5.16 | % | 1.80 | % | 2.22 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.70% and the net expense ratio is 0.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The spot price of Gold is valued on the basis of each day's 3 pm London time announced price for an ounce of gold set by five market members of the London Bullion Market Association. One cannot invest directly in an index.
19
ADVISORSHARES TRUST
AdvisorShares Global Echo ETF (GIVE)
The AdvisorShares Global Echo ETF (NYSE Arca: GIVE) returned 12.75% on a Market Price basis and 13.03% on an NAV basis from July 1, 2013 through June 30, 2014 compared to 24.05% for the MSCI World Index and 4.37% for the Barclays Capital U.S. Aggregate Bond Index.
GIVE is a multi-asset class fund that applies an active tactical overlay that can invest in inverse and bear market ETFs to potentially profit from market downturns, thus dampening overall portfolio volatility all while investing only sustainable investment themes.
GIVE is also a multi-manager fund with each of the four managers having roughly equal 25% allocations. First Affirmative has the dual role of managing the long/short portion of the fund as well as serving as the allocation manager. In the past year there were no allocation changes implemented.
A Bear Market is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor’s 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market.
A long position is the purchase of an investment with the expectation that it will rise in value.
A short position is the sale of a borrowed investment with the expectation that it will decline in value.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period May 23, 2012* to June 30, 2014
20
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 5/23/2012 | ||||||||||||||||
AdvisorShares Global Echo ETF NAV | 1.98 | % | 1.42 | % | 1.46 | % | 13.03 | % | 10.55 | % | ||||||||||
AdvisorShares Global Echo ETF Market Price** | 1.91 | % | 1.10 | % | 1.42 | % | 12.75 | % | 10.56 | % | ||||||||||
MSCI World Index (Net) | 1.79 | % | 4.86 | % | 6.18 | % | 24.05 | % | 22.57 | % | ||||||||||
Barclays Capital U.S. Aggregate Bond Index | 0.05 | % | 2.04 | % | 3.93 | % | 4.37 | % | 1.96 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.61%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot invest directly in an index.
The Barclays Capital U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.
21
ADVISORSHARES TRUST
AdvisorShares International Gold ETF (GLDE)
Inception for the AdvisorShares International Gold ETF (NYSE Arca: GLDE) was 2/11/14. The fund seeks to provide investors exposure to the gold bullion market, priced in a combination of currencies including the US dollar, euro, Japanese yen and British pound. The fund maintains positions in the affiliated AdvisorShares Gartman ETFs which are AdvisorShares Gartman Gold/Euro ETF (NYSE Arca: GEUR), AdvisorShares Gartman Gold/Yen ETF (NYSE Arca: GYEN) and AdvisorShares Gartman Gold/British Pound ETF (NYSE Arca: GGBP) as well a number of the other gold backed Exchange Traded Products (ETPs). Since inception the fund has declined -0.16% on a Market Price basis and gained 0.63% on an NAV basis and. Over the same period the benchmark for the fund, the Spot price of Gold has returned 2.22%.
Having suffered steep declines for much of 2013 the gold price in dollar terms has risen modestly since the inception date of the fund. This has been driven by a number of factors. US inflation-adjusted interest rates have continued to trend lower which has been supportive for gold prices and the large investor driven outflows from the gold market seen in the latter half of 2013 have reversed. While investor flows into ETPs have fluctuated between positive and negative, flows into gold linked futures were very strong, totaling approximately 360 metric tonnes.
Over the period the fund has held stable and approximately equal weightings to gold priced in each of the four currencies. While weakness in the euro versus the dollar prompted by the European Central Bank (ECB) rate cut has benefited fund performance, strength in both the yen and pound versus the dollar have more than offset this benefit and have been the primary factor behind the fund’s underperformance relative to its benchmark. A striking feature of the recent period has been the very low levels of volatility in both the gold and currency markets and as such the fund has not engaged in any hedging activity to control volatility. Looking forward with US real interest rates still at very low levels and monetary policy in the US becoming tighter relative to monetary policy in the European Union and Japan and apparently on a similar trajectory to UK monetary policy, we would expect the price of gold expressed as an equal combination of dollars, euro, yen and pounds to remain supported at current levels.
A Gold Future is an agreement to buy and sell quantities of gold on a particular date in the future at a fixed price.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014
22
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | |||||||||
1 Month | 3 Month | Since Inception 2/11/2014 | ||||||||||
AdvisorShares International Gold ETF NAV | 5.23 | % | 1.50 | % | 0.63 | % | ||||||
AdvisorShares International Gold ETF Market Price** | 7.04 | % | 1.91 | % | -0.16 | % | ||||||
Spot Gold – London Bullion Market Association | 5.16 | % | 1.80 | % | 2.22 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.52%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The spot price of Gold is valued on the basis of each day's 3 pm London time announced price for an ounce of gold set by five market members of the London Bullion Market Association. One cannot invest directly in an index.
23
ADVISORSHARES TRUST
AdvisorShares Madrona Domestic ETF (FWDD)
The AdvisorShares Madrona Domestic Equity ETF (NYSE Arca: FWDD) gained 27.93% on both a Market Price Basis and NAV basis for the year ending June 30, 2014 compared to a gain of 24.61% for the S&P 500 Index.
U.S. Equities valuations have reverted to long-term historical averages during 2014 due to a combination of increasing prices and decreasing growth projections. As we move forward we believe that qualitative investing will be necessary to take advantage of opportunities in the market. We feel FWDD by nature is positioned to take advantage of opportunities in undervalued securities, while maintaining a material allocation to each sector and a broadly balanced diversified portfolio overall. Because price to earnings ratios do not paint the whole picture to evaluate a stock, the strategy incorporates the forward-looking long-term growth of earnings to rank each security within the basket. Additionally, companies with no or negative growth of earnings are eliminated from the portfolio.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2014
24
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 6/21/2011 | |||||||||||||||||||
AdvisorShares Madrona Domestic ETF NAV | 2.82 | % | 5.23 | % | 7.61 | % | 27.93 | % | 16.93 | % | 18.39 | % | ||||||||||||
AdvisorShares Madrona Domestic ETF Market Price** | 2.84 | % | 5.44 | % | 7.67 | % | 27.93 | % | 16.93 | % | 18.39 | % | ||||||||||||
S&P 500 Index | 2.07 | % | 5.23 | % | 7.14 | % | 24.61 | % | 16.58 | % | 17.70 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.61% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
25
ADVISORSHARES TRUST
AdvisorShares Madrona Global Bond ETF (FWDB)
The AdvisorShares Madrona Global Bond ETF (NYSE Arca: FWDB) gained 9.44% on a Market Price basis and 8.80% on an NAV basis for the year ending June 30, 2014 compared to a gain of 4.37% for the Barclays Capital U.S. Aggregate Bond Index.
It is our belief that inflation is not directly correlated to the interest rate investors are willing to pay for Government bonds. Inflation generally occurs when there is a shortage of cash type investments available, demand is outpacing supply, and companies are at or near capacity. None of these factors currently contribute to an inflationary environment. Many Advisors and broad based bond funds have shied away from any bonds other than short or ultra-short duration bonds. We believe there is opportunity for yield while not going too far out on the bond maturity timeline.
In addition, the Federal Reserve may decide to taper back the purchase of the type of bonds that are most prevalent in most bond indexes. When the artificial demand for these bonds is removed, there could be a selling environment. It is our belief that any such sell-off by bond holders will require that investors find other investment alternatives. Assuming bond investors won’t stay idle, or flock to equities, we believe an opportunity exists. That opportunity is the transfer of investments from Government bonds to other bond categories such as corporates, high-yields, bank notes, emerging markets, preferred bonds, etc. FWDB is well represented with these alternative categories of bonds.
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2014
26
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 6/21/2011 | |||||||||||||||||||
AdvisorShares Madrona Global Bond ETF NAV | 0.64 | % | 3.18 | % | 6.45 | % | 8.80 | % | 4.81 | % | 4.77 | % | ||||||||||||
AdvisorShares Madrona Global Bond ETF Market Price** | 0.68 | % | 3.22 | % | 6.77 | % | 9.44 | % | 4.86 | % | 4.84 | % | ||||||||||||
Barclays Capital U.S. Aggregate Bond Index | 0.05 | % | 2.04 | % | 3.93 | % | 4.37 | % | 3.66 | % | 3.45 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.40% and the net expense ratio is 1.33%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The Barclays Capital U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.
27
ADVISORSHARES TRUST
AdvisorShares Madrona International ETF (FWDI)
The AdvisorShares Madrona International ETF (NYSE Arca: FWDI) gained 25.64% on a Market Price basis and 25.91% on an NAV basis for the year ending June 30, 2014 compared to a gain of 23.57% for the MSCI EAFE Index.
The recent rebound in Emerging Market securities has contributed to the portfolio’s outperformance of the MSCI EAFE Index during the last year. Our research continues to point to attractive valuations in Emerging Market positions against their Developed Market counterparts and we believe this trend will continue. We believe FWDI by nature is positioned to take advantage of opportunities across the International equity space, while maintaining a broad mix of holdings across both developed and emerging markets.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2014
28
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 6/21/2011 | |||||||||||||||||||
AdvisorShares Madrona International ETF NAV | 1.82 | % | 3.06 | % | 4.33 | % | 25.91 | % | 5.48 | % | 7.04 | % | ||||||||||||
AdvisorShares Madrona International ETF Market Price** | 1.37 | % | 2.67 | % | 4.19 | % | 25.64 | % | 5.36 | % | 6.92 | % | ||||||||||||
MSCI EAFE Index (Net) | 0.96 | % | 4.09 | % | 4.78 | % | 23.57 | % | 8.10 | % | 9.52 | % | ||||||||||||
BNY Mellon Classic ADR Index TR | 1.41 | % | 4.49 | % | 4.45 | % | 22.47 | % | 6.25 | % | 7.69 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.65% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. One cannot invest directly in an index.
29
ADVISORSHARES TRUST
AdvisorShares Meidell Tactical Advantage ETF (MATH)
The AdvisorShares Meidell Tactical Advantage ETF (NYSE Arca: MATH) gained 5.75% on a Market Price basis and 5.89% on an NAV basis for the year ending June 30, 2014 while the S&P 500 Index gained 24.61% over the same period. This has been a unique time for the stock market as a whole with solid market gains over the past 12 months punctuated by relatively shallow pullbacks along the way. Over the past two years the market experienced two pullbacks (June of 2013 and January of 2014) that were relatively short lived, but were sufficient enough to shift a portion or all the fund to a defensive posture just as the market was reaching its low. This caused the fund to miss out on a portion of the following gains, as the market rebounded off its low, until a new buy signal was given.
One explanation for the markets lower volatility over the past year is the addition of the Federal Reserve’s stimulus plan, or QE3 and the length of time that it’s been applied. Although the latest round of stimulus has gone on longer than the prior two, it’s expect to finish by October of this year assuming the economic recovery stays on track. While the fund’s defensive signals have been somewhat out of phase over the past year, we believe that as volatility returns to the stock market, the added value of the fund to an investor’s portfolio will be more evident.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 23, 2011* to June 30, 2014
30
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 6/23/2011 | |||||||||||||||||||
AdvisorShares Meidell Tactical Advantage ETF NAV | 1.94 | % | 2.56 | % | 0.20 | % | 5.89 | % | 6.53 | % | 6.56 | % | ||||||||||||
AdvisorShares Meidell Tactical Advantage ETF Market Price** | 1.39 | % | 1.87 | % | 0.10 | % | 5.75 | % | 6.51 | % | 6.56 | % | ||||||||||||
S&P 500 Index | 2.07 | % | 5.23 | % | 7.14 | % | 24.61 | % | 16.58 | % | 17.46 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 3.27% and the net expense ratio is 1.63%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.
31
ADVISORSHARES TRUST
AdvisorShares Newfleet Multi-Sector Income ETF (MINC)
The AdvisorShares Newfleet Multi-Sector Income Fund (NYSE Arca: MINC) gained 4.70% on a Market Price Basis and 4.65% on an NAV basis during the fiscal year ending June 30, 2014 which compares to a gain of 4.37% for the Barclays Capital U.S. Aggregate Bond Index.
The outperformance of most fixed income spread sectors relative to U.S. Treasuries was the key driver of MINC’s performance during the fiscal year. The ten year U.S. Treasury remained relatively flat at a 2.53% yield on June 30, 2014 from 2.48% on June 28, 2013; although it peaked at 3.03% on December 31, 2013 in anticipation of stronger Gross Domestic Product growth and lower unemployment. Corporate high yield’s strong return was due to positive mutual fund flows, strong credit fundamentals, a historically low default rate and investors’ need for higher yield have all been positive contributors for the sector’s outperformance.
Over the fiscal year, we continued to invest cash from inflows and sale proceeds, primarily focusing on the addition of higher quality bank loans, corporate high yield bonds, and asset backed securities. We have continued to overweight spread sectors, seeking to take advantage of higher yields and wider spreads.
Spread sectors include all non-Treasury investment grade sectors including federal agency securities, corporate bonds, asset-backed securities, mortgage-backed securities and commercial mortgage-backed securities.
Yield is the income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment’s cost, its current market value or its face value.
Fundamentals are the qualitative and quantitative information that contributes to the economic well-being and the subsequent financial valuation of a company, security or currency. Analysts and investors analyze these fundamentals to develop an estimate as to whether the underlying asset is considered a worthwhile investment.
An Asset Backed Security is a financial security backed by a loan, lease or receivables against assets other than real estate and mortgage-backed securities. For investors, asset-backed securities are an alternative to investing in corporate debt.
Spread is the difference between the bid and the ask price of a security or asset.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period March 19, 2013* to June 30, 2014
32
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 3/19/2013 | ||||||||||||||||
AdvisorShares Newfleet Multi-Sector Income ETF NAV | 0.20 | % | 1.10 | % | 2.43 | % | 4.65 | % | 2.46 | % | ||||||||||
AdvisorShares Newfleet Multi-Sector Income ETF Market Price** | 0.22 | % | 1.01 | % | 2.25 | % | 4.70 | % | 2.46 | % | ||||||||||
Barclays Capital U.S. Aggregate Bond Index | 0.05 | % | 2.04 | % | 3.93 | % | 4.37 | % | 1.59 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.13% and the net expense ratio is 0.75%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The Barclays Capital U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.
33
ADVISORSHARES TRUST
AdvisorShares Peritus High Yield ETF (HYLD)
The AdvisorShares Peritus High Yield ETF (NYSE Arca: HYLD) returned 15.20% on a Market Price basis and 14.04% on an NAV basis from July 1, 2013 through June 30, 2014 compared to 11.73% for the Barclays U.S. Corporate High Yield Index. The past year has been characterized by extremely low volatility in both equities and credit. The High Yield bond market saw steady run-up in prices, pushing the yield on Bank of America High yield index to an all-time low in late June of 4.85%. HYLD outpaced the index during this period due in large part to the relatively high average current yield on the portfolio as well as the growing allocation to select dividend equities.
In January of 2014, the consensus amongst most market participants was that interest rates would necessarily move higher as the Fed continued on its course to reduce bond purchases. From our January 2014 letter Of Elephants and Rates:
“Our take: demographics, liability driven investing (LDI) and a no growth global world will surprise everyone, taking Treasury yields nowhere or potentially lower in 2014 and confounding most investors, particularly those who poured record amounts of money into floating rate products.”
This line of thinking turned out to be right on the mark, with the yield on the 10 yr Treasury yield declining by nearly 50 basis points (0.50%) in the first half of 2014, helped by a very weak Q1 GDP result and continued strong demand for treasuries. So with interest rates declining, a relatively benign default outlook and continuing demand for yield product, the high yield market performed much better than expected. In this environment, HYLD continued to experience both higher returns and lower volatility (as measured by standard deviation) relative to the index due to our focus on credit selection. With active management, Peritus undertakes the fundamental work necessary to determine the credits’ viability and return prospects. We believe that this intensive research process, along with the potential yield advantage offered by HYLD, may position us well for the year ahead.
Standard Deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 1, 2010* to June 30, 2014
34
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 12/1/2010 | |||||||||||||||||||
AdvisorShares Peritus High Yield ETF NAV | 1.53 | % | 3.13 | % | 6.64 | % | 14.04 | % | 9.86 | % | 10.31 | % | ||||||||||||
AdvisorShares Peritus High Yield ETF Market Price** | 1.55 | % | 3.17 | % | 6.59 | % | 15.20 | % | 9.63 | % | 10.28 | % | ||||||||||||
Barclays U.S. Corporate High Yield Index | 0.84 | % | 2.41 | % | 5.46 | % | 11.73 | % | 9.48 | % | 9.91 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.23% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The Barclays U.S. Corporate High Yield Index is an unmanaged index considered representative of the universe of U.S. fixed rate, non investment grade debt. One cannot invest directly in an index.
35
ADVISORSHARES TRUST
AdvisorShares Pring Turner Business Cycle ETF (DBIZ)
The AdvisorShares Pring Turner Business Cycle ETF (NYSE Arca: DBIZ) finished 15.30% higher on a Market Price basis and was up 15.19% on an NAV basis for the year ending June 30, 2014. In comparison, the S&P 500 Index was up 24.61% and outperformed DBIZ since this benchmark is purely in stocks. On the other hand, DBIZ is a multi-asset, active allocation fund with holdings in bonds, stocks, commodity and cash and may exhibit less volatile than the S&P 500. Since inception, DBIZ’s portfolio volatility (Beta = 0.50) is about half the S&P 500’s (Beta = 1.0). The portfolio managers are very pleased to report that at fiscal year end the fund reached an all-time high in NAV of $29.00 per share.
DBIZ has a pro-active asset allocation and sector rotation strategy designed to adapt to the ever-changing economy and financial markets. During the course of a typical business cycle, the three main asset classes: bonds, stocks and commodities move through favorable and unfavorable periods. This results in six turning points or “Stages,” each of which offers a different environment for optimum asset allocation. DBIZ is designed as a core total return multi-asset fund for conservative investors.
As of June 2014 our proprietary business cycle stage work resides in “Stage 4.” This is an advanced stage of the cycle where typically inflation begins to accelerate and portfolio tactics gradually adjust to these changes. The “inflationary” part of the business cycle is historically unfavorable towards bonds, but favorable for stocks in the industrial, material, energy and metal sectors. Given this outlook the majority of the fund is invested in stocks and especially inflation sensitive securities, and a substantially smaller amount in bonds. The Energy, Technology, and especially Mining sectors are being emphasized at this time.
Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 18, 2012* to June 30, 2014
36
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 12/18/2012 | ||||||||||||||||
AdvisorShares Pring Turner Business Cycle ETF NAV | 5.19 | % | 6.31 | % | 9.81 | % | 15.19 | % | 10.99 | % | ||||||||||
AdvisorShares Pring Turner Business Cycle ETF Market Price** | 5.26 | % | 6.49 | % | 10.08 | % | 15.30 | % | 11.08 | % | ||||||||||
S&P 500 Index | 2.07 | % | 5.23 | % | 7.14 | % | 24.61 | % | 24.52 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 4.82% and the net expense ratio is 1.61%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
37
ADVISORSHARES TRUST
AdvisorShares QAM Equity Hedge ETF (QEH)
The AdvisorShares QAM Equity Hedge ETF (NYSE Arca: QEH) has returned 10.62% on a Market Price basis and 10.52% on an NAV basis for the one year period ending June 30th, 2013. Performance in the fund was slightly behind our benchmark, the HFRI Equity Hedge (Total) Index which was up 12.60%, but was still within the range of expectations for the strategy.
The Fund utilizes a fundamental and quantitative investment process to estimate the aggregate net market exposures of a large universe of long/short equity hedge funds defined by the HFRI Equity Hedge (Total) Index. The Fund’s sub-advisor has fundamentally identified over 20 groups of long/short equity hedge fund managers within the Index and utilizes a factor based system to attempt to identify the net exposures for each group. The sub-advisor believes that by replicating the net exposures of each group, over time the Fund’s return will closely track that of the index.
In the year ended June 2014, the US equity markets continued to dominate the global picture. The moderately net exposed global portfolio for QEH partially participated in the gains while doing so with a lower beta to the S&P 500. As the markets rallied, our models indicated that the universe of long/short equity hedge fund managers were increasing their net market exposure through the first quarter of 2014 to a peak of approximately 70% before retreating to approximately 62% by the end of the second quarter. Within economic sectors, Financials remained the largest net allocation, however, these exposures decreased overall while Healthcare, Information Technology, and most recently, Energy gained. Large Cap stocks rose in net exposure during the period, although exposure began to decrease quickly during the latest quarter. Net exposure to North America remained the largest geographic exposure, while the remainder resided in developed, emerging, and frontier markets.
QEH is a diversified and moderately net exposed portfolio providing a lower volatility approach to global equity markets that we believe can produce superior risk adjusted returns over time.
A long position is the purchase of an investment with the expectation that it will rise in value.
A short position is the sale of a borrowed investment with the expectation that it will decline in value.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.
The S&P 500 Index is a free-float capitalization-weighted index based on the common stock prices of 500 American companies. It is one of the most commonly followed equity indices and many consider it the best representation of the market and a bellwether for the U.S. economy.
Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
38
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period August 7, 2012* to June 30, 2014
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 8/7/2012 | ||||||||||||||||
AdvisorShares QAM Equity Hedge ETF NAV | 1.61 | % | 1.82 | % | 1.75 | % | 10.52 | % | 8.47 | % | ||||||||||
AdvisorShares QAM Equity Hedge ETF Market Price** | 1.54 | % | 1.57 | % | 3.31 | % | 10.62 | % | 8.41 | % | ||||||||||
HFRI Equity Hedge (Total) Index | 1.73 | % | 2.19 | % | 3.32 | % | 12.60 | % | N/A*** |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 4.69% and the net expense ratio is 1.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
*** | Benchmark performance available on a month-end basis only. For the period 8/31/2012 through 6/30/2014, the HFRI Equity Hedge Index returned 11.71%. |
The HFRI Equity Hedge Index is a fund-weighted index of select hedge funds focusing on Equity Hedge strategies. Equity Hedge investing consists of a core holding of long equities hedged at all times with short sales of stocks and/or stock index options. One cannot invest directly in an index.
39
ADVISORSHARES TRUST
AdvisorShares Ranger Equity Bear ETF (HDGE)
The AdvisorShares Ranger Equity Bear ETF (NYSE: ARCA: HDGE) returned -27.04% on a Market Price basis and -27.15% on an NAV basis from July 1, 2013 through June 30, 2014 compared to 24.61% for the S&P 500 Index. As a short-only investment vehicle HDGE seeks to outperform peers and relevant benchmarks on a relative basis during bull markets. During down markets and/or highly volatile market conditions characterized by fear and uncertainty, HDGE seeks to generate positive results and outperform peers and relevant benchmarks on both a relative and absolute basis.
Performance was driven by a mid-capitalization growth exposure allocated to stocks not in the S&P 500 Index. The fund remained nearly fully invested over the entire 12 month period in aggressive growth stocks despite equity markets pushing to new highs. Sentiment remains extremely elevated with the spread between bullish and bearish investors at generational extremes. The IPO market remains frothy with more than 60% of new offerings losing money. Corporate buybacks have slowed in recent months while covenant light loans have exceeded levels of 2007 when credit terms were much looser. As a result, the fund is maintaining a maximum exposure and aggressively short portfolio.
A Short position is the sale of a borrowed investment with the expectation that it will decline in value.
A Bull Market (Bullish) is a financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.
A Bear Market (Bearish) is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor’s 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market.
A Buyback is the repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buy back shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake.
A Covenant Light Loan is a type of loan whereby financing is given with limited restrictions on the debt-service capabilities of the borrower. The issuance of covenant-lite loans means that debt is being issued, both personally and commercially, to borrowers with fewer restrictions on collateral, payment terms, and level of income.
40
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 27, 2011* to June 30, 2014
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 1/27/2011 | |||||||||||||||||||
AdvisorShares Ranger Equity Bear ETF NAV | -5.00 | % | -7.54 | % | -7.75 | % | -27.15 | % | -19.58 | % | -19.73 | % | ||||||||||||
AdvisorShares Ranger Equity Bear ETF Market Price** | -5.00 | % | -7.46 | % | -7.75 | % | -27.04 | % | -19.56 | % | -19.71 | % | ||||||||||||
S&P 500 Index | 2.07 | % | 5.23 | % | 7.14 | % | 24.61 | % | 16.58 | % | 15.29 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 3.29%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
41
ADVISORSHARES TRUST
AdvisorShares Sage Core Reserves ETF (HOLD)
The AdvisorShares Sage Core Reserves ETF (NYSE Arca: HOLD) gained 0.11% since inception (January 14, 2014) on a NAV basis and 0.13% on a Market Price basis. The Barclays 1-3 Month U.S. Treasury Bill Index, a common short-term benchmark, in contrast returned 0.01% since HOLD’s inception.
Since HOLD’s inception in 2014, fixed income investors have been treated to the favorable mix of falling interest rates and tightening credit spreads. Disappointing global growth in the first quarter of 2014 set the table for this backdrop, by curbing higher rate expectations and stoking the demand for yield. Add to this, continued low inflation, further easing from the European Central Bank and rising geopolitical risks and the pieces were in place for a surprisingly strong first half for fixed income.
Going into 2014, we believed the best strategy was to mitigate rate volatility with a defensive duration position, including short futures positions, overweight higher-yielding sectors for additional income carry over benchmarks, and to take advantage of both sector and yield curve relative value opportunities as they emerged. This worked well, with our income advantage offsetting the effects of generally being short duration, and our curve and sector tilts, such as being overweight mortgage-backed and asset-backed securities, adding additional value.
Credit Spread is the spread between Treasury securities and non-Treasury securities that are identical in all respects except for quality rating.
Yield is the income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment’s cost, its current market value or its face value.
Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.
The Short Futures position is an unlimited profit, unlimited risk position that can be entered by the futures speculator to profit from a fall in the price of the underlying.
A Yield Curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The most frequently reported yield curve compares the three-month, two-year, five-year and 30-year U.S. Treasury debt. This yield curve is used as a benchmark for other debt in the market, such as mortgage rates or bank lending rates. The curve is also used to predict changes in economic output and growth.
A Mortgage Backed Security is a type of asset-backed security that is secured by a mortgage or collection of mortgages. These securities must also be grouped in one of the top two ratings as determined by an accredited credit rating agency, and usually pay periodic payments that are similar to coupon payments. Furthermore, the mortgage must have originated from a regulated and authorized financial institution.
An Asset Backed Security is a financial security backed by a loan, lease or receivables against assets other than real estate and mortgage-backed securities. For investors, asset-backed securities are an alternative to investing in corporate debt.
42
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 14, 2014* to June 30, 2014
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | |||||||||
1 Month | 3 Month | Since Inception 1/14/2014 | ||||||||||
AdvisorShares Sage Core Reserves ETF NAV | 0.00 | % | 0.08 | % | 0.11 | % | ||||||
AdvisorShares Sage Core Reserves ETF Market Price** | 0.03 | % | 0.08 | % | 0.13 | % | ||||||
Barclays 1-3 Month U.S. Treasury Bill Index | 0.00 | % | 0.01 | % | 0.01 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.36% and the net expense ratio is 0.35%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The Barclays 1-3 Month U.S. Treasury Bill Index includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. The Barclays Treasury Bill Index is an unmanaged index considered representative of the performance of the U.S. Treasury Bill issued by the U.S. Government. One cannot invest directly in an index.
43
ADVISORSHARES TRUST
AdvisorShares STAR Global Buy-Write ETF (VEGA)
The AdvisorShares STAR Global Buy-Write ETF (NYSE Arca: VEGA) gained 11.01% for the year ending June 30, 2014 on a Market Price basis and 10.89% on an NAV basis. By comparison, VEGA’s Policy Benchmark* gained 20.15% over the same period. While it underperformed the Benchmark for the year, much of this was due to a surge in equity prices in the 2nd half of 2013. For the first 6 months of 2014, VEGA gained 4.75% versus 4.46% for the Benchmark. In addition, for the 12 months ending June 30, 2014, VEGA achieved a beta of just 0.49 versus the S&P 500.
VEGA is a broadly diversified ETF that includes other asset classes beyond the S&P 500, such as, individual equities, foreign developed and emerging market equities, global bonds and domestic fixed income. We believe that VEGA, over full market cycles, can provide its benefit in declining markets by harnessing volatility in the form of earned option premiums from covered calls and cash-secured puts, and utilizing cash as a strategic asset intended to be reinvested when levels of implied volatility on its constituent ETFS is higher than average.
Typically, VEGA will benefit from volatile markets while participating less in strongly trending markets. We have witnessed primarily the latter during the fiscal year ended June 30, 2014. Thus, while appreciating prices in the equity-based ETFs held in the Fund have had a positive impact on performance, this was partially offset by the more modest returns from fixed-income, the strategic cash allocation, and below average option premiums.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.
Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
An option premium is the income received by an investor who sells or “writes” an option contract to another party. The current price of any specific option contract that has yet to expire. For stock options, the premium is quoted as a dollar amount per share and most contracts represent the commitment of 100 shares.
A covered call is an options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the asset and for this reason hold the asset long and simultaneously have a short position via the option to generate income from the option premium.
An investor who employs a cash-secured put writes a put contract, and at the same time deposits in his brokerage account the full cash amount for a possible purchase of underlying shares. The purpose of depositing this cash is to ensure that it’s available should the investor be assigned on the short put position and be obligated to purchase shares at the put’s strike price. While the cash is on deposit it may generally be invested in short-term, interest-bearing instruments.
* | VEGA’s Policy Benchmark comprises a 37.5% weighting to the MSCI World Index, 37.5% to the CBOE BuyWrite Index and 25% to the Barclays’ Intermediate Government/Credit Index. |
44
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period September 17, 2012* to June 30, 2014
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 9/17/2012 | ||||||||||||||||
AdvisorShares STAR Global Buy-Write ETF NAV | 1.00 | % | 3.07 | % | 4.80 | % | 10.89 | % | 3.08 | % | ||||||||||
AdvisorShares STAR Global Buy-Write ETF Market Price** | 1.20 | % | 3.27 | % | 4.75 | % | 11.01 | % | 3.17 | % | ||||||||||
MSCI World Index (Net) | 1.79 | % | 4.86 | % | 6.18 | % | 24.05 | % | 18.26 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.60% and the net expense ratio is 2.10%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot invest directly in an index.
45
ADVISORSHARES TRUST
AdvisorShares TrimTabs Float Shrink ETF (TTFS)
The AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) returned 25.00% on a Market Price basis and 25.18% on an NAV basis from July 1, 2013 through June 30, 2014, compared to 25.22% for the Russell 3000 Index and 24.61% for the S&P 500 Index.
The U.S. stock market has posted five straight months of gains, and the S&P 500 hit record closing highs on 22 trading sessions in the first half of 2014. The TrimTabs Float Shrink ETF (NYSE: TTFS) benefited from the rising tide. The fund was also featured in several articles, including an article on May 30 by Jason Zweig of the Wall Street Journal entitled “No Free Lunch in Dividend Funds.” Data from Standard & Poor’s indicates stock buybacks in the first quarter of 2014 were the second highest on record, which suggests demand for shares among public companies remained high which positively impacted the fund for the period.
We believe such demand was driven by two factors. First, slow economic growth and weak consumer demand around the world make companies wary of ramping up capital spending and hiring. Second, as stock prices move higher, public companies have a greater need to reduce their equity float to offset stock option exercises. Investors in companies that do not have buyback programs, for example, face a growing risk of equity dilution. We feel that the active management of our portfolio strategy leaves us well positioned for the future.
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
Tradable Equity Float (Public Float) is the number of shares publicly owned and available for trading. Floating shares are included in the calculation of a company’s outstanding shares, along with restricted stock. Restricted stock is only available to company insiders, like employees and executives. It is not freely traded among the public and is subject to special Securities and Exchange Commission restrictions. Unlike floating stock which is freely tradable.
An option is a financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date).
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 5, 2011* to June 30, 2014
46
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 10/5/2011 | ||||||||||||||||
AdvisorShares TrimTabs Float Shrink ETF NAV | 1.01 | % | 3.35 | % | 5.72 | % | 25.18 | % | 28.35 | % | ||||||||||
AdvisorShares TrimTabs Float Shrink ETF Market Price** | 1.02 | % | 3.28 | % | 5.78 | % | 25.00 | % | 28.38 | % | ||||||||||
Russell 3000 Index | 2.51 | % | 4.87 | % | 6.94 | % | 25.22 | % | 25.81 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.90% and the net expense ratio is 0.99%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. One cannot invest directly in an index.
47
ADVISORSHARES TRUST
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (AADR)
The AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (NYSE Arca: AADR) returned 19.85% from July 1, 2013 to the period ended June 30, 2014, underperforming the MSCI EAFE Index which returned 23.57%.
Essentially all of AADR’s underperformance for the fiscal year ended June 30, 2013 occurred during the first three months of the fiscal year (Jun 30, 2013 through Sep 30, 2013, “2013 Q3”). There were a few headwinds for the portfolio, most of which have abated since that time.
One headwind was our exposure to emerging markets (“EM”). Historically and, we believe, prospectively, holdings in high-quality growth businesses from EM countries is essential to good long-term returns. But in any given short period this may not be true. Specifically, AADR’s 25% weight in EM holdings during 2013 Q3 (compared to 0% in the MSCI EAFE) proved to be a drag. Even though our EM holdings outperformed the MSCI EM index, that was not enough to overcome general EM weakness; to wit, the return for MSCI EAFE was about double that of the MSCI EM index in 2013 Q3.
The second major headwind in 2013 Q3 was our bottom-up bias to classic growth sectors such as Health Care and Consumer Staples, and away from classic lower growth sectors such as Materials and Telecom. In particular, AADR had almost no exposure to Materials and Telecom, the two best performing sectors in the MSCI EAFE. Conversely, Consumer Staples and Health Care were the two poorest performing sectors in the MSCI EAFE, and these were two of AADR’s largest overweights.
As implied earlier, these headwinds abated to a large degree after the initial three months of the fiscal year and AADR then kept pace with the MSCI EAFE. That includes the overall market sell off in March and April of 2014, after which we were encouraged to see more opportunities (better prices) emerge in higher-growth names. Yes, a case can be made that there has been some froth in pockets of the market with unproven business models (e.g., cloud, social, big data, etc.). Even so, we’ve identified several excellent, profitable businesses that, though they were caught up in that indiscriminate selling, now look quite attractive. AADR portfolio activity in the last six months is a reflection of this view.
Looking forward, overall market volatility has diminished significantly in recent months (one popular volatility measure was approaching decade lows in June), prompting several commentators to call for a ‘new normal’ of low volatility. We could not disagree more, and while we can’t predict the exact sources, we expect continued market volatility to create great new buying opportunities, as it always has. Further, money flows into EM markets seem to be picking up in recent months, though they are initially going for value markets/sectors. But as EM economies remain choppy and risks (such as higher rates) come back into view, we expect our types of companies — those with strong fundamentals that can grow irrespective of the macro environment — to return to favor.
48
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 21, 2010* to June 30, 2014
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 7/21/2010 | |||||||||||||||||||
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF NAV | 2.32 | % | 3.05 | % | 4.03 | % | 19.85 | % | 8.04 | % | 12.50 | % | ||||||||||||
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF Market Price** | 2.30 | % | 2.83 | % | 3.78 | % | 19.85 | % | 7.87 | % | 12.48 | % | ||||||||||||
MSCI EAFE Index (Net) | 0.96 | % | 4.09 | % | 4.78 | % | 23.57 | % | 8.10 | % | 12.07 | % | ||||||||||||
BNY Mellon Classic ADR Index TR | 1.41 | % | 4.49 | % | 4.45 | % | 22.47 | % | 6.25 | % | 10.39 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.53% and the net expense ratio is 1.26%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. One cannot invest directly in an index.
The BNY Mellon Classic ADR Index combines the over the counter (OTC) traded ADRs with exchange-listed ADRs bringing transparency to the available universe of American Depositary Receipts, including those issued by many of the world’s premier companies. One cannot invest directly in an index.
49
ADVISORSHARES TRUST
AdvisorShares YieldPro ETF (YPRO)
The AdvisorShares YieldPro ETF (NASDAQ: YPRO) provided a total Market Price return of 2.07% and an NAV return of 1.95% since inception, slightly underperforming the Barclays Capital Aggregate Bond Index which returned 2.02% over the same time period. Riskier income producing assets which exhibit more equity-like risk characteristics contributed the most to performance since inception. Specifically, our allocation to high yield bonds, preferred stocks, Mortgage REITs (Real Estate Investment Trust), and energy related stocks (primarily Master Limited Partnerships) provided the largest positive contribution to return. The fund’s exposure to longer-term investment grade corporate bonds also provided a notable contribution to returns. Although YPRO provided a positive absolute return, the fund lost some value from hedging exposure to major increases in interest rates. We also remain concerned about valuations in credit markets, most specifically high yield and bank loans, and continue to hedge our credit risk while still seeking to earn a competitive yield in the portfolio.
Since the fund’s inception on March 4, 2014, we have witnessed an environment which was beneficial to stocks and bonds alike. The S&P 500 Index hit historically low levels of volatility as of 06/30/14, exhibiting an annual standard deviation of daily returns of approximately 10%, which compares to a historical average of over 16%. The last time equity markets exhibited this type of calm was the 2006/2007 period leading into the last financial crisis. The signs of complacency that usually serve as a precursor to market corrections (narrow credit spreads, low equity volatility, excessive risk taking, higher leverage, irresponsible lending) are sounding alarm bells. Fortunately (for us), insurance tends to be cheap when investors are complacent. Given the level of complacency in global markets, implied volatility has been very low which provides us with an attractive opportunity to build additional capital preservation into the portfolio through investments in call options on the CBOE S&P 500 Volatility Index, or VIX. Ultimately, these forms of ‘portfolio insurance’ may be dilutive to returns in the short run, but we believe that they will provide significant protection in the intermediate-term. As a result, we believe that in this environment of frothy valuations, we are willing to give up some upside in the short-term for the objective of capital preservation.
We have written repeatedly about the excesses we are seeing in a variety of markets, most specifically the loan and high yield markets. We believe that the market is underpricing a variety of risks, including but not limited to a rise in interest rates, a resurgence of the European debt crisis, and a potential liquidity crisis in the high yield and the loan market. That said, we aren’t hiding under the desk in fear of the next crisis, but rather, we invest and take risk with awareness of the next potential crisis. When we take risk, we tend to buy protection, thereby targeting a positive return to investors at a low level of volatility. In closing, as of 6/30/14 our portfolio is structured with targeted annualized volatility of approximately 2.5%, with the objective of exhibiting limited sensitivity to interest rates, credit risk, and equity risk. We believe that we can continue to identify opportunities to generate capital appreciation and yield, but we are risk aware, and we continue to proceed with caution.
A Real Estate Investment Trust (REIT) is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate.
A Master Limited Partnership (MLP) is a type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited partner is the person or group that provides the capital to the MLP and receives periodic income distributions from the MLP’s cash flow, whereas the general partner is the party responsible for managing the MLP’s affairs and receives compensation that is linked to the performance of the venture.
Standard Deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.
Implied Volatility is the estimated volatility of a security’s price. In general, implied volatility increases when the market is bearish and decreases when the market is bullish. This is due to the common belief that bearish markets are more risky than bullish markets.
The CBOE S&P 500 Volatility Index (VIX) is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is
50
meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the “investor fear gauge”. The VIX is a contrarian sentiment indicator that helps to determine when there is too much optimism or fear in the market.
Yield is the income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment’s cost, its current market value or its face value.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period March 4, 2014* to June 30, 2014
HISTORICAL PERFORMANCE
Total Return as of June 30, 2014
![]() | ![]() | ![]() | ![]() | |||||||||
1 Month | 3 Month | Since Inception 3/4/2014 | ||||||||||
AdvisorShares YieldPro ETF NAV | 0.24 | % | 1.79 | % | 1.95 | % | ||||||
AdvisorShares YieldPro ETF Market Price** | 0.28 | % | 1.78 | % | 2.07 | % | ||||||
Barclays Capital U.S. Aggregate Bond Index | 0.05 | % | 2.04 | % | 2.02 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.42%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
* | Commencement of operations. |
** | The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund. |
The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index considered representative of the performance of the U.S. investment grade bond market. One cannot invest directly in an index.
51
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 January 1, 2014 and held for the period ended June 30, 2014.
Actual Expenses
The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid” to estimate the expenses attributable to your account during this period.
Hypothetical Example for Comparison Purposes
The second line under each Fund in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses for the period. You may use this information to compare the ongoing costs of investing in the Funds and other ETF funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have been higher.
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Fund Name | Beginning Account Value 1/1/2014 | Ending Account Value 6/30/2014 | Annualized Expense Ratio for the Period(1) | Expenses Paid | ||||||||||||
AdvisorShares Accuvest Global Long Short ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 932.90 | 1.50 | % | $ | 7.19 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.36 | 1.50 | % | $ | 7.50 | ||||||||
AdvisorShares Accuvest Global Opportunities ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 963.20 | 1.25 | % | $ | 6.08 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
AdvisorShares Athena International Bear ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 903.90 | 1.50 | % | $ | 7.08 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.36 | 1.50 | % | $ | 7.50 | ||||||||
AdvisorShares Cambria Global Tactical ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,052.20 | 1.25 | % | $ | 6.36 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 |
52
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Fund Name | Beginning Account Value 1/1/2014 | Ending Account Value 6/30/2014 | Annualized Expense Ratio for the Period(1) | Expenses Paid | ||||||||||||
AdvisorShares EquityPro ETF(2) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,064.00 | 1.25 | % | $ | 6.40 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
AdvisorShares Gartman Gold/British Pound ETF(3) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 981.20 | 0.65 | % | $ | 2.45 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.57 | 0.65 | % | $ | 2.50 | ||||||||
AdvisorShares Gartman Gold/Euro ETF(3) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,017.20 | 0.65 | % | $ | 2.50 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.57 | 0.65 | % | $ | 2.50 | ||||||||
AdvisorShares Gartman Gold/Yen ETF(3) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,010.90 | 0.65 | % | $ | 2.49 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.57 | 0.65 | % | $ | 2.50 | ||||||||
AdvisorShares Global Echo ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,014.60 | 1.50 | % | $ | 7.49 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.36 | 1.50 | % | $ | 7.50 | ||||||||
AdvisorShares International Gold ETF(3) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,006.30 | 0.95 | % | $ | 3.63 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,015.42 | 0.95 | % | $ | 3.65 | ||||||||
AdvisorShares Madrona Domestic ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,076.10 | 1.25 | % | $ | 6.43 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
AdvisorShares Madrona Global Bond ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,064.50 | 0.95 | % | $ | 4.86 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,020.08 | 0.95 | % | $ | 4.76 | ||||||||
AdvisorShares Madrona International ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,043.30 | 1.25 | % | $ | 6.33 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
AdvisorShares Meidell Tactical Advantage ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.00 | 1.35 | % | $ | 6.70 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.10 | 1.35 | % | $ | 6.76 | ||||||||
AdvisorShares Newfleet Multi-Sector Income ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,024.30 | 0.75 | % | $ | 3.76 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | 0.75 | % | $ | 3.76 |
53
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Fund Name | Beginning Account Value 1/1/2014 | Ending Account Value 6/30/2014 | Annualized Expense Ratio for the Period(1) | Expenses Paid | ||||||||||||
AdvisorShares Peritus High Yield ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,066.40 | 1.18 | % | $ | 6.05 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.94 | 1.18 | % | $ | 5.91 | ||||||||
AdvisorShares Pring Turner Business Cycle ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,098.10 | 1.49 | % | $ | 7.75 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.41 | 1.49 | % | $ | 7.45 | ||||||||
AdvisorShares QAM Equity Hedge ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,017.50 | 1.50 | % | $ | 7.50 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.36 | 1.50 | % | $ | 7.50 | ||||||||
AdvisorShares Ranger Equity Bear ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 922.50 | 1.85 | % | $ | 8.82 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,015.62 | 1.85 | % | $ | 9.25 | ||||||||
AdvisorShares Sage Core Reserves ETF(4) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.10 | 0.35 | % | $ | 1.60 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,021.28 | 0.35 | % | $ | 1.62 | ||||||||
AdvisorShares STAR Global Buy-Write ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,048.00 | 1.85 | % | $ | 9.39 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,015.62 | 1.85 | % | $ | 9.25 | ||||||||
AdvisorShares TrimTabs Float Shrink ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,057.20 | 0.99 | % | $ | 5.05 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,019.89 | 0.99 | % | $ | 4.96 | ||||||||
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,040.30 | 1.25 | % | $ | 6.32 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
AdvisorShares YieldPro ETF(5) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,019.50 | 1.07 | % | $ | 3.49 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,012.71 | 1.07 | % | $ | 3.48 |
(1) | Expense ratios reflect expense caps through the period ended June 30, 2014. |
(2) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
(3) | Fund commenced operations on February 11, 2014. Expenses are calculated using the Fund’s annualized expense ratio, multiplied by the ending value for the period, multiplied by 139/365 (to reflect commencement of operation). |
(4) | Fund commenced operations on January 14, 2014. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 167/365 (to reflect commencement of operation). |
(5) | Fund commenced operations on March 4, 2014. Expenses are calculated using the Fund’s annualized expense ratio, multiplied by the ending value for the period, multiplied by 118/365 (to reflect commencement of operation). |
54
ADVISORSHARES ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 95.7% | ||||||||
Equity Fund — 95.7% | ||||||||
Global X Norway 30 ETF | 151,088 | $ | 2,722,606 | |||||
iShares Core S&P 500 ETF | 13,239 | 2,608,083 | ||||||
iShares India 50 ETF | 67,865 | 1,966,049 | ||||||
iShares MSCI China ETF(a) | 86,077 | 3,991,390 | ||||||
iShares MSCI Indonesia ETF(a) | 123,504 | 3,258,036 | ||||||
iShares MSCI Israel Capped ETF(a) | 41,721 | 2,178,796 | ||||||
iShares MSCI South Korea Capped ETF(a) | 24,059 | 1,564,316 | ||||||
iShares MSCI Spain Capped ETF(a) | 54,750 | 2,344,395 | ||||||
iShares MSCI Taiwan ETF | 110,560 | 1,746,848 | ||||||
iShares MSCI Turkey ETF | 42,982 | 2,388,080 | ||||||
Total Exchange Traded Funds (Cost $24,404,637) | 24,768,599 | |||||||
MONEY MARKET FUND — 3.7% | ||||||||
Dreyfus Cash Management — Investor Class, 0.00%(b) (Cost $961,696) | 961,696 | 961,696 | ||||||
Total Investments — 99.4% (Cost $25,366,333) | 25,730,295 | |||||||
Other Assets in Excess of Liabilities — 0.6% | 165,721 | |||||||
Net Assets — 100.0% | $ | 25,896,016 |
ETF — Exchange Traded Fund
(a) | All or a portion of this security has been segregated as collateral for swap contracts. The aggregate market value of the collateral posted was $10,111,289 which includes cash in the amount of $116,127 as of June 30, 2014. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
55
ADVISORSHARES ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 95.7 | % | ||
Money Market Fund | 3.7 | |||
Total Investments | 99.4 | |||
Other Assets in Excess of Liabilities | 0.6 | |||
Net Assets | 100.0 | % |
Total Return Swaps contracts outstanding as of June 30, 2014:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Reference Entity | Number of Contracts | Annual Financing Rate Received (Paid) | Termination Date | Notional Amounts | Fair Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
iShares Malaysia ETF | (84,848 | ) | (0.37 | )% | 6/09/2015 | $ | (1,349,083 | ) | $ | (1,347,704 | ) | $ | 1,379 | |||||||||||
iShares MSCI Australia ETF | (50,780 | ) | (1.48 | ) | 6/09/2015 | (1,332,975 | ) | (1,328,145 | ) | 4,830 | ||||||||||||||
iShares MSCI Austria Investable Market Index Fund | (66,621 | ) | (3.48 | ) | 6/09/2015 | (1,331,088 | ) | (1,307,405 | ) | 23,683 | ||||||||||||||
iShares MSCI Brazil Index Fund | (28,769 | ) | (1.74 | ) | 6/09/2015 | (1,374,020 | ) | (1,375,991 | ) | (1,971 | ) | |||||||||||||
iShares MSCI Canada ETF | (43,553 | ) | (0.98 | ) | 6/09/2015 | (1,340,126 | ) | (1,403,684 | ) | (63,558 | ) | |||||||||||||
iShares MSCI Chile Capped ETF | (29,052 | ) | (1.51 | ) | 6/09/2015 | (1,364,282 | ) | (1,319,414 | ) | 44,868 | ||||||||||||||
iShares MSCI Japan Index Fund | (115,529 | ) | (0.74 | ) | 6/09/2015 | (1,360,932 | ) | (1,391,617 | ) | (30,685 | ) | |||||||||||||
iShares MSCI Mexico Capped ETF | (20,543 | ) | (0.99 | ) | 6/09/2015 | (1,395,075 | ) | (1,393,830 | ) | 1,245 | ||||||||||||||
iShares MSCI Netherlands Investable Market Index Fund | (52,592 | ) | (1.99 | ) | 6/09/2015 | (1,362,133 | ) | (1,348,090 | ) | 14,043 | ||||||||||||||
iShares MSCI Switzerland Index Fund | (38,581 | ) | (1.74 | ) | 6/09/2015 | (1,362,681 | ) | (1,325,486 | ) | 37,195 | ||||||||||||||
Net Unrealized Appreciation | $ | 31,029 |
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.
56
ADVISORSHARES ACCUVEST GLOBAL OPPORTUNITIES ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 98.5% | ||||||||
Equity Fund — 98.5% | ||||||||
Global X Norway 30 ETF(a) | 250,702 | $ | 4,517,650 | |||||
iShares Core S&P 500 ETF | 23,428 | 4,615,316 | ||||||
iShares MSCI China ETF | 120,142 | 5,570,985 | ||||||
iShares MSCI Indonesia ETF | 129,138 | 3,406,660 | ||||||
iShares MSCI Israel Capped ETF(a) | 66,914 | 3,494,450 | ||||||
iShares MSCI Turkey ETF | 62,188 | 3,455,165 | ||||||
Total Exchange Traded Funds (Cost $25,051,766) | 25,060,226 | |||||||
MONEY MARKET FUND — 0.9% | ||||||||
Dreyfus Cash Management – Investor Class, 0.00%(b) (Cost $231,471) | 231,471 | 231,471 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 24.9% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $6,328,525) | 6,328,525 | 6,328,525 | ||||||
Total Investments — 124.3% (Cost $31,611,762) | 31,620,222 | |||||||
Liabilities in Excess of Other Assets — (24.3)% | (6,186,071 | ) | ||||||
Net Assets — 100.0% | $ | 25,434,151 |
ETF — Exchange Traded Fund
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $6,166,571; the aggregate market value of the collateral held by the fund is $6,328,525. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 98.5 | % | ||
Money Market Fund | 25.8 | |||
Total Investments | 124.3 | |||
Liabilities in Excess of Other Assets | (24.3 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
57
ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUND — 69.0% | ||||||||
Debt Fund — 69.0% | ||||||||
AdvisorShares Sage Core Reserves ETF† (Cost $705,000) | 7,050 | $ | 703,660 | |||||
MONEY MARKET FUND — 5.0% | ||||||||
Goldman Sachs Financial Square Fund, 0.07%(a) (Cost $51,503) | 51,503 | 51,503 | ||||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $756,503) | 755,163 | |||||||
Securities Sold, Not Yet Purchased — (82.0)% | ||||||||
COMMON STOCKS — (82.0)% | ||||||||
Airlines — (2.8)% | ||||||||
Deutsche Lufthansa AG (Germany)(b) | (1,340 | ) | (28,689 | ) | ||||
Auto Parts & Equipment — (8.1)% | ||||||||
Autoliv, Inc. (Sweden) | (240 | ) | (25,579 | ) | ||||
Magna International, Inc. (Canada) | (530 | ) | (57,108 | ) | ||||
Total Auto Parts & Equipment | (82,687 | ) | ||||||
Banks — (5.9)% | ||||||||
Toronto-Dominion Bank (The) (Canada) | (1,160 | ) | (59,636 | ) | ||||
Building Materials — (4.5)% | ||||||||
CRH PLC (Ireland)(b) | (1,780 | ) | (46,013 | ) | ||||
Chemicals — (1.1)% | ||||||||
Braskem SA (Brazil)(b) | (870 | ) | (11,179 | ) | ||||
Computers — (3.8)% | ||||||||
CGI Group, Inc., Class A (Canada)* | (710 | ) | (25,191 | ) | ||||
Stratasys Ltd. (Israel)* | (120 | ) | (13,635 | ) | ||||
Total Computers | (38,826 | ) | ||||||
Diversified Financial Services — (3.2)% | ||||||||
AerCap Holdings N.V. (Netherlands)* | (560 | ) | (25,648 | ) | ||||
Altisource Portfolio Solutions SA (Luxembourg)* | (60 | ) | (6,875 | ) | ||||
Total Diversified Financial Services | (32,523) |
See accompanying Notes to Financial Statements.
58
ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Electronics — (3.0)% | ||||||||
Allegion PLC (Ireland) | (230 | ) | $ | (13,036 | ) | |||
Mettler-Toledo International, Inc.* | (70 | ) | (17,723 | ) | ||||
Total Electronics | (30,759 | ) | ||||||
Entertainment — (1.0)% | ||||||||
Lions Gate Entertainment Corp. | (350 | ) | (10,003 | ) | ||||
Healthcare – Services — (5.3)% | ||||||||
Fresenius Medical Care AG & Co. KGaA (Germany)(b) | (1,600 | ) | (53,584 | ) | ||||
Insurance — (10.6)% | ||||||||
Arch Capital Group Ltd. (Bermuda)* | (330 | ) | (18,955 | ) | ||||
Assured Guaranty Ltd. (Bermuda) | (440 | ) | (10,780 | ) | ||||
Everest Re Group Ltd. (Bermuda) | (120 | ) | (19,259 | ) | ||||
PartnerRe Ltd. (Bermuda) | (130 | ) | (14,197 | ) | ||||
RenaissanceRe Holdings Ltd. (Bermuda) | (100 | ) | (10,700 | ) | ||||
White Mountains Insurance Group Ltd. | (20 | ) | (12,169 | ) | ||||
XL Group PLC (Ireland) | (680 | ) | (22,256 | ) | ||||
Total Insurance | (108,316 | ) | ||||||
Iron/Steel — (1.3)% | ||||||||
Kobe Steel Ltd. (Japan)(b) | (1,760 | ) | (13,130 | ) | ||||
Lodging — (2.7)% | ||||||||
InterContinental Hotels Group PLC (United Kingdom)*(b) | (660 | ) | (27,397 | ) | ||||
Media — (8.6)% | ||||||||
Reed Elsevier PLC (United Kingdom)(b) | (1,360 | ) | (87,978 | ) | ||||
Miscellaneous Manufacturing — (4.0)% | ||||||||
Ingersoll-Rand PLC (Ireland) | (660 | ) | (41,257 | ) | ||||
Oil & Gas Services — (0.9)% | ||||||||
Frank’s International N.V. (Netherlands) | (390 | ) | (9,594 | ) | ||||
Pharmaceuticals — (7.1)% | ||||||||
Endo International PLC* | (400 | ) | (28,008 | ) | ||||
Herbalife Ltd. | (260 | ) | (16,781 | ) | ||||
Mallinckrodt PLC (Ireland)* | (150 | ) | (12,003) |
See accompanying Notes to Financial Statements.
59
ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Pharmaceuticals — (7.1)% (continued) | |||||||||
Taro Pharmaceutical Industries Ltd. (Israel)* | (110 | ) | $ | (15,426 | ) | ||||
Total Pharmaceuticals | (72,218 | ) | |||||||
Retail — (1.8)% | |||||||||
Tim Hortons, Inc. (Canada) | (340 | ) | (18,608 | ) | |||||
Telecommunications — (5.2)% | |||||||||
Telecom Italia SpA (Italy)*(b) | (4,200 | ) | (53,004 | ) | |||||
Transportation — (1.1)% | |||||||||
Teekay Corp. (Bermuda) | (180 | ) | (11,205 | ) | |||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(794,010)] | (836,606 | ) | |||||||
Total Investments — (8.0)% [Cost $(37,507)] | (81,443 | ) | |||||||
Other Assets in Excess of Liabilities — 108.0% | 1,101,401 | ||||||||
Net Assets — 100.0% | $ | 1,019,958 |
ETF — Exchange Traded Fund
PLC — Public Limited Company
† | Affiliated Company |
* | Non-income producing security |
(a) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(b) | American Depositary Receipt |
Cash of $517,047 has been segregated to cover margin requirement for open short sales as of June 30, 2014.
See accompanying Notes to Financial Statements.
60
ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Airlines | (2.8 | )% | ||
Auto Parts & Equipment | (8.1 | ) | ||
Banks | (5.9 | ) | ||
Building Materials | (4.5 | ) | ||
Chemicals | (1.1 | ) | ||
Computers | (3.8 | ) | ||
Debt Fund | 69.0 | |||
Diversified Financial Services | (3.2 | ) | ||
Electronics | (3.0 | ) | ||
Entertainment | (1.0 | ) | ||
Healthcare – Services | (5.3 | ) | ||
Insurance | (10.6 | ) | ||
Iron/Steel | (1.3 | ) | ||
Lodging | (2.7 | ) | ||
Media | (8.6 | ) | ||
Miscellaneous Manufacturing | (4.0 | ) | ||
Oil & Gas Services | (0.9 | ) | ||
Pharmaceuticals | (7.1 | ) | ||
Retail | (1.8 | ) | ||
Telecommunications | (5.2 | ) | ||
Transportation | (1.1 | ) | ||
Money Market Fund | 5.0 | |||
Total Investments | (8.0 | ) | ||
Other Assets in Excess of Liabilities | 108.0 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
61
ADVISORSHARES CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 99.5% | ||||||||
Asset Allocation Fund — 1.9% | ||||||||
WisdomTree Managed Futures Strategy Fund*(a) | 16,918 | $ | 706,665 | |||||
Commodity Fund — 14.8% | ||||||||
PowerShares DB Agriculture Fund*(a) | 38,282 | 1,051,224 | ||||||
PowerShares DB Base Metals Fund*(a) | 90,840 | 1,542,463 | ||||||
PowerShares DB Energy Fund*(a) | 23,951 | 736,493 | ||||||
PowerShares DB Precious Metals Fund* | 14,071 | 606,601 | ||||||
United States Commodity Index Fund*(a) | 24,453 | 1,482,341 | ||||||
Total Commodity Fund | 5,419,122 | |||||||
Currency Fund — 2.3% | ||||||||
CurrencyShares Australian Dollar Trust | 1,719 | 162,377 | ||||||
CurrencyShares British Pound Sterling Trust* | 994 | 167,399 | ||||||
CurrencyShares Canadian Dollar Trust | 589 | 54,895 | ||||||
CurrencyShares Japanese Yen Trust*(a) | 554 | 53,322 | ||||||
CurrencyShares Swiss Franc Trust*(a) | 477 | 52,599 | ||||||
WisdomTree Brazilian Real Strategy Fund*(a) | 9,413 | 182,142 | ||||||
WisdomTree Emerging Currency Strategy Fund*(a) | 7,912 | 162,750 | ||||||
Total Currency Fund | 835,484 | |||||||
Debt Fund — 16.4% | ||||||||
iShares 20+ Year Treasury Bond ETF | 16,946 | 1,923,710 | ||||||
iShares iBoxx $ High Yield Corporate Bond ETF(a) | 7,423 | 706,670 | ||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF(a) | 5,927 | 706,854 | ||||||
Market Vectors International High Yield Bond ETF(a) | 25,653 | 720,849 | ||||||
PowerShares Emerging Markets Sovereign Debt Portfolio | 37,172 | 1,083,935 | ||||||
PowerShares Fundamental High Yield Corporate Bond Portfolio | 35,896 | 703,562 | ||||||
WisdomTree Emerging Markets Local Debt Fund(a) | 3,478 | 165,344 | ||||||
Total Debt Fund | 6,010,924 | |||||||
Equity Fund — 64.1% | ||||||||
Cambria Foreign Shareholder Yield ETF | 81,238 | 2,211,705 | ||||||
Cambria Global Value ETF | 48,466 | 1,254,785 | ||||||
Cambria Shareholder Yield ETF(a) | 72,699 | 2,236,221 | ||||||
Energy Select Sector SPDR Fund | 6,226 | 623,223 | ||||||
Financial Select Sector SPDR Fund | 24,627 | 560,018 | ||||||
Global X FTSE Greece 20 ETF | 36,577 | 822,982 | ||||||
Health Care Select Sector SPDR Fund(a) | 9,122 | 554,891 | ||||||
Industrial Select Sector SPDR Fund | 11,016 | 595,525 | ||||||
iShares Mortgage Real Estate Capped ETF | 85,305 | 1,078,255 | ||||||
iShares MSCI Austria Capped ETF(a) | 34,550 | 676,489 | ||||||
iShares MSCI Brazil Capped ETF(a) | 13,306 | 635,761 | ||||||
iShares MSCI EAFE Small-Cap ETF | 6,981 | 369,435 | ||||||
iShares MSCI Ireland Capped ETF | 11,292 | 404,367 |
See accompanying Notes to Financial Statements.
62
ADVISORSHARES CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Equity Fund — 64.1% (continued) | |||||||||
iShares MSCI Italy Capped ETF(a) | 44,564 | $ | 774,522 | ||||||
iShares MSCI South Korea Capped ETF | 11,283 | 733,621 | |||||||
iShares MSCI Spain Capped ETF(a) | 17,304 | 740,957 | |||||||
iShares MSCI Taiwan ETF | 46,873 | 740,593 | |||||||
iShares Residential Real Estate Capped ETF | 22,139 | 1,181,116 | |||||||
Market Vectors Gold Miners ETF | 30,123 | 796,753 | |||||||
Market Vectors Junior Gold Miners ETF* | 9,000 | 380,340 | |||||||
Market Vectors Russia ETF | 30,838 | 811,965 | |||||||
Materials Select Sector SPDR Fund | 11,994 | 595,382 | |||||||
SPDR Dow Jones International Real Estate ETF | 22,680 | 1,003,363 | |||||||
SPDR S&P Emerging Markets SmallCap ETF | 7,695 | 387,058 | |||||||
Vanguard Global ex-U.S. Real Estate ETF | 12,786 | 742,227 | |||||||
Vanguard REIT ETF | 24,893 | 1,862,992 | |||||||
WisdomTree Emerging Markets SmallCap Dividend Fund | 6,954 | 333,931 | |||||||
WisdomTree International SmallCap Dividend Fund | 6,114 | 396,126 | |||||||
Total Equity Fund | 23,504,603 | ||||||||
Total Exchange Traded Funds (Cost $34,045,967) | 36,476,798 | ||||||||
MONEY MARKET FUND — 1.1% | |||||||||
Invesco Government & Agency Portfolio – Private Investment Class, 0.01%(b) (Cost $400,877) | 400,877 | 400,877 | |||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 18.7% | |||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $6,883,911) | 6,883,911 | 6,883,911 | |||||||
Total Investments — 119.3% (Cost $41,330,755) | 43,761,586 | ||||||||
Liabilities in Excess of Other Assets — (19.3)% | (7,094,864 | ) | |||||||
Net Assets — 100.0% | $ | 36,666,722 |
ETF — Exchange Traded Fund
* | Non-income producing security |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $6,721,952; the aggregate market value of the collateral held by the fund is $6,883,911. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
63
ADVISORSHARES CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Asset Allocation Fund | 1.9 | % | ||
Commodity Fund | 14.8 | |||
Currency Fund | 2.3 | |||
Debt Fund | 16.4 | |||
Equity Fund | 64.1 | |||
Money Market Fund | 19.8 | |||
Total Investments | 119.3 | |||
Liabilities in Excess of Other Assets | (19.3 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
64
ADVISORSHARES EQUITYPRO ETF†
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 96.4% | ||||||||
Equity Fund — 96.4% | ||||||||
iShares Global Consumer Discretionary ETF(a) | 20,153 | $ | 1,694,666 | |||||
iShares Global Consumer Staples ETF | 29,148 | 2,619,822 | ||||||
iShares Global Energy ETF | 39,599 | 1,921,344 | ||||||
iShares Global Financials ETF | 29,501 | 1,688,932 | ||||||
iShares Global Healthcare ETF(a) | 28,654 | 2,702,932 | ||||||
iShares Global Industrials ETF | 24,876 | 1,812,465 | ||||||
iShares Global Materials ETF | 28,513 | 1,839,659 | ||||||
iShares Global Tech ETF | 19,257 | 1,713,295 | ||||||
iShares Global Telecom ETF(a) | 25,552 | 1,611,309 | ||||||
iShares Global Utilities ETF | 34,537 | 1,737,556 | ||||||
Total Exchange Traded Funds (Cost $18,181,423) | 19,341,980 | |||||||
MONEY MARKET FUND — 1.9% | ||||||||
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.01%(b) (Cost $394,334) | 394,334 | 394,334 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 2.7% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $539,860) | 539,860 | 539,860 | ||||||
Total Investments — 101.0% (Cost $19,115,617) | 20,276,174 | |||||||
Liabilities in Excess of Other Assets — (1.0)% | (206,534 | ) | ||||||
Net Assets — 100.0% | $ | 20,069,640 |
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 $528,936; the aggregate market value of the collateral held by the fund is $539,860. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
65
ADVISORSHARES EQUITYPRO ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 96.4 | % | ||
Money Market Fund | 4.6 | |||
Total Investments | 101.0 | |||
Liabilities in Excess of Other Assets | (1.0 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
66
ADVISORSHARES GARTMAN GOLD/BRITISH POUND ETF
Schedule of Investments (Consolidated)†
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 70.0% | ||||||||
BlackRock Liquidity Funds TempFund Portfolio – Institutional Class, 0.03%(a) (Cost $879,015) | 879,015 | $ | 879,015 | |||||
Total Investments — 70.0% (Cost $879,015) | 879,015 | |||||||
Other Assets in Excess of Liabilities — 30.0% | 376,918 | |||||||
Net Assets — 100.0% | $ | 1,255,933 |
† | The Consolidated Schedule of Investments included the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See the Notes to Financial Statements. |
(a) | Rate shown reflects the 7-day yield as of June 30, 2014. |
Futures contracts outstanding as of June 30, 2014:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Type | Broker | Expiration Date | Number of Contracts | Value at Trade Date | Value at June 30, 2014 | Unrealized Appreciation/(Depreciation) | ||||||||||||||||||
British Pound Currency | BNP Paribas Securities Services | September 2014 | (12 | ) | $ | (1,260,138 | ) | $ | (1,282,125 | ) | $ | (21,987 | ) | |||||||||||
Gold 100 Oz. | BNP Paribas Securities Services | August 2014 | 10 | 1,259,910 | 1,322,000 | 62,090 | ||||||||||||||||||
$ | 40,103 |
See accompanying Notes to Financial Statements.
67
ADVISORSHARES GARTMAN GOLD/EURO ETF
Schedule of Investments (Consolidated)†
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 67.4% | ||||||||
BlackRock Liquidity Funds TempFund Portfolio – Institutional Class, 0.03%(a) (Cost $878,068) | 878,068 | $ | 878,068 | |||||
Total Investments — 67.4% (Cost $878,068) | 878,068 | |||||||
Other Assets in Excess of Liabilities — 32.6% | 424,158 | |||||||
Net Assets — 100.0% | $ | 1,302,226 |
† | The Consolidated Schedule of Investments included the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See the Notes to the Financial Statements. |
(a) | Rate shown reflects the 7-day yield as of June 30, 2014. |
Futures contracts outstanding as of June 30, 2014:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Type | Broker | Expiration Date | Number of Contracts | Value at Trade Date | Value at June 30, 2014 | Unrealized Appreciation/(Depreciation) | ||||||||||||||||||
EURO Currency | BNP Paribas Securities Services | September 2014 | (8 | ) | $ | (1,365,942 | ) | $ | (1,369,800 | ) | $ | (3,858 | ) | |||||||||||
Gold 100 Oz. | BNP Paribas Securities Services | August 2014 | 10 | 1,259,910 | 1,322,000 | 62,090 | ||||||||||||||||||
$ | 58,232 |
See accompanying Notes to Financial Statements.
68
ADVISORSHARES GARTMAN GOLD/YEN ETF
Schedule of Investments (Consolidated)†
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 81.8% | ||||||||
BlackRock Liquidity Funds TempFund Portfolio – Institutional Class, 0.03%(a) (Cost $3,173,799) | 3,173,799 | $ | 3,173,799 | |||||
Total Investments — 81.8% (Cost $3,173,799) | 3,173,799 | |||||||
Other Assets in Excess of Liabilities — 18.2% | 707,498 | |||||||
Net Assets — 100.0% | $ | 3,881,297 |
† | The Consolidated Schedule of Investments included the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See the Notes to Financial Statements. |
(a) | Rate shown reflects the 7-day yield as of June 30, 2014. |
Futures contracts outstanding as of June 30, 2014:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Type | Broker | Expiration Date | Number of Contracts | Value at Trade Date | Value at June 30, 2014 | Unrealized Appreciation/(Depreciation) | ||||||||||||||||||
Gold 100 Oz. | BNP Paribas Securities Services | August 2014 | 30 | $ | 3,779,730 | $ | 3,966,000 | $ | 186,270 | |||||||||||||||
Japanese Yen Currency | BNP Paribas Securities Services | September 2014 | (32 | ) | (3,906,568 | ) | (3,952,000 | ) | (45,432 | ) | ||||||||||||||
$ | 140,838 |
See accompanying Notes to Financial Statements.
69
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 54.4% | ||||||||
Auto Parts & Equipment — 3.0% | ||||||||
Johnson Controls, Inc. | 3,697 | $ | 184,591 | |||||
Tenneco, Inc.* | 1,329 | 87,316 | ||||||
Total Auto Parts & Equipment | 271,907 | |||||||
Banks — 2.3% | ||||||||
Boston Private Financial Holdings, Inc. | 7,486 | 100,612 | ||||||
City National Corp. | 774 | 58,638 | ||||||
Tompkins Financial Corp. | 1,169 | 56,322 | ||||||
Total Banks | 215,572 | |||||||
Beverages — 0.4% | ||||||||
Reed's, Inc.* | 6,773 | 35,423 | ||||||
Biotechnology — 1.7% | ||||||||
Illumina, Inc.* | 664 | 118,551 | ||||||
Isis Pharmaceuticals, Inc.*(a) | 1,201 | 41,374 | ||||||
Total Biotechnology | 159,925 | |||||||
Building Materials — 0.9% | ||||||||
TOTO Ltd. (Japan)(b) | 2,997 | 80,410 | ||||||
Chemicals — 2.3% | ||||||||
Novozymes A/S (Denmark)(a)(b) | 4,266 | 214,537 | ||||||
Commercial Services — 2.2% | ||||||||
Automatic Data Processing, Inc. | 1,046 | 82,927 | ||||||
MasterCard, Inc., Class A | 1,070 | 78,613 | ||||||
Where Food Comes From, Inc.*(a) | 16,616 | 38,050 | ||||||
Total Commercial Services | 199,590 | |||||||
Computers — 3.6% | ||||||||
Apple, Inc. | 1,869 | 173,686 | ||||||
EMC Corp. | 2,625 | 69,142 | ||||||
Stratasys Ltd. (Israel)*(a) | 420 | 47,725 | ||||||
Teradata Corp.* | 1,111 | 44,662 | ||||||
Total Computers | 335,215 |
See accompanying Notes to Financial Statements.
70
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Cosmetics/Personal Care — 0.7% | ||||||||
Procter & Gamble Co. (The) | 806 | $ | 63,344 | |||||
Diversified Financial Services — 2.3% | ||||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 4,532 | 64,989 | ||||||
MarketAxess Holdings, Inc. | 525 | 28,381 | ||||||
Outerwall, Inc.*(a) | 1,206 | 71,576 | ||||||
WageWorks, Inc.* | 918 | 44,257 | ||||||
Total Diversified Financial Services | 209,203 | |||||||
Electronics — 1.1% | ||||||||
Thermo Fisher Scientific, Inc. | 829 | 97,822 | ||||||
Environmental Control — 1.5% | ||||||||
Clean Harbors, Inc.* | 1,296 | 83,268 | ||||||
Energy Recovery, Inc.*(a) | 2,915 | 14,342 | ||||||
Tomra Systems ASA (Norway)(b) | 4,491 | 36,961 | ||||||
Total Environmental Control | 134,571 | |||||||
Food — 4.5% | ||||||||
Boulder Brands, Inc.* | 2,798 | 39,676 | ||||||
Nestle SA (Switzerland)(b) | 497 | 38,602 | ||||||
Sprouts Farmers Market, Inc.*(a) | 1,713 | 56,049 | ||||||
SunOpta, Inc.* | 3,002 | 42,268 | ||||||
United Natural Foods, Inc.* | 2,157 | 140,421 | ||||||
WhiteWave Foods Co. (The)* | 3,147 | 101,868 | ||||||
Total Food | 418,884 | |||||||
Healthcare – Products — 0.9% | ||||||||
Covidien PLC (Ireland) | 923 | 83,236 | ||||||
Healthcare – Services — 0.7% | ||||||||
Laboratory Corp. of America Holdings* | 600 | 61,440 | ||||||
Internet — 2.4% | ||||||||
eBay, Inc.* | 1,019 | 51,011 | ||||||
F5 Networks, Inc.* | 591 | 65,861 | ||||||
Google, Inc., Class C* | 86 | 49,474 |
See accompanying Notes to Financial Statements.
71
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Internet — 2.4% (continued) | |||||||||
Google, Inc., Class A* | 86 | $ | 50,282 | ||||||
Total Internet | 216,628 | ||||||||
Machinery – Diversified — 3.1% | |||||||||
Rockwell Automation, Inc. | 495 | 61,954 | |||||||
Tennant Co. | 845 | 64,491 | |||||||
Xylem, Inc. | 4,066 | 158,899 | |||||||
Total Machinery – Diversified | 285,344 | ||||||||
Miscellaneous Manufacturing — 1.2% | |||||||||
AptarGroup, Inc. | 1,094 | 73,309 | |||||||
Pure Technologies Ltd. (Canada) | 5,615 | 37,733 | |||||||
Total Miscellaneous Manufacturing | 111,042 | ||||||||
Office Furnishings — 1.6% | |||||||||
Interface, Inc. | 4,204 | 79,204 | |||||||
Steelcase, Inc., Class A | 4,494 | 67,994 | |||||||
Total Office Furnishings | 147,198 | ||||||||
Pharmaceuticals — 3.7% | |||||||||
GlaxoSmithKline PLC (United Kingdom)(b) | 1,608 | 85,996 | |||||||
Novartis AG (Switzerland)(b) | 1,119 | 101,303 | |||||||
Perrigo Co. PLC | 504 | 73,463 | |||||||
Teva Pharmaceutical Industries Ltd. (Israel)(b) | 1,596 | 83,662 | |||||||
Total Pharmaceuticals | 344,424 | ||||||||
Real Estate — 0.6% | |||||||||
Jones Lang LaSalle, Inc. | 468 | 59,151 | |||||||
Real Estate Investment Trusts — 1.9% | |||||||||
Prologis, Inc. | 1,977 | 81,235 | |||||||
Vornado Realty Trust | 898 | 95,843 | |||||||
Total Real Estate Investment Trusts | 177,078 |
See accompanying Notes to Financial Statements.
72
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Retail — 1.3% | ||||||||
CVS Caremark Corp. | 1,249 | $ | 94,137 | |||||
Target Corp. | 450 | 26,078 | ||||||
Total Retail | 120,215 | |||||||
Semiconductors — 3.4% | ||||||||
Cree, Inc.* | 914 | 45,654 | ||||||
First Solar, Inc.* | 625 | 44,413 | ||||||
IPG Photonics Corp.*(a) | 933 | 64,190 | ||||||
NXP Semiconductor NV (Netherlands)* | 874 | 57,841 | ||||||
SunEdison, Inc.* | 2,535 | 57,291 | ||||||
Xilinx, Inc. | 850 | 40,214 | ||||||
Total Semiconductors | 309,603 | |||||||
Software — 1.5% | ||||||||
Adobe Systems, Inc.* | 1,274 | 92,187 | ||||||
Fiserv, Inc.* | 705 | 42,525 | ||||||
Total Software | 134,712 | |||||||
Telecommunications — 1.4% | ||||||||
Corning, Inc. | 2,691 | 59,068 | ||||||
Sierra Wireless, Inc. (Canada)*(a) | 1,200 | 24,204 | ||||||
Telenor ASA (Norway)(b) | 686 | 46,922 | ||||||
Total Telecommunications | 130,194 | |||||||
Transportation — 2.6% | ||||||||
Canadian National Railway Co. (Canada) | 2,258 | 146,815 | ||||||
Union Pacific Corp. | 964 | 96,159 | ||||||
Total Transportation | 242,974 | |||||||
Water — 1.6% | ||||||||
American Water Works Co., Inc. | 1,614 | 79,812 | ||||||
Severn Trent PLC (United Kingdom)(a)(b) | 2,186 | 72,228 | ||||||
Total Water | 152,040 | |||||||
Total Common Stocks (Cost $4,215,342) | 5,011,682 |
See accompanying Notes to Financial Statements.
73
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares/ Principal | Value | ||||||
ASSET BACKED SECURITIES — 15.0% | ||||||||
SBA, 4.09%, 07/25/38@ | $ | 142,979 | $ | 164,123 | ||||
SBA, 4.15%, 02/25/39@ | 198,848 | 230,581 | ||||||
SBAP, Class 1, Series 2009-20H, 4.45%, 08/01/29 | 203,163 | 221,194 | ||||||
SBAP, Class 1, Series 2010-20A, 4.38%, 01/01/30 | 161,451 | 173,991 | ||||||
SBAP, Class 1, Series 2010-20B, 4.14%, 02/01/30 | 320,919 | 340,526 | ||||||
U.S. SBA, Class 1, Series 2010-10A, 4.11%, 03/10/20 | 232,844 | 249,229 | ||||||
Total Asset Backed Securities (Cost $1,393,657) | 1,379,644 | |||||||
COMMERCIAL MORTGAGE BACKED SECURITY — 2.8% | ||||||||
Government National Mortgage Association, Class AC, Series 2011-109, 3.25%, 04/16/43 (Cost $266,977) | 250,000 | 257,784 | ||||||
MUNICIPAL BOND — 3.3% | ||||||||
Allegheny County Residential Finance Authority, 0.14%, 11/01/35@ (Cost $300,000) | 300,000 | 300,000 | ||||||
EXCHANGE TRADED FUNDS — 22.4% | ||||||||
Debt Fund — 11.9% | ||||||||
AdvisorShares Sage Core Reserves ETF† | 11,005 | 1,098,409 | ||||||
Equity Fund — 10.5% | ||||||||
AdvisorShares Ranger Equity Bear ETF*† | 1,000 | 11,780 | ||||||
First Trust Global Wind Energy ETF | 2,200 | 29,348 | ||||||
Global X Lithium ETF | 6,900 | 93,841 | ||||||
Guggenheim S&P Global Water Index ETF | 2,300 | 69,299 | ||||||
iShares MSCI KLD 400 Social ETF(a) | 5,300 | 387,748 | ||||||
PowerShares Cleantech Portfolio | 2,400 | 78,888 | ||||||
PowerShares Global Clean Energy Portfolio(a) | 11,500 | 160,310 | ||||||
PowerShares Water Resources Portfolio | 3,700 | 98,383 | ||||||
PowerShares Wilderhill Clean Energy Portfolio(a) | 5,900 | 40,651 | ||||||
Total Equity Fund | 970,248 | |||||||
Total Exchange Traded Funds (Cost $1,982,249) | 2,068,657 |
See accompanying Notes to Financial Statements.
74
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUNDS — 2.4% | ||||||||
Federated Government Obligation Fund, Class IS, 0.01%(c) | 61,418 | $ | 61,418 | |||||
Fidelity Institutional Money Market Government Portfolio – Class I, 0.01%(c) | 55,667 | 55,667 | ||||||
Fidelity Institutional Money Market Portfolio – Institutional Class, 0.09%(c) | 107,238 | 107,238 | ||||||
Total Money Market Funds (Cost $224,323) | 224,323 | |||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 6.1% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(d) (Cost $566,100) | 566,100 | 566,100 | ||||||
Total Investments — 106.4% (Cost $8,948,648) | 9,808,190 | |||||||
Liabilities in Excess of Other Assets — (6.4%) | (592,075 | ) | ||||||
Net Assets — 100.0% | $ | 9,216,115 |
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 June 30, 2014. |
† | Affiliated Company |
(a) | All or a portion of security is on loan; the aggregate market value of the securities on loan is $553,290; the aggregate market value of the collateral held by the fund is $566,100. |
(b) | American Depositary Receipt. |
(c) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(d) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
75
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Asset Backed Securities | 15.0 | % | ||
Auto Parts & Equipment | 3.0 | |||
Banks | 2.3 | |||
Beverages | 0.4 | |||
Biotechnology | 1.7 | |||
Building Materials | 0.9 | |||
Chemicals | 2.3 | |||
Commercial Mortgage Backed Security | 2.8 | |||
Commercial Services | 2.2 | |||
Computers | 3.6 | |||
Cosmetics/Personal Care | 0.7 | |||
Debt Fund | 11.9 | |||
Diversified Financial Services | 2.3 | |||
Electronics | 1.1 | |||
Environmental Control | 1.5 | |||
Equity Fund | 10.5 | |||
Food | 4.5 | |||
Healthcare – Products | 0.9 | |||
Healthcare – Services | 0.7 | |||
Internet | 2.4 | |||
Machinery – Diversified | 3.1 | |||
Miscellaneous Manufacturing | 1.2 | |||
Money Market Funds | 8.5 | |||
Municipal Bond | 3.3 | |||
Office Furnishings | 1.6 | |||
Pharmaceuticals | 3.7 | |||
Real Estate | 0.6 | |||
Real Estate Investment Trusts | 1.9 | |||
Retail | 1.3 | |||
Semiconductors | 3.4 | |||
Software | 1.5 | |||
Telecommunications | 1.4 | |||
Transportation | 2.6 | |||
Water | 1.6 | |||
Total Investments | 106.4 | |||
Liabilities in Excess of Other Assets | (6.4 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
76
ADVISORSHARES INTERNATIONAL GOLD ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 96.7% | ||||||||
Commodity Fund — 96.7% | ||||||||
AdvisorShares Gartman Gold/British Pound ETF*† | 26,100 | $ | 327,291 | |||||
AdvisorShares Gartman Gold/Euro ETF*† | 26,100 | 339,300 | ||||||
AdvisorShares Gartman Gold/Yen ETF*† | 26,100 | 341,135 | ||||||
PowerShares DB Gold Fund* | 5,350 | 238,075 | ||||||
Total Exchange Traded Funds (Cost $1,233,459) | 1,245,801 | |||||||
MONEY MARKET FUND — 2.0% | ||||||||
BlackRock Liquidity Funds TempFund Portfolio – Institutional Class, 0.03%(a) (Cost $25,673) | 25,673 | 25,673 | ||||||
Total Investments — 98.7% (Cost $1,259,132) | 1,271,474 | |||||||
Other Assets in Excess of Liabilities — 1.3% | 16,361 | |||||||
Net Assets — 100.0% | $ | 1,287,835 |
ETF — Exchange Traded Fund
* | Non-income producing security |
† | Affiliated Company |
(a) | Rate shown reflects the 7-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
77
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 98.5% | ||||||||
Advertising — 0.3% | ||||||||
Interpublic Group of Cos., Inc. (The) | 2,561 | $ | 49,965 | |||||
Omnicom Group, Inc. | 319 | 22,719 | ||||||
Total Advertising | 72,684 | |||||||
Aerospace/Defense — 0.9% | ||||||||
Boeing Co. (The) | 238 | 30,281 | ||||||
General Dynamics Corp. | 197 | 22,960 | ||||||
L-3 Communications Holdings, Inc. | 107 | 12,920 | ||||||
Lockheed Martin Corp. | 152 | 24,431 | ||||||
Northrop Grumman Corp. | 208 | 24,883 | ||||||
Raytheon Co. | 423 | 39,022 | ||||||
Rockwell Collins, Inc. | 329 | 25,708 | ||||||
United Technologies Corp. | 410 | 47,335 | ||||||
Total Aerospace/Defense | 227,540 | |||||||
Agriculture — 0.7% | ||||||||
Altria Group, Inc. | 582 | 24,409 | ||||||
Archer-Daniels-Midland Co. | 2,061 | 90,911 | ||||||
Lorillard, Inc. | 447 | 27,253 | ||||||
Philip Morris International, Inc. | 212 | 17,874 | ||||||
Reynolds American, Inc. | 352 | 21,243 | ||||||
Total Agriculture | 181,690 | |||||||
Airlines — 0.7% | ||||||||
Delta Air Lines, Inc. | 794 | 30,744 | ||||||
Southwest Airlines Co. | 5,596 | 150,308 | ||||||
Total Airlines | 181,052 | |||||||
Apparel — 0.7% | ||||||||
NIKE, Inc., Class B | 437 | 33,889 | ||||||
Ralph Lauren Corp. | 464 | 74,560 | ||||||
Under Armour, Inc., Class A* | 456 | 27,128 | ||||||
VF Corp. | 714 | 44,982 | ||||||
Total Apparel | 180,559 |
See accompanying Notes to Financial Statements.
78
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Auto Manufacturers — 1.3% | ||||||||
Ford Motor Co. | 8,130 | $ | 140,161 | |||||
General Motors Co. | 4,183 | 151,843 | ||||||
PACCAR, Inc. | 515 | 32,358 | ||||||
Total Auto Manufacturers | 324,362 | |||||||
Auto Parts & Equipment — 1.6% | ||||||||
BorgWarner, Inc. | 1,747 | 113,887 | ||||||
Goodyear Tire & Rubber Co. (The) | 5,308 | 147,456 | ||||||
Johnson Controls, Inc. | 2,569 | 128,270 | ||||||
Total Auto Parts & Equipment | 389,613 | |||||||
Banks — 4.2% | ||||||||
Bank of America Corp. | 1,191 | 18,306 | ||||||
Bank of New York Mellon Corp. (The) | 1,964 | 73,611 | ||||||
BB&T Corp. | 1,221 | 48,144 | ||||||
Capital One Financial Corp. | 337 | 27,836 | ||||||
Citigroup, Inc. | 2,264 | 106,634 | ||||||
Comerica, Inc. | 351 | 17,606 | ||||||
Fifth Third Bancorp | 967 | 20,645 | ||||||
Goldman Sachs Group, Inc. (The) | 386 | 64,632 | ||||||
Huntington Bancshares, Inc. | 3,244 | 30,948 | ||||||
JPMorgan Chase & Co. | 1,684 | 97,032 | ||||||
KeyCorp | 1,221 | 17,497 | ||||||
M&T Bank Corp. | 241 | 29,896 | ||||||
Morgan Stanley | 4,670 | 150,981 | ||||||
Northern Trust Corp. | 621 | 39,874 | ||||||
PNC Financial Services Group, Inc. (The) | 264 | 23,509 | ||||||
Regions Financial Corp. | 2,892 | 30,713 | ||||||
State Street Corp. | 900 | 60,534 | ||||||
SunTrust Banks, Inc. | 1,027 | 41,142 | ||||||
US Bancorp | 534 | 23,133 | ||||||
Wells Fargo & Co. | 1,028 | 54,032 | ||||||
Zions Bancorporation | 2,392 | 70,492 | ||||||
Total Banks | 1,047,197 |
See accompanying Notes to Financial Statements.
79
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Beverages — 1.3% | ||||||||
Brown-Forman Corp., Class B | 167 | $ | 15,726 | |||||
Coca-Cola Co. (The) | 321 | 13,598 | ||||||
Coca-Cola Enterprises, Inc. | 991 | 47,350 | ||||||
Constellation Brands, Inc., Class A* | 909 | 80,110 | ||||||
Dr Pepper Snapple Group, Inc. | 365 | 21,382 | ||||||
Keurig Green Mountain, Inc. | 650 | 80,996 | ||||||
Molson Coors Brewing Co., Class B | 229 | 16,983 | ||||||
Monster Beverage Corp.* | 460 | 32,674 | ||||||
PepsiCo, Inc. | 189 | 16,885 | ||||||
Total Beverages | 325,704 | |||||||
Biotechnology — 2.4% | ||||||||
Alexion Pharmaceuticals, Inc.* | 526 | 82,187 | ||||||
Amgen, Inc. | 281 | 33,262 | ||||||
Biogen Idec, Inc.* | 328 | 103,422 | ||||||
Celgene Corp.* | 1,804 | 154,927 | ||||||
Gilead Sciences, Inc.* | 1,848 | 153,218 | ||||||
Regeneron Pharmaceuticals, Inc.* | 199 | 56,212 | ||||||
Total Biotechnology | 583,228 | |||||||
Building Materials — 0.5% | ||||||||
Masco Corp. | 5,772 | 128,138 | ||||||
Chemicals — 1.9% | ||||||||
Air Products & Chemicals, Inc. | 207 | 26,624 | ||||||
Airgas, Inc. | 289 | 31,475 | ||||||
CF Industries Holdings, Inc. | 157 | 37,763 | ||||||
Dow Chemical Co. (The) | 430 | 22,128 | ||||||
E.I. du Pont de Nemours & Co. | 368 | 24,082 | ||||||
Eastman Chemical Co. | 765 | 66,823 | ||||||
Ecolab, Inc. | 292 | 32,511 | ||||||
FMC Corp. | 594 | 42,287 | ||||||
International Flavors & Fragrances, Inc. | 206 | 21,482 | ||||||
Monsanto Co. | 401 | 50,021 | ||||||
PPG Industries, Inc. | 115 | 24,167 | ||||||
Praxair, Inc. | 231 | 30,686 |
See accompanying Notes to Financial Statements.
80
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Chemicals — 1.9% (continued) | |||||||||
Sherwin-Williams Co. (The) | 156 | $ | 32,278 | ||||||
Sigma-Aldrich Corp. | 158 | 16,034 | |||||||
Total Chemicals | 458,361 | ||||||||
Coal — 0.0%** | |||||||||
CONSOL Energy, Inc. | 203 | 9,352 | |||||||
Commercial Services — 2.7% | |||||||||
ADT Corp. (The) | 868 | 30,328 | |||||||
Alliance Data Systems Corp.* | 304 | 85,500 | |||||||
Automatic Data Processing, Inc. | 252 | 19,978 | |||||||
Cintas Corp. | 457 | 29,038 | |||||||
Equifax, Inc. | 410 | 29,741 | |||||||
Iron Mountain, Inc. | 509 | 18,044 | |||||||
MasterCard, Inc., Class A | 848 | 62,303 | |||||||
McGraw Hill Financial, Inc. | 879 | 72,983 | |||||||
Moody’s Corp. | 568 | 49,791 | |||||||
Quanta Services, Inc.* | 1,436 | 49,657 | |||||||
Robert Half International, Inc. | 1,566 | 74,761 | |||||||
Total System Services, Inc. | 1,580 | 49,628 | |||||||
Western Union Co. (The) | 5,593 | 96,983 | |||||||
Total Commercial Services | 668,735 | ||||||||
Computers — 3.5% | |||||||||
Apple, Inc. | 1,211 | 112,538 | |||||||
Cognizant Technology Solutions Corp., Class A* | 1,993 | 97,478 | |||||||
Computer Sciences Corp. | 468 | 29,578 | |||||||
EMC Corp. | 3,740 | 98,512 | |||||||
Hewlett-Packard Co. | 693 | 23,340 | |||||||
International Business Machines Corp. | 624 | 113,112 | |||||||
NetApp, Inc. | 3,199 | 116,827 | |||||||
SanDisk Corp. | 1,603 | 167,401 | |||||||
Teradata Corp.* | 1,490 | 59,898 | |||||||
Western Digital Corp. | 385 | 35,536 | |||||||
Total Computers | 854,220 |
See accompanying Notes to Financial Statements.
81
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Cosmetics/Personal Care — 0.4% | ||||||||
Avon Products, Inc. | 2,028 | $ | 29,629 | |||||
Colgate-Palmolive Co. | 250 | 17,045 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 320 | 23,763 | ||||||
Procter & Gamble Co. (The) | 234 | 18,390 | ||||||
Total Cosmetics/Personal Care | 88,827 | |||||||
Distribution/Wholesale — 0.9% | ||||||||
Fastenal Co. | 657 | 32,515 | ||||||
Fossil Group, Inc.* | 1,163 | 121,557 | ||||||
Genuine Parts Co. | 200 | 17,560 | ||||||
W.W. Grainger, Inc. | 189 | 48,057 | ||||||
Total Distribution/Wholesale | 219,689 | |||||||
Diversified Financial Services — 5.8% | ||||||||
American Express Co. | 632 | 59,958 | ||||||
Ameriprise Financial, Inc. | 1,159 | 139,080 | ||||||
BlackRock, Inc. | 253 | 80,859 | ||||||
Charles Schwab Corp. (The) | 2,959 | 79,686 | ||||||
CME Group, Inc. | 543 | 38,526 | ||||||
Discover Financial Services | 1,995 | 123,650 | ||||||
E*TRADE Financial Corp.* | 5,858 | 124,541 | ||||||
Franklin Resources, Inc. | 2,281 | 131,933 | ||||||
Intercontinental Exchange, Inc. | 539 | 101,817 | ||||||
Invesco Ltd. | 3,056 | 115,364 | ||||||
Legg Mason, Inc. | 2,970 | 152,391 | ||||||
NASDAQ OMX Group, Inc. (The) | 3,311 | 127,871 | ||||||
T. Rowe Price Group, Inc. | 904 | 76,306 | ||||||
Visa, Inc., Class A | 361 | 76,066 | ||||||
Total Diversified Financial Services | 1,428,048 |
See accompanying Notes to Financial Statements.
82
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Electric — 1.2% | ||||||||
AES Corp. (The) | 2,416 | $ | 37,569 | |||||
Ameren Corp. | 503 | 20,563 | ||||||
American Electric Power Co., Inc. | 204 | 11,377 | ||||||
CMS Energy Corp. | 503 | 15,668 | ||||||
Consolidated Edison, Inc. | 142 | 8,199 | ||||||
Dominion Resources, Inc. | 151 | 10,800 | ||||||
DTE Energy Co. | 176 | 13,705 | ||||||
Duke Energy Corp. | 139 | 10,312 | ||||||
Edison International | 186 | 10,808 | ||||||
Integrys Energy Group, Inc. | 207 | 14,724 | ||||||
NextEra Energy, Inc. | 143 | 14,655 | ||||||
Northeast Utilities | 335 | 15,835 | ||||||
Pepco Holdings, Inc. | 418 | 11,487 | ||||||
PG&E Corp. | 323 | 15,510 | ||||||
Pinnacle West Capital Corp. | 246 | 14,229 | ||||||
Public Service Enterprise Group, Inc. | 342 | 13,950 | ||||||
SCANA Corp. | 249 | 13,399 | ||||||
Southern Co. (The) | 214 | 9,711 | ||||||
TECO Energy, Inc. | 512 | 9,462 | ||||||
Wisconsin Energy Corp. | 229 | 10,745 | ||||||
Xcel Energy, Inc. | 405 | 13,053 | ||||||
Total Electric | 295,761 | |||||||
Electrical Components & Equipment — 0.3% | ||||||||
AMETEK, Inc. | 610 | 31,891 | ||||||
Emerson Electric Co. | 481 | 31,919 | ||||||
Total Electrical Components & Equipment | 63,810 | |||||||
Electronics — 1.3% | ||||||||
Agilent Technologies, Inc. | 603 | 34,637 | ||||||
Amphenol Corp., Class A | 268 | 25,819 | ||||||
FLIR Systems, Inc. | 731 | 25,388 | ||||||
Honeywell International, Inc. | 377 | 35,042 | ||||||
Jabil Circuit, Inc. | 1,189 | 24,850 | ||||||
PerkinElmer, Inc. | 1,280 | 59,955 |
See accompanying Notes to Financial Statements.
83
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Electronics — 1.3% (continued) | |||||||||
Thermo Fisher Scientific, Inc. | 707 | $ | 83,426 | ||||||
Waters Corp.* | 303 | 31,645 | |||||||
Total Electronics | 320,762 | ||||||||
Engineering & Construction — 0.7% | |||||||||
Fluor Corp. | 854 | 65,673 | |||||||
Jacobs Engineering Group, Inc.* | 1,834 | 97,715 | |||||||
Total Engineering & Construction | 163,388 | ||||||||
Entertainment — 0.2% | |||||||||
International Game Technology | 3,872 | 61,604 | |||||||
Environmental Control — 0.3% | |||||||||
Republic Services, Inc. | 596 | 22,630 | |||||||
Stericycle, Inc.* | 275 | 32,566 | |||||||
Waste Management, Inc. | 365 | 16,326 | |||||||
Total Environmental Control | 71,522 | ||||||||
Food — 1.4% | |||||||||
Campbell Soup Co. | 216 | 9,895 | |||||||
ConAgra Foods, Inc. | 891 | 26,445 | |||||||
General Mills, Inc. | 330 | 17,338 | |||||||
Hershey Co. (The) | 189 | 18,403 | |||||||
JM Smucker Co. (The) | 199 | 21,207 | |||||||
Kellogg Co. | 247 | 16,228 | |||||||
Kraft Foods Group, Inc. | 387 | 23,201 | |||||||
Kroger Co. (The) | 1,247 | 61,639 | |||||||
McCormick & Co., Inc. | 204 | 14,604 | |||||||
Mondelez International, Inc., Class A | 894 | 33,623 | |||||||
Safeway, Inc. | 416 | 14,285 | |||||||
Sysco Corp. | 466 | 17,452 | |||||||
Tyson Foods, Inc., Class A | 1,579 | 59,276 | |||||||
Whole Foods Market, Inc. | 560 | 21,633 | |||||||
Total Food | 355,229 |
See accompanying Notes to Financial Statements.
84
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Forest Products & Paper — 0.7% | ||||||||
International Paper Co. | 2,946 | $ | 148,685 | |||||
MeadWestvaco Corp. | 594 | 26,290 | ||||||
Total Forest Products & Paper | 174,975 | |||||||
Gas — 0.2% | ||||||||
AGL Resources, Inc. | 239 | 13,152 | ||||||
CenterPoint Energy, Inc. | 414 | 10,574 | ||||||
NiSource, Inc. | 421 | 16,562 | ||||||
Sempra Energy | 120 | 12,565 | ||||||
Total Gas | 52,853 | |||||||
Hand/Machine Tools — 0.3% | ||||||||
Snap-On, Inc. | 334 | 39,586 | ||||||
Stanley Black & Decker, Inc. | 314 | 27,575 | ||||||
Total Hand/Machine Tools | 67,161 | |||||||
Healthcare – Products — 1.9% | ||||||||
Baxter International, Inc. | 399 | 28,848 | ||||||
Becton Dickinson and Co. | 224 | 26,499 | ||||||
Boston Scientific Corp.* | 1,413 | 18,044 | ||||||
C.R. Bard, Inc. | 405 | 57,919 | ||||||
CareFusion Corp.* | 1,492 | 66,170 | ||||||
DENTSPLY International, Inc. | 621 | 29,404 | ||||||
Edwards Lifesciences Corp.* | 288 | 24,722 | ||||||
Hospira, Inc.* | 526 | 27,021 | ||||||
Intuitive Surgical, Inc.* | 44 | 18,119 | ||||||
Medtronic, Inc. | 325 | 20,722 | ||||||
Patterson Cos., Inc. | 722 | 28,526 | ||||||
St. Jude Medical, Inc. | 453 | 31,370 | ||||||
Stryker Corp. | 315 | 26,561 | ||||||
Varian Medical Systems, Inc.* | 391 | 32,508 | ||||||
Zimmer Holdings, Inc. | 287 | 29,808 | ||||||
Total Healthcare – Products | 466,241 |
See accompanying Notes to Financial Statements.
85
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Healthcare – Services — 2.3% | ||||||||
Aetna, Inc. | 1,410 | $ | 114,323 | |||||
Cigna Corp. | 1,116 | 102,639 | ||||||
DaVita HealthCare Partners, Inc.* | 425 | 30,736 | ||||||
Humana, Inc. | 313 | 39,976 | ||||||
Laboratory Corp. of America Holdings* | 431 | 44,134 | ||||||
Quest Diagnostics, Inc. | 1,250 | 73,363 | ||||||
Tenet Healthcare Corp.* | 442 | 20,747 | ||||||
UnitedHealth Group, Inc. | 756 | 61,803 | ||||||
WellPoint, Inc. | 767 | 82,537 | ||||||
Total Healthcare – Services | 570,258 | |||||||
Home Builders — 0.7% | ||||||||
D.R. Horton, Inc. | 4,977 | 122,334 | ||||||
Lennar Corp., Class A | 317 | 13,308 | ||||||
PulteGroup, Inc. | 1,774 | 35,764 | ||||||
Total Home Builders | 171,406 | |||||||
Home Furnishings — 1.0% | ||||||||
Harman International Industries, Inc. | 1,178 | 126,552 | ||||||
Whirlpool Corp. | 913 | 127,108 | ||||||
Total Home Furnishings | 253,660 | |||||||
Household Products/Wares — 0.2% | ||||||||
Avery Dennison Corp. | 560 | 28,700 | ||||||
Clorox Co. (The) | 169 | 15,447 | ||||||
Kimberly-Clark Corp. | 148 | 16,460 | ||||||
Total Household Products/Wares | 60,607 | |||||||
Housewares — 0.1% | ||||||||
Newell Rubbermaid, Inc. | 1,065 | 33,004 | ||||||
Insurance — 5.1% | ||||||||
Aflac, Inc. | 1,026 | 63,869 | ||||||
Allstate Corp. (The) | 1,314 | 77,158 | ||||||
American International Group, Inc. | 1,880 | 102,610 | ||||||
Assurant, Inc. | 366 | 23,991 | ||||||
Berkshire Hathaway, Inc., Class B* | 153 | 19,364 |
See accompanying Notes to Financial Statements.
86
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Insurance — 5.1% (continued) | |||||||||
Chubb Corp. (The) | 768 | $ | 70,787 | ||||||
Genworth Financial, Inc., Class A* | 1,006 | 17,504 | |||||||
Hartford Financial Services Group, Inc. (The) | 1,878 | 67,251 | |||||||
Lincoln National Corp. | 2,499 | 128,549 | |||||||
Marsh & McLennan Cos., Inc. | 584 | 30,263 | |||||||
MetLife, Inc. | 1,844 | 102,453 | |||||||
Principal Financial Group, Inc. | 2,666 | 134,580 | |||||||
Progressive Corp. (The) | 1,417 | 35,935 | |||||||
Prudential Financial, Inc. | 1,605 | 142,476 | |||||||
Torchmark Corp. | 674 | 55,214 | |||||||
Travelers Cos., Inc. (The) | 907 | 85,321 | |||||||
Unum Group | 3,040 | 105,670 | |||||||
Total Insurance | 1,262,995 | ||||||||
Internet — 2.9% | |||||||||
Amazon.com, Inc.* | 27 | 8,769 | |||||||
eBay, Inc.* | 1,251 | 62,625 | |||||||
Expedia, Inc. | 940 | 74,034 | |||||||
F5 Networks, Inc.* | 753 | 83,914 | |||||||
Facebook, Inc., Class A* | 940 | 63,253 | |||||||
Google, Inc., Class A* | 163 | 95,301 | |||||||
Netflix, Inc.* | 51 | 22,471 | |||||||
Priceline Group, Inc. (The)* | 92 | 110,676 | |||||||
Symantec Corp. | 2,624 | 60,090 | |||||||
TripAdvisor, Inc.* | 436 | 47,376 | |||||||
VeriSign, Inc.* | 1,304 | 63,648 | |||||||
Yahoo!, Inc.* | 563 | 19,778 | |||||||
Total Internet | 711,935 | ||||||||
Iron/Steel — 0.2% | |||||||||
Allegheny Technologies, Inc. | 280 | 12,628 | |||||||
Nucor Corp. | 283 | 13,938 | |||||||
United States Steel Corp. | 450 | 11,718 | |||||||
Total Iron/Steel | 38,284 |
See accompanying Notes to Financial Statements.
87
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Leisure Time — 0.5% | ||||||||
Carnival Corp. (Panama) | 1,834 | $ | 69,050 | |||||
Harley-Davidson, Inc. | 900 | 62,865 | ||||||
Total Leisure Time | 131,915 | |||||||
Lodging — 0.6% | ||||||||
Marriott International, Inc., Class A | 397 | 25,448 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 149 | 12,042 | ||||||
Wyndham Worldwide Corp. | 431 | 32,635 | ||||||
Wynn Resorts Ltd. | 334 | 69,325 | ||||||
Total Lodging | 139,450 | |||||||
Machinery – Construction & Mining — 0.1% | ||||||||
Caterpillar, Inc. | 180 | 19,561 | ||||||
Machinery – Diversified — 1.2% | ||||||||
Cummins, Inc. | 507 | 78,225 | ||||||
Deere & Co. | 392 | 35,496 | ||||||
Flowserve Corp. | 798 | 59,331 | ||||||
Rockwell Automation, Inc. | 393 | 49,188 | ||||||
Roper Industries, Inc. | 249 | 36,356 | ||||||
Xylem, Inc. | 922 | 36,032 | ||||||
Total Machinery – Diversified | 294,628 | |||||||
Media — 4.0% | ||||||||
Cablevision Systems Corp., Class A | 1,954 | 34,488 | ||||||
CBS Corp., Class B | 1,669 | 103,712 | ||||||
Comcast Corp., Class A | 1,196 | 64,201 | ||||||
DIRECTV* | 1,421 | 120,799 | ||||||
Discovery Communications, Inc., Class A* | 957 | 71,086 | ||||||
Gannett Co., Inc. | 3,841 | 120,262 | ||||||
News Corp., Class A* | 459 | 8,235 | ||||||
Scripps Networks Interactive, Inc., Class A | 710 | 57,609 | ||||||
Time Warner Cable, Inc. | 237 | 34,910 | ||||||
Time Warner, Inc. | 1,081 | 75,940 | ||||||
Time, Inc.* | 135 | 3,270 | ||||||
Twenty-First Century Fox, Inc., Class A | 3,894 | 136,874 |
See accompanying Notes to Financial Statements.
88
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Media — 4.0% (continued) | |||||||||
Viacom, Inc., Class B | 1,193 | $ | 103,469 | ||||||
Walt Disney Co. (The) | 693 | 59,418 | |||||||
Total Media | 994,273 | ||||||||
Metal Fabricate/Hardware — 0.3% | |||||||||
Precision Castparts Corp. | 260 | 65,624 | |||||||
Mining — 0.7% | |||||||||
Alcoa, Inc. | 1,662 | 24,747 | |||||||
Freeport-McMoRan Copper & Gold, Inc. | 4,154 | 151,621 | |||||||
Total Mining | 176,368 | ||||||||
Miscellaneous Manufacturing — 1.8% | |||||||||
3M Co. | 236 | 33,805 | |||||||
Danaher Corp. | 708 | 55,741 | |||||||
Dover Corp. | 552 | 50,204 | |||||||
General Electric Co. | 1,047 | 27,515 | |||||||
Illinois Tool Works, Inc. | 270 | 23,641 | |||||||
Leggett & Platt, Inc. | 2,137 | 73,256 | |||||||
Pall Corp. | 310 | 26,471 | |||||||
Parker Hannifin Corp. | 511 | 64,248 | |||||||
Textron, Inc. | 2,198 | 84,162 | |||||||
Total Miscellaneous Manufacturing | 439,043 | ||||||||
Office/Business Equipment — 0.3% | |||||||||
Pitney Bowes, Inc. | 1,254 | 34,636 | |||||||
Xerox Corp. | 3,544 | 44,087 | |||||||
Total Office/Business Equipment | 78,723 | ||||||||
Oil & Gas — 7.8% | |||||||||
Anadarko Petroleum Corp. | 130 | 14,231 | |||||||
Apache Corp. | 158 | 15,898 | |||||||
Cabot Oil & Gas Corp. | 3,075 | 104,981 | |||||||
Chesapeake Energy Corp. | 4,723 | 146,791 | |||||||
Chevron Corp. | 188 | 24,543 | |||||||
ConocoPhillips | 440 | 37,721 | |||||||
Denbury Resources, Inc. | 3,732 | 68,893 |
See accompanying Notes to Financial Statements.
89
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Oil & Gas — 7.8% (continued) | |||||||||
Devon Energy Corp. | 442 | $ | 35,095 | ||||||
Diamond Offshore Drilling, Inc.(a) | 1,706 | 84,669 | |||||||
EOG Resources, Inc. | 1,093 | 127,728 | |||||||
EQT Corp. | 936 | 100,058 | |||||||
Exxon Mobil Corp. | 108 | 10,874 | |||||||
Helmerich & Payne, Inc. | 1,054 | 122,380 | |||||||
Hess Corp. | 162 | 16,020 | |||||||
Marathon Oil Corp. | 1,911 | 76,287 | |||||||
Marathon Petroleum Corp. | 1,416 | 110,547 | |||||||
Murphy Oil Corp. | 1,803 | 119,863 | |||||||
Newfield Exploration Co.* | 2,686 | 118,721 | |||||||
Noble Energy, Inc. | 258 | 19,985 | |||||||
Occidental Petroleum Corp. | 161 | 16,523 | |||||||
Phillips 66 | 627 | 50,430 | |||||||
Pioneer Natural Resources Co. | 111 | 25,509 | |||||||
QEP Resources, Inc. | 836 | 28,842 | |||||||
Range Resources Corp. | 292 | 25,389 | |||||||
Rowan Cos. PLC, Class A (United Kingdom) | 4,543 | 145,058 | |||||||
Southwestern Energy Co.* | 734 | 33,390 | |||||||
Tesoro Corp. | 2,631 | 154,361 | |||||||
Valero Energy Corp. | 2,120 | 106,212 | |||||||
Total Oil & Gas | 1,940,999 | ||||||||
Oil & Gas Services — 3.2% | |||||||||
Baker Hughes, Inc. | 1,987 | 147,932 | |||||||
Cameron International Corp.* | 1,924 | 130,274 | |||||||
FMC Technologies, Inc.* | 2,077 | 126,842 | |||||||
Halliburton Co. | 2,143 | 152,175 | |||||||
National Oilwell Varco, Inc. | 999 | 82,268 | |||||||
NOW, Inc.* | 249 | 9,016 | |||||||
Schlumberger Ltd. | 1,195 | 140,950 | |||||||
Total Oil & Gas Services | 789,457 | ||||||||
Packaging & Containers — 1.1% | |||||||||
Ball Corp. | 1,335 | 83,678 |
See accompanying Notes to Financial Statements.
90
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Packaging & Containers — 1.1% (continued) | |||||||||
Bemis Co., Inc. | 538 | $ | 21,875 | ||||||
Owens-Illinois, Inc.* | 3,208 | 111,125 | |||||||
Sealed Air Corp. | 1,515 | 51,768 | |||||||
Total Packaging & Containers | 268,446 | ||||||||
Pharmaceuticals — 3.7% | |||||||||
Abbott Laboratories | 1,200 | 49,080 | |||||||
AbbVie, Inc. | 448 | 25,285 | |||||||
Actavis PLC* | 677 | 151,005 | |||||||
Allergan, Inc. | 110 | 18,614 | |||||||
AmerisourceBergen Corp. | 1,305 | 94,821 | |||||||
Bristol-Myers Squibb Co. | 356 | 17,270 | |||||||
Cardinal Health, Inc. | 526 | 36,063 | |||||||
Eli Lilly & Co. | 191 | 11,874 | |||||||
Express Scripts Holding Co.* | 1,675 | 116,128 | |||||||
Forest Laboratories, Inc.* | 1,401 | 138,699 | |||||||
Johnson & Johnson | 171 | 17,890 | |||||||
McKesson Corp. | 522 | 97,202 | |||||||
Mead Johnson Nutrition Co. | 200 | 18,634 | |||||||
Merck & Co., Inc. | 162 | 9,372 | |||||||
Mylan, Inc.* | 1,817 | 93,684 | |||||||
Pfizer, Inc. | 441 | 13,089 | |||||||
Total Pharmaceuticals | 908,710 | ||||||||
Pipelines — 0.3% | |||||||||
Kinder Morgan, Inc. | 477 | 17,296 | |||||||
ONEOK, Inc. | 319 | 21,718 | |||||||
Spectra Energy Corp. | 195 | 8,284 | |||||||
Williams Cos., Inc. (The) | 635 | 36,963 | |||||||
Total Pipelines | 84,261 | ||||||||
Real Estate — 0.3% | |||||||||
CBRE Group, Inc., Class A* | 2,117 | 67,829 | |||||||
Real Estate Investment Trust — 0.7% | |||||||||
American Tower Corp. | 322 | 28,974 | |||||||
AvalonBay Communities, Inc. | 88 | 12,513 |
See accompanying Notes to Financial Statements.
91
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Real Estate Investment Trust — 0.7% (continued) | |||||||||
Boston Properties, Inc. | 64 | $ | 7,563 | ||||||
Crown Castle International Corp. | 118 | 8,763 | |||||||
Equity Residential | 118 | 7,434 | |||||||
Essex Property Trust, Inc. | 42 | 7,766 | |||||||
General Growth Properties, Inc. | 321 | 7,563 | |||||||
HCP, Inc. | 194 | 8,028 | |||||||
Host Hotels & Resorts, Inc. | 433 | 9,530 | |||||||
Kimco Realty Corp. | 315 | 7,239 | |||||||
Plum Creek Timber Co., Inc. | 273 | 12,312 | |||||||
Public Storage | 49 | 8,396 | |||||||
Simon Property Group, Inc. | 50 | 8,314 | |||||||
Ventas, Inc. | 128 | 8,205 | |||||||
Vornado Realty Trust | 93 | 9,926 | |||||||
Washington Prime Group, Inc.* | 25 | 468 | |||||||
Weyerhaeuser Co. | 348 | 11,515 | |||||||
Total Real Estate Investment Trust | 164,509 | ||||||||
Retail — 9.7% | |||||||||
AutoNation, Inc.* | 2,251 | 134,340 | |||||||
AutoZone, Inc.* | 198 | 106,176 | |||||||
Bed Bath & Beyond, Inc.* | 1,315 | 75,455 | |||||||
Best Buy Co., Inc. | 4,947 | 153,406 | |||||||
CarMax, Inc.* | 1,527 | 79,419 | |||||||
Chipotle Mexican Grill, Inc.* | 51 | 30,218 | |||||||
Coach, Inc. | 994 | 33,985 | |||||||
Costco Wholesale Corp. | 184 | 21,189 | |||||||
CVS Caremark Corp. | 922 | 69,491 | |||||||
Darden Restaurants, Inc. | 471 | 21,793 | |||||||
Dollar General Corp.* | 1,559 | 89,424 | |||||||
Dollar Tree, Inc.* | 2,171 | 118,233 | |||||||
Family Dollar Stores, Inc. | 354 | 23,414 | |||||||
GameStop Corp., Class A | 3,476 | 140,674 | |||||||
Gap, Inc. (The) | 1,992 | 82,807 | |||||||
Home Depot, Inc. (The) | 1,229 | 99,500 | |||||||
Kohl’s Corp. | 1,281 | 67,483 |
See accompanying Notes to Financial Statements.
92
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Retail — 9.7% (continued) | |||||||||
L Brands, Inc. | 1,000 | $ | 58,660 | ||||||
Lowe’s Cos., Inc. | 2,100 | 100,779 | |||||||
Macy’s, Inc. | 1,926 | 111,747 | |||||||
McDonald’s Corp. | 211 | 21,256 | |||||||
Nordstrom, Inc. | 713 | 48,434 | |||||||
O’Reilly Automotive, Inc.* | 517 | 77,860 | |||||||
PetSmart, Inc. | 1,311 | 78,398 | |||||||
PVH Corp. | 417 | 48,622 | |||||||
Ross Stores, Inc. | 901 | 59,583 | |||||||
Staples, Inc. | 624 | 6,764 | |||||||
Starbucks Corp. | 847 | 65,541 | |||||||
Target Corp. | 683 | 39,580 | |||||||
Tiffany & Co. | 438 | 43,910 | |||||||
TJX Cos., Inc. (The) | 716 | 38,055 | |||||||
Tractor Supply Co. | 640 | 38,656 | |||||||
Urban Outfitters, Inc.* | 2,829 | 95,790 | |||||||
Walgreen Co. | 725 | 53,744 | |||||||
Wal-Mart Stores, Inc. | 336 | 25,224 | |||||||
Yum! Brands, Inc. | 641 | 52,049 | |||||||
Total Retail | 2,411,659 | ||||||||
Savings & Loans — 0.2% | |||||||||
People’s United Financial, Inc. | 3,630 | 55,067 | |||||||
Semiconductors — 4.3% | |||||||||
Altera Corp. | 614 | 21,343 | |||||||
Analog Devices, Inc. | 563 | 30,441 | |||||||
Applied Materials, Inc. | 6,911 | 155,843 | |||||||
Broadcom Corp., Class A | 2,637 | 97,885 | |||||||
Intel Corp. | 1,358 | 41,962 | |||||||
KLA-Tencor Corp. | 1,874 | 136,127 | |||||||
Lam Research Corp. | 2,491 | 168,342 | |||||||
Linear Technology Corp. | 599 | 28,195 | |||||||
Microchip Technology, Inc.(a) | 794 | 38,755 | |||||||
Micron Technology, Inc.* | 4,765 | 157,007 |
See accompanying Notes to Financial Statements.
93
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Semiconductors — 4.3% (continued) | |||||||||
NVIDIA Corp. | 1,517 | $ | 28,125 | ||||||
QUALCOMM, Inc. | 1,173 | 92,902 | |||||||
Texas Instruments, Inc. | 630 | 30,108 | |||||||
Xilinx, Inc. | 706 | 33,401 | |||||||
Total Semiconductors | 1,060,436 | ||||||||
Software — 2.7% | |||||||||
Adobe Systems, Inc.* | 256 | 18,524 | |||||||
Akamai Technologies, Inc.* | 774 | 47,260 | |||||||
Autodesk, Inc.* | 207 | 11,671 | |||||||
CA, Inc. | 2,541 | 73,028 | |||||||
Cerner Corp.* | 587 | 30,277 | |||||||
Citrix Systems, Inc.* | 833 | 52,104 | |||||||
Dun & Bradstreet Corp. (The) | 226 | 24,905 | |||||||
Electronic Arts, Inc.* | 3,719 | 133,401 | |||||||
Fidelity National Information Services, Inc. | 1,075 | 58,846 | |||||||
Fiserv, Inc.* | 657 | 39,630 | |||||||
Intuit, Inc. | 530 | 42,681 | |||||||
Microsoft Corp. | 761 | 31,734 | |||||||
Oracle Corp. | 1,490 | 60,390 | |||||||
Paychex, Inc. | 456 | 18,951 | |||||||
Red Hat, Inc.* | 464 | 25,645 | |||||||
salesforce.com, Inc.* | 198 | 11,500 | |||||||
Total Software | 680,547 | ||||||||
Telecommunications — 1.4% | |||||||||
AT&T, Inc. | 464 | 16,407 | |||||||
Cisco Systems, Inc. | 2,173 | 53,999 | |||||||
Corning, Inc. | 4,010 | 88,020 | |||||||
Frontier Communications Corp. | 1,669 | 9,747 | |||||||
Harris Corp. | 120 | 9,090 | |||||||
Juniper Networks, Inc.* | 5,059 | 124,148 | |||||||
Motorola Solutions, Inc. | 185 | 12,315 | |||||||
Verizon Communications, Inc. | 708 | 34,642 | |||||||
Total Telecommunications | 348,368 |
See accompanying Notes to Financial Statements.
94
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Textiles — 0.3% | ||||||||
Mohawk Industries, Inc.* | 606 | $ | 83,834 | |||||
Toys/Games/Hobbies — 0.3% | ||||||||
Hasbro, Inc. | 977 | 51,830 | ||||||
Mattel, Inc. | 611 | 23,811 | ||||||
Total Toys/Games/Hobbies | 75,641 | |||||||
Transportation — 2.2% | ||||||||
C.H. Robinson Worldwide, Inc. | 418 | 26,664 | ||||||
CSX Corp. | 1,230 | 37,896 | ||||||
Expeditors International of Washington, Inc. | 454 | 20,049 | ||||||
FedEx Corp. | 857 | 129,733 | ||||||
Kansas City Southern | 400 | 43,004 | ||||||
Norfolk Southern Corp. | 598 | 61,612 | ||||||
Ryder System, Inc. | 1,149 | 101,215 | ||||||
Union Pacific Corp. | 910 | 90,772 | ||||||
United Parcel Service, Inc., Class B | 375 | 38,498 | ||||||
Total Transportation | 549,443 | |||||||
Total Common Stocks (Cost $18,904,426) | 24,393,245 | |||||||
MONEY MARKET FUND — 1.6% | ||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%(b) (Cost $398,900) | 398,900 | 398,900 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 0.2% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $39,915) | 39,915 | 39,915 | ||||||
Total Investments — 100.3% (Cost $19,343,241) | 24,832,060 | |||||||
Liabilities in Excess of Other Assets — (0.3)% | (76,777 | ) | ||||||
Net Assets — 100.0% | $ | 24,755,283 |
* | Non-income producing security |
** | Less than 0.05% |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $38,848; the aggregate market value of the collateral held by the fund is $39,915. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
95
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 0.3 | % | ||
Aerospace/Defense | 0.9 | |||
Agriculture | 0.7 | |||
Airlines | 0.7 | |||
Apparel | 0.7 | |||
Auto Manufacturers | 1.3 | |||
Auto Parts & Equipment | 1.6 | |||
Banks | 4.2 | |||
Beverages | 1.3 | |||
Biotechnology | 2.4 | |||
Building Materials | 0.5 | |||
Chemicals | 1.9 | |||
Coal | 0.0 | ** | ||
Commercial Services | 2.7 | |||
Computers | 3.5 | |||
Cosmetics/Personal Care | 0.4 | |||
Distribution/Wholesale | 0.9 | |||
Diversified Financial Services | 5.8 | |||
Electric | 1.2 | |||
Electrical Components & Equipment | 0.3 | |||
Electronics | 1.3 | |||
Engineering & Construction | 0.7 | |||
Entertainment | 0.2 | |||
Environmental Control | 0.3 | |||
Food | 1.4 | |||
Forest Products & Paper | 0.7 | |||
Gas | 0.2 | |||
Hand/Machine Tools | 0.3 | |||
Healthcare – Products | 1.9 | |||
Healthcare – Services | 2.3 | |||
Home Builders | 0.7 | |||
Home Furnishings | 1.0 | |||
Household Products/Wares | 0.2 | |||
Housewares | 0.1 | |||
Insurance | 5.1 | |||
Internet | 2.9 | |||
Iron/Steel | 0.2 | |||
Leisure Time | 0.5 | |||
Lodging | 0.6 | |||
Machinery – Construction & Mining | 0.1 | |||
Machinery – Diversified | 1.2 | |||
Media | 4.0 |
See accompanying Notes to Financial Statements.
96
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | |||
% of Net Assets | ||||
Metal Fabricate/Hardware | 0.3 | % | ||
Mining | 0.7 | |||
Miscellaneous Manufacturing | 1.8 | |||
Office/Business Equipment | 0.3 | |||
Oil & Gas | 7.8 | |||
Oil & Gas Services | 3.2 | |||
Packaging & Containers | 1.1 | |||
Pharmaceuticals | 3.7 | |||
Pipelines | 0.3 | |||
Real Estate | 0.3 | |||
Real Estate Investment Trust | 0.7 | |||
Retail | 9.7 | |||
Savings & Loans | 0.2 | |||
Semiconductors | 4.3 | |||
Software | 2.7 | |||
Telecommunications | 1.4 | |||
Textiles | 0.3 | |||
Toys/Games/Hobbies | 0.3 | |||
Transportation | 2.2 | |||
Money Market Fund | 1.8 | |||
Total Investments | 100.3 | |||
Liabilities in Excess of Other Assets | (0.3 | ) | ||
Net Assets | 100.0 | % |
** | Less than 0.05% |
See accompanying Notes to Financial Statements.
97
ADVISORSHARES MADRONA GLOBAL BOND ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 99.0% | ||||||||
Debt Fund — 99.0% | ||||||||
AdvisorShares Peritus High Yield ETF†(a) | 58,388 | $ | 3,112,080 | |||||
iShares iBoxx $ Investment Grade Corporate Bond ETF(a) | 32,178 | 3,837,548 | ||||||
iShares International Treasury Bond ETF | 6,817 | 717,557 | ||||||
PIMCO 1 – 5 Year U.S. TIPS Index ETF(a) | 4,453 | 238,547 | ||||||
PowerShares Build America Bond Portfolio(a) | 24,568 | 720,334 | ||||||
PowerShares Emerging Markets Sovereign Debt Portfolio | 67,594 | 1,971,041 | ||||||
PowerShares Financial Preferred Portfolio | 119,078 | 2,167,220 | ||||||
PowerShares Insured National Municipal Bond Portfolio(a) | 29,183 | 720,237 | ||||||
PowerShares International Corporate Bond Portfolio(a) | 31,280 | 959,358 | ||||||
PowerShares Senior Loan Portfolio(a) | 86,470 | 2,150,509 | ||||||
SPDR Barclays Convertible Securities ETF | 34,437 | 1,739,069 | ||||||
SPDR DB International Government Inflation-Protected Bond ETF | 11,676 | 724,029 | ||||||
Vanguard Intermediate-Term Government Bond ETF(a) | 11,215 | 717,760 | ||||||
Vanguard Long-Term Government Bond ETF | 10,264 | 728,128 | ||||||
Vanguard Mortgage-Backed Securities ETF | 31,918 | 1,679,844 | ||||||
Vanguard Short-Term Bond ETF | 8,868 | 712,455 | ||||||
WisdomTree Emerging Markets Corporate Bond Fund(a) | 15,848 | 1,238,838 | ||||||
Total Exchange Traded Funds (Cost $23,212,515) | 24,134,554 | |||||||
MONEY MARKET FUND — 1.2% | ||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%(b) (Cost $299,026) | 299,026 | 299,026 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 29.9% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $7,299,078) | 7,299,078 | 7,299,078 | ||||||
Total Investments — 130.1% (Cost $30,810,619) | 31,732,658 | |||||||
Liabilities in Excess of Other Assets — (30.1)% | (7,349,967 | ) | ||||||
Net Assets — 100.0% | $ | 24,382,691 |
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 $7,111,662; the aggregate market value of the collateral held by the fund is $7,299,078. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
98
ADVISORSHARES MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Debt Fund | 99.0 | % | ||
Money Market Fund | 31.1 | |||
Total Investments | 130.1 | |||
Liabilities in Excess of Other Assets | (30.1 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
99
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 98.2% | ||||||||
Advertising — 0.5% | ||||||||
Publicis Groupe SA (France)(a) | 2,465 | $ | 52,159 | |||||
WPP PLC (United Kingdom)(a) | 401 | 43,705 | ||||||
Total Advertising | 95,864 | |||||||
Aerospace/Defense — 1.4% | ||||||||
Airbus Group NV (France)(a) | 6,349 | 106,282 | ||||||
Embraer SA (Brazil)(a) | 831 | 30,273 | ||||||
Rolls-Royce Holdings PLC (United Kingdom)*(a) | 618 | 57,085 | ||||||
Safran SA (France)(a) | 4,404 | 71,733 | ||||||
Total Aerospace/Defense | 265,373 | |||||||
Airlines — 0.2% | ||||||||
Ryanair Holdings PLC (Ireland)*(a) | 787 | 43,915 | ||||||
Apparel — 0.9% | ||||||||
Adidas AG (Germany)(a) | 1,412 | 71,539 | ||||||
Gildan Activewear, Inc. (Canada) | 304 | 17,900 | ||||||
LVMH Moet Hennessy Louis Vuitton SA (France)(a) | 818 | 31,558 | ||||||
Prada SpA (Italy)(a)(b) | 3,233 | 45,456 | ||||||
Total Apparel | 166,453 | |||||||
Auto Manufacturers — 5.3% | ||||||||
Bayerische Motoren Werke AG (Germany)(a) | 384 | 16,243 | ||||||
Daimler AG (Germany)(a) | 1,048 | 98,103 | ||||||
Fiat SpA (Italy)*(a) | 13,077 | 129,319 | ||||||
Fuji Heavy Industries Ltd. (Japan)(a) | 2,535 | 141,149 | ||||||
Honda Motor Co. Ltd. (Japan)(a) | 2,931 | 102,556 | ||||||
Nissan Motor Co. Ltd. (Japan)(a) | 6,476 | 122,817 | ||||||
Porsche Automobil Holding SE (Germany)(a)(b) | 9,947 | 103,349 | ||||||
Tata Motors Ltd. (India)(a) | 2,832 | 110,618 | ||||||
Toyota Motor Corp. (Japan)(a) | 1,150 | 137,609 | ||||||
Volkswagen AG (Germany)(a) | 1,048 | 54,339 | ||||||
Total Auto Manufacturers | 1,016,102 | |||||||
Auto Parts & Equipment — 2.3% | ||||||||
Bridgestone Corp. (Japan)(a) | 5,997 | 104,563 | ||||||
Cie Generale des Etablissements Michelin (France)(a) | 4,287 | 102,502 | ||||||
DENSO Corp. (Japan)(a)(b) | 5,526 | 131,961 | ||||||
Magna International, Inc. (Canada) | 993 | 106,996 | ||||||
Total Auto Parts & Equipment | 446,022 |
See accompanying Notes to Financial Statements.
100
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Banks — 12.9% (continued) | |||||||||
Akbank T.A.S. (Turkey)(a) | 6,815 | $ | 50,022 | ||||||
Australia & New Zealand Banking Group Ltd. (Australia)(a) | 583 | 18,335 | |||||||
Banco Bilbao Vizcaya Argentaria SA (Spain)(a) | 10,099 | 128,964 | |||||||
Banco do Brasil SA (Brazil)(a) | 5,808 | 64,992 | |||||||
Banco Santander SA (Spain)(a)(b) | 9,339 | 97,312 | |||||||
Bancolombia SA (Colombia)(a)(b) | 697 | 40,287 | |||||||
Bank of China Ltd. (China)(a) | 8,234 | 91,644 | |||||||
Barclays PLC (United Kingdom)(a) | 4,833 | 70,610 | |||||||
BNP Paribas SA (France)(a) | 2,904 | 98,809 | |||||||
BOC Hong Kong Holdings Ltd. (Hong Kong)(a)(b) | 1,484 | 85,924 | |||||||
China Construction Bank Corp. (China)(a) | 6,457 | 91,164 | |||||||
Commerzbank AG (Germany)*(a)(b) | 7,499 | 118,184 | |||||||
Credit Agricole SA (France)(a) | 13,301 | 93,373 | |||||||
Credit Suisse Group AG (Switzerland)*(a) | 4,280 | 121,424 | |||||||
DBS Group Holdings Ltd. (Singapore)(a) | 1,356 | 73,156 | |||||||
HDFC Bank Ltd. (India)(a) | 1,923 | 90,035 | |||||||
HSBC Holdings PLC (United Kingdom)(a) | 1,786 | 90,729 | |||||||
ICICI Bank Ltd. (India)*(a) | 1,926 | 96,107 | |||||||
Industrial & Commercial Bank of China Ltd. (China)(a) | 7,270 | 91,638 | |||||||
Intesa Sanpaolo SpA (Italy)(a) | 5,621 | 103,876 | |||||||
Lloyds Banking Group PLC (United Kingdom)*(a) | 21,688 | 111,476 | |||||||
Malayan Banking Bhd (Malaysia)(a) | 2,912 | 17,763 | |||||||
National Australia Bank Ltd. (Australia)(a) | 870 | 13,468 | |||||||
Nordea Bank AB (Sweden)(a)(b) | 4,669 | 65,459 | |||||||
PT Bank Mandiri Persero Tbk (Indonesia)(a)(b) | 8,367 | 67,940 | |||||||
PT Bank Rakyat Indonesia Persero Tbk (Indonesia)(a) | 4,370 | 75,470 | |||||||
Royal Bank of Scotland Group PLC (United Kingdom)*(a) | 7,111 | 80,283 | |||||||
Societe Generale SA (France)(a) | 8,683 | 90,998 | |||||||
Sumitomo Mitsui Trust Holdings, Inc. (Japan)(a) | 14,571 | 65,715 | |||||||
Toronto-Dominion Bank (The) (Canada)(b) | 520 | 26,733 | |||||||
UBS AG (Switzerland)*(c) | 4,930 | 90,318 | |||||||
United Overseas Bank Ltd. (Singapore)(a) | 1,694 | 61,306 | |||||||
Total Banks | 2,483,514 | ||||||||
Beverages — 0.8% | |||||||||
Ambev SA (Brazil)(a) | 2,163 | 15,227 | |||||||
Carlsberg A/S, Class B (Denmark)(a)(b) | 3,177 | 68,623 | |||||||
Coca-Cola Femsa SAB de CV (Mexico)(a)(b) | 193 | 21,929 | |||||||
Fomento Economico Mexicano SAB de CV (Mexico)(a) | 304 | 28,470 |
See accompanying Notes to Financial Statements.
101
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Beverages — 0.8% (continued) | |||||||||
Heineken NV (Netherlands)(a) | 609 | $ | 21,827 | ||||||
Total Beverages | 156,076 | ||||||||
Biotechnology — 0.2% | |||||||||
CSL Ltd. (Australia)*(a)(b) | 1,403 | 44,068 | |||||||
Building Materials — 1.6% | |||||||||
Anhui Conch Cement Co. Ltd., Class H (China)(a)(b) | 4,397 | 75,321 | |||||||
Asahi Glass Co. Ltd. (Japan)(a)(b) | 8,171 | 47,310 | |||||||
CRH PLC (Ireland)(a)(b) | 3,173 | 82,022 | |||||||
Holcim Ltd. (Switzerland)*(a) | 6,208 | 108,702 | |||||||
Total Building Materials | 313,355 | ||||||||
Chemicals — 4.6% | |||||||||
Akzo Nobel NV (Netherlands)(a) | 2,855 | 71,232 | |||||||
Asahi Kasei Corp. (Japan)(a) | 6,071 | 92,036 | |||||||
BASF SE (Germany)(a) | 412 | 47,998 | |||||||
Braskem SA (Brazil)(a) | 7,129 | 91,608 | |||||||
Givaudan SA (Switzerland)(a)(b) | 390 | 12,999 | |||||||
Koninklijke DSM NV (Netherlands)(a)(b) | 3,834 | 70,009 | |||||||
Linde AG (Germany)(a)(b) | 1,188 | 25,233 | |||||||
Lonza Group AG (Switzerland)*(a) | 9,021 | 97,788 | |||||||
Methanex Corp. (Canada) | 1,477 | 91,249 | |||||||
Sasol Ltd. (South Africa)(a) | 831 | 49,129 | |||||||
Shin-Etsu Chemical Co. Ltd. (Japan)(a) | 3,943 | 59,657 | |||||||
Sinopec Shanghai Petrochemical Co. Ltd. (China)(a)(b) | 4,831 | 133,770 | |||||||
Syngenta AG (Switzerland)(a) | 552 | 41,290 | |||||||
Total Chemicals | 883,998 | ||||||||
Coal — 0.6% | |||||||||
Yanzhou Coal Mining Co. Ltd. (China)(a)(b) | 15,637 | 117,121 | |||||||
Commercial Services — 0.7% | |||||||||
Cielo SA (Brazil)(a)(b) | 1,115 | 23,097 | |||||||
Experian PLC (Ireland)(a) | 1,826 | 30,713 | |||||||
G4S PLC (United Kingdom)(a)(b) | 1,438 | 31,895 | |||||||
Secom Co. Ltd. (Japan)(a) | 2,813 | 42,941 | |||||||
Total Commercial Services | 128,646 |
See accompanying Notes to Financial Statements.
102
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Computers — 2.0% | ||||||||
Cap Gemini SA (France)(a) | 1,948 | $ | 69,602 | |||||
CGI Group, Inc., Class A (Canada)*(b) | 1,906 | 67,625 | ||||||
Infosys Ltd. (India)(a) | 859 | 46,188 | ||||||
Lenovo Group Ltd. (Hong Kong)(a) | 5,506 | 149,708 | ||||||
Wipro Ltd. (India)(a)(b) | 4,646 | 55,241 | ||||||
Total Computers | 388,364 | |||||||
Cosmetics/Personal Care — 0.2% | ||||||||
Kao Corp. (Japan)(a) | 751 | 29,717 | ||||||
Distribution/Wholesale — 2.1% | ||||||||
ITOCHU Corp. (Japan)(a) | 5,102 | 131,172 | ||||||
Li & Fung Ltd. (Hong Kong)(a) | 25,648 | 74,636 | ||||||
Sumitomo Corp. (Japan)(a) | 9,633 | 129,564 | ||||||
Wolseley PLC (United Kingdom)(a) | 11,098 | 60,706 | ||||||
Total Distribution/Wholesale | 396,078 | |||||||
Diversified Financial Services — 3.2% | ||||||||
Aberdeen Asset Management PLC (United Kingdom)(a) | 2,339 | 36,255 | ||||||
Daiwa Securities Group, Inc. (Japan)(a) | 14,836 | 128,183 | ||||||
Deutsche Boerse AG (Germany)(a)(b) | 6,580 | 50,863 | ||||||
ICAP PLC (United Kingdom)(a)(b) | 4,084 | 52,724 | ||||||
Julius Baer Group Ltd. (Switzerland)*(a)(b) | 11,951 | 97,879 | ||||||
Nomura Holdings, Inc. (Japan)(a) | 21,640 | 152,129 | ||||||
ORIX Corp. (Japan)(a) | 1,137 | 94,417 | ||||||
Total Diversified Financial Services | 612,450 | |||||||
Electric — 1.9% | ||||||||
Empresa Nacional de Electricidad SA (Chile)(a) | 1,331 | 60,161 | ||||||
Enersis SA (Chile)(a) | 4,510 | 75,994 | ||||||
Huaneng Power International, Inc. (China)*(a)(b) | 2,702 | 122,238 | ||||||
Korea Electric Power Corp. (South Korea)(a) | 6,204 | 114,154 | ||||||
Total Electric | 372,547 | |||||||
Electrical Components & Equipment — 0.7% | ||||||||
Hitachi Ltd. (Japan)(a) | 1,086 | 79,702 | ||||||
Nidec Corp. (Japan)(a) | 1,678 | 25,824 | ||||||
Schneider Electric SA (France)(a) | 1,355 | 25,474 | ||||||
Total Electrical Components & Equipment | 131,000 |
See accompanying Notes to Financial Statements.
103
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Electronics — 1.8% | ||||||||
Koninklijke Philips NV (Netherlands)(b)(c) | 1,451 | $ | 46,084 | |||||
Kyocera Corp. (Japan)(a) | 2,240 | 106,579 | ||||||
LG Display Co. Ltd. (South Korea)*(a) | 9,103 | 143,554 | ||||||
Toshiba Corp. (Japan)(a) | 1,636 | 45,710 | ||||||
Total Electronics | 341,927 | |||||||
Energy – Alternate Sources — 0.5% | ||||||||
Vestas Wind Systems A/S (Denmark)*(a)(b) | 6,046 | 101,512 | ||||||
Engineering & Construction — 0.2% | ||||||||
ABB Ltd. (Switzerland)*(a) | 1,328 | 30,571 | ||||||
Vinci SA (France)(a) | 928 | 17,316 | ||||||
Total Engineering & Construction | 47,887 | |||||||
Food — 4.9% | ||||||||
Aryzta AG (Switzerland)*(a) | 2,580 | 122,447 | ||||||
BRF SA (Brazil)(a) | 2,724 | 66,220 | ||||||
Carrefour SA (France)(a)(b) | 12,213 | 89,155 | ||||||
Cencosud SA (Chile)(a) | 6,669 | 66,290 | ||||||
Cia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil)(a) | 1,438 | 66,623 | ||||||
Gruma SAB de CV (Mexico)*(a)(b) | 2,097 | 100,342 | ||||||
JBS SA (Brazil)(a)(b) | 16,962 | 116,359 | ||||||
Koninklijke Ahold NV (Netherlands)(a) | 1,196 | 22,461 | ||||||
Marine Harvest ASA (Norway)(a)(b) | 10,121 | 138,860 | ||||||
Metro AG (Germany)*(a)(b) | 16,176 | 140,925 | ||||||
Seven & I Holdings Co. Ltd. (Japan)(a) | 287 | 24,211 | ||||||
Total Food | 953,893 | |||||||
Forest Products & Paper — 1.1% | ||||||||
Fibria Celulose SA (Brazil)*(a)(b) | 4,265 | 41,456 | ||||||
Klabin SA (Brazil)(a) | 2,643 | 26,192 | ||||||
Stora Enso OYJ (Finland)(a) | 6,082 | 59,056 | ||||||
Svenska Cellulosa AB SCA (Sweden)(a) | 3,131 | 81,375 | ||||||
Total Forest Products & Paper | 208,079 | |||||||
Healthcare – Products — 0.7% | ||||||||
Luxottica Group SpA (Italy)(a) | 430 | 24,923 | ||||||
Olympus Corp. (Japan)(a) | 939 | 32,395 | ||||||
Smith & Nephew PLC (United Kingdom)(a) | 246 | 21,963 | ||||||
Sysmex Corp. (Japan)(a) | 3,353 | 62,969 | ||||||
Total Healthcare – Products | 142,250 |
See accompanying Notes to Financial Statements.
104
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Holding Companies – Diversified — 0.8% | ||||||||
Hutchison Whampoa Ltd. (Hong Kong)(a) | 3,905 | $ | 106,997 | |||||
KOC Holding AS (Turkey)(a) | 1,562 | 37,878 | ||||||
Total Holding Companies – Diversified | 144,875 | |||||||
Home Builders — 0.8% | ||||||||
Persimmon PLC (United Kingdom)(a) | 2,591 | 113,564 | ||||||
Sekisui House Ltd. (Japan)(a) | 3,230 | 44,089 | ||||||
Total Home Builders | 157,653 | |||||||
Home Furnishings — 0.7% | ||||||||
Panasonic Corp. (Japan)(a) | 11,016 | 134,175 | ||||||
Insurance — 5.5% | ||||||||
Aegon NV (Netherlands)(c) | 6,816 | 59,776 | ||||||
AIA Group Ltd. (Hong Kong)(a) | 3,110 | 62,635 | ||||||
Aviva PLC (United Kingdom)(a) | 2,832 | 49,843 | ||||||
AXA SA (France)(a) | 3,485 | 83,570 | ||||||
BB Seguridade Participacoes SA (Brazil)*(a)(b) | 5,827 | 85,424 | ||||||
ING Groep NV (Netherlands)*(a) | 6,931 | 97,173 | ||||||
Manulife Financial Corp. (Canada) | 2,208 | 43,873 | ||||||
Ping An Insurance Group Co. of China Ltd. (China)(a) | 7,068 | 108,989 | ||||||
Prudential PLC (United Kingdom)(a) | 1,598 | 73,316 | ||||||
QBE Insurance Group Ltd. (Australia)(a)(b) | 8,616 | 88,917 | ||||||
RSA Insurance Group PLC (United Kingdom)*(a)(b) | 15,550 | 128,132 | ||||||
Sun Life Financial, Inc. (Canada)(b) | 957 | 35,132 | ||||||
Tokio Marine Holdings, Inc. (Japan)(a) | 4,113 | 135,935 | ||||||
Total Insurance | 1,052,715 | |||||||
Internet — 1.9% | ||||||||
ASOS PLC (United Kingdom)*(a)(b) | 499 | 25,514 | ||||||
Baidu, Inc. (China)*(a) | 369 | 68,933 | ||||||
NetEase, Inc. (China)(a) | 935 | 73,267 | ||||||
Qihoo 360 Technology Co. Ltd. (China)*(a) | 510 | 46,940 | ||||||
Soufun Holdings Ltd.(a) | 9,171 | 89,784 | ||||||
Tencent Holdings Ltd. (China)(a) | 2,600 | 39,702 | ||||||
Yahoo Japan Corp. (Japan)(a)(b) | 3,141 | 28,897 | ||||||
Total Internet | 373,037 | |||||||
Iron/Steel — 3.3% | ||||||||
ArcelorMittal (Luxembourg)(b)(c) | 7,263 | 108,437 | ||||||
Cia Siderurgica Nacional SA (Brazil)(a)(b) | 26,417 | 112,536 | ||||||
Gerdau SA (Brazil)(a) | 14,777 | 87,037 |
See accompanying Notes to Financial Statements.
105
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Iron/Steel — 3.3% (continued) | |||||||||
POSCO (South Korea)(a) | 1,096 | $ | 81,586 | ||||||
Ternium SA (Luxembourg)(a) | 4,383 | 122,417 | |||||||
Vale SA (Brazil)(a) | 9,278 | 122,748 | |||||||
Total Iron/Steel | 634,761 | ||||||||
Leisure Time — 0.7% | |||||||||
Carnival PLC (United Kingdom)(a) | 1,950 | 74,003 | |||||||
SEGA Sammy Holdings, Inc. (Japan)(a) | 11,586 | 57,003 | |||||||
Total Leisure Time | 131,006 | ||||||||
Lodging — 2.5% | |||||||||
Accor SA (France)(a) | 6,535 | 67,964 | |||||||
Galaxy Entertainment Group Ltd. (Hong Kong)(a)(b) | 1,347 | 107,625 | |||||||
Melco Crown Entertainment Ltd. (Hong Kong)(a) | 3,426 | 122,342 | |||||||
Sands China Ltd. (Cayman Islands)(a) | 1,473 | 111,757 | |||||||
Wynn Macau Ltd. (Cayman Islands)(a) | 1,781 | 69,976 | |||||||
Total Lodging | 479,664 | ||||||||
Machinery – Construction & Mining — 0.3% | |||||||||
Atlas Copco AB, Class A (Sweden)(a) | 1,261 | 36,657 | |||||||
Komatsu Ltd. (Japan)(a) | 753 | 17,492 | |||||||
Total Machinery – Construction & Mining | 54,149 | ||||||||
Machinery – Diversified — 0.8% | |||||||||
Kone OYJ, Class B (Finland)(a) | 1,574 | 32,818 | |||||||
Kubota Corp. (Japan)(a) | 1,792 | 127,330 | |||||||
Total Machinery – Diversified | 160,148 | ||||||||
Media — 0.7% | |||||||||
British Sky Broadcasting Group PLC (United Kingdom)(a) | 1,006 | 63,076 | |||||||
ITV PLC (United Kingdom)(a) | 2,468 | 75,496 | |||||||
Total Media | 138,572 | ||||||||
Metal Fabricate/Hardware — 0.6% | |||||||||
Assa Abloy AB (Sweden)(a) | 2,159 | 54,839 | |||||||
Vallourec SA (France)(a)(b) | 7,883 | 70,395 | |||||||
Total Metal Fabricate/Hardware | 125,234 | ||||||||
Mining — 3.6% | |||||||||
Anglo American PLC (United Kingdom)(a) | 1,990 | 24,417 | |||||||
BHP Billiton Ltd. (Australia)(a)(b) | 952 | 65,164 | |||||||
MMC Norilsk Nickel OJSC (Russia)(a) | 6,195 | 123,342 | |||||||
Newcrest Mining Ltd. (Australia)*(a)(b) | 12,182 | 121,942 |
See accompanying Notes to Financial Statements.
106
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Mining — 3.6% (continued) | |||||||||
Norsk Hydro ASA (Norway)(a)(b) | 15,764 | $ | 85,599 | ||||||
Randgold Resources Ltd. (Jersey Islands)(a) | 858 | 72,587 | |||||||
Rio Tinto PLC (United Kingdom)(a)(b) | 1,313 | 71,270 | |||||||
Silver Wheaton Corp. (Canada)(b) | 5,252 | 137,970 | |||||||
Total Mining | 702,291 | ||||||||
Miscellaneous Manufacturing — 1.1% | |||||||||
FUJIFILM Holdings Corp. (Japan)(a) | 784 | 21,889 | |||||||
Orkla ASA (Norway)(a)(b) | 12,694 | 114,119 | |||||||
Siemens AG (Germany)(a) | 624 | 82,487 | |||||||
Total Miscellaneous Manufacturing | 218,495 | ||||||||
Oil & Gas — 4.4% | |||||||||
BG Group PLC (United Kingdom)(a) | 962 | 20,539 | |||||||
BP PLC (United Kingdom)(a) | 290 | 15,297 | |||||||
China Petroleum & Chemical Corp. (China)(a) | 275 | 26,133 | |||||||
Encana Corp. (Canada)(b) | 3,253 | 77,129 | |||||||
Enerplus Corp. (Canada) | 6,159 | 155,084 | |||||||
Eni SpA (Italy)(a) | 1,378 | 75,652 | |||||||
Imperial Oil Ltd. (Canada)(b) | 1,017 | 53,525 | |||||||
PetroChina Co. Ltd. (China)(a) | 272 | 34,149 | |||||||
Petroleo Brasileiro SA (Brazil)(a) | 6,877 | 100,610 | |||||||
Royal Dutch Shell PLC (United Kingdom)(a) | 717 | 59,059 | |||||||
Surgutneftegas OAO (Russia)*(a) | 1,958 | 16,173 | |||||||
Vermilion Energy, Inc. (Canada)(b) | 1,258 | 87,683 | |||||||
YPF SA (Argentina)(a) | 3,845 | 125,655 | |||||||
Total Oil & Gas | 846,688 | ||||||||
Oil & Gas Services — 0.4% | |||||||||
Technip SA (France)(a) | 2,915 | 79,886 | |||||||
Pharmaceuticals — 3.4% | |||||||||
Astellas Pharma, Inc. (Japan)(a)(b) | 7,764 | 102,019 | |||||||
Bayer AG (Germany)(a) | 269 | 38,002 | |||||||
Dr Reddy's Laboratories Ltd. (India)(a) | 1,030 | 44,444 | |||||||
Grifols SA (Spain)(a) | 1,867 | 82,241 | |||||||
Meda AB (Sweden)(a)(b) | 4,659 | 80,508 | |||||||
Novo Nordisk A/S (Denmark)(a) | 902 | 41,663 | |||||||
Sanofi (France)(a) | 482 | 25,628 | |||||||
Shire PLC (Ireland)(a) | 489 | 115,155 |
See accompanying Notes to Financial Statements.
107
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Pharmaceuticals — 3.4% (continued) | |||||||||
Valeant Pharmaceuticals International, Inc. (Canada)*(b) | 952 | $ | 120,066 | ||||||
Total Pharmaceuticals | 649,726 | ||||||||
Real Estate — 0.1% | |||||||||
Cheung Kong Holdings Ltd. (Hong Kong)(a) | 1,283 | 22,739 | |||||||
Retail — 1.8% | |||||||||
Cie Financiere Richemont SA (Switzerland)(a) | 4,157 | 43,565 | |||||||
Hennes & Mauritz AB (Sweden)(a) | 1,616 | 14,059 | |||||||
Kering (France)(a) | 2,898 | 63,205 | |||||||
Kingfisher PLC (United Kingdom)(a) | 3,322 | 40,794 | |||||||
Marks & Spencer Group PLC (United Kingdom)(a) | 1,901 | 27,603 | |||||||
Pandora A/S (Denmark)(a)(b) | 6,151 | 117,607 | |||||||
Swatch Group AG (The) (Switzerland)(a) | 1,219 | 36,863 | |||||||
Total Retail | 343,696 | ||||||||
Semiconductors — 3.5% | |||||||||
Advanced Semiconductor Engineering, Inc. (Taiwan)(a) | 13,423 | 87,249 | |||||||
ARM Holdings PLC (United Kingdom)(a) | 1,167 | 52,795 | |||||||
ASML Holding NV (Netherlands)(c) | 1,354 | 126,288 | |||||||
Infineon Technologies AG (Germany)(a) | 9,600 | 119,520 | |||||||
Siliconware Precision Industries Co. (Taiwan)(a) | 14,162 | 116,270 | |||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)(a) | 2,962 | 63,357 | |||||||
Tokyo Electron Ltd. (Japan)(a) | 6,695 | 114,418 | |||||||
Total Semiconductors | 679,897 | ||||||||
Software — 0.5% | |||||||||
Open Text Corp. (Canada) | 1,220 | 58,487 | |||||||
SAP AG (Germany)(a) | 469 | 36,113 | |||||||
Total Software | 94,600 | ||||||||
Telecommunications — 7.0% | |||||||||
Alcatel-Lucent (France)*(a) | 19,959 | 71,054 | |||||||
BT Group PLC (United Kingdom)(a) | 536 | 35,178 | |||||||
China Telecom Corp. Ltd. (China)(a) | 994 | 48,656 | |||||||
China Unicom Ltd. (Hong Kong)(a)(b) | 5,987 | 91,781 | |||||||
Deutsche Telekom AG (Germany)(a) | 4,411 | 77,281 | |||||||
KDDI Corp. (Japan)(a)(b) | 6,748 | 102,907 | |||||||
MTN Group Ltd. (South Africa)(a) | 1,662 | 35,234 | |||||||
Nippon Telegraph & Telephone Corp. (Japan)(a) | 1,685 | 52,589 | |||||||
Nokia OYJ (Finland)(a) | 14,004 | 105,870 | |||||||
Orange SA (France)(a) | 7,619 | 120,380 |
See accompanying Notes to Financial Statements.
108
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Telecommunications — 7.0% (continued) | |||||||||
PT Telekomunikasi Indonesia Tbk (Indonesia)(a) | 525 | $ | 21,872 | ||||||
Singapore Telecommunications Ltd. (Singapore)(a) | 617 | 19,133 | |||||||
SK Telecom Co. Ltd. (South Korea)(a) | 2,245 | 58,235 | |||||||
SoftBank Corp. (Japan)(a) | 1,659 | 62,378 | |||||||
Tele2 AB, Class B (Sweden)(a) | 14,075 | 81,213 | |||||||
Telecom Argentina SA (Argentina)(a) | 4,931 | 116,125 | |||||||
Telecom Italia SpA (Italy)*(a) | 10,709 | 135,148 | |||||||
Telefonaktiebolaget LM Ericsson (Sweden)(a) | 3,891 | 47,003 | |||||||
Telenor ASA (Norway)(a) | 939 | 64,228 | |||||||
Total Telecommunications | 1,346,265 | ||||||||
Transportation — 2.0% | |||||||||
Canadian Pacific Railway Ltd. (Canada)(b) | 671 | 121,545 | |||||||
Deutsche Post AG (Germany)(a) | 1,196 | 43,319 | |||||||
East Japan Railway Co. (Japan)(a) | 2,248 | 29,471 | |||||||
Royal Mail PLC (United Kingdom)*(a) | 5,222 | 88,200 | |||||||
TNT Express NV (Netherlands)(a) | 11,417 | 102,753 | |||||||
Total Transportation | 385,288 | ||||||||
Water — 0.5% | |||||||||
Veolia Environnement SA (France)(a) | 5,116 | 97,204 | |||||||
Total Common Stocks (Cost $17,520,719) | 18,938,975 | ||||||||
PREFERRED STOCKS — 0.7% | |||||||||
Auto Manufacturers — 0.3% | |||||||||
Volkswagen AG, 0.00% (Germany)(a)(d) | 990 | 51,926 | |||||||
Banks — 0.4% | |||||||||
Royal Bank of Scotland Group PLC, 6.62% (United Kingdom)(d) | 3,325 | 78,802 | |||||||
Total Preferred Stocks (Cost $129,736) | 130,728 |
See accompanying Notes to Financial Statements.
109
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
MONEY MARKET FUND — 0.9% | ||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%(d) (Cost $177,147) | 177,147 | $ | 177,147 | |||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 16.7% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(e) (Cost $3,210,703) | 3,210,703 | 3,210,703 | ||||||
Total Investments — 116.5% (Cost $21,038,305) | 22,457,553 | |||||||
Liabilities in Excess of Other Assets — (16.5)% | (3,178,905 | ) | ||||||
Net Assets — 100.0% | $ | 19,278,648 |
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 $3,119,705; the aggregate market value of the collateral held by the fund is $3,211,866. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $1,163. |
(c) | Registered Shares. |
(d) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(e) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
110
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 0.5 | % | ||
Aerospace/Defense | 1.4 | |||
Airlines | 0.2 | |||
Apparel | 0.9 | |||
Auto Manufacturers | 5.6 | |||
Auto Parts & Equipment | 2.3 | |||
Banks | 13.3 | |||
Beverages | 0.8 | |||
Biotechnology | 0.2 | |||
Building Materials | 1.6 | |||
Chemicals | 4.6 | |||
Coal | 0.6 | |||
Commercial Services | 0.7 | |||
Computers | 2.0 | |||
Cosmetics/Personal Care | 0.2 | |||
Distribution/Wholesale | 2.1 | |||
Diversified Financial Services | 3.2 | |||
Electric | 1.9 | |||
Electrical Components & Equipment | 0.7 | |||
Electronics | 1.8 | |||
Energy – Alternate Sources | 0.5 | |||
Engineering & Construction | 0.2 | |||
Food | 4.9 | |||
Forest Products & Paper | 1.1 | |||
Healthcare – Products | 0.7 | |||
Holding Companies – Diversified | 0.8 | |||
Home Builders | 0.8 | |||
Home Furnishings | 0.7 | |||
Insurance | 5.5 | |||
Internet | 1.9 | |||
Iron/Steel | 3.3 | |||
Leisure Time | 0.7 | |||
Lodging | 2.5 | |||
Machinery – Construction & Mining | 0.3 | |||
Machinery – Diversified | 0.8 | |||
Media | 0.7 | |||
Metal Fabricate/Hardware | 0.6 | |||
Mining | 3.6 | |||
Miscellaneous Manufacturing | 1.1 | |||
Oil & Gas | 4.4 | |||
Oil & Gas Services | 0.4 |
See accompanying Notes to Financial Statements.
111
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | |||
% of Net Assets | ||||
Pharmaceuticals | 3.4 | % | ||
Real Estate | 0.1 | |||
Retail | 1.8 | |||
Semiconductors | 3.5 | |||
Software | 0.5 | |||
Telecommunications | 7.0 | |||
Transportation | 2.0 | |||
Water | 0.5 | |||
Money Market Fund | 17.6 | |||
Total Investments | 116.5 | |||
Liabilities in Excess of Other Assets | (16.5 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
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ADVISORSHARES MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 97.1% | ||||||||
Equity Fund — 97.1% | ||||||||
Guggenheim S&P 500 Equal Weight ETF | 9,874 | $ | 757,434 | |||||
iShares Core S&P 500 ETF | 7,698 | 1,516,506 | ||||||
iShares Core S&P Mid-Cap ETF | 5,312 | 760,041 | ||||||
iShares MSCI Emerging Markets ETF | 35,807 | 1,547,937 | ||||||
iShares Russell 1000 ETF(a) | 6,860 | 755,355 | ||||||
iShares S&P 100 ETF | 8,678 | 750,907 | ||||||
iShares S&P 500 Growth ETF | 14,361 | 1,510,634 | ||||||
iShares S&P 500 Value ETF(a) | 17,093 | 1,543,156 | ||||||
iShares S&P MidCap 400 Value ETF(a) | 12,032 | 1,527,101 | ||||||
iShares Select Dividend ETF | 10,107 | 778,037 | ||||||
PowerShares QQQ Trust, Series 1 | 8,106 | 761,234 | ||||||
SPDR S&P Emerging Markets SmallCap ETF | 15,388 | 774,016 | ||||||
Vanguard FTSE All-World ex-US ETF(a) | 14,640 | 765,526 | ||||||
WisdomTree Dividend ex-Financials Fund | 10,521 | 778,449 | ||||||
WisdomTree LargeCap Dividend Fund | 10,836 | 766,972 | ||||||
Total Exchange Traded Funds (Cost $14,809,866) | 15,293,305 | |||||||
MONEY MARKET FUND — 3.1% | ||||||||
Dreyfus Institutional Reserves Treasury Fund �� Institutional Class, 0.00%(b) (Cost $483,352) | 483,352 | 483,352 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 9.9% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $1,566,357) | 1,566,357 | 1,566,357 | ||||||
Total Investments — 110.1% (Cost $16,859,575) | 17,343,014 | |||||||
Liabilities in Excess of Other Assets — (10.1)% | (1,593,432 | ) | ||||||
Net Assets — 100.0% | $ | 15,749,582 |
ETF — Exchange Traded Fund
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,532,683; the aggregate market value of the collateral held by the fund is $1,566,357. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
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ADVISORSHARES MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 97.1 | % | ||
Money Market Fund | 13.0 | |||
Total Investments | 110.1 | |||
Liabilities in Excess of Other Assets | (10.1 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
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ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
CORPORATE BONDS — 20.4% | ||||||||
Consumer Discretionary — 2.2% | ||||||||
American Axle & Manufacturing, Inc., 5.13%, 02/15/19 | $ | 115,000 | $ | 121,325 | ||||
Boyd Gaming Corp., 9.13%, 12/01/18 | 210,000 | 224,437 | ||||||
Dish DBS Corp., 4.63%, 07/15/17 | 230,000 | 244,663 | ||||||
DR Horton, Inc., 3.63%, 02/15/18 | 320,000 | 328,800 | ||||||
GLP Capital LP/GLP Financing II, Inc., 4.38%, 11/01/18‡ | 290,000 | 300,150 | ||||||
GLP Capital LP/GLP Financing II, Inc., 4.88%, 11/01/20‡ | 165,000 | 170,362 | ||||||
Hyatt Hotels Corp., 3.88%, 08/15/16 | 35,000 | 36,907 | ||||||
MGM Resorts International, 7.63%, 01/15/17 | 165,000 | 186,863 | ||||||
QVC, Inc., 3.13%, 04/01/19 | 505,000 | 514,154 | ||||||
Rent-A-Center, Inc., 6.63%, 11/15/20(a) | 175,000 | 183,094 | ||||||
Time Warner Cable, Inc., 6.75%, 07/01/18 | 205,000 | 242,795 | ||||||
Toll Brothers Finance Corp., 4.00%, 12/31/18 | 375,000 | 387,187 | ||||||
Weyerhaeuser Real Estate Co., 4.38%, 06/15/19‡ | 70,000 | 70,438 | ||||||
Wyndham Worldwide Corp., 2.50%, 03/01/18 | 450,000 | 457,261 | ||||||
Total Consumer Discretionary | 3,468,436 | |||||||
Energy — 0.7% | ||||||||
Calumet Specialty Products Partners LP/Calumet Finance Corp., 6.50%, 04/15/21‡ | 210,000 | 215,250 | ||||||
Forest Oil Corp., 7.25%, 06/15/19(a) | 92,000 | 91,540 | ||||||
NGL Energy Partners LP/NGL Energy Finance Corp., 5.13%, 07/15/19‡ | 160,000 | 161,200 | ||||||
Parker Drilling Co., 6.75%, 07/15/22‡ | 100,000 | 104,500 | ||||||
Plains Exploration & Production Co., 6.50%, 11/15/20 | 210,000 | 235,462 | ||||||
QEP Resources, Inc., 6.88%, 03/01/21 | 225,000 | 253,688 | ||||||
Total Energy | 1,061,640 | |||||||
Financials — 9.7% | ||||||||
Ally Financial, Inc., 3.50%, 07/18/16 | 450,000 | 465,750 | ||||||
American International Group, Inc., 3.38%, 08/15/20 | 335,000 | 348,590 | ||||||
Associated Banc-Corp., 5.13%, 03/28/16 | 60,000 | 63,932 | ||||||
Associates Corp. of North America, 6.95%, 11/01/18 | 415,000 | 496,085 | ||||||
Aviation Capital Group Corp., 3.88%, 09/27/16‡ | 335,000 | 346,911 | ||||||
Bank of America Corp., 2.00%, 01/11/18 | 235,000 | 236,717 | ||||||
Bank of America Corp., 5.49%, 03/15/19 | 66,000 | 74,369 |
See accompanying Notes to Financial Statements.
115
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Financials — 9.7% (continued) | |||||||||
Bank of America Corp., Series L, 5.65%, 05/01/18 | $ | 200,000 | $ | 226,905 | |||||
Barclays Bank PLC, 5.20%, 07/10/14 (United Kingdom) | 100,000 | 100,091 | |||||||
Bear Stearns Cos. LLC (The), 7.25%, 02/01/18 | 75,000 | 89,328 | |||||||
Capital One Financial Corp., 6.15%, 09/01/16 | 400,000 | 442,893 | |||||||
CNA Financial Corp., 5.85%, 12/15/14 | 100,000 | 102,509 | |||||||
Corporate Office Properties LP, 3.70%, 06/15/21 | 460,000 | 460,448 | |||||||
Countrywide Financial Corp., 6.25%, 05/15/16 | 130,000 | 141,922 | |||||||
DDR Corp., 7.88%, 09/01/20 | 180,000 | 228,054 | |||||||
DDR Corp., 3.50%, 01/15/21 | 145,000 | 147,885 | |||||||
E*Trade Financial Corp., 6.38%, 11/15/19 | 175,000 | 190,312 | |||||||
Fifth Third Bancorp, 4.50%, 06/01/18 | 321,000 | 350,559 | |||||||
Ford Motor Credit Co. LLC, 8.13%, 01/15/20 | 455,000 | 581,614 | |||||||
General Electric Capital Corp., Series G, 5.63%, 05/01/18 | 295,000 | 338,317 | |||||||
Genworth Holdings, Inc., 7.63%, 09/24/21 | 200,000 | 250,933 | |||||||
Goldman Sachs Group, Inc. (The), 5.63%, 01/15/17 | 670,000 | 737,801 | |||||||
HCP, Inc., 3.75%, 02/01/19 | 175,000 | 186,663 | |||||||
Health Care REIT, Inc., 4.70%, 09/15/17 | 220,000 | 240,843 | |||||||
Healthcare Trust of America Holdings LP, 3.38%, 07/15/21 | 150,000 | 150,314 | |||||||
HSBC Finance Corp., 6.68%, 01/15/21 | 225,000 | 269,443 | |||||||
HSBC USA, Inc., 1.63%, 01/16/18 | 200,000 | 200,619 | |||||||
HSBC USA, Inc., 2.63%, 09/24/18 | 225,000 | 232,245 | |||||||
Huntington Bancshares, Inc., 7.00%, 12/15/20 | 200,000 | 242,888 | |||||||
International Lease Finance Corp., 3.88%, 04/15/18 | 390,000 | 400,481 | |||||||
iStar Financial, Inc., 4.00%, 11/01/17 | 410,000 | 413,588 | |||||||
Jefferies Group LLC, 5.13%, 04/13/18 | 275,000 | 301,818 | |||||||
JPMorgan Chase & Co., 6.13%, 06/27/17 | 280,000 | 315,530 | |||||||
Lazard Group LLC, 4.25%, 11/14/20 | 275,000 | 288,518 | |||||||
Lincoln National Corp., 8.75%, 07/01/19 | 125,000 | 162,240 | |||||||
Lincoln National Corp., 6.05%, 04/20/67@ | 100,000 | 101,625 | |||||||
Morgan Stanley, 5.55%, 04/27/17 | 425,000 | 472,955 | |||||||
Morgan Stanley, 2.13%, 04/25/18 | 180,000 | 182,143 | |||||||
National Retail Properties, Inc., 5.50%, 07/15/21 | 250,000 | 285,458 | |||||||
Nationstar Mortgage LLC, 6.50%, 08/01/18 | 235,000 | 243,225 | |||||||
Navient Corp., 4.88%, 06/17/19 | 285,000 | 294,433 |
See accompanying Notes to Financial Statements.
116
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Financials — 9.7% (continued) | |||||||||
Prudential Financial, Inc., 5.20%, 03/15/44@ | $ | 300,000 | $ | 307,125 | |||||
Regions Financial Corp., 5.75%, 06/15/15 | 325,000 | 339,760 | |||||||
Santander Holdings USA, Inc., 3.00%, 09/24/15 | 115,000 | 118,156 | |||||||
SBA Tower Trust, 2.93%, 12/15/17‡ | 725,000 | 740,177 | |||||||
Senior Housing Properties Trust, 3.25%, 05/01/19 | 415,000 | 420,747 | |||||||
State Street Corp., 4.96%, 03/15/18 | 300,000 | 329,409 | |||||||
Ventas Realty LP, 4.00%, 04/30/19 | 310,000 | 333,408 | |||||||
Voya Financial, Inc., 2.90%, 02/15/18 | 365,000 | 378,553 | |||||||
Wells Fargo & Co., 5.13%, 09/15/16 | 75,000 | 81,930 | |||||||
Willis North America, Inc., 6.20%, 03/28/17 | 250,000 | 275,026 | |||||||
Zions Bancorporation, 4.50%, 03/27/17 | 195,000 | 208,240 | |||||||
Total Financials | 14,939,485 | ||||||||
Health Care — 0.9% | |||||||||
Catamaran Corp., 4.75%, 03/15/21 (Canada) | 120,000 | 121,500 | |||||||
Community Health Systems, Inc., 5.13%, 08/15/18 | 170,000 | 178,712 | |||||||
Express Scripts Holding Co., 3.50%, 11/15/16 | 150,000 | 159,359 | |||||||
Forest Laboratories, Inc., 4.38%, 02/01/19‡ | 200,000 | 216,262 | |||||||
HCA, Inc., 3.75%, 03/15/19 | 160,000 | 161,800 | |||||||
HCA, Inc., 6.50%, 02/15/20 | 185,000 | 208,587 | |||||||
Tenet Healthcare Corp., 6.25%, 11/01/18 | 150,000 | 167,063 | |||||||
Tenet Healthcare Corp., 5.00%, 03/01/19‡(a) | 60,000 | 60,975 | |||||||
Tenet Healthcare Corp., 6.00%, 10/01/20 | 105,000 | 114,188 | |||||||
Total Health Care | 1,388,446 | ||||||||
Industrials — 4.9% | |||||||||
ADT Corp. (The), 6.25%, 10/15/21(a) | 355,000 | 377,187 | |||||||
America West Airlines 1999-1 Pass-Through Trust, Series 991G, 7.93%, 01/02/19 | 429,638 | 477,972 | |||||||
America West Airlines 2001-1 Pass-Through Trust, Series 011G, 7.10%, 04/02/21 | 1,109,615 | 1,231,673 | |||||||
Atlas Air 2000-1 Class A Pass-Through Trust, Series 00-1, 8.71%, 01/02/19 | 521,976 | 548,075 | |||||||
Continental Airlines 1997-4 Class A Pass-Through Trust, Series 974A, 6.90%, 01/02/18 | 339,716 | 365,194 | |||||||
Continental Airlines 1998-1 Class A Pass-Through Trust, Series 981A, 6.65%, 09/15/17 | 312,691 | 332,015 |
See accompanying Notes to Financial Statements.
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ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Industrials — 4.9% (continued) | |||||||||
Continental Airlines 1999-1 Class A Pass-Through Trust, Series 991A, 6.55%, 02/02/19 | $ | 337,804 | $ | 374,523 | |||||
Continental Airlines 1999-2 Class C-2 Pass-Through Trust, Series AMBC, 6.24%, 03/15/20 | 251,349 | 282,768 | |||||||
Continental Airlines 2000-1 Class A-1 Pass-Through Trust, Series 00A1, 8.05%, 11/01/20 | 319,506 | 367,624 | |||||||
Delta Air Lines 2012-1 Class A Pass-Through Trust, Series A, 4.75%, 05/07/20 | 322,845 | 350,287 | |||||||
Delta Air Lines Class A Pass-Through Trust, Series 2010-2A, 4.95%, 05/23/19 | 761,356 | 829,878 | |||||||
Deluxe Corp., 7.00%, 03/15/19 | 170,000 | 182,750 | |||||||
HD Supply, Inc., 8.13%, 04/15/19 | 170,000 | 187,638 | |||||||
Northwest Airlines 2002-1 Class G-2 Pass-Through Trust, Series 02-1, 6.26%, 11/20/21 | 439,534 | 475,444 | |||||||
Textron, Inc., 4.63%, 09/21/16 | 400,000 | 429,002 | |||||||
UAL 2009-2a Pass-Through Trust, Series 09-2, 9.75%, 01/15/17 | 543,882 | 622,745 | |||||||
United Rentals North America, Inc., 7.38%, 05/15/20 | 150,000 | 166,500 | |||||||
Total Industrials | 7,601,275 | ||||||||
Information Technology — 0.4% | |||||||||
Dun & Bradstreet Corp. (The), 3.25%, 12/01/17(a) | 300,000 | 310,903 | |||||||
Equinix, Inc., 4.88%, 04/01/20 | 175,000 | 180,250 | |||||||
Sanmina Corp., 4.38%, 06/01/19‡ | 135,000 | 135,169 | |||||||
Total Information Technology | 626,322 | ||||||||
Materials — 0.4% | |||||||||
Hexion US Finance Corp., 6.63%, 04/15/20 | 175,000 | 186,375 | |||||||
Huntsman International LLC, 4.88%, 11/15/20(a) | 200,000 | 208,000 | |||||||
International Paper Co., 9.38%, 05/15/19 | 75,000 | 99,412 | |||||||
Reynolds Group Issuer LLC, 7.88%, 08/15/19 | 150,000 | 164,063 | |||||||
Total Materials | 657,850 | ||||||||
Telecommunication Services — 1.0% | |||||||||
AT&T, Inc., 3.88%, 08/15/21 | 210,000 | 223,758 | |||||||
Frontier Communications Corp., 7.13%, 03/15/19 | 250,000 | 285,000 | |||||||
Qwest Corp., 6.50%, 06/01/17 | 75,000 | 85,327 | |||||||
Sprint Communications, Inc., 6.00%, 12/01/16 | 170,000 | 185,512 |
See accompanying Notes to Financial Statements.
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ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Telecommunication Services — 1.0% (continued) | |||||||||
T-Mobile USA, Inc., 6.46%, 04/28/19 | $ | 275,000 | $ | 290,125 | |||||
Verizon Communications, Inc., 2.50%, 09/15/16 | 45,000 | 46,408 | |||||||
Verizon Communications, Inc., 3.65%, 09/14/18 | 50,000 | 53,526 | |||||||
Verizon Communications, Inc., 2.55%, 06/17/19 | 200,000 | 203,127 | |||||||
Verizon Communications, Inc., 4.60%, 04/01/21 | 125,000 | 138,081 | |||||||
Total Telecommunication Services | 1,510,864 | ||||||||
Utilities — 0.2% | |||||||||
Energy Transfer Partners LP, 4.15%, 10/01/20 | 250,000 | 264,661 | |||||||
Total Corporate Bonds (Cost $30,997,715) | 31,518,979 | ||||||||
FOREIGN BONDS — 5.2% | |||||||||
Consumer Discretionary — 0.1% | |||||||||
Wynn Macau Ltd., 5.25%, 10/15/21 (Cayman Islands)‡ | 210,000 | 216,300 | |||||||
Consumer Staples — 0.3% | |||||||||
Coca-Cola Femsa SAB de CV, 2.38%, 11/26/18 (Mexico) | 470,000 | 476,840 | |||||||
Energy — 0.7% | |||||||||
Petrobras International Finance Co., 3.50%, 02/06/17 (Brazil) | 400,000 | 411,600 | |||||||
Petroleos Mexicanos, 6.00%, 03/05/20 (Mexico) | 350,000 | 402,150 | |||||||
Weatherford Bermuda Holdings Ltd., 9.63%, 03/01/19 (Bermuda) | 150,000 | 197,038 | |||||||
Total Energy | 1,010,788 | ||||||||
Financials — 2.3% | |||||||||
Aircastle Ltd., 4.63%, 12/15/18 (Bermuda) | 285,000 | 294,263 | |||||||
Aircastle Ltd., 6.25%, 12/01/19 (Bermuda) | 250,000 | 275,000 | |||||||
Aircastle Ltd., 5.13%, 03/15/21 (Bermuda) | 210,000 | 217,875 | |||||||
Banco Santander Brasil SA, 4.50%, 04/06/15 (Brazil) | 250,000 | 256,250 | |||||||
Banco Santander Chile, 2.11%, 06/07/18 (Chile)@‡ | 200,000 | 204,500 | |||||||
Caixa Economica Federal, 4.25%, 05/13/19 (Brazil)‡ | 395,000 | 399,740 | |||||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, 2.25%, 01/14/19 (Netherlands) | 300,000 | 304,145 | |||||||
Corp. Andina de Fomento, 3.75%, 01/15/16 (Supranational) | 100,000 | 104,512 | |||||||
Intesa Sanpaolo SpA, 3.13%, 01/15/16 (Italy) | 200,000 | 205,658 | |||||||
Korea Finance Corp., 4.63%, 11/16/21 (South Korea) | 375,000 | 413,824 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Financials — 2.3% (continued) | |||||||||
Macquarie Group Ltd., 6.00%, 01/14/20 (Australia)‡ | $ | 45,000 | $ | 51,038 | |||||
Royal Bank of Scotland Group PLC, 6.40%, 10/21/19 (United Kingdom) | 350,000 | 412,587 | |||||||
Schaeffler Finance BV, 4.25%, 05/15/21 (Germany)‡ | 375,000 | 375,937 | |||||||
XL Group PLC, Series E, 6.50%, 12/29/49 (Ireland)@ | 105,000 | 103,950 | |||||||
Total Financials | 3,619,279 | ||||||||
Foreign Government — 0.2% | |||||||||
Australia Government Bond, Series 130, 4.75%, 06/15/16 (Australia) | 385,000 | 378,715 | |||||||
Health Care — 0.1% | |||||||||
Valeant Pharmaceuticals International, Inc., 6.75%, 08/15/18 (Canada)‡ | 85,000 | 91,800 | |||||||
Industrials — 0.3% | |||||||||
Air Canada 2013-1 Class B Pass-Through Trust, 5.38%, 05/15/21 (Canada)‡ | 318,285 | 329,425 | |||||||
Bombardier, Inc., 4.75%, 04/15/19 (Canada)‡ | 65,000 | 66,219 | |||||||
Total Industrials | 395,644 | ||||||||
Materials — 0.2% | |||||||||
Methanex Corp., 3.25%, 12/15/19 (Canada) | 100,000 | 102,514 | |||||||
Vale Overseas Ltd., 4.38%, 01/11/22 (Brazil) | 170,000 | 175,389 | |||||||
Total Materials | 277,903 | ||||||||
Telecommunication Services — 0.5% | |||||||||
Millicom International Cellular SA, 6.63%, 10/15/21 (Luxembourg)‡ | 280,000 | 302,400 | |||||||
Telefonica Emisiones SAU, 6.42%, 06/20/16 (Spain) | 100,000 | 110,141 | |||||||
Wind Acquisition Finance SA, 4.75%, 07/15/20 (Luxembourg)‡ | 375,000 | 378,750 | |||||||
Total Telecommunication Services | 791,291 | ||||||||
Utilities — 0.5% | |||||||||
Majapahit Holding BV, 7.75%, 01/20/20 (Indonesia)‡ | 245,000 | 287,875 | |||||||
State Grid Overseas Investment 2014 Ltd., 2.75%, 05/07/19 (China)‡ | 500,000 | 504,635 | |||||||
Total Utilities | 792,510 | ||||||||
Total Foreign Bonds (Cost $7,951,349) | 8,051,070 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
ASSET BACKED SECURITIES — 22.7% | ||||||||
American Homes 4 Rent, Class A, Series 2014-SFR1, 1.25%, 06/17/31@‡ | $ | 280,000 | $ | 280,638 | ||||
AmeriCredit Automobile Receivables Trust, Class C, Series 2014-2, 2.18%, 06/08/20 | 500,000 | 502,217 | ||||||
AmeriCredit Automobile Receivables Trust, Class D, Series 2011-2, 4.00%, 05/08/17 | 955,000 | 982,261 | ||||||
AmeriCredit Automobile Receivables Trust, Class D, Series 2012-4, 2.68%, 10/09/18 | 1,050,000 | 1,078,682 | ||||||
AmeriCredit Automobile Receivables Trust, Class D, Series 2013-2, 2.42%, 05/08/19 | 575,000 | 581,843 | ||||||
AmeriCredit Automobile Receivables Trust, Class D, Series 2014-1, 2.54%, 06/08/20 | 500,000 | 503,129 | ||||||
Asset Backed Funding Certificates Trust, Class A6, Series 2005-AQ1, 4.78%, 06/25/35# | 291,060 | 300,360 | ||||||
Associates Manufactured Housing Pass-Through Certificates, Class B1, Series 1996-1, 8.00%, 03/15/27@ | 420,475 | 461,125 | ||||||
Avis Budget Rental Car Funding AESOP LLC, Class A, Series 2012-3A, 2.10%, 03/20/19‡ | 500,000 | 505,946 | ||||||
Avis Budget Rental Car Funding AESOP LLC, Class A, Series 2013-1A, 1.92%, 09/20/19‡ | 140,000 | 140,071 | ||||||
Banc of America Funding Trust, Class 1A1, Series 2005-1, 5.50%, 02/25/35 | 408,935 | 425,559 | ||||||
BankAmerica Manufactured Housing Contract Trust, Class B1, Series 1998-1, 7.81%, 08/10/25@ | 435,256 | 468,142 | ||||||
Bayview Financial Acquisition Trust, Class 1A2, Series 2007-A, 6.21%, 05/28/37# | 691,352 | 740,116 | ||||||
Beacon Container Finance LLC, Class A, Series 2012-1A, 3.72%, 09/20/27‡ | 732,004 | 748,131 | ||||||
California Republic Auto Receivables Trust, Class B, Series 2014-2, 2.34%, 04/15/20 | 500,000 | 500,771 | ||||||
Capital Auto Receivables Asset Trust, Class C, Series 2013-4, 2.67%, 02/20/19 | 340,000 | 346,345 | ||||||
CarFinance Capital Auto Trust, Class B, Series 2013-2A, 3.15%, 08/15/19‡ | 350,000 | 355,244 | ||||||
CarFinance Capital Auto Trust, Class B, Series 2014-1A, 2.72%, 04/15/20‡ | 200,000 | 200,735 | ||||||
CarFinance Capital Auto Trust, Class D, Series 2014-1A, 4.90%, 04/15/20‡ | 415,000 | 426,882 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES — 22.7% (continued) | |||||||||
CarMax Auto Owner Trust, Class B, Series 2012-1, 1.76%, 08/15/17 | $ | 500,000 | $ | 508,598 | |||||
CarMax Auto Owner Trust, Class C, Series 2014-2, 2.08%, 01/15/20 | 425,000 | 426,543 | |||||||
CCG Receivables Trust, Class B, Series 2014-1, 2.15%, 11/15/21‡ | 420,000 | 422,336 | |||||||
Centex Home Equity Loan Trust, Class AF5, Series 2004-D, 5.35%, 09/25/34# | 438,000 | 465,834 | |||||||
Chase Funding Trust Series, Class 1A4, Series 2004-2, 5.32%, 02/26/35 | 1,314,919 | 1,333,184 | |||||||
Citicorp Residential Mortgage Trust Series, Class A4, Series 2006-1, 5.94%, 07/25/36# | 605,758 | 635,137 | |||||||
Citicorp Residential Mortgage Trust Series, Class A6, Series 2007-2, 5.75%, 06/25/37# | 694,556 | 722,737 | |||||||
CKE Restaurant Holdings, Inc., Class A2, Series 2013-1A, 4.47%, 03/20/43‡ | 304,188 | 312,863 | |||||||
Conseco Financial Corp., Class B1, Series 1995-5, 7.30%, 09/15/26@ | 702,046 | 749,109 | |||||||
Countrywide Asset-Backed Certificates, Class A3, Series 2004-S1, 5.12%, 02/25/35# | 931,494 | 954,334 | |||||||
Cronos Containers Program Ltd., Class A, Series 2012-2A, 3.81%, 09/18/27 (Bermuda)‡ | 247,500 | 248,755 | |||||||
Domino's Pizza Master Issuer LLC, Class A2, Series 2012-1A, 5.22%, 01/25/42‡ | 265,719 | 285,866 | |||||||
Drug Royalty II LP 2, Class A2, Series 2014-1, 3.48%, 07/15/23‡ | 450,000 | 449,993 | |||||||
DT Auto Owner Trust, Class C, Series 2013-2A, 3.06%, 09/16/19‡ | 500,000 | 507,896 | |||||||
DT Auto Owner Trust, Class C, Series 2014-2A, 2.46%, 01/15/20‡ | 300,000 | 300,427 | |||||||
Exeter Automobile Receivables Trust, Class B, Series 2013-2A, 3.09%, 07/16/18‡ | 180,000 | 184,531 | |||||||
Exeter Automobile Receivables Trust, Class C, Series 2013-1A, 3.52%, 02/15/19‡ | 500,000 | 518,993 | |||||||
Exeter Automobile Receivables Trust, Class C, Series 2014-1A, 3.57%, 07/15/19‡ | 550,000 | 566,154 | |||||||
Exeter Automobile Receivables Trust, Class C, Series 2014-2A, 3.26%, 12/16/19‡ | 500,000 | 503,402 | |||||||
Federal Home Loan Mortgage Corporation, Class M2, Series 2014-DN2, 1.80%, 04/25/24@ | 500,000 | 503,815 | |||||||
GSAA Trust, Class AF4, Series 2005-1, 5.62%, 11/25/34# | 260,489 | 278,599 | |||||||
Hilton Grand Vacations Trust, Class A, Series 2013-A, 2.28%, 01/25/26‡ | 210,378 | 213,313 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
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Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES — 22.7% (continued) | |||||||||
Hilton Grand Vacations Trust, Class A, Series 2014-AA, 1.77%, 11/25/26‡ | $ | 440,000 | $ | 440,508 | |||||
Honda Auto Receivables Owner Trust, Class A4, Series 2011-3, 1.17%, 12/21/17 | 750,000 | 753,164 | |||||||
Hyundai Auto Receivables Trust, Class D, Series 2014-B, 2.51%, 12/15/20 | 425,000 | 426,366 | |||||||
JPMorgan Mortgage Trust, Class 2A2, Series 2014-2, 3.50%, 06/25/29@‡ | 320,000 | 332,300 | |||||||
LEAF Receivables Funding 9 LLC, Class D, Series 2013-1, 5.11%, 09/15/21‡ | 345,000 | 353,315 | |||||||
Marriott Vacation Club Owner Trust, Class A, Series 2012-1A, 2.51%, 05/20/30‡ | 1,331,270 | 1,356,961 | |||||||
MASTR Asset Securitization Trust, Class 4A5, Series 2003-5, 5.50%, 06/25/33 | 761,826 | 811,958 | |||||||
Mid-State Trust, Class A4, Series 1997-6, 7.79%, 07/01/35 | 444,977 | 479,140 | |||||||
New Residential Mortgage Loan Trust, Class A, Series 2014-1A, 3.75%, 01/25/54@‡ | 226,407 | 235,509 | |||||||
OneMain Financial Issuance Trust, Class A, Series 2014-1A, 2.43%, 06/18/24‡ | 330,000 | 329,993 | |||||||
Residential Funding Mortgage Securities II Home Loan Trust, Class AIIB, Series 2003-HS2, 0.40%, 06/25/28@ | 198,633 | 188,101 | |||||||
Santander Drive Auto Receivables Trust, Class A3, Series 2012-5, 0.83%, 12/15/16 | 152,306 | 152,454 | |||||||
Santander Drive Auto Receivables Trust, Class C, Series 2012-3, 3.01%, 04/16/18 | 260,000 | 266,678 | |||||||
Santander Drive Auto Receivables Trust, Class C, Series 2012-4, 2.94%, 12/15/17 | 360,000 | 369,013 | |||||||
Santander Drive Auto Receivables Trust, Class C, Series 2013-3, 1.81%, 04/15/19 | 600,000 | 604,044 | |||||||
Santander Drive Auto Receivables Trust, Class C, Series 2014-3, 2.13%, 08/17/20 | 600,000 | 601,140 | |||||||
Santander Drive Auto Receivables Trust, Class D, Series 2012-2, 3.87%, 02/15/18 | 300,000 | 312,436 | |||||||
Santander Drive Auto Receivables Trust, Class D, Series 2012-6, 2.52%, 09/17/18 | 350,000 | 358,233 | |||||||
Sierra Receivables Funding Co. LLC, Class A, Series 2014-1A, 2.07%, 03/20/30‡ | 456,277 | 457,408 | |||||||
Sierra Timeshare Receivables Funding LLC, Class B, Series 2012-2A, 3.42%, 03/20/29‡ | 273,745 | 280,250 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
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Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES — 22.7% (continued) | |||||||||
Silverleaf Finance XV LLC, Class A, Series 2012-D, 3.00%, 03/17/25‡ | $ | 286,545 | $ | 290,162 | |||||
SLM Private Education Loan Trust, Class A2A, Series 2013-B, 1.85%, 06/17/30‡ | 500,000 | 494,449 | |||||||
SLM Private Education Loan Trust, Class A2A, Series 2013-C, 2.94%, 10/15/31‡ | 270,000 | 278,449 | |||||||
SNAAC Auto Receivables Trust, Class C, Series 2014-1A, 2.21%, 01/15/20‡ | 330,000 | 331,155 | |||||||
Structured Asset Securities Corp., Class A3A, Series 2004-4XS, 5.00%, 02/25/34# | 742,731 | 789,478 | |||||||
Structured Asset Securities Corp. Assistance Loan Trust, Class A, Series 2003-AL1, 3.36%, 04/25/31‡ | 33,603 | 33,120 | |||||||
TAL Advantage V LLC, Class A, Series 2013-1A, 2.83%, 02/22/38‡ | 476,667 | 475,460 | |||||||
Tidewater Auto Receivables Trust, Class C, Series 2014-AA, 2.56%, 08/15/19‡ | 500,000 | 500,677 | |||||||
Trip Rail Master Funding LLC, Class A1, Series 2014-1A, 2.86%, 04/15/44‡ | 298,163 | 300,341 | |||||||
Trip Rail Master Funding LLC, Class A1A, Series 2011-1A, 4.37%, 07/15/41‡ | 406,735 | 429,923 | |||||||
Wells Fargo Mortgage Backed Securities, Class A1, Series 2003-G, 2.49%, 06/25/33@ | 39,568 | 40,549 | |||||||
Wells Fargo Mortgage Backed Securities, Class A1, Series 2004-U, 2.64%, 10/25/34@ | 597,756 | 602,733 | |||||||
Westgate Resorts LLC, Class A, Series 2012-2A, 3.00%, 01/20/25‡ | 273,701 | 275,672 | |||||||
Westlake Automobile Receivables Trust, Class C, Series 2014-1A, 1.70%, 11/15/19‡ | 500,000 | 500,572 | |||||||
Total Asset Backed Securities (Cost $34,956,120) | 35,092,327 | ||||||||
MORTGAGE BACKED SECURITIES — 31.8% | |||||||||
Commercial Mortgage Backed Securities — 12.5% | |||||||||
A10 Securitization LLC, Class A, Series 2013-1, 2.40%, 11/15/25‡ | 545,028 | 548,077 | |||||||
A10 Term Asset Financing LLC, Class A1, Series 2014-1, 1.72%, 04/15/33‡ | 250,000 | 249,983 | |||||||
BAMLL-DB Trust, Class A2FX, Series 2012-OSI, 3.35%, 04/13/29‡ | 274,872 | 284,920 | |||||||
Banc of America Commercial Mortgage Trust, Class A4, Series 2007-2, 5.78%, 04/10/49@ | 764,000 | 840,563 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Commercial Mortgage Backed Securities — 12.5% (continued) | |||||||||
Bayview Commercial Asset Trust, Class A3, Series 2008-1, 1.65%, 01/25/38@‡ | $ | 300,000 | $ | 286,473 | |||||
Bayview Financial Mortgage Pass-Through Trust, Class 1A2, Series 2006-A, 5.48%, 02/28/41# | 673,194 | 688,081 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW18, 5.70%, 06/11/50 | 970,000 | 1,086,120 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2005-PW10, 5.45%, 12/11/40@ | 571,000 | 603,180 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2007-PW17, 5.92%, 06/11/50@ | 280,000 | 313,567 | |||||||
Capital Auto Receivables Asset Trust/Ally, Class C, Series 2013-1, 1.74%, 10/22/18 | 415,000 | 415,995 | |||||||
CD Commercial Mortgage Trust, Class A4, Series 2007-CD4, 5.32%, 12/11/49 | 780,000 | 849,415 | |||||||
Citigroup Commercial Mortgage Trust, Class A1A, Series 2007-C6, 5.90%, 12/10/49@ | 1,260,687 | 1,397,702 | |||||||
Citigroup Commercial Mortgage Trust, Class A4, Series 2007-C6, 5.90%, 12/10/49@ | 140,000 | 154,857 | |||||||
Citigroup Commercial Mortgage Trust, Class AM, Series 2008-C7, 6.34%, 12/10/49@ | 530,000 | 595,590 | |||||||
Citigroup Commercial Mortgage Trust, Class MLSR, Series 2010-RR3, 5.81%, 06/14/50@‡ | 340,000 | 372,894 | |||||||
Commercial Mortgage Trust, Class AM, Series 2007-GG11, 5.87%, 12/10/49@ | 200,000 | 221,385 | |||||||
Countrywide Asset-Backed Certificates, Class AF6, Series 2004-12, 4.63%, 03/25/35@ | 373,567 | 380,578 | |||||||
Credit Suisse Commercial Mortgage Trust Series, Class A1A, Series 2007-C1, 5.36%, 02/15/40 | 540,401 | 580,746 | |||||||
Extended Stay America Trust, Class A17, Series 2013-ESH7, 2.30%, 12/05/31‡ | 550,000 | 534,215 | |||||||
GS Mortgage Securities Trust, Class A1A, Series 2007-GG10, 6.00%, 08/10/45@ | 693,937 | 763,544 | |||||||
GS Mortgage Securities Trust, Class A4, Series 2007-GG10, 6.00%, 08/10/45@ | 908,051 | 1,006,594 | |||||||
Heller Financial Commercial Mortgage Asset, Class G, Series 2000-PH1, 6.75%, 01/17/34‡ | 227,385 | 232,179 | |||||||
Hilton USA Trust, Class EFX, Series 2013-HLT, 5.22%, 11/05/30@‡ | 360,000 | 372,980 | |||||||
Irwin Home Equity Loan Trust, Class M1, Series 2003-A, 1.70%, 10/25/27@ | 549,713 | 539,255 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
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Investments | Principal | Value | |||||||
Commercial Mortgage Backed Securities — 12.5% (continued) | |||||||||
JPMorgan Mortgage Trust, Class 1A1, Series 2004-A3, 2.35%, 07/25/34@ | $ | 146,839 | $ | 150,176 | |||||
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 09/15/45@ | 682,178 | 767,928 | |||||||
Master Alternative Loan Trust, Class 6A1, Series 2004-4, 5.50%, 04/25/34 | 263,656 | 286,782 | |||||||
RASC Series Trust, Class AI6, Series 2004-KS2, 4.30%, 03/25/34@ | 222,527 | 225,642 | |||||||
Rialto Real Estate Fund LLC, Class A, Series 2013-LT2, 2.83%, 05/22/28‡ | 94,374 | 94,471 | |||||||
Santander Drive Auto Receivables Trust, Class D, Series 2013-1, 2.27%, 01/15/19 | 500,000 | 506,934 | |||||||
Santander Drive Auto Receivables Trust, Class D, Series 2013-5, 2.73%, 10/15/19 | 300,000 | 306,249 | |||||||
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-5, 2.41%, 05/25/34@ | 559,169 | 562,266 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class A3, Series 2007-C32, 5.93%, 06/15/49@ | 975,000 | 1,068,574 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2007-C31, 5.51%, 04/15/47 | 770,000 | 834,886 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class AM, Series 2007-C30, 5.38%, 12/15/43 | 870,000 | 947,578 | |||||||
Washington Mutual MSC Mortgage Pass-Through Certificates Series Trust, Class 2A1, Series 2003-AR4, 2.25%, 08/25/33@ | 266,429 | 267,078 | |||||||
Total Commercial Mortgage Backed Securities | 19,337,457 | ||||||||
Fixed Income — 13.5% | |||||||||
Bear Stearns ARM Trust, Class 12A3, Series 2004-10, 2.72%, 01/25/35@ | 491,032 | 493,570 | |||||||
Bear Stearns ARM Trust, Class 15A1, Series 2004-10, 2.62%, 01/25/35@ | 1,125,991 | 1,153,215 | |||||||
Bear Stearns ARM Trust, Class 21A1, Series 2004-1, 2.28%, 04/25/34@ | 546,433 | 548,037 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW17, 5.69%, 06/11/50@ | 650,000 | 724,126 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2006-PW13, 5.58%, 09/11/41@ | 800,000 | 869,535 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2007-PW15, 5.36%, 02/11/44 | 350,000 | 369,498 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
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Investments | Principal | Value | |||||||
Fixed Income — 13.5% (continued) | |||||||||
Citigroup Mortgage Loan Trust, Inc., Class A3, Series 2004-UST1, 2.21%, 08/25/34@ | $ | 531,123 | $ | 535,587 | |||||
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-8, 4.50%, 12/25/19 | 216,885 | 221,395 | |||||||
DBUBS Mortgage Trust, Class A2, Series 2011-LC3A, 3.64%, 08/10/44 | 1,050,000 | 1,103,102 | |||||||
GMACM Mortgage Loan Trust, Class 12A, Series 2004-AR1, 2.99%, 06/25/34@ | 619,835 | 637,206 | |||||||
GMACM Mortgage Loan Trust, Class A10, Series 2003-J7, 5.50%, 11/25/33 | 985,338 | 1,036,589 | |||||||
GSR Mortgage Loan Trust, Class 2A2, Series 2007-1F, 5.50%, 01/25/37 | 40,641 | 39,201 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class A3, Series 2006-LDP9, 5.34%, 05/15/47 | 745,000 | 808,971 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2007-LD12, 5.88%, 02/15/51@ | 1,490,000 | 1,652,777 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2006-LDP7, 6.06%, 04/15/45@ | 1,190,000 | 1,297,193 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2007-LDPX, 5.46%, 01/15/49@ | 275,000 | 293,284 | |||||||
LB Commercial Mortgage Trust, Class A4, Series 2007-C3, 6.09%, 07/15/44@ | 610,000 | 678,125 | |||||||
LB-UBS Commercial Mortgage Trust, Class A4, Series 2007-C6, 5.86%, 07/15/40@ | 1,226,735 | 1,316,659 | |||||||
MASTR Asset Securitization Trust, Class 4A1, Series 2004-6, 5.00%, 07/25/19 | 191,641 | 199,081 | |||||||
Merrill Lynch Mortgage Trust, Class AM, Series 2006-C1, 5.86%, 05/12/39@ | 660,000 | 709,484 | |||||||
Morgan Stanley Capital I Trust, Class A4, Series 2007-IQ14, 5.69%, 04/15/49@ | 800,000 | 883,134 | |||||||
RALI Series Trust, Class A3, Series 2003-QS22, 5.38%, 12/26/33 | 244,475 | 254,054 | |||||||
RALI Series Trust, Class A6, Series 2004-QS8, 5.50%, 06/25/34 | 273,246 | 282,956 | |||||||
Structured Asset Securities Corp., Class 2A, Series 2003-37A, 3.62%, 12/25/33@ | 410,817 | 414,979 | |||||||
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 1A1, Series 2003-33H, 5.50%, 10/25/33 | 573,754 | 588,962 | |||||||
Wachovia Bank Commercial Mortgage Trust Series, Class AM, Series 2007-C31, 5.59%, 04/15/47@ | 1,380,000 | 1,513,656 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Fixed Income — 13.5% (continued) | |||||||||
WaMu Mortgage Pass-Through Certificates, Class A1, Series 2003-AR6, 2.44%, 06/25/33@ | $ | 301,740 | $ | 305,818 | |||||
Wells Fargo Mortgage Backed Securities, Class 1A2, Series 2004-K, 2.62%, 07/25/34@ | 627,029 | 637,313 | |||||||
Wells Fargo Mortgage Backed Securities, Class 2A1, Series 2004-Z, 2.61%, 12/25/34@ | 280,520 | 286,726 | |||||||
Wells Fargo Mortgage Backed Securities, Class 2A12, Series 2004-K, 2.79%, 07/25/34@ | 234,824 | 237,623 | |||||||
Wells Fargo Mortgage Backed Securities, Class 5A1, Series 2003-J, 2.49%, 10/25/33@ | 281,959 | 285,982 | |||||||
Wells Fargo Mortgage Backed Securities, Class A1, Series 2004-A, 2.64%, 02/25/34@ | 345,058 | 352,656 | |||||||
Wells Fargo Mortgage Backed Securities, Class A5, Series 2006-16, 5.00%, 11/25/36 | 184,452 | 192,311 | |||||||
Total Fixed Income | 20,922,805 | ||||||||
Non-Agency Mortgage-Backed Securities — 1.7% | |||||||||
Alternative Loan Trust, Class 1A1, Series 2004-22CB, 6.00%, 10/25/34 | 221,583 | 234,057 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2006-PW14, 5.24%, 12/11/38 | 185,000 | 201,751 | |||||||
Commercial Mortgage Trust, Class A4, Series 2007-GG9, 5.44%, 03/10/39 | 1,100,000 | 1,201,408 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2006-LDP7, 6.06%, 04/15/45@ | 150,000 | 161,467 | |||||||
Morgan Stanley Capital I Trust, Class A4, Series 2006-IQ12, 5.33%, 12/15/43 | 484,863 | 522,855 | |||||||
Morgan Stanley Capital I Trust, Class AM, Series 2007-IQ14, 5.87%, 04/15/49@ | 226,000 | 241,199 | |||||||
Total Non-Agency Mortgage-Backed Securities | 2,562,737 | ||||||||
Residential Mortgage Backed Securities — 4.1% | |||||||||
Banc of America Funding Trust, Class 5A1, Series 2004-A, 2.36%, 07/20/34@ | 434,814 | 438,463 | |||||||
Banc of America Mortgage Trust, Class 6A3, Series 2004-7, 4.50%, 08/25/19 | 1,077,913 | 1,090,772 | |||||||
Citigroup Mortgage Loan Trust, Class A, Series 2014-A, 4.00%, 01/25/35@‡ | 223,011 | 233,587 | |||||||
Citigroup Mortgage Loan Trust, Inc., Class A2, Series 2003-UP3, 7.00%, 09/25/33 | 292,658 | 310,806 |
See accompanying Notes to Financial Statements.
128
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Schedule of Investments (continued)
June 30, 2014
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Investments | Principal | Value | |||||||
Residential Mortgage Backed Securities — 4.1% (continued) | |||||||||
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-AR8, 2.48%, 09/25/34@ | $ | 270,796 | $ | 274,241 | |||||
GSR Mortgage Loan Trust, Class 3A1, Series 2004-7, 2.09%, 06/25/34@ | 1,041,564 | 1,047,350 | |||||||
JPMorgan Mortgage Trust, Class 1A1, Series 2014-1, 4.00%, 01/25/44@‡ | 535,084 | 553,406 | |||||||
JPMorgan Mortgage Trust, Class 4A1, Series 2006-A2, 2.57%, 08/25/34@ | 222,358 | 222,869 | |||||||
Master Alternative Loan Trust, Class 1A1, Series 2007-1, 0.75%, 10/25/36@ | 452,891 | 436,685 | |||||||
Structured Adjustable Rate Mortgage Loan Trust, Class 3A1, Series 2004-4, 2.46%, 04/25/34@ | 242,792 | 243,752 | |||||||
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-4, 2.46%, 04/25/34@ | 472,095 | 474,553 | |||||||
Structured Adjustable Rate Mortgage Loan Trust, Class 6A, Series 2004-1, 2.44%, 02/25/34@ | 530,132 | 526,724 | |||||||
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 6A, Series 2003-34A, 2.65%, 11/25/33@ | 451,715 | 446,074 | |||||||
Total Residential Mortgage Backed Securities | 6,299,282 | ||||||||
Total Mortgage Backed Securities (Cost $49,529,737) | 49,122,281 | ||||||||
U.S. TREASURY NOTES — 4.2% | |||||||||
U.S. Treasury Note, 0.50%, 06/30/16 | 4,000,000 | 4,003,592 | |||||||
U.S. Treasury Note, 0.88%, 05/15/17(a) | 2,500,000 | 2,503,515 | |||||||
Total U.S. Treasury Notes (Cost $6,504,109) | 6,507,107 | ||||||||
U.S. GOVERNMENT AGENCY SECURITIES — 1.6% | |||||||||
Federal Home Loan Mortgage Corporation, Class J, Series 2012-4011, 4.00%, 12/15/41 | 910,817 | 958,942 | |||||||
Federal National Mortgage Association, Class NA, Series 2009-36, 5.00%, 06/25/37 | 218,384 | 234,596 | |||||||
Federal National Mortgage Association, Class PA, Series 2010-57, 4.50%, 12/25/38 | 361,597 | 371,890 | |||||||
Federal National Mortgage Association, Class PA, Series 2012-10, 4.00%, 11/25/41 | 697,640 | 734,857 |
See accompanying Notes to Financial Statements.
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Schedule of Investments (continued)
June 30, 2014
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Investments | Principal | Value | |||||||
U.S. GOVERNMENT AGENCY SECURITIES — 1.6% (continued) | |||||||||
Government National Mortgage Association, Class KA, Series 2011-140, 4.00%, 03/20/37 | $ | 244,167 | $ | 249,804 | |||||
Total U.S. Government Agency Securities (Cost $2,508,638) | 2,550,089 | ||||||||
TERM LOANS — 13.6% | |||||||||
Consumer Discretionary — 4.7% | |||||||||
Boyd Gaming Corp., 4.00%, 08/14/20@ | 310,923 | 312,245 | |||||||
Caesars Entertainment Corp., 9.50%, 10/31/16@ | 221,521 | 222,877 | |||||||
Caesars Entertainment Corp., 9.75%, 01/28/18@ | 56,000 | 55,341 | |||||||
CBAC Borrower LLC, 8.25%, 07/02/20@ | 200,000 | 207,750 | |||||||
Charter Communications Operating, LLC, 3.00%, 07/01/20@ | 418,942 | 413,096 | |||||||
Checkout Holding Corp., 4.50%, 04/09/21@ | 218,000 | 218,499 | |||||||
Chrysler Group LLC, 3.25%, 12/31/18@ | 329,175 | 328,592 | |||||||
CityCenter Holdings, LLC, 5.00%, 10/16/20@ | 113,658 | 114,640 | |||||||
CSC Holdings LLC, 2.65%, 04/17/20@ | 284,227 | 281,610 | |||||||
Hilton Worldwide Finance LLC, 3.50%, 10/26/20@ | 478,255 | 478,016 | |||||||
Landry's, Inc., 4.00%, 04/24/18@ | 210,693 | 211,681 | |||||||
Las Vegas Sands, LLC, 3.25%, 12/19/20@ | 542,836 | 543,276 | |||||||
Leslie's Poolmart, Inc., 4.25%, 10/16/19@ | 197,488 | 197,982 | |||||||
Libbey Glass, Inc., 3.75%, 04/09/21@ | 318,000 | 318,397 | |||||||
MGM Resorts International, 3.50%, 12/20/19@ | 359,561 | 358,887 | |||||||
Performance Sports Group Ltd. (Bauer Performance Sports Ltd.), 4.50%, 04/15/21 (Canada)@ | 142,464 | 142,865 | |||||||
Pinnacle Entertainment, Inc., 3.75%, 08/13/20@ | 299,531 | 300,623 | |||||||
PVH Corp., 3.25%, 02/13/20@ | 408,017 | 411,450 | |||||||
Scientific Games International, Inc., 4.25%, 10/18/20@ | 99,500 | 98,567 | |||||||
Seminole Hard Rock Entertainment, Inc., 3.50%, 05/14/20@ | 59,400 | 59,382 | |||||||
Seminole Tribe of Florida, Inc., 3.00%, 04/29/20@ | 412,097 | 412,012 | |||||||
Seven Sea Cruises S de RL LLC, 3.75%, 12/21/18@ | 306,909 | 307,100 | |||||||
SRAM LLC, 4.00%, 04/10/20@ | 209,266 | 207,762 | |||||||
SRAM LLC, 5.25%, 04/10/20@ | 1,593 | 1,582 | |||||||
Tribune Company, 4.00%, 12/27/20@ | 289,844 | 290,840 | |||||||
Univision Communications, Inc., 4.00%, 03/01/20@ | 633,533 | 634,097 | |||||||
Zuffa LLC, 3.75%, 02/25/20@ | 221,626 | 222,250 | |||||||
Total Consumer Discretionary | 7,351,419 |
See accompanying Notes to Financial Statements.
130
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Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Consumer Staples — 0.9% | ||||||||
ARAMARK Corp., 3.25%, 09/07/19@ | $ | 533,663 | $ | 530,727 | ||||
Darling International, Inc., 3.25%, 01/06/21@ | 418,950 | 419,599 | ||||||
Hostess Brands, Inc., 6.75%, 04/09/20@ | 224,438 | 233,134 | ||||||
Rite Aid Corp., 3.50%, 02/21/20@ | 223,313 | 223,382 | ||||||
Total Consumer Staples | 1,406,842 | |||||||
Energy — 0.5% | ||||||||
Fieldwood Energy LLC, 3.88%, 09/28/18@ | 199,928 | 200,845 | ||||||
Seadrill Operating LP, 0.00%, 02/21/21@(b) | 326,000 | 324,722 | ||||||
Seadrill Operating LP, 4.00%, 02/21/21@ | 178,105 | 177,407 | ||||||
Total Energy | 702,974 | |||||||
Financials — 0.6% | ||||||||
Altisource Solutions Sarl, 0.00%, 12/09/20 (Luxembourg)@(b) | 380,000 | 380,633 | ||||||
Delos Finance Sarl, 3.50%, 03/06/21@ | 468,000 | 468,536 | ||||||
TransUnion LLC, 4.00%, 04/09/21@ | 145,635 | 145,921 | ||||||
Total Financials | 995,090 | |||||||
Health Care — 1.2% | ||||||||
Accellent, Inc., 4.50%, 03/12/21@ | 209,475 | 209,083 | ||||||
Davita, Inc., 3.50%, 06/24/21@ | 109,000 | 109,626 | ||||||
Endo Luxemburg Finance I Co. Sarl, 3.25%, 03/01/21@ | 299,250 | 299,219 | ||||||
Hologic, Inc., 3.25%, 08/01/19@ | 305,000 | 305,166 | ||||||
IASIS Healthcare LLC, 4.50%, 05/03/18@ | 221,625 | 222,789 | ||||||
RPI Finance Trust, 3.25%, 11/09/18@ | 415,152 | 416,275 | ||||||
Valeant Pharmaceuticals International, Inc., 3.75%, 02/13/19 (Canada)@ | 299,239 | 299,707 | ||||||
Total Health Care | 1,861,865 | |||||||
Industrials — 1.7% | ||||||||
Air Canada, 5.50%, 09/26/19@ | 235,000 | 240,581 | ||||||
Allegion Public Limited Co., 3.00%, 09/25/20@ | 418,947 | 419,735 | ||||||
Alliant Techsystems, Inc., 3.50%, 11/02/20@ | 334,737 | 335,940 | ||||||
Alliant Techsystems, Inc., 5.00%, 11/02/20@ | 84,210 | 84,514 | ||||||
Avis Budget Car Rental LLC, 3.00%, 03/15/19@ | 616,439 | 616,634 | ||||||
Doncasters Group Ltd., 4.50%, 04/09/20@ | 271,564 | 273,007 | ||||||
Filtration Group, Inc., 4.50%, 11/20/20@ | 52,735 | 53,229 |
See accompanying Notes to Financial Statements.
131
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Industrials — 1.7% (continued) | |||||||||
McJunkin Red Man Corp., 5.00%, 11/08/19@ | $ | 85,355 | $ | 86,022 | |||||
Nortek, Inc., 3.75%, 10/30/20@ | 285,000 | 285,888 | |||||||
TransDigm, Inc., 3.75%, 06/04/21@ | 175,000 | 174,467 | |||||||
Total Industrials | 2,570,017 | ||||||||
Information Technology — 2.3% | |||||||||
Alcatel-Lucent USA, Inc., 4.50%, 01/30/19@ | 197,494 | 197,910 | |||||||
Avago Technologies Cayman Ltd., 3.75%, 05/06/21 (Cayman Islands)@ | 718,000 | 721,059 | |||||||
Blue Coat Systems, Inc., 4.00%, 05/31/19@ | 340,395 | 341,175 | |||||||
CDW LLC, 3.25%, 04/30/20@ | 345,935 | 342,822 | |||||||
Custom Sensors & Technologies, Inc., 0.00%, 06/18/21@(b) | 29,000 | 29,227 | |||||||
First Data Corp., 4.15%, 03/23/18@ | 250,000 | 250,719 | |||||||
Genpact International, Inc., 3.50%, 08/30/19@ | 418,942 | 421,456 | |||||||
Go Daddy Operating Co. LLC, 4.75%, 05/13/21@ | 84,839 | 84,574 | |||||||
Infor US, Inc., 3.75%, 06/03/20@ | 248,750 | 247,455 | |||||||
Interactive Data Corp., 4.75%, 05/02/21@ | 296,887 | 299,858 | |||||||
ION Trading Technologies Sarl, 4.25%, 06/10/21@ | 171,792 | 172,823 | |||||||
Kronos Inc., 4.50%, 10/30/19@ | 4,949 | 4,995 | |||||||
Rovi Solutions Corp., 0.00%, 07/02/21@(b) | 92,000 | 92,259 | |||||||
Spansion LLC, 3.75%, 12/19/19@ | 122,078 | 122,586 | |||||||
Sungard Availability Services Capital, Inc., 6.00%, 03/29/19@ | 137,655 | 137,010 | |||||||
Vantiv, LLC, 3.75%, 06/13/21@ | 69,000 | 69,690 | |||||||
Total Information Technology | 3,535,618 | ||||||||
Materials — 0.6% | |||||||||
AZ Chem US, Inc., 0.00%, 06/11/21@(b) | 98,000 | 99,052 | |||||||
FMG Resources (August 2006) Pty LTD (FMG America Finance, Inc.), 3.75%, 06/28/19@ | 640,578 | 641,808 | |||||||
Ineos US Finance LLC, 3.75%, 05/04/18@ | 197,748 | 197,551 | |||||||
Total Materials | 938,411 |
See accompanying Notes to Financial Statements.
132
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal/ Shares | Value | ||||||
Telecommunication Services — 0.8% | ||||||||
Crown Castle Operating Co., 3.00%, 01/31/21@ | $ | 418,947 | $ | 419,414 | ||||
Level 3 Financing, Inc., 4.00%, 01/15/20@ | 225,000 | 225,516 | ||||||
Windstream Corp., 3.50%, 01/23/20@ | 565,752 | 565,664 | ||||||
Total Telecommunication Services | 1,210,594 | |||||||
Utilities — 0.3% | ||||||||
NRG Energy, Inc., 2.75%, 07/01/18@ | 473,258 | 472,962 | ||||||
Total Term Loans (Cost $21,039,002) | 21,045,792 | |||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 0.5% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $845,961) | 845,961 | 845,961 | ||||||
Total Investments — 100.0% (Cost $154,332,631) | 154,733,606 | |||||||
Other Assets in Excess of Liabilities — 0.0%† | 77,165 | |||||||
Net Assets — 100.0% | $ | 154,810,771 |
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 June 30, 2014. |
# | Represents step coupon bond. Rate shown reflects the rate in effect as of June 30, 2014. |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $3,031,357; the aggregate market value of the collateral held by the fund is $3,070,939. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $2,224,978. |
(b) | This Loan will settle after June 30, 2014 at which time the interest rate will be determined. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
133
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Asset Backed Securities | 22.7 | % | ||
Commercial Mortgage Backed Securities | 12.5 | |||
Consumer Discretionary | 7.0 | |||
Consumer Staples | 1.2 | |||
Energy | 1.9 | |||
Financials | 12.6 | |||
Fixed Income | 13.5 | |||
Foreign Government | 0.2 | |||
Health Care | 2.2 | |||
Industrials | 6.9 | |||
Information Technology | 2.7 | |||
Materials | 1.2 | |||
Non-Agency Mortgage-Backed Securities | 1.7 | |||
Residential Mortgage Backed Securities | 4.1 | |||
Telecommunication Services | 2.3 | |||
U.S. Government Agency Securities | 1.6 | |||
U.S. Treasury Notes | 4.2 | |||
Utilities | 1.0 | |||
Money Market Fund | 0.5 | |||
Total Investments | 100.0 | |||
Other Assets in Excess of Liabilities | 0.0 | † | ||
Net Assets | 100.0 | % |
† | Less than 0.05%. |
See accompanying Notes to Financial Statements.
134
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
CORPORATE BONDS — 55.1% | ||||||||
Advertising — 4.2% | ||||||||
Affinion Group, Inc., 7.88%, 12/15/18(a) | $ | 17,254,000 | $ | 15,744,275 | ||||
Sitel LLC/Sitel Finance Corp., 11.00%, 08/01/17‡ | 11,960,000 | 12,797,200 | ||||||
Sitel LLC/Sitel Finance Corp., 11.50%, 04/01/18(a) | 16,575,000 | 16,409,250 | ||||||
Total Advertising | 44,950,725 | |||||||
Aerospace/Defense — 0.7% | ||||||||
Erickson Air-Crane, Inc., 8.25%, 05/01/20(a) | 6,795,000 | 7,015,837 | ||||||
Agriculture — 1.1% | ||||||||
Southern States Cooperative, Inc., 10.00%, 08/15/21‡ | 11,135,000 | 11,357,700 | ||||||
Auto Manufacturers — 1.3% | ||||||||
Navistar International Corp., 8.25%, 11/01/21(a) | 13,651,000 | 14,299,423 | ||||||
Auto Parts & Equipment — 1.6% | ||||||||
UCI International, Inc., 8.63%, 02/15/19 | 17,765,000 | 16,965,575 | ||||||
Banks — 1.5% | ||||||||
Creditcorp, 12.00%, 07/15/18‡ | 15,630,000 | 16,489,650 | ||||||
Beverages — 1.7% | ||||||||
Innovation Ventures LLC/Innovation Ventures Finance Corp., 9.50%, 08/15/19‡(a) | 18,775,000 | 18,587,250 | ||||||
Coal — 3.1% | ||||||||
Arch Coal, Inc., 9.88%, 06/15/19(a) | 22,938,000 | 19,669,335 | ||||||
Murray Energy Corp., 8.63%, 06/15/21‡ | 12,750,000 | 13,865,625 | ||||||
Total Coal | 33,534,960 | |||||||
Commercial Services — 5.3% | ||||||||
DynCorp International, Inc., 10.38%, 07/01/17(a) | 12,919,000 | 13,516,504 | ||||||
Harland Clarke Holdings Corp., 9.25%, 03/01/21‡ | 15,890,000 | 16,704,362 | ||||||
Speedy Cash Intermediate Holdings Corp., 10.75%, 05/15/18‡(a) | 16,519,000 | 16,849,380 | ||||||
StoneMor Partners LP/Cornerstone Family Services of WV, 7.88%, 06/01/21‡ | 9,800,000 | 10,339,000 | ||||||
Total Commercial Services | 57,409,246 |
See accompanying Notes to Financial Statements.
135
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Diversified Financial Services — 2.9% | ||||||||
CNG Holdings, Inc., 9.38%, 05/15/20‡ | $ | 20,454,000 | $ | 17,206,927 | ||||
GFI Group, Inc., 10.38%, 07/19/18 | 12,594,000 | 13,727,460 | ||||||
Total Diversified Financial Services | 30,934,387 | |||||||
Electrical Components & Equipment — 0.7% | ||||||||
Artesyn Escrow, Inc., 9.75%, 10/15/20‡ | 7,470,000 | 7,413,975 | ||||||
Electronics — 1.1% | ||||||||
KEMET Corp., 10.50%, 05/01/18 | 11,645,000 | 12,372,813 | ||||||
Environmental Control — 1.7% | ||||||||
Nuverra Environmental Solutions, Inc., 9.88%, 04/15/18(a) | 17,335,000 | 18,115,075 | ||||||
Food — 1.6% | ||||||||
American Seafoods Group LLC/American Seafoods Finance, Inc., 10.75%, 05/15/16‡(a) | 16,845,000 | 16,887,112 | ||||||
Forest Products & Paper — 0.8% | ||||||||
Verso Paper Holdings LLC/Verso Paper, Inc., 11.75%, 01/15/19(a) | 7,825,000 | 8,274,938 | ||||||
Healthcare – Services — 2.6% | ||||||||
21st Century Oncology, Inc., 8.88%, 01/15/17 | 11,938,000 | 12,370,752 | ||||||
Vantage Oncology LLC/Vantage Oncology Finance Co., 9.50%, 06/15/17‡ | 16,165,000 | 16,084,175 | ||||||
Total Healthcare – Services | 28,454,927 | |||||||
Leisure Time — 1.5% | ||||||||
ICON Health & Fitness, Inc., 11.88%, 10/15/16‡(a) | 16,600,000 | 16,413,250 | ||||||
Metal Fabricate/Hardware — 1.2% | ||||||||
American Piping Products, Inc., 12.88%, 11/15/17‡ | 11,785,000 | 13,096,081 | ||||||
Miscellaneous Manufacturing — 2.0% | ||||||||
Iracore International Holdings, Inc., 9.50%, 06/01/18‡ | 14,895,000 | 15,639,750 | ||||||
J.B. Poindexter & Co., Inc., 9.00%, 04/01/22‡ | 5,493,000 | 6,138,428 | ||||||
Total Miscellaneous Manufacturing | 21,778,178 | |||||||
Oil & Gas — 6.1% | ||||||||
Endeavour International Corp., 12.00%, 03/01/18(a) | 17,756,000 | 16,335,520 | ||||||
Quicksilver Resources, Inc., 9.13%, 08/15/19(a) | 16,925,000 | 15,782,562 |
See accompanying Notes to Financial Statements.
136
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Oil & Gas — 6.1% (continued) | |||||||||
Talos Production LLC/Talos Production Finance, Inc., 9.75%, 02/15/18‡ | $ | 15,650,000 | $ | 16,667,250 | |||||
Venoco, Inc., 8.88%, 02/15/19 | 16,725,000 | 16,348,688 | |||||||
Total Oil & Gas | 65,134,020 | ||||||||
Oil & Gas Services — 3.0% | |||||||||
Forbes Energy Services Ltd., 9.00%, 06/15/19 | 14,897,000 | 15,530,123 | |||||||
Seitel, Inc., 9.50%, 04/15/19(a) | 15,440,000 | 16,675,200 | |||||||
Total Oil & Gas Services | 32,205,323 | ||||||||
Pharmaceuticals — 2.9% | |||||||||
BioScrip, Inc., 8.88%, 02/15/21‡ | 14,520,000 | 15,191,550 | |||||||
Lantheus Medical Imaging, Inc., 9.75%, 05/15/17 | 15,495,000 | 16,153,537 | |||||||
Total Pharmaceuticals | 31,345,087 | ||||||||
Retail — 0.5% | |||||||||
Ferrellgas Partners LP, 8.63%, 06/15/20 | 4,552,000 | 4,882,020 | |||||||
Telecommunications — 5.5% | |||||||||
EarthLink Holdings Corp., 7.38%, 06/01/20 | 4,230,000 | 4,531,388 | |||||||
EarthLink Holdings Corp., 8.88%, 05/15/19(a) | 16,450,000 | 16,532,250 | |||||||
FairPoint Communications, Inc., 8.75%, 08/15/19‡ | 5,150,000 | 5,574,875 | |||||||
Frontier Communications Corp., 7.63%, 04/15/24(a) | 15,645,000 | 16,916,156 | |||||||
Trilogy International Partners LLC/Trilogy International Finance, Inc., 10.25%, 08/15/16‡ | 14,740,000 | 15,219,050 | |||||||
Total Telecommunications | 58,773,719 | ||||||||
Transportation — 0.5% | |||||||||
Era Group, Inc., 7.75%, 12/15/22 | 5,415,000 | 5,780,512 | |||||||
Total Corporate Bonds (Cost $584,172,818) | 592,471,783 | ||||||||
FOREIGN BONDS — 18.2% | |||||||||
Airlines — 2.5% | |||||||||
Air Canada, 7.75%, 04/15/21 (Canada)‡ | 16,650,000 | 17,732,250 | |||||||
Air Canada, 8.75%, 04/01/20 (Canada)‡ | 8,475,000 | 9,534,375 | |||||||
Total Airlines | 27,266,625 |
See accompanying Notes to Financial Statements.
137
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal/ Shares | Value | ||||||
Beverages — 1.6% | ||||||||
CEDC Finance Corp. International, Inc., 10.38%, 04/30/18 (Poland)# | $ | 18,213,419 | $ | 17,179,443 | ||||
Environmental Control — 2.3% | ||||||||
Tervita Corp., 8.00%, 11/15/18 (Canada)‡ | 6,685,000 | 6,985,825 | ||||||
Tervita Corp., 10.88%, 02/15/18 (Canada)‡(a) | 17,605,000 | 17,847,069 | ||||||
Total Environmental Control | 24,832,894 | |||||||
Mining — 2.7% | ||||||||
HudBay Minerals, Inc., 9.50%, 10/01/20 (Canada) | 10,956,000 | 12,106,380 | ||||||
IAMGOLD Corp., 6.75%, 10/01/20 (Canada)‡ | 18,530,000 | 17,232,900 | ||||||
Total Mining | 29,339,280 | |||||||
Miscellaneous Manufacturing — 0.8% | ||||||||
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc., 8.75%, 02/01/19 (Luxembourg) | 7,995,000 | 8,634,600 | ||||||
Oil & Gas — 3.0% | ||||||||
Connacher Oil And Gas Ltd., 8.50%, 08/01/19 (Canada)‡(a) | 19,450,000 | 15,705,875 | ||||||
Lightstream Resources Ltd., 8.63%, 02/01/20 (Canada)‡ | 15,435,000 | 16,283,925 | ||||||
Total Oil & Gas | 31,989,800 | |||||||
Telecommunications — 1.5% | ||||||||
NII International Telecom SCA, 11.38%, 08/15/19 (Luxembourg)‡(a) | 18,455,000 | 16,471,088 | ||||||
Transportation — 3.8% | ||||||||
CHC Helicopter SA, 9.25%, 10/15/20 (Luxembourg) | 223,740 | 244,995 | ||||||
CHC Helicopter SA, 9.38%, 06/01/21 (Luxembourg)(a) | 13,645,000 | 14,634,262 | ||||||
Global Ship Lease, Inc., 10.00%, 04/01/19 (Marshall Islands)‡ | 14,950,000 | 16,146,000 | ||||||
Navios Maritime Holdings, Inc., 8.13%, 02/15/19 (Marshall Islands)(a) | 9,482,000 | 10,015,363 | ||||||
Total Transportation | �� | 41,040,620 | ||||||
Total Foreign Bonds (Cost $188,214,186) | 196,754,350 |
See accompanying Notes to Financial Statements.
138
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal/ Shares | Value | ||||||
COMMON STOCKS — 8.4% | ||||||||
Oil & Gas — 5.3% | ||||||||
Calumet Specialty Products Partners LP | $ | 502,134 | $ | 15,967,861 | ||||
Canadian Oil Sands Ltd. (Canada) | 698,034 | 15,817,451 | ||||||
Long Run Exploration Ltd. (Canada)(a) | 1,346,917 | 7,122,362 | ||||||
Surge Energy, Inc. (Canada) | 2,483,344 | 18,187,515 | ||||||
Total Oil & Gas | 57,095,189 | |||||||
Pipelines — 1.6% | ||||||||
Niska Gas Storage Partners LLC, Class U | 1,089,388 | 16,765,681 | ||||||
Retail — 1.5% | ||||||||
Ferrellgas Partners LP(a) | 593,335 | 16,233,646 | ||||||
Total Common Stocks (Cost $80,090,910) | 90,094,516 | |||||||
TERM LOANS — 15.1% | ||||||||
Agriculture — 0.6% | ||||||||
North Atlantic Trading Co., Inc., 6.84%, 01/13/20 | 5,935,588 | 5,987,526 | ||||||
North Atlantic Trading Co., Inc., 8.75%, 01/13/20 | 35,294 | 35,603 | ||||||
Total Agriculture | 6,023,129 | |||||||
Apparel — 1.4% | ||||||||
SK Spice Sarl, 9.50%, 09/30/18 (Luxembourg) | 14,673,041 | 14,911,478 | ||||||
Chemicals — 1.1% | ||||||||
American Pacific Corp., 7.00%, 02/27/19 | 11,970,000 | 12,149,550 | ||||||
Food — 1.1% | ||||||||
Shearer's Foods LLC, 06/30/22 | 12,000,000 | 12,135,000 | ||||||
Forest Products & Paper — 1.7% | ||||||||
NewPage Corp., 9.50%, 02/05/21 | 18,000,000 | 18,108,720 | ||||||
Healthcare – Services — 3.2% | ||||||||
Aurora Diagnostics LLC, 6.75%, 05/26/16 | 17,295,556 | 16,928,025 | ||||||
Radnet Management, Inc., 8.00%, 03/19/21 | 17,300,000 | 17,429,750 | ||||||
Total Healthcare – Services | 34,357,775 |
See accompanying Notes to Financial Statements.
139
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal/ Shares | Value | ||||||
Oil & Gas — 1.4% | ||||||||
Teine Energy Ltd, 7.50%, 05/17/19 (Canada) | $ | 14,792,390 | $ | 14,995,785 | ||||
Software — 1.4% | ||||||||
Greenway Medical Technologies, 9.25%, 11/04/21 | 14,753,846 | 14,882,942 | ||||||
Telecommunications — 1.6% | ||||||||
Global Tel*Link Corp, 9.00%, 11/20/20 | 17,375,000 | 17,317,054 | ||||||
Transportation — 1.6% | ||||||||
YRC Worldwide, Inc., 8.00%, 02/12/19 | 16,919,987 | 17,279,537 | ||||||
Total Term Loans (Cost $160,949,709) | 162,160,970 | |||||||
MONEY MARKET FUND — 1.9% | ||||||||
BlackRock Liquidity Funds TempFund Portfolio – Dollar Class, 0.02%(b) (Cost $20,161,488) | 20,161,488 | 20,161,488 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 15.4% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $166,306,561) | 166,306,561 | 166,306,561 | ||||||
Total Investments — 114.1% (Cost $1,199,895,672) | 1,227,949,668 | |||||||
Liabilities in Excess of Other Assets — (14.1%) | (151,953,078 | ) | ||||||
Net Assets — 100.0% | $ | 1,075,996,590 |
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 June 30, 2014. |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $162,332,391; the aggregate market value of the collateral held by the fund is $166,306,561. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
140
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 4.2 | % | ||
Aerospace/Defense | 0.7 | |||
Agriculture | 1.7 | |||
Airlines | 2.5 | |||
Apparel | 1.4 | |||
Auto Manufacturers | 1.3 | |||
Auto Parts & Equipment | 1.6 | |||
Banks | 1.5 | |||
Beverages | 3.3 | |||
Chemicals | 1.1 | |||
Coal | 3.1 | |||
Commercial Services | 5.3 | |||
Diversified Financial Services | 2.9 | |||
Electrical Components & Equipment | 0.7 | |||
Electronics | 1.1 | |||
Environmental Control | 4.0 | |||
Food | 2.7 | |||
Forest Products & Paper | 2.5 | |||
Healthcare – Services | 5.8 | |||
Leisure Time | 1.5 | |||
Metal Fabricate/Hardware | 1.2 | |||
Mining | 2.7 | |||
Miscellaneous Manufacturing | 2.8 | |||
Oil & Gas | 15.8 | |||
Oil & Gas Services | 3.0 | |||
Pharmaceuticals | 2.9 | |||
Pipelines | 1.6 | |||
Retail | 2.0 | |||
Software | 1.4 | |||
Telecommunications | 8.6 | |||
Transportation | 5.9 | |||
Money Market Fund | 17.3 | |||
Total Investments | 114.1 | |||
Liabilities in Excess of Other Assets | (14.1 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
141
ADVISORSHARES PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 57.3% | ||||||||
Banks — 4.2% | ||||||||
Royal Bank of Canada (Canada)(a) | 1,465 | $ | 104,645 | |||||
Wells Fargo & Co. | 2,101 | 110,429 | ||||||
Total Banks | 215,074 | |||||||
Coal — 3.3% | ||||||||
Alliance Resource Partners, LP | 2,404 | 112,147 | ||||||
Peabody Energy Corp. | 3,500 | 57,225 | ||||||
Total Coal | 169,372 | |||||||
Commercial Services — 3.0% | ||||||||
Apollo Education Group, Inc., Class A* | 4,865 | 152,031 | ||||||
Electric — 2.0% | ||||||||
MDU Resources Group, Inc. | 2,896 | 101,650 | ||||||
Holding Companies – Diversified — 1.6% | ||||||||
Leucadia National Corp. | 3,147 | 82,514 | ||||||
Insurance — 4.8% | ||||||||
American International Group, Inc. | 2,201 | 120,130 | ||||||
Aon PLC (United Kingdom) | 1,353 | 121,892 | ||||||
Total Insurance | 242,022 | |||||||
Iron/Steel — 2.1% | ||||||||
Reliance Steel & Aluminum Co. | 1,411 | 104,005 | ||||||
Mining — 9.0% | ||||||||
Alamos Gold, Inc. (Canada) | 5,071 | 51,420 | ||||||
Franco-Nevada Corp. (Canada) | 2,069 | 118,637 | ||||||
Royal Gold, Inc. | 1,687 | 128,414 | ||||||
Sandstorm Gold Ltd. (Canada)* | 13,932 | 96,409 | ||||||
Stillwater Mining Co.* | 3,503 | 61,478 | ||||||
Total Mining | 456,358 | |||||||
Oil & Gas — 8.2% | ||||||||
Apache Corp. | 1,182 | 118,933 | ||||||
Enerplus Corp. (Canada)(a) | 6,411 | 161,429 |
See accompanying Notes to Financial Statements.
142
ADVISORSHARES PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Oil & Gas — 8.2% (Continued) | ||||||||
Whiting Petroleum Corp.* | 1,712 | $ | 137,388 | |||||
Total Oil & Gas | 417,750 | |||||||
Pipelines — 3.6% | ||||||||
Kinder Morgan, Inc. | 2,241 | 81,259 | ||||||
Spectra Energy Corp. | 2,421 | 102,844 | ||||||
Total Pipelines | 184,103 | |||||||
Real Estate Investment Trusts — 2.1% | ||||||||
Senior Housing Properties Trust | 4,422 | 107,410 | ||||||
Semiconductors — 2.7% | ||||||||
Intel Corp. | 4,445 | 137,350 | ||||||
Software — 2.2% | ||||||||
Microsoft Corp. | 2,625 | 109,462 | ||||||
Telecommunications — 4.0% | ||||||||
Cisco Systems, Inc. | 4,636 | 115,204 | ||||||
Verizon Communications, Inc. | 1,748 | 85,530 | ||||||
Total Telecommunications | 200,734 | |||||||
Transportation — 4.5% | ||||||||
Navios Maritime Partners, LP (Greece) | 6,203 | 120,586 | ||||||
Union Pacific Corp. | 1,058 | 105,536 | ||||||
Total Transportation | 226,122 | |||||||
Total Common Stocks (Cost $2,373,296) | 2,905,957 | |||||||
EXCHANGE TRADED FUNDS — 30.6% | ||||||||
Commodity Fund — 4.8% | ||||||||
PowerShares DB Agriculture Fund*(a) | 4,554 | 125,053 | ||||||
PowerShares DB Commodity Index Tracking Fund* | 4,554 | 121,045 | ||||||
Total Commodity Fund | 246,098 | |||||||
Debt Fund — 19.6% | ||||||||
AdvisorShares Peritus High Yield ETF† | 4,399 | 234,467 | ||||||
Guggenheim BulletShares 2015 High Yield Corporate Bond ETF | 8,289 | 223,156 | ||||||
iShares International Preferred Stock ETF | 3,941 | 99,353 |
See accompanying Notes to Financial Statements.
143
ADVISORSHARES PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Debt Fund — 19.6% (Continued) | ||||||||
PIMCO Enhanced Short Maturity ETF | 438 | $ | 44,413 | |||||
PowerShares Senior Loan Portfolio(a) | 8,842 | 219,901 | ||||||
SPDR Barclays Long Term Treasury ETF | 2,600 | 172,380 | ||||||
Total Debt Fund | 993,670 | |||||||
Equity Fund — 6.2% | ||||||||
Global X Silver Miners ETF | 12,400 | 175,832 | ||||||
SPDR S&P International Dividend ETF(a) | 2,700 | 138,510 | ||||||
Total Equity Fund | 314,342 | |||||||
Total Exchange Traded Funds (Cost $1,533,991) | 1,554,110 | |||||||
MONEY MARKET FUND — 11.4% | ||||||||
Dreyfus Government Cash Management – Investor Shares, 0.01%(b) (Cost $579,080) | 579,080 | 579,080 | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 8.5% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $429,413) | 429,413 | 429,413 | ||||||
Total Investments — 107.8% (Cost $4,915,780) | 5,468,560 | |||||||
Liabilities in Excess of Other Assets — (7.8)% | (394,324 | ) | ||||||
Net Assets — 100.0% | $ | 5,074,236 |
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 $418,770; the aggregate market value of the collateral held by the fund is $429,413. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
144
ADVISORSHARES PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Banks | 4.2 | % | ||
Coal | 3.3 | |||
Commercial Services | 3.0 | |||
Commodity Fund | 4.8 | |||
Debt Fund | 19.6 | |||
Electric | 2.0 | |||
Equity Fund | 6.2 | |||
Holding Companies – Diversified | 1.6 | |||
Insurance | 4.8 | |||
Iron/Steel | 2.1 | |||
Mining | 9.0 | |||
Oil & Gas | 8.2 | |||
Pipelines | 3.6 | |||
Real Estate Investment Trusts | 2.1 | |||
Semiconductors | 2.7 | |||
Software | 2.2 | |||
Telecommunications | 4.0 | |||
Transportation | 4.5 | |||
Money Market Fund | 19.9 | |||
Total Investments | 107.8 | |||
Liabilities in Excess of Other Assets | (7.8 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
145
ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED NOTE — 0.7% | ||||||||
Equity Fund — 0.7% | ||||||||
JPMorgan Alerian MLP Index ETN (Cost $50,066) | 1,035 | $ | 54,214 | |||||
EXCHANGE TRADED FUNDS — 94.7% | ||||||||
Commodity Fund — 0.7% | ||||||||
SPDR Gold Shares* | 442 | 56,593 | ||||||
Currency Fund — 0.4% | ||||||||
WisdomTree Indian Rupee Strategy Fund* | 1,512 | 32,342 | ||||||
Debt Fund — 26.5% | ||||||||
AdvisorShares Sage Core Reserves ETF†(a) | 4,200 | 419,202 | ||||||
Guggenheim Enhanced Short Duration ETF(a) | 8,346 | 419,971 | ||||||
iShares Short Treasury Bond ETF(a) | 4,908 | 541,205 | ||||||
SPDR Barclays 1 – 3 Month T-Bill ETF(a)* | 11,786 | 539,327 | ||||||
SPDR SSgA Ultra Short Term Bond ETF | 8,669 | 347,454 | ||||||
Total Debt Fund | 2,267,159 | |||||||
Equity Fund — 67.1% | ||||||||
EGShares India Consumer ETF* | 301 | 8,467 | ||||||
EGShares India Infrastructure Index Fund | 242 | 3,589 | ||||||
EGShares India Small Cap ETF | 1,093 | 19,029 | ||||||
First Trust Dow Jones Internet Index Fund* | 2,684 | 159,913 | ||||||
First Trust Europe AlphaDEX Fund | 393 | 13,633 | ||||||
First Trust ISE Cloud Computing Index Fund | 345 | 9,332 | ||||||
Global X Brazil Consumer ETF | 3,517 | 62,145 | ||||||
Global X Brazil Financials ETF | 418 | 5,012 | ||||||
Global X Brazil Mid Cap ETF | 4,270 | 57,816 | ||||||
Global X Junior MLP ETF | 428 | 7,618 | ||||||
Global X Nigeria Index ETF | 1,255 | 19,842 | ||||||
Guggenheim Canadian Energy Income ETF | 502 | 8,755 | ||||||
Guggenheim China Small Cap Index ETF | 11,554 | 291,276 | ||||||
Guggenheim China Technology ETF | 2,339 | 84,906 | ||||||
Guggenheim Raymond James SB-1 Equity ETF | 3,051 | 107,822 | ||||||
Guggenheim S&P 500 Equal Weight Consumer Discretionary ETF | 283 | 22,832 | ||||||
Guggenheim S&P 500 Equal Weight Energy ETF | 441 | 40,841 |
See accompanying Notes to Financial Statements.
146
ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Equity Fund — 67.1% (continued) | |||||||||
Guggenheim S&P 500 Equal Weight ETF | 6,407 | $ | 491,481 | ||||||
Guggenheim S&P 500 Equal Weight Financials ETF | 2,850 | 118,987 | |||||||
Guggenheim S&P 500 Equal Weight Healthcare ETF | 1,385 | 171,006 | |||||||
Guggenheim S&P 500 Equal Weight Technology ETF | 757 | 63,429 | |||||||
iShares Microcap ETF | 1,495 | 113,799 | |||||||
iShares MSCI EAFE ETF | 1,334 | 91,206 | |||||||
iShares MSCI Emerging Markets ETF | 1,119 | 48,374 | |||||||
iShares MSCI Emerging Markets Latin America ETF | 740 | 33,589 | |||||||
iShares MSCI Frontier 100 ETF | 2,638 | 95,153 | |||||||
iShares MSCI Germany Small-Cap ETF, Class C | 1,180 | 50,893 | |||||||
iShares MSCI Hong Kong ETF | 86 | 1,796 | |||||||
iShares MSCI Hong Kong Small-Cap ETF | 3,284 | 97,075 | |||||||
iShares MSCI India Small-Cap ETF | 1,066 | 34,059 | |||||||
iShares MSCI Israel Capped ETF | 161 | 8,408 | |||||||
iShares MSCI Pacific Ex-Japan ETF | 243 | 11,968 | |||||||
iShares MSCI Poland Capped ETF | 305 | 8,952 | |||||||
iShares MSCI South Africa ETF | 37 | 2,542 | |||||||
iShares MSCI South Korea Capped ETF | 283 | 18,401 | |||||||
iShares MSCI Taiwan ETF | 601 | 9,496 | |||||||
iShares MSCI United Kingdom ETF | 471 | 9,834 | |||||||
iShares MSCI United Kingdom Small-Cap ETF | 3,583 | 149,085 | |||||||
iShares MSCI USA Momentum Index Fund | 3,481 | 220,208 | |||||||
iShares Nasdaq Biotechnology ETF | 399 | 102,555 | |||||||
iShares North American Natural Resources ETF | 5,091 | 254,295 | |||||||
iShares Russell 1000 Growth ETF | 2,816 | 256,059 | |||||||
iShares Russell 1000 Value ETF | 3,913 | 396,270 | |||||||
iShares Russell 2000 Growth ETF | 1,737 | 240,436 | |||||||
iShares U.S. Broker-Dealers ETF | 3,772 | 142,054 | |||||||
iShares U.S. Medical Devices ETF | 1,877 | 191,492 | |||||||
Market Vectors Agribusiness ETF | 124 | 6,821 | |||||||
Market Vectors Egypt Index ETF | 191 | 12,877 | |||||||
Market Vectors Global Alternative Energy ETF | 780 | 51,277 | |||||||
Market Vectors Gulf States Index ETF | 1,581 | 46,892 | |||||||
Market Vectors Indonesia Index ETF | 1,659 | 40,894 |
See accompanying Notes to Financial Statements.
147
ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Equity Fund — 67.1% (continued) | |||||||||
Market Vectors Russia ETF | 1,068 | $ | 28,120 | ||||||
Market Vectors Russia Small-Cap ETF | 2,295 | 80,164 | |||||||
Market Vectors Uranium+Nuclear Energy ETF | 226 | 11,871 | |||||||
Market Vectors Vietnam ETF | 1,290 | 26,832 | |||||||
PowerShares Dynamic Market Portfolio | 2,270 | 165,483 | |||||||
PowerShares Fundamental Pure Small Growth Portfolio | 4,500 | 112,162 | |||||||
PowerShares S&P SmallCap Financials Portfolio | 442 | 17,490 | |||||||
SPDR Russell/Nomura Small Cap Japan ETF | 2,112 | 110,099 | |||||||
SPDR S&P Emerging Markets SmallCap ETF | 599 | 30,130 | |||||||
SPDR S&P Small Cap Emerging Asia Pacific ETF | 173 | 7,671 | |||||||
Vanguard FTSE All World Ex-US Small-Cap ETF | 377 | 41,907 | |||||||
Vanguard REIT ETF | 524 | 39,216 | |||||||
Vanguard Small-Cap ETF | 4,114 | 481,832 | |||||||
WisdomTree Europe SmallCap Dividend Fund | 860 | 51,961 | |||||||
Yorkville High Income Infrastructure MLP ETF | 755 | 17,169 | |||||||
Total Equity Fund | 5,736,598 | ||||||||
Total Exchange Traded Funds (Cost $7,590,091) | 8,092,692 | ||||||||
MONEY MARKET FUND — 5.5% | |||||||||
JP Morgan Prime Money Market Fund — Institutional Class, 0.01%(b) (Cost $471,792) | 471,792 | 471,792 | |||||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $8,111,949) | 8,618,698 | ||||||||
Securities Sold, Not Yet Purchased — (11.6)% | |||||||||
EXCHANGE TRADED FUNDS — (11.6)% | |||||||||
Currency Fund — (5.0)% | |||||||||
CurrencyShares British Pound Sterling Trust* | (944 | ) | (158,979 | ) | |||||
CurrencyShares Euro Currency Trust* | (336 | ) | (45,400 | ) | |||||
CurrencyShares Japanese Yen Trust* | (2,339 | ) | (225,129 | ) | |||||
Total Currency Fund | (429,508 | ) |
See accompanying Notes to Financial Statements.
148
ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Equity Fund — (6.6)% | ||||||||
iShares Core S&P Small-Cap ETF | (1,692 | ) | $ | (189,657 | ) | |||
iShares Russell 2000 Value ETF | (2,839 | ) | (293,155 | ) | ||||
SPDR EURO STOXX 50 ETF | (1,896 | ) | (82,040 | ) | ||||
Total Equity Fund | (564,852 | ) | ||||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(975,554)] | (994,360 | ) | ||||||
Total Investments — 89.3% (Cost $7,136,395) | 7,624,338 | |||||||
Other Assets in Excess of Liabilities — 10.7% | 918,189 | |||||||
Net Assets — 100.0% | $ | 8,542,527 |
ETF — Exchange Traded Fund
ETN — Exchange Traded Note
* | Non-income producing security |
† | Affiliated Company |
(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 $2,681,457, which includes cash in the amount of $947,145 as of June 30, 2014. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Commodity Fund | 0.7 | % | ||
Currency Fund | (4.6 | ) | ||
Debt Fund | 26.5 | |||
Equity Fund | 61.2 | |||
Money Market Fund | 5.5 | |||
Total Investments | 89.3 | |||
Other Assets in Excess of Liabilities | 10.7 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
149
ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUND — 18.5% | ||||||||
Debt Fund — 18.5% | ||||||||
AdvisorShares Sage Core Reserves ETF† (Cost $29,997,150) | 300,000 | $ | 29,943,000 | |||||
MONEY MARKET FUNDS — 36.4% | ||||||||
Fidelity Institutional Money Market Government Portfolio — Class III, 0.01%(a) | 56,520,341 | 56,520,341 | ||||||
Morgan Stanley Institutional Liquidity Funds — Government Portfolio, 0.04%(a) | 2,500,000 | 2,500,000 | ||||||
Total Money Market Funds (Cost $59,020,341) | 59,020,341 | |||||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $89,017,491) | 88,963,341 | |||||||
Securities Sold, Not Yet Purchased — (98.9)% | ||||||||
COMMON STOCKS — (98.9)% | ||||||||
Apparel — (1.7)% | ||||||||
Michael Kors Holdings Ltd.* | (31,800 | ) | (2,819,070 | ) | ||||
Banks — (3.1)% | ||||||||
Barclays PLC (United Kingdom)(b) | (200,000 | ) | (2,922,000 | ) | ||||
Citigroup, Inc. | (44,000 | ) | (2,072,400 | ) | ||||
Total Banks | (4,994,400 | ) | ||||||
Beverages — (1.4)% | ||||||||
Boston Beer Co., Inc. (The), Class A* | (9,900 | ) | (2,212,848 | ) | ||||
Building Materials — (3.5)% | ||||||||
Fortune Brands Home & Security, Inc. | (144,000 | ) | (5,749,920 | ) | ||||
Commercial Services — (2.2)% | ||||||||
Western Union Co. (The) | (205,000 | ) | (3,554,700 | ) | ||||
Computers — (9.6)% | ||||||||
3D Systems Corp.* | (95,000 | ) | (5,681,000 | ) | ||||
International Business Machines Corp. | (54,600 | ) | (9,897,342 | ) | ||||
Total Computers | (15,578,342 | ) |
See accompanying Notes to Financial Statements.
150
ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Distribution/Wholesale — (3.6)% | ||||||||
Fastenal Co. | (50,000 | ) | $ | (2,474,500 | ) | |||
LKQ Corp.* | (125,000 | ) | (3,336,250 | ) | ||||
Total Distribution/Wholesale | (5,810,750 | ) | ||||||
Diversified Financial Services — (5.1)% | ||||||||
Financial Engines, Inc. | (59,000 | ) | (2,671,520 | ) | ||||
Intercontinental Exchange, Inc. | (18,000 | ) | (3,400,200 | ) | ||||
Santander Consumer USA Holdings, Inc. | (112,000 | ) | (2,177,280 | ) | ||||
Total Diversified Financial Services | (8,249,000 | ) | ||||||
Entertainment — (1.6)% | ||||||||
SeaWorld Entertainment, Inc. | (90,000 | ) | (2,549,700 | ) | ||||
Food — (3.4)% | ||||||||
Annie’s, Inc.* | (103,000 | ) | (3,483,460 | ) | ||||
United Natural Foods, Inc.* | (32,000 | ) | (2,083,200 | ) | ||||
Total Food | (5,566,660 | ) | ||||||
Hand/Machine Tools — (1.6)% | ||||||||
Stanley Black & Decker, Inc. | (30,000 | ) | (2,634,600 | ) | ||||
Home Builders — (4.6)% | ||||||||
Lennar Corp., Class A | (70,000 | ) | (2,938,600 | ) | ||||
Winnebago Industries, Inc.* | (178,000 | ) | (4,482,040 | ) | ||||
Total Home Builders | (7,420,640 | ) | ||||||
Internet — (17.2)% | ||||||||
Equinix, Inc.* | (14,000 | ) | (2,941,260 | ) | ||||
LinkedIn Corp., Class A* | (24,000 | ) | (4,115,280 | ) | ||||
Netflix, Inc.* | (11,500 | ) | (5,066,900 | ) | ||||
TripAdvisor, Inc.* | (37,000 | ) | (4,020,420 | ) | ||||
Trulia, Inc.* | (115,000 | ) | (5,448,700 | ) | ||||
Yelp, Inc.* | (53,000 | ) | (4,064,040 | ) | ||||
Zillow, Inc., Class A* | (15,000 | ) | (2,143,950 | ) | ||||
Total Internet | (27,800,550 | ) |
See accompanying Notes to Financial Statements.
151
ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Leisure Time — (4.4)% | ||||||||
Arctic Cat, Inc. | (90,000 | ) | $ | (3,547,800 | ) | |||
Norwegian Cruise Line Holdings Ltd.* | (112,000 | ) | (3,550,400 | ) | ||||
Total Leisure Time | (7,098,200 | ) | ||||||
Pharmaceuticals — (4.8)% | ||||||||
Catamaran Corp.* | (74,000 | ) | (3,267,840 | ) | ||||
Perrigo Co. PLC | (31,000 | ) | (4,518,560 | ) | ||||
Total Pharmaceuticals | (7,786,400 | ) | ||||||
Pipelines — (2.2)% | ||||||||
Enbridge Energy Partners LP | (54,000 | ) | (1,994,220 | ) | ||||
MarkWest Energy Partners LP | (23,200 | ) | (1,660,656 | ) | ||||
Total Pipelines | (3,654,876 | ) | ||||||
Real Estate — (1.8)% | ||||||||
Realogy Holdings Corp.* | (77,000 | ) | (2,903,670 | ) | ||||
Retail — (11.6)% | ||||||||
Conn’s, Inc.* | (45,000 | ) | (2,222,550 | ) | ||||
Kate Spade & Co.* | (50,000 | ) | (1,907,000 | ) | ||||
Lululemon Athletica, Inc. (Canada)* | (70,500 | ) | (2,853,840 | ) | ||||
PVH Corp. | (22,400 | ) | (2,611,840 | ) | ||||
Restoration Hardware Holdings, Inc.* | (21,000 | ) | (1,954,050 | ) | ||||
Sally Beauty Holdings, Inc.* | (106,000 | ) | (2,658,480 | ) | ||||
Signet Jewelers Ltd. | (27,000 | ) | (2,985,930 | ) | ||||
Tiffany & Co. | (16,500 | ) | (1,654,125 | ) | ||||
Total Retail | (18,847,815 | ) | ||||||
Semiconductors — (3.3)% | ||||||||
Cree, Inc.* | (72,500 | ) | (3,621,375 | ) | ||||
Exar Corp.* | (152,000 | ) | (1,717,600 | ) | ||||
Total Semiconductors | (5,338,975 | ) |
See accompanying Notes to Financial Statements.
152
ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Software — (5.8)% | ||||||||
E2open, Inc.* | (71,000 | ) | $ | (1,467,570 | ) | |||
Informatica Corp.* | (89,000 | ) | (3,172,850 | ) | ||||
Salesforce.com, Inc.* | (81,000 | ) | (4,704,480 | ) | ||||
Total Software | (9,344,900 | ) | ||||||
Telecommunications — (4.3)% | ||||||||
CenturyLink, Inc. | (80,000 | ) | (2,896,000 | ) | ||||
Frontier Communications Corp. | (420,000 | ) | (2,452,800 | ) | ||||
Windstream Holdings, Inc. | (155,893 | ) | (1,552,694 | ) | ||||
Total Telecommunications | (6,901,494 | ) | ||||||
Textiles — (2.1)% | ||||||||
Mohawk Industries, Inc.* | (24,700 | ) | (3,416,998 | ) | ||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(151,877,901)] | (160,234,508 | ) | ||||||
Total Investments — (44.0)% [(Cost $(62,860,410)] | (71,271,167 | ) | ||||||
Other Assets in Excess of Liabilities — 144.0% | 233,223,129 | |||||||
Net Assets — 100.0% | $ | 161,951,962 |
ETF — Exchange Traded Fund
LP — Limited Partnership
PLC — Public Limited Company
† | Affiliated Company |
* | Non-income producing security |
(a) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(b) | American Depositary Receipt. |
Cash of $160,546,760 has been segregated to cover margin requirement for open short sales as of June 30, 2014.
See accompanying Notes to Financial Statements.
153
ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Apparel | (1.7 | )% | ||
Banks | (3.1 | ) | ||
Beverages | (1.4 | ) | ||
Building Materials | (3.5 | ) | ||
Commercial Services | (2.2 | ) | ||
Computers | (9.6 | ) | ||
Debt Fund | 18.5 | |||
Distribution/Wholesale | (3.6 | ) | ||
Diversified Financial Services | (5.1 | ) | ||
Entertainment | (1.6 | ) | ||
Food | (3.4 | ) | ||
Hand/Machine Tools | (1.6 | ) | ||
Home Builders | (4.6 | ) | ||
Internet | (17.2 | ) | ||
Leisure Time | (4.4 | ) | ||
Pharmaceuticals | (4.8 | ) | ||
Pipelines | (2.2 | ) | ||
Real Estate | (1.8 | ) | ||
Retail | (11.6 | ) | ||
Semiconductors | (3.3 | ) | ||
Software | (5.8 | ) | ||
Telecommunications | (4.3 | ) | ||
Textiles | (2.1 | ) | ||
Money Market Funds | 36.4 | |||
Total Investments | (44.0 | ) | ||
Other Assets in Excess of Liabilities | 144.0 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
154
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
CORPORATE BONDS — 42.5% | ||||||||
Banks — 7.3% | ||||||||
Bank of America Corp., 1.05%, 03/22/16@ | $ | 300,000 | $ | 302,364 | ||||
Bank of New York Mellon Corp. (The), 3.10%, 01/15/15 | 135,000 | 137,043 | ||||||
Capital One Financial Corp., 2.13%, 07/15/14 | 307,000 | 307,212 | ||||||
Citigroup, Inc., 6.38%, 08/12/14 | 305,000 | 307,038 | ||||||
Citigroup, Inc., 1.02%, 04/01/16@ | 250,000 | 251,695 | ||||||
First Horizon National Corp., 5.38%, 12/15/15 | 325,000 | 343,926 | ||||||
Goldman Sachs Group, Inc. (The), 5.00%, 10/01/14 | 370,000 | 374,271 | ||||||
Morgan Stanley, 2.88%, 07/28/14 | 300,000 | 300,534 | ||||||
US Bancorp, 3.15%, 03/04/15 | 100,000 | 101,949 | ||||||
Wells Fargo & Co., Series G, 3.75%, 10/01/14 | 295,000 | 297,558 | ||||||
Total Banks | 2,723,590 | |||||||
Chemicals — 1.9% | ||||||||
EI du Pont de Nemours & Co., 3.25%, 01/15/15 | 365,000 | 370,938 | ||||||
Sherwin-Williams Co. (The), 3.13%, 12/15/14 | 340,000 | 344,203 | ||||||
Total Chemicals | 715,141 | |||||||
Commercial Services — 0.9% | ||||||||
Block Financial LLC, 5.13%, 10/30/14 | 350,000 | 354,109 | ||||||
Computers — 1.0% | ||||||||
Hewlett-Packard Co., 2.13%, 09/13/15 | 365,000 | 371,543 | ||||||
Diversified Financial Services — 4.7% | ||||||||
American Express Credit Corp., 5.13%, 08/25/14 | 350,000 | 352,508 | ||||||
American Express Credit Corp., 0.74%, 07/29/16@ | 525,000 | 528,637 | ||||||
BlackRock, Inc., 3.50%, 12/10/14 | 245,000 | 248,559 | ||||||
Ford Motor Credit Co. LLC, 3.88%, 01/15/15 | 315,000 | 320,686 | ||||||
General Electric Capital Corp., Series A, 3.75%, 11/14/14 | 320,000 | 324,186 | ||||||
Total Diversified Financial Services | 1,774,576 |
See accompanying Notes to Financial Statements.
155
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Electric — 3.5% | ||||||||
Duke Energy Corp., 3.95%, 09/15/14 | $ | 420,000 | $ | 423,054 | ||||
Georgia Power Co., 0.55%, 03/15/16@ | 156,000 | 155,949 | ||||||
PacifiCorp, 4.95%, 08/15/14 | 365,000 | 367,004 | ||||||
Public Service Electric & Gas Co., Series G, 0.85%, 08/15/14 | 375,000 | 375,298 | ||||||
Total Electric | 1,321,305 | |||||||
Food — 2.0% | ||||||||
ConAgra Foods, Inc., 1.35%, 09/10/15 | 370,000 | 372,844 | ||||||
Kroger Co. (The), 4.95%, 01/15/15 | 360,000 | 368,660 | ||||||
Total Food | 741,504 | |||||||
Gas — 1.1% | ||||||||
Consolidated Natural Gas Co., Series A, 5.00%, 12/01/14 | 420,000 | 427,914 | ||||||
Housewares — 1.1% | ||||||||
Newell Rubbermaid, Inc., 2.00%, 06/15/15 | 390,000 | 395,064 | ||||||
Insurance — 2.6% | ||||||||
Allstate Corp. (The), 5.00%, 08/15/14 | 310,000 | 311,829 | ||||||
CNA Financial Corp., 5.85%, 12/15/14 | 330,000 | 338,281 | ||||||
Prudential Financial, Inc., Series B, 5.10%, 09/20/14 | 320,000 | 323,284 | ||||||
Total Insurance | 973,394 | |||||||
Media — 2.0% | ||||||||
Discovery Communications LLC, 3.70%, 06/01/15 | 355,000 | 365,567 | ||||||
Viacom, Inc., 1.25%, 02/27/15 | 370,000 | 372,129 | ||||||
Total Media | 737,696 | |||||||
Mining — 1.0% | ||||||||
Freeport-McMoRan Copper & Gold, Inc., 1.40%, 02/13/15 | 370,000 | 371,521 | ||||||
Oil & Gas — 2.0% | ||||||||
Phillips 66, 1.95%, 03/05/15 | 370,000 | 373,765 | ||||||
Valero Energy Corp., 4.50%, 02/01/15 | 385,000 | 393,917 | ||||||
Total Oil & Gas | 767,682 | |||||||
Pharmaceuticals — 1.1% | ||||||||
Express Scripts Holding Co., 2.10%, 02/12/15 | 425,000 | 429,354 |
See accompanying Notes to Financial Statements.
156
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
Pipelines — 1.2% | ||||||||
Enbridge Energy Partners LP, 5.35%, 12/15/14 | $ | 20,000 | $ | 20,425 | ||||
Kinder Morgan Energy Partners LP, 5.13%, 11/15/14 | 420,000 | 427,172 | ||||||
Total Pipelines | 447,597 | |||||||
Real Estate Investment Trusts — 1.8% | ||||||||
ERP Operating LP, 5.25%, 09/15/14 | 315,000 | 317,964 | ||||||
Hospitality Properties Trust, 5.13%, 02/15/15 | 250,000 | 251,261 | ||||||
Simon Property Group LP, 5.63%, 08/15/14 | 100,000 | 100,629 | ||||||
Total Real Estate Investment Trusts | 669,854 | |||||||
Retail — 3.5% | ||||||||
CVS Caremark Corp., 4.88%, 09/15/14 | 195,000 | 196,744 | ||||||
CVS Caremark Corp., 1.20%, 12/05/16 | 225,000 | 226,510 | ||||||
Macy’s Retail Holdings, Inc., 5.75%, 07/15/14 | 180,000 | 180,354 | ||||||
Target Corp., 1.13%, 07/18/14 | 325,000 | 325,120 | ||||||
Walgreen Co., 1.00%, 03/13/15 | 370,000 | 371,476 | ||||||
Total Retail | 1,300,204 | |||||||
Telecommunications — 2.1% | ||||||||
AT&T, Inc., 2.50%, 08/15/15 | 365,000 | 373,028 | ||||||
Verizon Communications, Inc., 2.50%, 09/15/16 | 385,000 | 397,049 | ||||||
Total Telecommunications | 770,077 | |||||||
Transportation — 1.7% | ||||||||
Norfolk Southern Corp., 5.26%, 09/17/14 | 249,000 | 251,457 | ||||||
Ryder System, Inc., 3.60%, 03/01/16 | 355,000 | 371,458 | ||||||
Total Transportation | 622,915 | |||||||
Total Corporate Bonds (Cost $15,912,797) | 15,915,040 | |||||||
FOREIGN BONDS — 11.4% | ||||||||
Banks — 3.2% | ||||||||
Abbey National Treasury Services PLC, 3.88%, 11/10/14 (United Kingdom)‡ | 250,000 | 253,092 | ||||||
Bank of Nova Scotia, 1.85%, 01/12/15 (Canada) | 320,000 | 322,788 | ||||||
Export-Import Bank of Korea, 5.88%, 01/14/15 (South Korea) | 310,000 | 318,615 |
See accompanying Notes to Financial Statements.
157
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Banks — 3.2% (continued) | |||||||||
Royal Bank of Canada, Series G, 0.44%, 04/29/15 (Canada)@ | $ | 100,000 | $ | 100,187 | |||||
Royal Bank of Canada, Series G, 0.69%, 09/09/16 (Canada)@ | 200,000 | 201,205 | |||||||
Total Banks | 1,195,887 | ||||||||
Beverages — 1.2% | |||||||||
Anheuser-Busch InBev Finance, Inc., 0.42%, 01/27/17 (Belgium)@ | 450,000 | 450,864 | |||||||
Diversified Financial Services — 0.9% | |||||||||
Nomura Holdings, Inc., 5.00%, 03/04/15 (Japan) | 250,000 | 257,049 | |||||||
Nomura Holdings, Inc., 1.68%, 09/13/16 (Japan)@ | 100,000 | 101,713 | |||||||
Total Diversified Financial Services | 358,762 | ||||||||
Mining — 2.0% | |||||||||
Barrick Gold Corp., 2.90%, 05/30/16 (Canada) | 355,000 | 366,575 | |||||||
BHP Billiton Finance USA Ltd., 1.00%, 02/24/15 (Australia) | 370,000 | 371,814 | |||||||
Total Mining | 738,389 | ||||||||
Oil & Gas — 2.1% | |||||||||
Canadian Natural Resources Ltd., 4.90%, 12/01/14 (Canada) | 350,000 | 356,286 | |||||||
Petroleos Mexicanos, 4.88%, 03/15/15 (Mexico) | 410,000 | 421,992 | |||||||
Total Oil & Gas | 778,278 | ||||||||
Pharmaceuticals — 1.0% | |||||||||
Warner Chilcott Co. LLC/Warner Chilcott Finance LLC, 7.75%, 09/15/18 (Puerto Rico) | 350,000 | 368,826 | |||||||
Telecommunications — 1.0% | |||||||||
Vodafone Group PLC, 1.63%, 03/20/17 (United Kingdom) | 370,000 | 373,228 | |||||||
Total Foreign Bonds (Cost $4,264,767) | 4,264,234 | ||||||||
ASSET BACKED SECURITIES — 16.6% | |||||||||
Diversified Financial Services — 16.6% | |||||||||
Ally Auto Receivables Trust, Class A3, Series 2012-2, 0.74%, 04/15/16 | 52,293 | 52,360 | |||||||
Ally Auto Receivables Trust, Class A3, Series 2012-5, 0.62%, 03/15/17 | 335,408 | 335,971 |
See accompanying Notes to Financial Statements.
158
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Diversified Financial Services — 16.6% (continued) | |||||||||
AmeriCredit Automobile Receivables Trust, Class A3, Series 2012-3, 0.96%, 01/09/17 | $ | 78,019 | $ | 78,165 | |||||
AmeriCredit Automobile Receivables Trust, Class A2B, Series 2013-5, 0.53%, 03/08/17@ | 171,069 | 171,244 | |||||||
BA Credit Card Trust, Class A7, Series 2006-A7, 0.19%, 12/15/16@ | 100,000 | 99,993 | |||||||
BA Credit Card Trust, Class A11, Series 2007-A11, 0.22%, 12/15/19@ | 295,000 | 293,346 | |||||||
BMW Vehicle Owner Trust, Class A2, Series 2013-A, 0.41%, 02/25/16 | 69,790 | 69,812 | |||||||
Capital One Multi-Asset Execution Trust, Class A5, Series 2007-A5, 0.19%, 07/15/20@ | 525,000 | 521,152 | |||||||
CarMax Auto Owner Trust, Class A3, Series 2012-1, 0.89%, 09/15/16 | 220,472 | 220,978 | |||||||
CarMax Auto Owner Trust, Class B, Series 2011-1, 2.63%, 11/15/16 | 230,000 | 233,349 | |||||||
CarMax Auto Owner Trust, Class A2, Series 2013-4, 0.52%, 11/15/16 | 294,363 | 294,615 | |||||||
CarMax Auto Owner Trust, Class A3, Series 2012-3, 0.52%, 07/17/17 | 299,015 | 299,321 | |||||||
Citibank Credit Card Issuance Trust, Class A2, Series 2013-A2, 0.43%, 05/26/20@ | 600,000 | 600,712 | |||||||
Fifth Third Auto, Class A2, Series 2013-1, 0.59%, 03/15/16 | 232,029 | 232,212 | |||||||
Fifth Third Auto Trust, Class A3, Series 2013-A, 0.61%, 09/15/17 | 185,000 | 185,281 | |||||||
First National Master Note Trust, Class A, Series 2013-2, 0.68%, 10/15/19@ | 325,000 | 325,490 | |||||||
Ford Credit Auto Owner Trust, Class A2, Series 2013-A, 0.38%, 11/15/15 | 19,858 | 19,860 | |||||||
GE Equipment Midticket LLC, Class A3, Series 2012-1, 0.60%, 05/23/16 | 203,391 | 203,570 | |||||||
Honda Auto Receivables Owner Trust, Class A2, Series 2013-1, 0.35%, 06/22/15 | 63,796 | 63,797 | |||||||
Huntington Auto Trust, Class A3, Series 2012-2, 0.51%, 04/17/17 | 345,000 | 345,327 | |||||||
Hyundai Auto Receivables Trust, Class A2, Series 2013-B, 0.53%, 03/15/16 | 61,210 | 61,250 | |||||||
Hyundai Auto Receivables Trust, Class A2, Series 2014-B, 0.44%, 02/15/17 | 341,000 | 341,158 |
See accompanying Notes to Financial Statements.
159
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Diversified Financial Services — 16.6% (continued) | |||||||||
Hyundai Auto Receivables Trust, Class A3, Series 2012-C, 0.53%, 04/17/17 | $ | 320,000 | $ | 320,323 | |||||
Nissan Auto Receivables Owner Trust, Class A3, Series 2012-B, 0.46%, 10/17/16 | 255,855 | 255,990 | |||||||
Terwin Mortgage Trust, Class A3, Series 2005-8HE, 0.52%, 07/25/35@‡ | 52,036 | 52,147 | |||||||
World Omni Auto Receivables Trust, Class A3, Series 2012-A, 0.64%, 02/15/17 | 236,228 | 236,614 | |||||||
World Omni Automobile Lease Securitization Trust, Class A2B, Series 2013-A, 0.47%, 05/16/16@ | 284,784 | 285,070 | |||||||
Total Asset Backed Securities (Cost $6,196,002) | 6,199,107 | ||||||||
MORTGAGE BACKED SECURITIES — 21.0% | |||||||||
Commercial Mortgage Backed Securities — 21.0% | |||||||||
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A1A, Series 2004-5, 4.54%, 11/10/41 | 49,009 | 49,173 | |||||||
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A5, Series 2005-2, 4.86%, 07/10/43@ | 318,579 | 325,043 | |||||||
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A4, Series 2005-5, 5.12%, 10/10/45@ | 197,188 | 205,353 | |||||||
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A4, Series 2005-6, 5.18%, 09/10/47@ | 350,000 | 366,039 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A2, Series 2005-PWR7, 4.95%, 02/11/41 | 77,673 | 77,660 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A4A, Series 2005-T20, 5.14%, 10/12/42@ | 355,000 | 370,835 | |||||||
CD 2005-CD1 Commercial Mortgage Trust, Class A4, Series 2005-CD1, 5.40%, 07/15/44@ | 317,336 | 330,106 | |||||||
Citigroup Commercial Mortgage Trust, Class AM, Series 2005-C3, 4.83%, 05/15/43@ | 80,000 | 82,227 | |||||||
Credit Suisse First Boston Mortgage Securities Corp., Class A4, Series 2005-C3, 4.69%, 07/15/37 | 409,869 | 419,565 | |||||||
Credit Suisse First Boston Mortgage Securities Corp., Class A5, Series 2005-C4, 5.10%, 08/15/38@ | 172,009 | 177,452 | |||||||
DBRR Trust, Class A, Series 2012-EZ1, 0.95%, 09/25/45‡ | 32,889 | 32,918 | |||||||
GE Capital Commercial Mortgage Corp., Class A4, Series 2005-C2, 4.98%, 05/10/43@ | 304,899 | 312,507 |
See accompanying Notes to Financial Statements.
160
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
Commercial Mortgage Backed Securities — 21.0% (continued) | |||||||||
GE Capital Commercial Mortgage Corp., Class A5, Series 2005-C1, 4.77%, 06/10/48@ | $ | 345,000 | $ | 350,531 | |||||
GS Mortgage Securities Corp. II, Class A4A, Series 2005-GG4, 4.75%, 07/10/39 | 418,806 | 427,556 | |||||||
JPMorgan Chase Commercial Mortgage Securities Corp., Class B, Series 2004-C3, 4.96%, 01/15/42@ | 103,127 | 105,049 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2005-LDP2, 4.74%, 07/15/42 | 335,000 | 343,046 | |||||||
LB-UBS Commercial Mortgage Trust, Class A4, Series 2005-C1, 4.74%, 02/15/30 | 283,002 | 286,418 | |||||||
LB-UBS Commercial Mortgage Trust, Class A4, Series 2005-C7, 5.20%, 11/15/30@ | 350,000 | 360,485 | |||||||
LB-UBS Commercial Mortgage Trust, Class AJ, Series 2005-C3, 4.84%, 07/15/40 | 305,000 | 313,380 | |||||||
Morgan Stanley Capital I Trust, Class A5, Series 2005-T17, 4.78%, 12/13/41 | 326,589 | 329,787 | |||||||
Morgan Stanley Capital I Trust, Class A4A, Series 2005-HQ6, 4.99%, 08/13/42 | 300,000 | 308,257 | |||||||
Morgan Stanley Capital I Trust, Class A4A, Series 2005-T19, 4.89%, 06/12/47 | 295,650 | 304,884 | |||||||
Morgan Stanley Capital I Trust, Class A4, Series 2006-T21, 5.16%, 10/12/52@ | 345,000 | 361,348 | |||||||
Morgan Stanley Capital I Trust, Class A5, Series 2005-IQ9, 4.70%, 07/15/56 | 390,171 | 393,372 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2005-C17, 5.08%, 03/15/42@ | 121,406 | 123,394 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class A7, Series 2005-C20, 5.12%, 07/15/42@ | 406,573 | 420,312 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class AMFX, Series 2005-C20, 5.18%, 07/15/42@ | 295,000 | 308,001 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2005-C21, 5.41%, 10/15/44@ | 342,745 | 357,941 | |||||||
Total Mortgage Backed Securities (Cost $7,927,406) | 7,842,639 |
See accompanying Notes to Financial Statements.
161
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Principal/ Shares | Value | ||||||
MUNICIPAL BONDS — 1.6% | ||||||||
County of Santa Fe NM, Ad Valorem Property Tax GO, 2.50%, 07/01/14 | $ | 90,000 | $ | 90,000 | ||||
New Jersey NJ Transit Corp., Government Grant Revenue, 5.25%, 09/15/14, (INS: AMBAC) | 100,000 | 101,017 | ||||||
State of California, Ad Valorem Property Tax GO, 5.45%, 04/01/15 | 400,000 | 415,308 | ||||||
Total Municipal Bonds (Cost $605,713) | 606,325 | |||||||
U.S. TREASURY NOTE — 2.3% | ||||||||
U.S. Treasury Note, 0.25%, 09/15/14 (Cost $875,267) | 875,000 | 875,359 | ||||||
U.S. TREASURY BILL — 0.6% | ||||||||
U.S. Treasury Bill, 12/11/14(a) (Cost $199,965) | 200,000 | 199,958 | ||||||
MONEY MARKET FUND — 4.9% | ||||||||
JP Morgan US Government Money Market Fund — Institutional Class, 0.01%(b) (Cost $1,840,417) | 1,840,417 | 1,840,417 | ||||||
Total Investments — 100.9% (Cost $37,822,334) | 37,743,079 | |||||||
Liabilities in Excess of Other Assets — (0.9%) | (324,267 | ) | ||||||
Net Assets — 100.0% | $ | 37,418,812 |
AMBAC — American Municipal Bond Assurance Corporation
GO — General Obligation
INS — Insured
LP — Limited Partnership
PLC — Public Limited Company
@ | Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2014. |
‡ | 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. |
(a) | Interest rate shown reflects the discount rate at time of purchase. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
162
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2014
Futures contracts outstanding as of June 30, 2014:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Type | Broker | Expiration Date | Number of Contracts | Value at Trade Date | Value at June 30, 2014 | Unrealized Appreciation | ||||||||||||||||||
2-Year U.S. Treasury Note | Jefferies & Company Inc. | September 2014 | (8 | ) | $ | (1,757,399 | ) | $ | (1,756,750 | ) | $ | 649 |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Banks | 10.5 | % | ||
Beverages | 1.2 | |||
Chemicals | 1.9 | |||
Commercial Mortgage Backed Securities | 21.0 | |||
Commercial Services | 0.9 | |||
Computers | 1.0 | |||
Diversified Financial Services | 22.2 | |||
Electric | 3.5 | |||
Food | 2.0 | |||
Gas | 1.1 | |||
Housewares | 1.1 | |||
Insurance | 2.6 | |||
Media | 2.0 | |||
Mining | 3.0 | |||
Municipal | 1.6 | |||
Oil & Gas | 4.1 | |||
Pharmaceuticals | 2.1 | |||
Pipelines | 1.2 | |||
Real Estate Investment Trusts | 1.8 | |||
Retail | 3.5 | |||
Telecommunications | 3.1 | |||
Transportation | 1.7 | |||
U.S. Treasury Bill | 0.6 | |||
U.S. Treasury Note | 2.3 | |||
Money Market Fund | 4.9 | |||
Total Investments | 100.9 | |||
Liabilities in Excess of Other Assets | (0.9 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
163
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 65.5% | ||||||||
Debt Fund — 8.4% | ||||||||
AdvisorShares Sage Core Reserves ETF† | 2,625 | $ | 262,001 | |||||
iShares 1 – 3 Year Credit Bond ETF | 9,764 | 1,031,860 | ||||||
iShares Barclays 20+ Year Treasury Bond ETF | 239 | 27,131 | ||||||
iShares iBoxx $High Yield Corporate Bond ETF | 5,040 | 479,808 | ||||||
iShares JPMorgan USD Emerging Markets Bond ETF | 4,310 | 496,814 | ||||||
Total Debt Fund | 2,297,614 | |||||||
Equity Fund — 57.1% | ||||||||
Consumer Discretionary Select Sector SPDR Fund | 8,715 | 581,639 | ||||||
Consumer Staples Select Sector SPDR Fund | 24,014 | 1,071,505 | ||||||
Energy Select Sector SPDR Fund | 8,560 | 856,856 | ||||||
Financial Select Sector SPDR Fund | 54,189 | 1,232,258 | ||||||
Health Care Select Sector SPDR Fund | 13,515 | 822,117 | ||||||
Industrial Select Sector SPDR Fund | 15,171 | 820,144 | ||||||
iShares MSCI EAFE ETF | 19,560 | 1,337,317 | ||||||
iShares MSCI Emerging Markets ETF | 31,155 | 1,346,831 | ||||||
Materials Select Sector SPDR Fund | 4,116 | 204,318 | ||||||
SPDR S&P 500 ETF Trust | 30,361 | 5,942,255 | ||||||
SPDR S&P Oil & Gas Exploration & Production ETF | 1,762 | 144,977 | ||||||
Technology Select Sector SPDR Fund | 28,550 | 1,094,893 | ||||||
Utilities Select Sector SPDR Fund | 5,624 | 248,918 | ||||||
Total Equity Fund | 15,704,028 | |||||||
Total Exchange Traded Funds (Cost $16,521,276) | 18,001,642 | |||||||
COMMON STOCKS — 9.7% | ||||||||
Aerospace/Defense — 0.5% | ||||||||
Raytheon Co. | 1,353 | 124,814 | ||||||
Apparel — 1.1% | ||||||||
Hanesbrands, Inc. | 1,725 | 169,809 | ||||||
VF Corp. | 2,236 | 140,868 | ||||||
Total Apparel | 310,677 |
See accompanying Notes to Financial Statements.
164
ADVISORSHARES STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Banks — 1.1% | ||||||||
M&T Bank Corp. | 1,161 | $ | 144,022 | |||||
Wells Fargo & Co. | 2,728 | 143,384 | ||||||
Total Banks | 287,406 | |||||||
Biotechnology — 0.5% | ||||||||
Gilead Sciences, Inc.* | 1,670 | 138,460 | ||||||
Computers — 1.0% | ||||||||
Accenture PLC, Class A | 1,701 | 137,509 | ||||||
Apple, Inc. | 1,582 | 147,015 | ||||||
Total Computers | 284,524 | |||||||
Electric — 0.5% | ||||||||
Exelon Corp. | 3,771 | 137,566 | ||||||
Electronics — 0.5% | ||||||||
Thermo Fisher Scientific, Inc. | 1,135 | 133,930 | ||||||
Food — 0.5% | ||||||||
Hormel Foods Corp. | 2,814 | 138,871 | ||||||
Insurance — 0.5% | ||||||||
Travelers Cos., Inc. (The) | 1,562 | 146,937 | ||||||
Machinery – Diversified — 0.5% | ||||||||
Rockwell Automation, Inc. | 1,096 | 137,176 | ||||||
Metal Fabricate/Hardware — 0.5% | ||||||||
Valmont Industries, Inc. | 891 | 135,388 | ||||||
Miscellaneous Manufacturing — 0.5% | ||||||||
General Electric Co. | 5,058 | 132,924 | ||||||
Oil & Gas — 1.0% | ||||||||
Apache Corp. | 1,500 | 150,930 | ||||||
Exxon Mobil Corp. | 1,334 | 134,307 | ||||||
Total Oil & Gas | 285,237 | |||||||
Software — 0.5% | ||||||||
CA, Inc. | 4,622 | 132,836 |
See accompanying Notes to Financial Statements.
165
ADVISORSHARES STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares/ Principal/ Contracts | Value | ||||||
Textiles — 0.5% | ||||||||
Mohawk Industries, Inc.* | 1,018 | $ | 140,830 | |||||
Total Common Stocks (Cost $2,558,137) | 2,667,576 | |||||||
U.S. TREASURY BILLS — 7.3% | ||||||||
U.S. Treasury Bill, 0.03%, 08/21/14(a) | $ | 1,000,000 | 999,973 | |||||
U.S. Treasury Bill, 0.03%, 10/16/14(a) | 1,000,000 | 999,885 | ||||||
Total U.S. Treasury Bills (Cost $1,999,604) | 1,999,858 | |||||||
MONEY MARKET FUND — 6.7% | ||||||||
BlackRock Liquidity Funds-T-Fund Portfolio — Institutional Class, 0.01%(b) (Cost $1,832,863) | 1,832,863 | 1,832,863 | ||||||
PURCHASED PUT OPTION — 0.0%** | ||||||||
SPDR S&P 500 ETF Trust Option expiring 09/20/14, Strike Price $193.00 (Cost $10,045) | 27 | 8,707 | ||||||
Total Investments Before Written Options — 89.2% (Cost $22,921,925) | 24,510,646 | |||||||
WRITTEN CALL OPTIONS — (0.1)% | ||||||||
Accenture PLC Option expiring 07/19/14, Strike Price $87.50 | (17 | ) | (127 | ) | ||||
Apache Corp. Option expiring 07/19/14, Strike Price $105.00 | (15 | ) | (1,177 | ) | ||||
Apple Inc. Option expiring 07/19/14, Strike Price $95.00 | (15 | ) | (1,320 | ) | ||||
Consumer Discretionary Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $67.00 | (42 | ) | (2,184 | ) | ||||
Energy Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $100.00 | (38 | ) | (4,712 | ) | ||||
Gilead Sciences Inc. Option expiring 07/19/14, Strike Price $85.00 | (16 | ) | (1,056 | ) | ||||
Hanesbrands Inc. Option expiring 07/19/14, Strike Price $100.00 | (17 | ) | (1,615 | ) | ||||
Health Care Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $61.00 | (64 | ) | (3,072 | ) | ||||
Industrial Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $55.00 | (72 | ) | (1,152 | ) | ||||
iShares MSCI EAFE Option expiring 07/19/14, Strike Price $70.00 | (84 | ) | (336 | ) | ||||
iShares MSCI Emerging Markets ETF Option expiring 07/19/14, Strike Price $44.00 | (180 | ) | (3,240 | ) |
See accompanying Notes to Financial Statements.
166
ADVISORSHARES STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Contracts | Value | ||||||
WRITTEN CALL OPTIONS — (0.1)% (continued) | ||||||||
Materials Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $50.00 | (20 | ) | $ | (570 | ) | |||
Mohawk Industries Inc. Option expiring 07/19/14, Strike Price $140.00 | (10 | ) | (1,650 | ) | ||||
SPDR S&P 500 ETF Trust Option expiring 07/19/14, Strike Price $197.00 | (116 | ) | (10,440 | ) | ||||
SPDR S&P Oil & Gas Exploration & Production ETF Option expiring 07/19/14, Strike Price $87.00 | (17 | ) | (323 | ) | ||||
Thermo Fisher Scientific Inc. Option expiring 07/19/14, Strike Price $125.00 | (11 | ) | (413 | ) | ||||
Travelers Cos., Inc. (The) Option expiring 07/19/14, Strike Price $97.50 | (15 | ) | (150 | ) | ||||
Utilities Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $43.00 | (11 | ) | (1,485 | ) | ||||
Utilities Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $44.00 | (5 | ) | (285 | ) | ||||
VF Corp. Option expiring 07/19/14, Strike Price $65.00 | (22 | ) | (935 | ) | ||||
Wells Fargo & Co. Option expiring 07/19/14, Strike Price $55.00 | (27 | ) | (149 | ) | ||||
Total Written Call Options [Premiums Received $(41,242)] | (36,391 | ) | ||||||
WRITTEN PUT OPTIONS — (0.1)% | ||||||||
iShares 20+ Year Treasury Bond ETF Option expiring 07/19/14 @ $111.00 | (62 | ) | (1,798 | ) | ||||
iShares iBoxx $High Yield Corporate Bond ETF Option expiring 07/19/14 @ $95.00 | (110 | ) | (6,325 | ) | ||||
iShares JP Morgan USD Emerging Markets Bond ETF Option expiring 07/19/14 @ $115.00 | (44 | ) | (2,970 | ) | ||||
Total Written Put Options [Premiums Received $(16,001)] | (11,093 | ) | ||||||
Total Written Options — (0.2)% [Premiums Received $(57,243)] | (47,484 | ) | ||||||
Total Investments — 89.0% (Cost $22,864,682) | 24,463,162 | |||||||
Other Assets in Excess of Liabilities — 11.0% | 3,026,573 | |||||||
Net Assets — 100.0% | $ | 27,489,735 |
See accompanying Notes to Financial Statements.
167
ADVISORSHARES STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
June 30, 2014
ETF — Exchange Traded Fund
PLC — Public Limited Company
† | Affiliated Company |
* | Non-income producing security |
** | Less than 0.05% |
(a) | All or a portion of this security has been pledged as collateral for option contracts. The aggregate market value of the collateral was $3,043,981, which includes cash in the amount of $1,044,141 as of June 30, 2014. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Debt Fund | 8.4 | % | ||
Equity Fund | 57.1 | |||
Aerospace/Defense | 0.5 | |||
Apparel | 1.1 | |||
Banks | 1.1 | |||
Biotechnology | 0.5 | |||
Computers | 1.0 | |||
Electric | 0.5 | |||
Electronics | 0.5 | |||
Food | 0.5 | |||
Insurance | 0.5 | |||
Machinery – Diversified | 0.5 | |||
Metal Fabricate/Hardware | 0.5 | |||
Miscellaneous Manufacturing | 0.5 | |||
Oil & Gas | 1.0 | |||
Software | 0.5 | |||
Textiles | 0.5 | |||
U.S. Treasury Bills | 7.3 | |||
Money Market Fund | 6.7 | |||
Purchased Put Option | 0.0 | ** | ||
Written Call Options | (0.1 | ) | ||
Written Put Options | (0.1 | ) | ||
Total Investments | 89.0 | |||
Other Assets in Excess of Liabilities | 11.0 | |||
Net Assets | 100.0 | % |
** | Less than 0.05% |
See accompanying Notes to Financial Statements.
168
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 99.7% | ||||||||
Advertising — 1.0% | ||||||||
Interpublic Group of Cos., Inc. (The) | 73,314 | $ | 1,430,356 | |||||
Aerospace/Defense — 3.9% | ||||||||
General Dynamics Corp. | 11,676 | 1,360,838 | ||||||
L-3 Communications Holdings, Inc. | 11,526 | 1,391,764 | ||||||
Northrop Grumman Corp. | 10,901 | 1,304,087 | ||||||
Raytheon Co. | 14,021 | 1,293,437 | ||||||
Total Aerospace/Defense | 5,350,126 | |||||||
Agriculture — 3.0% | ||||||||
Altria Group, Inc. | 33,994 | 1,425,708 | ||||||
Lorillard, Inc. | 23,404 | 1,426,942 | ||||||
Philip Morris International, Inc. | 15,447 | 1,302,337 | ||||||
Total Agriculture | 4,154,987 | |||||||
Apparel — 1.0% | ||||||||
VF Corp. | 21,542 | 1,357,146 | ||||||
Auto Parts & Equipment — 1.0% | ||||||||
Delphi Automotive PLC (United Kingdom) | 19,746 | 1,357,340 | ||||||
Beverages — 3.0% | ||||||||
Coca-Cola Enterprises, Inc. | 28,315 | 1,352,890 | ||||||
Dr Pepper Snapple Group, Inc. | 23,310 | 1,365,500 | ||||||
Monster Beverage Corp.* | 19,162 | 1,361,077 | ||||||
Total Beverages | 4,079,467 | |||||||
Biotechnology — 2.0% | ||||||||
Celgene Corp.* | 18,072 | 1,552,024 | ||||||
United Therapeutics Corp.* | 13,486 | 1,193,376 | ||||||
Total Biotechnology | 2,745,400 | |||||||
Chemicals — 5.0% | ||||||||
E.I. du Pont de Nemours & Co. | 19,391 | 1,268,947 | ||||||
LyondellBasell Industries N.V., Class A | 13,606 | 1,328,626 | ||||||
Monsanto Co. | 11,433 | 1,426,153 | ||||||
PPG Industries, Inc. | 6,756 | 1,419,773 |
See accompanying Notes to Financial Statements.
169
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Chemicals — 5.0% (continued) | |||||||||
Sigma-Aldrich Corp. | 13,882 | $ | 1,408,745 | ||||||
Total Chemicals | 6,852,244 | ||||||||
Commercial Services — 2.0% | |||||||||
MasterCard, Inc., Class A | 17,798 | 1,307,619 | |||||||
Moody’s Corp. | 16,346 | 1,432,890 | |||||||
Total Commercial Services | 2,740,509 | ||||||||
Computers — 5.1% | |||||||||
Apple, Inc. | 15,431 | 1,434,003 | |||||||
Computer Sciences Corp. | 21,725 | 1,373,020 | |||||||
International Business Machines Corp. | 7,148 | 1,295,718 | |||||||
Jack Henry & Associates, Inc. | 23,272 | 1,383,055 | |||||||
Western Digital Corp. | 15,904 | 1,467,939 | |||||||
Total Computers | 6,953,735 | ||||||||
Cosmetics/Personal Care — 2.0% | |||||||||
Colgate-Palmolive Co. | 19,590 | 1,335,646 | |||||||
Estee Lauder Cos., Inc. (The), Class A | 17,994 | 1,336,235 | |||||||
Total Cosmetics/Personal Care | 2,671,881 | ||||||||
Distribution/Wholesale — 1.0% | |||||||||
W.W. Grainger, Inc. | 5,263 | 1,338,223 | |||||||
Diversified Financial Services — 2.0% | |||||||||
Franklin Resources, Inc. | 24,396 | 1,411,065 | |||||||
Visa, Inc., Class A | 6,461 | 1,361,397 | |||||||
Total Diversified Financial Services | 2,772,462 | ||||||||
Electronics — 1.0% | |||||||||
Mettler-Toledo International, Inc.* | 5,488 | 1,389,452 | |||||||
Engineering & Construction — 1.0% | |||||||||
URS Corp. | 30,476 | 1,397,325 | |||||||
Environmental Control — 1.0% | |||||||||
Stericycle, Inc.* | 11,627 | 1,376,869 |
See accompanying Notes to Financial Statements.
170
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Food — 3.8% | ||||||||
Hershey Co. (The) | 13,068 | $ | 1,272,431 | |||||
Ingredion, Inc. | 18,004 | 1,351,020 | ||||||
McCormick & Co., Inc. | 18,316 | 1,311,243 | ||||||
Mondelez International, Inc., Class A | 35,556 | 1,337,261 | ||||||
Total Food | 5,271,955 | |||||||
Forest Products & Paper — 1.1% | ||||||||
International Paper Co. | 28,866 | 1,456,867 | ||||||
Healthcare – Products — 3.9% | ||||||||
Becton, Dickinson and Co. | 11,526 | 1,363,526 | ||||||
C.R. Bard, Inc. | 9,023 | 1,290,379 | ||||||
ResMed, Inc.(a) | 26,492 | 1,341,290 | ||||||
Zimmer Holdings, Inc. | 13,108 | 1,361,397 | ||||||
Total Healthcare – Products | 5,356,592 | |||||||
Healthcare – Services — 2.0% | ||||||||
Laboratory Corp. of America Holdings* | 12,909 | 1,321,881 | ||||||
MEDNAX, Inc.* | 23,498 | 1,366,409 | ||||||
Total Healthcare – Services | 2,688,290 | |||||||
Household Products/Wares — 2.0% | ||||||||
Church & Dwight Co., Inc. | 19,515 | 1,365,074 | ||||||
Jarden Corp.* | 23,834 | 1,414,548 | ||||||
Total Household Products/Wares | 2,779,622 | |||||||
Housewares — 1.0% | ||||||||
Newell Rubbermaid, Inc. | 44,258 | 1,371,555 | ||||||
Insurance — 3.9% | ||||||||
American Financial Group, Inc. | 23,070 | 1,374,049 | ||||||
Axis Capital Holdings Ltd. (Bermuda) | 27,976 | 1,238,777 | ||||||
Everest Re Group Ltd. (Bermuda) | 8,416 | 1,350,684 | ||||||
Torchmark Corp. | 16,586 | 1,358,725 | ||||||
Total Insurance | 5,322,235 | |||||||
Internet — 0.9% | ||||||||
eBay, Inc.* | 25,819 | 1,292,499 |
See accompanying Notes to Financial Statements.
171
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Leisure Time — 1.0% | ||||||||
Harley-Davidson, Inc. | 18,682 | $ | 1,304,938 | |||||
Machinery – Construction & Mining — 1.0% | ||||||||
Caterpillar, Inc. | 13,044 | 1,417,491 | ||||||
Machinery – Diversified — 2.1% | ||||||||
Flowserve Corp. | 18,076 | 1,343,951 | ||||||
IDEX Corp. | 18,319 | 1,479,076 | ||||||
Total Machinery – Diversified | 2,823,027 | |||||||
Media — 3.0% | ||||||||
DIRECTV* | 15,952 | 1,356,079 | ||||||
Sirius XM Holdings, Inc.*(a) | 400,217 | 1,384,751 | ||||||
Viacom, Inc., Class B | 15,534 | 1,347,264 | ||||||
Total Media | 4,088,094 | |||||||
Miscellaneous Manufacturing — 4.1% | ||||||||
3M Co. | 9,711 | 1,391,004 | ||||||
Dover Corp. | 15,500 | 1,409,725 | ||||||
Illinois Tool Works, Inc. | 15,610 | 1,366,812 | ||||||
Ingersoll-Rand PLC (Ireland) | 23,295 | 1,456,170 | ||||||
Total Miscellaneous Manufacturing | 5,623,711 | |||||||
Office/Business Equipment — 1.0% | ||||||||
Xerox Corp. | 112,834 | 1,403,655 | ||||||
Oil & Gas — 4.1% | ||||||||
Marathon Oil Corp. | 37,200 | 1,485,024 | ||||||
Marathon Petroleum Corp. | 15,396 | 1,201,966 | ||||||
Occidental Petroleum Corp. | 13,770 | 1,413,215 | ||||||
Tesoro Corp. | 24,816 | 1,455,955 | ||||||
Total Oil & Gas | 5,556,160 | |||||||
Oil & Gas Services — 1.1% | ||||||||
Schlumberger Ltd. | 13,236 | 1,561,186 | ||||||
Packaging & Containers — 1.0% | ||||||||
Ball Corp. | 22,306 | 1,398,140 |
See accompanying Notes to Financial Statements.
172
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Pharmaceuticals — 5.0% | ||||||||
Abbott Laboratories | 33,740 | $ | 1,379,966 | |||||
Eli Lilly & Co. | 22,467 | 1,396,773 | ||||||
Express Scripts Holding Co.* | 19,068 | 1,321,985 | ||||||
Pfizer, Inc. | 45,201 | 1,341,566 | ||||||
VCA, Inc.* | 42,034 | 1,474,973 | ||||||
Total Pharmaceuticals | 6,915,263 | |||||||
Real Estate Investment Trusts — 1.0% | ||||||||
Invesco Mortgage Capital, Inc. | 77,260 | 1,341,234 | ||||||
Retail — 8.8% | ||||||||
AutoZone, Inc.* | 2,537 | 1,360,441 | ||||||
Dollar General Corp.* | 24,196 | 1,387,883 | ||||||
Home Depot, Inc. (The) | 16,773 | 1,357,942 | ||||||
Kohl’s Corp. | 25,286 | 1,332,067 | ||||||
McDonald’s Corp. | 13,005 | 1,310,124 | ||||||
Nordstrom, Inc. | 19,808 | 1,345,557 | ||||||
Ross Stores, Inc. | 19,648 | 1,299,322 | ||||||
TJX Cos., Inc. (The) | 23,843 | 1,267,255 | ||||||
Yum! Brands, Inc. | 17,222 | 1,398,426 | ||||||
Total Retail | 12,059,017 | |||||||
Semiconductors — 1.0% | ||||||||
Texas Instruments, Inc. | 28,335 | 1,354,130 | ||||||
Shipbuilding — 1.0% | ||||||||
Huntington Ingalls Industries, Inc. | 13,890 | 1,313,855 | ||||||
Software — 3.9% | ||||||||
CA, Inc. | 45,976 | 1,321,350 | ||||||
Fiserv, Inc.* | 23,128 | 1,395,081 | ||||||
Microsoft Corp. | 32,463 | 1,353,707 | ||||||
Oracle Corp. | 32,397 | 1,313,051 | ||||||
Total Software | 5,383,189 | |||||||
Telecommunications — 4.0% | ||||||||
Cisco Systems, Inc. | 54,572 | 1,356,114 | ||||||
Corning, Inc. | 62,472 | 1,371,261 |
See accompanying Notes to Financial Statements.
173
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
Telecommunications — 4.0% (continued) | |||||||||
Juniper Networks, Inc.* | 54,392 | $ | 1,334,780 | ||||||
Motorola Solutions, Inc. | 20,320 | 1,352,702 | |||||||
Total Telecommunications | 5,414,857 | ||||||||
Transportation — 3.0% | |||||||||
C.H. Robinson Worldwide, Inc. | 22,546 | 1,438,209 | |||||||
Expeditors International of Washington, Inc. | 29,390 | 1,297,863 | |||||||
United Parcel Service, Inc., Class B | 13,502 | 1,386,115 | |||||||
Total Transportation | 4,122,187 | ||||||||
Total Common Stocks (Cost $130,665,189) | 136,587,271 | ||||||||
MONEY MARKET FUND — 0.3% | |||||||||
Wells Fargo Advantage Government Money Market Fund — Institutional Class, 0.01%(b) (Cost $394,778) | 394,778 | 394,778 | |||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 2.0% | |||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(c) (Cost $2,764,305) | 2,764,305 | 2,764,305 | |||||||
Total Investments — 102.0% (Cost $133,824,272) | 139,746,354 | ||||||||
Liabilities in Excess of Other Assets — (2.0)% | (2,731,009 | ) | |||||||
Net Assets — 100.0% | $ | 137,015,345 |
PLC — Public Limited Company
* | Non-income producing security |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $2,707,254; the aggregate market value of the collateral held by the fund is $2,764,305. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(c) | Rate shown reflects the 1-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
174
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 1.0 | % | ||
Aerospace/Defense | 3.9 | |||
Agriculture | 3.0 | |||
Apparel | 1.0 | |||
Auto Parts & Equipment | 1.0 | |||
Beverages | 3.0 | |||
Biotechnology | 2.0 | |||
Chemicals | 5.0 | |||
Commercial Services | 2.0 | |||
Computers | 5.1 | |||
Cosmetics/Personal Care | 2.0 | |||
Distribution/Wholesale | 1.0 | |||
Diversified Financial Services | 2.0 | |||
Electronics | 1.0 | |||
Engineering & Construction | 1.0 | |||
Environmental Control | 1.0 | |||
Food | 3.8 | |||
Forest Products & Paper | 1.1 | |||
Healthcare – Products | 3.9 | |||
Healthcare – Services | 2.0 | |||
Household Products/Wares | 2.0 | |||
Housewares | 1.0 | |||
Insurance | 3.9 | |||
Internet | 0.9 | |||
Leisure Time | 1.0 | |||
Machinery – Construction & Mining | 1.0 | |||
Machinery – Diversified | 2.1 | |||
Media | 3.0 | |||
Miscellaneous Manufacturing | 4.1 | |||
Office/Business Equipment | 1.0 | |||
Oil & Gas | 4.1 | |||
Oil & Gas Services | 1.1 | |||
Packaging & Containers | 1.0 | |||
Pharmaceuticals | 5.0 | |||
Real Estate Investment Trusts | 1.0 | |||
Retail | 8.8 | |||
Semiconductors | 1.0 | |||
Shipbuilding | 1.0 | |||
Software | 3.9 | |||
Telecommunications | 4.0 | |||
Transportation | 3.0 | |||
Money Market Fund | 2.3 | |||
Total Investments | 102.0 | |||
Liabilities in Excess of Other Assets | (2.0 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
175
ADVISORSHARES WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
COMMON STOCKS — 98.4% | ||||||||
Apparel — 2.0% | ||||||||
LVMH Moet Hennessy Louis Vuitton SA (France)(a) | 6,574 | $ | 253,625 | |||||
Beverages — 3.8% | ||||||||
Coca-Cola Enterprises, Inc. | 10,180 | 486,400 | ||||||
Chemicals — 3.9% | ||||||||
Novozymes A/S (Denmark)(a) | 9,857 | 495,709 | ||||||
Commercial Services — 3.8% | ||||||||
SGS SA (Switzerland)(a)(b) | 20,296 | 485,886 | ||||||
Diversified Financial Services — 4.4% | ||||||||
Lazard Ltd., Class A (Bermuda) | 10,790 | 556,332 | ||||||
Electronics — 3.4% | ||||||||
Sensata Technologies Holding N.V. (Netherlands)* | 9,351 | 437,440 | ||||||
Food — 10.0% | ||||||||
Chr. Hansen Holding A/S (Denmark)*(a)(b) | 17,972 | 381,006 | ||||||
Jeronimo Martins, SGPS, SA (Portugal)(a)(b) | 5,631 | 185,767 | ||||||
Nestle SA (Switzerland)(a) | 6,088 | 472,855 | ||||||
Shoprite Holdings Ltd. (South Africa)(a)(b) | 15,194 | 221,225 | ||||||
Total Food | 1,260,853 | |||||||
Forest Products & Paper — 3.0% | ||||||||
Svenska Cellulosa AB SCA (Sweden)(a) | 14,409 | 374,490 | ||||||
Healthcare – Products — 7.2% | ||||||||
Covidien PLC (Ireland) | 6,646 | 599,336 | ||||||
Sysmex Corp. (Japan)(a)(b) | 16,546 | 310,734 | ||||||
Total Healthcare – Products | 910,070 | |||||||
Insurance — 4.2% | ||||||||
ACE Ltd. (Switzerland) | 5,161 | 535,196 |
See accompanying Notes to Financial Statements.
176
ADVISORSHARES WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
Internet — 9.4% | ||||||||
ASOS PLC (United Kingdom)*(a)(b) | 7,179 | $ | 367,062 | |||||
Tencent Holdings Ltd. (China)(a) | 30,695 | 468,713 | ||||||
Yandex N.V., Class A (Netherlands)* | 10,070 | 358,895 | ||||||
Total Internet | 1,194,670 | |||||||
Machinery – Diversified — 3.0% | ||||||||
FANUC Corp. (Japan)(a) | 13,166 | 379,313 | ||||||
Oil & Gas Services — 2.9% | ||||||||
Core Laboratories N.V. (Netherlands) | 2,173 | 363,021 | ||||||
Pharmaceuticals — 8.4% | ||||||||
NOVO Nordisk A/S (Denmark)(a) | 13,417 | 619,731 | ||||||
Perrigo Co. PLC | 3,013 | 439,175 | ||||||
Total Pharmaceuticals | 1,058,906 | |||||||
Retail — 7.9% | ||||||||
Inditex SA (Spain)(a) | 14,173 | 437,520 | ||||||
Sun Art Retail Group Ltd. (China)(a)(b) | 26,526 | 303,988 | ||||||
Wal-Mart de Mexico SAB de CV (Mexico)(a)(b) | 9,610 | 256,491 | ||||||
Total Retail | 997,999 | |||||||
Semiconductors — 11.8% | ||||||||
Arm Holdings PLC (United Kingdom)(a) | 6,433 | 291,029 | ||||||
ASML Holding N.V. (Netherlands)(c) | 5,326 | 496,756 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)(a) | 32,955 | 704,907 | ||||||
Total Semiconductors | 1,492,692 | |||||||
Transportation — 9.3% | ||||||||
Canadian National Railway Co. (Canada) | 8,678 | 564,244 | ||||||
Canadian Pacific Railway Ltd. (Canada)(b) | 3,422 | 619,861 | ||||||
Total Transportation | 1,184,105 | |||||||
Total Common Stocks (Cost $10,251,468) | 12,466,707 | |||||||
MONEY MARKET FUND — 1.7% | ||||||||
Invesco Government & Agency Portfolio — Private Investment Class, 0.01%(d) (Cost $216,038) | 216,038 | 216,038 |
See accompanying Notes to Financial Statements.
177
ADVISORSHARES WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 17.0% | ||||||||
BNY Mellon Securities Lending Overnight Fund, 0.11%(e) (Cost $2,148,039) | 2,148,039 | $ | 2,148,039 | |||||
Total Investments — 117.1% (Cost $12,615,545) | 14,830,784 | |||||||
Liabilities in Excess of Other Assets — (17.1)% | (2,170,541 | ) | ||||||
Net Assets — 100.0% | $ | 12,660,243 |
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 $2,097,959; the aggregate market value of the collateral held by the fund is $2,148,039. |
(c) | Registered Shares. |
(d) | Rate shown reflects the 7-day yield as of June 30, 2014. |
(e) | Rate shown reflects the 1-day yield as of June 30, 2014. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Apparel | 2.0 | % | ||
Beverages | 3.8 | |||
Chemicals | 3.9 | |||
Commercial Services | 3.8 | |||
Diversified Financial Services | 4.4 | |||
Electronics | 3.4 | |||
Food | 10.0 | |||
Forest Products & Paper | 3.0 | |||
Healthcare – Products | 7.2 | |||
Insurance | 4.2 | |||
Internet | 9.4 | |||
Machinery – Diversified | 3.0 | |||
Oil & Gas Services | 2.9 | |||
Pharmaceuticals | 8.4 | |||
Retail | 7.9 | |||
Semiconductors | 11.8 | |||
Transportation | 9.3 | |||
Money Market Fund | 18.7 | |||
Total Investments | 117.1 | |||
Liabilities in Excess of Other Assets | (17.1 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
178
ADVISORSHARES YIELDPRO ETF
Schedule of Investments
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS — 80.9% | ||||||||
Debt Fund — 80.9% | ||||||||
AdvisorShares Peritus High Yield ETF† | 188,540 | $ | 10,049,182 | |||||
iShares iBoxx $ Investment Grade Corporate Bond ETF | 63,347 | 7,554,763 | ||||||
PowerShares Preferred Portfolio | 765,245 | 11,195,534 | ||||||
PowerShares Senior Loan Portfolio | 345,872 | 8,601,837 | ||||||
SPDR Blackstone/GSO Senior Loan ETF | 85,936 | 4,296,800 | ||||||
Vanguard Intermediate-Term Corporate Bond ETF | 105,110 | 9,098,321 | ||||||
Vanguard Long-Term Corporate Bond ETF | 82,399 | 7,436,510 | ||||||
Total Exchange Traded Funds (Cost $57,168,127) | 58,232,947 | |||||||
COMMON STOCKS — 17.4% | ||||||||
Commercial Services — 1.0% | ||||||||
R.R. Donnelley & Sons Co. | 43,756 | 742,102 | ||||||
Iron/Steel — 0.5% | ||||||||
Cliffs Natural Resources, Inc. | 24,250 | 364,962 | ||||||
Oil & Gas — 2.4% | ||||||||
Diamond Offshore Drilling, Inc. | 23,025 | 1,142,731 | ||||||
Ensco PLC, Class A (United Kingdom) | 11,258 | 625,607 | ||||||
Total Oil & Gas | 1,768,338 | |||||||
Pipelines — 3.3% | ||||||||
El Paso Pipeline Partners LP* | 24,316 | 880,968 | ||||||
Kinder Morgan Energy Partners LP* | 10,785 | 886,635 | ||||||
ONEOK Partners LP* | 10,978 | 643,311 | ||||||
Total Pipelines | 2,410,914 | |||||||
Real Estate Investment Trust — 7.2% | ||||||||
American Capital Agency Corp. | 42,064 | 984,718 | ||||||
Annaly Capital Management, Inc. | 102,959 | 1,176,821 | ||||||
Chimera Investment Corp. | 109,824 | 350,339 | ||||||
Hatteras Financial Corp. | 12,725 | 252,082 | ||||||
Invesco Mortgage Capital, Inc. | 17,527 | 304,269 | ||||||
MFA Financial, Inc. | 42,871 | 351,971 |
See accompanying Notes to Financial Statements.
179
ADVISORSHARES YIELDPRO ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Shares/ Contracts | Value | ||||||
Real Estate Investment Trust — 7.2% (continued) | ||||||||
Newcastle Investment Corp. | 56,191 | $ | 269,155 | |||||
NorthStar Realty Finance Corp. | 30,592 | 531,689 | ||||||
Starwood Property Trust, Inc. | 22,368 | 531,687 | ||||||
Two Harbors Investment Corp. | 38,074 | 399,016 | ||||||
Total Real Estate Investment Trust | 5,151,747 | |||||||
Retail — 1.0% | ||||||||
Staples, Inc. | 64,000 | 693,760 | ||||||
Telecommunications — 2.0% | ||||||||
AT&T, Inc. | 39,908 | 1,411,147 | ||||||
Total Common Stocks (Cost $12,038,933) | 12,542,970 | |||||||
MONEY MARKET FUND — 1.8% | ||||||||
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.01%(a) (Cost $1,302,056) | 1,302,056 | 1,302,056 | ||||||
PURCHASED CALL OPTION — 0.0%** | ||||||||
Chicago Board Options Exchange SPX Volatility Index Option expiring 07/16/14, Strike Price $14.00 (Cost $36,416) | 400 | 16,000 | ||||||
PURCHASED PUT OPTIONS — 0.3% | ||||||||
American Capital Agency Corp. Option expiring 07/19/14, Strike Price $23.00 | 400 | 4,400 | ||||||
Annaly Capital Management, Inc. Option expiring 07/19/14, Strike Price $11.00 | 2,728 | 10,912 | ||||||
Cliffs Natural Resources, Inc. Option expiring 07/19/14, Strike Price $13.00 | 349 | 3,315 | ||||||
Diamond Offshore Drilling, Inc. Option expiring 07/19/14, Strike Price $45.00 | 385 | 6,160 | ||||||
Diamond Offshore Drilling, Inc. Option expiring 07/19/14, Strike Price $47.50 | 130 | 5,395 | ||||||
iShares 20+ Year Treasury Bond ETF Option expiring 07/19/14, Strike Price $110.00 | 1,000 | 16,500 | ||||||
iShares 20+ Year Treasury Bond ETF Option expiring 07/19/14, Strike Price $111.00 | 1,100 | 31,900 |
See accompanying Notes to Financial Statements.
180
ADVISORSHARES YIELDPRO ETF
Schedule of Investments (continued)
June 30, 2014
![]() | ![]() | ![]() | ||||||
Investments | Contracts | Value | ||||||
PURCHASED PUT OPTIONS — 0.3% (continued) | ||||||||
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 09/20/14, Strike Price $93.00 | 400 | $ | 36,000 | |||||
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 07/19/14, Strike Price $94.00 | 500 | 10,000 | ||||||
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 09/20/14, Strike Price $94.00 | 300 | 39,750 | ||||||
iShares US Preferred Stock ETF Option expiring 07/19/14, Strike Price $39.00 | 453 | 3,398 | ||||||
SPDR Barclays High Yield Bond ETF Option expiring 09/20/14, Strike Price $41.00 | 275 | 13,750 | ||||||
SPDR S&P 500 ETF Trust Option expiring 07/19/14, Strike Price $194.00 | 300 | 27,450 | ||||||
Total Purchased Put Options (Cost $506,698) | 208,930 | |||||||
Total Investments — 100.4% (Cost $71,052,230) | 72,302,903 | |||||||
Liabilities in Excess of Other Assets — (0.4)% | (267,638 | ) | ||||||
Net Assets — 100.0% | $ | 72,035,265 |
ETF — Exchange Traded Fund
LP — Limited Partnership
PLC — Public Limited Company
† | Affiliated Company |
* | Non-income producing security |
** | Less than 0.05% |
(a) | Rate shown reflects the 7-day yield as of June 30, 2014. |
See accompanying Notes to Financial Statements.
181
ADVISORSHARES YIELDPRO ETF
Schedule of Investments (continued)
June 30, 2014
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Commercial Services | 1.0 | % | ||
Debt Fund | 80.9 | |||
Iron/Steel | 0.5 | |||
Oil & Gas | 2.4 | |||
Pipelines | 3.3 | |||
Purchased Call Option | 0.0 | ** | ||
Purchased Put Options | 0.3 | |||
Real Estate Investment Trust | 7.2 | |||
Retail | 1.0 | |||
Telecommunications | 2.0 | |||
Money Market Fund | 1.8 | |||
Total Investments | 100.4 | |||
Liabilities in Excess of Other Assets | (0.4 | ) | ||
Net Assets | 100.0 | % |
** | Less than 0.05% |
See accompanying Notes to Financial Statements.
182
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Accuvest Global Opportunities ETF | AdvisorShares Athena International Bear ETF | AdvisorShares Cambria Global Tactical ETF | AdvisorShares EquityPro ETF | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Investments, at Cost | $ | 25,366,333 | $ | 31,611,762 | $ | 51,503 | $ | 41,330,755 | $ | 19,115,617 | ||||||||||
Investments in Affiliates, at Cost (Note 8) | — | — | 705,000 | — | — | |||||||||||||||
Total Cost of Investments | 25,366,333 | 31,611,762 | 756,503 | 41,330,755 | 19,115,617 | |||||||||||||||
Investments, at Market Value (including securities on loan) (Note 2) (a) | 25,730,295 | 31,620,222 | 51,503 | 43,761,586 | 20,276,174 | |||||||||||||||
Investments in Affiliates, at Market Value (Note 8) | — | — | 703,660 | — | — | |||||||||||||||
Total Market Value of Investments | 25,730,295 | 31,620,222 | 755,163 | 43,761,586 | 20,276,174 | |||||||||||||||
Cash | 11,952 | — | 600,552 | — | — | |||||||||||||||
Cash collateral held at brokers | 116,127 | — | 517,047 | — | — | |||||||||||||||
Due from Broker for Futures Contracts | — | — | — | — | — | |||||||||||||||
Receivable from Securities Sold | — | — | — | 2,422,921 | — | |||||||||||||||
Unrealized Appreciation on Swaps Contracts | 127,243 | — | — | — | — | |||||||||||||||
Dividends and Interest Receivable | 193,160 | 208,806 | 61 | 136,987 | 386,719 | |||||||||||||||
Reclaim Receivable | — | — | — | — | 504 | |||||||||||||||
Due from Investment Advisor | — | — | 3,725 | — | — | |||||||||||||||
Prepaid Trustee Fees | — | — | — | — | — | |||||||||||||||
Prepaid Expenses | 8,745 | 6,419 | 7,750 | 9,210 | 7,457 | |||||||||||||||
Total Assets | 26,187,522 | 31,835,447 | 1,884,298 | 46,330,704 | 20,670,854 | |||||||||||||||
LIABILITIES | ||||||||||||||||||||
Cash collateral for securities on loan | — | 6,328,525 | — | 6,883,911 | 539,860 | |||||||||||||||
Securities Sold, Not Yet Purchased (b) | — | — | 836,606 | — | — | |||||||||||||||
Unrealized Depreciation on Swaps Contracts | 96,214 | — | — | — | — | |||||||||||||||
Advisory Payable | 26,907 | 16,949 | — | 26,816 | 12,496 | |||||||||||||||
Payable for Securities Purchased | — | — | — | 2,690,852 | — | |||||||||||||||
Trustee Fees Payable | 110 | 110 | 1,007 | 110 | 114 | |||||||||||||||
Interest Payable | 115,596 | — | — | — | — | |||||||||||||||
Dividend Payable on Securities Sold, Not Yet Purchased | — | — | 190 | — | — | |||||||||||||||
Payable to Global Echo Foundation | — | — | — | — | — | |||||||||||||||
Accrued Expenses | 52,679 | 55,712 | 26,537 | 62,293 | 48,744 | |||||||||||||||
Total Liabilities | 291,506 | 6,401,296 | 864,340 | 9,663,982 | 601,214 | |||||||||||||||
NET ASSETS | $ | 25,896,016 | $ | 25,434,151 | $ | 1,019,958 | $ | 36,666,722 | $ | 20,069,640 | ||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 38,603,428 | $ | 28,719,248 | $ | 1,316,950 | $ | 53,309,785 | $ | 18,419,139 | ||||||||||
Undistributed Net Investment Income (Loss) | — | 43,980 | (20,684 | ) | 354,155 | 269,918 | ||||||||||||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, options written | (13,102,403 | ) | (3,337,537 | ) | (232,372 | ) | (19,428,049 | ) | 220,026 | |||||||||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | 394,991 | 8,460 | (43,936 | ) | 2,430,831 | 1,160,557 | ||||||||||||||
NET ASSETS | $ | 25,896,016 | $ | 25,434,151 | $ | 1,019,958 | $ | 36,666,722 | $ | 20,069,640 | ||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 1,250,000 | 925,000 | 50,000 | 1,400,000 | 625,000 | |||||||||||||||
Net Asset Value (NAV) Per Share | $ | 20.72 | $ | 27.50 | $ | 20.40 | $ | 26.19 | $ | 32.11 | ||||||||||
(a) Market value of securities on loan | $ | — | $ | 6,166,571 | $ | — | $ | 6,721,952 | $ | 528,936 | ||||||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | 794,010 | $ | — | $ | — |
See accompanying Notes to Financial Statements.
184
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||
AdvisorShares Gartman Gold/British Pound ETF (consolidated) | AdvisorShares Gartman Gold/Euro ETF (consolidated) | AdvisorShares Gartman Gold/Yen ETF (consolidated) | AdvisorShares Global Echo ETF | AdvisorShares International Gold ETF | AdvisorShares Madrona Domestic ETF | AdvisorShares Madrona Global Bond ETF | ||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Investments, at Cost | $ | 879,015 | $ | 878,068 | $ | 3,173,799 | $ | 7,835,763 | $ | 257,411 | $ | 19,343,241 | $ | 27,860,673 | ||||||||||||||||||
Investments in Affiliates, at Cost (Note 8) | — | — | — | 1,112,885 | 1,001,721 | — | 2,949,946 | |||||||||||||||||||||||||
Total Cost of Investments | 879,015 | 878,068 | 3,173,799 | 8,948,648 | 1,259,132 | 19,343,241 | 30,810,619 | |||||||||||||||||||||||||
Investments, at Market Value (including securities on loan) (Note 2) (a) | 879,015 | 878,068 | 3,173,799 | 8,698,001 | 263,748 | 24,832,060 | $ | 28,620,578 | ||||||||||||||||||||||||
Investments in Affiliates, at Market Value (Note 8) | — | — | — | 1,110,189 | 1,007,726 | — | 3,112,080 | |||||||||||||||||||||||||
Total Market Value of Investments | 879,015 | 878,068 | 3,173,799 | 9,808,190 | 1,271,474 | 24,832,060 | 31,732,658 | |||||||||||||||||||||||||
Cash | — | — | — | 448 | — | — | — | |||||||||||||||||||||||||
Cash collateral held at brokers | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Due from Broker for Futures Contracts | 346,029 | 392,347 | 677,428 | — | — | — | — | |||||||||||||||||||||||||
Receivable from Securities Sold | — | — | — | 28,548 | — | — | — | |||||||||||||||||||||||||
Unrealized Appreciation on Swaps Contracts | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Dividends and Interest Receivable | — | — | — | 25,727 | — | 18,631 | 7,172 | |||||||||||||||||||||||||
Reclaim Receivable | — | — | — | 449 | — | — | — | |||||||||||||||||||||||||
Due from Investment Advisor | 11,797 | 11,737 | 10,517 | — | 8,487 | — | — | |||||||||||||||||||||||||
Prepaid Trustee Fees | 878 | 878 | 878 | — | 878 | — | — | |||||||||||||||||||||||||
Prepaid Expenses | 34,887 | 35,767 | 35,702 | — | 23,779 | 6,423 | 6,434 | |||||||||||||||||||||||||
Total Assets | 1,272,606 | 1,318,797 | 3,898,324 | 9,863,362 | 1,304,618 | 24,857,114 | 31,746,264 | |||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Cash collateral for securities on loan | — | — | — | 566,100 | — | 39,915 | 7,299,078 | |||||||||||||||||||||||||
Securities Sold, Not Yet Purchased (b) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Unrealized Depreciation on Swaps Contracts | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Advisory Payable | — | — | — | 8,257 | — | 13,926 | 8,603 | |||||||||||||||||||||||||
Payable for Securities Purchased | — | — | — | 69,888 | — | — | — | |||||||||||||||||||||||||
Trustee Fees Payable | — | — | — | — | — | 110 | 110 | |||||||||||||||||||||||||
Interest Payable | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Dividend Payable on Securities Sold, Not Yet Purchased | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Payable to Global Echo Foundation | — | — | — | 3,002 | — | — | — | |||||||||||||||||||||||||
Accrued Expenses | 16,673 | 16,571 | 17,027 | — | 16,783 | 47,880 | 55,782 | |||||||||||||||||||||||||
Total Liabilities | 16,673 | 16,571 | 17,027 | 647,247 | 16,783 | 101,831 | 7,363,573 | |||||||||||||||||||||||||
NET ASSETS | $ | 1,255,933 | $ | 1,302,226 | $ | 3,881,297 | $ | 9,216,115 | $ | 1,287,835 | $ | 24,755,283 | $ | 24,382,691 | ||||||||||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 1,248,865 | $ | 1,248,865 | $ | 3,755,148 | $ | 8,382,202 | $ | 1,280,000 | $ | 20,255,011 | $ | 23,707,632 | ||||||||||||||||||
Undistributed Net Investment Income (Loss) | (3,055 | ) | (3,093 | ) | (7,557 | ) | 30,808 | (4,507 | ) | 33,249 | 13,352 | |||||||||||||||||||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, options written | (29,980 | ) | (1,778 | ) | (7,132 | ) | (56,437 | ) | — | (1,021,796 | ) | (260,332 | ) | |||||||||||||||||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | 40,103 | 58,232 | 140,838 | 859,542 | 12,342 | 5,488,819 | 922,039 | |||||||||||||||||||||||||
NET ASSETS | $ | 1,255,933 | $ | 1,302,226 | $ | 3,881,297 | $ | 9,216,115 | $ | 1,287,835 | $ | 24,755,283 | $ | 24,382,691 | ||||||||||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 100,000 | 100,000 | 300,000 | 150,000 | 100,000 | 600,000 | 925,000 | |||||||||||||||||||||||||
Net Asset Value (NAV) Per Share | $ | 12.56 | $ | 13.02 | $ | 12.94 | $ | 61.44 | $ | 12.88 | $ | 41.26 | $ | 26.36 | ||||||||||||||||||
(a) Market value of securities on loan | $ | — | $ | — | $ | — | $ | 553,290 | $ | — | $ | 38,848 | $ | 7,111,662 | ||||||||||||||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements.
185
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
AdvisorShares Madrona International ETF | AdvisorShares Meidell Tactical Advantage ETF | AdvisorShares Newfleet Multi-Sector Income ETF | AdvisorShares Peritus High Yield ETF | AdvisorShares Pring Turner Business Cycle ETF | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Investments, at Cost | $ | 21,038,305 | $ | 16,859,575 | $ | 154,332,631 | $ | 1,199,895,672 | $ | 4,688,879 | ||||||||||
Investments in Affiliates, at Cost (Note 8) | — | — | — | — | 226,901 | |||||||||||||||
Total Cost of Investments | 21,038,305 | 16,859,575 | 154,332,631 | 1,199,895,672 | 4,915,780 | |||||||||||||||
Investments, at Market Value (including securities on loan) (Note 2) (a) | 22,457,553 | 17,343,014 | 154,733,606 | 1,227,949,668 | 5,234,093 | |||||||||||||||
Investments in Affiliates, at Market Value (Note 8) | — | — | — | — | 234,467 | |||||||||||||||
Total Market Value of Investments | 22,457,553 | 17,343,014 | 154,733,606 | 1,227,949,668 | 5,468,560 | |||||||||||||||
Cash | 1,157 | — | — | 3,138,814 | — | |||||||||||||||
Cash collateral held at brokers | — | — | — | — | — | |||||||||||||||
Due from Broker for Futures Contracts | — | — | — | — | — | |||||||||||||||
Receivable from Securities Sold | — | 761,461 | 156,339 | 10,527,296 | 66,720 | |||||||||||||||
Capital Shares Receivable | — | — | 4,992,148 | — | — | |||||||||||||||
Dividends and Interest Receivable | 76,685 | 20,480 | 751,678 | 20,075,364 | 4,365 | |||||||||||||||
Reclaim Receivable | 10,252 | — | — | — | 379 | |||||||||||||||
Prepaid Trustee Fees | — | — | — | — | — | |||||||||||||||
Prepaid Expenses | 6,399 | 6,380 | 4,370 | 5,681 | 6,458 | |||||||||||||||
Total Assets | 22,552,046 | 18,131,335 | 160,638,141 | 1,261,696,823 | 5,546,482 | |||||||||||||||
LIABILITIES | ||||||||||||||||||||
Due to Custodian | — | — | 1,960,828 | — | — | |||||||||||||||
Cash collateral for securities on loan | 3,210,703 | 1,566,357 | 845,961 | 166,306,561 | 429,413 | |||||||||||||||
Securities Sold, Not Yet Purchased (b) | — | — | — | — | — | |||||||||||||||
Options Written, at Value (c) | — | — | — | — | — | |||||||||||||||
Advisory Payable | 10,492 | 7,068 | 45,920 | 940,722 | 72 | |||||||||||||||
Payable for Securities Purchased | — | 753,599 | 2,926,935 | 18,307,522 | — | |||||||||||||||
Trustee Fees Payable | 110 | 110 | 110 | 110 | 110 | |||||||||||||||
Interest Payable | — | — | — | — | — | |||||||||||||||
Dividend Payable on Securities Sold, Not Yet Purchased | — | — | — | — | — | |||||||||||||||
Accrued Expenses | 52,093 | 54,619 | 47,616 | 145,318 | 42,651 | |||||||||||||||
Total Liabilities | 3,273,398 | 2,381,753 | 5,827,370 | 185,700,233 | 472,246 | |||||||||||||||
NET ASSETS | $ | 19,278,648 | $ | 15,749,582 | $ | 154,810,771 | $ | 1,075,996,590 | $ | 5,074,236 | ||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 19,438,626 | $ | 16,052,106 | $ | 154,733,372 | $ | 1,046,429,633 | $ | 4,612,273 | ||||||||||
Undistributed Net Investment Income (Loss) | 208,792 | 67,182 | 77,533 | 1,623,319 | 18,295 | |||||||||||||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, options written | (1,788,018 | ) | (853,145 | ) | (401,112 | ) | (110,358 | ) | (109,112 | ) | ||||||||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | 1,419,248 | 483,439 | 400,978 | 28,053,996 | 552,780 | |||||||||||||||
NET ASSETS | $ | 19,278,648 | $ | 15,749,582 | $ | 154,810,771 | $ | 1,075,996,590 | $ | 5,074,236 | ||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized). | 650,000 | 525,000 | 3,100,000 | 20,200,000 | 175,000 | |||||||||||||||
Net Asset Value (NAV) Per Share | $ | 29.66 | $ | 30.00 | $ | 49.94 | $ | 53.27 | $ | 29.00 | ||||||||||
(a) Market value of securities on loan | $ | 3,119,705 | $ | 1,532,683 | $ | 3,031,357 | $ | 162,332,391 | $ | 418,770 | ||||||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
(c) Premiums Received for Options Written | $ | — | $ | — | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements.
186
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||
AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF | AdvisorShares Sage Core Reserves ETF | AdvisorShares STAR Global Buy-Write ETF | AdvisorShares TrimTabs Float Shrink ETF | AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | AdvisorShares YieldPro ETF | ||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Investments, at Cost | $ | 7,691,949 | $ | 59,020,341 | $ | 37,822,334 | $ | 22,659,402 | $ | 133,824,272 | $ | 12,615,545 | $ | 61,117,465 | ||||||||||||||||||
Investments in Affiliates, at Cost (Note 8) | 420,000 | 29,997,150 | — | 262,523 | — | — | 9,934,765 | |||||||||||||||||||||||||
Total Cost of Investments | 8,111,949 | 89,017,491 | 37,822,334 | 22,921,925 | 133,824,272 | 12,615,545 | 71,052,230 | |||||||||||||||||||||||||
Investments, at Market Value (including securities on loan) (Note 2) (a) | 8,199,496 | 59,020,341 | 37,743,079 | 24,248,645 | 139,746,354 | 14,830,784 | 62,253,721 | |||||||||||||||||||||||||
Investments in Affiliates, at Market Value (Note 8) | 419,202 | 29,943,000 | — | 262,001 | — | — | 10,049,182 | |||||||||||||||||||||||||
Total Market Value of Investments | 8,618,698 | 88,963,341 | 37,743,079 | 24,510,646 | 139,746,354 | 14,830,784 | 72,302,903 | |||||||||||||||||||||||||
Cash | 2,864 | 76,109,147 | — | 1,980,750 | — | 3,058 | — | |||||||||||||||||||||||||
Cash collateral held at brokers | 947,145 | 160,546,760 | — | 1,044,141 | — | — | — | |||||||||||||||||||||||||
Due from Broker for Futures Contracts | — | — | 51,829 | — | — | — | — | |||||||||||||||||||||||||
Receivable from Securities Sold | — | 8,554,906 | — | 4,564 | — | — | — | |||||||||||||||||||||||||
Capital Shares Receivable | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Dividends and Interest Receivable | 10,923 | 530 | 218,798 | 74,288 | 177,717 | 5,426 | 125,556 | |||||||||||||||||||||||||
Reclaim Receivable | — | — | — | — | — | 16,487 | — | |||||||||||||||||||||||||
Prepaid Trustee Fees | — | — | 71 | — | — | — | 464 | |||||||||||||||||||||||||
Prepaid Expenses | 7,839 | 9,788 | 44,914 | 7,938 | 6,680 | 6,398 | 34,413 | |||||||||||||||||||||||||
Total Assets | 9,587,469 | 334,184,472 | 38,058,691 | 27,622,327 | 139,930,751 | 14,862,153 | 72,463,336 | |||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Due to Custodian | — | — | 10,635 | — | 370 | — | — | |||||||||||||||||||||||||
Cash collateral for securities on loan | — | — | — | — | 2,764,305 | 2,148,039 | — | |||||||||||||||||||||||||
Securities Sold, Not Yet Purchased (b) | 994,360 | 160,234,508 | — | — | — | — | — | |||||||||||||||||||||||||
Options Written, at Value (c) | — | — | — | 47,484 | — | — | — | |||||||||||||||||||||||||
Advisory Payable | 4,074 | 203,839 | 1,546 | 30,378 | 83,661 | 7,534 | 46,125 | |||||||||||||||||||||||||
Payable for Securities Purchased | — | 11,601,096 | 597,828 | — | — | — | 355,980 | |||||||||||||||||||||||||
Trustee Fees Payable | 110 | 110 | — | 110 | 110 | 110 | — | |||||||||||||||||||||||||
Interest Payable | — | 61,683 | 2,097 | — | — | — | — | |||||||||||||||||||||||||
Dividend Payable on Securities Sold, Not Yet Purchased | — | 42,033 | — | — | — | — | — | |||||||||||||||||||||||||
Accrued Expenses | 46,398 | 89,241 | 27,773 | 54,620 | 66,960 | 46,227 | 25,966 | |||||||||||||||||||||||||
Total Liabilities | 1,044,942 | 172,232,510 | 639,879 | 132,592 | 2,915,406 | 2,201,910 | 428,071 | |||||||||||||||||||||||||
NET ASSETS | $ | 8,542,527 | $ | 161,951,962 | $ | 37,418,812 | $ | 27,489,735 | $ | 137,015,345 | $ | 12,660,243 | $ | 72,035,265 | ||||||||||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 8,064,610 | $ | 324,486,324 | $ | 37,495,615 | $ | 25,943,123 | $ | 134,560,884 | $ | 10,897,508 | $ | 71,411,424 | ||||||||||||||||||
Undistributed Net Investment Income (Loss) | — | (2,033,900 | ) | 8,116 | (60,353 | ) | 552,118 | — | 142,685 | |||||||||||||||||||||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, options written | (10,026 | ) | (152,089,705 | ) | (6,313 | ) | 8,485 | (4,019,739 | ) | (452,504 | ) | (769,517 | ) | |||||||||||||||||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | 487,943 | (8,410,757 | ) | (78,606 | ) | 1,598,480 | 5,922,082 | 2,215,239 | 1,250,673 | |||||||||||||||||||||||
NET ASSETS | $ | 8,542,527 | $ | 161,951,962 | $ | 37,418,812 | $ | 27,489,735 | $ | 137,015,345 | $ | 12,660,243 | $ | 72,035,265 | ||||||||||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized). | 300,000 | 13,750,000 | 375,000 | 1,050,000 | 2,675,000 | 325,000 | 2,850,000 | |||||||||||||||||||||||||
Net Asset Value (NAV) Per Share | $ | 28.48 | $ | 11.78 | $ | 99.78 | $ | 26.18 | $ | 51.22 | $ | 38.95 | $ | 25.28 | ||||||||||||||||||
(a) Market value of securities on loan | $ | — | $ | — | $ | — | $ | — | $ | 2,707,254 | $ | 2,097,959 | $ | — | ||||||||||||||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | 975,554 | $ | 151,877,901 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
(c) Premiums Received for Options Written | $ | — | $ | — | $ | — | $ | 57,243 | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements.
187
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Accuvest Global Opportunities ETF | AdvisorShares Athena International Bear ETF(1) | AdvisorShares Cambria Global Tactical ETF | AdvisorShares EquityPro ETF | ||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividend Income | $ | 511,948 | $ | 409,595 | $ | — | $ | 922,090 | $ | 500,391 | ||||||||||
Dividend Income from Affiliates | — | — | 2,291 | — | — | |||||||||||||||
Interest Income | 38 | 2 | 188 | 522 | 26 | |||||||||||||||
Securities lending income (Note 2) | — | 33,926 | — | 132,386 | 42,334 | |||||||||||||||
Foreign withholding tax | — | — | 78 | — | 117 | |||||||||||||||
Total Investment Income | 511,986 | 443,523 | 2,557 | 1,054,998 | 542,868 | |||||||||||||||
EXPENSES: | ||||||||||||||||||||
Advisory Fees | 518,396 | 199,700 | 21,904 | 388,987 | 81,891 | |||||||||||||||
Interest on Securities Sold Short, Not Yet Purchased | 87,455 | — | 15,376 | — | — | |||||||||||||||
Accounting & Administration Fees | 54,773 | 65,693 | 9,946 | 77,077 | 30,277 | |||||||||||||||
Professional Fees | 26,815 | 25,614 | 47,863 | 26,206 | 50,045 | |||||||||||||||
Pricing Fees | 8,084 | 5,042 | 7,639 | 5,042 | 5,051 | |||||||||||||||
Exchange Listing Fees | 7,579 | 7,580 | 17,161 | 7,579 | 10,137 | |||||||||||||||
Report to Shareholders | 4,284 | 2,516 | 9,800 | 4,375 | 2,915 | |||||||||||||||
Custody Fees | 3,687 | 1,666 | 236 | 6,789 | 3,085 | |||||||||||||||
Transfer Agent Fees | 3,205 | 1,428 | 215 | 3,629 | 2,549 | |||||||||||||||
Trustee Fees | 2,772 | 2,772 | 3,898 | 2,771 | 2,775 | |||||||||||||||
Insurance Fees | 1,859 | 867 | 543 | 3,514 | 499 | |||||||||||||||
Registration Fees | 1,438 | 503 | 206 | — | 1,071 | |||||||||||||||
Dividend Expense | — | — | 35,857 | — | — | |||||||||||||||
Contribution to Global Echo Foundation | — | — | — | — | — | |||||||||||||||
Miscellaneous Fees | 6,394 | 5,325 | 3,018 | 8,144 | 3,286 | |||||||||||||||
Total Expenses | 726,741 | 318,706 | 173,662 | 534,113 | 193,581 | |||||||||||||||
Advisory Fees Waived/Recoupment | (63,291 | ) | (55,943 | ) | (21,904 | ) | 6,175 | (67,622 | ) | |||||||||||
Expense Reimbursement | — | — | (76,188 | ) | — | — | ||||||||||||||
Net Expenses | 663,450 | 262,763 | 75,570 | 540,288 | 125,959 | |||||||||||||||
Net Investment Income (Loss) | (151,464 | ) | 180,760 | (73,013 | ) | 514,710 | 416,909 | |||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||
Investments | (3,339,785 | ) | (1,591,294 | ) | — | 874,691 | 231,226 | |||||||||||||
Investments in Affiliates | — | — | — | — | (255 | ) | ||||||||||||||
In-Kind Redemptions | 4,916,832 | 2,340,676 | — | 1,726,243 | 33,870 | |||||||||||||||
In-Kind Redemptions in Affiliates | — | — | — | — | — | |||||||||||||||
Swaps | (2,622,244 | ) | — | — | — | — | ||||||||||||||
Short Sales | (229,885 | ) | — | (225,936 | ) | — | — | |||||||||||||
Futures | — | — | — | — | — | |||||||||||||||
Distributions by other Investment Companies | — | — | — | 6,050 | — | |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||
Investments | 1,265,455 | 233,931 | (1,340 | ) | 927,505 | 1,054,167 | ||||||||||||||
Swaps | (712,386 | ) | — | — | — | — | ||||||||||||||
Short Sales | (1,132,861 | ) | — | (42,596 | ) | — | — | |||||||||||||
Futures | — | — | — | — | — | |||||||||||||||
Net Realized and Unrealized Gain (Loss) | (1,854,874 | ) | 983,313 | (269,872 | ) | 3,534,489 | 1,319,008 | |||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS | $ | (2,006,338 | ) | $ | 1,164,073 | $ | (342,885 | ) | $ | 4,049,199 | $ | 1,735,917 |
(1) | Represents the period July 18, 2013 (commencement of operations) to June 30, 2014. |
(2) | Represents the period February 11, 2014 (commencement of operations) to June 30, 2014. |
See accompanying Notes to Financial Statements.
188
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||
AdvisorShares Gartman Gold/British Pound ETF(2) (consolidated) | AdvisorShares Gartman Gold/Euro ETF(2) (consolidated) | AdvisorShares Gartman Gold/Yen ETF(2) (consolidated) | AdvisorShares Global Echo ETF | AdvisorShares International Gold ETF(2) | AdvisorShares Madrona Domestic ETF | AdvisorShares Madrona Global Bond ETF | ||||||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||||||
Dividend Income | $ | — | $ | — | $ | — | $ | 96,754 | $ | — | $ | 337,485 | $ | 697,343 | ||||||||||||||||||
Dividend Income from Affiliates | — | — | — | 3,472 | — | — | 198,728 | |||||||||||||||||||||||||
Interest Income | 80 | 80 | 223 | 25,265 | — | 15 | 13 | |||||||||||||||||||||||||
Securities lending income (Note 2) | — | — | — | 12,686 | — | 933 | 83,208 | |||||||||||||||||||||||||
Foreign withholding tax | — | — | — | (2,975 | ) | — | — | — | ||||||||||||||||||||||||
Total Investment Income | 80 | 80 | 223 | 135,202 | — | 338,433 | 979,292 | |||||||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||||||
Advisory Fees | 2,652 | 2,685 | 6,582 | 79,413 | 3,898 | 173,897 | 113,618 | |||||||||||||||||||||||||
Interest on Securities Sold Short, Not Yet Purchased | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Accounting & Administration Fees | 193 | 195 | 479 | — | 195 | 77,869 | 75,141 | |||||||||||||||||||||||||
Professional Fees | 26,512 | 26,512 | 26,493 | — | 26,512 | 24,870 | 24,909 | |||||||||||||||||||||||||
Pricing Fees | 2,285 | 2,285 | 2,285 | — | 2,285 | 5,042 | 5,042 | |||||||||||||||||||||||||
Exchange Listing Fees | 6,856 | 6,856 | 6,856 | — | 6,856 | 11,983 | 7,580 | |||||||||||||||||||||||||
Report to Shareholders | 5,713 | 5,713 | 5,713 | — | 5,713 | 2,214 | 4,014 | |||||||||||||||||||||||||
Custody Fees | 1,941 | 1,941 | 1,994 | — | 1,941 | 901 | 1,824 | |||||||||||||||||||||||||
Transfer Agent Fees | 36 | 37 | 90 | — | 37 | 1,501 | 1,648 | |||||||||||||||||||||||||
Trustee Fees | 507 | 507 | 507 | — | 507 | 2,771 | 2,771 | |||||||||||||||||||||||||
Insurance Fees | 952 | 952 | 952 | — | 952 | 1,150 | 1,299 | |||||||||||||||||||||||||
Registration Fees | 185 | 80 | 185 | — | 80 | 59 | 111 | |||||||||||||||||||||||||
Dividend Expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Contribution to Global Echo Foundation | — | — | — | 28,877 | — | — | — | |||||||||||||||||||||||||
Miscellaneous Fees | 4,566 | 4,579 | 4,544 | — | 1,504 | 5,388 | 5,816 | |||||||||||||||||||||||||
Total Expenses | 52,398 | 52,342 | 56,680 | 108,290 | 50,480 | 307,645 | 243,773 | |||||||||||||||||||||||||
Advisory Fees Waived/Recoupment | (2,652 | ) | (2,685 | ) | (6,582 | ) | — | (3,898 | ) | (35,931 | ) | (27,899 | ) | |||||||||||||||||||
Expense Reimbursement | (46,611 | ) | (46,484 | ) | (42,318 | ) | — | (41,951 | ) | — | — | |||||||||||||||||||||
Net Expenses | 3,135 | 3,173 | 7,780 | 108,290 | 4,631 | 271,714 | 215,874 | |||||||||||||||||||||||||
Net Investment Income (Loss | (3,055 | ) | (3,093 | ) | (7,557 | ) | 26,912 | (4,631 | ) | 66,719 | 763,418 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||||||||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||||||||||||||
Investments | — | — | — | 45,468 | 124 | 288,347 | (191,031 | ) | ||||||||||||||||||||||||
Investments in Affiliates | — | — | — | (11,654 | ) | — | — | — | ||||||||||||||||||||||||
In-Kind Redemptions | — | — | — | — | — | 2,313,369 | 13,501 | |||||||||||||||||||||||||
In-Kind Redemptions in Affiliates | — | — | — | — | — | — | 2,151 | |||||||||||||||||||||||||
Swaps | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Short Sales | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Futures | (61,115 | ) | (32,913 | ) | (161,492 | ) | — | — | — | — | ||||||||||||||||||||||
Distributions by other Investment Companies | — | — | — | — | — | — | 9,043 | |||||||||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||||||
Investments | — | — | — | 673,768 | 12,342 | 2,619,735 | 1,351,960 | |||||||||||||||||||||||||
Swaps | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Short Sales | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Futures | 40,103 | 58,232 | 140,838 | — | — | — | — | |||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (21,012 | ) | 25,319 | (20,654 | ) | 707,582 | 12,466 | 5,221,451 | 1,185,624 | |||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS | $ | (24,067 | ) | $ | 22,226 | $ | (28,211 | ) | $ | 734,494 | $ | 7,835 | $ | 5,288,170 | $ | 1,949,042 |
See accompanying Notes to Financial Statements.
189
ADVISORSHARES TRUST
Statements of Operations
Year or Period Ended June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
AdvisorShares Madrona International ETF | AdvisorShares Meidell Tactical Advantage ETF | AdvisorShares Newfleet Multi-Sector Income ETF | AdvisorShares Peritus High Yield ETF | AdvisorShares Pring Turner Business Cycle ETF | ||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividend Income | $ | 497,522 | $ | 239,575 | $ | — | $ | 1,047,204 | $ | 103,799 | ||||||||||
Dividend Income from Affiliates | — | 108 | — | — | 20,234 | |||||||||||||||
Interest Income | 22 | — | 3,428,128 | 52,196,402 | 124 | |||||||||||||||
Securities lending income (Note 2) | 42,515 | 15,284 | 12,300 | 528,456 | 7,594 | |||||||||||||||
Foreign withholding tax | (51,779 | ) | — | — | (156,837 | ) | (2,439 | ) | ||||||||||||
Total Investment Income | 488,280 | 254,967 | 3,440,428 | 53,615,225 | 129,312 | |||||||||||||||
EXPENSES: | ||||||||||||||||||||
Advisory Fees | 142,853 | 166,231 | 677,239 | 6,444,636 | 53,952 | |||||||||||||||
Interest on Securities Sold Short, Not Yet Purchased | — | — | — | — | — | |||||||||||||||
Accounting & Administration Fees | 77,039 | 75,120 | 73,549 | 163,744 | 31,353 | |||||||||||||||
Professional Fees | 24,804 | 25,444 | 33,400 | 42,670 | 28,334 | |||||||||||||||
Pricing Fees | 5,042 | 5,042 | 12,961 | 11,646 | 6,840 | |||||||||||||||
Exchange Listing Fees | 7,580 | 7,566 | 7,500 | 7,579 | 7,596 | |||||||||||||||
Report to Shareholders | 2,983 | 2,998 | 18,046 | 63,872 | 1,689 | |||||||||||||||
Custody Fees | 6,935 | 1,766 | 12,601 | 28,112 | 743 | |||||||||||||||
Transfer Agent Fees | 1,216 | 758 | 6,995 | 26,783 | 453 | |||||||||||||||
Trustee Fees | 2,771 | 2,772 | 2,771 | 2,772 | 2,771 | |||||||||||||||
Insurance Fees | 1,118 | 628 | 2,662 | 10,847 | 161 | |||||||||||||||
Registration Fees | 43 | 718 | 10,869 | 50,910 | 385 | |||||||||||||||
Dividend Expense | — | — | — | — | — | |||||||||||||||
Licensing Fees | — | — | — | — | — | |||||||||||||||
Miscellaneous Fees | 5,044 | 4,062 | 11,253 | 64,675 | 3,298 | |||||||||||||||
Total Expenses | 277,428 | 293,105 | 869,846 | 6,918,246 | 137,575 | |||||||||||||||
Advisory Fees Waived/Recoupment | (54,221 | ) | (106,095 | ) | (88,416 | ) | — | (53,952 | ) | |||||||||||
Expense Reimbursement | — | — | — | — | (3,235 | ) | ||||||||||||||
Net Expenses | 223,207 | 187,010 | 781,430 | 6,918,246 | 80,388 | |||||||||||||||
Net Investment Income (Loss) | 265,073 | 67,957 | 2,658,998 | 46,696,979 | 48,924 | |||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||
Investments | 867,163 | (376,159 | ) | (51,692 | ) | 7,747 | (87,474 | ) | ||||||||||||
Investments in Affiliates | — | (667 | ) | — | — | — | ||||||||||||||
In-Kind Redemptions | 1,232,310 | 599,864 | — | — | 211,229 | |||||||||||||||
In-Kind Redemptions in Affiliates | — | — | — | — | 4,293 | |||||||||||||||
Swaps | — | — | — | — | — | |||||||||||||||
Short Sales | — | — | — | — | — | |||||||||||||||
Foreign Currency Transactions | — | — | (380 | ) | — | — | ||||||||||||||
Futures | — | — | — | — | — | |||||||||||||||
Options Written | — | — | — | — | — | |||||||||||||||
Distributions by other Investment Companies | — | — | — | — | 345 | |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||
Investments | 1,576,909 | 491,104 | 2,057,224 | 28,680,594 | 580,835 | |||||||||||||||
Swaps | — | — | — | — | — | |||||||||||||||
Short Sales | — | — | — | — | — | |||||||||||||||
Foreign currency translations | — | — | 3 | — | — | |||||||||||||||
Options Written | — | — | — | — | — | |||||||||||||||
Futures | — | — | — | — | — | |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 3,676,382 | 714,142 | 2,005,155 | 28,688,341 | 709,228 | |||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS | $ | 3,941,455 | $ | 782,099 | $ | 4,664,153 | $ | 75,385,320 | $ | 758,152 |
(3) | Represents the period January 14, 2014 (commencement of operations) to June 30, 2014. |
(4) | Represents the period March 4, 2014 (commencement of operations) to June 30, 2014. |
See accompanying Notes to Financial Statements.
190
ADVISORSHARES TRUST
Statements of Operations
Year or Period Ended June 30, 2014
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||
AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF | AdvisorShares Sage Core Reserves ETF(3) | AdvisorShares STAR Global Buy-Write ETF | AdvisorShares TrimTabs Float Shrink ETF | AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | AdvisorShares YieldPro ETF(4) | ||||||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||||||
Dividend Income | $ | 64,333 | $ | — | $ | — | $ | 343,424 | $ | 1,738,626 | $ | 166,957 | $ | 665,795 | ||||||||||||||||||
Dividend Income from Affiliates | 1,365 | 97,503 | — | 851 | — | — | 207,299 | |||||||||||||||||||||||||
Interest Income | 111 | 10,153 | 172,974 | 1,502 | 20 | 74 | 72 | |||||||||||||||||||||||||
Securities lending income (Note 2) | — | — | 512 | — | 6,589 | 24,652 | — | |||||||||||||||||||||||||
Foreign withholding tax | — | — | — | — | — | (21,844 | ) | — | ||||||||||||||||||||||||
Total Investment Income | 65,809 | 107,656 | 173,486 | 345,777 | 1,745,235 | 169,839 | 873,166 | |||||||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||||||
Advisory Fees | 67,404 | 2,523,254 | 46,035 | 326,907 | 913,283 | 72,902 | 146,172 | |||||||||||||||||||||||||
Interest on Securities Sold Short, Not Yet Purchased | 12,875 | 1,027,818 | — | — | — | — | — | |||||||||||||||||||||||||
Accounting & Administration Fees | 44,108 | 81,362 | 6,138 | 40,658 | 72,409 | 41,282 | 7,422 | |||||||||||||||||||||||||
Professional Fees | 30,301 | 30,057 | 33,026 | 32,220 | 26,622 | 24,751 | 22,910 | |||||||||||||||||||||||||
Pricing Fees | 8,085 | 8,084 | 2,896 | 8,084 | 5,042 | 5,042 | 1,940 | |||||||||||||||||||||||||
Exchange Listing Fees | 7,579 | 7,631 | 8,687 | 7,580 | 7,580 | 7,579 | 5,820 | |||||||||||||||||||||||||
Report to Shareholders | 1,539 | 48,887 | 3,861 | 4,249 | 13,683 | — | 2,587 | |||||||||||||||||||||||||
Custody Fees | 126 | 14,902 | 3,564 | 2,152 | 6,983 | 890 | 3,008 | |||||||||||||||||||||||||
Transfer Agent Fees | 349 | 15,141 | 1,151 | 1,641 | 4,790 | 643 | 1,392 | |||||||||||||||||||||||||
Trustee Fees | 2,772 | 2,772 | 1,314 | 2,772 | 2,772 | 2,772 | 922 | |||||||||||||||||||||||||
Insurance Fees | — | 10,068 | 1,208 | 760 | 2,161 | 548 | 808 | |||||||||||||||||||||||||
Registration Fees | 393 | 1,182 | 2,199 | 1,517 | 8,305 | 235 | 3,142 | |||||||||||||||||||||||||
Dividend Expense | — | 1,029,237 | — | — | — | — | — | |||||||||||||||||||||||||
Licensing Fees | — | — | — | — | — | 3,918 | — | |||||||||||||||||||||||||
Miscellaneous Fees | 3,469 | 29,295 | 2,386 | 5,539 | 8,999 | 1,709 | 1,696 | |||||||||||||||||||||||||
Total Expenses | 179,000 | 4,829,690 | 112,465 | 434,079 | 1,072,629 | 162,271 | 197,819 | |||||||||||||||||||||||||
Advisory Fees Waived/Recoupment | (65,019 | ) | — | (46,035 | ) | 13,817 | (159,385 | ) | (40,767 | ) | — | |||||||||||||||||||||
Expense Reimbursement | — | — | (12,723 | ) | — | — | — | — | ||||||||||||||||||||||||
Net Expenses | 113,981 | 4,829,690 | 53,707 | 447,896 | 913,244 | 121,504 | 197,819 | |||||||||||||||||||||||||
Net Investment Income (Loss) | (48,172 | ) | (4,722,034 | ) | 119,779 | (102,119 | ) | 831,991 | 48,335 | 675,347 | ||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||||||||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||||||||||||||
Investments | 173,776 | — | 907 | (319,971 | ) | (4,000,841 | ) | (282,823 | ) | (769,517 | ) | |||||||||||||||||||||
Investments in Affiliates | — | — | — | — | — | — | — | |||||||||||||||||||||||||
In-Kind Redemptions | 157,313 | — | — | 74,582 | 14,974,040 | 353,783 | 23 | |||||||||||||||||||||||||
In-Kind Redemptions in Affiliates | (35 | ) | — | — | — | — | — | 169 | ||||||||||||||||||||||||
Swaps | 11,612 | — | — | — | — | — | — | |||||||||||||||||||||||||
Short Sales | (7,176 | ) | (48,679,864 | ) | — | — | — | — | — | |||||||||||||||||||||||
Foreign Currency Transactions | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Futures | — | — | 1,108 | — | — | — | — | |||||||||||||||||||||||||
Options Written | 2,867 | — | — | 585,087 | — | — | — | |||||||||||||||||||||||||
Distributions by other Investment Companies | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||||||
Investments | 312,444 | (54,150 | ) | (79,255 | ) | 2,155,768 | 5,511,917 | 1,505,268 | 1,250,673 | |||||||||||||||||||||||
Swaps | 5,101 | — | — | — | — | — | — | |||||||||||||||||||||||||
Short Sales | (25,129 | ) | (3,638,124 | ) | — | — | — | — | — | |||||||||||||||||||||||
Foreign currency translations | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Options Written | — | — | — | 84,235 | — | — | — | |||||||||||||||||||||||||
Futures | — | — | 649 | — | — | — | — | |||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 630,773 | (52,372,138 | ) | (76,591 | ) | 2,579,701 | 16,485,116 | 1,576,228 | 481,348 | |||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS | $ | 582,601 | $ | (57,094,172 | ) | $ | 43,188 | $ | 2,477,582 | $ | 17,317,107 | $ | 1,624,563 | $ | 1,156,695 |
See accompanying Notes to Financial Statements.
191
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Accuvest Global Opportunities ETF | AdvisorShares Athena International Bear ETF | ||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2014 | Year ended June 30, 2013 | For the period July 18, 2013* to June 30, 2014 | ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net Investment Income (Loss) | $ | (151,464 | ) | $ | (439,369 | ) | $ | 180,760 | $ | 74,807 | $ | (73,013 | ) | |||||||
Net Realized Gain (Loss) | (1,275,082 | ) | 504,090 | 749,382 | 1,493,850 | (225,936 | ) | |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (579,792 | ) | 393,922 | 233,931 | (322,229 | ) | (43,936 | ) | ||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | (2,006,338 | ) | 458,643 | 1,164,073 | 1,246,428 | (342,885 | ) | |||||||||||||
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 | 69,802,024 | 78,003,559 | 57,020,186 | 53,907,465 | 2,500,000 | |||||||||||||||
Value of Shares Redeemed | (84,472,216 | ) | (53,911,620 | ) | (50,425,093 | ) | (50,580,810 | ) | (1,137,157 | ) | ||||||||||
Net Increase (Decrease) From Capital Stock Transactions | (14,670,192 | ) | 24,091,939 | 6,595,093 | 3,326,655 | 1,362,843 | ||||||||||||||
Net Increase (Decrease) in Net Assets | (16,676,530 | ) | 24,550,582 | 7,604,269 | 4,387,629 | 1,019,958 | ||||||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of Period | 42,572,546 | 18,021,964 | 17,829,882 | 13,442,253 | — | |||||||||||||||
End of Period | $ | 25,896,016 | $ | 42,572,546 | $ | 25,434,151 | $ | 17,829,882 | $ | 1,019,958 | ||||||||||
Undistributed Net Investment Income (Loss) | $ | — | $ | (98,523 | ) | $ | 43,980 | $ | 23,165 | $ | (20,684 | ) | ||||||||
Changes in Shares Outstanding | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1,950,000 | 850,000 | 675,000 | 550,000 | — | |||||||||||||||
Shares Sold | 3,250,000 | 3,550,000 | 2,100,000 | 1,975,000 | 100,000 | |||||||||||||||
Shares Repurchased | (3,950,000 | ) | (2,450,000 | ) | (1,850,000 | ) | (1,850,000 | ) | (50,000 | ) | ||||||||||
End of Period | 1,250,000 | 1,950,000 | 925,000 | 675,000 | 50,000 |
* | Commencement of operations. |
(1) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
See accompanying Notes to Financial Statements.
192
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||
AdvisorShares Cambria Global Tactical ETF | AdvisorShares EquityPro ETF(1) | AdvisorShares Gartman Gold/British Pound ETF (consolidated) | AdvisorShares Gartman Gold/Euro ETF (consolidated) | AdvisorShares Gartman Gold/Yen ETF (consolidated) | ||||||||||||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2014 | For the period July 10, 2012* to June 30, 2013 | For the period February 11, 2014* to June 30, 2014 | For the period February 11, 2014* to June 30, 2014 | For the period February 11, 2014* to June 30, 2014 | ||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net Investment Income (Loss) | $ | 514,710 | $ | 1,014,497 | $ | 416,909 | $ | 12,958 | $ | (3,055 | ) | $ | (3,093 | ) | $ | (7,557 | ) | |||||||||||||||
Net Realized Gain (Loss) | 2,606,984 | 2,304,034 | 264,841 | 42,439 | (61,115 | ) | (32,913 | ) | (161,492 | ) | ||||||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 927,505 | (824,107 | ) | 1,054,167 | 106,390 | 40,103 | 58,232 | 140,838 | ||||||||||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 4,049,199 | 2,494,424 | 1,735,917 | 161,787 | (24,067 | ) | 22,226 | (28,211 | ) | |||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||||||||||
Net Investment Income | — | (1,451,034 | ) | (154,669 | ) | (6,753 | ) | — | — | — | ||||||||||||||||||||||
Net Realized Gains | — | — | — | (948 | ) | — | — | — | ||||||||||||||||||||||||
Total Distributions | — | (1,451,034 | ) | (154,669 | ) | (7,701 | ) | — | — | — | ||||||||||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from Shares Issued | 1,306,971 | 12,334 | 20,096,255 | 2,500,000 | 1,280,000 | 1,280,000 | 3,909,508 | |||||||||||||||||||||||||
Value of Shares Redeemed | (18,631,777 | ) | (29,284,343 | ) | (2,964,386 | ) | (1,297,563 | ) | — | — | — | |||||||||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | (17,324,806 | ) | (29,272,009 | ) | 17,131,869 | 1,202,437 | 1,280,000 | 1,280,000 | 3,909,508 | |||||||||||||||||||||||
Net Increase (Decrease) in Net Assets | (13,275,607 | ) | (28,228,619 | ) | 18,713,117 | 1,356,523 | 1,255,933 | 1,302,226 | 3,881,297 | |||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||
Beginning of Period | 49,942,329 | 78,170,948 | 1,356,523 | — | — | — | — | |||||||||||||||||||||||||
End of Period | $ | 36,666,722 | $ | 49,942,329 | $ | 20,069,640 | $ | 1,356,523 | $ | 1,255,933 | $ | 1,302,226 | $ | 3,881,297 | ||||||||||||||||||
Undistributed Net Investment Income (Loss) | $ | 354,155 | $ | (142,589 | ) | $ | 269,918 | $ | 5,352 | $ | (3,055 | ) | $ | (3,093 | ) | $ | (7,557 | ) | ||||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 2,100,000 | 3,300,000 | 50,000 | — | — | — | — | |||||||||||||||||||||||||
Shares Sold | 50,000 | — | 675,000 | 100,000 | 100,000 | 100,000 | 300,000 | |||||||||||||||||||||||||
Shares Repurchased | (750,000 | ) | (1,200,000 | ) | (100,000 | ) | (50,000 | ) | — | — | — | |||||||||||||||||||||
End of Period | 1,400,000 | 2,100,000 | 625,000 | 50,000 | 100,000 | 100,000 | 300,000 |
See accompanying Notes to Financial Statements.
193
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
AdvisorShares Global Echo ETF | AdvisorShares International Gold ETF | AdvisorShares Madrona Domestic ETF | ||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | For the period February 11, 2014* to June 30, 2014 | Year ended June 30, 2014 | Year ended June 30, 2013 | ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net Investment Income (Loss) | $ | 26,912 | $ | (6,054 | ) | $ | (4,631 | ) | $ | 66,719 | $ | 83,034 | ||||||||
Net Realized Gain (Loss) | 33,814 | 187,729 | 124 | 2,601,716 | 1,105,722 | |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 673,768 | 127,314 | 12,342 | 2,619,735 | 2,851,528 | |||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 734,494 | 308,989 | 7,835 | 5,288,170 | 4,040,284 | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||
Net Investment Income | (2,380 | ) | — | — | (59,938 | ) | (73,945 | ) | ||||||||||||
Net Realized Gains | — | (23,426 | ) | — | — | — | ||||||||||||||
Total Distributions | (2,380 | ) | (23,426 | ) | — | (59,938 | ) | (73,945 | ) | |||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||
Proceeds from Shares Issued | 3,045,916 | 5,247,921 | 1,280,000 | 10,327,769 | 6,508,179 | |||||||||||||||
Value of Shares Redeemed | — | (5,175,016 | ) | — | (9,393,829 | ) | (7,069,627 | ) | ||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 3,045,916 | 72,905 | 1,280,000 | 933,940 | (561,448 | ) | ||||||||||||||
Net Increase (Decrease) in Net Assets | 3,778,030 | 358,468 | 1,287,835 | 6,162,172 | 3,404,891 | |||||||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of Period | 5,438,085 | 5,079,617 | — | 18,593,111 | 15,188,220 | |||||||||||||||
End of Period | $ | 9,216,115 | $ | 5,438,085 | $ | 1,287,835 | $ | 24,755,283 | $ | 18,593,111 | ||||||||||
Undistributed Net Investment Income (Loss) | $ | 30,808 | $ | 2,380 | $ | (4,507 | ) | $ | 33,249 | $ | 28,705 | |||||||||
Changes in Shares Outstanding | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 100,000 | 100,000 | — | 575,000 | 600,000 | |||||||||||||||
Shares Sold | 50,000 | 100,000 | 100,000 | 275,000 | 225,000 | |||||||||||||||
Shares Repurchased | — | (100,000 | ) | — | (250,000 | ) | (250,000 | ) | ||||||||||||
End of Period | 150,000 | 100,000 | 100,000 | 600,000 | 575,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
194
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||
AdvisorShares Madrona Global Bond ETF | AdvisorShares Madrona International ETF | AdvisorShares Meidell Tactical Advantage ETF | AdvisorShares Newfleet Multi-Sector Income ETF | |||||||||||||||||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2014 | For the period March 19, 2013* to June 30, 2013 | |||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||||||
Net Investment Income (Loss) | $ | 763,418 | $ | 630,435 | $ | 265,073 | $ | 246,686 | $ | 67,957 | $ | 36,417 | $ | 2,658,998 | $ | 400,687 | ||||||||||||||||||||
Net Realized Gain (Loss) | (166,336 | ) | 168,222 | 2,099,473 | �� | 692,737 | 223,038 | 936,023 | (52,072 | ) | (25,422 | ) | ||||||||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 1,351,960 | (789,608 | ) | 1,576,909 | 1,095,122 | 491,104 | (25,603 | ) | 2,057,227 | (1,656,249 | ) | |||||||||||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 1,949,042 | 9,049 | 3,941,455 | 2,034,545 | 782,099 | 946,837 | 4,664,153 | (1,280,984 | ) | |||||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||||||||||||||
Net Investment Income | (761,153 | ) | (624,855 | ) | (318,396 | ) | (185,288 | ) | — | (64,270 | ) | (2,905,125 | ) | (400,645 | ) | |||||||||||||||||||||
Net Realized Gains | — | (3,106 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total Distributions | (761,153 | ) | (627,961 | ) | (318,396 | ) | (185,288 | ) | — | (64,270 | ) | (2,905,125 | ) | (400,645 | ) | |||||||||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||||||||||||||
Proceeds from Shares Issued | 1,282,317 | 7,924,963 | 6,765,707 | 8,719,712 | 22,189,205 | 22,505,890 | 72,137,339 | 85,043,450 | ||||||||||||||||||||||||||||
Value of Shares Redeemed | (630,454 | ) | (5,958,081 | ) | (6,088,375 | ) | (9,809,428 | ) | (16,430,574 | ) | (19,832,014 | ) | (2,447,417 | ) | — | |||||||||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 651,863 | 1,966,882 | 677,332 | (1,089,716 | ) | 5,758,631 | 2,673,876 | 69,689,922 | 85,043,450 | |||||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 1,839,752 | 1,347,970 | 4,300,391 | 759,541 | 6,540,730 | 3,556,443 | 71,448,950 | 83,361,821 | ||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||
Beginning of Period | 22,542,939 | 21,194,969 | 14,978,257 | 14,218,716 | 9,208,852 | 5,652,409 | 83,361,821 | — | ||||||||||||||||||||||||||||
End of Period | $ | 24,382,691 | $ | 22,542,939 | $ | 19,278,648 | $ | 14,978,257 | $ | 15,749,582 | $ | 9,208,852 | $ | 154,810,771 | $ | 83,361,821 | ||||||||||||||||||||
Undistributed Net Investment Income (Loss) | $ | 13,352 | $ | 12,454 | $ | 208,792 | $ | 211,004 | $ | 67,182 | $ | (437 | ) | $ | 77,533 | $ | 42 | |||||||||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 900,000 | 825,000 | 625,000 | 675,000 | 325,000 | 225,000 | 1,700,000 | — | ||||||||||||||||||||||||||||
Shares Sold | 50,000 | 300,000 | 250,000 | 350,000 | 750,000 | 800,000 | 1,450,000 | 1,700,000 | ||||||||||||||||||||||||||||
Shares Repurchased | (25,000 | ) | (225,000 | ) | (225,000 | ) | (400,000 | ) | (550,000 | ) | (700,000 | ) | (50,000 | ) | — | |||||||||||||||||||||
End of Period | 925,000 | 900,000 | 650,000 | 625,000 | 525,000 | 325,000 | 3,100,000 | 1,700,000 |
See accompanying Notes to Financial Statements.
195
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Peritus High Yield ETF | AdvisorShares Pring Turner Business Cycle ETF | |||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2014 | For the period December 18, 2012* to June 30, 2013 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net Investment Income (Loss) | $ | 46,696,979 | $ | 14,982,941 | $ | 48,924 | $ | 28,574 | ||||||||
Net Realized Gain (Loss) | 7,747 | 410,917 | 128,393 | (20,383 | ) | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 28,680,594 | 2,388,124 | 580,835 | (28,055 | ) | |||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 75,385,320 | 17,781,982 | 758,152 | (19,864 | ) | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||
Net Investment Income | (45,294,692 | ) | (14,668,314 | ) | (59,326 | ) | — | |||||||||
Net Realized Gains | (385,440 | ) | (20,661 | ) | — | — | ||||||||||
Total Distributions | (45,680,132 | ) | (14,688,975 | ) | (59,326 | ) | — | |||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Issued | 786,562,567 | 172,000,936 | 1,309,926 | 5,748,989 | ||||||||||||
Value of Shares Redeemed | — | (7,693,597 | ) | (2,663,641 | ) | — | ||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 786,562,567 | 164,307,339 | (1,353,715 | ) | 5,748,989 | |||||||||||
Net Increase (Decrease) in Net Assets | 816,267,755 | 167,400,346 | (654,889 | ) | 5,729,125 | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of Period | 259,728,835 | 92,328,489 | 5,729,125 | — | ||||||||||||
End of Period | $ | 1,075,996,590 | $ | 259,728,835 | $ | 5,074,236 | $ | 5,729,125 | ||||||||
Undistributed Net Investment Income (Loss) | $ | 1,623,319 | $ | 535,653 | $ | 18,295 | $ | 28,724 | ||||||||
Changes in Shares Outstanding | ||||||||||||||||
Shares Outstanding, Beginning of Period | 5,150,000 | 1,900,000 | 225,000 | — | ||||||||||||
Shares Sold | 15,050,000 | 3,400,000 | 50,000 | 225,000 | ||||||||||||
Shares Repurchased | — | (150,000 | ) | (100,000 | ) | — | ||||||||||
End of Period | 20,200,000 | 5,150,000 | 175,000 | 225,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
196
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||
AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF | AdvisorShares Sage Core Reserves ETF | AdvisorShares STAR Global Buy-Write ETF | |||||||||||||||||||||||||||||
Year ended June 30, 2014 | For the period August 7, 2012* to June 30, 2013 | Year ended June 30, 2014 | Year ended June 30, 2013 | For the period January 14, 2014* to June 30, 2014 | Year ended June 30, 2014 | For the period September 17, 2012* to June 30, 2013 | ||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net Investment Income (Loss) | $ | (48,172 | ) | $ | (16,228 | ) | $ | (4,722,034 | ) | $ | (8,381,936 | ) | $ | 119,779 | $ | (102,119 | ) | $ | (16,633 | ) | ||||||||||||
Net Realized Gain (Loss) | 338,357 | 12,398 | (48,679,864 | ) | (91,193,659 | ) | 2,015 | 339,698 | (269,448 | ) | ||||||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 292,416 | 195,527 | (3,692,274 | ) | (11,309,064 | ) | (78,606 | ) | 2,240,003 | (641,523 | ) | |||||||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 582,601 | 191,697 | (57,094,172 | ) | (110,884,659 | ) | 43,188 | 2,477,582 | (927,604 | ) | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||||||||||
Net Investment Income | — | (11,280 | ) | — | — | (119,991 | ) | — | (91,839 | ) | ||||||||||||||||||||||
Net Realized Gains | (119,153 | ) | (15,366 | ) | — | — | — | — | (17,177 | ) | ||||||||||||||||||||||
Total Distributions | (119,153 | ) | (26,646 | ) | — | — | (119,991 | ) | — | (109,016 | ) | |||||||||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from Shares Issued | 5,525,090 | 3,766,470 | 66,544,424 | 236,542,256 | 37,495,615 | 4,947,012 | 23,464,423 | |||||||||||||||||||||||||
Value of Shares Redeemed | (1,377,532 | ) | — | (65,855,506 | ) | (220,523,864 | ) | — | (2,362,662 | ) | — | |||||||||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 4,147,558 | 3,766,470 | 688,918 | 16,018,392 | 37,495,615 | 2,584,350 | 23,464,423 | |||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 4,611,006 | 3,931,521 | (56,405,254 | ) | (94,866,267 | ) | 37,418,812 | 5,061,932 | 22,427,803 | |||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||
Beginning of Period | 3,931,521 | — | 218,357,216 | 313,223,483 | — | 22,427,803 | — | |||||||||||||||||||||||||
End of Period | $ | 8,542,527 | $ | 3,931,521 | $ | 161,951,962 | $ | 218,357,216 | $ | 37,418,812 | $ | 27,489,735 | $ | 22,427,803 | ||||||||||||||||||
Undistributed Net Investment Income (Loss) | $ | — | $ | (17,470 | ) | $ | (2,033,900 | ) | $ | (3,078,610 | ) | $ | 8,116 | $ | (60,353 | ) | $ | (109,831 | ) | |||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 150,000 | — | 13,500,000 | 13,425,000 | — | 950,000 | — | |||||||||||||||||||||||||
Shares Sold | 200,000 | 150,000 | 4,950,000 | 11,850,000 | 375,000 | 200,000 | 950,000 | |||||||||||||||||||||||||
Shares Repurchased | (50,000 | ) | — | (4,700,000 | ) | (11,775,000 | ) | — | (100,000 | ) | — | |||||||||||||||||||||
End of Period | 300,000 | 150,000 | 13,750,000 | 13,500,000 | 375,000 | 1,050,000 | 950,000 |
See accompanying Notes to Financial Statements.
197
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
AdvisorShares TrimTabs Float Shrink ETF | AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | AdvisorShares YieldPro ETF | ||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2014 | Year ended June 30, 2013 | For the period March 4, 2014* to June 30, 2014 | ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net Investment Income (Loss) | $ | 831,991 | $ | 77,198 | $ | 48,335 | $ | 25,558 | $ | 675,347 | ||||||||||
Net Realized Gain (Loss) | 10,973,199 | 2,467,788 | 70,960 | (4,822 | ) | (769,325 | ) | |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 5,511,917 | 92,939 | 1,505,268 | 900,436 | 1,250,673 | |||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 17,317,107 | 2,637,925 | 1,624,563 | 921,172 | 1,156,695 | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||
Net Investment Income | (300,553 | ) | (69,329 | ) | (54,540 | ) | (37,975 | ) | (532,662 | ) | ||||||||||
Net Realized Gains | — | (40,008 | ) | — | — | — | ||||||||||||||
Total Distributions | (300,553 | ) | (109,337 | ) | (54,540 | ) | (37,975 | ) | (532,662 | ) | ||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||
Proceeds from Shares Issued | 402,230,886 | 57,124,119 | 5,438,789 | — | 72,033,809 | |||||||||||||||
Value of Shares Redeemed | (307,889,188 | ) | (42,286,488 | ) | (1,694,175 | ) | — | (622,577 | ) | |||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 94,341,698 | 14,837,631 | 3,744,614 | — | 71,411,232 | |||||||||||||||
Net Increase (Decrease) in Net Assets | 111,358,252 | 17,366,219 | 5,314,637 | 883,197 | 72,035,265 | |||||||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of Period | 25,657,093 | 8,290,874 | 7,345,606 | 6,462,409 | — | |||||||||||||||
End of Period | $ | 137,015,345 | $ | 25,657,093 | $ | 12,660,243 | $ | 7,345,606 | $ | 72,035,265 | ||||||||||
Undistributed Net Investment Income (Loss) | $ | 552,118 | $ | 20,680 | $ | — | $ | 2,589 | $ | 142,685 | ||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 625,000 | 250,000 | 225,000 | 225,000 | — | |||||||||||||||
Shares Sold | 8,600,000 | 1,500,000 | 150,000 | — | 2,875,000 | |||||||||||||||
Shares Repurchased | (6,550,000 | ) | (1,125,000 | ) | (50,000 | ) | — | (25,000 | ) | |||||||||||
End of Period | 2,675,000 | 625,000 | 325,000 | 225,000 | 2,850,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
198
ADVISORSHARES TRUST
Statements of Cash Flows
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Athena International Bear ETF | AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF | |||||||||||||
For the year ended June 30, 2014 | For the period July 18, 2013* to June 30, 2014 | For the year ended June 30, 2014 | For the year ended June 30, 2014 | |||||||||||||
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES: | ||||||||||||||||
Dividends and Interest received | $ | 829,193 | $ | 2,496 | $ | 62,666 | $ | 109,485 | ||||||||
Operating expenses paid | (584,000 | ) | (8,268 | ) | (78,284 | ) | (2,852,382 | ) | ||||||||
Net purchases of short-term investments | (961,696 | ) | (51,503 | ) | 264,345 | 33,368,924 | ||||||||||
Realized gain (loss) on swap and option contracts | (2,622,244 | ) | — | 6,088 | — | |||||||||||
Purchases of long-term investments | (130,487,517 | ) | (705,000 | ) | (16,265,276 | ) | (29,997,150 | ) | ||||||||
Proceeds from disposition of long-term investments | 150,565,809 | — | 11,982,633 | — | ||||||||||||
Increase/Decrease in receivables for securities sold | — | — | 298,378 | 10,145,537 | ||||||||||||
Increase/Decrease in payables for securities purchased | (1,068,007 | ) | — | (331,779 | ) | (23,355,764 | ) | |||||||||
Net increase in short sales | (10,559,894 | ) | 568,074 | 733,348 | (106,166,674 | ) | ||||||||||
Dividends paid | (120,503 | ) | (35,667 | ) | — | (1,021,818 | ) | |||||||||
Interest paid | (143,807 | ) | (15,376 | ) | (12,983 | ) | (1,058,848 | ) | ||||||||
Net Cash Flows Provided (Used) By Operating Activities | 4,847,334 | (245,244 | ) | (3,340,864 | ) | (120,828,690 | ) | |||||||||
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES: | ||||||||||||||||
Distributions from net investment income and realized gains | — | — | (119,153 | ) | — | |||||||||||
Net proceeds from sale of shares | (13,593,463 | ) | 1,362,843 | 4,147,558 | (6,579,258 | ) | ||||||||||
Deposits with brokers for swap contracts and short sales | 10,346,416 | (517,047 | ) | (717,794 | ) | 87,101,683 | ||||||||||
Net Cash Flows Provided (Used) By Financing Activities | (3,247,047 | ) | 845,796 | 3,310,611 | 80,522,425 | |||||||||||
NET INCREASE/DECREASE IN CASH | 1,600,287 | 600,552 | (30,253 | ) | (40,306,265 | ) | ||||||||||
Cash, Beginning of period | (1,588,335 | ) | — | 33,117 | 116,415,412 | |||||||||||
Cash, End of period | $ | 11,952 | $ | 600,552 | $ | 2,864 | $ | 76,109,147 | ||||||||
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 | $ | (2,006,338 | ) | $ | (342,885 | ) | $ | 582,601 | $ | (57,094,172 | ) | |||||
Increase/Decrease in investments, at value | 7,076,946 | 81,443 | (3,904,534 | ) | (50,422,762 | ) | ||||||||||
Increase/Decrease in payable for securities purchased | (1,068,007 | ) | — | (331,779 | ) | (23,355,764 | ) | |||||||||
Increase/Decrease in receivable for securities sold | — | — | 298,378 | 10,145,537 | ||||||||||||
Increase/Decrease in dividends and interest receivable | 317,207 | (61 | ) | (3,143 | ) | 1,829 | ||||||||||
Increase/Decrease in unrealized appreciation (depreciation) on swaps | 712,386 | — | (5,101 | ) | — | |||||||||||
Increase/Decrease in prepaid expense | (550 | ) | (7,750 | ) | 74 | 1,705 | ||||||||||
Increase/Decrease in interest payable | (56,352 | ) | — | (108 | ) | (31,030 | ) | |||||||||
Increase/Decrease in dividends payable | (120,503 | ) | 190 | — | 7,419 | |||||||||||
Increase/Decrease in accrued expenses | (7,455 | ) | 23,819 | 22,748 | (81,452 | ) | ||||||||||
Total Adjustments | 6,853,672 | 97,641 | (3,923,465 | ) | (63,734,518 | ) | ||||||||||
Net Cash Flows Provided (Used) By Operating Activities | $ | 4,847,334 | $ | (245,244 | ) | $ | (3,340,864 | ) | $ | (120,828,690 | ) |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
199
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Accuvest Global Long Short ETF | ||||||||||||||||
Year ended June 30, 2014 | 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)(2) | (0.08 | ) | (0.34 | ) | (0.68 | ) | (0.67 | ) | ||||||||
Net Realized and Unrealized Gain (Loss) | (1.03 | ) | 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 | (1.11 | ) | 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 | $ | 20.72 | $ | 21.83 | $ | 21.20 | $ | 20.86 | ||||||||
Market Value, End of Period | $ | 20.72 | $ | 21.98 | $ | 21.22 | $ | 20.86 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | (5.08 | )% | 2.97 | % | 3.15 | % | (16.56 | )% | ||||||||
Total Investment Return Based on Market(4) | (5.73 | )% | 3.58 | % | 3.24 | % | (16.56 | )% | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 25,896 | $ | 42,573 | $ | 18,022 | $ | 9,385 | ||||||||
Ratio to Average Net Assets of: | ||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 1.89 | % | 4.25 | % | 8.15 | % | 3.33 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.66 | % | 1.79 | % | 3.88 | % | 1.73 | % | ||||||||
Net investment Income (Loss)(5) | (0.39 | )% | (1.57 | )% | (3.20 | )% | (2.82 | )% | ||||||||
Portfolio Turnover Rate(6) | 226 | % | 270 | % | 365 | % | 751 | % |
* | Commencement of operations. |
(1) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
(2) | Based on average shares outstanding. |
(3) | Less than $0.005. |
(4) | 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. |
(5) | Ratios of periods of less than one year have been annualized. |
(6) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund's capital shares. |
See accompanying Notes to Financial Statements.
200
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||
AdvisorShares Accuvest Global Opportunities ETF | AdvisorShares Athena International Bear ETF | AdvisorShares Cambria Global Tactical ETF | ||||||||||||||||||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | For the period January 25, 2012* to June 30, 2012 | For the period July 18, 2013* to June 30, 2014 | Year ended June 30, 2014 | 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 | $ | 26.41 | $ | 24.44 | $ | 25.00 | $ | 25.00 | $ | 23.78 | $ | 23.69 | $ | 25.92 | $ | 25.10 | ||||||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | 0.23 | 0.12 | 0.31 | (0.99 | ) | 0.30 | 0.38 | 0.21 | 0.25 | |||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 1.07 | 2.16 | (0.87 | ) | (3.61 | ) | 2.11 | 0.27 | (2.24 | ) | 0.79 | |||||||||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | — | 0.00 | (3) | — | — | |||||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from InvestmentOperations | 1.30 | 2.28 | (0.56 | ) | (4.60 | ) | 2.41 | 0.65 | (2.03 | ) | 1.04 | |||||||||||||||||||||||||
Distributions from Net Investment Income | (0.21 | ) | (0.31 | ) | — | — | — | (0.56 | ) | — | (0.22 | ) | ||||||||||||||||||||||||
Distributions from Realized Capital Gains | — | — | — | — | — | — | (0.20 | ) | — | |||||||||||||||||||||||||||
Total Distributions | (0.21 | ) | (0.31 | ) | — | — | — | (0.56 | ) | (0.20 | ) | (0.22 | ) | |||||||||||||||||||||||
Net Asset Value, End of Period | $ | 27.50 | $ | 26.41 | $ | 24.44 | $ | 20.40 | $ | 26.19 | $ | 23.78 | $ | 23.69 | $ | 25.92 | ||||||||||||||||||||
Market Value, End of Period | $ | 27.48 | $ | 26.41 | $ | 24.45 | $ | 20.38 | $ | 26.16 | $ | 23.79 | $ | 23.64 | $ | 25.93 | ||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 4.89 | % | 9.25 | % | (2.24 | )% | (18.40 | )% | 10.13 | % | 2.68 | % | (7.84 | )% | 4.17 | % | ||||||||||||||||||||
Total Investment Return Based on Market(4) | 4.83 | % | 9.18 | % | (2.20 | )% | (18.48 | )% | 9.96 | % | 2.92 | % | (8.07 | )% | 4.20 | % | ||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 25,434 | $ | 17,830 | $ | 13,442 | $ | 1,020 | $ | 36,667 | $ | 49,942 | $ | 78,171 | $ | 178,837 | ||||||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.25 | % | 1.25 | % | 1.25 | % | 1.50 | % | 1.25 | % | 1.15 | % | 0.99 | % | 1.02 | % | ||||||||||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 1.52 | % | 1.54 | % | 2.27 | % | 10.67 | % | 1.24 | % | 1.15 | % | 1.08 | % | 1.04 | % | ||||||||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.52 | % | 1.54 | % | 2.27 | % | 7.52 | % | 1.24 | % | 1.15 | % | 1.08 | % | 1.04 | % | ||||||||||||||||||||
Net investment Income (Loss)(5) | 0.86 | % | 0.45 | % | 2.90 | % | (4.49 | )% | 1.19 | % | 1.54 | % | 0.87 | % | 1.45 | % | ||||||||||||||||||||
Portfolio Turnover Rate(6) | 188 | % | 100 | % | 135 | % | 481 | % | 232 | % | 236 | % | 475 | % | 187 | % |
See accompanying Notes to Financial Statements.
201
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
AdvisorShares EquityPro ETF(1) | AdvisorShares Gartman Gold/British Pound ETF (consolidated) | AdvisorShares Gartman Gold/Euro ETF (consolidated) | AdvisorShares Gartman Gold/Yen ETF (consolidated) | |||||||||||||||||
Year ended June 30, 2014 | For the period July 10, 2012* to June 30, 2013 | For the period February 11, 2014* to June 30, 2014 | For the period February 11, 2014* to June 30, 2014 | For the period February 11, 2014* to June 30, 2014 | ||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 27.13 | $ | 25.00 | $ | 12.80 | $ | 12.80 | $ | 12.80 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (Loss)(2) | 1.24 | 0.22 | (0.03 | ) | (0.03 | ) | (0.03 | ) | ||||||||||||
Net Realized and Unrealized Gain (Loss) | 4.08 | 2.06 | (0.21 | ) | 0.25 | 0.17 | ||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | — | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 5.32 | 2.28 | (0.24 | ) | 0.22 | 0.14 | ||||||||||||||
Distributions from Net Investment Income | (0.34 | ) | (0.13 | ) | — | — | — | |||||||||||||
Distributions from Realized Capital Gains | — | (0.02 | ) | — | — | — | ||||||||||||||
Total Distributions | (0.34 | ) | (0.15 | ) | — | — | — | |||||||||||||
Net Asset Value, End of Period | $ | 32.11 | $ | 27.13 | $ | 12.56 | $ | 13.02 | $ | 12.94 | ||||||||||
Market Value, End of Period | $ | 32.11 | $ | 27.12 | $ | 12.61 | $ | 13.07 | $ | 13.04 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 19.71 | % | 9.16 | % | (1.88 | )% | 1.72 | % | 1.09 | % | ||||||||||
Total Investment Return Based on Market(4) | 19.76 | % | 9.11 | % | (1.48 | )% | 2.11 | % | 1.88 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 20,070 | $ | 1,357 | $ | 1,256 | $ | 1,302 | $ | 3,881 | ||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.25 | % | 1.25 | % | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 1.92 | % | 6.95 | % | 10.87 | % | 10.72 | % | 4.74 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.92 | % | 6.95 | % | 10.87 | % | 10.72 | % | 4.74 | % | ||||||||||
Net investment Income (Loss)(5) | 4.13 | % | 0.88 | % | (0.63 | )% | (0.63 | )% | (0.63 | )% | ||||||||||
Portfolio Turnover Rate(6) | 21 | % | 43 | % | 0 | % | 0 | % | 0 | % |
* | Commencement of operations. |
(1) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
(2) | Based on average shares outstanding. |
(3) | Less than $0.005. |
(4) | 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. |
(5) | Ratios of periods of less than one year have been annualized. |
(6) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund's capital shares. |
See accompanying Notes to Financial Statements.
202
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||
AdvisorShares Global Echo ETF | AdvisorShares International Gold ETF | AdvisorShares Madrona Domestic ETF | ||||||||||||||||||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | For the period May 23, 2012* to June 30, 2012 | For the period February 11, 2014* to June 30, 2014 | Year ended June 30, 2014 | 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 | $ | 54.38 | $ | 50.80 | $ | 50.00 | $ | 12.80 | $ | 32.34 | $ | 25.31 | $ | 26.07 | $ | 25.00 | ||||||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | 0.22 | (0.07 | ) | (0.02 | ) | (0.05 | ) | 0.11 | 0.15 | 0.10 | 0.00 | (3) | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 6.86 | 3.88 | 0.82 | 0.13 | 8.91 | 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 | 7.08 | 3.81 | 0.80 | 0.08 | 9.02 | 7.16 | (0.69 | ) | 1.07 | |||||||||||||||||||||||||||
Distributions from Net Investment Income | (0.02 | ) | — | — | — | (0.10 | ) | (0.13 | ) | (0.07 | ) | — | ||||||||||||||||||||||||
Distributions from Realized Capital Gains | — | (0.23 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total Distributions | (0.02 | ) | (0.23 | ) | — | — | (0.10 | ) | (0.13 | ) | (0.07 | ) | — | |||||||||||||||||||||||
Net Asset Value, End of Period | $ | 61.44 | $ | 54.38 | $ | 50.80 | $ | 12.88 | $ | 41.26 | $ | 32.34 | $ | 25.31 | $ | 26.07 | ||||||||||||||||||||
Market Value, End of Period | $ | 61.46 | $ | 54.53 | $ | 50.99 | $ | 12.78 | $ | 41.26 | $ | 32.34 | $ | 25.28 | $ | 26.07 | ||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 13.03 | % | 7.54 | % | 1.60 | % | 0.63 | % | 27.93 | % | 28.37 | % | (2.65 | )% | 4.28 | % | ||||||||||||||||||||
Total Investment Return Based on Market(4) | 12.75 | % | 7.43 | % | 1.98 | % | (0.16 | )% | 27.93 | % | 28.52 | % | (2.76 | )% | 4.28 | % | ||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 9,216 | $ | 5,438 | $ | 5,080 | $ | 1,288 | $ | 24,755 | $ | 18,593 | $ | 15,188 | $ | 2,607 | ||||||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.50 | % | 1.50 | % | 1.50 | % | 0.95 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 1.50 | % | 1.50 | % | 1.50 | % | 10.36 | % | 1.42 | % | 1.61 | % | 1.46 | % | 10.96 | % | ||||||||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.50 | % | 1.50 | % | 1.50 | % | 10.36 | % | 1.42 | % | 1.61 | % | 1.46 | % | 10.96 | % | ||||||||||||||||||||
Net investment Income (Loss)(5) | 0.37 | % | (0.13 | )% | (0.32 | )% | (0.95 | )% | 0.31 | % | 0.51 | % | 0.40 | % | 0.23 | % | ||||||||||||||||||||
Portfolio Turnover Rate(6) | 157 | % | 180 | % | 70 | % | 2 | % | 14 | % | 33 | % | 40 | % | 0 | % |
See accompanying Notes to Financial Statements.
203
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Madrona Global Bond ETF | ||||||||||||||||
Year ended June 30, 2014 | 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 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (Loss)(2) | 0.86 | 0.72 | 0.71 | 0.01 | ||||||||||||
Net Realized and Unrealized Gain (Loss) | 1.30 | (0.66 | ) | 0.67 | — | |||||||||||
Distributions of Net Realized Gains by other investment companies | — | 0.01 | — | — | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 2.16 | 0.07 | 1.38 | 0.01 | ||||||||||||
Distributions from Net Investment Income | (0.85 | ) | (0.71 | ) | (0.70 | ) | — | |||||||||
Distributions from Realized Capital Gains | — | (0.00 | )(3) | — | — | |||||||||||
Total Distributions | (0.85 | ) | (0.71 | ) | (0.70 | ) | — | |||||||||
Net Asset Value, End of Period | $ | 26.36 | $ | 25.05 | $ | 25.69 | $ | 25.01 | ||||||||
Market Value, End of Period | $ | 26.42 | $ | 24.96 | $ | 25.68 | $ | 25.02 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 8.80 | % | 0.20 | % | 5.59 | % | 0.04 | % | ||||||||
Total Investment Return Based on Market(4) | 9.44 | % | (0.13 | )% | 5.49 | % | 0.08 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 24,383 | $ | 22,543 | $ | 21,195 | $ | 2,501 | ||||||||
Ratio to Average Net Assets of: | ||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 1.07 | % | 1.02 | % | 0.99 | % | 11.08 | % | ||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.07 | % | 1.02 | % | 0.99 | % | 11.08 | % | ||||||||
Net investment Income (Loss)(5) | 3.36 | % | 2.73 | % | 2.81 | % | 1.68 | % | ||||||||
Portfolio Turnover Rate(6) | 20 | % | 28 | % | 12 | % | 0 | % |
* | Commencement of operations. |
(1) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
(2) | Based on average shares outstanding. |
(3) | Less than $0.005. |
(4) | 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. |
(5) | Ratios of periods of less than one year have been annualized. |
(6) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund's capital shares. |
See accompanying Notes to Financial Statements.
204
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||
AdvisorShares Madrona International ETF | AdvisorShares Meidell Tactical Advantage ETF | |||||||||||||||||||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2012 | For the period June 21, 2011* to June 30, 2011 | Year ended June 30, 2014 | 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 | $ | 23.97 | $ | 21.06 | $ | 26.17 | $ | 25.00 | $ | 28.33 | $ | 25.12 | $ | 25.06 | $ | 25.00 | ||||||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | 0.41 | 0.39 | 0.32 | 0.01 | 0.14 | 0.14 | 0.00 | (3) | 0.01 | |||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 5.77 | 2.82 | (5.33 | ) | 1.16 | 1.53 | 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 | 6.18 | 3.21 | (5.01 | ) | 1.17 | 1.67 | 3.44 | 0.08 | 0.06 | |||||||||||||||||||||||||||
Distributions from Net Investment Income | (0.49 | ) | (0.30 | ) | (0.08 | ) | — | — | (0.23 | ) | (0.02 | ) | — | |||||||||||||||||||||||
Distributions from Realized Capital Gains | — | — | (0.02 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Total Distributions | (0.49 | ) | (0.30 | ) | (0.10 | ) | — | — | (0.23 | ) | (0.02 | ) | — | |||||||||||||||||||||||
Net Asset Value, End of Period | $ | 29.66 | $ | 23.97 | $ | 21.06 | $ | 26.17 | $ | 30.00 | $ | 28.33 | $ | 25.12 | $ | 25.06 | ||||||||||||||||||||
Market Value, End of Period | $ | 29.58 | $ | 23.95 | $ | 21.11 | $ | 26.18 | $ | 30.00 | $ | 28.37 | $ | 25.48 | $ | 25.07 | ||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 25.91 | % | 15.24 | % | (19.11 | )% | 4.68 | % | 5.89 | % | 13.81 | % | 0.31 | % | 0.24 | % | ||||||||||||||||||||
Total Investment Return Based on Market(4) | 25.64 | % | 14.86 | % | (18.95 | )% | 4.72 | % | 5.75 | % | 12.33 | % | 1.71 | % | 0.28 | % | ||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 19,279 | $ | 14,978 | $ | 14,219 | $ | 2,617 | $ | 15,750 | $ | 9,209 | $ | 5,652 | $ | 2,506 | ||||||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.35 | % | 1.35 | % | 1.35 | % | 1.35 | % | ||||||||||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 1.55 | % | 1.65 | % | 1.54 | % | 10.99 | % | 2.12 | % | 2.99 | % | 3.69 | % | 13.70 | % | ||||||||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.55 | % | 1.65 | % | 1.54 | % | 10.99 | % | 2.12 | % | 2.99 | % | 3.69 | % | 13.70 | % | ||||||||||||||||||||
Net investment Income (Loss)(5) | 1.48 | % | 1.65 | % | 1.48 | % | 1.14 | % | 0.49 | % | 0.51 | % | 0.01 | % | 1.00 | % | ||||||||||||||||||||
Portfolio Turnover Rate(6) | 182 | % | 93 | % | 110 | % | 19 | % | 687 | % | 605 | % | 817 | % | 5 | % |
See accompanying Notes to Financial Statements.
205
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ||||||
AdvisorShares Newfleet Multi-Sector Income ETF | ||||||||
Year ended June 30, 2014 | For the period March 19, 2013* to June 30, 2013 | |||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||
Net Asset Value, Beginning of Period | $ | 49.04 | $ | 50.00 | ||||
Investment Operations | ||||||||
Net Investment Income (Loss)(2) | 1.26 | 0.28 | ||||||
Net Realized and Unrealized Gain (Loss) | 0.99 | (0.99 | ) | |||||
Distributions of Net Realized Gains by other investment companies | — | — | ||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 2.25 | (0.71 | ) | |||||
Distributions from Net Investment Income | (1.35 | ) | (0.25 | ) | ||||
Distributions from Realized Capital Gains | — | — | ||||||
Total Distributions | (1.35 | ) | (0.25 | ) | ||||
Net Asset Value, End of Period | $ | 49.94 | $ | 49.04 | ||||
Market Value, End of Period | $ | 49.94 | $ | 49.01 | ||||
Total Return | ||||||||
Total Investment Return Based on Net Asset Value(4) | 4.65 | % | (1.42 | )% | ||||
Total Investment Return Based on Market(4) | 4.70 | % | (1.48 | )% | ||||
Ratios/Supplemental Data | ||||||||
Net Assets, End of Period (000's omitted) | $ | 154,811 | $ | 83,362 | ||||
Ratio to Average Net Assets of: | ||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 0.75 | % | 0.75 | % | ||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 0.83 | % | 1.13 | % | ||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 0.83 | % | 1.13 | % | ||||
Net investment Income (Loss)(5) | 2.55 | % | 1.98 | % | ||||
Portfolio Turnover Rate(6) | 85 | % | 105 | % |
* | Commencement of operations. |
(1) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
(2) | Based on average shares outstanding. |
(3) | Less than $0.005. |
(4) | 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. |
(5) | Ratios of periods of less than one year have been annualized. |
(6) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund's capital shares. |
See accompanying Notes to Financial Statements.
206
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||
AdvisorShares Peritus High Yield ETF | AdvisorShares Pring Turner Business Cycle ETF | |||||||||||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2012 | For the period December 1, 2010* to June 30, 2011 | Year ended June 30, 2014 | For the period December 18, 2012* to June 30, 2013 | |||||||||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 50.43 | $ | 48.59 | $ | 51.59 | $ | 50.00 | $ | 25.46 | $ | 25.00 | ||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | 4.14 | 4.28 | 4.20 | 2.25 | 0.24 | 0.18 | ||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 2.69 | 1.66 | (2.74 | ) | 1.30 | 3.60 | 0.28 | |||||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | 0.00 | (3) | — | — | — | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 6.83 | 5.94 | 1.46 | 3.55 | 3.84 | 0.46 | ||||||||||||||||||||||
Distributions from Net Investment Income | (3.95 | ) | (4.09 | ) | (3.99 | ) | (1.96 | ) | (0.30 | ) | — | |||||||||||||||||
Distributions from Realized Capital Gains | (0.04 | ) | (0.01 | ) | (0.47 | ) | — | — | — | |||||||||||||||||||
Total Distributions | (3.99 | ) | (4.10 | ) | (4.46 | ) | (1.96 | ) | (0.30 | ) | — | |||||||||||||||||
Net Asset Value, End of Period | $ | 53.27 | $ | 50.43 | $ | 48.59 | $ | 51.59 | $ | 29.00 | $ | 25.46 | ||||||||||||||||
Market Value, End of Period | $ | 53.27 | $ | 49.91 | $ | 48.64 | $ | 51.87 | $ | 29.04 | $ | 25.47 | ||||||||||||||||
Total Return | ||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 14.04 | % | 12.58 | % | 3.27 | % | 7.16 | % | 15.19 | % | 1.84 | % | ||||||||||||||||
Total Investment Return Based on Market(4) | 15.20 | % | 11.29 | % | 2.75 | % | 7.73 | % | 15.30 | % | 1.88 | % | ||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 1,075,997 | $ | 259,729 | $ | 92,328 | $ | 43,851 | $ | 5,074 | $ | 5,729 | ||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.18 | % | 1.25 | % | 1.35 | % | 1.34 | % | 1.49 | % | 1.49 | % | ||||||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 1.18 | % | 1.23 | % | 1.35 | % | 1.57 | % | 2.55 | % | 4.70 | % | ||||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.18 | % | 1.23 | % | 1.35 | % | 1.57 | % | 2.55 | % | 4.70 | % | ||||||||||||||||
Net investment Income (Loss)(5) | 7.95 | % | 8.44 | % | 8.64 | % | 7.47 | % | 0.91 | % | 1.35 | % | ||||||||||||||||
Portfolio Turnover Rate(6) | 87 | % | 37 | % | 80 | % | 81 | % | 35 | % | 26 | % |
See accompanying Notes to Financial Statements.
207
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ||||||
AdvisorShares QAM Equity Hedge ETF | ||||||||
Year ended June 30, 2014 | 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 | $ | 26.21 | $ | 25.00 | ||||
Investment Operations | ||||||||
Net Investment Income (Loss)(2) | (0.20 | ) | (0.12 | ) | ||||
Net Realized and Unrealized Gain (Loss) | 2.95 | 1.51 | ||||||
Distributions of Net Realized Gains by other investment companies | — | — | ||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 2.75 | 1.39 | ||||||
Distributions from Net Investment Income | — | (0.08 | ) | |||||
Distributions from Realized Capital Gains | (0.48 | ) | (0.10 | ) | ||||
Total Distributions | (0.48 | ) | (0.18 | ) | ||||
Net Asset Value, End of Period | $ | 28.48 | $ | 26.21 | ||||
Market Value, End of Period | $ | 28.45 | $ | 26.16 | ||||
Total Return | ||||||||
Total Investment Return Based on Net Asset Value(4) | 10.52 | % | 5.57 | % | ||||
Total Investment Return Based on Market(4) | 10.62 | % | 5.36 | % | ||||
Ratios/Supplemental Data | ||||||||
Net Assets, End of Period (000's omitted) | $ | 8,543 | $ | 3,932 | ||||
Ratio to Average Net Assets of: | ||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.50 | % | 1.50 | % | ||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 2.66 | % | 4.61 | % | ||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 2.46 | % | 4.55 | % | ||||
Net investment Income (Loss)(5) | (0.71 | )% | (0.50 | )% | ||||
Portfolio Turnover Rate(6) | 179 | % | 114 | % |
* | Commencement of operations. |
(1) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
(2) | Based on average shares outstanding. |
(3) | Less than $0.005. |
(4) | 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. |
(5) | Ratios of periods of less than one year have been annualized. |
(6) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund's capital shares. |
See accompanying Notes to Financial Statements.
208
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||
AdvisorShares Ranger Equity Bear ETF | AdvisorShares Sage Core Reserves ETF | AdvisorShares STAR Global Buy-Write ETF | ||||||||||||||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2012 | For the period January 27, 2011* to June 30, 2011 | For the period January 14, 2014* to June 30, 2014 | Year ended June 30, 2014 | 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 | $ | 100.00 | $ | 23.61 | $ | 25.00 | ||||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | (0.38 | ) | (0.60 | ) | (0.72 | ) | (0.30 | ) | 0.36 | (0.10 | ) | (0.03 | ) | |||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (4.01 | ) | �� | (6.56 | ) | 1.40 | (2.05 | ) | (0.25 | ) | 2.67 | (1.16 | ) | |||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | (4.39 | ) | (7.16 | ) | 0.68 | (2.35 | ) | 0.11 | 2.57 | (1.19 | ) | |||||||||||||||||||||
Distributions from Net Investment Income | — | — | — | — | (0.33 | ) | — | (0.17 | ) | |||||||||||||||||||||||
Distributions from Realized Capital Gains | — | — | — | — | — | — | (0.03 | ) | ||||||||||||||||||||||||
Total Distributions | — | — | — | — | (0.33 | ) | — | (0.20 | ) | |||||||||||||||||||||||
Net Asset Value, End of Period | $ | 11.78 | $ | 16.17 | $ | 23.33 | $ | 22.65 | $ | 99.78 | $ | 26.18 | $ | 23.61 | ||||||||||||||||||
Market Value, End of Period | $ | 11.79 | $ | 16.16 | $ | 23.34 | $ | 22.65 | $ | 99.80 | $ | 26.22 | $ | 23.62 | ||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | (27.15 | )% | (30.69 | )% | 3.00 | % | (9.40 | )% | 0.11 | % | 10.89 | % | (4.80 | )% | ||||||||||||||||||
Total Investment Return Based on Market(4) | (27.04 | )% | (30.76 | )% | 3.05 | % | (9.40 | )% | 0.13 | % | 11.01 | % | (4.76 | )% | ||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 161,952 | $ | 218,357 | $ | 313,223 | $ | 50,389 | $ | 37,419 | $ | 27,490 | $ | 22,428 | ||||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.65 | % | 1.61 | % | 1.69 | % | 1.79 | % | 0.35 | % | 1.85 | % | 1.85 | % | ||||||||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 2.87 | % | 3.12 | % | 3.06 | % | 3.16 | % | 0.73 | % | 1.79 | % | 2.35 | % | ||||||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.65 | % | 1.61 | % | 1.68 | % | 1.88 | % | 0.73 | % | 1.79 | % | 2.35 | % | ||||||||||||||||||
Net investment Income (Loss)(5) | (2.81 | )% | (3.11 | )% | (3.06 | )% | (3.07 | )% | 0.78 | % | (0.42 | )% | (0.14 | )% | ||||||||||||||||||
Portfolio Turnover Rate(6) | 484 | % | 697 | % | 756 | % | 635 | % | 12 | % | 166 | % | 40 | % |
See accompanying Notes to Financial Statements.
209
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares TrimTabs Float Shrink ETF | ||||||||||||
Year ended June 30, 2014 | 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)(2) | 0.43 | 0.23 | 0.07 | |||||||||
Net Realized and Unrealized Gain (Loss) | 9.89 | 7.99 | 6.90 | |||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | |||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 10.32 | 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 | $ | 51.22 | $ | 41.05 | $ | 33.16 | ||||||
Market Value, End of Period | $ | 51.25 | $ | 41.13 | $ | 33.24 | ||||||
Total Return | ||||||||||||
Total Investment Return Based on Net Asset Value(4) | 25.18 | % | 25.01 | % | 26.62 | % | ||||||
Total Investment Return Based on Market(4) | 25.00 | % | 24.96 | % | 26.93 | % | ||||||
Ratios/Supplemental Data | ||||||||||||
Net Assets, End of Period (000's omitted) | $ | 137,015 | $ | 25,657 | $ | 8,291 | ||||||
Ratio to Average Net Assets of: | ||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 0.99 | % | 0.99 | % | 0.99 | % | ||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 1.16 | % | 1.90 | % | 2.34 | % | ||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.16 | % | 1.90 | % | 2.34 | % | ||||||
Net investment Income (Loss)(5) | 0.90 | % | 0.62 | % | 0.31 | % | ||||||
Portfolio Turnover Rate(6) | 7 | % | 57 | % | 201 | % |
* | Commencement of operations. |
(1) | Formerly known as, AdvisorShares Global Alpha & Beta ETF. |
(2) | Based on average shares outstanding. |
(3) | Less than $0.005. |
(4) | 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. |
(5) | Ratios of periods of less than one year have been annualized. |
(6) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund's capital shares. |
See accompanying Notes to Financial Statements.
210
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | AdvisorShares YieldPro ETF | |||||||||||||||||||||||
Year ended June 30, 2014 | Year ended June 30, 2013 | Year ended June 30, 2012 | For the period July 21, 2010* to June 30, 2011 | For the period March 4, 2014* to June 30, 2014 | ||||||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 32.65 | $ | 28.72 | $ | 31.46 | $ | 25.00 | $ | 25.00 | ||||||||||||||
Investment Operations | ||||||||||||||||||||||||
Net Investment Income (Loss)(2) | 0.18 | 0.11 | 0.07 | 0.15 | 0.29 | |||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 6.29 | 3.99 | (2.58 | ) | 6.40 | 0.20 | ||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | 0.00 | (3) | — | — | — | ||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations | 6.47 | 4.10 | (2.51 | ) | 6.55 | 0.49 | ||||||||||||||||||
Distributions from Net Investment Income | (0.17 | ) | (0.17 | ) | (0.11 | ) | (0.09 | ) | (0.21 | ) | ||||||||||||||
Distributions from Realized Capital Gains | — | — | (0.12 | ) | — | — | ||||||||||||||||||
Total Distributions | (0.17 | ) | (0.17 | ) | (0.23 | ) | (0.09 | ) | (0.21 | ) | ||||||||||||||
Net Asset Value, End of Period | $ | 38.95 | $ | 32.65 | $ | 28.72 | $ | 31.46 | $ | 25.28 | ||||||||||||||
Market Value, End of Period | $ | 38.93 | $ | 32.63 | $ | 28.70 | $ | 31.58 | $ | 25.31 | ||||||||||||||
Total Return | ||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(4) | 19.85 | % | 14.30 | % | (7.94 | )% | 26.21 | % | 1.95 | % | ||||||||||||||
Total Investment Return Based on Market(4) | 19.85 | % | 14.29 | % | (8.36 | )% | 26.69 | % | 2.07 | % | ||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net Assets, End of Period (000's omitted) | $ | 12,660 | $ | 7,346 | $ | 6,462 | $ | 8,651 | $ | 72,035 | ||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.07 | % | ||||||||||||||
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5) | 1.67 | % | 2.52 | % | 4.17 | % | 3.04 | % | 1.07 | % | ||||||||||||||
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5) | 1.67 | % | 2.52 | % | 4.17 | % | 3.04 | % | 1.07 | % | ||||||||||||||
Net investment Income (Loss)(5) | 0.50 | % | 0.36 | % | 0.24 | % | 0.52 | % | 3.64 | % | ||||||||||||||
Portfolio Turnover Rate(6) | 24 | % | 38 | % | 16 | % | 34 | % | 8 | % |
See accompanying Notes to Financial Statements.
211
ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2014
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 24 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 Gartman Gold/British Pound ETF | GGBP | February 11, 2014 | ||||||
AdvisorShares Gartman Gold/Euro ETF | GEUR | February 11, 2014 | ||||||
AdvisorShares Gartman Gold/Yen ETF | GYEN | February 11, 2014 | ||||||
AdvisorShares Global Echo ETF | GIVE | May 23, 2012 | ||||||
AdvisorShares International Gold ETF | GLDE | February 11, 2014 | ||||||
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 Sage Core Reserves ETF | HOLD | January 14, 2014 | ||||||
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 | ||||||
AdvisorShares YieldPro ETF | YPRO | March 4, 2014 |
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.
212
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
1. Organization - (continued)
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.
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. 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 Gartman Gold/British Pound ETF (“Gartman Gold/British Pound ETF”) seeks to provide positive returns by utilizing the British pound to invest its assets in the gold market. GGBP offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar. The British pound is obtained through the sale of either exchange-traded currency futures or “over-the-counter” foreign exchange forward contracts.
AdvisorShares Gartman Gold/Euro ETF (“Gartman Gold/Euro ETF”) seeks to provide positive returns by utilizing the European Union’s Euro to invest its assets in the gold market. GEUR offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar. Euros are obtained through the sale of either exchange-traded currency futures or “over-the-counter” foreign exchange forward contracts.
AdvisorShares Gartman Gold/Yen ETF (“Gartman Gold/Yen ETF”) seeks to provide positive returns by utilizing the Japanese yen to invest its assets in the gold market. GYEN offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar. The Japanese yen is obtained through the sale of either exchange-traded currency futures or “over-the-counter” foreign exchange forward contracts.
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, and actively managed ETF with a focus on sustainable investing.
AdvisorShares International Gold ETF (“International Gold ETF”) seeks to provide positive absolute returns by investing in exchange-traded products (ETPs) that provide diversified exposure to the international gold market. GLDE offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar.
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.
213
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
1. Organization - (continued)
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. 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, 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 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. 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.
214
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
1. Organization - (continued)
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. 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 Sage Core Reserves ETF (“Sage Core Reserves ETF”) seeks to preserve capital while maximizing income. The Sub-Advisor seeks to achieve the fund’s investment objective by investing in a variety of fixed income securities, including bonds, forwards and instruments issued by U.S. and foreign issuers. It will invest in U.S. dollar-denominated investment grade debt securities, including mortgage- or asset-backed securities, rated Baa- or higher by Moody’s Investors Service, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s Ratings Services (“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by the Sub-Advisor to be of comparable quality.
AdvisorShares STAR Global Buy-Write ETF (“STAR Global Buy-Write ETF”) seeks consistent repeatable returns across all market cycles. 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.
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.
215
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
1. Organization - (continued)
AdvisorShares YieldPro ETF (“YieldPro ETF”) seeks to provide current income and capital appreciation. The fund is considered a “fund of funds” that seeks to achieve its investment objective by primarily investing in both long and short positions in other affiliated and unaffiliated exchange traded funds (“ETFs”) that offer diversified exposure to fixed income and other income producing securities. It may also invest in equity, inverse or other types of ETFs to supplement its fixed income ETF positions. The fund intends to invest the majority of its assets in investments that provide a competitive yield on a risk-adjusted basis.
2. Consolidation of Subsidiaries
The Consolidated Schedules of Investments; Consolidated Statements of Assets and Liabilities, of Operations and of Changes in Net Assets; and the Consolidated Financial Highlights of the ETFs listed below include the accounts of wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.
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Funds | Wholly Owned Subsidiary | |
Gartman Gold/British Pound ETF | AdvisorShares Gartman Gold/British Pound CFC | |
Gartman Gold/Euro ETF | AdvisorShares Gartman Gold/Euro CFC | |
Gartman Gold/Yen ETF | AdvisorShares Gartman Gold/Yen CFC |
A summary of each ETF’s investment in its corresponding subsidiary is as follows:
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Funds | Inception Date of Subsidiary | Subsidiary Net Assets at June 30, 2014 | % of ETF’s Total Net Assets at June 30, 2014 | |||||||||
Gartman Gold/British Pound ETF | February 11, 2014 | $ | 140,955 | 11.2 | % | |||||||
Gartman Gold/Euro ETF | February 11, 2014 | 140,955 | 10.8 | |||||||||
Gartman Gold/Yen ETF | February 11, 2014 | 471,910 | 12.2 |
3. 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.
216
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
3. Summary of Significant Accounting Policies - (continued)
Investment Transactions
Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using the identified cost method. Dividend income and distributions to shareholders are recognized on the ex-dividend date and interest income and expenses are recognized on the accrual basis. Premiums and discounts are amortized over the life of the bond using the effective interest method.
Expenses
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
Equity Swaps
The Accuvest Global Long Short ETF, the Cambria Global Tactical ETF, the QAM Equity Hedge ETF and the STAR Global Buy-Write ETF may invest in equity swaps to obtain exposure to the underlying referenced security, obtain leverage or enjoy the returns from ownership without actually owning equity. Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying security and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. Accordingly, the risk of loss with respect to equity swaps is normally limited to the net amount of payments that a Fund is contractually obligated to make. If the other party to an equity swap defaults a Fund’s risk of loss consists of the net amount of payments that the Fund is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile. To the extent that the Adviser or Sub-Adviser, as applicable, do not accurately analyze and predict future market trends, the values of assets or economic factors, the Funds may suffer a loss, which may be substantial. The swap markets in which many types of swap transactions are traded have grown substantially in recent years, with a large number of banks and investment banking firms acting both as principals and as agents. As a result, the markets for certain types of swaps have become relatively liquid. Periodic payments received or paid by the Funds are recorded as realized gains or losses.
Short Sales
Certain Funds 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.
217
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
3. Summary of Significant Accounting Policies - (continued)
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, QAM Equity Hedge ETF and Ranger Equity Bear ETF for the year ended June 30, 2014 are $87,455, $15,376, $12,875 and $1,027,818, respectively, which are included as interest on securities sold short, not yet purchsed 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 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
218
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
3. Summary of Significant Accounting Policies - (continued)
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 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. 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.
219
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
3. Summary of Significant Accounting Policies - (continued)
The securities lending income earned by the Funds are disclosed on the Statements of Operations. The value of loaned securities and related collateral outstanding at June 30, 2014 are shown in the Schedules of Investments and Statements of Assets and Liabilities.
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Liabilities: | Description | 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 | Net Amount | ||||||||||||||||||||||
Fund | Financial Instruments | Collateral Pledged/ Received | ||||||||||||||||||||||||||
Accuvest Global Long Short ETF | Swaps | $ | 96,214 | $ | — | $ | 31,029 | $ | 127,243 | $ | 10,111,289 | $ | — | |||||||||||||||
Accuvest Global Opportunities | Securities Lending | 6,328,525 | — | 6,328,525 | 6,328,525* | — | — | |||||||||||||||||||||
Cambria Global Tactical ETF | Securities Lending | 6,883,911 | — | 6,883,911 | 6,883,911* | — | — | |||||||||||||||||||||
EquityPro ETF | Securities Lending | 539,860 | — | 539,860 | 539,860* | — | — | |||||||||||||||||||||
Global Echo ETF | Securities Lending | 566,100 | — | 566,100 | 566,100* | — | — | |||||||||||||||||||||
Madrona Domestic ETF | Securities Lending | 39,915 | — | 39,915 | 39,915* | — | — | |||||||||||||||||||||
Madrona Global Bond ETF | Securities Lending | 7,299,078 | — | 7,299,078 | 7,299,078* | — | — | |||||||||||||||||||||
Madrona International ETF | Securities Lending | 3,211,866 | — | 3,211,866 | (1) | 3,211,866* | — | — | ||||||||||||||||||||
Meidell Tactical Advantage ETF | Securities Lending | 1,566,357 | — | 1,566,357 | 1,566,357* | — | — | |||||||||||||||||||||
Newfleet Multi-Sector Income ETF | Securities Lending | 3,070,939 | — | 3,070,939 | (1) | 3,070,939* | — | — | ||||||||||||||||||||
Peritus High Yield ETF | Securities Lending | 166,306,561 | — | 166,306,561 | 166,306,561* | — | — | |||||||||||||||||||||
Pring Turner Business Cycle ETF | Securities Lending | 429,413 | — | 429,413 | 429,413* | — | — | |||||||||||||||||||||
TrimTabs Float Shrink ETF | Securities Lending | 2,764,305 | — | 2,764,305 | 2,764,305* | — | — | |||||||||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | Securities Lending | 2,148,039 | — | 2,148,039 | 2,148,039* | — | — |
* | Collateral for securities on loan included in the Schedule of Investments. |
(1) | Includes the value of securities received as collateral which are not shown on the Statements of Assets and Liabilities because the Fund does not have the right to sell or repledge the securities received as collateral. |
Dividends and Distributions
Each Fund will generally pay out dividends to shareholders at least annually. Each Fund will distribute its net capital gains, if any, to shareholders annually. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles. Distributions are recorded on ex-dividend date.
Indemnifications
In the normal course of business, each Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Trust’s maximum exposure under these arrangements cannot be known; however, the Trust expects any risk of loss to be remote.
220
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
4. 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 | % | ||
Gartman Gold/British Pound ETF | 0.55 | % | ||
Gartman Gold/Euro ETF | 0.55 | % | ||
Gartman Gold/Yen ETF | 0.55 | % | ||
Global Echo ETF | 1.10 | % | ||
International Gold ETF | 0.80 | % | ||
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 | % | ||
Sage Core Reserves ETF | 0.30 | % | ||
STAR Global Buy-Write ETF | 1.35 | % | ||
TrimTabs Float Shrink ETF | 0.99 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 0.75 | % | ||
YieldPro ETF | 0.80 | % |
221
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
4. 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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Rate: | ||||
$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.
From time to time, each sub-advisor 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 year ended June 30, 2014 were as follows:
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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 | % | ||
Gartman Gold/British Pound ETF | 0.65 | % | ||
Gartman Gold/Euro ETF | 0.65 | % | ||
Gartman Gold/Yen ETF | 0.65 | % | ||
Global Echo ETF | — | |||
International Gold ETF | 0.95 | % | ||
Madrona Domestic ETF | 1.25 | % | ||
Madrona Global Bond ETF | 0.95 | % | ||
Madrona International ETF | 1.25 | % |
222
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
4. Investment Advisory Agreement and Other Agreements - (continued)
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Fund: | Rate: | |||
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 | % | ||
Sage Core Reserves ETF | 0.35 | % | ||
STAR Global Buy-Write ETF | 1.85 | % | ||
TrimTabs Float Shrink ETF | 0.99 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 1.25 | % | ||
YieldPro ETF | 1.25 | % |
For the year ended June 30, 2014, the Advisor waived fees and reimbursed expenses for each Fund as follows. Each Fund may recoup such waivers until the date indicated.
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Fund: | Expenses Reimbursed: | Recoupment Balance: | Recoupment Expiration: | |||||||||
Accuvest Global Long Short ETF | $ | 204,653 | $ | 202,243 | 06/30/2015 | |||||||
83,973 | 83,973 | 06/30/2016 | ||||||||||
63,291 | 63,291 | 06/30/2017 | ||||||||||
Total Accuvest Global Long Short ETF | 351,917 | 349,507 | ||||||||||
Accuvest Global Opportunities ETF | 45,384 | 45,384 | 06/30/2015 | |||||||||
49,308 | 49,308 | 06/30/2016 | ||||||||||
55,943 | 55,943 | 06/30/2017 | ||||||||||
Total Accuvest Global Opportunities ETF | 150,635 | 150,635 | ||||||||||
Athena International Bear ETF | 98,092 | 98,092 | 06/30/2017 | |||||||||
Cambria Global Tactical ETF | 129,750 | 101,464 | 06/30/2015 | |||||||||
15,570 | 15,570 | 06/30/2016 | ||||||||||
4,358 | 4,358 | 06/30/2017 | ||||||||||
Total Cambria Global Tactical ETF | 149,678 | 121,392 | ||||||||||
EquityPro ETF | 83,603 | 83,603 | 06/30/2016 | |||||||||
67,622 | 67,622 | 06/30/2017 | ||||||||||
Total EquityPro ETF | 151,225 | 151,225 | ||||||||||
Gartman Gold/British Pound ETF | 49,263 | 49,263 | 06/30/2017 | |||||||||
Gartman Gold/Euro ETF | 49,169 | 49,169 | 06/30/2017 | |||||||||
Gartman Gold/Yen ETF | 48,900 | 48,900 | 06/30/2017 | |||||||||
International Gold ETF | 45,849 | 45,849 | 06/30/2017 | |||||||||
Madrona Domestic ETF | 30,175 | 29,886 | 06/30/2015 | |||||||||
59,617 | 59,617 | 06/30/2016 | ||||||||||
35,931 | 35,931 | 06/30/2017 | ||||||||||
Total Madrona Domestic ETF | 125,723 | 125,434 |
223
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
4. Investment Advisory Agreement and Other Agreements - (continued)
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Fund: | Expenses Reimbursed: | Recoupment Balance: | Recoupment Expiration: | |||||||||||||
Madrona Global Bond ETF | $ | 5,992 | $ | — | 06/30/2015 | |||||||||||
28,515 | 8,167 | 06/30/2016 | ||||||||||||||
27,899 | 27,899 | 06/30/2017 | ||||||||||||||
Total Madrona Global Bond ETF | 62,406 | 36,066 | ||||||||||||||
Madrona International ETF | 36,187 | 36,122 | 06/30/2015 | |||||||||||||
60,597 | 60,597 | 06/30/2016 | ||||||||||||||
54,221 | 54,221 | 06/30/2017 | ||||||||||||||
Total Madrona International ETF | 151,005 | 150,940 | ||||||||||||||
Meidell Tactical Advantage ETF | 79,573 | 73,208 | 06/30/2015 | |||||||||||||
119,857 | 119,857 | 06/30/2016 | ||||||||||||||
106,095 | 106,095 | 06/30/2017 | ||||||||||||||
Total Meidell Tactical Advantage ETF | 305,525 | 299,160 | ||||||||||||||
Newfleet Multi-Sector Income ETF | 76,615 | 76,615 | 06/30/2016 | |||||||||||||
88,416 | 88,416 | 06/30/2017 | ||||||||||||||
Total Newfleet Multi-Sector Income ETF | 165,031 | 165,031 | ||||||||||||||
Pring Turner Business Cycle ETF | 68,085 | 68,085 | 06/30/2016 | |||||||||||||
57,187 | 57,187 | 06/30/2017 | ||||||||||||||
Total Pring Turner Business Cycle ETF | 125,272 | 125,272 | ||||||||||||||
QAM Equity Hedge ETF | 98,205 | 98,205 | 06/30/2016 | |||||||||||||
65,019 | 65,019 | 06/30/2017 | ||||||||||||||
Total QAM Equity Hedge ETF | 163,224 | 163,224 | ||||||||||||||
Sage Core Reserves ETF | 58,758 | 58,758 | 06/30/2017 | |||||||||||||
STAR Global Buy-Write ETF | 58,584 | 41,527 | 06/30/2016 | |||||||||||||
3,240 | 3,240 | 06/30/2017 | ||||||||||||||
Total STAR Global Buy-Write ETF | 61,824 | 44,767 | ||||||||||||||
TrimTabs Float Shrink ETF | 66,768 | 66,768 | 06/30/2015 | |||||||||||||
113,494 | 113,494 | 06/30/2016 | ||||||||||||||
159,385 | 159,385 | 06/30/2017 | ||||||||||||||
Total TrimTabs Float Shrink ETF | 339,647 | 339,647 | ||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 214,032 | 209,961 | 06/30/2015 | |||||||||||||
93,893 | 93,893 | 06/30/2016 | ||||||||||||||
40,767 | 40,767 | 06/30/2017 | ||||||||||||||
Total WCM/BNY Mellon Focused Growth ADR ETF | 348,692 | 344,621 |
As part of its agreement with the Trust, the Advisor has contractually agreed to pay all operating expenses of the Global Echo ETF. 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.
224
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
4. Investment Advisory Agreement and Other Agreements - (continued)
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.
5. Creation and Redemption Transactions
The Funds issue and redeem shares on a continuous basis at NAV in groups of 25,000 shares, at minimum, called “Creation Units.” Except when aggregated in Creation Units, shares are not redeemable securities of a Fund. Only “Authorized Participants” may purchase or redeem shares directly from each Fund. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
6. Summary of Fair Value Disclosure
The Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes an authoritative framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosure about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1 — | 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
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ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
6. Summary of Fair Value Disclosure - (continued)
significant event (e.g., an event that occurs after the close of the markets on which the security is traded but before the time as of which a Fund’s net asset value is computed and that may materially affect the value of the Fund’s investment). Examples of events that may be “significant events” are government actions, natural disasters, armed conflicts and acts of terrorism. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of June 30, 2014 in valuing the Funds’ assets carried at fair value:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Assets | Accuvest Global Long Short ETF | Accuvest Global Opportunities ETF | Athena International Bear ETF | Cambria Global Tactical ETF | EquityPro ETF | Gartman Gold/British Pound ETF | ||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | 24,768,599 | $ | 25,060,226 | $ | 703,660 | $ | 36,476,798 | $ | 19,341,980 | $ | — | ||||||||||||
Money Market Fund | 961,696 | 231,471 | 51,503 | 400,877 | 394,334 | 879,015 | ||||||||||||||||||
Futures† | — | — | — | — | — | 62,090 | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Swaps Contracts† | 127,243 | — | — | — | — | — | ||||||||||||||||||
Investment of Cash Collateral for Securities Loaned | — | 6,328,525 | — | 6,883,911 | 539,860 | — | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Common Stocks | — | — | (836,606 | ) | — | — | — | |||||||||||||||||
Futures† | — | — | — | — | — | (21,987 | ) | |||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Swap Contracts | (96,214 | ) | — | — | — | — | — | |||||||||||||||||
Total | $ | 25,761,324 | $ | 31,620,222 | $ | (81,443 | ) | $ | 43,761,586 | $ | 20,276,174 | $ | 919,118 |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Assets | Gartman Gold/Euro ETF | Gartman Gold/Yen ETF | Global Echo ETF | International Gold ETF | Madrona Domestic ETF | Madrona Global Bond ETF | ||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | — | $ | — | $ | 2,068,657 | $ | 1,245,801 | $ | — | $ | 24,134,554 | ||||||||||||
Common Stocks | — | — | 5,011,682 | — | 24,393,245 | — | ||||||||||||||||||
Money Market Fund | 878,068 | 3,173,799 | 224,323 | 25,673 | 398,900 | 299,026 | ||||||||||||||||||
Futures† | 62,090 | 186,270 | — | — | — | — | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Municipal Bonds | — | — | 300,000 | — | — | — | ||||||||||||||||||
Asset Backed Securities | — | — | 1,379,644 | — | — | — | ||||||||||||||||||
Commercial Mortgage Backed Securities | — | — | 257,784 | — | — | — | ||||||||||||||||||
Investment of Cash Collateral for Securities Loaned | — | — | 566,100 | — | 39,915 | 7,299,078 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Futures† | (3,858 | ) | (45,432 | ) | — | — | — | — | ||||||||||||||||
Total | $ | 936,300 | $ | 3,314,637 | $ | 9,808,190 | $ | 1,271,474 | $ | 24,832,060 | $ | 31,732,658 |
226
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
6. Summary of Fair Value Disclosure - (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Assets | Madrona International ETF | Meidell Tactical Advantage ETF | Newfleet Multi-Sector Income ETF | Peritus High Yield ETF | Pring Turner Business Cycle ETF | QAM Equity Hedge ETF | ||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | — | $ | 15,293,305 | $ | — | $ | — | $ | 1,554,110 | $ | 8,092,692 | ||||||||||||
Exchange Traded Notes | — | — | — | — | — | 54,214 | ||||||||||||||||||
Common Stocks | 18,938,975 | — | — | 90,094,516 | 2,905,957 | — | ||||||||||||||||||
Preferred Stocks | 130,728 | — | — | — | — | — | ||||||||||||||||||
Money Market Fund | 177,147 | 483,352 | — | 20,161,488 | 579,080 | 471,792 | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Corporate Bonds | — | — | 31,518,979 | 592,471,783 | — | — | ||||||||||||||||||
Foreign Bonds | — | — | 8,051,070 | 196,754,350 | — | — | ||||||||||||||||||
U.S. Treasury Notes | — | — | 6,507,107 | — | — | — | ||||||||||||||||||
U.S. Government Agency Securities | — | — | 2,550,089 | — | — | — | ||||||||||||||||||
Asset Backed Securities | — | — | 35,092,327 | — | — | — | ||||||||||||||||||
Mortgage Backed Securities | — | — | 49,122,281 | — | — | — | ||||||||||||||||||
Term Loans | — | — | 21,045,792 | 162,160,970 | — | — | ||||||||||||||||||
Investment of Cash Collateral for Securities Loaned | 3,210,703 | 1,566,357 | 845,961 | 166,306,561 | 429,413 | — | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | — | — | — | — | — | (994,360 | ) | |||||||||||||||||
Total | $ | 22,457,553 | $ | 17,343,014 | $ | 154,733,606 | $ | 1,227,949,668 | $ | 5,468,560 | $ | 7,624,338 |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Assets | Ranger Equity Bear ETF | Sage Core Reserves ETF | STAR Global Buy-Write ETF | TrimTabs Float Shrink ETF | WCM/BNY Mellon Focused Growth ADR ETF | YieldPro ETF | ||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | 29,943,000 | $ | — | $ | 18,001,642 | $ | — | $ | — | $ | 58,232,947 | ||||||||||||
Common Stocks | — | — | 2,667,576 | 136,587,271 | 12,466,707 | 12,542,970 | ||||||||||||||||||
Purchased Options | — | — | 8,707 | — | — | 224,930 | ||||||||||||||||||
Money Market Fund | 59,020,341 | 1,840,417 | 1,832,863 | 394,778 | 216,038 | 1,302,056 | ||||||||||||||||||
Futures† | — | 649 | — | — | — | — | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Corporate Bonds | — | 15,915,040 | — | — | — | — | ||||||||||||||||||
Foreign Bonds | — | 4,264,234 | — | — | — | — | ||||||||||||||||||
Municipal Bonds | — | 606,325 | — | — | — | — | ||||||||||||||||||
U.S. Treasury Notes | — | 875,359 | — | — | — | — | ||||||||||||||||||
U.S. Treasury Bills | — | 199,958 | 1,999,858 | — | — | — | ||||||||||||||||||
Asset Backed Securities | — | 6,199,107 | — | — | — | — | ||||||||||||||||||
Commercial Mortgage Backed Securities | — | 7,842,639 | — | — | — | — | ||||||||||||||||||
Investment of Cash Collateral for Securities Loaned | — | — | — | 2,764,305 | 2,148,039 | — | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | (160,234,508 | ) | — | — | — | — | — | |||||||||||||||||
Written Options | — | — | (47,484 | ) | — | — | — | |||||||||||||||||
Total | $ | (71,271,167 | ) | $ | 37,743,728 | $ | 24,463,162 | $ | 139,746,354 | $ | 14,830,784 | $ | 72,302,903 |
† | Derivative instruments, including swap contracts and futures, 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 year ended June 30, 2014.
The Funds did not hold any level 3 securities as of June 30, 2014.
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ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
7. Valuation of Derivative Instruments
The Funds have adopted authoritative standards of accounting for derivative instruments which establish disclosure requirement for derivative instruments. These standards improve financial reporting for derivative instruments by requiring enhanced disclosures that enables investors to understand how and why a fund uses derivatives instruments, how derivatives instruments are accounted for and how derivative instruments affect a fund’s financial position and results of operations. The Funds use derivative instruments as part of their principal investment strategy to achieve their investment objective.
At June 30, 2014, the fair values of derivative instruments were as follows:
Statement of Assets and Liabilities:
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Fund: | Asset Derivatives: | Interest Rate Risk | Equity Risk | Commodity Risk | ||||||||||||
Accuvest Global Long Short ETF | Unrealized Appreciation on Swaps Contracts | $ | — | $ | 127,243 | $ | — | |||||||||
Gartman Gold/British Pound ETF | Unrealized Appreciation on Futures Contracts | — | — | 62,090 | ||||||||||||
Gartman Gold/Euro ETF | Unrealized Appreciation on Futures Contracts | — | — | 62,090 | ||||||||||||
Gartman Gold/Yen ETF | Unrealized Appreciation on Futures Contracts | — | — | 186,270 | ||||||||||||
Sage Core Reserves ETF | Unrealized Appreciation on Futures Contracts | 649 | — | — | ||||||||||||
STAR Global Buy-Write ETF | Investments – Options Purchased | — | 8,707 | — | ||||||||||||
YieldPro ETF | Investments – Options Purchased | 48,400 | 176,530 | — | ||||||||||||
$ | 49,049 | $ | 312,480 | $ | 310,450 |
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Fund: | Liability Derivatives: | Interest Rate Risk | Equity Risk | Foreign Exchange Risk | ||||||||||||
Accuvest Global Long Short ETF | Unrealized Depreciation on Swaps Contracts | $ | — | $ | (96,214 | ) | $ | — | ||||||||
Gartman Gold/British Pound ETF | Unrealized Depreciation Futures Contracts | — | — | (21,987 | ) | |||||||||||
Gartman Gold/Euro ETF | Unrealized Depreciation Futures Contracts | — | — | (3,858 | ) | |||||||||||
Gartman Gold/Yen ETF | Unrealized Depreciation Futures Contracts | — | — | (45,432 | ) | |||||||||||
STAR Global Buy-Write ETF | Options Written, at Value | (1,798 | ) | (45,686 | ) | — | ||||||||||
$ | (1,798 | ) | $ | (141,900 | ) | $ | (71,277 | ) |
228
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
7. Valuation of Derivative Instruments - (continued)
Transactions in derivative instruments during the year ended June 30, 2014, were as follows:
Statement of Operations:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
Fund: | Realized Gain (Loss): | Equity Risk | Foreign Exchange Risk | Commodity Risk | Interest Rate Risk | |||||||||||||||
Accuvest Global Long Short ETF | Swaps | $ | (2,622,244 | ) | $ | — | $ | — | $ | — | ||||||||||
Gartman Gold/British Pound ETF | Futures | — | (29,980 | ) | (31,135 | ) | — | |||||||||||||
Gartman Gold/Euro ETF | Futures | — | (1,778 | ) | (31,135 | ) | — | |||||||||||||
Gartman Gold/Yen ETF | Futures | — | (7,132 | ) | (154,360 | ) | — | |||||||||||||
QAM Equity Hedge ETF | Swaps | 11,612 | — | — | — | |||||||||||||||
QAM Equity Hedge ETF | Options Written | 2,867 | — | — | — | |||||||||||||||
Sage Core Reserves ETF | Futures | — | — | — | 1,108 | |||||||||||||||
STAR Global Buy-Write ETF | Investments – Options Purchased | (403,583 | ) | — | — | — | ||||||||||||||
STAR Global Buy-Write ETF | Options Written | 585,087 | — | — | — | |||||||||||||||
YieldPro ETF | Investments – Options Purchased | (984,743 | ) | — | — | — | ||||||||||||||
$ | (3,411,004 | ) | $ | (38,890 | ) | $ | (216,630 | ) | $ | 1,108 |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
Fund: | Change in Unrealized Gain (Loss): | Equity Risk | Foreign Exchange Risk | Commodity Risk | Interest Rate Risk | |||||||||||||||
Accuvest Global Long Short ETF | Swaps | $ | (712,386 | ) | $ | — | $ | — | $ | — | ||||||||||
Gartman Gold/British Pound ETF | Futures | — | (21,987 | ) | 62,090 | — | ||||||||||||||
Gartman Gold/Euro ETF | Futures | — | (3,858 | ) | 62,090 | — | ||||||||||||||
Gartman Gold/Yen ETF | Futures | — | (45,432 | ) | 186,270 | — | ||||||||||||||
QAM Equity Hedge ETF | Swaps | 5,101 | — | — | — | |||||||||||||||
Sage Core Reserves ETF | Futures | — | — | — | 649 | |||||||||||||||
STAR Global Buy-Write ETF | Investments – Options Purchased | 174,240 | — | — | — | |||||||||||||||
STAR Global Buy-Write ETF | Options Written | 84,235 | — | — | — | |||||||||||||||
YieldPro ETF | Investments – Options Purchased | (318,184 | ) | — | — | — | ||||||||||||||
$ | (766,994 | ) | $ | (71,277 | ) | $ | 310,450 | $ | 649 |
During the year ended June 30, 2014, the volume of the derivatives held by the Funds was as follows:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||
Accuvest Global Long Short ETF | Gartman Gold/British Pound ETF | Gartman Gold/Euro ETF | Gartman Gold/Yen ETF | QAM Equity Hedge ETF | Sage Core Reserves ETF | STAR Global Buy-Write ETF | YieldPro ETF | |||||||||||||||||||||||||
Long Equity Swaps Contracts | 3,353,543 | — | — | — | 8,997 | — | — | — | ||||||||||||||||||||||||
Short Equity Swaps Contracts | 2,834,122 | — | — | — | 12,837 | — | — | — | ||||||||||||||||||||||||
Purchased Equity Options Contracts | — | — | — | — | 90 | — | 15,746 | 19,921 | ||||||||||||||||||||||||
Written Equity Options Contracts | — | — | — | — | 90 | — | 14,759 | 12,651 | ||||||||||||||||||||||||
Short Futures Contracts | — | 15 | 15 | 35 | — | — | — | — | ||||||||||||||||||||||||
Long Futures Contracts | — | 1 | — | 13 | — | 18 | — | — |
8. Federal Income Tax
The Funds intend to qualify as a “regulated investment company” under Sub-chapter M of the Internal Revenue Code of 1986, as amended. If so qualified, the Funds will not be subject to Federal income tax to the extent it distributes substantially all of its net investment income and net capital gains to its shareholders. Accounting for Uncertainty in Income Taxes provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial
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ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
8. Federal Income Tax - (continued)
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 (2012 – 2014), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of June 30, 2014, 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 June 30, 2014, 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 | $ | 25,954,682 | $ | 634,443 | $ | (858,830 | ) | $ | (224,387 | ) | $ | 31,029 | ||||||||
Accuvest Global Opportunities ETF | 31,694,694 | 312,536 | (387,008 | ) | (74,472 | ) | — | |||||||||||||
Athena International Bear ETF | 756,503 | 9,297 | (63,246 | ) | (1,340 | ) | (52,602 | ) | ||||||||||||
Cambria Global Tactical ETF | 41,486,602 | 2,353,098 | (78,114 | ) | 2,274,984 | — | ||||||||||||||
EquityPro ETF | 19,126,009 | 1,255,187 | (105,022 | ) | 1,150,165 | — | ||||||||||||||
Gartman Gold/British Pound ETF | 879,015 | — | — | — | — | |||||||||||||||
Gartman Gold/Euro ETF | 878,068 | — | — | — | — | |||||||||||||||
Gartman Gold/Yen ETF | 3,173,799 | — | — | — | — | |||||||||||||||
Global Echo ETF | 8,981,608 | 965,843 | (139,261 | ) | 826,582 | — | ||||||||||||||
International Gold ETF | 1,259,132 | 17,199 | (4,857 | ) | 12,342 | — | ||||||||||||||
Madrona Domestic ETF | 19,356,828 | 5,680,692 | (205,460 | ) | 5,475,232 | — | ||||||||||||||
Madrona Global Bond ETF | 30,854,488 | 998,510 | (120,340 | ) | 878,170 | — | ||||||||||||||
Madrona International ETF | 21,129,945 | 1,812,089 | (484,481 | ) | 1,327,608 | — | ||||||||||||||
Meidell Tactical Advantage ETF | 16,861,043 | 481,971 | — | 481,971 | — | |||||||||||||||
Newfleet Multi-Sector Income ETF | 154,332,871 | 1,251,951 | (851,216 | ) | 400,735 | 3 | ||||||||||||||
Peritus High Yield ETF | 1,199,895,672 | 37,289,699 | (9,235,703 | ) | 28,053,996 | — | ||||||||||||||
Pring Turner Business Cycle ETF | 4,922,178 | 563,182 | (16,800 | ) | 546,382 | — | ||||||||||||||
QAM Equity Hedge ETF | 8,162,959 | 517,162 | (86,759 | ) | 455,740 | (25,337 | ) | |||||||||||||
Ranger Equity Bear ETF | 89,017,491 | 2,626,908 | (16,221,775 | ) | (54,150 | ) | (13,540,717 | ) | ||||||||||||
Sage Core Reserves ETF | 37,822,351 | 13,527 | (92,799 | ) | (79,272 | ) | — | |||||||||||||
STAR Global Buy-Write ETF | 22,526,928 | 2,038,721 | (45,244 | ) | 1,983,718 | 9,759 | ||||||||||||||
TrimTabs Float Shrink ETF | 133,836,544 | 7,236,536 | (1,326,726 | ) | 5,909,810 | — | ||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 12,618,069 | 2,640,511 | (427,796 | ) | 2,212,715 | — | ||||||||||||||
YieldPro ETF | 71,052,230 | 1,632,003 | (381,330 | ) | 1,250,673 | — |
230
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
8. Federal Income Tax - (continued)
At June 30, 2014, the components of distributable earnings/loss on a tax basis were as follows:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
Fund | Undistributed Income | Accumulated Capital Gains/(Losses) | Timing Difference | Net Unrealized Appreciation (Depreciation) | Total Earnings (Losses) | |||||||||||||||
Accuvest Global Long Short ETF | $ | — | $ | (9,241,224 | ) | $ | (3,272,830 | ) | $ | (193,358 | ) | $ | (12,707,412 | ) | ||||||
Accuvest Global Opportunities ETF | 43,980 | (2,683,788 | ) | (570,817 | ) | (74,472 | ) | (3,285,097 | ) | |||||||||||
Athena International Bear ETF | — | (54,496 | ) | (188,547 | ) | (53,949 | ) | (296,992 | ) | |||||||||||
Cambria Global Tactical ETF | 354,155 | (19,272,202 | ) | — | 2,274,984 | (16,643,063 | ) | |||||||||||||
EquityPro ETF | 295,925 | 204,411 | — | 1,150,165 | 1,650,501 | |||||||||||||||
Gartman Gold/British Pound ETF | 27,900 | — | (20,832 | ) | — | 7,068 | ||||||||||||||
Gartman Gold/Euro ETF | 27,862 | — | 25,499 | — | 53,361 | |||||||||||||||
Gartman Gold/Yen ETF | 24,353 | — | 101,796 | — | 126,149 | |||||||||||||||
Global Echo ETF | 30,808 | (13,478 | ) | (9,999 | ) | 826,582 | 833,913 | |||||||||||||
International Gold ETF | — | — | (4,507 | ) | 12,342 | 7,835 | ||||||||||||||
Madrona Domestic ETF | 33,249 | (991,114 | ) | (17,095 | ) | 5,475,232 | 4,500,272 | |||||||||||||
Madrona Global Bond ETF | 13,352 | (106,975 | ) | (109,488 | ) | 878,170 | 675,059 | |||||||||||||
Madrona International ETF | 212,640 | (1,680,182 | ) | (20,044 | ) | 1,327,608 | (159,978 | ) | ||||||||||||
Meidell Tactical Advantage ETF | 67,182 | (560,050 | ) | (291,627 | ) | 481,971 | (302,524 | ) | ||||||||||||
Newfleet Multi-Sector Income ETF | 77,533 | (251,685 | ) | (149,187 | ) | 400,738 | 77,399 | |||||||||||||
Peritus High Yield ETF | 1,623,319 | — | (110,358 | ) | 28,053,996 | 29,566,957 | ||||||||||||||
Pring Turner Business Cycle ETF | 18,295 | (23,177 | ) | (79,537 | ) | 546,382 | 461,963 | |||||||||||||
QAM Equity Hedge ETF | 28,703 | 18,811 | — | 430,403 | 477,917 | |||||||||||||||
Ranger Equity Bear ETF | — | (124,434,165 | ) | (24,505,330 | ) | (13,594,867 | ) | (162,534,362 | ) | |||||||||||
Sage Core Reserves ETF | 8,116 | — | (5,647 | ) | (79,272 | ) | (76,803 | ) | ||||||||||||
STAR Global Buy-Write ETF | — | (174,384 | ) | (272,481 | ) | 1,993,477 | 1,546,612 | |||||||||||||
TrimTabs Float Shrink ETF | 552,118 | (509,037 | ) | (3,498,430 | ) | 5,909,810 | 2,454,461 | |||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | — | (449,980 | ) | — | 2,212,715 | 1,762,735 | ||||||||||||||
YieldPro ETF | 142,685 | — | (769,517 | ) | 1,250,673 | 623,841 |
The differences between book and tax basis components of net assets are primarily attributable to wash sale loss deferrals and other book and tax differences.
231
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
8. Federal Income Tax - (continued)
At June 30, 2014, the effect of permanent book/tax reclassifications resulted in increases/(decreases) to the components of net assets as follows:
![]() | ![]() | ![]() | ![]() | |||||||||
Fund | Undistributed Net Investment Income | Accumulated Net Realized Gains/(Losses) | Paid-in Capital | |||||||||
Accuvest Global Long Short ETF | $ | 249,987 | $ | (4,358,476 | ) | $ | 4,108,489 | |||||
Accuvest Global Opportunities ETF | (5,048 | ) | (2,221,547 | ) | 2,226,595 | |||||||
Athena International Bear ETF | 52,329 | (6,436 | ) | (45,893 | ) | |||||||
Cambria Global Tactical ETF | (17,966 | ) | (1,481,264 | ) | 1,499,230 | |||||||
EquityPro ETF | 2,326 | (39,668 | ) | 37,342 | ||||||||
Gartman Gold/British Pound ETF | — | 31,135 | (31,135 | ) | ||||||||
Gartman Gold/Euro ETF | — | 31,135 | (31,135 | ) | ||||||||
Gartman Gold/Yen ETF | — | 154,360 | (154,360 | ) | ||||||||
Global Echo ETF | 3,896 | (3,896 | ) | — | ||||||||
International Gold ETF | 124 | (124 | ) | — | ||||||||
Madrona Domestic ETF | (2,237 | ) | (2,310,841 | ) | 2,313,078 | |||||||
Madrona Global Bond ETF | (1,367 | ) | (10,958 | ) | 12,325 | |||||||
Madrona International ETF | 51,111 | (1,262,790 | ) | 1,211,679 | ||||||||
Meidell Tactical Advantage ETF | (338 | ) | (591,608 | ) | 591,946 | |||||||
Newfleet Multi-Sector Income ETF | 323,618 | (323,618 | ) | — | ||||||||
Peritus High Yield ETF | (314,621 | ) | 314,621 | — | ||||||||
Pring Turner Business Cycle ETF | (27 | ) | (217,122 | ) | 217,149 | |||||||
QAM Equity Hedge ETF | 65,642 | (216,481 | ) | 150,839 | ||||||||
Ranger Equity Bear ETF | 5,766,744 | (101,882 | ) | (5,664,862 | ) | |||||||
Sage Core Reserves ETF | 8,328 | (8,328 | ) | — | ||||||||
STAR Global Buy-Write ETF | 151,597 | (45,947 | ) | (105,650 | ) | |||||||
TrimTabs Float Shrink ETF | — | (14,942,131 | ) | 14,942,131 | ||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 3,616 | (355,138 | ) | 351,522 | ||||||||
YieldPro ETF | — | (192 | ) | 192 |
For Financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to the tax treatment of net operating losses and distribution reclassifications.
232
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
8. Federal Income Tax - (continued)
The tax character of distributions paid during the years ended June 30, 2014 and 2013 were:
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Fund | 2014 Ordinary Income | 2014 Long Term Capital Gains | 2013 Ordinary Income | 2013 Long Term Capital Gains | ||||||||||||
Accuvest Global Opportunities ETF | $ | 154,897 | $ | — | $ | 185,454 | $ | — | ||||||||
Cambria Global Tactical ETF | — | — | 1,451,034 | — | ||||||||||||
EquityPro ETF | 154,669 | — | 7,701 | — | ||||||||||||
Global Echo ETF | 2,380 | — | 23,426 | — | ||||||||||||
Madrona Domestic ETF | 59,938 | — | 73,945 | — | ||||||||||||
Madrona Global Bond ETF | 761,153 | — | 624,852 | 3,109 | ||||||||||||
Madrona International ETF | 318,396 | — | 185,288 | — | ||||||||||||
Meidell Tactical Advantage ETF | — | — | 64,270 | — | ||||||||||||
Newfleet Multi-Sector Income ETF | 2,905,125 | — | 400,645 | — | ||||||||||||
Peritus High Yield ETF | 45,680,132 | — | 14,688,975 | — | ||||||||||||
Pring Turner Business Cycle ETF | 59,326 | — | — | — | ||||||||||||
QAM Equity Hedge ETF | 92,485 | 26,668 | 26,646 | — | ||||||||||||
Sage Core Reserves ETF | 119,991 | — | — | — | ||||||||||||
STAR Global Buy-Write ETF | — | — | 109,016 | — | ||||||||||||
TrimTabs Float Shrink ETF | 300,553 | — | 109,337 | — | ||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 54,540 | — | 37,975 | — | ||||||||||||
YieldPro ETF | 532,662 | — | — | — |
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, 2014 are as follows:
![]() | ![]() | ![]() | ![]() | |||||||||
Fund | Late Year Ordinary Deferral | Short-Term Post-October Loss | Long-Term Post-October Loss | |||||||||
Accuvest Global Long Short ETF | $ | — | $ | 3,272,830 | $ | — | ||||||
Accuvest Global Opportunities ETF | — | 570,817 | — | |||||||||
Athena International Bear ETF | 20,684 | 167,863 | — | |||||||||
Gartman Gold/British Pound ETF | — | 20,787 | 31,180 | |||||||||
Gartman Gold/Euro ETF | — | 2,254 | 3,382 | |||||||||
Gartman Gold/Yen ETF | — | 21,026 | 31,538 | |||||||||
Global Echo ETF | — | 9,999 | — | |||||||||
International Gold ETF | 4,507 | — | — | |||||||||
Madrona Domestic ETF | — | — | 17,095 | |||||||||
Madrona Global Bond ETF | — | 61,379 | 48,109 | |||||||||
Madrona International ETF | — | 20,044 | — | |||||||||
Meidell Tactical Advantage ETF | — | 291,627 | — | |||||||||
Newfleet Multi-Sector Income ETF | — | 113,887 | 35,300 | |||||||||
Peritus High Yield ETF | — | 110,358 | — | |||||||||
Pring Turner Business Cycle ETF | — | 63,474 | 16,063 | |||||||||
Ranger Equity Bear ETF | 2,033,900 | 22,471,430 | — | |||||||||
Sage Core Reserves ETF | — | 5,647 | — | |||||||||
STAR Global Buy-Write ETF | 60,353 | — | 208,171 | |||||||||
TrimTabs Float Shrink ETF | — | 3,498,430 | — | |||||||||
YieldPro ETF | — | 769,517 | — |
233
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
8. Federal Income Tax - (continued)
The following Funds have capital loss carryforwards available to offset future realized gains of:
![]() | ![]() | ![]() | ![]() | |||||||||
Fund | Short-Term Post-Effective No Expiration | Long-Term Post-Effective No Expiration | Total | |||||||||
Accuvest Global Long Short ETF | $ | 8,809,566 | $ | 431,658 | $ | 9,241,224 | ||||||
Accuvest Global Opportunities ETF | 2,683,788 | — | 2,683,788 | |||||||||
Athena International Bear ETF | 54,496 | — | 54,496 | |||||||||
Cambria Global Tactical ETF | 19,272,202 | — | 19,272,202 | |||||||||
Global Echo ETF | 13,478 | — | 13,478 | |||||||||
Madrona Domestic ETF | 801,839 | 189,275 | 991,114 | |||||||||
Madrona Global Bond ETF | 66,750 | 40,225 | 106,975 | |||||||||
Madrona International ETF | 1,647,319 | 32,863 | 1,680,182 | |||||||||
Meidell Tactical Advantage ETF | 556,690 | 3,360 | 560,050 | |||||||||
Newfleet Multi-Sector Income ETF | 251,685 | — | 251,685 | |||||||||
Pring Turner Business Cycle ETF | 23,177 | — | 23,177 | |||||||||
Ranger Equity Bear ETF | 124,434,165 | — | 124,434,165 | |||||||||
STAR Global Buy-Write ETF | 17,583 | 156,801 | 174,384 | |||||||||
TrimTabs Float Shrink ETF | 509,037 | — | 509,037 | |||||||||
WCM/BNY Mellon Focused Growth ADR ETF | — | 449,980 | 449,980 |
The following Funds utilized capital loss carryforwards to offset taxable capital gains realized during the year ended June 30, 2014:
![]() | ![]() | |||
Fund | Amount | |||
Cambria Global Tactical ETF | $ | 207,553 | ||
Global Echo ETF | 41,338 | |||
Madrona Domestic ETF | 247,464 | |||
Madrona International ETF | 771,219 |
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.
234
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
9. 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 year ended June 30, 2014 are as follows:
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Affiliated Fund Name | Value at 06/30/2013 | Purchases/ Additions | Sales/ Reductions | Value at 06/30/2014 | Dividend Income | Realized Gain (Loss) | ||||||||||||||||||
Athena International Bear ETF | ||||||||||||||||||||||||
Sage Core Reserves ETF | $ | — | $ | 705,000 | $ | — | $ | 703,660 | $ | 2,291 | $ | — | ||||||||||||
Global Echo ETF | ||||||||||||||||||||||||
Ranger Equity Bear ETF | 25,840 | 277,862 | (280,814 | ) | 11,780 | — | (10,325 | ) | ||||||||||||||||
Sage Core Reserves ETF | — | 2,380,352 | (1,278,907 | ) | 1,098,409 | 3,472 | (1,329 | ) | ||||||||||||||||
International Gold ETF | ||||||||||||||||||||||||
Gartman Gold/British Pound ETF | — | 332,149 | — | 327,291 | — | — | ||||||||||||||||||
Gartman Gold/Euro ETF | — | 335,803 | — | 339,300 | — | — | ||||||||||||||||||
Gartman Gold/Yen ETF | — | 333,769 | — | 341,135 | — | — | ||||||||||||||||||
Madrona Global Bond ETF | ||||||||||||||||||||||||
Peritus High Yield ETF | 2,049,143 | 964,110 | (58,152 | ) | 3,112,080 | 198,728 | 2,151 | |||||||||||||||||
Meidell Tactical Advantage ETF | ||||||||||||||||||||||||
Sage Core Reserves ETF | — | 547,519 | (546,852 | ) | — | 108 | (667 | ) | ||||||||||||||||
Pring Turner Business Cycle ETF | ||||||||||||||||||||||||
Peritus High Yield ETF | 282,085 | 64,296 | (129,875 | ) | 234,467 | 20,234 | 4,293 | |||||||||||||||||
QAM Equity Hedge ETF | ||||||||||||||||||||||||
Sage Core Reserves ETF | — | 489,937 | (69,902 | ) | 419,202 | 1,365 | (35 | ) | ||||||||||||||||
Ranger Equity Bear ETF | ||||||||||||||||||||||||
Sage Core Reserves ETF | — | 29,997,150 | — | 29,943,000 | 97,503 | — | ||||||||||||||||||
STAR Global Buy-Write ETF | ||||||||||||||||||||||||
Sage Core Reserves ETF | — | 262,523 | — | 262,001 | 851 | — | ||||||||||||||||||
YieldPro ETF | ||||||||||||||||||||||||
Peritus High Yield ETF | — | 10,021,663 | (87,067 | ) | 10,049,182 | 207,299 | 169 |
235
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
10. Investment Transactions
Purchases and sales of investments for the year ended June 30, 2014 are as follows:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Purchases | Sales | |||||||||||||||||||||||
Fund | Long Term | U.S. Government | In-Kind | Long Term | U.S. Government | In-Kind | ||||||||||||||||||
Accuvest Global Long Short ETF | $ | 113,142,394 | $ | — | $ | 65,737,940 | $ | 104,781,694 | $ | — | $ | 83,617,039 | ||||||||||||
Accuvest Global Opportunities ETF | 40,432,444 | — | 55,269,116 | 39,758,271 | — | 49,386,199 | ||||||||||||||||||
Athena International Bear ETF | 8,208,983 | — | — | 8,077,612 | — | — | ||||||||||||||||||
Cambria Global Tactical ETF | 106,690,535 | — | 1,287,923 | 95,794,525 | — | 18,135,499 | ||||||||||||||||||
EquityPro ETF | 2,218,561 | — | 19,565,224 | 2,069,307 | — | 2,876,416 | ||||||||||||||||||
Global Echo ETF | 11,774,384 | — | 2,279,588 | 10,701,206 | — | — | ||||||||||||||||||
International Gold ETF | 1,256,416 | — | — | 23,081 | — | — | ||||||||||||||||||
Madrona Domestic ETF | 11,187,689 | — | 928,252 | 2,963,925 | — | 8,298,588 | ||||||||||||||||||
Madrona Global Bond ETF | 4,496,375 | — | 1,275,053 | 4,544,543 | — | 622,921 | ||||||||||||||||||
Madrona International ETF | 38,153,310 | — | 662,922 | 32,107,343 | — | 5,998,317 | ||||||||||||||||||
Meidell Tactical Advantage ETF | 88,522,810 | — | 21,295,314 | 85,093,247 | — | 16,355,740 | ||||||||||||||||||
Newfleet Multi-Sector Income ETF | 118,212,006 | 40,939,247 | — | 46,855,099 | 41,642,103 | — | ||||||||||||||||||
Peritus High Yield ETF | 1,263,486,697 | — | — | 503,763,467 | — | — | ||||||||||||||||||
Pring Turner Business Cycle ETF | 2,335,351 | — | 965,499 | 1,512,871 | — | 2,038,894 | ||||||||||||||||||
QAM Equity Hedge ETF | 13,273,392 | — | 3,820,271 | 12,155,882 | — | 1,387,345 | ||||||||||||||||||
Ranger Equity Bear ETF | 1,003,069,822 | — | — | 866,921,503 | — | — | ||||||||||||||||||
Sage Core Reserves ETF | 24,060,963 | — | — | 1,956,282 | — | — | ||||||||||||||||||
STAR Global Buy-Write ETF | 30,279,325 | — | 3,393,382 | 28,230,611 | — | 1,501,885 | ||||||||||||||||||
TrimTabs Float Shrink ETF | 6,202,675 | — | 397,748,706 | 72,841,674 | — | 236,627,428 | ||||||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 2,456,628 | — | 5,264,773 | 5,027,621 | — | 1,643,257 | ||||||||||||||||||
YieldPro ETF | 6,274,034 | — | 68,447,593 | 5,027,621 | — | 591,686 |
Options Written transactions, during the year ended June 30, 2014, were as follows:
![]() | ![]() | ![]() | ||||||
STAR Global Buy-Write ETF | Contracts | Premiums Paid/Received | ||||||
Options outstanding at June 30, 2013 | 2,592 | $ | 241,514 | |||||
Options written | 12,925 | 1,012,556 | ||||||
Options terminated in closing purchase transactions | (6,032 | ) | (479,967 | ) | ||||
Options expired | (8,264 | ) | (686,552 | ) | ||||
Options exercised | (191 | ) | (30,308 | ) | ||||
Options outstanding at June 30, 2014 | 1,030 | 57,243 |
236
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
11. 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 is 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.
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.
12. New Accounting Pronouncements
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.
237
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
12. New Accounting Pronouncements - (continued)
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.
13. 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.
Since June 30, 2014, the following events occurred:
Effective July 24, 2014, First Affirmative Financial Network, LLC, an investment sub-advisor to AdvisorShares Global Echo ETF, has resigned. The assets of First Affirmative Financial Network, LLC will be allocated to the remaining three sub-advisors to the Fund.
Effective July 28, 2014, AdvisorShares Cambria Global Tactical ETF changed its name to AdvisorShares Morgan Creek Global Tactical ETF. At this time, Morgan Creek Capital Management assumed sub-advisory responsibilities.
The following Funds paid dividends after June 30, 2014:
![]() | ![]() | ![]() | ![]() | |||||||||
Fund | Ticker | Per Share Distributed | Payable Date | |||||||||
Madrona Global Bond ETF | FWDB | $ | 0.06862 | 07/31/2014 | ||||||||
Madrona Global Bond ETF | FWDB | $ | 0.06534 | 08/29/2014 | ||||||||
Newfleet Multi-Sector Income ETF | MINC | $ | 0.11440 | 07/31/2014 | ||||||||
Newfleet Multi-Sector Income ETF | MINC | $ | 0.11492 | 08/29/2014 | ||||||||
Peritus High Yield ETF | HYLD | $ | 0.36558 | 07/31/2014 | ||||||||
Peritus High Yield ETF | HYLD | $ | 0.34760 | 08/29/2014 | ||||||||
Sage Core Reserves ETF | HOLD | $ | 0.08870 | 07/31/2014 | ||||||||
Sage Core Reserves ETF | HOLD | $ | 0.07330 | 08/29/2014 | ||||||||
YieldPro ETF | YPRO | $ | 0.09880 | 07/31/2014 | ||||||||
YieldPro ETF | YPRO | $ | 0.07910 | 08/29/2014 |
14. Unaudited Tax Information
Qualified Dividend Income — Certain dividends paid by the Funds may be subject to a minimum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of ordinary income distributions for the period ended June 30, 2014, taxed at a maximum rate of 15% were:
![]() | ![]() | |||
Fund | Percentage | |||
Accuvest Global Opportunities ETF | 100.00 | % | ||
EquityPro ETF | 100.00 | % | ||
Madrona Domestic ETF | 100.00 | % | ||
Madrona Global Bond ETF | 14.06 | % | ||
Madrona International ETF | 100.00 | % | ||
Peritus High Yield ETF | 1.71 | % | ||
Pring Turner Business Cycle ETF | 51.58 | % |
238
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2014
14. Unaudited Tax Information - (continued)
![]() | ![]() | |||
Fund | Percentage | |||
QAM Equity Hedge ETF | 35.77 | % | ||
TrimTabs Float Shrink ETF | 100.00 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 100.00 | % | ||
YieldPro ETF | 31.42 | % |
Dividends Received Deduction — For corporate shareholders, the percentage of ordinary income distributions for the period ended June 30, 2014 that qualifies for the dividends received deduction were:
![]() | ![]() | |||
Fund | Percentage | |||
Accuvest Global Opportunities ETF | 35.58 | % | ||
EquityPro ETF | 100.00 | % | ||
Madrona Domestic ETF | 100.00 | % | ||
Madrona Global Bond ETF | 8.39 | % | ||
Madrona International ETF | 100.00 | % | ||
Pring Turner Business Cycle ETF | 42.50 | % | ||
QAM Equity Hedge ETF | 25.44 | % | ||
TrimTabs Float Shrink ETF | 100.00 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 17.59 | % | ||
YieldPro ETF | 33.40 | % |
Qualified Interest Income — For NRA shareholders, the percentage of ordinary income distributions for the period ended June 30, 2014 that qualifies as qualified interest income were:
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Fund | Percentage | |||
Madrona Global Bond ETF | 47.25 | % | ||
Newfleet Multi-Sector Income ETF | 100.00 | % | ||
Peritus High Yield ETF | 85.07 | % | ||
Sage Core Reserves ETF | 100.00 | % | ||
YieldPro ETF | 50.10 | % |
The following Funds intend to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:
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Fund | Taxes paid | Foreign Source Income | ||||||
Accuvest Global Opportunities ETF | $ | 50,327 | $ | 341,842 | ||||
Cambria Global Tactical ETF | 35,967 | 330,193 | ||||||
Madrona International ETF | 40,355 | 442,458 | ||||||
Meidell Tactical Advantage ETF | 3,375 | 36,380 |
239
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders
AdvisorShares Trust
We have audited the accompanying statements of assets and liabilities of Accuvest Global Long Short ETF, Accuvest Global Opportunities ETF, Cambria Global Tactical ETF, EquityPro ETF (formerly Global Alpha & Beta ETF), Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Newfleet Multi-Sector Income ETF, Peritus High Yield ETF, 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, Athena International Bear ETF, Sage Core Reserves ETF, International Gold ETF, and YieldPro ETF, each a series of AdvisorShares Trust (the “Trust”), including the schedules of investments as of June 30, 2014, and the related statements of operations, the statements of changes in net assets and the financial highlights for the periods indicated thereon. We have audited the accompanying consolidated statements of assets and liabilities of Gartman Gold/Euro ETF, Gartman Gold/Yen ETF, Gartman Gold/British Pound ETF, each a series of AdvisorShares Trust (the “Trust”), including the consolidated schedules of investments as of June 30, 2014, and the related consolidated statements of operations, the consolidated statements of changes in net assets and the consolidated financial highlights for the periods indicated thereon These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal controls over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2014, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Accuvest Global Long Short ETF, Accuvest Global Opportunities ETF, Cambria Global Tactical ETF, EquityPro ETF (formerly Global Alpha & Beta ETF), Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Newfleet Multi-Sector Income ETF, Peritus High Yield ETF, 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, Athena International Bear ETF, Sage Core Reserves ETF, International Gold ETF and YieldPro ETF as of June 30, 2014, and the results of their operations, the changes in their net assets and their financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the consolidated financial statements and consolidated financial highlights referred to above present fairly, in all material respects, the consolidated financial position of Gartman Gold/Euro ETF, Gartman Gold/Yen ETF and Gartman Gold/British Pound ETF as of June 30, 2014, and the results of their consolidated operations, the consolidated changes in their net assets and their consolidated financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.
TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
August 27, 2014
240
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 Year of Birth | 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 During Past 5 Years | ||||
Interested Trustee | ||||||||
Noah Hamman* 2 Bethesda Metro Center, Suite 1330 Bethesda, MD 20814 (1968) | Trustee (no set term); served since 2009 | President of AdvisorShares Trust (2009 – present); Chief Executive Officer, President, and Founder of AdvisorShares Investments, LLC (2006 – present); President and Chief Executive Officer of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President – Business Development of Rydex Investments (2001 – 2006). | 28 | 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). | 28 | 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). | 28 | None | ||||
Officers of AdvisorShares Trust | ||||||||
Noah Hamman 2 Bethesda Metro Center, Suite 1330 Bethesda, MD 20814 (1968) | President (no set term); served since 2009 | President of AdvisorShares Trust (2009 – present); Chief Executive Officer, President, and Founder of AdvisorShares Investments, LLC (2006 – present); President and Chief Executive Officer of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President – Business Development of Rydex Investments (2001 – 2006). | 28 | Not applicable |
241
ADVISORSHARES TRUST
Board of Trustees and Officers (Unaudited) (Continued)
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Name, Address, and Year of Birth | 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 During Past 5 Years | ||||
Dan Ahrens 4144 N. Central Expressway, Suite 600 Dallas, TX 75204 (1966) | Secretary & Treasurer (no set terms); served since 2009 | Managing Director of AdvisorShares Investments, LLC (2013 – present); Chief Compliance Officer of the Trust (2009 – 2013); Executive Vice President of AdvisorShares Investments, LLC (2008 – 2013); President of Ahrens Advisors, LP (2005 – 2008); President of Mutuals Advisors, Inc. & Mutuals.com Funds (2003 – 2005). | 28 | Not applicable | ||||
Stefanie Little 11 Gina Marie Lane Elkton, MD 21921 (1967) | Chief Compliance Officer (no set term); served since 2013 | Chief Compliance Officer of AdvisorShares Investments, LLC and the Trust (2013 – present); Managing Member of SEC Compliance Alliance, LLC (2012 – present), President of Little Consulting Group, Inc. (2011 – present); Director of Cipperman Compliance Services (2008 – 2011). | 28 | Not applicable |
* | 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. |
242
Board Review of Investment Advisory and Sub-Advisory Agreements
Renewal of the Advisory Agreement and the AdvisorShares Peritus High Yield ETF, AdvisorShares Meidell Tactical Advantage ETF, AdvisorShares TrimTabs Float Shrink ETF, AdvisorShares Pring Turner Business Cycle ETF, AdvisorShares Newfleet Multi-Sector Income ETF, AdvisorShares Accuvest Global Long Short ETF, and AdvisorShares Accuvest Global Opportunities ETF Sub-Advisory Agreements
At meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on February 12, 2014 and May 12, 2014 (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 (a) separate sub-advisory agreements (collectively, the “Sub-Advisory Agreements”) between AdvisorShares Investments, LLC (the “Advisor”) and (1) Peritus I Asset Management, LLC, on behalf of the AdvisorShares Peritus High Yield ETF, (2) American Wealth Management, on behalf of the AdvisorShares Meidell Tactical Advantage ETF, (3) TrimTabs Asset Management, LLC, on behalf of the AdvisorShares TrimTabs Float Shrink ETF, (4) Pring Turner Capital Group, on behalf of the AdvisorShares Pring Turner Business Cycle ETF, (5) Newfleet Asset Management, on behalf of the AdvisorShares Newfleet Multi-Sector Income ETF, and (6) Accuvest Global Advisors, on behalf of the AdvisorShares Accuvest Global Long Short ETF and AdvisorShares Accuvest Global Opportunities ETF (collectively, the “Sub-Advisors”), pursuant to which the Sub-Advisors perform portfolio management and related services for the Funds, and (b) the investment advisory agreement (together with the Sub-Advisory Agreements, the “Advisory Agreements”) between the Advisor and the Trust, on behalf of each series of the Trust (each, a “Fund” and collectively, the “Funds”).
Pursuant to Section 15(c) of the 1940 Act, the Board must annually review and approve the existing Advisory Agreements after their initial two-year term: (i) by the vote of the Board or by a vote of the shareholders of the Funds and (ii) by the vote of a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such approval. Each year, the Board calls and holds meetings to decide whether to renew the 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 Advisory Agreements for an additional year.
Prior to the Meetings, the Board, including the Independent Trustees, reviewed written materials from the Advisor and each Sub-Advisor regarding, among other things: (i) the nature, extent and quality of the services to be provided by the Advisor and each Sub-Advisor; (ii) the investment performance of each Fund; (iii) the costs of the services to be provided and profits to be realized by the Advisor and its affiliates from the relationship with the Funds; (iv) the costs of the services to be provided and profits and other benefits to be realized by the Sub-Advisor and its affiliates from the relationship with each Fund; (v) the respective personnel and operations of the Sub-Advisor; (vi) the extent to which economies of scale would be realized as each Fund grows; and (vii) 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 the Advisor and each Sub-Advisor, along with other service providers to the Funds, presented additional oral and written information to help the Board evaluate the Advisor’s and each Sub-Advisor’s advisory fees and other aspects of the Advisory Agreements. The Advisor provided an overview of the Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and also discussed compliance oversight. Representatives from each Sub-Advisor then discussed their management of each Fund in more detail, including the Fund’s strategy, the focus in the markets, the Fund’s positioning in the market, and its attractive and unique offering. The representatives also discussed their company’s overall business generally, including any noteworthy personnel changes. The Board then discussed
243
Board Review of Investment Advisory and Sub-Advisory Agreements (Continued)
the written materials that it received before the Meetings, the Advisor’s and Sub-Advisors’ oral presentations, and any other information that the Board received at the Meetings, as well as information it had received at prior board meetings, and then deliberated on the renewal of the Advisory Agreements in light of this information. In its deliberations, the Board considered the factors and reached the conclusions described below relating to the selection of the Advisor and Sub-Advisors and the renewal of the Advisory Agreements. The Board did not identify any single piece of information discussed below that was all-important, controlling or determinative of its decision.
Nature, Extent and Quality of Services
In considering the nature, extent and quality of the services provided by the Advisor and each Sub-Advisor, the Board reviewed the portfolio management services provided to the Funds. The Board also noted the extensive responsibilities that the Advisor has as investment adviser to the Funds, including the selection of the Funds’ sub-advisers and oversight of the sub-advisers’ compliance with Fund policies and objectives, oversight of general Fund compliance with federal laws, and the implementation of Board directives as they relate to the Funds. The most recent Form ADV for the Advisor and each Sub-Advisor was also provided to the Board, as were the responses of the Advisor and 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 the Advisor’s overall quality of personnel, operations, and financial condition, and investment advisory capabilities and information concerning each 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 the Advisor and each Sub-Advisor.
Performance of the Funds
The Board was provided with information regarding each Fund’s performance since the Advisory Agreements were last approved, as well as information regarding each Fund’s performance since its inception. The Advisor and each Sub-Advisor provided information regarding factors impacting the performance of the Funds, outlining current market conditions, and explaining the Advisor’s and each Sub-Advisor’s expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that the Advisor and each Sub-Advisor had been able to achieve for the Funds.
Cost of Advisory Services, Profitability and Economies of Scale
In concluding that the advisory and sub-advisory fees payable with respect to each Fund were reasonable, the Board reviewed a report of the advisory fees paid by each Fund to the Advisor, the sub-advisory fees paid by the Advisor to each Sub-Advisor, and the fees and expenses waived and/or reimbursed by the Advisor and each Sub-Advisor over the period, the costs and other expenses incurred by the Advisor and 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 the Advisory
244
Board Review of Investment Advisory and Sub-Advisory Agreements (Continued)
Agreements are fair and reasonable; (ii) concluded that the Advisor’s fees are reasonable in light of the services that it provides to the Funds; (iii) concluded that each Sub-Advisor’s fees are reasonable in light of the services that it provides to its respective Fund; and (iv) agreed to renew the Advisory Agreements for another year.
Initial Approval of the Advisory and Sub-Advisory Agreements for AdvisorShares Sage Core Reserves ETF and AdvisorShares YieldPro ETF
At meetings of the Board held on May 20, 2013 and August 6, 2013 (together, the “Meetings”), the Board considered the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust and AdvisorShares Investments, LLC (the “Advisor”), for an initial term of two years, on behalf of the AdvisorShares Sage Core Reserves ETF and AdvisorShares YieldPro 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) Sage Advisory Services, Ltd. Co., on behalf of the AdvisorShares Sage Core Reserves ETF, and (2) The Elemental Financial Group LLC (together, the “Sub-Advisors;” collectively with the Advisor, the “Advisors”), on behalf of the AdvisorShares YieldPro ETF, pursuant to which the Sub-Advisors perform portfolio management and related services for the Funds.
Pursuant to Section 15(c) of the 1940 Act, the Board considered the approval of the New Agreements for initial two-year terms. Each New Agreement, after the initial two-year term, must be approved annually: (i) by the vote of the Board or by a vote of the shareholders of each Fund and (ii) by the vote of a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such approval. After the initial two-year term, the Board will call and hold a meeting each year to decide whether to renew each New Agreement for an additional one-year term.
In connection with its consideration of the New Agreements, the Board, including the Independent Trustees, was presented with, and requested, received and evaluated, materials about the New Agreements and the services proposed to be provided thereunder, including information about the investment advisory fee rates and related matters from the Advisors. In that regard, the Board reviewed presentations it received from each Sub-Advisor, which included information with respect to staffing, management, organizational structure and investment philosophy and processes at each firm. The Board also reviewed information comparing the proposed investment advisory fee rates with a group of comparable funds. The Board also received various other materials that it considered relevant to its consideration and approval of the proposed New Agreements.
At the conclusion of its review of the materials discussed above and the discussions among the Trustees leading up to and during the 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.
245
Board Review of Investment Advisory and Sub-Advisory Agreements (Continued)
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 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 Fund, 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.
246
Board Review of Investment Advisory and Sub-Advisory Agreements (Continued)
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 fee for each Sub-Advisor is 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.
247
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-Advisors
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, California 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, California 95403
Community Capital Management, Inc.
2500 Weston Road, Suite 101
Weston, Florida 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, Massachusetts 02110
Baldwin Brothers, Inc.
204 Spring Street
Marion, Massachusetts 02738
Newfleet Asset Management, LLC
100 Pearl Street
Hartford, Connecticut 06103
Partnervest Advisory Services, LLC
1216 State Street, 3rd Floor
Santa Barbara, California 93101
Pring Turner Capital Group
1600 South Main Street, Suite 375
Walnut Creek, California 94596
Commerce Asset Management, LLC
6075 Poplar Avenue, Suite 700
Memphis, Tennessee 38119
The Elements Financial Group, LLC
19200 Von Karman Avenue, Suite 800
Irvine, California 92612
AthenaInvest, Inc.
5340 South Quebec Street, Suite 365-N
Greenwood Village, Colorado 80111
Treesdale Partners, LLC
1325 Avenue of the Americas, Suite 2302
New York, New York 10019
Sage Advisory Services, Ltd. Co.
5900 Southwest Parkway, Building I
Austin, Texas 78735
Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, Maine 04101
Custodian/Fund Administrator/Transfer Agent
The Bank of New York Mellon
101 Barclay Street
New York, New York 10286
Legal Counsel
Bingham McCutchen LLP
2020 K Street, N.W.
Washington, D.C. 20006
Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
1818 Market Street
Philadelphia, Pennsylvania 19103
This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Fund’s risks, objectives, fees and expenses, experience of management and other information.
Item 2. Code of Ethics.
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees has one audit committee financial expert serving on its audit committee, an “independent” Trustee, Elizabeth Piper/Bach. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services.
Audit Fees
(a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $299,400 for 2014 and $236,300 for 2013. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 for 2014 and $0 for 2013. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $67,200 for 2014 and $45,900 for 2013. |
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2014 and $0 for 2013. |
(e) | (1) | Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
Per Rule 2-01(c)(7)(A), the Audit Committee pre-approves all of the Audit, Audit-Related, Tax and Other Fees of the Registrant.
(e) | (2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) N/A |
(c) 100% |
(d) N/A |
(f) | No response required. |
(g) | The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2014 and $0 for 2013. |
(h) | Not applicable. |
Item 5. Audit Committee of Listed registrants.
(a) | The Fund has a designated Audit Committee in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and the member of such committee is Elizabeth Piper/Bach and William G. McVay. |
(b) | Not applicable. |
Item 6. 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) | Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. |
(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. |
(12.other) | Not applicable. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant | AdvisorShares Trust |
By (Signature and Title)* | /s/ Noah Hamman |
Noah Hamman, Chief Executive Officer | |
(principal executive officer) |
Date | 08/27/14 |
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 | 08/27/14 |
By (Signature and Title)* | /s/ Dan Ahrens |
Dan Ahrens, Treasurer | |
(principal financial officer) |
Date | 08/27/14 |
* Print the name and title of each signing officer under his or her signature.